Document:

exv4w12

 

Exhibit 4.12

 

$1,334,590,863.33

TRANCHE A TERM LOAN AGREEMENT

among

FEDERAL-MOGUL CORPORATION,

as Borrower,

The Several Lenders from Time to Time Parties Hereto,

and

JPMORGAN CHASE BANK, N.A.

as Administrative Agent

Dated as of December 27, 2007

 

 

 

Table of Contents

									
	 	 	 	 	 	 	 	 	Page
	SECTION 1. DEFINITIONS	 	1
	 

	 	 	1.1	 	 	Defined Terms	 	1
	 

	 	 	1.2	 	 	Other Definitional Provisions	 	29
	 
	 	 			 		 	
	SECTION 2. AMOUNT AND TERMS OF LOANS	 	30
	 

	 	 	2.1	 	 	Loans	 	30
	 

	 	 	2.2	 	 	Repayment of Loans	 	30
	 

	 	 	2.3	 	 	Fees, etc.	 	31
	 

	 	 	2.4	 	 	Optional Prepayments	 	31
	 

	 	 	2.5	 	 	Mandatory Prepayments	 	31
	 

	 	 	2.6	 	 	Conversion and Continuation Options	 	33
	 

	 	 	2.7	 	 	Limitations on Eurodollar Tranches	 	34
	 

	 	 	2.8	 	 	Interest Rates and Payment Dates	 	34
	 

	 	 	2.9	 	 	Computation of Interest and Fees	 	34
	 

	 	 	2.10	 	 	Inability to Determine Interest Rate	 	35
	 

	 	 	2.11	 	 	Pro Rata Treatment and Payments	 	35
	 

	 	 	2.12	 	 	Requirements of Law	 	36
	 

	 	 	2.13	 	 	Taxes	 	37
	 

	 	 	2.14	 	 	Indemnity	 	39
	 
	 	 			 		 	
	SECTION 3. REPRESENTATIONS AND WARRANTIES	 	40
	 

	 	 	3.1	 	 	Financial Condition	 	40
	 

	 	 	3.2	 	 	No Change	 	41
	 

	 	 	3.3	 	 	Existence; Compliance With Law	 	41
	 

	 	 	3.4	 	 	Power; Authorization; Enforceable Obligations	 	41
	 

	 	 	3.5	 	 	No Legal Bar	 	42
	 

	 	 	3.6	 	 	Litigation	 	42
	 

	 	 	3.7	 	 	No Default	 	42
	 

	 	 	3.8	 	 	Ownership of Property; Liens	 	42
	 

	 	 	3.9	 	 	Intellectual Property	 	42
	 

	 	 	3.10	 	 	Taxes	 	42
	 

	 	 	3.11	 	 	Investment Company Act; Other Regulations	 	42
	 

	 	 	3.12	 	 	Subsidiaries	 	43
	 

	 	 	3.13	 	 	Accuracy of Information, etc.	 	43
	 

	 	 	3.14	 	 	Security Documents	 	43
	 

	 	 	3.15	 	 	Regulation H	 	44
	 

	 	 	3.16	 	 	Environmental Matters	 	44
	 

	 	 	3.17	 	 	Certain Documents	 	45
	 
	 	 			 		 	
	SECTION 4. CONDITIONS PRECEDENT	 	45
	 

	 	 	4.1	 	 	Conditions to Closing Date	 	45

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	SECTION 5. AFFIRMATIVE COVENANTS	 	50
	 

	 	 	5.1	 	 	Financial Statements	 	50
	 

	 	 	5.2	 	 	Certificates; Other Information	 	51
	 

	 	 	5.3	 	 	Payment of Obligations	 	52
	 

	 	 	5.4	 	 	Maintenance of Existence; Compliance	 	53
	 

	 	 	5.5	 	 	Maintenance of Property; Insurance	 	53
	 

	 	 	5.6	 	 	Inspection of Property; Books and Records; Discussions	 	53
	 

	 	 	5.7	 	 	Notices	 	53
	 

	 	 	5.8	 	 	Environmental Laws	 	54
	 

	 	 	5.9	 	 	Additional Collateral, Additional Loan Parties, etc.	 	55
	 

	 	 	5.10	 	 	Post-Closing Obligations	 	57
	 
	 	 	 	 	 		 	
	SECTION 6. NEGATIVE COVENANTS	 	57
	 

	 	 	6.1	 	 	Financial Condition Covenants	 	57
	 

	 	 	6.2	 	 	Indebtedness	 	58
	 

	 	 	6.3	 	 	Liens	 	61
	 

	 	 	6.4	 	 	Fundamental Changes	 	63
	 

	 	 	6.5	 	 	Disposition of Property	 	64
	 

	 	 	6.6	 	 	Restricted Payments	 	65
	 

	 	 	6.7	 	 	Capital Expenditures	 	66
	 

	 	 	6.8	 	 	Investments	 	66
	 

	 	 	6.9	 	 	Optional Payments and Modifications of Certain Debt Instruments	 	69
	 

	 	 	6.10	 	 	Transactions with Affiliates	 	69
	 

	 	 	6.11	 	 	Sales And Leasebacks	 	70
	 

	 	 	6.12	 	 	Swap Agreements	 	70
	 

	 	 	6.13	 	 	Changes in Fiscal Periods	 	70
	 

	 	 	6.14	 	 	Negative Pledge Clauses	 	70
	 

	 	 	6.15	 	 	Clauses Restricting Subsidiary Distributions	 	70
	 

	 	 	6.16	 	 	Lines of Business	 	71
	 

	 	 	6.17	 	 	[Reserved]	 	71
	 

	 	 	6.18	 	 	Positive EBITDA Variance	 	71
	 
	 	 	 	 	 		 	
	SECTION 7. EVENTS OF DEFAULT	 	71
	 
	 	 	 	 	 		 	
	SECTION 8. THE ADMINISTRATIVE AGENT	 	74
	 

	 	 	8.1	 	 	Appointment	 	74
	 

	 	 	8.2	 	 	Delegation of Duties	 	75
	 

	 	 	8.3	 	 	Exculpatory Provisions	 	75
	 

	 	 	8.4	 	 	Reliance by Administrative Agent	 	75
	 

	 	 	8.5	 	 	Notice of Default	 	75
	 

	 	 	8.6	 	 	Non-Reliance on Administrative Agent and Other Lenders	 	76
	 

	 	 	8.7	 	 	Indemnification	 	76
	 

	 	 	8.8	 	 	Administrative Agent in Its Individual Capacity	 	77
	 

	 	 	8.9	 	 	Successor Administrative Agent	 	77
	 
	 	 	 	 	 		 	
	SECTION 9. MISCELLANEOUS	 	77
	 

	 	 	9.1	 	 	Amendments and Waivers	 	77

ii

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	 

	 	 	9.2	 	 	Notices	 	78
	 

	 	 	9.3	 	 	No Waiver; Cumulative Remedies	 	79
	 

	 	 	9.4	 	 	Survival of Representations and Warranties	 	79
	 

	 	 	9.5	 	 	Payment of Expenses and Taxes	 	79
	 

	 	 	9.6	 	 	Successors and Assigns; Participations and Assignments	 	80
	 

	 	 	9.7	 	 	Adjustments; Set off	 	83
	 

	 	 	9.8	 	 	Counterparts	 	84
	 

	 	 	9.9	 	 	Severability	 	84
	 

	 	 	9.10	 	 	Integration	 	84
	 

	 	 	9.11	 	 	GOVERNING LAW	 	84
	 

	 	 	9.12	 	 	Submission To Jurisdiction; Waivers	 	84
	 

	 	 	9.13	 	 	Acknowledgements	 	85
	 

	 	 	9.14	 	 	No Requirement of Lender Signatures	 	85
	 

	 	 	9.15	 	 	Releases of Guarantees and Liens	 	85
	 

	 	 	9.16	 	 	Confidentiality	 	86
	 

	 	 	9.17	 	 	WAIVERS OF JURY TRIAL	 	86

iii

 

	 	 	 
	SCHEDULES:

	Schedule 1.1A

	 	Loans
	Schedule 1.1B

	 	Foreign Pledge Agreements
	Schedule 1.1C

	 	Intercompany Loans Owed to U.K. Subsidiaries
	Schedule 1.1D

	 	Joint Ventures
	Schedule 1.1E

	 	Mortgaged Property
	Schedule 1.1F

	 	Certain Elements of the Collateral Structure
	Schedule 1.1G

	 	U.K. Subsidiaries Subject to Dissolution
	Schedule 1.1H

	 	Tax Restructuring
	Schedule 1.1I

	 	Non-Guarantor Domestic Subsidiaries
	Schedule 3. 4

	 	Consents, Authorizations, Filings and Notices
	Schedule 3.6

	 	Litigation
	Schedule 3.12

	 	Subsidiaries
	Schedule 3.14(a)

	 	Perfection Actions
	Schedule 3.14(b)

	 	Mortgage Filing Jurisdictions
	Schedule 3.16

	 	Environmental Matters
	Schedule 4.1

	 	Inventory Locations
	Schedule 5.10

	 	Restructuring Foreign Subsidiaries
	Schedule 6.2(f)

	 	Existing Indebtedness
	Schedule 6.3(f)

	 	Existing Liens
	Schedule 6.8(l)

	 	Investments

	 	 	 
	EXHIBITS:

	Exhibit A

	 	Form of Collateral Agreement
	Exhibit B

	 	Form of Domestic Subsidiary Guarantee
	Exhibit C

	 	Form of Collateral Trust Agreement
	Exhibit D

	 	Form of Compliance Certificate
	Exhibit E

	 	Form of Intercreditor Agreement
	Exhibit F

	 	Form of Mortgage
	Exhibit G

	 	Form of Assignment and Assumption
	Exhibit H

	 	Form of Legal Opinion of Counsel to the Parties
	Exhibit I

	 	Form of Exemption Certificate

iv

 

          TRANCHE A TERM LOAN AGREEMENT, dated as of December 27, 2007, among Federal-Mogul Corporation,
a Delaware corporation (the “Borrower”), the several banks and other financial institutions
or entities from time to time parties to this Agreement (the “Lenders”), and JPMORGAN CHASE
BANK, N.A., as administrative agent.

Introductory Statement

          On October 1, 2001 (the “Petition Date”), the Borrower and certain of its domestic
Subsidiaries (collectively, the “U.S. Debtors”) filed voluntary petitions under Chapter 11
of Title 11 of the United States Code (the “Bankruptcy Code”) with the United States
Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) and continued in the
possession of their assets and in the management of their businesses pursuant to Sections 1107 and
1108 of the Bankruptcy Code.

          On November 21, 2006, the U.S. Debtors, together with certain subsidiaries of the Borrower
organized under the laws of the United Kingdom (collectively, the “Debtors”), filed the
Reorganization Plan; and

          On November 8, 2007, the Bankruptcy Court entered the Confirmation Order.

          On November 14, 2007, the District Court affirmed the Confirmation Order.

          In connection with the confirmation and implementation of the Reorganization Plan, and in
partial satisfaction of the Bank Claims and Surety Claims (as each is defined in the Reorganization
Plan), the holders of the Bank Claims and Surety Claims shall automatically become parties to this
Agreement on the Effective Date.

          Accordingly, the parties hereto hereby agree as follows:

SECTION 1. DEFINITIONS

          1.1 Defined Terms. As used in this Agreement, the terms listed in this Section 1.1
shall have the respective meanings set forth in this Section 1.1.

          “ABR”: for any day, a rate per annum (rounded upwards, if necessary, to the next 1/16
of 1%) equal to the greater of (a) the Prime Rate in effect on such day and (b) the Federal Funds
Effective Rate in effect on such day plus 1/2 of 1%. For purposes hereof: “Prime Rate”:
the rate of interest per annum publicly announced from time to time by JPMCB as its prime rate in
effect at its principal office in New York City (the Prime Rate not being intended to be the lowest
rate of interest charged by JPMCB in connection with extensions of credit to debtors). Any change
in the ABR due to a change in the Prime Rate or the Federal Funds Effective Rate shall be effective
as of the opening of business on the effective day of such change in the Prime Rate or the Federal
Funds Effective Rate, respectively.

          “ABR Loans”: Loans the rate of interest applicable to which is based upon the ABR.

 

 

          “Acquisition”: any acquisition or series of related acquisitions (including without
limitation, Investments) by any Group Member of (a) more than 50% of the voting stock of any
Person, (b) all or substantially all of the Capital Stock, or substantially all of the assets, of
any Person, or (c) all or substantially all of the assets constituting a division or business line
of any Person.

          “Additional Liquidity Facility”: a credit or loan facility or facilities provided to
one or more other Group Members, and any refinancing, refunding, renewal or extension thereof in
accordance with Section 6.2(v), provided that such facility or facilities (a) (i) shall be provided
on terms which are not unreasonable and reflect market conditions in the banking or capital
markets, as applicable, prevailing at the time of incurrence of such facility or facilities for
comparable companies in the same industry as the Borrower and its Subsidiaries with long-term debt
ratings by S&P and Moody’s equivalent to the long-term debt ratings of the Borrower, (ii) shall in
no event require any repayments or prepayments thereof at any time prior to the Maturity Date and
(iii) if they are secured, any Liens securing them shall be subject to Lien subordination
provisions no less favorable to the Lenders than the terms of the subordination of the “Third
Priority Liens” referred to in the Intercreditor Agreement, and (b) shall not be provided by an
Affiliate of any Group Member or of any Significant Shareholder unless such facility is or
facilities are (x) provided upon fair and reasonable terms no less favorable to the relevant Group
Member than it would obtain in a comparable arm’s length transaction with a Person that is not an
Affiliate of any Group Member or of any Significant Shareholder and (y) not available after a good
faith effort by the Group Members to obtain such facility or facilities from a financial
institution that is not an Affiliate of any Group Member or of any Significant Shareholder.

          “Additional Liquidity Facility Agreement”: the credit, loan or other agreement
entered into by one or more Group Members governing any Additional Liquidity Facility, together
with all instruments and other agreements entered into by any Group Member in connection therewith,
as the same may be amended, supplemented or otherwise modified from time to time in accordance with
Section 6.9.

          “Adjusted Excess Cash Flow”: as defined in the Intercreditor Agreement.

          “Adjusted Positive EBITDA Variance”: as defined in the Intercreditor Agreement.

          “Administrative Agent”: JPMCB, as the administrative agent for the Lenders under this
Agreement and the other Loan Documents, together with any of its successors.

          “Affiliate”: as to any Person, any other Person that, directly or indirectly, is in
control of, is controlled by, or is under common control with, such Person. For purposes of this
definition, “control” of a Person means the power, directly or indirectly, to direct or cause the
direction of the management and policies of such Person, whether by contract or otherwise.

          “Agreement”: this Tranche A Term Loan Agreement, as the same may from time to time be
amended, restated, modified or supplemented.

          “Anticipated Japanese Consolidation”: with respect to three of the Japanese
manufacturing, technical and distribution facilities of the Borrower and its Subsidiaries, that are

2

 

related primarily to the Borrower’s and its Subsidiaries’ System Protection Group and
Aftermarket operations, the anticipated consolidation of such facilities into one facility that
will be located in Japan.

          “Applicable Amount”: (i) with respect to Adjusted Excess Cash Flow for any fiscal
year, the applicable amount thereof required to be applied to the Loans hereunder determined
pursuant to Section 4.4(a)(i) of the Intercreditor Agreement and (ii) with respect to Adjusted
Positive EBITDA Variance for any fiscal year, the applicable amount thereof required to be applied
to the Loans hereunder determined pursuant to Section 4.4(a)(ii) of the Intercreditor Agreement.

          “Applicable Margin”: for each Type of Loan, the rate per annum set forth under the
relevant column heading below for the periods set forth below:

	 	 	 	 	 	 	 	 	 
	Period	 	ABR Loans	 	Eurodollar Loans
	Closing Date through September 30, 2009
	 	 	2.0	%	 	 	3.0	%
	December 31, 2009 through September 30,
2010
	 	 	2.25	%	 	 	3.25	%
	December 31, 2010 and thereafter
	 	 	4.0	%	 	 	5.0	%

          “Approved Fund”: as defined in Section 9.6(b).

          “Asset Sale”: any Disposition of property or series of related Dispositions of
property excluding (i) any such Disposition permitted by any clause of Section 6.5 other than
clause (g) and (ii) any other Disposition or series of related Dispositions so long as the Net Cash
Proceeds to all Group Members therefrom (valued at the initial principal amount thereof in the case
of non-cash proceeds consisting of notes or other debt securities and valued at fair market value
in the case of other non-cash proceeds) do not exceed (x) $10,000,000 for any single Disposition or
series of related Dispositions and (y) $50,000,000 in any fiscal year for all Dispositions and
series of related Dispositions excluded pursuant to subclause (x) of this clause (ii).

          “Assignee” as defined in Section 9.6(b).

          “Assignment and Assumption”: an Assignment and Assumption, substantially in the form
of Exhibit G.

          “Bankruptcy Code”: as defined in the introductory statement hereto.

          “Bankruptcy Court”: as defined in the introductory statement hereto.

          “Benefitted Lender”: as defined in Section 9.7(a).

          “Board”: the Board of Governors of the Federal Reserve System of the United States
(or any successor).

          “Board-Approved Investment”: an Investment made pursuant to Section 6.8(t).

3

 

          “Board Majority”: in respect of any action of the board of directors of the Borrower,
a majority of the directors on the board of directors of the Borrower constituting a quorum,
present and voting with respect to such action, where a quorum is no less than a majority of the
total number of directors constituting the board of directors of the Borrower as such total number
is designated by the By-Laws and Certificate of Incorporation of the Borrower.

          “Borrower”: as defined in the preamble hereto.

          “Business Day”: a day other than a Saturday, Sunday or other day on which commercial
banks in New York City are authorized or required by law to close, provided that with respect to
notices and determinations in connection with, and payments of principal and interest on,
Eurodollar Loans, such day is also a day for trading by and between banks in Dollar deposits in the
interbank eurodollar market.

          “Capital Expenditures”: for any period, with respect to any Person, the aggregate of
all expenditures by such Person and its Subsidiaries for the acquisition or leasing (pursuant to a
capital lease) of fixed or capital assets or additions to equipment (including replacements,
capitalized repairs and improvements during such period) that should be capitalized under GAAP on a
consolidated balance sheet of such Person and its Subsidiaries; provided that any Permitted
Acquisitions shall in no event constitute Capital Expenditures.

          “Capital Lease Obligations”: as to any Person, the obligations of such Person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP and, for the purposes
of this Agreement, the amount of such obligations at any time shall be the capitalized amount
thereof at such time determined in accordance with GAAP.

          “Capital Stock”: any and all shares, interests, participations or other equivalents
(however designated) of capital stock of a corporation, any and all equivalent ownership interests
in a Person (other than a corporation) and any and all warrants, rights or options to purchase any
of the foregoing.

          “Cash Equivalents”: (a) marketable direct obligations issued by, or unconditionally
guaranteed by, the United States Government or issued by any agency thereof and backed by the full
faith and credit of the United States, in each case maturing within one year from the date of
acquisition; (b) certificates of deposit, time deposits, eurodollar time deposits or overnight bank
deposits having maturities of one year or less from the date of acquisition issued by any Lender or
by any commercial bank organized under the laws of the United States or any state thereof having
combined capital and surplus of not less than $500,000,000; (c) commercial paper of an issuer rated
at least A-1 by S&P or P-1 by Moody’s, or carrying an equivalent rating by a nationally recognized
rating agency, and maturing within one year from the date of acquisition; (d) repurchase
obligations of any Lender or of any commercial bank satisfying the requirements of clause (b) of
this definition, having a term of not more than 30 days, with respect to securities issued or fully
guaranteed or insured by the United States government; (e) securities with maturities of one year
or less from the date of acquisition

4

 

issued or fully guaranteed by any state, commonwealth or territory of the United States, by
any political subdivision or taxing authority of any such state, commonwealth or territory or by
any foreign government, the securities of which state, commonwealth, territory, political
subdivision, taxing authority or foreign government (as the case may be) are rated at least A by
S&P or A by Moody’s; (f) securities with maturities of one year or less from the date of
acquisition backed by standby letters of credit issued by any Lender or any commercial bank
satisfying the requirements of clause (b) of this definition; (g) money market mutual or similar
funds that invest exclusively in assets satisfying the requirements of clauses (a) through (f) of
this definition; (h) money market funds that (i) comply with the criteria set forth in SEC Rule
2a-7 under the Investment Company Act of 1940, as amended, (ii) are rated AAA by S&P and Aaa by
Moody’s and (iii) have portfolio assets of at least $5,000,000,000; (i) debt securities of an
issuer rated at least A-1 by S&P or P-1 by Moody’s, or carrying an equivalent rating by a
nationally recognized rating agency, and (j) solely with respect to any Foreign Subsidiary, in
addition to the investments described in clauses (a) through (i), any investment of the type
described in clause (a) issued or unconditionally guaranteed by any sovereign nation in which such
Foreign Subsidiary conducts any operations, any investment of the type and maturity described in
clause (b) issued by any commercial bank organized under the laws of any country in which such
Foreign Subsidiary conducts any operations, any investment of the type and maturity described in
clause (c) or clause (e) that has ratings issued by any internationally recognized rating agency
equivalent to those set forth in such clause and any investment of the type described in clause (g)
that satisfies the requirements of any of the other investments described in this clause (j).

          “Change of Control” shall mean:

          (a) at any time any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) other than Permitted Holders
shall become the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange
Act), directly or indirectly, of more than 50% of the aggregate outstanding Class A Common Stock
and Class B Common Stock; or

          (b) at any time during which Thornwood holds any Class A Common Stock, (i) the aggregate
amount of Class A Common Stock held by Thornwood shall be less than 66 2/3% of the aggregate amount
of Class A Common Stock held by Thornwood on the Effective Date and (ii) a person or group (other
than the Permitted Holders) shall be the beneficial owner of at least 35% of the aggregate
outstanding Class A Common Stock and Class B Common Stock; or

          (c) at any time (i) the majority of the seats on the board of directors of the Borrower is
occupied by Persons who were neither (x) nominated or appointed by the board of directors of the
Borrower as of the Closing Date nor (y) appointed or nominated by directors described in clause (x)
and (ii) a person or group (other than the Permitted Holders) shall be the beneficial owner of at
least 35% of the aggregate outstanding Class A Common Stock and Class B Common Stock; or

          (d) a Specified Change of Control.

5

 

          For the avoidance of doubt, in no event shall any direct or indirect transfer of any Class A
Common Stock or any other Capital Stock of the Borrower, by Thornwood or any of its Affiliates to
any Affiliate of Thornwood or to Thornwood, give rise to or be deemed a “Change of Control”
hereunder.

          “Class A Common Stock”: the Class A Common Stock, par value $0.01 per share of the
Borrower.

          “Class B Common Stock”: the Class B Common Stock, par value $0.01 per share of the
Borrower.

          “Closing Date”: the date on which the conditions precedent set forth in Section 4.1
shall have been satisfied or waived, which date is December 27, 2007.

          “Code”: the Internal Revenue Code of 1986, as amended from time to time.

          “Collateral”: all property of the Loan Parties, now owned or hereafter acquired, upon
which a Lien is purported to be created by any Security Document.

          “Collateral Agreement”: the Collateral Agreement to be executed and delivered by the
Borrower and each Guarantor, substantially in the form of Exhibit A.

          “Collateral Trust Agreement”: a Collateral Trust Agreement to be executed and
delivered by the Borrower, each Guarantor and the Collateral Trustee, substantially in the form of
Exhibit C.

          “Collateral Trustee”: Citibank, N.A., in its capacity as collateral trustee under the
Collateral Trust Agreement, together with any of its successors.

          “Commonly Controlled Entity”: an entity, whether or not incorporated, that is under
common control with the Borrower within the meaning of Section 4001 of ERISA or is part of a group
that includes the Borrower and that is treated as a single employer under Section 414 of the Code.

          “Company Voluntary Arrangements”: collectively, (i) the proposals dated June 23, 2006
for company voluntary arrangements in respect of T&N Limited, a company incorporated in England and
Wales and a Subsidiary of the Borrower, and forty-eight other U.K. Subsidiaries which are Group
Members, and (ii) the proposals dated June 23, 2006 for company voluntary arrangements in respect
of Federal-Mogul Global Growth Limited, a company organized under the laws of England, and F-M UK
Holding Limited, a company organized under the laws of England, which proposals in each case became
effective in accordance with the laws of England and Wales on October 11, 2006.

          “Compliance Certificate”: a certificate duly executed by a Responsible Officer
substantially in the form of Exhibit D.

6

 

          “Confirmation Order”: that certain order confirming the Reorganization Plan pursuant
to applicable sections of the Bankruptcy Code entered by the Bankruptcy Court on November 8, 2007
and affirmed by the District Court on November 14, 2007.

          “Consolidated Amortization”: for any period, the aggregate amount of scheduled
payments required to be made during such period on account of principal of Indebtedness of Group
Members (including without limitation, scheduled principal payments in respect of the Indebtedness
under the Exit Facility and the Loans and payments of revolving loans accompanying scheduled
reductions of the corresponding commitments, but excluding (x) any scheduled principal payments in
respect of Specified Indebtedness and (y) any final scheduled principal payment in respect of
Indebtedness (other than Specified Indebtedness); provided, however, for purposes of calculating
Consolidated Amortization for any period of four fiscal quarters which includes the final scheduled
principal payment of any such Indebtedness, Consolidated Amortization shall be deemed to include an
amount equal to the scheduled principal payment immediately preceding such date of final scheduled
principal payment in lieu of the final scheduled principal payment).

          “Consolidated Debt Service Coverage Ratio”: on the last day of any fiscal quarter of
the Borrower, the ratio of (a) Consolidated EBITDA for the period of four fiscal quarters ending on
such day, less the aggregate amount of Capital Expenditures incurred by the Group Members during
such period in accordance with GAAP (excluding the principal amount of Indebtedness incurred in
connection with such Capital Expenditures and any such Capital Expenditures financed with the
proceeds of any Reinvestment Deferred Amount or Positive EBITDA Variance) to (b) the sum of (i)
Consolidated Interest Expense for the period of four fiscal quarters ending on such day, (ii)
Consolidated Amortization for the immediately succeeding four fiscal quarters of the Borrower and
(iii) the aggregate amount of dividends paid on any class of the Borrower’s Capital Stock during
the period of four fiscal quarters ending on such day.

          “Consolidated EBITDA”: for any period, Consolidated Net Income for such period plus,
without duplication and to the extent reflected as a charge in the statement of such Consolidated
Net Income for such period, the sum of (a) depreciation expense, (b) amortization expense, (c)
expenses or losses resulting from LIFO adjustments for inventory valuation in accordance with GAAP,
(d) income tax expense, (e) interest expense, (f) extraordinary losses, (g) any non-recurring
charge or restructuring charge which in accordance with GAAP is excluded from the calculation of
operating income, provided that the amounts referred to in this clause (g) shall not
exceed, for any such charges which could reasonably be expected to become a cash expenditure at any
time, (i) $60,000,000 in cash costs for 2007, (ii) $50,000,000 in cash costs for 2008 and (iii)
$40,000,000 in cash costs for any fiscal year of the Borrower thereafter, (h) the cumulative effect
of any changes in accounting principles, as shown on the Borrower’s consolidated statement of
income for such period, (i) amounts payable under any key employee retention program implemented
during the Chapter 11 cases of the U.S. Debtors, (j) any pension contribution expense in respect of
defined benefit plans, (k) any non-recurring Chapter 11 expenses and (l) any other non-cash charges
not included in operating income or in clauses (f) or (g) and minus, to the extent included in the
statement of such Consolidated Net Income for such period, the sum of (i) interest income, (ii)
extraordinary gains, (iii) any income tax credits (to the extent not netted from income tax
expense), (iv) any income resulting from LIFO adjustments or

7

 

inventory valuation in accordance with GAAP, (v) any pension income and gains in respect of
defined benefit plans, (vi) any other non-cash income or gains, and (vii) the income, if any,
attributable to Minority Interests, all as determined on a consolidated basis. In addition,
“Consolidated EBITDA” for any period including the first four full fiscal quarters following the
Closing Date shall be subject to any adjustment with respect to such quarters required to be made
by the Borrower’s independent certified public accountants as a result of “fresh start” accounting
and set forth in reasonable detail in a certificate of a Responsible Officer delivered to the
Administrative Agent, and, with respect to the four fiscal quarter period prior to the Closing Date
Consolidated EBITDA shall be so adjusted on a pro forma basis as though the Reorganization Plan had
become effective on the first day of such period.

          “Consolidated Interest Expense”: for any period, the consolidated cash interest
expense of the Group Members for such period (but excluding any such interest expense in respect of
Specified Indebtedness and any upfront fees paid with respect to the debt financings evidenced by
the Exit Facility Agreement, this Agreement as in effect on the Closing Date and the Senior
Subordinated Notes Indenture as in effect on the Closing Date), determined on a consolidated basis
in accordance with GAAP, less interest income.

          “Consolidated Net Income”: for any period, the consolidated net income (or loss) of
the Group Members, determined on a consolidated basis in accordance with GAAP; provided that there
shall be excluded the income (or loss) of any Subsidiary accrued prior to the date it becomes a
Subsidiary or is merged into or consolidated with any Group Member.

          “Consolidated Senior Debt”: all Consolidated Total Debt other than the Senior
Subordinated Notes and Permitted Subordinated Indebtedness.

          “Consolidated Senior Leverage Ratio”: as of the last day of any period of four
consecutive fiscal quarters, the ratio of (a) Consolidated Senior Debt on such day, less the
aggregate amount of unrestricted cash and Cash Equivalents of the Group Members on such day in
excess of Minimum Cash on such day to (b) Consolidated EBITDA for such period.

          “Consolidated Total Debt”: at any date, the sum of (a) the aggregate principal amount
of all Indebtedness of the Group Members at such date, determined on a consolidated basis,
plus (b) the aggregate amount of all obligations incurred under all Securitization
Transactions by the Borrower or any Domestic Subsidiary that would be characterized as principal
determined on a consolidated basis in accordance with GAAP if structured as a secured lending
transaction rather than a purchase, minus (c) Specified Indebtedness.

          “Contractual Obligation”: as to any Person, any provision of any security issued by
such Person or of any agreement, instrument or other undertaking to which such Person is a party or
by which it or any of its property is bound; provided that such security, agreement,
instrument or undertaking requires aggregate payments by such Person of at least $75,000,000
pursuant to the terms thereof.

          “Debtors”: as defined in the introductory statement hereto.

          “Default”: any of the events specified in Section 7, whether or not any requirement
for the giving of notice, the lapse of time, or both, has been satisfied.

8

 

          “DIP Facility”: the credit facilities provided to the Borrower and certain of its
Subsidiaries pursuant to the Credit and Guaranty Agreement, dated as of November 23, 2005, among
the Borrower, the Subsidiaries of the Borrower party thereto, the lenders from time to time party
thereto and Citicorp USA, Inc., as administrative agent for such lenders, as amended from time to
time, together with all instruments and other agreements entered into by any Group Member in
connection therewith.

          “Disclosure Statement”: the Disclosure Statement, in the form approved by the
Bankruptcy Court on June 4, 2004, and as supplemented by that certain Supplemental Disclosure
Statement Describing Fourth Amended Joint Plan of Reorganization dated February 7, 2007, describing
the Reorganization Plan and distributed to the Lenders and other parties in interest in connection
with voting on the Reorganization Plan.

          “Disinterested Director”: as to any Significant Shareholder, any member of the board
of directors of a Group Member who (a) is “disinterested” under applicable state corporate law in a
transaction with any Affiliate of such Significant Shareholder which is subject of board approval,
and (b) would be independent and eligible to serve on an audit committee (for purposes of Sections
303A.02 and 303A.06 of the New York Stock Exchange Listed Company Manual, as in effect on the date
hereof) of such Significant Shareholder or of any company in which such Significant Shareholder
beneficially owns 15% or more of the voting power to the extent that would be required if such
Significant Shareholder or any such company were a public reporting company listed on the New York
Stock Exchange.

          “Disposition”: with respect to any property, any sale, lease, sale and leaseback,
assignment, conveyance, transfer or other disposition thereof. The terms “Dispose” and
“Disposed of” shall have correlative meanings.

          “District Court”: the United States District Court for the District of Delaware or
the unit thereof having jurisdiction over the matter in question.

          “Dollars” and “$”: dollars in lawful currency of the United States.

          “Domestic Subsidiary”: any Subsidiary of the Borrower organized under the laws of any
jurisdiction within the United States.

          “Domestic Subsidiary Guarantee”: the Domestic Subsidiary Guarantee to be executed and
delivered by each Guarantor that is a Domestic Subsidiary (other than any Non-Guarantor Domestic
Subsidiary), substantially in the form of Exhibit B.

          “Effective Date”: December 27, 2007, being the date on which the Reorganization Plan
became effective as provided therein.

          “Environmental Laws”: any and all laws, rules, orders, regulations, statutes,
ordinances, guidelines, codes, decrees, requirements of any Governmental Authority or other
Requirements of Law (including without limitation, common law) regulating, relating to or imposing
liability or standards of conduct concerning protection of human health or the environment, or
employee safety, as has been, is now or may at any time hereafter be in effect.

9

 

          “Environmental Permits”: any and all permits, licenses, approvals, registrations,
notifications, exemptions and other authorizations required under any Environmental Law.

          “Equity Proceeds”: the Net Cash Proceeds of any issuance of Capital Stock by the
Borrower.

          “ERISA”: the Employee Retirement Income Security Act of 1974, as amended from time to
time.

          “Eurocurrency Reserve Requirements”: for any day as applied to a Eurodollar Loan, the
aggregate (without duplication) of the maximum rates (expressed as a decimal fraction) of reserve
requirements in effect on such day (including basic, supplemental, marginal and emergency reserves)
under any regulations of the Board or other Governmental Authority having jurisdiction with respect
thereto dealing with reserve requirements prescribed for eurocurrency funding (currently referred
to as “Eurocurrency Liabilities” in Regulation D of the Board) maintained by a member bank of the
Federal Reserve System.

          “Eurodollar Base Rate”: with respect to each day during each Interest Period
pertaining to a Eurodollar Loan, the rate per annum determined on the basis of the rate for
deposits in Dollars for a period equal to such Interest Period commencing on the first day of such
Interest Period appearing on Page 3750 of the Telerate screen as of 11:00 A.M., London time, two
Business Days prior to the beginning of such Interest Period. In the event that such rate does not
appear on Page 3750 of the Telerate screen (or otherwise on such screen), the “Eurodollar Base
Rate” shall be determined by reference to such other comparable publicly available service for
displaying eurodollar rates as may be selected by the Administrative Agent or, in the absence of
such availability, by reference to the rate at which the Administrative Agent is offered Dollar
deposits at or about 11:00 A.M., New York City time, two Business Days prior to the beginning of
such Interest Period in the interbank eurodollar market where its eurodollar and foreign currency
and exchange operations are then being conducted for delivery on the first day of such Interest
Period for the number of days comprised therein.

          “Eurodollar Loans”: Loans the rate of interest applicable to which is based upon the
Eurodollar Rate.

          “Eurodollar Rate”: with respect to each day during each Interest Period pertaining to
a Eurodollar Loan, a rate per annum determined for such day in accordance with the following
formula (rounded upward to the nearest 1/100th of 1%):

Eurodollar Base Rate

 

1.00 — Eurocurrency Reserve Requirements

          “Eurodollar Tranche”: the collective reference to Eurodollar Loans, the then current
Interest Periods with respect to all of which begin on the same date and end on the same later
date.

          “Event of Default”: any of the events specified in Section 7, provided that
any requirement for the giving of notice, the lapse of time, or both, has been satisfied.

10

 

          “Excluded Subsidiary”: (i) any Foreign Subsidiary and any Domestic Subsidiary which
is a Subsidiary of a Foreign Subsidiary in respect of which either (a) the pledge of more than 66%
of the Capital Stock of such Foreign Subsidiary (or, in the case of a Domestic Subsidiary which is
a Subsidiary of a Foreign Subsidiary, the pledge of any Capital Stock of such Domestic Subsidiary)
as Collateral or (b) the guaranteeing by such Subsidiary of, or the pledging of assets by such
Subsidiary to secure, the Obligations, would, in the good faith judgment of the Borrower, result in
adverse tax consequences to any Group Member or would be unlawful for such Subsidiary and (ii) FM
International, LLC, so long as 66% of its Capital Stock is pledged under the Security Documents and
such entity has no operations other than holding the Capital Stock of any Foreign Subsidiary.

          “Exit Facility”: the revolving credit and/or other facility provided to one or more
Group Members on the Effective Date pursuant to the Exit Facility Agreement, and any refinancing,
replacement, refunding, renewal or extension thereof in accordance with Section 6.2(o).

          “Exit Facility Agreement”: the Term Loan and Revolving Credit Agreement, dated as of
the date hereof, among the Borrower, the lenders party thereto, and Citicorp USA, Inc., as
administrative agent, together with all instruments and other agreements entered into by any Group
Member in connection therewith, as the same may be amended, supplemented or otherwise modified from
time to time in accordance with Section 6.9.

          “Factoring Arrangements”: any arrangements between an Excluded Subsidiary and a third
party (other than an Affiliate) under which the Receivables of such Excluded Subsidiary are
factored on a non-recourse basis.

          “Factoring Basket”: on any date, an amount equal to the greater of (i) $400,000,000
and (ii) $400,000,000 times the Factoring Growth Rate on such date.

          “Factoring Growth Rate”: on any date, the ratio of (i) the collective sales of the
Group Members outside of the United States for the period of twelve consecutive months most
recently ended prior to such date and for which such figure has been reported by the Borrower to
the Administrative Agent, expressed at the Borrower’s accounting rate as in effect on the last day
of such period (which accounting rate shall be determined by the Borrower in good faith consistent
with the manner in which such rate has been determined by the Borrower prior to the Closing Date)
to (ii) $3,000,000,000.

          “Fair Market Consideration”: with respect to any Acquisition, the aggregate fair
market value of all consideration paid or payable by the Group Members, including (x) the fair
market value of any Investments made in the subject Person or in such assets subject of such
Acquisition and (y) the incurrence by the Group Members of any Indebtedness associated therewith,
but excluding the fair market value of any Capital Stock of any Group Members included in any such
consideration.

          “Federal Funds Effective Rate”: for any day, the weighted average of the rates on
overnight federal funds transactions with members of the Federal Reserve System arranged by federal
funds brokers, as published on the next succeeding Business Day by the Federal Reserve

11

 

Bank of New York, or, if such rate is not so published for any day that is a Business Day, the
average of the quotations for the day of such transactions received by the Administrative Agent
from three federal funds brokers of recognized standing selected by it.

          “F-M Canada”: Federal-Mogul Canada Limited, a Canadian corporation.

          “Foreign Credit Facilities”: credit facilities to be made available to Excluded
Subsidiaries of the Borrower to fund their respective operations; provided that such credit
facilities are not secured by any assets of any Loan Party.

          “Foreign Pledge Agreements”: the collective reference to (a) the pledge agreements
described on Schedule 1.1B and (b) any other pledge agreement, in form and substance reasonably
satisfactory to the Administrative Agent, pursuant to which shares of Foreign Subsidiaries may be
pledged from time to time.

          “Foreign Subsidiary”: a Subsidiary which is incorporated or organized under the laws
of a jurisdiction outside of the United States.

          “Foreign Subsidiary Guarantees”: any guarantee, in form and substance reasonably
satisfactory to the Administrative Agent, by a Foreign Subsidiary of the Obligations that may be
executed and delivered to the Collateral Trustee, including without limitation pursuant to Sections
5.9(e).

          “GAAP”: generally accepted accounting principles in the United States as in effect
from time to time, except that for purposes of Section 6.1, GAAP shall be determined on the basis
of such principles in effect on the date hereof and consistent with those used in the preparation
of the most recent audited financial statements referred to in Section 3.1(b). In the event that
any “Accounting Change” (as defined below) shall occur and such change results in a material change
in the method of calculation of financial covenants, standards or terms in this Agreement, then the
Borrower and the Administrative Agent agree to enter into negotiations in order to amend such
provisions of this Agreement so as to reflect equitably such Accounting Changes with the desired
result that the criteria for evaluating the Borrower’s financial condition shall be the same after
such Accounting Changes as if such Accounting Changes had not been made. Until such time as such
an amendment shall have been executed and delivered by the Borrower, the Administrative Agent and
the Required Lenders, all financial covenants, standards and terms in this Agreement shall continue
to be calculated or construed as if such Accounting Changes had not occurred. “Accounting Changes”
refers to changes in accounting principles required by the promulgation of any rule, regulation,
pronouncement or opinion by the Financial Accounting Standards Board of the American Institute of
Certified Public Accountants or, if applicable, the SEC.

          “General Investment Basket”: at any date, an amount equal to (i) $250,000,000 minus
(ii) the aggregate amount of Investments made pursuant to Section 6.8(u) on or prior to such date
plus (iii) the aggregate amount of distributions of cash and Cash Equivalents with respect to any
Investment made pursuant to Section 6.8(u) that have been received on or prior to such date by the
Group Member that holds such Investment.

12

 

          “Governmental Authority”: any nation or government, any state or other political
subdivision thereof, any agency, authority, instrumentality, regulatory body, court, central bank
or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative
functions of or pertaining to government, any securities exchange and any self-regulatory
organization (including the National Association of Insurance Commissioners).

          “Group Members”: the collective reference to the Borrower and its Subsidiaries.

          “Guarantee Obligation”: as to any Person (the “guaranteeing person”), any
obligation, including a reimbursement, counterindemnity or similar obligation, of the guaranteeing
Person that guarantees or in effect guarantees, or which is given to induce the creation of a
separate obligation by another Person (including any bank under any letter of credit) that
guarantees or in effect guarantees, any Indebtedness, leases, dividends or other obligations (the
“primary obligations”) of any other third Person (the “primary obligor”) in any
manner, whether directly or indirectly, including any obligation of the guaranteeing person,
whether or not contingent, (a) to purchase any such primary obligation or any property constituting
direct or indirect security therefor, (b) to advance or supply funds (i) for the purchase or
payment of any such primary obligation or (ii) to maintain working capital or equity capital of the
primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (c) to
purchase property, securities or services primarily for the purpose of assuring the owner of any
such primary obligation of the ability of the primary obligor to make payment of such primary
obligation or (d) otherwise to assure or hold harmless the owner of any such primary obligation
against loss in respect thereof; provided, however, that the term Guarantee
Obligation shall not include endorsements of instruments for deposit or collection in the ordinary
course of business. The amount of any Guarantee Obligation of any guaranteeing person shall be
deemed to be the lower of (x) an amount equal to the stated or determinable amount of the primary
obligation in respect of which such Guarantee Obligation is made and (y) the maximum amount for
which such guaranteeing person may be liable pursuant to the terms of the instrument embodying such
Guarantee Obligation, unless such primary obligation and the maximum amount for which such
guaranteeing person may be liable are not stated or determinable, in which case the amount of such
Guarantee Obligation shall be such guaranteeing person’s maximum reasonably anticipated liability
in respect thereof as determined by the Borrower in good faith.

          “Guarantees”: the collective reference to the Foreign Subsidiary Guarantees and the
Domestic Subsidiary Guarantee.

          “Guarantor”: each Domestic Subsidiary (other than the Non-Guarantor Domestic
Subsidiaries) of the Borrower and each other Subsidiary of the Borrower that is party to a
Guarantee.

          “Indebtedness”: at any time and with respect to any Person, without duplication, (a)
all indebtedness of such Person for borrowed money, (b) all obligations of such Person for the
deferred purchase price of property or services (other than (x) current trade payables incurred in
the ordinary course of such Person’s business and (y) property, including inventory, and services
purchased, and expense accruals (other than trade payables) and deferred compensation items
arising, in each case, in the ordinary course of such Person’s business), (c) all obligations of
such Person evidenced by notes, bonds, debentures or other similar instruments, (d) all

13

 

indebtedness created or arising under any conditional sale or other title retention agreement
with respect to property acquired by such Person (even though the rights and remedies of the seller
or lender under such agreement in the event of default are limited to repossession or sale of such
property), (e) all Capital Lease Obligations of such Person, (f) all obligations of such Person,
contingent or otherwise, as an account party or applicant under or in respect of acceptances,
letters of credit, surety bonds or similar arrangements, (g) the liquidation value of all
redeemable preferred Capital Stock of such Person which is mandatorily redeemable prior to the
Maturity Date, (h) all Guarantee Obligations of such Person in respect of obligations of the kind
referred to in clauses (a) through (g) above or (j) below, (i) all obligations of the kind referred
to in clauses (a) through (h) above or (j) below secured by (or for which the holder of such
obligation has an existing right, contingent or otherwise, to be secured by) any Lien on property
(including accounts and contract rights) owned by such Person, whether or not such Person has
assumed or become liable for the payment of such obligation, and (j) all obligations of such Person
in respect of Swap Agreements. The Indebtedness of any Person (i) shall include the Indebtedness
of any other entity (including any partnership in which such Person is a general partner) to the
extent such Person is liable therefor as a result of such Person’s ownership interest in or other
relationship with such entity solely to the extent such Indebtedness is required to be reflected on
the balance sheet of such Person in accordance with GAAP and (ii) shall not include in any event
any Joint Venture Put Obligation. For avoidance of doubt, Factoring Arrangements shall not
constitute Indebtedness.

          “Insolvency”: with respect to any Multiemployer Plan, the condition that such Plan is
insolvent within the meaning of Section 4245 of ERISA.

          “Intellectual Property”: the collective reference to all rights, priorities and
privileges relating to intellectual property, whether arising under United States, multinational or
foreign laws or otherwise, including copyrights, copyright licenses, patents, patent licenses,
trademarks, trademark licenses, technology, know-how and processes, and all rights to sue at law or
in equity for any infringement or other impairment thereof, including the right to receive all
proceeds and damages therefrom.

          “Intercompany Basket”: at any date, an amount equal to (i) $500,000,000 minus (ii)
the aggregate outstanding principal amount on such date of Intercompany Loans made pursuant to
Section 6.8(h)(ii) minus (iii) the aggregate amount of Investments (other than Intercompany Loans)
made pursuant to Section 6.8(h)(ii) on or prior to such date minus (iv) the aggregate amount of
operating leases (measured on the basis of the fair market value of the assets subject thereto)
outstanding pursuant to Section 6.5(j)(iii) plus (v) the aggregate amount of distributions in cash
and Cash Equivalents with respect to any Investment (other than Intercompany Loans) made pursuant
to Section 6.8(h)(ii) that have been received on or prior to such date by the Group Member that
holds such Investment. Notwithstanding the foregoing, to the extent that an Intercompany Loan or
Investment is made in a Subsidiary that uses the proceeds of such Intercompany Loan or Investment,
substantially contemporaneously with the making of such Intercompany Loan or Investment, to make an
Investment in a Joint Venture pursuant to Section 6.8(j)(ii), such Intercompany Loan or Investment
shall not reduce the amount of the Intercompany Basket, but shall reduce the Joint Venture Basket
in the amount of such Intercompany Loan or Investment.

14

 

          “Intercompany Basket Sublimit”: at any date, an amount equal to (i) $350,000,000
minus (ii) the aggregate amount of Investments (other than Intercompany Loans) made pursuant to
Section 6.8(h)(ii) on or prior to such date plus (iii) the aggregate amount of distributions in
cash and Cash Equivalents with respect to any Investment (other than Intercompany Loans) made
pursuant to Section 6.8(h)(ii) that have been received on or prior to such date by the Group Member
that holds such Investment.

          “Intercompany Loan”: any Indebtedness for borrowed money owed by any Group Member to
any other Group Member.

          “Intercompany Loan Notes”: (i) that certain note dated June 11, 1999 and payable by
Federal-Mogul, S.A., a French company, to AE International Ltd. in the original principal amount of
142,404,240 French francs, (ii) that certain note dated August 31, 1998 and payable by
Federal-Mogul, S.A. to T&N International Ltd. in the original principal amount of 488,163,908
French francs, (iii) that certain note dated August 31, 1998 and payable by Federal-Mogul, S.A. to
AE International Ltd in the original principal amount of 904,841,256 French francs, (iv) that
certain note dated July 8, 1998 and payable by Federal-Mogul Holding Deutschland GmbH, a German
company, to AE International Ltd in the original principal amount of 126,979,412 Deutschmarks, (v)
that certain note dated July 8, 1998 and payable by Federal-Mogul Holding Deutschland GmbH to T&N
International Ltd in the original principal amount of 611,020,588 Deutschmarks, and (vi) that
certain note dated May 22, 2001 and payable by Federal Mogul S.p.A., an Italian company, to T&N
International Ltd in the original principal amount of €111,627,744.

          “Intercompany Loan Owed to U.K. Subsidiaries”: any Intercompany Loan of the Borrower
or any of its Subsidiaries other than the U.K. Subsidiaries owing to any U.K. Subsidiary and
outstanding on the Closing Date, as set forth on Schedule 1.1C.

          “Intercreditor Agreement”: the Intercreditor Agreement among the Exit Administrative
Agent referred to therein, the Administrative Agent, the PIK Trustee referred to therein, the
Collateral Trustee, the Borrower and each of the other Loan Parties party thereto, substantially in
the form of Exhibit E.

          “Interest Payment Date”: (a) as to any ABR Loan, the last day of each March, June,
September and December to occur while such Loan is outstanding and the Maturity Date, (b) as to any
Eurodollar Loan having an Interest Period of three months or less, the last day of such Interest
Period, (c) as to any Eurodollar Loan having an Interest Period longer than three months, each day
that is three months, or a whole multiple thereof, after the first day of such Interest Period and
the last day of such Interest Period and (d) as to any Loan, the date of any repayment or
prepayment made in respect thereof.

          “Interest Period”: as to any Eurodollar Loan, (a) initially, the period commencing on
the Closing Date or conversion date, as the case may be, with respect to such Eurodollar Loan and
ending one week or one, two, three or six months thereafter (provided that Interest Periods of one
week in duration may only be selected by the Borrower during the period commencing on the Closing
Date and ending two months thereafter), as set forth in Section 2.1 or as selected by the Borrower
in its notice of conversion, as the case may be, given with respect thereto; and (b)

15

 

thereafter, each period commencing on the last day of the next preceding Interest Period
applicable to such Eurodollar Loan and ending one week or one, two, three or six months thereafter
(provided that Interest Periods of one week in duration may only be selected by the Borrower during
the period commencing on the Closing Date and ending two months thereafter), as selected by the
Borrower by irrevocable notice to the Administrative Agent not later than 11:00 A.M., New York City
time, on the date that is three Business Days prior to the last day of the then current Interest
Period with respect thereto; provided that, all of the foregoing provisions relating to Interest
Periods are subject to the following:

          (i) if any Interest Period would otherwise end on a day that is not a Business Day, such
Interest Period shall be extended to the next succeeding Business Day unless the result of such
extension would be to carry such Interest Period into another calendar month in which event such
Interest Period shall end on the immediately preceding Business Day;

          (ii) the Borrower may not select an Interest Period that would extend beyond the date final
payment is due on the Loans;

          (iii) any Interest Period that begins on the last Business Day of a calendar month (or on a
day for which there is no numerically corresponding day in the calendar month at the end of such
Interest Period) shall end on the last Business Day of a calendar month; and

          (iv) the Borrower shall use reasonable efforts to select Interest Periods so as not to require
a payment or prepayment of any Eurodollar Loan during an Interest Period for such Loan.

          “Investments”: as defined in Section 6.8.

          “Joint Venture”: each Affiliate of the Borrower listed on Schedule 1.1D and any other
Person not a Subsidiary in which any Group Member obtains an ownership interest to the extent
permitted by Section 6.8(j).

          “Joint Venture Basket”: at any date, an amount equal to (i) $250,000,000 minus (ii)
the aggregate amount of Investments made pursuant to Section 6.8(j)(ii) on or prior to such date
minus (iii) the aggregate amount of operating leases (measured on the basis of the fair market
value of the assets subject thereto) outstanding pursuant to Section 6.5(j)(ii) on or prior to such
date plus (iv) the aggregate amount of distributions in cash and Cash Equivalents with respect to
any Investment made pursuant to Section 6.8(j)(ii) that have been received on or prior to such date
by the Group Member that holds such Investment.

          “Joint Venture Put Obligation”: any obligation of any Group Member (i) to purchase
any Capital Stock of any Person that is a Joint Venture on the Closing Date, which Capital Stock is
not owned by a Group Member on the Closing Date, so long as such obligation is in existence on the
Closing Date and has been disclosed by the Borrower to the Lenders prior to the Closing Date, (ii)
to purchase any Capital Stock of any Person that is a Joint Venture on the Closing Date, which
Capital Stock is not owned by a Group Member on the Closing Date and where such obligation to
purchase Capital Stock arises after the Closing Date, or (iii) to purchase any Capital Stock of any
Joint Venture formed after the Closing Date that is not owned by a Group Member on the date of
formation of such new Joint Venture, so long as the aggregate

16

 

amount of obligations described in the preceding clause (ii) or (iii) for any single such
Joint Venture shall not exceed $50,000,000 at the time of determination thereof (with the amount of
any non-cash obligations to be estimated by the Borrower in good faith).

          “JPMCB”: JPMorgan Chase Bank, N.A.

          “Lenders”: as defined in the preamble hereto.

          “Lien”: any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge or other security interest or any preference,
priority or other security agreement or preferential arrangement of any kind or nature whatsoever
(including any conditional sale or other title retention agreement and any capital lease having
substantially the same economic effect as any of the foregoing).

          “Loan”: any loan made by any Lender pursuant to this Agreement, including without
limitation, the loans deemed to be made under Section 2.1.

          “Loan Documents”: this Agreement, the Security Documents, the Collateral Trust
Agreement, the Guarantees, the Notes and any amendment, waiver, supplement or other modification to
any of the foregoing.

          “Loan Parties”: the Borrower and the Guarantors.

          “Material Adverse Effect”: a material adverse effect on (a) the business, property,
operations or financial condition of the Group Members taken as a whole or (b) the validity or
enforceability of this Agreement or any of the other Loan Documents or the rights or remedies of
the Administrative Agent or the Lenders hereunder or thereunder.

          “Material Environmental Loss”: (a) cash costs to the Group Members, in the aggregate,
for investigative and remedial costs, compliance costs, compensatory damages, natural resource
damages, punitive damages, fines, penalties, and (b) any other cash losses to the Group Members,
that in the aggregate either exceed $25,000,000 in any fiscal year of the Borrower, or would have a
Material Adverse Effect, arising out of any Environmental Law or any liabilities or obligations
with respect to any Materials of Environmental Concern.

          “Materials of Environmental Concern”: any gasoline or petroleum (including crude oil
or any fraction thereof) or petroleum products, polychlorinated biphenyls, urea-formaldehyde
insulation, asbestos, molds, pollutants, contaminants, radioactivity, any hazardous or toxic
substances or waste and any other substances that are regulated pursuant to or would reasonably be
expected to give rise to liability under any Environmental Law.

          “Maturity Date”: June 27, 2014, the date that is the 78 month anniversary of the
Closing Date.

          “Minimum Cash”: at any date, an amount equal to the lesser of (a) the aggregate
amount of unrestricted cash and Cash Equivalents held by Group Members at such date, and (b)
$160,000,000.

17

 

          “Minority Interests”: any shares of stock of any class of a Subsidiary of the
Borrower (other than directors’ qualifying shares if required by law) that are not owned by
Borrower or one of its Subsidiaries; Minority Interest shall be valued in accordance with GAAP.

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

          “Mortgaged Properties”: the real properties listed on Schedule 1.1E under the heading
“Mortgaged Properties”, as to which the Collateral Trustee, for the benefit of the Lenders and the
other secured parties referred to therein, shall be granted a Lien pursuant to the Mortgages.

          “Mortgages”: each of the mortgages and deeds of trust made by any Loan Party in favor
of the Collateral Trustee, for the benefit of the Lenders and the other secured parties referred to
therein, substantially in the form of Exhibit F (with such changes thereto as shall be advisable or
are customary under the law of the jurisdiction in which such mortgage or deed of trust is to be
recorded).

          “Multiemployer Plan”: a Plan that is a multiemployer plan as defined in Section
4001(a)(3) of ERISA.

          “Net Cash Proceeds”: (a) in connection with any Asset Sale (other than the
liquidation of a Joint Venture or the Disposition of Senior Subordinated Notes purchased pursuant
to a Permitted Open Market Purchase) or any Recovery Event or any transaction that would constitute
an Asset Sale but for clause (ii) of the definition thereof, the gross proceeds thereof in the
form of cash and Cash Equivalents (including any such proceeds received by way of deferred payment
of principal pursuant to a note or installment receivable or purchase price adjustment receivable
or otherwise, but only as and when received, and, with respect to any Asset Sale consisting of the
Disposition of all or substantially all of the assets of a business or business unit of the
Borrower or any of its Subsidiaries, net proceeds from the liquidation or sale of accounts
receivable or inventory of such business or business unit), net of (i) attorneys’ fees,
accountants’ fees, investment banking fees, (ii) amounts required to be applied to the repayment of
(x) Indebtedness secured by a Lien expressly permitted hereunder on any asset that is the subject
of such Asset Sale or Recovery Event (but excluding, in any event, any Lien securing the “Third
Priority Obligations” referred to in the Intercreditor Agreement) and (y) solely if such Asset Sale
or Recovery Event is consummated by a Foreign Subsidiary, any other Indebtedness permitted
hereunder, including without limitation any Foreign Credit Facility and any Indebtedness of any
parent or Subsidiary of such Foreign Subsidiary, but excluding any Indebtedness owed to any Group
Member, (iii) other customary fees and expenses actually incurred in connection therewith and (iv)
taxes paid or reasonably estimated to be payable as a result thereof and as a result of
distributing such proceeds to the Borrower (after taking into account any available tax credits or
deductions and any tax sharing arrangements), (b) in connection with any issuance or sale of
Capital Stock to a Person that is not a Group Member or any incurrence of Indebtedness to a Person
that is not a Group Member, the cash proceeds received from such issuance or incurrence, net of (i)
attorneys’ fees, accountants’ fees, investment banking fees, underwriting discounts and
commissions, (ii) other customary fees and expenses actually incurred in connection therewith and
net of taxes paid or reasonably estimated to be payable as a result of distributing such proceeds
to the Borrower (after taking into account

18

 

any available tax credits or deductions and any tax sharing arrangements) and (iii) amounts
required to be applied to the repayment of Indebtedness under the Exit Facility Agreement, (c) in
connection with the liquidation of a Joint Venture, the gross proceeds thereof in the form of cash
and Cash Equivalents received by any Group Member in excess of the fair market value of the
aggregate of all Investments made in such Joint Venture by any Group Member at any time and net of
(i) attorneys’ fees, accountants’ fees and investment banking fees, (ii) amounts required to be
applied to the repayment of (x) Indebtedness secured by a Lien expressly permitted hereunder on any
asset that is the subject of such liquidation (but excluding, in any event, any Lien securing the
“Third Priority Obligations” referred to in the Intercreditor Agreement) and (y) solely if such
liquidation is consummated by a Foreign Subsidiary, any other Indebtedness permitted hereunder,
including without limitation any Foreign Credit Facility and any Indebtedness of any parent or
Subsidiary of such Foreign Subsidiary, but excluding any Indebtedness owed to any Group Member,
(iii) other customary fees and expenses actually incurred in connection therewith and (iv) taxes
paid or reasonably estimated to be payable as a result thereof and as a result of distributing such
proceeds to the Borrower (after taking into account any available tax credits or deductions and any
tax sharing arrangements)and (d) in connection with the Disposition of Senior Subordinated Notes
purchased by any Group Member pursuant to a Permitted Open Market Purchase, an amount equal to the
purchase price paid by such Group Member pursuant to such Permitted Open Market Purchase (whether
or not the aggregate amount of proceeds thereof is equal to such purchase price). Notwithstanding
the foregoing, the “Net Cash Proceeds” of a Foreign Subsidiary shall not include any amounts to the
extent such amount may not be distributed (by way of dividends, intercompany loans or otherwise) to
the Borrower or a Domestic Subsidiary because doing so would (1) violate legal restrictions binding
upon such Foreign Subsidiary, (2) violate contractual restrictions contained in agreements with
third parties (other than Affiliates) entered into in good faith and binding upon such Foreign
Subsidiary or (3) result in material adverse tax consequences to the Borrower.

          “Non-Excluded Taxes”: as defined in Section 2.13(a).

          “Non-Guarantor Domestic Subsidiaries”: those Domestic Subsidiaries identified on
Schedule 1.1I.

          “Non-U.K. Foreign Subsidiary”: the Foreign Subsidiaries of the Borrower other than
the U.K. Subsidiaries.

          “Non-U.S. Lender”: as defined in Section 2.13(d).

          “Not Otherwise Applied”: on any date, with respect to any amount of Equity Proceeds
or Permitted Subordinated Indebtedness Proceeds, that such amount was not (i) required to be
applied to prepay the Loans pursuant to Section 2.5, (ii) applied to optionally prepay the Loans
pursuant to Section 2.6 and (iii) previously applied to make a Restricted Payment pursuant to
Section 6.6(f), to make a Capital Expenditure pursuant to Section 6.7 or to make an Investment
pursuant to Section 6.8(v). The Borrower shall promptly notify the Administrative Agent of any
application of such amount as contemplated by clause (iii) of this definition.

          “Notes”: the collective reference to any promissory note evidencing Loans.

19

 

          “Obligations”: the unpaid principal of and interest on (including interest accruing
after the maturity of the Loans and interest accruing after the filing of any petition in
bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to
the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such
proceeding) the Loans and all other obligations and liabilities of the Borrower to the
Administrative Agent or to any Lender, whether direct or indirect, absolute or contingent, due or
to become due, or now existing or hereafter incurred, which may arise under, out of, or in
connection with, this Agreement, any other Loan Document or any other document made, delivered or
given in connection herewith or therewith, whether on account of principal, interest, reimbursement
obligations, fees, indemnities, costs, expenses (including all fees, charges and disbursements of
counsel to the Administrative Agent or any Lender that are required to be paid by the Borrower
pursuant hereto) or otherwise.

          “Organizational Documents”: (i) with respect to any corporation, its certificate or
articles of incorporation, as amended, and its by-laws, as amended, (ii) with respect to any
limited partnership, its certificate of limited partnership or formation, as amended, and its
partnership agreement, as amended, (iii) with respect to any general partnership, its partnership
agreement, as amended, (iv) with respect to any limited liability company, its certificate of
formation or articles of organization, as amended, and its operating agreement, as amended, and (v)
with respect to any unlimited liability company, its certificate of formation, as amended, and its
memorandum and articles of association, as amended. In the event any term or condition of this
Agreement or any other Loan Document requires any Organizational Document to be certified by a
secretary of state of similar governmental official, the reference to any such “Organizational
Document” shall only be to a document of a type customarily certified by such governmental
official.

          “Other Taxes”: any and all present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies arising from any payment made hereunder or from
the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any
other Loan Document.

          “Other Unsecured Claims”: all allowed unsecured claims under the Reorganization Plan.

          “Participant”: as defined in Section 9.6(c).

          “Payment Office”: the office of the Administrative Agent specified in Section 9.2 or
such other office as may be specified from time to time by the Administrative Agent as its payment
office by written notice to the Borrower and the Lenders.

          “PBGC”: the Pension Benefit Guaranty Corporation established pursuant to Subtitle A
of Title IV of ERISA (or any successor).

          “Permitted Acquisition”: any Acquisition, if such Acquisition complies with the
following criteria:

          (a) no Default or Event of Default shall have occurred or be continuing either prior to or
after giving effect to the consummation of such Acquisition and the incurrence by the

20

 

Group Members of any Indebtedness associated therewith, and the Borrower shall have delivered
to the Administrative Agent prior to the consummation of such Acquisition a certificate of a
Responsible Officer to such effect;

          (b) (i) the Fair Market Consideration is less than $50,000,000 or (ii) the Fair Market
Consideration is greater than or equal to $50,000,000 and (I) the Pre-Transaction Coverage Ratio
shall be, and the Consolidated Debt Service Coverage Ratio, determined on a Pro Forma Basis, shall
be, equal to or greater than (X) 1.50 to 1.00, for any such Acquisition consummated on or prior to
the third anniversary of the Closing Date or (Y) 1.10 to 1.00, for any such Acquisition consummated
after the third anniversary of the Closing Date or (II) the Pre-Transaction Coverage Ratio shall be
less than (X) 1.50 to 1.00 for any such Acquisition consummated on or prior to the third
anniversary of the Closing Date or (Y) 1.10 to 1.00, for any such Acquisition consummated after the
third anniversary of the Closing Date and the Consolidated Debt Service Coverage Ratio, determined
on a Pro Forma Basis, shall not be less than the Pre-Transaction Coverage Ratio, and, in the case
of each of the foregoing, the Borrower shall have delivered to the Administrative Agent prior to
the consummation of such Acquisition such financial information as the Administrative Agent shall
reasonably request to demonstrate such compliance;

          (c) if the Fair Market Consideration is greater than $100,000,000, the Borrower shall have
delivered to the Administrative Agent prior to the consummation of such Acquisition a certificate
of a Responsible Officer, certifying that such Acquisition has been approved by a Board Majority;

          (d) after giving effect to the consummation of such Acquisition and to the incurrence by the
Group Members of any Indebtedness associated therewith, if such Acquisition is consummated on or
after the first date on which the Borrower is required to comply with any covenant in Section 6.1,
the Borrower, shall be in compliance, determined on a Pro Forma Basis, with such covenant in
Section 6.1, and the Borrower shall have delivered to the Administrative Agent prior to the
consummation of such Acquisition such financial information as the Administrative Agent shall
reasonably request to demonstrate such pro forma compliance; and

          (e) any Person whose Capital Stock is directly or indirectly acquired shall be, after giving
effect to such Acquisition, a direct or an indirect Subsidiary of the Borrower.

          “Permitted Asset Sale”: any Asset Sale by any Group Member, if such Asset Sale
complies with the following criteria:

          (a) no Default or Event of Default shall have occurred and be continuing either prior to or
after giving effect to the consummation of such Asset Sale, and the Borrower shall have delivered
to the Administrative Agent prior to the consummation of such Asset Sale a certificate of a
Responsible Officer to such effect;

          (b) (i) the aggregate fair market value of all consideration paid to the Group Members in
respect of such Asset Sale is less than $50,000,000, or (ii) the aggregate fair market value of all
consideration paid to the Group Members in respect of such Asset Sale is greater than or equal to
$50,000,000 and, if such Asset Sale is consummated on or after the first date on

21

 

which the Borrower is required to comply with any covenant in Section 6.1, prior to and after
giving effect to the consummation of such Asset Sale, the Borrower shall be in compliance, on a Pro
Forma Basis, with such covenant in Section 6.1 (and the Borrower shall have delivered to the
Administrative Agent prior to the consummation of such Asset Sale such financial information as the
Administrative Agent shall reasonably request to demonstrate such pro forma compliance) or (iii)
all the Net Cash Proceeds of such Asset Sale are applied in whole to prepay the Loans or the
Indebtedness under the Exit Facility Agreement;

          (c) the consideration received by the Group Members in respect of such Asset Sale shall at
least be equal to the fair market value of the assets being Disposed and shall consist of at least
662/3% in cash and Cash Equivalents; provided, that up to $25,000,000 of Asset Sales per fiscal year
may be Permitted Asset Sales without meeting the requirements of this clause (c); and

          (d) the aggregate fair market value of all consideration received by the Group Members in
connection with all such Asset Sales shall not, without the prior consent of the Required Lenders,
exceed in any fiscal year of the Borrower the sum of (i) $200,000,000 plus (ii) all such
consideration applied by a Group Member in making Permitted Net Cash Proceeds Reinvestments.

          “Permitted Holders”: Federal-Mogul U.S. Asbestos Personal Injury Trust and Thornwood,
which are the holders of Class A Common Stock and Class B Common Stock of the Borrower on the
Effective Date pursuant to the Reorganization Plan.

          “Permitted Net Cash Proceeds Reinvestments”: (i) assets (“replacement assets”) to be
acquired or built with the Net Cash Proceeds of any Recovery Event (but not any Asset Sale), so
long as (x) such replacement assets are to be used for substantially the same purpose as the assets
that were subject to the relevant Recovery Event (“subject assets”) and (y) such replacement assets
are to be located in the United States to the extent that the subject assets were located in the
United States prior to such Recovery Event and (ii) assets to be acquired or built with the Net
Cash Proceeds of any Asset Sale or Recovery Event that are useful in the business of the Borrower
but that do not comply with the criteria set forth in clause (i) of this definition.

          “Permitted Open Market Purchase”: any purchase by any Group Member in the open market
(including without limitation, a privately negotiated purchase) of Senior Subordinated Notes for
less than the face amount thereof at the time of such purchase, together with accrued and unpaid
interest thereon, provided that (a) any such purchase is consummated pursuant to the terms of this
Agreement and (b) either (i) such Senior Subordinated Notes are canceled upon consummation of such
purchase or (ii) an amount equal to the purchase price paid by such Group Member to purchase such
Senior Subordinated Notes is applied upon the Disposition thereof to prepay the Loans in accordance
with Section 2.5(a) or the Indebtedness under the Exit Facility Agreement if any such purchased
Senior Subordinated Notes are thereafter Disposed of by such Group Member.

          “Permitted Subordinated Indebtedness”: Indebtedness of the Borrower (i) which shall
be contractually subordinated to the Obligations, (ii) which shall have subordination and other
terms (other than economic terms), taken as a whole, no less favorable to the Lenders than

22

 

the terms of the Senior Subordinated Notes in relation to the Obligations, and (iii) if such
Indebtedness is secured, any Liens securing such Indebtedness shall be junior to the “Second
Priority Liens” referred to in the Intercreditor Agreement and shall be subject to Lien
subordination provisions, taken as a whole, no less favorable to the Lenders in any material
respect than the terms of the subordination of the “Third Priority Liens” referred to in the
Intercreditor Agreement in relation to the “Second Priority Liens” referred to therein.

          “Permitted Subordinated Indebtedness Proceeds”: the Net Cash Proceeds of any
Permitted Subordinated Indebtedness incurred by a Group Member.

          “Person”: an individual, partnership, corporation, limited liability company,
business trust, joint stock company, trust, unincorporated association, joint venture, Governmental
Authority or other entity of whatever nature.

          “Petition Date”: as defined in the introductory statement hereto.

          “Plan”: at a particular time, any employee benefit plan that is covered by Title IV
of ERISA and in respect of which the Borrower or a Commonly Controlled Entity is (or, if such plan
were terminated at such time, would under Section 4069 of ERISA be deemed to be) an “employer” as
defined in Section 3(5) of ERISA.

          “Positive EBITDA Variance”: as defined in the Intercreditor Agreement.

          “Prepayment Application Date”: with respect to any mandatory prepayment pursuant to
Sections 2.5(d) and (e), 115 days after the end of the fiscal year with respect to which such
prepayment is made.

          “Prepetition Credit Agreement”: the Fourth Amended and Restated Credit Agreement,
dated as of December 29, 2000, as amended, among the Borrower, the foreign subsidiary borrowers
parties thereto, the lenders from time to time parties thereto and JPMorgan Chase Bank (formerly
known as The Chase Manhattan Bank), as administrative agent for such lenders.

          “Pre-Transaction Coverage Ratio”: with respect to any Acquisition, the Consolidated
Debt Service Coverage Ratio immediately prior to giving effect to the consummation of such
Acquisition, and the incurrence by the Group Members of any Indebtedness associated therewith,
calculated based upon Consolidated EBITDA for the four fiscal quarters most recently ended for
which financial statements are available.

          “Proceeds Investment”: an Investment made pursuant to Section 6.8(v).

          “Proceeds Investment Basket”: on any date, an amount equal to (i) the aggregate
amount of Equity Proceeds and Permitted Subordinated Indebtedness Proceeds that have been applied
to make Investments pursuant to Section 6.8(v) on or prior to such date (so long as, at the time
any such Investment was made, such Equity Proceeds or Permitted Subordinated Indebtedness Proceeds
were Not Otherwise Applied) plus (ii) the aggregate amount of distributions in cash and Cash
Equivalents with respect to any Investment made pursuant to

23

 

Section 6.8(v) that have been received on or prior to such date by the Group Member that holds
such Investment.

          “Pro Forma Balance Sheet”: as defined in Section 3.1(a).

          “Pro Forma Basis”: with respect to any calculation of any financial covenant
contained in Section 6.1 in connection with any Acquisition or Asset Sale (including any financial
test set forth in the definition of “Permitted Acquisition” to be determined on a pro forma basis),
such covenant calculated on a pro forma basis after giving effect to the consummation of such
Acquisition, and to the incurrence by the Group Members of any Indebtedness associated therewith,
or such Asset Sale, as the case may be, as if such Acquisition or Asset Sale, as the case may be,
had occurred on the first day of the period of four consecutive fiscal quarters most recently ended
for which the financial statements are available and, if such calculation is made in connection
with any Acquisition, with adjustments for (i) non-recurring or one-time expenses or charges that
have actually been incurred directly related to the Assets subject to such Acquisition and (ii)
expenses or charges that have actually been incurred directly related to the Assets subject of such
Acquisition but would not have been incurred if the relevant Acquisition had been consummated on
the first day of such period, in each case as determined by the Borrower in good faith.

          “Projections”: as defined in Section 5.2(c).

          “Receivable”: a payment owing to a Person (whether constituting an account, chattel
paper, document, instrument or general intangible) arising from the provision of merchandise, goods
or services by such Person, including the right to payment of any interest or finance charges and
other obligations owing to such Person with respect thereto.

          “Recovery Event”: any settlement of or payment in respect of any property or casualty
insurance claim or any condemnation proceeding relating to any asset of any Group Member.

          “Register”: as defined in Section 9.6(b).

          “Regulation U”: Regulation U of the Board as in effect from time to time.

          “Reinvestment Deferred Amount”: with respect to any Reinvestment Event, the aggregate
Net Cash Proceeds received by any Group Member in connection therewith that are not applied to
prepay the Loans pursuant to Section 2.5(c) or the Indebtedness under the Exit Facility Agreement
as a result of the delivery of a Reinvestment Notice.

          “Reinvestment Event”: any Asset Sale or Recovery Event in respect of which the
Borrower has delivered a Reinvestment Notice.

          “Reinvestment Notice”: a written notice executed by a Responsible Officer stating
that no Event of Default has occurred and is continuing and the Borrower (directly or indirectly
through a Subsidiary) intends and expects to use all or a specified portion of the Net Cash
Proceeds of an Asset Sale or Recovery Event to make a Permitted Net Cash Proceeds

24

 

Reinvestment, and specifying whether such Permitted Net Cash Proceeds Reinvestment is one
described in clause (i) or (ii) of the definition thereof.

          “Reinvestment Prepayment Amount”: as of any Reinvestment Prepayment Date with respect
to any Reinvestment Event, the Reinvestment Deferred Amount relating thereto less any amount
expended prior to such Reinvestment Prepayment Date to make Permitted Net Cash Proceeds
Reinvestments.

          “Reinvestment Prepayment Date”: with respect to any Reinvestment Event, the earlier
of (a) the date on which the report referred to in Section 5.2(f) for the fiscal quarter in which
the twelve month anniversary of the date on which the Borrower has delivered the Reinvestment
Notice with respect to such Reinvestment Event occurs is (i) required to be delivered to the
Lenders or (ii) actually delivered to the Lenders and (b) the date on which the Borrower shall have
determined not to, or shall have otherwise ceased to, apply all or any portion of the relevant
Reinvestment Deferred Amount to make the Permitted Net Cash Proceeds Reinvestment identified in the
relevant Reinvestment Notice.

          “Related Security”: with respect to any Receivables: (a) all Liens and property
subject thereto from time to time securing or purporting to secure the payment of such Receivable
by the Person obligated thereon, (b) all guaranties, indemnities and warranties, insurance
policies, financing statements and other agreements or arrangements of whatever character from time
to time supporting or securing payment of such Receivable, (c) all right, title and interest of any
Group Member or any SPV in and to any goods (including returned, repossessed or foreclosed goods)
the sale of which gave rise to such Receivable; provided that Related Security will not
include returned goods only to the extent that all amounts required to be paid pursuant to
Securitization Transactions in respect of such goods have been paid, (d) all collections with
respect to any of the foregoing, (e) all records with respect to any of the foregoing, and (f) all
proceeds of such Receivable or with respect to any of the foregoing.

          “Reorganization”: with respect to any Multiemployer Plan, the condition that such
plan is in reorganization within the meaning of Section 4241 of ERISA.

          “Reorganization Plan”: the Fourth Amended Joint Plan of Reorganization proposed by
the Debtors, the Unsecured Creditors Committee, the Asbestos Claimants Committee, the Equity
Committee, the Future Claimants Representative and JPMCB, as administrative agent for the holders
of the Bank Claims, as amended or modified from time to time (whether any such amendment or
modification is effected through an amendment or modification to the Reorganization Plan itself or
through the Confirmation Order), so long as any such amendment or modification does not adversely
affect the Lenders.

          “Reportable Event”: any of the events set forth in Section 4043(c) of ERISA, other
than those events as to which the thirty day notice period is waived
under subsections .27, .28, .29, .30, .31, .32, .34 or .35 of PBGC Reg. § 4043.

          “Required Lenders”: at any time, the holders (excluding any Affiliate of a Group
Member or of a Significant Shareholder) of more than 50% of the aggregate unpaid principal

25

 

amount of the Loans then outstanding (excluding Loans held by any Affiliate of a Group Member
or of a Significant Shareholder).

          “Requirement of Law”: as to any Person, the Organizational Documents of such Person,
and any law, treaty, rule or regulation or determination of an arbitrator or a court or other
Governmental Authority, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject.

          “Responsible Officer”: the chief executive officer, president, chief financial
officer or treasurer of the Borrower, but in any event, with respect to financial matters, the
chief financial officer or treasurer of the Borrower.

          “Restricted Payments”: as defined in Section 6.6.

          “S&P”: Standard & Poor’s Ratings Services.

          “SEC”: the Securities and Exchange Commission, any successor thereto and any
analogous Governmental Authority.

          “Securitization Transactions”: one or more securitization transactions pursuant to
which any Group Member securitizes Receivables and Related Security, including without limitation,
as a result of the sale or granting of a Lien on such Receivables and Related Security to the SPV
and the contribution of Receivables and Related Security to the SPV.

          “Security Documents”: the collective reference to the Collateral Agreement, the
Foreign Pledge Agreements, the Mortgages and all other security documents hereafter delivered to
the Collateral Trustee granting a Lien on any property of any Person to secure the obligations and
liabilities of any Loan Party under any Loan Document.

          “Senior Subordinated Notes”: (i) the Senior Subordinated Secured Notes due 2018
issued on the Closing Date pursuant to the Senior Subordinated Notes Indenture in effect on the
Closing Date and (ii) any Indebtedness permitted under Section 6.2(n) that is incurred after the
Closing Date to refinance, replace, refund, renew or extend in whole or in part the Indebtedness
described in clause (i), other than the Term Loans under the Exit Facility.

          “Senior Subordinated Notes Indenture”: (i) the Indenture, dated as of the date
hereof, entered into by the Borrower and certain of its Subsidiaries in connection with the
issuance of the Senior Subordinated Notes, together with all instruments and other agreements
entered into by the Borrower or such Subsidiaries in connection therewith, and (ii) any other
credit agreement, loan agreement, note agreement, promissory note, indenture, or other agreement or
instrument evidencing or governing the terms of any indebtedness or other financial accommodation
that is hereafter incurred to refinance, replace, refund, renew or extend in whole or in part the
Indebtedness and other obligations outstanding under any of the agreements described in clause (i),
together with all instruments and other agreements entered into by the Borrower or such
Subsidiaries in connection therewith; provided that any agreement or instrument described
in this clause (ii) shall not contain any financial covenants, negative covenants or events of
default that are materially more restrictive than those set forth in this Agreement, in each case
as the same may be amended, supplemented or otherwise modified from

26

 

time to time in accordance with Section 6.9. Any reference to the Senior Subordinated Notes
Indenture hereunder shall be deemed a reference to each of the Senior Subordinated Notes Indentures
then extant.

          “Senior Subordinated Notes Trustee”: U.S. Bank National Association, in its capacity
as trustee under the Senior Subordinated Notes Indenture, together with any of its successors.

          “Significant Shareholder”: any beneficial holder or group of affiliated beneficial
holders of securities representing 30% or more of the voting power of the Borrower.

          “Single Employer Plan”: any Plan that is covered by Title IV of ERISA, but that is
not a Multiemployer Plan.

          “Specified Change of Control”: a “Change of Control” (or any other defined term
having a similar purpose) as defined in the Senior Subordinated Notes Indenture, any document
governing any Permitted Subordinated Indebtedness, the Exit Facility Agreement or the Additional
Liquidity Facility Agreement.

          “Specified Indebtedness”: on any date or for any period, (i) Intercompany Loans, (ii)
Indebtedness described in clause (f) of the definition thereof, so long as such Indebtedness is
contingent and (iii) any Indebtedness described in clause (j) of the definition thereof and
Indebtedness permitted under Sections 6.2(i), 6.2(k) and 6.2(m), unless any such Indebtedness
described in this clause (iii) would be required to be reflected as debt on the consolidated
balance sheet of the Borrower on such date and the payments associated therewith would be required
to be included as interest expense on the consolidated income statement of the Borrower for such
period, in each case in accordance with GAAP.

          “SPV”: a Wholly Owned Subsidiary of the Borrower which is created for the sole
purpose of purchasing Receivables from any Group Member as part of a Securitization Transaction,
which engages in no activities other than in connection with the financing of Receivables and which
is designated as an SPV by the board of directors of the Borrower as an SPV; provided that (a) no
portion of the Indebtedness or any other obligations (contingent or otherwise) of which (i) is
guaranteed by any Group Member (excluding guarantees of obligations (other than the principal of,
and interest on, Indebtedness)) pursuant to Standard Securitization Undertakings, (ii) is recourse
to or obligates any Group Member in any way other than pursuant to Standard Securitization
Undertakings or (iii) subjects any property or asset of any Group Member, directly or indirectly,
contingently or otherwise, to the satisfaction thereof, other than pursuant to Standard
Securitization Undertakings, (b) with which no Group Member has any material contract, agreement,
arrangement or understanding other than on terms no less favorable to such Group Member than those
that might be obtained at the time from Persons that are not Affiliates of the Borrower, other than
fees payable in the ordinary course of business in connection with servicing Receivables of such
entity, (c) to which no Group Member has any obligation to maintain or preserve such entity’s
financial condition or cause such entity to achieve certain levels of operating results and (d) the
Capital Stock of such SPV is pledged in favor of the Lenders to secure the Obligations. Any such
designation by the board of directors of the Borrower shall be evidenced to the Administrative
Agent by delivery to the Administrative

27

 

Agent of a certified copy of the resolution of the board of directors of the Borrower giving
effect to such designation and a certificate of a Responsible Officer certifying that such
designation complied with the foregoing conditions.

          “Standard Securitization Undertakings”: representations, warranties, covenants and
indemnities entered into by any Group Member which are reasonably customary in an accounts
receivable securitization transaction.

          “Strategic Plan”: as defined in Section 5.2(d).

          “Subsidiary”: as to any Person, a corporation, partnership, limited liability company
or other entity of which shares of stock or other ownership interests having ordinary voting power
(other than stock or such other ownership interests having such power only by reason of the
happening of a contingency) to elect a majority of the board of directors or other managers of such
corporation, partnership or other entity are at the time owned, or the management of which is
otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such
Person. Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in this
Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower.

          “Swap Agreement”: any agreement with respect to any swap, forward, future or
derivative transaction or option or similar agreement involving, or settled by reference to, one or
more rates, currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk or value or any
similar transaction or any combination of these transactions; provided that no phantom stock or
similar plan providing for payments only on account of services provided by current or former
directors, officers, employees or consultants of any Group Member shall be a “Swap Agreement”.

          “Tax Restructuring” shall mean (a) the transactions set forth in Schedule 1.1H and (b)
any additional transactions to restructure the Borrower’s foreign operations after the Closing Date
so long as (i) the Borrower shall have provided all information relating to such additional
transactions under this clause (b) as the Administrative Agent shall have requested and (ii)
consummation of such additional transactions under this clause (b) shall not have an impact that is
material and adverse on the structure or the value of the Collateral set forth in Schedule 1.1F, in
each case as determined by the Administrative Agent in its reasonable credit judgment.

          “Term Percentage”: with respect to any Lender at any time, the percentage which the
aggregate principal amount of such Lender’s Loans then outstanding constitutes of the aggregate
principal amount of all Loans then outstanding.

          “Thornwood”: Thornwood Associates Limited Partnership and its Affiliates. For the
avoidance of doubt, Icahn Enterprises L.P. shall be deemed to be an Affiliate of Thornwood.

          “Transferee”: any Assignee or Participant.

          “Type”: as to any Loan, its nature as an ABR Loan or a Eurodollar Loan.

28

 

          “U.K. Administration”: as defined in the definition of “U.K. Subsidiaries”.

          “U.K. Dissolution”: the winding up or striking off of (x) those U.K. Subsidiaries
listed on Schedule 1.1G hereto or (y) any other U.K. Subsidiary which is no longer trading and
which has gross assets (as shown in the most recent set of audited accounts) of less than ₤10,000.

          “U.K. Settlement Agreement”: that certain agreement dated September 26, 2005 among
the Borrower, T&N Limited, certain bankruptcy plan proponents, High River Limited Partnership, the
Pension Protection Fund and James J. Gleave, Simon V. Freakley and Gary P. Squires of Kroll Limited
and their successors as joint administrators of T&N Limited, appointed by order of the High Court
of Justice of England and Wales.

          “U.K. Subsidiaries”: those Subsidiaries of the Borrower which are organized under the
laws of any jurisdiction in the United Kingdom and which are the subject of administration
petitions under the U.K. Insolvency Act of 1986 (collectively, and including upon the grant of such
petitions, the “U.K. Administration”) and are debtors in cases pending under Chapter 11 of the
Bankruptcy Code.

          “United States”: the United States of America.

          “U.S. Debtors”: as defined in the introductory statement hereto.

          “Wagner Lighting Divestiture”: a Disposition consisting of the sale by the Borrower
and its Subsidiaries of certain assets located in the United States related to the Wagner Lighting
Group, including manufacturing equipment related thereto but excluding the sale of the “Wagner”
brand.

          “Wholly Owned Subsidiary”: as to any Person, any other Person all of the Capital
Stock of which (other than directors’ qualifying shares required by law) is owned by such Person
directly and/or through other Wholly Owned Subsidiaries.

          “Wholly Owned Subsidiary Guarantor”: any Guarantor that is a Wholly Owned Subsidiary
of the Borrower.

          1.2 Other Definitional Provisions.

          (a) Unless otherwise specified therein, all terms defined in this Agreement shall have the
defined meanings when used in the other Loan Documents or any certificate or other document made or
delivered pursuant hereto or thereto.

          (b) As used herein and in the other Loan Documents, and any certificate or other document made
or delivered pursuant hereto or thereto, (i) accounting terms relating to any Group Member not
defined in Section 1.1 and accounting terms partly defined in Section 1.1, to the extent not
defined, shall have the respective meanings given to them under GAAP, (ii) the words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”, (iii)
the word “incur” shall be construed to mean incur, create, issue,

29

 

assume, become liable in respect of or suffer to exist (and the words “incurred” and
“incurrence” shall have correlative meanings), (iv) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, Capital Stock, securities, revenues, accounts, leasehold
interests and contract rights, and (v) references to agreements or other Contractual Obligations
shall, unless otherwise specified, be deemed to refer to such agreements or Contractual Obligations
as amended, supplemented, restated or otherwise modified from time to time.

          (c) The words “hereof”, “herein” and “hereunder” and words of similar import, when used in
this Agreement, shall refer to this Agreement as a whole and not to any particular provision of
this Agreement, and Section, Schedule and Exhibit references are to this Agreement unless otherwise
specified.

          (d) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

SECTION 2. AMOUNT AND TERMS OF LOANS

          2.1 Loans. Subject to the terms and conditions hereof and to give effect to the
Reorganization Plan and provide for the repayment, in part, of the Bank Claims and the Surety
Claims (as defined in the Reorganization Plan), each Lender shall be deemed to have made a term
loan to the Borrower on the Closing Date in an amount not to exceed the amount set forth opposite
such Lender’s name on Schedule 1.1A. The Loans deemed made pursuant to the preceding sentence
shall be made without any actual funding and shall initially be Eurodollar Loans with Interest
Periods of one week. After the Closing Date, the Loans may from time to time be Eurodollar Loans
or ABR Loans, as determined by the Borrower and notified to the Administrative Agent in accordance
with Section 2.6.

          2.2 Repayment of Loans. The Loan of each Lender shall mature in 22 consecutive
quarterly installments, each of which shall be in an amount equal to such Lender’s Term Percentage
multiplied by the amount set forth below opposite such installment:

	 	 	 	 	 
	Installment	 	Principal Amount
	December 31, 2008

	 	$	5,700,000	 
	March 31, 2009

	 	$	5,700,000	 
	June 30, 2009

	 	$	5,700,000	 
	September 30, 2009

	 	$	5,700,000	 
	December 31, 2009

	 	$	11,400,000	 
	March 31, 2010

	 	$	11,400,000	 
	June 30, 2010

	 	$	11,400,000	 
	September 30, 2010

	 	$	11,400,000	 
	December 31, 2010

	 	$	11,400,000	 
	March 31, 2011

	 	$	11,400,000	 
	June 30, 2011

	 	$	11,400,000	 
	September 30, 2011

	 	$	11,400,000	 
	December 31, 2011

	 	$	56,900,000	 
	March 31, 2012

	 	$	56,900,000	 
	June 30, 2012

	 	$	56,900,000	 
	September 30, 2012

	 	$	56,900,000	 
	December 31, 2012

	 	$	56,900,000	 
	March 31, 2013

	 	$	56,900,000	 

30

 

	 	 	 	 	 
	Installment	 	Principal Amount
	June 30, 2013

	 	$	56,900,000	 
	September 30, 2013

	 	$	56,900,000	 
	December 31, 2013

	 	$	56,900,000	 

	 	 	 
	Maturity Date	 	Balance
	 

	 	 

          2.3 Fees, etc. The Borrower agrees to pay to the Administrative Agent the fees in the
amounts and on the dates as set forth in any fee agreements with the Administrative Agent and to
perform any other obligations contained therein.

          2.4 Optional Prepayments. The Borrower may at any time and from time to time prepay
the Loans, in whole or in part, without premium or penalty, upon irrevocable notice delivered to
the Administrative Agent no later than 11:00 A.M., New York City time, three Business Days prior
thereto, in the case of Eurodollar Loans, and no later than 11:00 A.M., New York City time, one
Business Day prior thereto, in the case of ABR Loans, which notice shall specify the date and
amount of prepayment and whether the prepayment is of Eurodollar Loans or ABR Loans; provided that
if a Eurodollar Loan is prepaid on any day other than the last day of the Interest Period
applicable thereto, the Borrower shall also pay any amounts owing pursuant to Section 2.14. Upon
receipt of any such notice the Administrative Agent shall promptly notify each Lender thereof. If
any such notice is given, the amount specified in such notice shall be due and payable on the date
specified therein, together with accrued interest to such date on the amount prepaid. Partial
prepayments of Loans pursuant to this Section 2.4 shall be in an aggregate principal amount of
$1,000,000 or a whole multiple thereof.

          2.5 Mandatory Prepayments.

          (a) Unless the Required Lenders otherwise agree, an amount equal to 50% of the Net Cash
Proceeds of any issuance of Capital Stock by any Loan Party shall be applied to the prepayment of
the Loans as set forth in Section 2.5(f) on the 121st day after the date of such issuance to the
extent such Net Cash Proceeds are not used prior to such 121st day to make (v) a Capital
Expenditure, (w) a Restricted Payment, (x) a Board-Approved Investment or a Proceeds Investment (in
either case so long as the Borrower shall have complied with the provisions of Section 5.9, to the
extent applicable, with respect to any assets acquired by any Group Member pursuant to such
Board-Approved Investment or Proceeds Investment, as the case may be), (y) a Permitted Acquisition
(so long as the Borrower shall have complied with the provisions of
Section 5.9, to the extent applicable, with respect to any assets acquired by any Group Member
pursuant to such Permitted Acquisition), (z) Permitted Open Market Purchases or (zz) a prepayment
or repayment of the Indebtedness under the Exit Facility Agreement; provided that if on such 121st
day a Board-Approved Investment or Proceeds Investment, a Permitted Acquisition or Permitted Open
Market Purchases shall not have been consummated but one or more Group Members shall have entered
into a binding letter of intent or definitive purchase documentation with respect thereto (or, with
respect to Permitted Open Market Purchases, shall have made a binding offer, subject to the
conditions set forth therein), then the Payment Date shall be extended to the 181st day after such
incurrence, and on such day the relevant Net Cash Proceeds shall be applied to the prepayment of
the Loans as specified above to the extent such Net Cash Proceeds are not used prior to such 181st
day to consummate (x) a Board-Approved

31

 

Investment or Proceeds Investment (in either case so long as
the Borrower shall have complied with the provisions of Section 5.9, to the extent applicable, with
respect to any assets acquired by any Group Member pursuant to such Board-Approved Investment), (y)
a Permitted Acquisition (so long as the Borrower shall have complied with the provisions of Section
5.9, to the extent applicable, with respect to any assets acquired by any Group Member pursuant to
such Permitted Acquisition), or (z) Permitted Open Market Purchases.

          (b) Unless the Required Lenders shall otherwise agree and except as set forth in the
immediately succeeding sentence with respect to the incurrence of Permitted Subordinated
Indebtedness, an amount equal to 100% of the Net Cash Proceeds of any incurrence of Indebtedness of
any Loan Party (excluding any Indebtedness permitted to be incurred under Section 6.2) shall be
applied to the prepayment of the Loans as set forth in Section 2.5(f) on the date of such
incurrence. An amount equal to 100% of the Net Cash Proceeds of any incurrence of Permitted
Subordinated Indebtedness of any Loan Party shall be applied to the prepayment of the Loans as set
forth in Section 2.5(f) on the 121st day (the “Payment Date”) after the date of such incurrence (as
such date may be extended pursuant to the proviso set forth at the end of this sentence) to the
extent such Net Cash Proceeds are not used prior to such 121st day to make (v) a Capital
Expenditure, (w) a Restricted Payment, (x) a Board-Approved Investment or a Proceeds Investment (in
either case so long as the Borrower shall have complied with the provisions of Section 5.9, to the
extent applicable, with respect to any assets acquired by any Group Member pursuant to such
Board-Approved Investment or Proceeds Investment, as the case may be), (y) a Permitted Acquisition
(so long as the Borrower shall have complied with the provisions of Section 5.9, to the extent
applicable, with respect to any assets acquired by any Group Member pursuant to such Permitted
Acquisition), (z) Permitted Open Market Purchases or (zz) a prepayment or repayment of the
Indebtedness under the Exit Facility Agreement; provided that if on such 121st day a Board-Approved
Investment or Proceeds Investment, a Permitted Acquisition or Permitted Open Market Purchases shall
not have been consummated but one or more Group Members shall have entered into a binding letter of
intent or definitive purchase documentation with respect thereto (or, with respect to Permitted
Open Market Purchases, shall have made a binding offer, subject to the conditions set forth
therein), then the Payment Date shall be extended to the 181st day after such incurrence, and on
such day the relevant Net Cash Proceeds shall be applied to the prepayment of the Loans as
specified above to the extent such Net Cash Proceeds are not used prior to such 181st day to
consummate (x) a Board-Approved Investment or Proceeds Investment (in either case so long as the
Borrower shall have complied with the provisions of Section 5.9, to the extent applicable, with
respect to any assets acquired by any Group Member pursuant to such Board-Approved Investment), (y)
a Permitted Acquisition
(so long as the Borrower shall have complied with the provisions of Section 5.9, to the extent
applicable, with respect to any assets acquired by any Group Member pursuant to such Permitted
Acquisition), or (z) Permitted Open Market Purchases.

          (c) Unless the Required Lenders shall otherwise agree and unless a Reinvestment Notice is
delivered to the Administrative Agent within three (3) Business Days after the day of receipt by a
Group Member of the Net Cash Proceeds of any Asset Sale or Recovery Event that results from the
sale or other disposition of, or payment with respect to, any of the Collateral, an amount equal to
100% of such Net Cash Proceeds minus the amount of such Net Cash Proceeds applied to the
Indebtedness under the Exit Facility Agreement shall be applied to the prepayment of the Loans as
set forth in Section 2.5(f) within ten (10) Business

32

 

Days after the day of receipt of any such Net
Cash Proceeds by any Group Member; provided that no prepayment of the Loans shall be required to be
made pursuant to this subsection until the amount of Net Cash Proceeds to be applied to make such
prepayment is at least equal to $10,000,000. If a Reinvestment Notice is timely delivered pursuant
to the immediately preceding sentence, on each Reinvestment Prepayment Date, an amount equal to the
Reinvestment Prepayment Amount with respect to the relevant Reinvestment Event shall be applied to
the prepayment of the Loans as set forth in Section 2.5(f). Notwithstanding the delivery of a
Reinvestment Notice pursuant to this paragraph, the aggregate Net Cash Proceeds of Asset Sales and
Recovery Events that may be excluded from the requirement to prepay the Loans contained in this
paragraph pursuant to a Reinvestment Notice shall not exceed (x) with respect to any single Asset
Sale or Recovery Event, $30,000,000 and (y) in the aggregate during any fiscal year of the
Borrower, $200,000,000; provided that Net Cash Proceeds that are to be applied to make
Permitted Net Cash Proceeds Reinvestments described in clause (i) of the definition thereof shall
be excluded in determining the aggregate Net Cash Proceeds subject to the limitations set forth in
clause (x) or (y) of this sentence.

          (d) Unless the Required Lenders shall otherwise agree, commencing with the fiscal year of the
Borrower ending December 31, 2008, the Applicable Amount of the Adjusted Excess Cash Flow for any
fiscal year of the Borrower shall be applied to the prepayment of the Loans as set forth in Section
2.5(f) on the Prepayment Application Date.

          (e) Unless the Required Lenders shall otherwise agree, commencing with the fiscal year of the
Borrower ending December 31, 2008, the Applicable Amount of the Adjusted Positive EBITDA Variance
for any fiscal year of the Borrower shall be applied to the prepayment of the Loans as set forth in
Section 2.5(f) on the Prepayment Application Date.

          (f) Amounts to be applied in connection with prepayments made pursuant to this Section 2.5
shall be applied to the prepayment of the Loans in accordance with Section 2.11(b). The
application of any prepayment pursuant to this Section 2.5 shall be made, first, to ABR
Loans and, second, to Eurodollar Loans. Each prepayment of the Loans under this Section
2.5 shall be accompanied by accrued interest to the date of such prepayment on the amount prepaid.

          2.6 Conversion and Continuation Options.

          (a) The Borrower may elect from time to time to convert Eurodollar Loans to ABR Loans by
giving the Administrative Agent prior irrevocable notice of such election no later than 11:00 A.M.,
New York City time, on the Business Day preceding the proposed conversion date, provided that any
such conversion of Eurodollar Loans may only be made on the last day of an Interest Period with
respect thereto. The Borrower may elect from time to time to convert ABR Loans to Eurodollar Loans
by giving the Administrative Agent prior irrevocable notice of such election no later than 11:00
A.M., New York City time, on the third Business Day preceding the proposed conversion date (which
notice shall specify the length of the initial Interest Period therefor), provided that no ABR Loan
may be converted into a Eurodollar Loan when any Event of Default has occurred and is continuing
unless the Administrative Agent or the Required Lenders have determined in its or their sole
discretion to permit such conversions.

33

 

Upon receipt of any such notice the Administrative Agent
shall promptly notify each Lender thereof.

          (b) Any Eurodollar Loan may be continued as such upon the expiration of the then current
Interest Period with respect thereto by the Borrower giving irrevocable notice to the
Administrative Agent, in accordance with the applicable provisions of the term “Interest Period”
set forth in Section 1.1, of the length of the next Interest Period to be applicable to such Loans,
provided that no Eurodollar Loan may be continued as such when any Event of Default has
occurred and is continuing unless the Administrative Agent has or the Required Lenders have
determined in its or their sole discretion to permit such continuations, and provided,
further, that if the Borrower shall fail to give any required notice as described above in
this paragraph or if such continuation is not permitted pursuant to the preceding proviso such
Loans shall be automatically converted to ABR Loans on the last day of such then expiring Interest
Period. Upon receipt of any such notice the Administrative Agent shall promptly notify each Lender
thereof.

          2.7 Limitations on Eurodollar Tranches. Notwithstanding anything to the contrary in
this Agreement, all conversions and continuations of Eurodollar Loans and all selections of
Interest Periods shall be in such amounts and be made pursuant to such elections so that, (a) after
giving effect thereto, the aggregate principal amount of the Eurodollar Loans comprising each
Eurodollar Tranche shall be equal to $5,000,000 or a whole multiple of $1,000,000 in excess thereof
and (b) no more than ten Eurodollar Tranches shall be outstanding at any one time.

          2.8 Interest Rates and Payment Dates.

          (a) Each Eurodollar Loan shall bear interest for each day during each Interest Period with
respect thereto at a rate per annum equal to the Eurodollar Rate determined for such day plus the
Applicable Margin.

          (b) Each ABR Loan shall bear interest at a rate per annum equal to the ABR plus the Applicable
Margin.

          (c) (i) If all or a portion of the principal amount of any Loan shall not be paid when due
(whether at the stated maturity, by acceleration or otherwise), such overdue amount shall bear
interest at a rate per annum equal to the rate that would otherwise be applicable thereto pursuant
to the foregoing provisions of this Section plus 2%, and (ii) if all or a portion of any interest
payable on any Loan or any fee or other amount payable hereunder shall not be paid when due
(whether at the stated maturity, by acceleration or otherwise), such overdue amount shall bear
interest at a rate per annum equal to the rate then applicable to ABR Loans plus 2%, in each case,
with respect to the foregoing clauses (i) and (ii), from the date of such non payment until such
amount is paid in full (as well after as before judgment).

          (d) Interest shall be payable in arrears on each Interest Payment Date, provided that interest
accruing pursuant to paragraph (c) of this Section 2.8 shall be payable from time to time on
demand.

          2.9 Computation of Interest and Fees.

34

 

          (a) Interest and fees payable pursuant hereto shall be calculated on the basis of a 360-day
year for the actual days elapsed, except that, with respect to ABR Loans the rate of interest on
which is calculated on the basis of the Prime Rate, the interest thereon shall be calculated on the
basis of a 365- (or 366-, as the case may be) day year for the actual days elapsed. The
Administrative Agent shall as soon as practicable notify the Borrower and the Lenders of each
determination of a Eurodollar Rate. Any change in the interest rate on a Loan resulting from a
change in the ABR or the Eurocurrency Reserve Requirements shall become effective as of the opening
of business on the day on which such change becomes effective. The Administrative Agent shall as
soon as practicable notify the Borrower and the Lenders of the effective date and the amount of
each such change in interest rate.

          (b) Each determination of an interest rate by the Administrative Agent pursuant to any
provision of this Agreement shall be conclusive and binding on the Borrower and the Lenders in the
absence of manifest error. The Administrative Agent shall, at the request of the Borrower, deliver
to the Borrower a statement showing the quotations used by the Administrative Agent in determining
any interest rate pursuant to Section 2.8(a).

          2.10 Inability to Determine Interest Rate. If prior to the first day of any Interest
Period:

          (a) the Administrative Agent shall have determined (which determination shall be conclusive
and binding upon the Borrower) that, by reason of circumstances affecting the relevant market,
adequate and reasonable means do not exist for ascertaining the Eurodollar Rate for such Interest
Period, or

          (b) the Administrative Agent shall have received notice from the Required Lenders that the
Eurodollar Rate determined or to be determined for such Interest Period will not adequately and
fairly reflect the cost to such Lenders (as conclusively certified by such Lenders) of making or
maintaining their affected Loans during such Interest Period,

the Administrative Agent shall give telecopy or telephonic notice thereof to the Borrower and the
Lenders as soon as practicable thereafter. If such notice is given (x) any Eurodollar Loans
requested to be made on the first day of such Interest Period shall be made as ABR Loans, (y) any
Loans that were to have been converted on the first day of such Interest Period to Eurodollar Loans
shall be continued as ABR Loans and (z) any outstanding Eurodollar Loans shall be converted, on the
last day of the then-current Interest Period, to ABR Loans. Until such notice has been withdrawn
by the Administrative Agent, no further Eurodollar Loans shall be made or continued as such, nor
shall the Borrower have the right to convert Loans to Eurodollar Loans.

          2.11 Pro Rata Treatment and Payments.

          (a) Each payment by the Borrower on account of any fee payable to the Lenders shall be made
pro rata according to the respective Term Percentages of the Lenders.

          (b) Each payment (including each prepayment) by the Borrower on account of principal of and
interest on the Loans shall be made ratably according to the respective outstanding principal
amounts of the Loans then held by the Lenders. The amount of each principal prepayment of the
Loans shall be applied to reduce ratably the then remaining

35

 

installments of the Loans (including
the final installment of the Loans due on the Maturity Date); provided that any optional
prepayments made pursuant to Section 2.4 during the first 60 days following the Closing Date shall
be applied to reduce the then remaining installments of the Loans in direct order of maturity.
Amounts prepaid on account of the Loans may not be reborrowed.

          (c) All payments (including prepayments) to be made by the Borrower hereunder, whether on
account of principal, interest, fees or otherwise, shall be made without setoff or counterclaim and
shall be made prior to 12:00 Noon, New York City time, on the due date thereof to the
Administrative Agent, for the account of the Lenders, at the Payment Office, in Dollars and in
immediately available funds. The Administrative Agent shall distribute such payments to the
Lenders promptly upon receipt in like funds as received. If any payment hereunder (other than
payments on the Eurodollar Loans) becomes due and payable on a day other than a Business Day, such
payment shall be extended to the next succeeding Business Day. If any payment on a Eurodollar Loan
becomes due and payable on a day other than a Business Day, the maturity thereof shall be extended
to the next succeeding Business Day unless the result of such extension would be to extend such
payment into another calendar month, in which event such payment shall be made on the immediately
preceding Business Day. In the case of any extension of any payment of principal pursuant to the
preceding two sentences, interest thereon shall be payable at the then applicable rate during such
extension.

          (d) Unless the Administrative Agent shall have been notified in writing by the Borrower prior
to the date of any payment due to be made by the Borrower hereunder that the Borrower will not make
such payment to the Administrative Agent, the Administrative Agent may assume that the Borrower is
making such payment, and the Administrative Agent may, but shall not be required to, in reliance
upon such assumption, make available to the Lenders their respective pro rata shares of a
corresponding amount. If such payment is not made to the
Administrative Agent by the Borrower within three Business Days after such due date, the
Administrative Agent shall be entitled to recover, on demand, from each Lender to which any amount
which was made available pursuant to the preceding sentence, such amount with interest thereon at
the rate per annum equal to the daily average Federal Funds Effective Rate. Nothing herein shall
be deemed to limit the rights of the Administrative Agent or any Lender against the Borrower.

          2.12 Requirements of Law.

          (a) If the adoption of or any change in any Requirement of Law or in the interpretation or
application thereof or compliance by any Lender with any request or directive (whether or not
having the force of law) from any central bank or other Governmental Authority made subsequent to
the date hereof:

     (i) shall subject any Lender to any tax of any kind whatsoever with respect to
this Agreement or any Eurodollar Loan made by it, or change the basis of taxation of
payments to such Lender in respect thereof (except for Non-Excluded Taxes covered by
Section 2.13 and changes in the rate of tax on the overall net income of such
Lender);

36

 

     (ii) shall impose, modify or hold applicable any reserve, special deposit,
compulsory loan or similar requirement against assets held by, deposits or other
liabilities in or for the account of, advances, loans or other extensions of credit
by, or any other acquisition of funds by, any office of such Lender that is not
otherwise included in the determination of the Eurodollar Rate; or

     (iii) shall impose on such Lender any other condition;

and the result of any of the foregoing is to increase the cost (other than taxes) to such Lender,
by an amount that such Lender deems to be material, of converting into, continuing or maintaining
Eurodollar Loans, or to reduce any amount receivable hereunder in respect thereof, then, in any
such case, the Borrower shall promptly pay such Lender, after the Borrower is provided with written
notice thereof and the notice referred to in Section 2.12(c) below, any additional amounts
necessary to compensate such Lender for such increased cost or reduced amount receivable. If any
Lender becomes entitled to claim any additional amounts pursuant to this paragraph, it shall
promptly notify the Borrower (with a copy to the Administrative Agent) of the event by reason of
which it has become so entitled.

          (b) If any Lender shall have determined that the adoption of or any change in any Requirement
of Law regarding capital adequacy or in the interpretation or application thereof or compliance by
such Lender or any corporation controlling such Lender with any request or directive regarding
capital adequacy (whether or not having the force of law) from any Governmental Authority made
subsequent to the date hereof shall have the effect of reducing the rate of return on such Lender’s
or such corporation’s capital as a consequence of its obligations hereunder to a level below that
which such Lender or such corporation could have achieved but for such adoption, change or
compliance (taking into consideration such Lender’s or such
corporation’s policies with respect to capital adequacy) by an amount deemed by such Lender to
be material, then from time to time, after submission by such Lender to the Borrower (with a copy
to the Administrative Agent) of a written request therefor, the Borrower shall pay to such Lender
such additional amount or amounts as will compensate such Lender or such corporation for such
reduction.

          (c) A certificate as to any additional amounts payable pursuant to this Section 2.12 submitted
by any Lender to the Borrower (with a copy to the Administrative Agent) shall be conclusive in the
absence of manifest error. Notwithstanding anything to the contrary in this Section 2.12, the
Borrower shall not be required to compensate a Lender pursuant to this Section 2.12 for any amounts
incurred more than nine months prior to the date that such Lender notifies the Borrower of such
Lender’s intention to claim compensation therefor; provided that, if the circumstances giving rise
to such claim have a retroactive effect, then such nine-month period shall be extended to include
the period of such retroactive effect. The obligations of the Borrower pursuant to this Section
2.12 shall survive the termination of this Agreement and the payment of the Loans and all other
amounts payable hereunder.

          2.13 Taxes.

          (a) All payments made by the Borrower under this Agreement shall be made free and clear of,
and without deduction or withholding for or on account of, any present or

37

 

future income, stamp or
other taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now or hereafter
imposed, levied, collected, withheld or assessed by any Governmental Authority, excluding net
income taxes and franchise taxes (imposed in lieu of net income taxes) imposed on the
Administrative Agent or any Lender as a result of a present or former connection between the
Administrative Agent or such Lender and the jurisdiction of the Governmental Authority imposing
such tax or any political subdivision or taxing authority thereof or therein (other than any such
connection arising solely from the Administrative Agent or such Lender having executed, delivered
or performed its obligations or received a payment under, or enforced, this Agreement or any other
Loan Document). If any such non-excluded taxes, levies, imposts, duties, charges, fees, deductions
or withholdings (“Non-Excluded Taxes”) or Other Taxes are required to be withheld from any
amounts payable to the Administrative Agent or any Lender hereunder, the amounts so payable to the
Administrative Agent or such Lender shall be increased to the extent necessary to yield to the
Administrative Agent or such Lender (after payment of all Non-Excluded Taxes and Other Taxes)
interest or any such other amounts payable hereunder at the rates or in the amounts specified in
this Agreement, provided, however, that the Borrower shall not be required to increase any such
amounts payable to the Administrative Agent or any Lender with respect to any Non-Excluded Taxes
(i) that are attributable to such Lender’s failure to comply with the requirements of paragraph (d)
or (e) of this Section or (ii) that are attributable to a change in such Lender’s tax residence,
change such Lender’s documentation provided in paragraph (d) or (e) of this Section 2.13 or to a
change in other circumstances of such Lender from the date that such Lender became a party to this
Agreement or (iii) that are withholding taxes imposed on amounts payable to such Lender that were
required to be imposed with respect to payments made to such Lender under applicable law existing
at the time that such Lender became a party to this Agreement.

          (b) In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority
in accordance with applicable law.

          (c) Whenever any Non-Excluded Taxes or Other Taxes are payable by the Borrower, as promptly as
possible thereafter the Borrower shall send to the Administrative Agent for its own account or for
the account of the relevant Lender, as the case may be, a certified copy of an original official
receipt received by the Borrower showing payment thereof. If the Borrower fails to pay any
Non-Excluded Taxes or Other Taxes when due to the appropriate taxing authority or fails to remit to
the Administrative Agent the required receipts or other required documentary evidence, the Borrower
shall indemnify the Administrative Agent and the Lenders for any incremental taxes, interest or
penalties that may become payable by the Administrative Agent or any Lender as a result of any such
failure.

          (d) Each Lender (or Transferee) that is not a “U.S. Person” as defined in Section 7701(a)(30)
of the Code (a “Non U.S. Lender”) shall deliver to the Borrower and the Administrative
Agent (or, in the case of a Participant, to the Lender from which the related participation shall
have been purchased) two copies of either U.S. Internal Revenue Service Form W-8BEN or Form W-8ECI,
or, in the case of a Non U.S. Lender claiming exemption from U.S. federal withholding tax under
Section 871(h) or 881(c) of the Code with respect to payments of “portfolio interest”, a statement
substantially in the form of Exhibit I and a Form W-8BEN, or any subsequent versions thereof or
successors thereto, properly completed and duly executed by such Non U.S. Lender claiming complete
exemption from, or a reduced rate of, U.S.

38

 

federal withholding tax on all payments by the Borrower
under this Agreement and the other Loan Documents. Such forms shall be delivered by each Non U.S.
Lender on or before the date it becomes a party to this Agreement (or, in the case of any
Participant, on or before the date such Participant purchases the related participation). In
addition, each Non U.S. Lender shall deliver such forms promptly upon the obsolescence or
invalidity of any form previously delivered by such Non U.S. Lender. Each Non-U.S. Lender shall
promptly notify the Borrower at any time it determines that it is no longer in a position to
provide any previously delivered certificate to the Borrower (or any other form of certification
adopted by the U.S. taxing authorities for such purpose). Notwithstanding any other provision of
this paragraph, a Non U.S. Lender shall not be required to deliver any form pursuant to this
paragraph that such Non U.S. Lender is not legally able to deliver but in which case such Non-U.S.
Lender shall not be entitled to the benefits of this Section 2.13.

          (e) A Lender that is entitled to an exemption from or reduction of non-U.S. withholding tax
under the law of the jurisdiction in which the Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Administrative Agent), at the time or times prescribed by applicable
law or reasonably requested by the Borrower, such properly completed and executed documentation
prescribed by applicable law as will permit such payments to be made without withholding or at a
reduced rate, provided that such Lender is legally entitled to complete, execute and deliver such
documentation and in such Lender’s judgment such completion, execution or submission would not
materially prejudice the legal position of such Lender but, if such Lender does not complete,
execute and deliver such documentation, such Lender shall not be entitled to the benefits of this
Section 2.13.

          (f) If the Administrative Agent or any Lender determines, in its sole discretion, that it has
received a refund of any Non-Excluded Taxes or Other Taxes as to which it has been indemnified by
the Borrower or with respect to which the Borrower has paid additional amounts pursuant to this
Section 2.13, it shall pay over such refund to the Borrower (but only to the extent of indemnity
payments made, or additional amounts paid, by the Borrower under this Section 2.13 with respect to
the Non-Excluded Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket
expenses of the Administrative Agent or such Lender and without interest (other than any interest
paid by the relevant Governmental Authority with respect to such refund); provided that the
Borrower, upon the request of the Administrative Agent or such Lender, agrees to repay the amount
paid over to the Borrower (plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) to the Administrative Agent or such Lender in the event the Administrative
Agent or such Lender is required to repay such refund to such Governmental Authority. This
paragraph shall not be construed to require the Administrative Agent or any Lender to make
available its tax returns (or any other information relating to its taxes which it deems
confidential) to the Borrower or any other Person.

          (g) The agreements in this Section 2.13 shall survive the termination of this Agreement and
the payment of the Loans and all other amounts payable hereunder.

          2.14 Indemnity. The Borrower agrees to indemnify each Lender for, and to hold each
Lender harmless from, any loss or expense that such Lender may sustain or incur as a consequence of
(a) default by the Borrower in making a conversion into or continuation of

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Eurodollar Loans after
the Borrower has given a notice requesting the same in accordance with the provisions of this
Agreement, (b) default by the Borrower in making any prepayment of or conversion from Eurodollar
Loans after the Borrower has given a notice thereof in accordance with the provisions of this
Agreement or (c) the making of a prepayment of Eurodollar Loans on a day that is not the last day
of an Interest Period with respect thereto. Such indemnification may include an amount equal to
the excess, if any, of (i) the amount of interest that would have accrued on the amount so prepaid,
or not so borrowed, converted or continued, for the period from the date of such prepayment or of
such failure to borrow, convert or continue to the last day of such Interest Period (or, in the
case of a failure to borrow, convert or continue, the Interest Period that would have commenced on
the date of such failure) in each case at the applicable rate of interest for such Loans provided
for herein (excluding, however, the Applicable Margin included therein, if any) over (ii) the
amount of interest (as reasonably determined by such Lender) that would have accrued to such Lender
on such amount by placing such amount on deposit for a comparable period with leading banks in the
interbank eurodollar market. A certificate as to any amounts payable pursuant to this Section 2.14
submitted to the Borrower by any Lender shall be conclusive in the absence of manifest error. This
covenant shall survive the termination of this Agreement and the payment of the Loans and all other
amounts payable hereunder.

SECTION 3. REPRESENTATIONS AND WARRANTIES

          To induce the Administrative Agent and the Lenders to enter into this Agreement, the Borrower
hereby represents and warrants on the Closing Date to the Administrative Agent and each Lender
that:

          3.1 Financial Condition.

          (a) The unaudited projected pro forma consolidated balance sheet of the Borrower and its
consolidated Subsidiaries as at December 31, 2007 (including the notes thereto) (the “Pro Forma
Balance Sheet”), copies of which have heretofore been furnished to each Lender, has been
prepared giving effect (as if such events had occurred on such date) to (i) the consummation of the
Reorganization Plan, (ii) the Senior Subordinated Notes to be issued on the Closing Date, (iii) the
loans to be made under the Exit Facility Agreement on the Closing Date, (iv) the Loans deemed to
have been made on the Closing Date and (iv) the payment of fees and expenses in connection with the
foregoing. The Pro Forma Balance Sheet has been prepared based on the information available to the
Borrower as of the date of delivery thereof, and presents fairly in all material respects on a pro
forma basis the estimated financial position of Borrower and its consolidated Subsidiaries as at
December 31, 2007, assuming that the events specified in the preceding sentence had actually
occurred at such date.

          (b) The audited consolidated balance sheets of the Borrower and its consolidated Subsidiaries
as at December 31, 2006 and December 31, 2005, and the related consolidated statements of income
and of cash flows for the fiscal years ended on such dates, reported on by and accompanied by an
unqualified report from Ernst & Young LLP, present fairly the consolidated financial condition of
the Group Members as at such date, and the consolidated results of its operations and its
consolidated cash flows for the respective fiscal years then ended. The unaudited consolidated
balance sheet of the Group Members as at

40

 

September 30, 2007, and the related unaudited consolidated
statements of income and cash flows for the nine-month period ended on such date, present fairly
the consolidated financial condition of the Group Members as at such date, and the consolidated
results of its operations and its consolidated cash flows for the nine-month period then ended
(subject to normal year end audit adjustments). All such financial statements, including the
related schedules and notes thereto, have been prepared in accordance with GAAP applied
consistently throughout the periods involved (except as approved by the aforementioned firm of
accountants and disclosed therein). No Group Member has any material Guarantee Obligations,
contingent liabilities and liabilities for taxes, or any long term leases or unusual forward or
long term commitments, including any interest rate or foreign currency swap or exchange transaction
or other obligation in respect of derivatives, that are not (x) reflected in the most recent
financial statements referred to in this paragraph, (y) Swap Agreements permitted by Section 6.12
or (z) the Borrower’s contingent obligation to make a loan to the “Trust” (as defined in the
Reorganization Plan) in an aggregate amount of $140,000,000, in accordance with Section 8.22 of the
Reorganization Plan.

          3.2 No Change. Since December 31, 2006, there has been no development or event that
has had a Material Adverse Effect.

          3.3 Existence; Compliance With Law. Each Loan Party (a) is duly organized, validly existing and in good standing under
the laws
of the jurisdiction of its organization, (b) has the power and authority, and the legal right, to
own and operate its property, to lease the property it operates as lessee and to conduct the
business in which it is currently engaged, (c) is duly qualified as a foreign corporation and in
good standing under the laws of each jurisdiction where its ownership, lease or operation of
property or the conduct of its business requires such qualification except to the extent the
failure to so qualify or be in good standing could not, in the aggregate, reasonably be expected to
have a Material Adverse Effect, and (d) is in compliance with all Requirements of Law except to the
extent that the failure to comply therewith could not, in the aggregate, reasonably be expected to
have a Material Adverse Effect.

          3.4 Power; Authorization; Enforceable Obligations. Each Loan Party has the power and
authority, and the legal right, to make, deliver and perform the Loan Documents to which it is a
party. Each Loan Party has taken all necessary organizational action to authorize the execution,
delivery and performance of the Loan Documents to which it is a party and, in the case of the
Borrower, to authorize the extensions of credit on the terms and conditions of this Agreement. No
consent or authorization of, filing with, notice to or other act by or in respect of, any
Governmental Authority or any other Person is required in connection with the Reorganization Plan
and the extensions of credit hereunder or with the execution, delivery, performance, validity or
enforceability of this Agreement or any of the Loan Documents, except (i) consents, authorizations,
filings and notices described in Schedule 3.4, which consents, authorizations, filings and notices
have been obtained or made and are in full force and effect and (ii) the filings referred to in
Section 3.14. Each Loan Document has been duly executed and delivered on behalf of each Loan Party
party thereto. This Agreement constitutes, and each other Loan Document upon execution and
delivery will constitute, a legal, valid and binding obligation of each Loan Party party thereto,
enforceable against each such Loan Party in accordance with its terms, except as enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors’ rights

41

 

generally and by general equitable principles
(whether enforcement is sought by proceedings in equity or at law).

          3.5 No Legal Bar. The execution, delivery and performance of this Agreement and the
other Loan Documents, and the Loans deemed made hereunder will not violate any Requirement of Law
or any Contractual Obligation of any Loan Party and will not result in, or require, the creation or
imposition of any Lien on any of their respective properties or revenues pursuant to any
Requirement of Law or any such Contractual Obligation (other than the Liens created by the Security
Documents).

          3.6 Litigation. Except as disclosed on Schedule 3.6, no litigation, investigation or
proceeding of or before any arbitrator or Governmental Authority is pending or, to the knowledge of
the Borrower, threatened against any Group Member or against any of their respective properties or
revenues (a) that calls into question the validity or enforceability of the Loan Documents or that
seeks to enjoin any of the transactions contemplated thereby, or (b) that could reasonably be
expected to have a Material Adverse Effect.

          3.7 No Default. No Group Member is in default under any of its Contractual
Obligations in any respect that could reasonably be expected to have a Material Adverse Effect. No
Default or Event of Default has occurred and is continuing.

          3.8 Ownership of Property; Liens. Each Loan Party has title in fee simple to, or a
valid leasehold interest in, all its real property subject to the Mortgages, and good title to, or
a valid leasehold interest in, all its material other property, and none of such property is
subject to any Lien except as permitted by Section 6.3.

          3.9 Intellectual Property. Each Loan Party owns, or is licensed to use, all
Intellectual Property necessary for the conduct of its business as currently conducted. No
material claim has been asserted and is pending by any Person challenging or questioning the use of
any Intellectual Property or the validity or effectiveness of any Intellectual Property, nor does
the Borrower know of any valid basis for any such claim. To the knowledge of the Borrower, the use
of Intellectual Property by each Loan Party does not infringe on the rights of any Person in any
material respect.

          3.10 Taxes. Each Group Member has filed or caused to be filed all Federal, material
state and other material tax returns that are required to be filed and has paid all taxes shown to
be due and payable on said returns or on any material assessments made against it or any of its
property and all other material taxes, fees or other charges imposed on it or any of its property
by any Governmental Authority (other than any the amount or validity of which are currently being
contested in good faith by appropriate proceedings and with respect to which reserves in conformity
with GAAP have been provided on the books of the relevant Group Member); no material tax Lien has
been filed with respect to any Group Member, and, to the knowledge of the Borrower, no material
claim is being asserted against any Group Member, with respect to any such tax, fee or other
charge.

          3.11 Investment Company Act; Other Regulations. No Loan Party is an “investment
company”, or a company “controlled” by an “investment company”, within the

42

 

meaning of the
Investment Company Act of 1940, as amended. No Loan Party is subject to regulation under any
Requirement of Law (other than Regulation X of the Board) that limits its ability to incur
Indebtedness.

          3.12 Subsidiaries. Schedule 3.12 sets forth the name and jurisdiction of incorporation of each Subsidiary and,
as to each such Subsidiary, the percentage of each class of Capital Stock owned by any Loan Party.
There are no outstanding subscriptions, options, warrants, calls, rights or other agreements or
commitments (other than stock options granted to employees or directors and directors’ qualifying
shares) of any nature relating to any Capital Stock of the Borrower or any other Loan Party, except
as created by the Loan Documents or pursuant to the Reorganization Plan.

          3.13 Accuracy of Information, etc. No statement or information contained in this
Agreement, any other Loan Document or any other document, certificate or statement furnished by or
on behalf of any Loan Party to the Administrative Agent or the Lenders, or any of them, for use in
connection with the transactions contemplated by this Agreement or the other Loan Documents (when
taken as a whole together with the Borrower’s public filings with the SEC), contained as of the
date such statement, information, document or certificate was so furnished, in light of the
circumstances under which they were made, any untrue statement of material fact or omitted to state
a material fact necessary to make the statements contained herein or therein not materially
misleading. Any projections and pro forma financial information delivered in connection herewith
are based upon good faith estimates and assumptions believed by management of the Borrower to be
reasonable at the time made, it being recognized by the Lenders that such financial information as
it relates to future events is not to be viewed as fact and that actual results during the period
or periods covered by such financial information may differ from the projected results set forth
therein by a material amount.

          3.14 Security Documents.

          (a) Each of the Security Documents (other than the Mortgages) is effective to create in favor
of the Collateral Trustee a legal, valid and enforceable security interest in the Collateral
described therein for the benefit of the Lenders. When the actions described in Schedule 3.14(a)
in respect of each such Security Document have been taken, the Collateral Trustee shall have,
pursuant to each such Security Document, a fully perfected Lien on, and security interest in, all
right, title and interest of the Loan Parties in such Collateral, as security for the “Second
Priority Obligations” described therein.

          (b) Each of the Mortgages is effective to create in favor of the Collateral Trustee, for the
benefit of the Lenders, a legal, valid and enforceable Lien on the Mortgaged Properties described
therein and proceeds thereof, and when each Mortgage is filed in the offices specified on Schedule
3.14(b), the Collateral Trustee shall have, pursuant to such Mortgage, a fully perfected Lien on,
and security interest in, all right, title and interest of the Loan Parties in the applicable
Mortgaged Properties described therein, as security for the “Second Priority Obligations” described
therein. Schedule 1.1E lists, as of the Closing Date, each parcel of owned real property and each
leasehold interest in real property located in the United States and held by the Borrower or any
Loan Party that is a Domestic Subsidiary that has a value, in the reasonable opinion of the
Borrower, in excess of $5,000,000.

43

 

          3.15 Regulation H. No Mortgage encumbers improved real property that is located in an
area having special flood hazards and in which flood insurance has been made available under the
National Flood Insurance Act of 1968, other than properties for which the Borrower has satisfied
the requirements of Section 4.1(q)(iv).

          3.16 Environmental Matters. Other than as set forth on Schedule 3.16 and exceptions
to any of the following that, in the aggregate, could not reasonably be expected to result in a
Material Environmental Loss:

          (a) all Group Members: (i) are, and within the period of all applicable statutes of
limitation have been, in compliance with all applicable Environmental Laws; (ii) hold all
Environmental Permits (each of which is in full force and effect) required for any of their current
or intended operations or for any property owned, leased, or otherwise operated by any of them;
(iii) are, and within the period of all applicable statutes of limitation have been, in compliance
with all of their Environmental Permits; and (iv) reasonably believe that: each of their
Environmental Permits will be timely renewed and complied with, without material expense; any
additional Environmental Permits that may be required of any of them will be timely obtained and
complied with, without material expense; and compliance with any Environmental Law that is or is
expected to become applicable to any of them will be timely attained and maintained, without
material expense;

          (b) Materials of Environmental Concern are not present at, on, under, in or about any real
property now or formerly owned, leased or operated by any Group Member or at any other location
(including without limitation, any location to which Materials of Environmental Concern have been
sent for re-use or recycling or for treatment, storage, or disposal) which could reasonably be
expected to (i) give rise to liability of any Group Member under any applicable Environmental Law
or otherwise result in costs to any Group Member, or (ii) interfere with any Group Member’s
continued operations, or (iii) impair the fair saleable value of any real property owned or leased
by a Group Member.;

          (c) there is no judicial, administrative or arbitral proceeding (including any notice of
violation or alleged violation) under or relating to any Environmental Law to which any Group
Member is, or to the knowledge of any Group Member will be, named as a party that is pending or, to
the knowledge of any Group Member, threatened; and to the knowledge of any Group Member, there are
no judicial, administrative, or arbitral proceedings under or relating to any Environmental Law
pending or threatened against any Person other than a Group Member that could reasonably be
expected to affect a Group Member;

          (d) no Group Member has entered into or agreed to any consent decree, order, or settlement or
other agreement, or is subject to any judgment, decree, or order or other agreement, in any
judicial, administrative, arbitral, or other forum for dispute resolution, relating to compliance
with or liability under any Environmental Law;

          (e) no Group Member has received any written request for information, or been notified that it
is a potentially responsible party under or relating to the federal Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as amended,

44

 

or any similar Environmental Law, or
with respect to any Materials of Environmental Concern; and

          (f) no Group Member has assumed or retained, by contract or operation of law, any liabilities
of any kind, fixed or contingent, known or unknown, under any Environmental Law or with respect to
any Materials of Environmental Concern.

          3.17 Certain Documents. The Borrower has delivered to the Administrative Agent a
complete and correct copy of the Senior Subordinated Note Indenture, the Exit Facility Agreement
and any Additional Liquidity Facility Agreement, including any amendments, supplements or
modifications with respect to any of the foregoing.

SECTION 4. CONDITIONS PRECEDENT

          4.1 Conditions to Closing Date. The agreement of each Lender to enter into this
Agreement is subject to the satisfaction or waiver, prior to or concurrently with entering into
this Agreement on the Closing Date, of the following conditions precedent:

          (a) Loan Agreement; Security Documents. The Administrative Agent shall have received
(i) this Agreement, executed and delivered by the Administrative Agent and the Borrower, (ii) the
Collateral Agreement, executed and delivered by the Borrower and each applicable Guarantor, (iii)
an Acknowledgement and Consent in the form attached to the Collateral Agreement, executed and
delivered by each Issuer (as defined therein), if any, that is not a Loan Party (unless otherwise
agreed by the administrative agent under the Exit Facility), (iv) the Domestic Subsidiary
Guarantee, executed by each applicable Guarantor, (v) each Foreign Subsidiary Guarantee, executed
and delivered by each applicable Guarantor, (vi) each Foreign Pledge Agreement, executed and
delivered by each applicable Loan Party and (viii) the Collateral Trust Agreement, executed by each
party thereto.

          (b) DIP Facility. The Administrative Agent shall have received reasonably
satisfactory evidence that (i) the commitments under the DIP Facility have been terminated, all
letters of credit issued thereunder (other than those letters of credit issued under the DIP
Facility (if any) which shall be deemed issued under the Exit Facility) shall have expired or been
cancelled, and all amounts outstanding thereunder (including, without limitation, all fees accrued
but unpaid thereunder to the Closing Date, whether or not then payable under the terms thereof)
have been repaid in full (which termination and repayment may be contemporaneous with the
satisfaction of the conditions under this Section and the application of proceeds of any Borrowings
and the issuance of any letters of credit under the Exit Facility Agreement to occur on the Closing
Date); and (ii) satisfactory arrangements shall have been made for the termination of all Liens and
guarantees granted in connection therewith.

          (c) [Reserved].

          (d) Exit Facility. The Administrative Agent shall have received a certificate
executed by a Responsible Officer of the Borrower certifying that all conditions precedent to the
effectiveness of the Exit Facility Agreement shall have been satisfied or waived in accordance with
its terms.

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          (e) Senior Subordinated Notes Indenture. The Administrative Agent shall have received
reasonably a certificate executed by a Responsible Officer of the Borrower certifying that all
conditions precedent to the effectiveness of the Senior Subordinated Notes Indenture shall have
been satisfied or waived in accordance with its terms and the Senior Subordinated Notes shall have
been issued.

          (f) Intercreditor Arrangements. The Administrative Agent shall have received the
Intercreditor Agreement, executed and delivered by all parties thereto.

          (g) Reorganization Plan. The Effective Date shall have occurred.

          (h) Pro Forma Balance Sheet; Financial Statements. The Lenders shall have received
(i) the Pro Forma Balance Sheet, (ii) audited consolidated financial statements of the Group
Members for the 2006 and 2005 fiscal years and (iii) unaudited interim consolidated financial
statements of the Group Members for each fiscal month and quarter ended after the date of the
latest applicable financial statements delivered pursuant to clause (ii) of this paragraph as to
which such financial statements are available.

          (i) Approvals. All governmental and third party approvals (including consents from
landlords of real property leased by the Loan Parties in the United States at which Inventory
having a value in excess of $10,000,000 is located as specified on Schedule 4.1(i)
(provided, however, that the Borrower shall only be required to exercise
commercially reasonable efforts to obtain such landlord consents)) necessary in connection with
this Agreement and the Reorganization Plan, the continuing operations of the Loan Parties and the
transactions contemplated hereby shall have been obtained and be in full force and effect, and all
applicable waiting periods shall have expired without any action being taken or threatened by any
competent authority that would restrain, prevent or otherwise impose adverse conditions on the
Reorganization Plan or the transactions contemplated hereby.

          (j) Lien Searches. The Administrative Agent shall have received the results of a
recent Lien search in each of the domestic jurisdictions where (x) the Loan Parties are organized
and (y) real estate of the Loan Parties is located (which Lien searches may be copies of such
search delivered as a condition to the closing under the Exit Facility), and such search shall
reveal no liens on any of the assets of the Loan Parties except for Liens permitted by Section 6.3
or discharged on or prior to the Closing Date pursuant to documentation reasonably satisfactory to
the Administrative Agent.

          (k) Environmental Reports. The Administrative Agent shall have received any
environmental reports regarding environmental matters affecting any Group Member which are
delivered by any Group Member in connection with the Exit Facility.

          (l) Fees. The Lenders and the Administrative Agent shall have received all fees
required to be paid, and all expenses for which invoices have been presented (including the
reasonable fees and expenses of legal counsel and financial advisors), pursuant to the Prepetition
Credit Agreement, the final order in respect of the DIP Facility, this Agreement, the other Loan
Documents, and the Confirmation Order (which receipt may be contemporaneous with, or so long as on
the Effective Date, subsequent to, the delivery of the other closing deliverables under

46

 

this
Section 4.1 and the application of any borrowings and issuance of any letters of credit under the
Exit Financing to occur on the Effective Date).

          (m) Supporting Documents. The Administrative Agent shall have received for each of
the Loan Parties:

     (i) a copy of such Loan Party’s Organizational Documents, as amended up to and
including the Closing Date, certified as of a recent date by the applicable
Governmental Authority of such Loan Party’s jurisdiction incorporation, organization
or formation;

     (ii) (x) with respect to the Borrower and each Loan Party that is a Domestic
Subsidiary, a good standing certificate from the applicable Governmental Authority
of such Loan Party’s jurisdiction of incorporation, organization or formation and
from the State of Michigan (to the extent such Loan Party is qualified to do
business in the State of Michigan), each dated a recent date prior to the Closing
Date and (y) with respect to the Borrower, recent evidence of its qualification to
do business as a foreign corporation in each State of the United States of America;

     (iii) with respect to any Loan Party that is a Foreign Subsidiary, such
customary evidence of its legal existence, its power and authority to enter into the
Loan Documents to which it is a party and the incumbency and signatures of its
officers or other representatives and such other documents or evidence as the
administrative agent under the Exit Facility requests;

     (iv) signature and incumbency certificates of the officers of such Loan Party
executing the Loan Documents to which it is a party, dated as of the Closing Date;

     (v) duly adopted resolutions of the board of directors or similar governing
body of such Loan Party approving and authorizing the execution, delivery and
performance of this Agreement and the other Loan Documents to which it is a party or
by which it or its assets may be bound as of the Closing Date, certified as of the
Closing Date by its secretary or assistant secretary as being in full force and
effect without modification or amendment; and

     (vi) such other similar documents as the Administrative Agent may reasonably
request.

          (n) Opinion of Counsel. The Administrative Agent and the Lenders shall have received
(i) the favorable written opinion of counsel to the Loan Parties substantially in the
form of Exhibit H and (ii) such other legal opinions as are also provided to the lenders under
the Exit Facility (with such modifications to make such opinions applicable to this Agreement and
the other Loan Documents), in each case addressed to the Administrative Agent and the Lenders.

          (o) Pledged Stock; Stock Powers; Pledged Notes. The Collateral Trustee shall have
received (i) the certificates representing the shares of Capital Stock pledged pursuant to the

47

 

Collateral Agreement and each Foreign Pledge Agreement (to the extent certificated), together with
an undated stock power for each such certificate executed in blank by a duly authorized officer of
the pledgor thereof (or such other instrument of transfer required under local law) and (ii) each
promissory note (if any) pledged to the Collateral Trustee pursuant to the Collateral Agreement and
each Foreign Pledge Agreement endorsed (without recourse) in blank (or accompanied by an executed
transfer form in blank) by the pledgor thereof.

          (p) Filings, Registrations and Recordings. Each document (including any Uniform
Commercial Code financing statement) required by the Security Documents or under law or reasonably
requested by the Collateral Trustee or the Administrative Agent to be filed, registered or recorded
in order to create in favor of the Collateral Trustee for the benefit of the Lenders, a perfected
Lien on the Collateral described therein, prior and superior in right to any other Person (other
than with respect to Liens expressly permitted by Section 6.3), shall be in proper form for filing,
registration or recordation.

          (q) Mortgages. (i) The Collateral Trustee and the Administrative Agent shall have
received a Mortgage with respect to each Mortgaged Property, executed and delivered by a duly
authorized officer of each party thereto.

     (ii) If requested by the Administrative Agent at least thirty (30) days prior
to the Closing Date, the Administrative Agent shall have received, and the title
insurance company issuing the policy referred to in clause (iii) below (the “Title
Insurance Company”) shall have received, an as-built land survey of the sites of the
Mortgaged Properties dated within three (3) years of the Closing Date, by an
independent professional licensed land surveyor reasonably satisfactory to the
Administrative Agent and the Title Insurance Company, which surveys shall be made in
accordance with the Minimum Standard Detail Requirements for Land Title Surveys
jointly established and adopted by the American Land Title Association (“ALTA”) and
the American Congress on Surveying and Mapping in 1992, and, without limiting the
generality of the foregoing, there shall be surveyed and shown on such surveys the
following: (A) the locations on such sites of all the buildings, structures and
other improvements and the established building setback lines; (B) the lines of
streets abutting the sites and width thereof; (C) all access and other easements
appurtenant to the sites; (D) all roadways, paths, driveways, easements,
encroachments and overhanging projections and similar encumbrances affecting the
site, whether recorded, apparent from a physical inspection of the sites or
otherwise known to the surveyor; (E) any encroachments on any adjoining property by
the building structures and improvements on the sites; and (F) the flood zone
designations, if any, in which the Mortgaged Properties are located (provided that
if the Administrative Agent determines that it is reasonable to do so, the
Administrative Agent may accept a
survey in respect of any parcel of Mortgaged Property not conforming to the
requirements specified above in this clause (ii)).

     (iii) The Administrative Agent shall have received in respect of each Mortgaged
Property a mortgagee’s title insurance policy (or policies) or marked up
unconditional binder for such insurance. Each such policy shall (A) be in an

48

 

amount
reasonably satisfactory to the Administrative Agent (not to exceed the fair market
value of such property); (B) insure that the Mortgage insured thereby creates a
valid second Lien on such Mortgaged Property free and clear of all defects and
encumbrances, except as permitted by Section 6.03 or as is otherwise reasonably
acceptable to the Administrative Agent; (C) name the Collateral Trustee or the
Administrative Agent for the benefit of the Lenders as the insured thereunder; (D)
be in the form of ALTA Loan Policy — 1970 (Amended 10/17/70 and 10/17/84) (or
reasonably acceptable equivalent policies); (E) contain such endorsements and
affirmative coverage as the Administrative Agent may reasonably request; and (F) be
issued by title companies reasonably satisfactory to the Administrative Agent
(including any such title companies acting as co-insurers or reinsurers, at the
option of the Administrative Agent) (provided that if the Administrative Agent
determines that it is reasonable to do so, the Administrative Agent may accept a
title insurance policy in respect of any parcel of Mortgaged Property not conforming
to the requirements specified above in this clause (iii)). The Administrative Agent
shall have received evidence satisfactory to it that all premiums in respect of each
such policy, all charges for mortgage recording tax, and all related expenses, if
any, have been paid.

     (iv) If requested by the Administrative Agent at least thirty (30) days prior
to the Closing Date with respect to any Mortgaged Property which includes a material
improvement located within an area designated as flood hazard zone, the
Administrative Agent shall have received (A) a policy of flood insurance that (1)
covers any parcel of improved real property that is encumbered by any Mortgage that
is located in an area that has been identified by the Secretary of Housing and Urban
Development as an area having special flood hazards and in which flood insurance has
been made available under the National Flood Insurance Act of 1968, (2) is written
in an amount not less than the outstanding principal amount of the indebtedness
secured by such Mortgage that is reasonably allocable to such real property or the
maximum limit of coverage made available with respect to the particular type of
property under the National Flood Insurance Reform Act of 1994, whichever is less,
and (3) has a term or series of terms ending not later than the maturity of the
Indebtedness secured by such Mortgage and (B) confirmation that the Borrower has
received the notice required pursuant to Section 208(e)(3) of Regulation H of the
Board.

     (v) The Administrative Agent shall have received a copy of all recorded
documents referred to, or listed as exceptions to title in, the title policy or
policies referred to in clause (iii) above and a copy of all other material
documents in the possession of the any Loan Party affecting the Mortgaged
Properties, in each case to the extent required by the Administrative Agent.
Notwithstanding the foregoing, with respect to any Mortgaged Property
constituting a leasehold interest, the obligations of the Borrower to deliver the
items described in this Section 4.01(q) are subject to the Borrower obtaining any
consents, estoppels or other instruments or documents from third parties which are
necessary in order for the Borrower to comply with its obligations in this

49

 

Section
4.01(q); provided that the Borrower agrees to exercise reasonable efforts to obtain
any such consents, estoppels or other instruments and documents.

          (r) [Reserved].

          (s) Insurance. The Administrative Agent shall have received evidence that all
insurance required by Section 5.5 is in effect.

          (t) Confirmation Order. The Administrative Agent shall have received a copy of the
Confirmation Order, certified by a Responsible Officer to be a true, complete and correct copy of
such document, which (i) shall be in full force and effect and shall not have been stayed,
reversed, modified or amended and (ii) shall approve and authorize the transactions contemplated by
this Agreement, the other Loan Documents and the Reorganization Plan and otherwise shall not be
inconsistent with the provisions hereof and thereof.

          (u) Prepetition Letters of Credit. With respect to each letter of credit issued under
the Prepetition Credit Agreement and outstanding on the Effective Date, such letter of credit shall
have expired or been cancelled or replaced with letters of credit issued under the Exit Facility
Agreement.

          (v) Representations and Warranties. Each of the representations and warranties made
by any Loan Party in or pursuant to the Loan Documents shall be true and correct on and as of the
Closing Date with the same effect as if made on and as of such date except to the extent such
representations and warranties expressly relate to an earlier date, in which case they shall be
true and correct on and as of such earlier date.

          (w) No Default. No Default or Event of Default shall have occurred and be continuing
on the Closing Date or after giving effect to the Loans deemed made on the Closing Date.

SECTION 5. AFFIRMATIVE COVENANTS

          The Borrower hereby agrees that so long as any Loan or other amount is owing to any Lender or
the Administrative Agent hereunder, the Borrower shall and shall cause each of its Subsidiaries to:

          5.1 Financial Statements. Furnish to the Administrative Agent for delivery to the
Lenders:

          (a) as soon as available, but in any event within 120 days after the end of each fiscal year
of the Borrower, a copy of the audited consolidated balance sheet of the Borrower and its
consolidated Subsidiaries as at the end of such year and the related audited consolidated
statements of income and of cash flows for such year, setting forth in each case in
comparative form the figures for the previous year, reported on without a “going concern” or like
qualification or exception, or qualification arising out of the scope of the audit, by Ernst &
Young LLP or other independent certified public accountants of nationally recognized standing; and

50

 

          (b) as soon as available, but in any event not later than 60 days after the end of each of the
first three quarterly periods of each fiscal year of the Borrower, the unaudited consolidated
balance sheet of the Borrower and its consolidated Subsidiaries as at the end of such quarter and
the related unaudited consolidated statements of income and of cash flows for such quarter and the
portion of the fiscal year through the end of such quarter, setting forth in each case in
comparative form the figures for the previous year, certified by a Responsible Officer as being
fairly stated in all material respects (subject to normal year end audit adjustments).

All such financial statements shall be complete and correct in all material respects and shall be
prepared in reasonable detail and in accordance with GAAP applied (except as approved by such
accountants or officer, as the case may be, and disclosed in reasonable detail therein)
consistently throughout the periods reflected therein and with prior periods.

          5.2 Certificates; Other Information. Furnish to the Administrative Agent:

          (a) concurrently with the delivery of the financial statements referred to in Section 5.1(a),
a certificate of the independent certified public accountants reporting on such financial
statements stating that in making the examination necessary therefor no knowledge was obtained of
any Event of Default as a result of noncompliance with Section 6.1, except as specified in such
certificate;

          (b) concurrently with the delivery of any financial statements pursuant to Section 5.1, (i) a
certificate of a Responsible Officer stating that such Responsible Officer has obtained no
knowledge of any Default or Event of Default except as specified in such certificate and (ii) a
Compliance Certificate containing all information and calculations necessary for determining
compliance with Sections 6.1, 6.2(g), (n), (o), (q), (v), (x) and (z), 6.3(aa), 6.4(g), 6.5(d) and
(q), 6.7, 6.8(h), (j), (k), (t), (u) and (v), 6.11 and 6.18 of this Agreement as of the last day of
the fiscal quarter or fiscal year of the Borrower, as the case may be (it being understood that in
the case of annual financial statements, such Compliance Certificate shall include a calculation of
Adjusted Excess Cash Flow and Adjusted Positive EBITDA Variance for the fiscal year to which such
financial statements relate), (iii) to the extent not previously disclosed to the Administrative
Agent, a description of (x) any Indebtedness owed by any Loan Party to any Excluded Subsidiary, (y)
any Indebtedness permitted under Sections 6.2(g), (h), (j)(ii) or (q) and (z) any Guarantee
Obligation in respect of any Indebtedness permitted under Sections 6.2(g), (h) or (q) to the extent
the amount of such Guarantee Obligation as of the date of incurrence thereof exceeds $10,000,000,
in each case incurred since the date of the most recent report delivered pursuant to this clause
(iii) (or, in the case of the first such report so delivered, since the Closing Date) and (iv) to
the extent not previously disclosed to the Administrative Agent, a
description of any change in the jurisdiction of organization of any Loan Party since the date
of the most recent report delivered pursuant to this clause (iv) (or, in the case of the first such
report so delivered, since the Closing Date);

          (c) as soon as available, and in any event no later than February 28 of each fiscal year of
the Borrower, commencing with February 28, 2008, a detailed consolidated budget for such fiscal
year (including a projected consolidated balance sheet of the Group Members as at the end of such
fiscal year, the related consolidated statements of projected cash flow,

51

 

projected changes in
financial position and projected income and a description of the underlying assumptions applicable
thereto on a business segment basis) (collectively, the “Projections”);

          (d) as soon as available, and in any event no later than February 28 of each fiscal year of
the Borrower, commencing with February 28, 2008, a detailed consolidated strategic plan for such
fiscal year and each of the subsequent fiscal years of the Borrower, through and including the
fiscal year in which the Maturity Date falls (including a projected consolidated balance sheet of
the Group Members as at the end of each such fiscal year, the related consolidated statements of
projected cash flow, projected changes in financial position and projected income and a description
of the underlying assumptions applicable thereto on a business segment basis (collectively, the
“Strategic Plan”)), which Strategic Plan shall in each case be accompanied by a certificate of a
Responsible Officer stating that such Strategic Plan is based on reasonable estimates, information
and assumptions and that such Responsible Officer has no reason to believe that such Strategic Plan
is incorrect or misleading in any material respect;

          (e) as soon as reasonably practical prior to the effectiveness thereof, copies of
substantially final drafts of any proposed amendment, supplement, waiver or other modification with
respect to the Senior Subordinated Notes Indenture or the Exit Facility Agreement;

          (f) concurrently with the delivery of any financial statements pursuant to Section 5.1, a
report setting forth in reasonable detail all Permitted Asset Sales made and Net Cash Proceeds
received during the fiscal quarter most recently ended, any Reinvestment Notices delivered in such
fiscal quarter with respect to such Permitted Asset Sales and the Reinvestment Deferred Amount at
the end of such fiscal quarter, together with a reasonably detailed summary of the investment of
any Reinvestment Deferred Amount made during such fiscal quarter;

          (g) within 45 days after the end of each fiscal quarter of the Borrower, a narrative
discussion and analysis of the financial condition and results of operations of the Group Members
for such fiscal quarter and for the period from the beginning of the then current fiscal year to
the end of such fiscal quarter, as compared to the portion of the Projections covering such periods
and to the comparable periods of the previous year; provided that the foregoing may be
satisfied by delivery of the Borrower’s Annual Report on Form 10-K filed with the Securities and
Exchange Commission or the Borrower’s Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission, in each case for the applicable quarter; and

          (h) promptly, such additional financial and other information, or arrange such periodic
conference calls with the Borrower and its professionals, as the Administrative Agent may from time
to time reasonably request.

          5.3 Payment of Obligations. Pay, discharge or otherwise satisfy at or before maturity
or before they become delinquent, as the case may be, all its material obligations of whatever
nature, except where the amount or validity thereof is currently being contested in good faith by
appropriate proceedings and reserves in conformity with GAAP with respect thereto have been
provided on the books of the relevant Group Member.

52

 

          5.4 Maintenance of Existence; Compliance. (a)(i) Preserve, renew and keep in full
force and effect its organizational existence and (ii) take all reasonable action to maintain all
rights, privileges and franchises necessary or desirable in the normal conduct of its business,
except, in each case, as otherwise permitted by Section 6.4 and except, in the case of clause (ii)
above, to the extent that failure to do so could not reasonably be expected to have a Material
Adverse Effect; and (b) comply with all Contractual Obligations and Requirements of Law except to
the extent that failure to comply therewith could not, in the aggregate, reasonably be expected to
have a Material Adverse Effect.

          5.5 Maintenance of Property; Insurance. (a) Keep all property material to the
conduct of its business in good working order and condition, ordinary wear and tear excepted and
(b) maintain with financially sound and reputable insurance companies insurance on all its property
in at least such amounts and against at least such risks (but including in any event public
liability, product liability and business interruption) as are usually insured against in the same
general area by companies engaged in the same or a similar business.

          (b) Cause the Collateral Trustee to at all times be named as loss payee with respect to “All
Risk” insurance policies and an additional insured (but without any liability for premiums) under
all general liability insurance policies maintained pursuant to Section 5.5(a).

          5.6 Inspection of Property; Books and Records; Discussions.

          (a) Keep proper books of records and account in which full, true and correct entries in
conformity with GAAP and all Requirements of Law shall be made of all dealings and transactions in
relation to its business and activities.

          (b) Permit representatives of the Administrative Agent or employees of any Lender during
normal business hours (i) to visit and inspect any of its properties and examine and make abstracts
from any of its books and records and as often as may reasonably be desired, but no more than twice
per fiscal year so long as no Event of Default is outstanding, and (ii) to discuss the business,
operations, properties and financial and other condition of the Group Members with officers and
employees of the Group Members and with their independent certified public accountants, in either
case on reasonable prior notice and at the expense of the Administrative Agent or such Lender,
provided that at any time after the occurrence and during
the continuance of an Event of Default, the reasonable costs and expenses of such Lender in
respect of any such inspection shall be at the expense of the Borrower.

          5.7 Notices. Promptly give notice to the Administrative Agent and each Lender of:

          (a) the occurrence of any Default or Event of Default of which any Loan Party has knowledge;

          (b) any default or event of default under any Contractual Obligation of any Group Member of
which any Loan Party has knowledge;

          (c) any litigation, investigation or proceeding affecting any Group Member (other than any
litigation or investigation in which any Group Member is the plaintiff or

53

 

complainant) (i) in which
the amount involved is $25,000,000 or more and not covered by insurance, (ii) in which injunctive
or similar relief is sought, except any such litigation which the Borrower, in consultation with
its counsel, has determined in good faith would not reasonably be expected to have a Material
Adverse Effect, or (iii) which relates to any Loan Document;

          (d) the following events, as soon as reasonably possible and in any event within 45 days after
the Borrower has knowledge thereof: (i) the occurrence of any Reportable Event with respect to any
Plan, a failure to make any required contribution to a Plan, the creation of any Lien in favor of
the PBGC or a Plan or any withdrawal from, or the termination, Reorganization or Insolvency of, any
Multiemployer Plan or (ii) the institution of proceedings or the taking of any other material
action by the PBGC or the Borrower or any Commonly Controlled Entity or any Multiemployer Plan with
respect to the withdrawal from, or the termination, Reorganization or Insolvency of, any Plan;

          (e) (i) any development, event, or condition that, individually or in the aggregate with other
developments, events or conditions, could reasonably be expected to result in the Group Members
sustaining, in the aggregate, a Material Environmental Loss; (ii) any notice that any Governmental
Authority may deny any application for a material Environmental Permit sought by, or revoke or
refuse to renew any material Environmental Permit held by, any Group Member which denial,
revocation or refusal could reasonably be expected to result in a Material Environmental Loss; and
(iii) any Governmental Authority has identified any Group Member as a potentially responsible party
under any Environmental Law for the cleanup of Materials of Environmental Concern at any location,
whether or not owned, leased or operated by any Group Member which identification could reasonably
be expected to result in a Material Environmental Loss; and

          (f) any development or event that has had or could reasonably be expected to have a Material
Adverse Effect promptly after the Borrower has knowledge thereof.

          (g) Each notice pursuant to this Section 5.7 shall be accompanied by a statement of a
Responsible Officer setting forth details of the occurrence referred to therein and stating what
action the relevant Group Member proposes to take with respect thereto.

          5.8 Environmental Laws.

          (a) Comply in all material respects with, and use reasonable efforts to ensure compliance in
all material respects by all tenants and subtenants, if any, with, all applicable Environmental
Laws, and obtain and comply in all material respects with and maintain, and use reasonable efforts
to ensure that all tenants and subtenants obtain and comply in all material respects with and
maintain, any and all Environmental Permits.

          (b) Conduct and complete all investigations, studies, sampling and testing, and all remedial,
removal and other actions required under Environmental Laws and promptly comply in all material
respects with all orders and directives of all Governmental Authorities regarding Environmental
Laws, except where the requirement to comply is being contested in good faith by appropriate
proceedings.

54

 

          (c) Generate, use, treat, store, release, dispose of, and otherwise manage Materials of
Environmental Concern in a manner that would not reasonably be expected to result in a Material
Environmental Loss; and take reasonable efforts to prevent any other Person from generating, using,
treating, storing, releasing, disposing of, or otherwise managing Materials of Environmental
Concern in a manner that could reasonably be expected to result in a Material Environmental Loss.

          (d) Promptly deliver to the Administrative Agent any environmental reports regarding
environmental matters affecting any Group Member which are delivered by any Group Member in
connection with the Exit Facility Agreement.

          5.9 Additional Collateral, Additional Loan Parties, etc.

          (a) With respect to any property acquired after the Closing Date by any Loan Party that is not
a Foreign Subsidiary (other than (x) property that would constitute “Excluded Assets” as defined in
the Collateral Agreement, (y) any property described in paragraph (b), (c) or (d) below and (z) any
property subject to a Lien expressly permitted by Section 6.3(g) as to which the Collateral Trustee
does not have a perfected Lien for the benefit of the Lenders, promptly (i) execute and deliver to
the Collateral Trustee and the Administrative Agent such amendments to the Collateral Agreement or
such other documents as the Collateral Trustee or the Administrative Agent deems necessary or
advisable to grant to the Collateral Trustee, for the benefit of the Lenders, a security interest
in such property and (ii) take all actions necessary to perfect each such security interest,
including the filing of Uniform Commercial Code financing statements in such jurisdictions as may
be required by the applicable Security Document or by law.

          (b) With respect to any fee interest in any real property having a value (together with
improvements thereof), in the reasonable opinion of the Borrower, of $5,000,000 or greater acquired
after the Closing Date by any Loan Party (other than any such real property subject to a Lien
expressly permitted by Sections 6.3(g) or 6.3(v) (but, in the case of any
property subject to any Lien permitted by Section 6.3(v), solely if the terms of such Lien
prohibit the granting of a Lien to secure the Obligations so long as such prohibition was not
created in contemplation of the applicable acquisition)), promptly (i) execute and deliver a second
priority Mortgage, in favor of the Collateral Trustee, for the benefit of the Lenders, covering
such real property and (ii) if requested by the Collateral Trustee or the Administrative Agent,
provide the Lenders, with respect to each Mortgage, with (x) a mortgagee’s title insurance policy
covering such real property in an amount at least equal to the purchase price of such real property
and otherwise consistent with the provisions of Section 4.01(q)(iii) as well as a current ALTA
survey thereof, together with a surveyor’s certificate and (y) use its reasonable efforts to cause
to be provided any consents or estoppels reasonably deemed necessary by the Collateral Trustee or
the Administrative Agent in connection with each such Mortgage, each of the foregoing in form and
substance reasonably satisfactory to the Collateral Trustee and the Administrative Agent and (iii)
if requested by the Collateral Trustee or the Administrative Agent, deliver to the Collateral
Trustee and the Administrative Agent legal opinions relating to the matters described above, which
opinions shall be in form and substance, and from counsel, reasonably satisfactory to the
Collateral Trustee and the Administrative Agent. With respect to all Mortgaged Properties,

55

 

maintain a policy of flood insurance as described in Section 4.01(q)(iv) to the extent such policy
was delivered pursuant to Section 4.01(q)(iv) or any other provision of any Loan Document.

          (c) With respect to any new Subsidiary (other than an Excluded Subsidiary) created or acquired
after the Closing Date by any Group Member (which, for the purposes of this paragraph (c), shall
include any existing Subsidiary that ceases to be an Excluded Subsidiary), promptly (i) execute and
deliver to the Collateral Trustee and the Administrative Agent such amendments to the Collateral
Agreement as the Collateral Trustee or the Administrative Agent deems necessary to grant to the
Collateral Trustee, for the benefit of the Lenders, a perfected security interest in the Capital
Stock of such new Subsidiary that is owned by any Group Member, (ii) deliver to the Collateral
Trustee the certificates representing such Capital Stock (to the extent certificated), together
with undated stock powers, in blank, executed and delivered by a duly authorized officer of the
relevant Group Member, (iii) cause such new Subsidiary (A) to become a party to the Domestic
Subsidiary Guarantee and the Collateral Agreement, (B) to take all actions necessary to perfect
each such security interest, including the filing of Uniform Commercial Code financing statements
in such jurisdictions as may be required by the applicable Security Document or by law and (C) to
deliver to the Collateral Trustee and the Administrative Agent each of the documents specified in
Section 4.1(m) (with references in such Section to “Closing Date” being deemed references to the
date on which all the other requirements of this clause (c) are satisfied)), and (iv) if requested
by the Collateral Trustee or the Administrative Agent, deliver to the Collateral Trustee and the
Administrative Agent legal opinions relating to the matters described above, which opinions shall
be in form and substance, and from counsel, reasonably satisfactory to the Collateral Trustee and
the Administrative Agent.

          (d) With respect to any new Excluded Subsidiary created or acquired after the Closing Date by
any Loan Party, promptly (i) execute and deliver to the Collateral Trustee and the Administrative
Agent such amendments to the Collateral Agreement or the applicable Pledge Agreement, or such new
Pledge Agreement, as the Collateral Trustee or the Administrative Agent deems necessary to grant to
the Collateral Trustee, for the benefit of the Lenders, a perfected security interest in the
Capital Stock of such new Subsidiary that is owned by any such Group Member; provided that in no
event shall more than 66% of the total outstanding voting
Capital Stock of any such new Subsidiary be required to be so pledged, (ii) deliver to the
Collateral Trustee the certificates representing such Capital Stock (to the extent certificated),
together with undated stock powers, in blank, executed and delivered by a duly authorized officer
of the relevant Group Member, and take such other action as may be necessary to perfect the
Collateral Trustee’s security interest therein, and (iii) if requested by the Collateral Trustee or
the Administrative Agent, deliver to the Collateral Trustee and the Administrative Agent legal
opinions relating to the matters described above, which opinions shall be in form and substance,
and from counsel, reasonably satisfactory to the Collateral Trustee and the Administrative Agent.

          (e) Without duplication of any obligation set forth in the foregoing clauses of this Section
5.9, with respect to any Subsidiary of the Borrower that at any time pledges any property to secure
the obligations of any Loan Party under the Exit Facility Agreement or the Senior Subordinated
Notes Indenture, or incurs any Guarantee Obligations with respect to any such obligation, promptly
(i) execute and deliver to the Collateral Trustee and the Administrative Agent such amendments to
the Collateral Agreement as the Collateral Trustee or the Administrative Agent deems necessary to
grant to the Collateral Trustee, for the benefit of the

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Lenders, a security interest in such
property, (ii) to the extent any such property is Capital Stock, deliver to the Collateral Trustee
the certificates representing such Capital Stock (to the extent certificated), together with
undated stock powers, in blank, executed and delivered by a duly authorized officer of the relevant
Group Member, (iii) cause such Subsidiary (A) to become a party to the Domestic Subsidiary
Guarantee and the Collateral Agreement, (B) to take all actions necessary to perfect each such
security interest, including the filing of Uniform Commercial Code financing statements in such
jurisdictions as may be required by the applicable Security Document or by law and (C) to deliver
to the Collateral Trustee each of the documents specified in Section 4.1(m) (with references in
such Section to “Closing Date” being deemed references to the date on which all the other
requirements of this clause (e) are satisfied), and (iv) if requested by the Collateral Trustee,
deliver to the Collateral Trustee legal opinions relating to the matters described above, which
opinions shall be in form and substance, and from counsel, reasonably satisfactory to the
Collateral Trustee.

          5.10 Post-Closing Obligations. Within 90 days after the Closing Date (or such longer
period as the administrative agent under the Exit Facility may agree in its reasonable discretion),
the Borrower shall execute and deliver Foreign Pledge Agreements in respect of the Capital Stock of
each of the Foreign Subsidiaries listed on Schedule 5.10, if and to the extent that such Capital
Stock then constitutes Collateral (as defined n the Collateral Agreement).

SECTION 6. NEGATIVE COVENANTS

          The Borrower hereby agrees that so long as any Loan or other amount is owing to any Lender or
the Administrative Agent hereunder, the Borrower shall not, and shall not permit any of its
Subsidiaries to, directly or indirectly:

          6.1 Financial Condition Covenants.

          (a) Consolidated Senior Leverage Ratio. Permit the Consolidated Senior Leverage Ratio
as at the last day of each period of four consecutive fiscal quarters of the Borrower ending on or
after the last day of the thirteenth fiscal quarter after the Closing Date to exceed 3.90 to 1.00.

          (b) Consolidated Debt Service Coverage Ratio. Permit the Consolidated Debt Service
Coverage Ratio for each period of four consecutive fiscal quarters of the Borrower ending on or
after the last day of the thirteenth fiscal quarter after the Closing Date to be less than 1.10 to
1.00.

          (c) Consolidated EBITDA. Permit Consolidated EBITDA for any period of four
consecutive fiscal quarters of the Borrower ending with any fiscal quarter set forth below to be
less than the amount set forth below opposite such fiscal quarter:

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	Fiscal Quarter	 	Consolidated EBITDA
	December 31, 2007
	 	$	700,000,000	 
	March 31, 2008
	 	$	706,250,000	 
	June 30, 2008
	 	$	712,500,000	 
	September 30, 2008
	 	$	718,750,000	 
	December 31, 2008 and each fiscal quarter thereafter
	 	$	725,000,000	 

          6.2 Indebtedness. Create, issue, incur, assume, become liable in respect of or suffer
to exist any Indebtedness, except:

          (a) Indebtedness of any Loan Party pursuant to any Loan Document;

          (b) (i) Indebtedness of the Borrower to any Subsidiary and of any Guarantor to any Group
Member, (ii) Indebtedness of any Subsidiary that is not a Guarantor to any other Subsidiary that is
not a Guarantor and (iii) any Intercompany Loan Owed to U.K. Subsidiaries;

          (c) (i) Guarantee Obligations of any Group Member of Indebtedness of any Loan Party, and (ii)
Guarantee Obligations of any Subsidiary that is not a Guarantor of Indebtedness of any other
Subsidiary that is not a Guarantor;

          (d) Guarantee Obligations of any Group Member in respect of any Foreign Credit Facility and
other Indebtedness of any Excluded Subsidiary permitted under Section 6.2(z);

          (e) Guarantee Obligations of any Person which becomes a Subsidiary of any Group Member or is
merged into any Group Member after the date of this Agreement; provided that (i) such Guarantee
Obligation was in existence on the date such Person became a Subsidiary of, or was merged into,
such Group Member, (ii) such Guarantee Obligation was not created in contemplation of such Person
becoming a Subsidiary of, or merging into, such Group Member and (iii) immediately after giving
effect to the acquisition of such Person by such Group Member, no Default or Event of Default shall
have occurred and be continuing;

          (f) Indebtedness outstanding on the date hereof and listed on Schedule 6.2(f) and any
refinancings, replacements, refundings, renewals or extensions thereof (without increasing, or
shortening the maturity of, the principal amount thereof); provided that this Section
6.2(f) shall not permit the incurrence of any new Indebtedness to refinance, replace, refund, renew
or extend any Indebtedness owing to a Group Member unless the obligee on such new Indebtedness is
also a Group Member;

          (g) Indebtedness (including, without limitation, purchase money Indebtedness and Capital Lease
Obligations) incurred after the Closing Date to finance Capital Expenditures; provided that
the aggregate principal amount of Indebtedness incurred in reliance on this Section 6.2(g) shall
not exceed $100,000,000 in any fiscal year of the Borrower;

          (h) [Reserved];

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          (i) Indebtedness incurred in the ordinary course of business under travel and expense cards,
corporate purchasing cards and car leasing programs, and Guarantee Obligations of the Borrower with
respect to any such Indebtedness;

          (j) (i) Indebtedness of any Excluded Subsidiary to any Loan Party existing on the Closing Date
and (ii) additional Indebtedness of any Excluded Subsidiary to any Loan Party incurred after the
Closing Date and consisting of Intercompany Loans permitted under Section 6.8(h)(ii);

          (k) Intercompany and third-party Indebtedness incurred in the ordinary course of business in
connection with the cash pooling and/or interest set-off arrangements described in Section 6.3(k);

          (l) Indebtedness in connection with Swap Agreements not prohibited by Section 6.12;

          (m) Indebtedness secured by Liens permitted by Section 6.3(a), (b), (c), (d), (e), (i), (l)
and (m) to the extent the obligations secured thereby constitute Indebtedness;

          (n) (i) Indebtedness of the Borrower in respect of the Senior Subordinated Notes in an
aggregate principal amount not to exceed $306,000,000, (ii) Guarantee Obligations of any Guarantor
in respect of such Indebtedness, provided that such Guarantee Obligations are subordinated to the
same extent as the obligations of the Borrower in respect of the Senior Subordinated Notes, and
(iii) any refinancings, replacements, refundings, renewals or extensions of the foregoing (without
increasing, or shortening the maturity of, the principal amount thereof); provided that any
Liens securing any Indebtedness permitted by this Section 6.2(n) shall be
subject at all times to the terms of the Intercreditor Agreement and shall be “Third Priority
Liens” thereunder;

          (o) (i) Indebtedness of the Group Members under the Exit Facility Agreement in an aggregate
principal amount not to exceed $1,418,000,000 (as such amount shall be reduced from time to time as
a result of prepayments and repayments), (ii) Guarantee Obligations of any Group Member in respect
of such Indebtedness, and (iii) any refinancings, replacements, refundings, renewals or extensions
of the foregoing (without increasing the principal amount thereof in effect immediately prior to
such refinancing, replacement, refunding, renewal or extension); provided that any Liens securing
the Indebtedness permitted by this Section 6.2(o) shall be subject at all times to the terms of the
Intercreditor Agreement;

          (p) Other Indebtedness of the Group Members in satisfaction of the Other Unsecured Claims
pursuant to the Reorganization Plan, so long as the aggregate principal amount of Indebtedness
incurred pursuant to this Section 6.2(p) shall not exceed $300,000,000;

          (q) Permitted Subordinated Indebtedness so long as (i) the Net Cash Proceeds thereof received
by any Group Member are applied in accordance with Section 2.5(b) and (ii) after giving effect to
the incurrence thereof the Borrower shall be in compliance with the covenants in Section 6.1 as of
the last day of the fiscal quarter then most recently ended prior to the date of such incurrence
(calculated on a pro forma basis to give effect to the incurrence of

59

 

such Permitted Subordinated
Indebtedness and the application of the proceeds thereof as if each had occurred on the last day of
such fiscal quarter);

          (r) Intercompany Loans incurred in order to consummate the Tax Restructuring (including any
Intercompany Loans arising solely as a result of the recharacterization as Indebtedness of any
equity Investment made by any Group Member in any other Group Member and permitted by Section 6.8);

          (s) Indebtedness of any Person which becomes a Subsidiary or is merged into any Group Member
after the date of this Agreement, provided that (i) such Indebtedness was in existence on the date
such Person became a Subsidiary of, or merged into, such Group Member, (ii) such Indebtedness was
not created in contemplation of such Person becoming a Subsidiary of, or merging into, such Group
Member and (iii) immediately after giving effect to the acquisition of such Person by such Group
Member no Default or Event of Default shall have occurred and be continuing;

          (t) Indebtedness of any Group Member owed to any other Group Member and arising solely as a
result of the recharacterization as Indebtedness of any equity Investment made by any Group Member
in any other Group Member and permitted by Section 6.8;

          (u) (i) Indebtedness (including Guarantee Obligations) incurred by the Borrower and the U.K.
Subsidiaries in connection with the Company Voluntary Arrangements, the U.K. Settlement Agreement
and financing the retention of the Intercompany Loan Notes, and (ii) Intercompany Loans from T&N
Limited to any other U.K. Subsidiary or from any U.K. Subsidiary to T&N Limited in the ordinary
course of business and solely in connection with the
establishment and operation of the consolidated cash management system of the U.K.
Subsidiaries;

          (v) (i) Indebtedness of the Group Members in respect of the Additional Liquidity Facility in
an aggregate principal amount, when added to the amount of Indebtedness outstanding under clause
(o) of this Section 6.2, not to exceed $1,418,000,000 at any one time outstanding and (ii)
Guarantee Obligations of any Group Member in respect of such Indebtedness, including any
refinancings, refundings, renewals or extensions of the foregoing;

          (w) Indebtedness in respect of Securitization Transactions permitted under Section 6.5(d) that
is non-recourse to any Group Member (except for Standard Securitization Undertakings);

          (x) Indebtedness incurred to fund Joint Venture Put Obligations relating to Turkish Joint
Ventures in an aggregate outstanding principal amount not to exceed at any date $200,000,000;

          (y) [Reserved]; and

          (z) Indebtedness of the Group Members not permitted by the foregoing paragraphs of this
Section 6.2 (other than Intercompany Loans) in an aggregate outstanding principal amount for all
Group Members not to exceed at any date $1,000,000,000.

60

 

          6.3 Liens. Create, incur, assume or suffer to exist any Lien upon any of its
property, whether now owned or hereafter acquired, except:

          (a) Liens for taxes, assessments or governmental charges not yet due or that are being
contested in good faith by appropriate proceedings, provided that adequate reserves with respect
thereto are maintained on the books of the Borrower or its Subsidiaries, as the case may be, in
conformity with GAAP or in the case of a Subsidiary located outside the United States, general
accounting principles in effect from time to time in its jurisdiction of incorporation;

          (b) carriers’, warehousemen’s, mechanics’, landlords’, materialmen’s, repairmen’s or other
like Liens arising in the ordinary course of business that are not overdue for a period of more
than sixty (60) days or that are being contested in good faith by appropriate proceedings;

          (c) pledges or deposits in connection with workers’ compensation, unemployment insurance and
other social security legislation;

          (d) deposits to secure the performance of bids, trade contracts (other than for borrowed
money), leases, statutory obligations, surety and appeal bonds, performance bonds and other
obligations of a like nature incurred in the ordinary course of business;

          (e) easements, rights-of-way, zoning and similar restrictions and other similar encumbrances
or title defects incurred in the ordinary course of business that do not materially detract from
the value of the property subject thereto or materially interfere with the ordinary conduct of the
business of any Group Member;

          (f) (i) Liens in existence on the date hereof listed on Schedule 6.3(f), securing Indebtedness
in existence on the date hereof and permitted by Section 6.2(f) and (ii) renewals of any Liens
permitted by clause (i) securing Indebtedness permitted by Section 6.2(f) that is a refinancing,
replacement, refunding, renewal or extension of any Indebtedness described in clause (i), provided
that no such Lien permitted by this clause (ii) shall cover any property that is not subject to
such Lien on the date hereof and that the amount of Indebtedness secured thereby is not increased
after the date hereof;

          (g) Liens securing Indebtedness of any Group Member incurred pursuant to Section 6.2(g) to
finance purchase money Indebtedness or any other Capital Expenditure, provided that (i) such Liens
shall be created substantially simultaneously with, or within 60 days after, the making of such
Capital Expenditure and (ii) such Liens do not at any time encumber any property other than the
property financed by such Indebtedness;

          (h) Liens created pursuant to the Security Documents;

          (i) Liens in favor of any Governmental Authority to secure progress, advance or other payments
pursuant to any contract or provision of any statute;

61

 

          (j) Liens on assets of any Excluded Subsidiary to secure Indebtedness of any Group Member
(including Indebtedness of such Excluded Subsidiary) permitted under Section 6.2(z);

          (k) Liens created in the ordinary course of business in favor of banks and other financial
institutions on credit balances of any bank accounts of any Group Member held at such banks or
financial institutions, as the case may be, to facilitate the operation of cash pooling and/or
interest set-off arrangements in respect of such bank accounts in the ordinary course of business;

          (l) Liens arising from leases, subleases or licenses granted to others which do not interfere
in any material respect with the business of any Group Member;

          (m) Liens arising by virtue of any statutory or common law provision relating to bankers’
liens, rights of set-off or similar rights and remedies as to deposit accounts;

          (n) any interest or title of a lessor under any lease entered into by any Group Member in the
ordinary course of its business and covering only the assets so leased;

          (o) Liens securing (i) the Exit Facility, (ii) the Additional Liquidity Facility and (iii) the
Senior Subordinated Notes and any refinancings, replacements, refundings, renewals or extensions of
the foregoing; provided that such Liens in respect of the Senior Subordinated Notes are
subordinated on terms no less favorable on the whole than those set forth in the Intercreditor
Agreement;

          (p) Liens on Receivables and Related Security which arise in connection with any
Securitization Transactions permitted under Section 6.5(d);

          (q) Liens securing Indebtedness permitted by Section 6.2(b) and Section 6.2(j) on the assets
of the Subsidiaries described therein; provided that any such Liens on assets of any Loan
Party shall be subordinated to any and all Liens securing the Obligations and any other Liens
governed by the Intercreditor Agreement on terms and conditions reasonably satisfactory to the
Administrative Agent in its discretion;

          (r) Liens securing Indebtedness permitted by Section 6.2 (i), (r) and (x);

          (s) Liens arising from judgments and attachments in connection with court proceedings,
provided that (i) the attachment or enforcement of such Liens would not result in an Event of
Default hereunder, (iii) such Liens are being contested in good faith by appropriate proceedings,
(iii) no material assets or property of any Group Member is subject to material risk of loss or
forfeiture, and (iv) a stay of execution pending appeal or proceeding for review is in effect;

          (t) Liens on cash or Cash Equivalents to secure the obligations of any Group Member under any
Swap Agreement permitted by Section 6.12;

          (u) Liens securing any Permitted Subordinated Indebtedness;

62

 

          (v) Liens on property or assets acquired by any Group Member or on property or assets of any
Person that becomes a Subsidiary of a Group member, in any such case, existing at the time of the
acquisition thereof (including acquisition through merger or consolidation);

          (w) with respect to each Mortgaged Property, the Liens permitted in the Mortgage for such
Mortgaged Property;

          (x) Liens created under Section 4.7 of the Collateral Trust Agreement in favor of the
Collateral Trustee;

          (y) Liens granted by the Borrower or a Subsidiary upon one or more Intercompany Loan Notes
securing Indebtedness owing to the Borrower or a Subsidiary; provided that any such Liens
on assets of any Loan Party shall be subordinated to any and all Liens securing the Obligations and
any other Liens governed by the Intercreditor Agreement on terms and conditions reasonably
satisfactory to the Administrative Agent in its discretion;

          (z) [Reserved]; and

          (aa) Liens not otherwise permitted by this Section so long (x) as neither (i) the aggregate
outstanding principal amount of the obligations secured thereby nor (ii) the aggregate fair market
value (determined as of the date such Lien is incurred) of the assets subject thereto exceeds as to
all Group Members $150,000,000 at any one time and (y) such Liens do not secure Indebtedness
permitted by Sections 6.2(d), (i), (k), (n), (o), (p), (q), (s), (u) and (v).

          6.4 Fundamental Changes. Enter into any merger, consolidation or amalgamation, or liquidate, wind up or dissolve
itself (or suffer any liquidation or dissolution), or Dispose of all or substantially all of its
property or business, except pursuant to the U.K. Dissolution and the Company Voluntary
Arrangements and except that:

          (a) (i) any Subsidiary may be merged or consolidated with or into the Borrower (provided that
the Borrower shall be the continuing or surviving corporation) or with or into any Wholly Owned
Subsidiary Guarantor (provided that the continuing or surviving corporation shall be a Wholly Owned
Subsidiary Guarantor) and (ii) any Subsidiary that is not a Guarantor may be merged with or into
any other Subsidiary (and if such other Subsidiary is a Guarantor the survivor shall be a
Guarantor);

          (b) (i) any Subsidiary may Dispose of any or all of its assets (including, without limitation,
transfers of Intercompany Loans or equity Investments) (A) to the Borrower or any Wholly Owned
Subsidiary Guarantor (upon voluntary liquidation or otherwise) or (B) pursuant to a Disposition
permitted by Section 6.5; and (ii) any Subsidiary that is not a Guarantor may Dispose of any or all
of its assets to any other Subsidiary;

          (c) any Investment expressly permitted by Section 6.8 may be structured as a merger,
consolidation or amalgamation;

          (d) any Subsidiary which has Disposed of all of its assets as permitted under this Section 6.4
and Section 6.5 or which otherwise has no assets may be liquidated;

63

 

          (e) the Group Members may consummate the transactions contemplated under the Tax
Restructuring;

          (f) any Joint Venture may be liquidated, provided that (x) the assets and liabilities thereof
are distributed to the owners of such Joint Venture, pro rata, in accordance with such owners’
respective equity interests in such Joint Venture and (y) the Net Cash Proceeds thereof are applied
to prepay the Loans, to the extent required by Section 2.5; and

          (g) any Subsidiary that is not a Guarantor may be liquidated or dissolved so long as the
aggregate book value of the assets of all Subsidiaries that have been dissolved or liquidated
pursuant to this Section 6.4(g), when taken together with the Group Members which are not Loan
Parties which have taken any of the actions described in Section 7(e), shall be less than 10% of
the book value of the consolidated assets of the Group Members, taken as a whole (as set forth in
the most recent audited consolidated financial statements of the Borrower that have been delivered
pursuant to Section 5.1(a) or, until any audited financial statements have been delivered pursuant
to such Section, the Pro Forma Balance Sheet).

          6.5 Disposition of Property. Dispose of any of its property, whether now owned or
hereafter acquired, or, in the case of any Subsidiary, issue or sell any shares of such
Subsidiary’s Capital Stock to any Person, except:

          (a) the Disposition of obsolete or worn out property in the ordinary course of business;

          (b) the sale of inventory in the ordinary course of business and Dispositions of Cash
Equivalents in the ordinary course of business;

          (c) Dispositions permitted by Section 6.4;

          (d) Dispositions of Receivables pursuant to Factoring Arrangements, so long as, on the last
day of each calendar month, the aggregate amount of Receivables that have been Disposed of pursuant
thereto and that are then outstanding shall not exceed the Factoring Basket then in effect;

          (e) Dispositions pursuant to sale and leaseback transactions permitted pursuant to Section
6.11;

          (f) the sale or issuance of any Subsidiary’s Capital Stock to the Borrower or any Wholly Owned
Subsidiary Guarantor or the sale or issuance of any Excluded Subsidiary’s Capital Stock to any
other Excluded Subsidiary;

          (g) (i) any Permitted Asset Sales; provided that the Net Cash Proceeds thereof are
applied to prepay the Loans, to the extent required by Section 2.5 and (ii) any Disposition that
does not constitute an “Asset Sale” pursuant to clause (ii) of the definition thereof;

          (h) Dispositions in connection with the U.K. Dissolution or the Company Voluntary
Arrangements;

64

 

          (i) Dispositions constituting Investments permitted by Sections 6.8(j);

          (j) Dispositions consisting of (i) operating leases to Loan Parties, (ii) operating leases to
Joint Ventures of assets at a fair market value in an aggregate amount not to exceed at any date
the Joint Venture Basket then in effect and (iii) operating leases to Excluded Subsidiaries of
assets at a fair market value in an aggregate amount not to exceed at any date the Intercompany
Basket then in effect;

          (k) intercompany Dispositions necessary in order to effect the Tax Restructuring;

          (l) the non-exclusive licensing of Intellectual Property in the ordinary course of business
and in a manner consistent with past practices of the Borrower and its Subsidiaries and the
exclusive licensing of Intellectual Property in the ordinary course of business in a manner
consistent with past practices of the Borrower and its Subsidiaries so long as such license is
exclusive only as to geographic area or use;

          (m) transfers of accounts receivable and related rights by F-M Canada to the Borrower;

          (n) involuntary dispositions consisting of property or casualty events or condemnation
proceedings, in each case resulting in a Recovery Event;

          (o) Dispositions of in-plant maintenance, repair and operating and perishable tooling
operations to third parties in connection with the outsourcing of such operations;

          (p) the Wagner Lighting Divestiture; and

          (q) Dispositions of Receivables and Related Security pursuant to Securitization Transactions
that are non-recourse to any Group Member (except for Standard Securitization Undertakings).

          6.6 Restricted Payments. Declare or pay any dividend (other than dividends payable
solely in common stock of the Person making such dividend) on, or make any payment on account of,
or set apart assets for a sinking or other analogous fund for, the purchase, redemption,
defeasance, retirement or other acquisition of, any Capital Stock of any Group Member, whether now
or hereafter outstanding, or make any other distribution in respect thereof, either directly or
indirectly, whether in cash or property or in obligations of any Group Member (collectively,
“Restricted Payments”), except that (a) any Subsidiary may make Restricted Payments to the
Borrower or any Wholly Owned Subsidiary Guarantor, (b) any Subsidiary that is not a Guarantor may
make Restricted Payments to any other Group Member, (c) any Subsidiary may make Restricted Payments
to Persons directly owning Minority Interests, if such Subsidiary shall first have made, or shall
substantially simultaneously make, a Restricted Payment to the Group Member which has an ownership
interest in such Subsidiary in an amount not less than such Group Member’s proportionate share
(based upon such Group Member’s percentage ownership interest in such Subsidiary) of the total
Restricted Payment to be made by such Subsidiary, (d) any Subsidiary may make Restricted Payments
necessary in order to consummate the Tax Restructuring, (e) the Borrower may make Restricted
Payments permitted

65

 

under Section 6.18, (f) any Group Member may make Restricted Payments in
connection with the Company Voluntary Arrangements, the retention of the Intercompany Loan Notes
(without limiting payments relating to Intercompany Loan Notes in connection with the Tax
Restructuring), and the U.K. Dissolution and (g) to the extent that any such payments are made in a
manner that would cause them to be Restricted Payments, the Borrower may make payments to members
of management pursuant to compensation arrangements typical of companies of similar size and scope.

          6.7 Capital Expenditures. Make or commit to make any Capital Expenditure, except
Capital Expenditures of the Group Members in the ordinary course of business in an aggregate amount
at any time during any fiscal year of the Borrower not to exceed $312,000,000; provided
that (a) any such amount, if not so expended in the fiscal year for which it is permitted, may be
carried over for expenditure in the next succeeding fiscal year only and (b) Capital Expenditures
made in any fiscal year shall be deemed made, first, in respect of amounts carried over from the
prior fiscal year pursuant to the foregoing clause (a) and, second, in respect of amounts permitted
for such fiscal year as provided above.

          For purposes of calculating compliance with this Section 6.7, (x) the portion of the Positive
EBITDA Variance applied to make Capital Expenditures pursuant to Section 6.18, shall be excluded in
calculating compliance with this Section 6.7, (y) in the event that the average currency exchange
rate between the Dollar and the euro, during the fiscal year for which compliance is being
determined, exceeds 1.30 to 1.00, the Borrower shall increase the Dollar amount of its actual
Capital Expenditures for such fiscal year by an amount equal to 45% of Capital Expenditures for
such fiscal year, multiplied by the excess over the 1.30 to 1.00 exchange rate, and (z) in the
event that the average exchange rate between the Dollar and the euro, during the fiscal year for
which compliance is being determined, is less than 1.00 to 1.00, the Borrower shall reduce the
Dollar amount of its actual Capital Expenditures for such fiscal year by an amount equal to 45% of
Capital Expenditures for such fiscal year, multiplied by the deficiency under the 1.00 to 1.00
exchange rate.

          The amount of Capital Expenditures permitted hereunder shall be adjusted, at the end of each
fiscal year of the Borrower (a) in the event that a Permitted Acquisition has occurred during such
fiscal year, by increasing the amount of permitted Capital Expenditures for each subsequent fiscal
year of the Borrower by the amount of Capital Expenditures for the business acquired as part of
such Permitted Acquisition approved by the board of directors of the Borrower at the time of such
Permitted Acquisition, and (b) in the event that a Permitted Asset Sale has occurred during such
fiscal year, by reducing the amount of permitted Capital Expenditures for each subsequent fiscal
year of the Borrower by the amount set forth in the Projections most recently delivered pursuant to
Section 5.2(c) allocated for Capital Expenditures for the business subject of such Permitted Asset
Sale.

          6.8 Investments. Make any advance, loan, extension of credit (by way of guaranty or
otherwise) or capital contribution of cash or other property to, or purchase any Capital Stock,
bonds, notes, debentures or other debt securities of, or any assets constituting a business unit
of, or make any other investment in, any Person (all of the foregoing, “Investments”),
except:

66

 

          (a) extensions of trade credit and the conversion of overdue trade receivables into notes
receivables, in each case in the ordinary course of business;

          (b) Investments in Cash Equivalents;

          (c) Guarantee Obligations permitted by Section 6.2;

          (d) loans and advances to employees of any Group Member in the ordinary course of business
(including for travel, entertainment and relocation expenses or pursuant to any Plan) in an
aggregate amount for all Group Members not to exceed $5,000,000 at any one time outstanding;

          (e) Investments consisting of Permitted Net Cash Proceeds Reinvestments made by any Group
Member with the proceeds of any Reinvestment Deferred Amount;

          (f) Investments permitted by Section 6.4(a), (b) and (e);

          (g) Investments consisting of Intercompany Loans permitted under Section 6.2(b), (k), (t) and
(u);

          (h) (i) Investments by any Loan Party in any Excluded Subsidiary existing on the Closing Date,
(ii) additional Investments by any Loan Party in any Excluded Subsidiary in an aggregate
outstanding amount not to exceed on any date the Intercompany Basket in effect at such date
(calculated after giving effect to all proposed Investments to be made on such date pursuant to
this Section 6.8(h)(ii)); provided that the aggregate amount of Investments (other than
Intercompany Loans) made pursuant to this Section 6.8(h)(ii) and outstanding on any date shall not
exceed the Intercompany Basket Sublimit on such date and (iii) Investments in a Foreign Subsidiary
for the purpose of complying with local statutory capitalization requirements in such Foreign
Subsidiary’s host jurisdiction;

          (i) Investments by (i) any Group Member in the Borrower or any Person that, prior to such
investment, is a Guarantor and (ii) any Subsidiary that is not a Guarantor in any Group Member;

          (j) (i) Investments consisting of the Capital Stock of any Person acquired pursuant to any
Joint Venture Put Obligation and (ii) Investments (other than Investments described in clause (i))
in Joint Ventures, including without limitation, Investments in new Joint Ventures, the purchase of
ownership interests in Joint Ventures from Persons that are not Group Members and increases in the
ownership interest of any Group Member in Joint Ventures in an aggregate outstanding amount not to
exceed at any date the Joint Venture Basket in effect on such date (calculated after giving effect
to all proposed Investments to be made on such date pursuant to this Section 6.8(j)(ii));

          (k) Permitted Acquisitions;

          (l) (i) Investments outstanding on the date hereof and listed on Schedule 6.8(l), (ii) equity
Investments of any Group Member in any other Group Member and arising solely as a result of the
recharacterization as an equity investment of any Intercompany Loan

67

 

permitted by Section 6.2 and
(iii) Investments in the form of notes issued by the “Trust” (as defined in the Reorganization
Plan) to the Borrower pursuant to the Reorganization Plan, as follows: (x) a note in the face
amount of $125,000,000 issuable pursuant to Section 8.3.5 of the Reorganization Plan and (y) a note
in the face amount of $140,000,000 issuable pursuant to Section 8.22 of the Reorganization Plan;

          (m) Investments by any Group Member made on or after the Closing Date in existing or potential
suppliers and customers from whom the Borrower reasonably expects to obtain a material commercial
benefit in an aggregate amount (valued at cost) not to exceed $25,000,000 at any one time
outstanding;

          (n) Investments by any Group Member of any Restricted Payment received by such Person that
consists of equity interests in a Subsidiary; provided that if the initial payor of any
such Restricted Payment is a Guarantor, then the ultimate recipient of such Restricted Payment
shall also be a Guarantor;

          (o) Investments by any Group Member necessary to effect the Tax Restructuring;

          (p) Investments in notes receivable payable to any Group Member by the purchasers of assets
purchased pursuant to Dispositions permitted under Section 6.5;

          (q) Investments by the Borrower in any Subsidiary consisting of the issuance of letters of
credit under the Exit Facility Agreement (and the incurrence by the Borrower of Indebtedness
thereunder with respect thereto) to support obligations of such Subsidiary;

          (r) Investments by a U.K. Subsidiary in another U.K. Subsidiary in connection with the Company
Voluntary Arrangements;

          (s) Investments by the Borrower or any of its Subsidiaries in connection with the Anticipated
Japanese Consolidation in an amount not to exceed $10,000,000;

          (t) Investments not otherwise permitted under paragraphs (a) through (s) of this Section 6.8
so long as (i) prior to the making of any such Investment, the Borrower shall have delivered to the
Administrative Agent a certificate of a Responsible Officer, certifying that such Investment has
been approved by a Board Majority and (ii) that the Board Majority has determined that such
Investment is being made with the intent to pursue a strategic transaction with the Person with
respect to which such Investment is being made; it being understood that at any time at which any
Investments made pursuant to this Section 6.8(t) with respect to any Person constitutes an
Acquisition, such Acquisition must also constitute a Permitted Acquisition and comply with the
definition thereof;

          (u) Investments not otherwise permitted under paragraphs (a) through (t) of this Section 6.8,
but excluding Investments in Joint Ventures or in Excluded Subsidiaries, in an aggregate
outstanding amount not to exceed on any date the General Investment Basket in effect on such date;
and

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          (v) On any date, Investments not otherwise permitted under paragraphs (a) through (u) of this
Section 6.8 in an aggregate outstanding amount not to exceed on any date the Proceeds Investment
Basket on such date.

          6.9 Optional Payments and Modifications of Certain Debt Instruments. (a) Make or
offer to make any optional or voluntary payment, prepayment, repurchase or redemption of or
otherwise optionally or voluntarily defease or segregate funds with respect to the Senior
Subordinated Notes, if at the time a Default or Event of Default has occurred and is continuing;
(b) make or offer to make any optional or voluntary payment, prepayment, repurchase or redemption
of or otherwise optionally or voluntarily defease or segregate funds with respect to (i) the
Additional Liquidity Facility, (ii) any Permitted Subordinated Indebtedness or (iii) any
Indebtedness of a Loan Party incurred under Section 6.2(y) or Section 6.2(z) that is not secured as
permitted under Section 6.3(z)(i), unless at the time no Default or Event of Default has occurred
and is continuing and immediately after giving effect thereto (and any Indebtedness incurred in
connection therewith, and the application of the proceeds thereof), the Leverage Ratio is not
greater than 3.5 to 1.0; (c) amend, modify, waive or
otherwise change, or consent or agree to any amendment, modification, waiver or other change
to, any of the terms of (i) the Exit Facility Agreement or the Additional Liquidity Facility
Agreement in a manner that is materially adverse to the Lenders and (ii) the Senior Subordinated
Notes Indenture or any document governing any Permitted Subordinated Indebtedness (other than any
such amendment, modification, waiver or other change that (a) would extend the maturity or reduce
the amount of any payment of principal thereof or reduce the rate or extend any date for payment of
interest thereon and (b) does not involve the payment of a consent fee); or (d) designate any
Indebtedness (other than obligations of the Loan Parties pursuant to the Exit Facility Agreement
and this Agreement) as “Designated Senior Debt” or “Guarantor Senior Debt” (or any other defined
term having similar purposes) for the purposes of the Senior Subordinated Notes Indenture or any
document governing any Permitted Subordinated Indebtedness.

          6.10 Transactions with Affiliates. (a) Except for the Tax Restructuring, the
retention of the Intercompany Loan Notes (without limiting any transactions in connection with the
Tax Restructuring), or pursuant to the U.K. Dissolution, the Company Voluntary Arrangements or
Securitization Transactions permitted under Section 6.5(q), enter into any material transaction,
including any purchase, sale, lease or exchange of property, the rendering of any service or the
payment of any management, advisory or similar fees, with any Affiliate (other than the Borrower or
any Wholly Owned Subsidiary Guarantor) unless such transaction is (i) otherwise permitted under
this Agreement and (ii) upon fair and reasonable terms no less favorable to the relevant Group
Member than it would obtain in a comparable arm’s length transaction with a Person that is not an
Affiliate as determined in good faith by the Borrower or the relevant Group Member and (b) with
respect to any Investment made pursuant to Section 6.8(t), (u) or (v) in, or any Acquisition of,
any Affiliate of any Significant Shareholder, such Investment or Acquisition shall be approved by a
majority of Disinterested Directors relative to such Investment or Acquisition. For the avoidance
of doubt, contemporaneous purchases and/or sales by a Group Member and an Affiliate of assets,
Capital Stock, bonds, notes, debentures or other debt securities, and bank loans, participations or
similar obligations at substantially the same price shall not be deemed transactions with an
Affiliate under this Agreement.

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          6.11 Sales And Leasebacks. Enter into any arrangement with any Person providing for
the leasing by any Group Member of real or personal property that has been or is to be sold or
transferred by such Group Member to such Person or to any other Person to whom funds have been or
are to be advanced by such Person on the security of such property or rental obligations of such
Group Member; provided that (i) the Group Members may consummate sale and leaseback transactions in
which the transferee is the Borrower or a Wholly Owned Subsidiary Guarantor, and any Subsidiary
which is not a Guarantor may consummate sale and leaseback transactions in which the transferor is
another Subsidiary which is not a Guarantor, and (ii) the Group Members may consummate other sale
and leaseback transactions in an amount not to exceed in the aggregate for all Group Members
$150,000,000.

          6.12 Swap Agreements. Enter into any Swap Agreement, except (a) Swap Agreements entered into to hedge or mitigate
risks in respect of changes in commodity prices or currency exchange rates to which any Group
Member has actual exposure and (b) Swap Agreements entered into in order to effectively cap, collar
or exchange interest rates (from fixed to floating rates, from floating to fixed rates, from one
floating rate to another floating rate or otherwise) with respect to any outstanding or prospective
interest-bearing liability or investment of any Group Member from time to time.

          6.13 Changes in Fiscal Periods. Permit the fiscal year of the Borrower to end on a
day other than December 31 or change the Borrower’s method of determining fiscal quarters.

          6.14 Negative Pledge Clauses. Enter into or suffer to exist or become effective any
agreement that prohibits or limits the ability of any Group Member to create, incur, assume or
suffer to exist any Lien upon any of its property or revenues, whether now owned or hereafter
acquired, other than (a) this Agreement and the other Loan Documents, (b) the Exit Facility
Agreement, (c) the Additional Liquidity Facility Agreement, (d) the Senior Subordinated Notes
Indenture, (e) any agreements governing any purchase money Liens or Capital Lease Obligations
otherwise permitted hereby (in which case, any prohibition or limitation shall only be effective
against the assets financed thereby), (f) any agreements with respect to Indebtedness incurred by
the Excluded Subsidiaries and permitted under Section 6.2 imposing any such prohibitions or
limitations on Excluded Subsidiaries (g) any agreement arising pursuant to the Company Voluntary
Arrangements, (h) any agreements binding any Person which becomes a Subsidiary or is merged into
any Group Member after the date of this Agreement, provided that such agreement was in
existence on the date such Person became a Subsidiary of, or merged into, such Group Member and was
not entered into in contemplation of such Person becoming a Subsidiary of, or merging into, such
Group Member, (i) any documentation governing Securitization Transactions permitted under Section
6.5(q), and (j) any agreements to which any Subsidiary that is not a wholly-owned Subsidiary is a
party that prohibit or limit the ability of such Subsidiary or any of its Subsidiaries to create,
incur, assume or suffer to exist any Lien upon any of its property or revenues.

          6.15 Clauses Restricting Subsidiary Distributions. Enter into or become effective any
consensual encumbrance or restriction on the ability of any Subsidiary to (a) make Restricted
Payments in respect of any Capital Stock of such Subsidiary held by, or pay any Indebtedness owed
to, any Group Member, (b) make loans or advances to, or other Investments

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in, any Group Member or
(c) transfer any of its assets to any Group Member, except for such encumbrances or restrictions
existing under or by reason of (i) any restrictions existing under the Loan Documents, (ii) any
restrictions existing under the Senior Subordinated Notes Indenture, (iii) any restrictions under
the Additional Liquidity Facility, (iv) any restrictions under the Exit Facility Agreement, (v) any
restriction that exists or may arise directly as a result of the Company Voluntary Arrangements,
(vi) any restrictions (other than those described in clauses (i) through (v)) in existence on the
date hereof), and (vii) any restrictions with respect to a Subsidiary imposed pursuant to an
agreement that has been
entered into in connection with the Disposition of all or substantially all of the Capital
Stock or assets of such Subsidiary, (viii) any restrictions relating to Excluded Subsidiaries
imposed in connection with the Indebtedness incurred by the Excluded Subsidiaries and permitted
under Sections 6.2, (ix) any restrictions contained in the terms of any Indebtedness permitted
under Section 6.2(s) or any other agreement binding any Person which becomes a Subsidiary or is
merged into any Group Member after the date of this Agreement, provided that such agreement
was in existence on the date such Person became a Subsidiary of, or merged into, such Group Member
and was not entered into in contemplation of such Person becoming a Subsidiary of, or merging into,
such Group Member, (x) any restrictions contained in the documents governing any Securitization
Transaction permitted under Section 6.5(q), and (xi) any restrictions contained in any agreements
to which any Subsidiary that is not a wholly-owned Subsidiary is a party so long as such
restrictions apply solely to such Subsidiary or any of its Subsidiaries.

          6.16 Lines of Business. Enter into any business, either directly or through any
Subsidiary, except for those businesses in which the Group Members are engaged on the date of this
Agreement or that are determined by the Board of Directors of the Borrower to be reasonably related
thereto.

          6.17 [Reserved].

          6.18 Positive EBITDA Variance. Use the 33 1/3% of Adjusted Positive EBITDA Variance
for any fiscal year of the Borrower not required to be applied to the Loans pursuant to Section
2.5(e) or not applied to consummate Permitted Open Market Purchases to the extent permitted under
Section 2.5(e), for purposes other than the general corporate purposes of the Group Members,
provided that in any fiscal year of the Borrower where the Loans are prepaid from Adjusted Excess
Cash Flow pursuant to Section 2.5(d), and so long as no Default or Event of Default has occurred
and is continuing, any Group Member may use such 33 1/3% of Adjusted Positive EBITDA Variance to
make, in such year or any other year thereafter, (i) Restricted Payments not otherwise permitted
under Section 6.6 or (ii) Capital Expenditures in such fiscal year in excess of the amounts
otherwise permitted under Section 6.7.

SECTION 7. EVENTS OF DEFAULT

          If any of the following events shall occur and be continuing:

          (a) the Borrower shall fail to pay any principal of any Loan when due in accordance with the
terms hereof; or the Borrower shall fail to pay any interest on any Loan, or any other amount
payable hereunder or under any other Loan Document, within three Business

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Days after any such
interest or other amount becomes due in accordance with the terms hereof; or

          (b) any Loan Party shall default in the observance or performance of any agreement contained
in clause (i) or (ii) of Section 5.4(a) (with respect to the Borrower only), Section 5.7(a) or
Article 6 of this Agreement; or

          (c) any Loan Party shall default in the observance or performance of any other agreement
contained in this Agreement or any other Loan Document (other than as provided in paragraphs (a)
through (c) of this Section 7.1), and such default shall continue unremedied for a period of 30
days after notice to the Borrower from the Administrative Agent or the Required Lenders; or

          (d) any Group Member shall (i) default in making any payment of any principal of any
Indebtedness (including any Guarantee Obligation, but excluding the Loans and Intercompany Loans)
on the scheduled or original due date with respect thereto, after giving effect to any applicable
period of grace, if any, provided in the instrument or agreement under which such Indebtedness was
created; or (ii) default in making any payment of any interest on any such Indebtedness beyond any
applicable period of grace, if any, provided in the instrument or agreement under which such
Indebtedness was created; or (iii) default in the observance or performance of any other agreement
or condition relating to any such Indebtedness or contained in any instrument or agreement
evidencing, securing or relating thereto, or any other event shall occur or condition exist, the
effect of which default or other event or condition is to cause, or to permit the holder or
beneficiary of such Indebtedness (or a trustee or agent on behalf of such holder or beneficiary) to
cause, with the giving of notice if required, such Indebtedness to become due prior to its stated
maturity or (in the case of any such Indebtedness constituting a Guarantee Obligation) to become
payable and any such default under the Exit Facility or the Additional Liquidity Facility shall
continue unremedied or unwaived for a period of thirty days; provided that a default, event or
condition described in clause (i), (ii) or (iii) of this paragraph (d) shall not at any time
constitute an Event of Default unless, at such time, one or more defaults, events or conditions of
the type described in clauses (i), (ii) or (iii) of this paragraph (d) shall have occurred and be
continuing with respect to Indebtedness the outstanding principal amount of which exceeds in the
aggregate (x) $20,000,000 in the case of any Indebtedness (other than Capital Leases or purchase
money Indebtedness) of any Loan Party or (y) $125,000,000 in the case of any Indebtedness of any
Group Member which is not a Loan Party or Capital Leases or purchase money Indebtedness of any Loan
Party; or

          (e) (i) (A) one or more Group Members which are not Loan Parties, together with the
Subsidiaries which have been liquidated or dissolved pursuant to Section 6.4(g), having assets with
an aggregate book value of at least 10% or (B) one or more Loan Parties having assets with an
aggregate book value of at least 1%, in each case, of the book value of the consolidated assets of
the Group Members, taken as a whole (as set forth in the most recent audited consolidated financial
statements of the Borrower that have been delivered pursuant to Section 5.1(a) or, until any
audited financial statements have been delivered pursuant to such Section, the Pro Forma Balance
Sheet) shall commence any case, proceeding or other action (A) under any existing or future law of
any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief
of debtors, seeking to have an order for relief

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entered with respect to it, or seeking to
adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment,
winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts,
or (B) seeking appointment of a receiver, trustee,
custodian, conservator or other similar official for it or for all or any substantial part of
its assets, or such Group Member or Group Members shall make a general assignment for the benefit
of its creditors; or (ii) there shall be commenced against such Group Member or Group Members any
case, proceeding or other action of a nature referred to in clause (i) above that (A) results in
the entry of an order for relief or any such adjudication or appointment or (B) remains
undismissed, undischarged or unbonded for a period of sixty (60) days; or (iii) there shall be
commenced against such Group Member or Group Members any case, proceeding or other action seeking
issuance of a warrant of attachment, execution, distraint or similar process against all or any
substantial part of its assets that results in the entry of an order for any such relief that shall
not have been vacated, discharged, or stayed or bonded pending appeal within 60 days from the entry
thereof; or (iv) such Group Member or Group Members shall take any action in furtherance of, or
indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause
(i), (ii), or (iii) above; or (v) such Group Member or Group Members shall generally not, or shall
be unable to, or shall admit in writing its inability to, pay its debts as they become due;
provided that no Event of Default shall have occurred under this paragraph as a result of any U.K.
Subsidiary being in U.K. Administration and being a debtor in a case pending under Chapter 11 of
the Bankruptcy Code, so long as such U.K. Administration and such case were each in effect on the
Closing Date; or

          (f) (i) any Person shall engage in any “prohibited transaction” (as defined in Section 406 of
ERISA or Section 4975 of the Code) involving any Plan, (ii) any “accumulated funding deficiency”
(as defined in Section 302 of ERISA), whether or not waived, shall exist with respect to any Plan
or any Lien in favor of the PBGC or a Plan shall arise on the assets of any Group Member or any
Commonly Controlled Entity, (iii) a Reportable Event shall occur with respect to, or proceedings
shall commence to have a trustee appointed, or a trustee shall be appointed, to administer or to
terminate, any Single Employer Plan, which Reportable Event or commencement of proceedings or
appointment of a trustee is, in the reasonable opinion of the Required Lenders, likely to result in
the termination of such Plan for purposes of Title IV of ERISA, (iv) any Single Employer Plan shall
terminate for purposes of Title IV of ERISA, (v) any Group Member or any Commonly Controlled Entity
shall, or in the reasonable opinion of the Required Lenders is likely to, incur any material
liability in connection with a withdrawal from, or the Insolvency or Reorganization of, a
Multiemployer Plan or (vi) any other event or condition shall occur or exist with respect to a
Plan; and in each case in clauses (i) through (v) above, such event or condition, together with all
other such events or conditions, if any, could, in the reasonable judgment of the Required Lenders,
reasonably be expected to have a Material Adverse Effect; or

          (g) one or more judgments or decrees (excluding any judgment or decree in connection with the
implementation of any Company Voluntary Arrangement or the Reorganization Plan) shall be entered
against (i) any Loan Party involving in the aggregate a liability (not paid or fully covered by
insurance as to which the relevant insurance company has acknowledged coverage) of $20,000,000 or
more, and all such judgments or decrees shall not have been vacated, discharged, stayed or bonded
pending appeal within 30 days from the entry

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thereof or (ii) any Group Member that is not a Loan
Party which, individually or in the aggregate for all such Group Members, could reasonably be
expected to have a Material Adverse Effect; or

          (h) (i) any of the Security Documents or the Intercreditor Agreement shall cease, for any
reason, to be in full force and effect, or any Loan Party or any Affiliate of any Loan Party or any
party to the Intercreditor Agreement shall so assert, or (ii) any Lien securing the Obligations
created by any of the Security Documents shall cease to be enforceable and of the same effect and
priority purported to be created thereby; or

          (i) any Guarantee shall cease, for any reason, to be in full force and effect or any Loan
Party or any Affiliate of any Loan Party shall so assert; or

          (j) a Change of Control shall occur; or

          (k) the Senior Subordinated Notes or any Permitted Subordinated Indebtedness, the guarantees
of the Senior Subordinated Indebtedness or any Permitted Subordinated Indebtedness or the Liens in
respect of the Senior Subordinated Notes or any Permitted Subordinated Indebtedness shall cease,
for any reason, to be subordinated to the Obligations, the obligations of the Guarantors under any
Guarantee or the Liens securing the Obligations granted pursuant to the Security Documents, as the
case may be;

then, and in any such event, (A) if such event is an Event of Default specified in clause (i) or
(ii) of paragraph (f) above with respect to the Borrower, automatically the Loans (with accrued
interest thereon) and all other amounts owing under this Agreement and the other Loan Documents
shall immediately become due and payable, and (B) if such event is any other Event of Default, with
the consent of the Required Lenders, the Administrative Agent may, or upon the request of the
Required Lenders, the Administrative Agent shall, by notice to the Borrower, declare the Loans
(with accrued interest thereon) and all other amounts owing under this Agreement and the other Loan
Documents to be due and payable forthwith, whereupon the same shall immediately become due and
payable. Except as expressly provided above in this Section 7.1, presentment, demand, protest and
all other notices of any kind are hereby expressly waived by the Borrower.

SECTION 8. THE ADMINISTRATIVE AGENT

          8.1 Appointment. Each Lender hereby irrevocably designates and appoints the
Administrative Agent as the agent of such Lender under this Agreement and the other Loan Documents,
and each such Lender irrevocably authorizes the Administrative Agent, in such capacity, to take
such action on its behalf under the provisions of this Agreement and the other Loan Documents and
to exercise such powers and perform such duties as are expressly delegated to the Administrative
Agent by the terms of this Agreement and the other Loan Documents, together with such other powers
as are reasonably incidental thereto. Notwithstanding any provision to the contrary elsewhere in
this Agreement, the Administrative Agent shall not have any duties or responsibilities, except
those expressly set forth herein, or any fiduciary relationship with any Lender, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against the Administrative Agent.

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          8.2 Delegation of Duties. The Administrative Agent may execute any of its duties under this Agreement and the other
Loan Documents by or through agents or attorneys in fact and shall be entitled to advice of counsel
concerning all matters pertaining to such duties. The Administrative Agent shall not be
responsible for the negligence or misconduct of any agents or attorneys in fact selected by it with
reasonable care.

          8.3 Exculpatory Provisions. Neither the Administrative Agent nor any of its officers,
directors, employees, agents, attorneys in fact or affiliates shall be (i) liable for any action
lawfully taken or omitted to be taken by it or such Person under or in connection with this
Agreement or any other Loan Document (except to the extent that any of the foregoing are found by a
final and nonappealable decision of a court of competent jurisdiction to have resulted from its or
such Person’s own gross negligence or willful misconduct) or (ii) responsible in any manner to any
of the Lenders for any recitals, statements, representations or warranties made by any Loan Party
or any officer thereof contained in this Agreement or any other Loan Document or in any
certificate, report, statement or other document referred to or provided for in, or received by the
Administrative Agent under or in connection with, this Agreement or any other Loan Document or for
the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or
any other Loan Document or for any failure of any Loan Party a party thereto to perform its
obligations hereunder or thereunder. The Administrative Agent shall not be under any obligation to
any Lender to ascertain or to inquire as to the observance or performance of any of the agreements
contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the
properties, books or records of any Loan Party.

          8.4 Reliance by Administrative Agent. The Administrative Agent shall be entitled to
rely, and shall be fully protected in relying, upon any instrument, writing, resolution, notice,
consent, certificate, affidavit, letter, telecopy, telex or teletype message, statement, order or
other document or conversation believed by it to be genuine and correct and to have been signed,
sent or made by the proper Person or Persons and upon advice and statements of legal counsel
(including counsel to the Borrower), independent accountants and other experts selected by the
Administrative Agent. The Administrative Agent may deem and treat the payee of any Note as the
owner thereof for all purposes unless a written notice of assignment, negotiation or transfer
thereof shall have been filed with the Administrative Agent. The Administrative Agent shall be
fully justified in failing or refusing to take any action under this Agreement or any other Loan
Document unless it shall first receive such advice or concurrence of the Required Lenders (or, if
so specified by this Agreement, all Lenders) as it deems appropriate or it shall first be
indemnified to its satisfaction by the Lenders against any and all liability and expense that may
be incurred by it by reason of taking or continuing to take any such action. The Administrative
Agent shall in all cases be fully protected in acting, or in refraining from acting, under this
Agreement and the other Loan Documents in accordance with a request of the Required Lenders (or, if
so specified by this Agreement, all Lenders), and such request and any action taken or failure to
act pursuant thereto shall be binding upon all the Lenders and all future holders of the Loans.

          8.5 Notice of Default. The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence
of any Default or Event of Default unless the Administrative Agent has received notice from a
Lender or the Borrower referring to this Agreement, describing such Default or Event of Default and
stating that such notice is a “notice

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of default”. In the event that the Administrative Agent
receives such a notice, the Administrative Agent shall give notice thereof to the Lenders. The
Administrative Agent shall take such action with respect to such Default or Event of Default as
shall be reasonably directed by the Required Lenders (or, if so specified by this Agreement, all
Lenders); provided that unless and until the Administrative Agent shall have received such
directions, the Administrative Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Default or Event of Default as it shall deem
advisable in the best interests of the Lenders.

          8.6 Non-Reliance on Administrative Agent and Other Lenders. Each Lender expressly
acknowledges that neither the Administrative Agent nor any of its officers, directors, employees,
agents, attorneys in fact or affiliates have made any representations or warranties to it and that
no act by the Administrative Agent hereafter taken, including any review of the affairs of a Loan
Party or any affiliate of a Loan Party, shall be deemed to constitute any representation or
warranty by the Administrative Agent to any Lender. Each Lender represents to the Administrative
Agent that it has, independently and without reliance upon the Administrative Agent or any other
Lender, and based on such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, operations, property, financial and other
condition and creditworthiness of the Loan Parties and their affiliates and made its own decision
to make its Loans hereunder and enter into this Agreement. Each Lender also represents that it
will, independently and without reliance upon the Administrative Agent or any other Lender, and
based on such documents and information as it shall deem appropriate at the time, continue to make
its own credit analysis, appraisals and decisions in taking or not taking action under this
Agreement and the other Loan Documents, and to make such investigation as it deems necessary to
inform itself as to the business, operations, property, financial and other condition and
creditworthiness of the Loan Parties and their affiliates. Except for notices, reports and other
documents expressly required to be furnished to the Lenders by the Administrative Agent hereunder,
the Administrative Agent shall not have any duty or responsibility to provide any Lender with any
credit or other information concerning the business, operations, property, condition (financial or
otherwise), prospects or creditworthiness of any Loan Party or any affiliate of a Loan Party that
may come into the possession of the Administrative Agent or any of its officers, directors,
employees, agents, attorneys in fact or affiliates.

          8.7 Indemnification. The Lenders agree to indemnify the Administrative Agent in its
capacity as such (to the extent not reimbursed by the Borrower and without limiting the obligation
of the Borrower to do so), ratably according to their respective Term Percentages in effect on the
date on which indemnification is sought under this Section 8.7 (or, if indemnification is sought
after the date upon which the Loans shall have been paid in full, ratably in accordance with such
Term Percentages immediately prior to such date), from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any
kind whatsoever that may at any time (whether before or after the payment of the Loans) be
imposed on, incurred by or asserted against the Administrative Agent in any way relating to or
arising out of, this Agreement, any of the other Loan Documents or any documents contemplated by or
referred to herein or therein or the transactions contemplated hereby or thereby or any action
taken or omitted by the Administrative Agent under or in connection with any of the foregoing;
provided that no Lender shall be liable for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions,

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judgments, suits, costs, expenses or
disbursements that are found by a final and nonappealable decision of a court of competent
jurisdiction to have resulted from the Administrative Agent’s gross negligence or willful
misconduct. The agreements in this Section 8.7 shall survive the payment of the Loans and all
other amounts payable hereunder.

          8.8 Administrative Agent in Its Individual Capacity. The Administrative Agent and its
affiliates may make loans to, accept deposits from and generally engage in any kind of business
with any Loan Party as though the Administrative Agent were not the Administrative Agent. With
respect to its Loans made or renewed by it, the Administrative Agent shall have the same rights and
powers under this Agreement and the other Loan Documents as any Lender and may exercise the same as
though it were not the Administrative Agent, and the terms “Lender” and “Lenders” shall include the
Administrative Agent in its individual capacity.

          8.9 Successor Administrative Agent. The Administrative Agent may resign as
Administrative Agent upon 30 days’ notice to the Lenders and the Borrower. If the Administrative
Agent shall resign as Administrative Agent under this Agreement and the other Loan Documents, then
the Required Lenders shall appoint a successor agent for the Lenders, which successor agent shall
(unless an Event of Default shall have occurred and be continuing) be subject to approval by the
Borrower (which approval shall not be unreasonably withheld or delayed), whereupon such successor
agent shall succeed to the rights, powers and duties of the Administrative Agent, and the term
“Administrative Agent” shall mean such successor agent effective upon such appointment and
approval, and the former Administrative Agent’s rights, powers and duties as Administrative Agent
shall be terminated, without any other or further act or deed on the part of such former
Administrative Agent or any of the parties to this Agreement or any holders of the Loans. If no
successor agent has accepted appointment as Administrative Agent by the date that is 30 days
following a retiring Administrative Agent’s notice of resignation, the retiring Administrative
Agent’s resignation shall nevertheless thereupon become effective, and the Lenders shall assume and
perform all of the duties of the Administrative Agent hereunder until such time, if any, as the
Required Lenders appoint a successor agent as provided for above. After any retiring
Administrative Agent’s resignation as Administrative Agent, the provisions of this Section 8 shall
inure to its benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent under this Agreement and the other Loan Documents.

SECTION 9. MISCELLANEOUS

          9.1 Amendments and Waivers. Neither this Agreement, any other Loan Document, nor any terms hereof or thereof may be
amended, supplemented or modified except in accordance with the provisions of this Section 9.1.
The Required Lenders and each Loan Party party to the relevant Loan Document may, or, with the
written consent of the Required Lenders, the Administrative Agent and each Loan Party party to the
relevant Loan Document may, from time to time, (a) enter into written amendments, supplements or
modifications hereto and to the other Loan Documents for the purpose of adding any provisions to
this Agreement or the other Loan Documents or changing in any manner the rights of the Lenders or
of the Loan Parties hereunder or thereunder or (b) waive, on such terms and conditions as the
Required Lenders or the Administrative Agent, as the case may be, may specify in such instrument,
any of the requirements of this Agreement or the other Loan Documents or any Default or Event of

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Default and its consequences; provided, however, that no such waiver and no such amendment,
supplement or modification shall (i) forgive the principal amount or extend the final scheduled
date of maturity of any Loan, extend the scheduled date of any amortization payment in respect of
any Loan, reduce the stated rate of any interest or fee payable hereunder (except (x) in connection
with the waiver of applicability of any post-default increase in interest rates (which waiver shall
be effective with the consent of the Required Lenders) and (y) that any amendment or modification
of defined terms used in the financial covenants in this Agreement shall not constitute a reduction
in the rate of interest or fees for purposes of this clause (i)) or extend the scheduled date of
any payment thereof, in each case without the written consent of each Lender directly affected
thereby; (ii) eliminate or reduce the voting rights of any Lender under this Section 9.1 without
the written consent of such Lender; (iii) reduce any percentage specified in the definition of
Required Lenders, consent to the assignment or transfer by the Borrower of any of its rights and
obligations under this Agreement and the other Loan Documents, release all or substantially all of
the Collateral or release all or substantially all of the Guarantors from their obligations under
the Guarantees, in each case without the written consent of all Lenders; or (iv) amend, modify or
waive any provision of Section 8 without the written consent of the Administrative Agent. Any such
waiver and any such amendment, supplement or modification shall apply equally to each of the
Lenders and shall be binding upon the Loan Parties, the Lenders, the Administrative Agent and all
future holders of the Loans. In the case of any waiver, the Loan Parties, the Lenders and the
Administrative Agent shall be restored to their former position and rights hereunder and under the
other Loan Documents, and any Default or Event of Default waived shall be deemed to be cured and
not continuing; but no such waiver shall extend to any subsequent or other Default or Event of
Default, or impair any right consequent thereon.

          9.2 Notices. All notices, requests and demands to or upon the respective parties
hereto to be effective shall be in writing (including by telecopy), and, unless otherwise expressly
provided herein, shall be deemed to have been duly given or made when delivered, or three Business
Days after being deposited in the mail, postage prepaid, or, in the case of telecopy notice, when
received, addressed as follows in the case of the Borrower and the Administrative Agent, and as set
forth in an administrative questionnaire delivered to the Administrative Agent in the case of the
Lenders, or to such other address as may be hereafter notified by the respective parties hereto:

	 	 	 
	Borrower:

	 	Federal-Mogul Corporation
	 

	 	World Headquarters
	 

	 	26555 Northwestern Highway
	 

	 	Southfield, Michigan 48033
	 

	 	Attention: David A. Bozynski
	 

	 	Telecopy: 248-354-6746
	 

	 	Telephone: 248-354-9469
	 
	 	 
	 

	 	With a copy to: Robert L. Katz
	 

	 	Telecopy: 248-354-2659
	 

	 	Telephone: 248-354-9924

78

 

	 	 	 
	Administrative Agent:

	 	JPMorgan Chase Bank, N.A.
	 

	 	277 Park Avenue
	 

	 	8th Floor Mail Code NY1-2134
	 

	 	New York, New York 10172
	 

	 	Attention: Ms. Ann Kurinskas
	 

	 	Telecopy: 212-622-4527
	 

	 	Telephone: 212-622-4556/7

provided that any notice, request or demand to or upon the Administrative Agent or the
Lenders shall not be effective until received.

          Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative Agent; provided
that the foregoing shall not apply to notices pursuant to Section 2 unless otherwise agreed by the
Administrative Agent and the applicable Lender. The Administrative Agent or the Borrower may, in
its discretion, agree to accept notices and other communications to it hereunder by electronic
communications pursuant to procedures approved by it, provided that approval of such procedures may
be limited to particular notices or communications.

          9.3 No Waiver; Cumulative Remedies. No failure to exercise and no delay in
exercising, on the part of the Administrative Agent or any Lender, any right, remedy, power or
privilege hereunder or under the other Loan Documents shall operate as a waiver thereof; nor shall
any single or partial exercise of any right, remedy, power or privilege hereunder preclude any
other or further exercise thereof or the exercise of any other right, remedy, power or privilege.
The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any
rights, remedies, powers and privileges provided by law.

          9.4 Survival of Representations and Warranties. All representations and warranties
made hereunder, in the other Loan Documents and in any document, certificate or statement delivered
pursuant hereto or in connection herewith shall survive the execution and delivery of this
Agreement and the making of the Loans hereunder.

          9.5 Payment of Expenses and Taxes. The Borrower agrees (a) to pay or reimburse the Administrative Agent for all its
reasonable
out of pocket costs and expenses incurred in connection with the development, preparation and
execution of, and any amendment, supplement or modification to, this Agreement and the other Loan
Documents and any other documents prepared in connection herewith or therewith, and the
consummation and administration hereof and of the transactions contemplated hereby and thereby,
including the reasonable fees and disbursements of counsel and financial advisors to the
Administrative Agent and filing and recording fees and expenses, with statements with respect to
the foregoing to be submitted to the Borrower prior to the Closing Date (in the case of amounts to
be paid on the Closing Date) and from time to time thereafter on a periodic basis as the
Administrative Agent shall deem appropriate, (b) to pay or reimburse each Lender and the
Administrative Agent for all its reasonable costs and expenses incurred in connection with the
enforcement or preservation of any rights under this Agreement, the other Loan Documents and any
such other documents, including the reasonable fees and disbursements of counsel (including the
allocated fees and expenses of in-house counsel) to each Lender and of counsel and financial
advisors to the Administrative Agent, (c) to pay, indemnify, and hold each Lender and the
Administrative Agent

79

 

harmless from, any and all recording and filing fees and any and all
liabilities with respect to, or resulting from any delay in paying, stamp, excise and other taxes,
if any, that may be payable or determined to be payable in connection with the execution and
delivery of, or consummation or administration hereof and of any of the transactions contemplated
by, or any amendment, supplement or modification of, or any waiver or consent under or in respect
of, this Agreement, the other Loan Documents and any such other documents, and (d) to pay,
indemnify, and hold each Lender and the Administrative Agent and their respective officers,
directors, employees, affiliates, agents and controlling persons (each, an “Indemnitee”) harmless
from and against any and all other liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to
the execution, delivery, enforcement, performance and administration of this Agreement, the other
Loan Documents and any such other documents, including any of the foregoing relating to the use of
proceeds of the Loans or the violation of, noncompliance with or liability under, any Environmental
Law applicable to the operations of any Group Member or any property at any time owned, leased, or
in any way used by any Group Member or any entity for which any of them is alleged to be
responsible, and the reasonable fees and expenses of legal counsel in connection with claims,
actions or proceedings by any Indemnitee against any Loan Party under any Loan Document (all the
foregoing in this clause (d), collectively, the “Indemnified Liabilities”), provided that the
Borrower shall have no obligation hereunder to any Indemnitee with respect to Indemnified
Liabilities to the extent such Indemnified Liabilities are found by a final and nonappealable
decision of a court of competent jurisdiction to have resulted from the gross negligence or willful
misconduct of such Indemnitee. Without limiting the foregoing, and to the extent permitted by
applicable law, the Borrower agrees not to assert and to cause its Subsidiaries not to assert, and
hereby waives and agrees to cause its Subsidiaries to waive, all rights for contribution or any
other rights of recovery with respect to all claims, demands, penalties, fines, liabilities,
settlements, damages, costs and expenses of whatever kind or nature, under or related to
Environmental Laws, that any of them might have by statute or otherwise against any Indemnitee.
All amounts due under this Section 9.5 shall be payable not later than 10 days after written demand
therefor. Statements payable by the Borrower pursuant to this Section 9.5 shall be submitted to
the Borrower at the address of the Borrower set forth in Section 9.2, or to such other Person or
address as may be hereafter
designated by the Borrower in a written notice to the Administrative Agent. The agreements in
this Section 9.5 shall survive repayment of the Loans and all other amounts payable hereunder.

          9.6 Successors and Assigns; Participations and Assignments.

          (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted hereby, except that (i) the
Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without
the prior written consent of each Lender (and any attempted assignment or transfer by the Borrower
without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer
its rights or obligations hereunder except in accordance with this Section 9.6.

          (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign
to one or more assignees other than to any Group Member (each, an “Assignee”) all or a portion of
its rights and obligations under this Agreement (including all or a

80

 

portion of the Loans at the
time owing to it) with the prior written consent (such consent not to be unreasonably withheld) of:

     (A) the Borrower, provided that no consent of the Borrower
shall be required for an assignment to a Lender, an Affiliate of a Lender or
an Approved Fund (as defined below) or, if an Event of Default has occurred
and is continuing, any other Person; and

     (B) the Administrative Agent, provided that no consent of the
Administrative Agent shall be required for an assignment of all or any
portion of a Loan to a Lender, an Affiliate of a Lender or an Approved Fund.

     (ii) Assignments shall be subject to the following additional conditions:

     (A) except in the case of an assignment to a Lender, an affiliate of a
Lender or an Approved Fund or an assignment of the entire remaining amount
of the assigning Lender’s Loans, the amount of the Loans of the assigning
Lender subject to each such assignment (determined as of the date the
Assignment and Assumption with respect to such assignment is delivered to
the Administrative Agent) shall not be less than $1,000,000 unless each of
the Borrower and the Administrative Agent otherwise consent, provided that
(1) no such consent of the Borrower shall be required if an Event of Default
has occurred and is continuing and (2) such amounts shall be aggregated in
respect of each Lender and its affiliates or Approved Funds, if any;

     (B) the amount of the Loans of the assigning Lender, after giving
effect to any such assignment, shall not be less than $5,000,000,
provided that such amounts shall be aggregated in respect of each
Lender and its affiliates or Approved Funds, if any;

     (C) the parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Assumption, together with a
processing and recordation fee of $3,500;

     (D) the Assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an administrative questionnaire; and

     (E) if any rights and obligations under this Agreement are assigned to
an Affiliate of a Group Member or of a Significant Shareholder, the vote of
such Affiliate as a Lender under this Agreement shall not be counted for
purposes of any determination by the Required Lenders as set forth in the
definition thereof.

          For the purposes of this Section 9.6, the term “Approved Fund” has the following meaning:

81

 

          “Approved Fund” means any Person (other than a natural person) that is engaged in
making, purchasing, holding or investing in bank loans and similar extensions of credit in the
ordinary course of its business and that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a
Lender.

     (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv)
below, from and after the effective date specified in each Assignment and Assumption
the Assignee thereunder shall be a party hereto and, to the extent of the interest
assigned by such Assignment and Assumption, have the rights and obligations of a
Lender under this Agreement, and the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Assumption, be released from
its obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under this
Agreement, such Lender shall cease to be a party hereto but shall continue to be
entitled to the benefits of Sections 2.12, 2.13, 2.14 and 9.5). Any assignment or
transfer by a Lender of rights or obligations under this Agreement that does not
comply with this Section 9.6 shall be treated for purposes of this Agreement as a
sale by such Lender of a participation in such rights and obligations in accordance
with paragraph (c) of this Section 9.6.

     (iv) The Administrative Agent shall maintain at one of its offices a copy of
each Assignment and Assumption delivered to it and a register for the recordation of
the names and addresses of the Lenders, and principal amount of the Loans owing to,
each Lender pursuant to the terms hereof from time to time (the “Register”).
The entries in the Register shall be conclusive, and the Borrower, the
Administrative Agent and the Lenders may treat each Person whose name is recorded in
the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary. The Register shall be available for inspection by the Borrower and any
Lender, at any reasonable time and from time to time upon reasonable prior notice.

     (v) Upon its receipt of a duly completed Assignment and Assumption executed by
an assigning Lender and an Assignee, the Assignee’s completed administrative
questionnaire (unless the Assignee shall already be a Lender hereunder), the
processing and recordation fee referred to in paragraph (b) of this Section 9.6 and
any written consent to such assignment required by paragraph (b) of this Section
9.6, the Administrative Agent shall accept such Assignment and Assumption and record
the information contained therein in the Register. No assignment shall be effective
for purposes of this Agreement unless it has been recorded in the Register as
provided in this paragraph. Any assignment or transfer of all or part of a Loan
evidenced by a Note shall be registered on the Register only upon surrender for
registration of assignment or transfer of the Note evidencing such Loan, accompanied
by a duly executed Assignment and Assumption.

82

 

          (c) (i) Any Lender may, without the consent of the Borrower or the Administrative Agent, sell
participations to one or more banks or other entities (a “Participant”) in all or a portion
of such Lender’s rights and obligations under this Agreement (including all or a portion of the
Loans owing to it); provided that (A) such Lender’s obligations under this Agreement shall
remain unchanged, (B) such Lender shall remain solely responsible to the other parties hereto for
the performance of such obligations and (C) the Borrower, the Administrative Agent and the other
Lenders shall continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement. Any agreement pursuant to which a Lender
sells such a participation shall provide that such Lender shall retain the sole right to enforce
this Agreement and to approve any amendment, modification or waiver of any provision of this
Agreement; provided that such agreement may provide that such Lender will not, without the consent
of the Participant, agree to any amendment, modification or waiver that (1) requires the consent of
each Lender directly affected thereby pursuant to the proviso to the second sentence of Section 9.1
and (2) directly affects such Participant. Subject to paragraph (c)(ii) of this Section 9.6, the
Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.12, 2.13 and
2.14 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant
to paragraph (b) of this Section 9.6. To the extent permitted by law, each Participant also shall
be entitled to the benefits of Section 9.7(b) as though it were a Lender, provided such Participant
shall be subject to Section 9.7(a) as though it were a Lender.

          (ii) A Participant shall not be entitled to receive any greater payment under Section 2.12 or
2.13 than the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to such Participant is
made with the Borrower’s prior written consent. Any Participant that is a Non-U.S. Lender shall
not be entitled to the benefits of Section 2.13 unless such Participant complies with Sections
2.13(d) and (e).

          (d) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement to secure obligations of such Lender, including any pledge or
assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any
such pledge or assignment of a security interest; provided that no such pledge or assignment of a
security interest shall release a Lender from any of its obligations hereunder or substitute any
such pledgee or Assignee for such Lender as a party hereto.

          (e) The Borrower, upon receipt of written notice from the relevant Lender, agrees to issue
Notes to any Lender requiring Notes to facilitate transactions of the type described in paragraph
(d) above.

          9.7 Adjustments; Set off.

          (a) Except to the extent that this Agreement expressly provides for payments to be allocated
to a particular Lender, if any Lender (a “Benefitted Lender”) shall receive any payment of all or
part of the Obligations owing to it, or receive any collateral in respect thereof (whether
voluntarily or involuntarily, by set off, pursuant to events or proceedings of the nature referred
to in Section 7(f), or otherwise), in a greater proportion than any such payment to or collateral
received by any other Lender, if any, in respect of the Obligations owing to such other

83

 

Lender,
such Benefitted Lender shall purchase for cash from the other Lenders a participating interest in
such portion of the Obligations owing to each such other Lender, or shall provide such other
Lenders with the benefits of any such collateral, as shall be necessary to cause such Benefitted
Lender to share the excess payment or benefits of such collateral ratably with each of the Lenders;
provided, however, that if all or any portion of such excess payment or benefits is thereafter
recovered from such Benefitted Lender, such purchase shall be rescinded, and the purchase price and
benefits returned, to the extent of such recovery, but without interest.

          (b) In addition to any rights and remedies of the Lenders provided by law, each Lender shall
have the right, without prior notice to the Borrower, any such notice being expressly waived by the
Borrower to the extent permitted by applicable law, upon any amount becoming due and payable by the
Borrower hereunder (whether at the stated maturity, by acceleration or otherwise), to set off and
appropriate and apply against such amount any and all deposits (general or special, time or demand,
provisional or final), in any currency, and any other credits, indebtedness or claims, in any
currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at
any time held or owing by such Lender or any branch or agency thereof to or for the credit or the
account of the Borrower. Each Lender agrees promptly to notify the Borrower and the Administrative
Agent after any such setoff and application made by such Lender, provided that the failure to give
such notice shall not affect the validity of such setoff and application.

          9.8 Counterparts. This Agreement may be executed by one or more of the parties to
this Agreement on any number of separate counterparts, and all of said counterparts taken together
shall be deemed to constitute one and the same instrument. Delivery of an executed signature
page of this Agreement by facsimile transmission shall be effective as delivery of a manually
executed counterpart hereof. A set of the copies of this Agreement signed by all the parties shall
be lodged with the Borrower and the Administrative Agent.

          9.9 Severability. Any provision of this Agreement that is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.

          9.10 Integration. This Agreement and the other Loan Documents represent the entire
agreement of the Borrower, the Administrative Agent and the Lenders with respect to the subject
matter hereof and thereof, and there are no promises, undertakings, representations or warranties
by the Administrative Agent or any Lender relative to the subject matter hereof not expressly set
forth or referred to herein or in the other Loan Documents.

          9.11 GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE
LAW OF THE STATE OF NEW YORK.

          9.12 Submission To Jurisdiction; Waivers. The Borrower hereby irrevocably and
unconditionally:

84

 

          (a) submits for itself and its property in any legal action or proceeding relating to this
Agreement and the other Loan Documents to which it is a party, or for recognition and enforcement
of any judgment in respect thereof, to the non exclusive general jurisdiction of the courts of the
State of New York, the courts of the United States for the Southern District of New York, and
appellate courts from any thereof;

          (b) consents that any such action or proceeding may be brought in such courts and waives any
objection that it may now or hereafter have to the venue of any such action or proceeding in any
such court or that such action or proceeding was brought in an inconvenient court and agrees not to
plead or claim the same;

          (c) agrees that service of process in any such action or proceeding may be effected by mailing
a copy thereof by registered or certified mail (or any substantially similar form of mail), postage
prepaid, to the Borrower at its address set forth in Section 9.2 or at such other address of which
the Administrative Agent shall have been notified pursuant thereto;

          (d) agrees that nothing herein shall affect the right to effect service of process in any
other manner permitted by law or shall limit the right to sue in any other jurisdiction; and

          (e) waives, to the maximum extent not prohibited by law, any right it may have to claim or
recover in any legal action or proceeding referred to in this Section 9.12 any special, exemplary,
punitive or consequential damages.

          9.13 Acknowledgements. The Borrower hereby acknowledges that:

          (a) it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Loan Documents;

          (b) neither the Administrative Agent nor any Lender has any fiduciary relationship with or
duty to the Borrower arising out of or in connection with this Agreement or any of the other Loan
Documents, and the relationship between Administrative Agent and Lenders, on one hand, and the
Borrower, on the other hand, in connection herewith or therewith is solely that of debtor and
creditor; and

          (c) no joint venture is created hereby or by the other Loan Documents or otherwise exists by
virtue of the transactions contemplated hereby among the Lenders or among the Borrower and the
Lenders.

          9.14 No Requirement of Lender Signatures. Each Lender listed on Schedule 1.1A shall
be a party hereto in accordance with the Reorganization Plan and, pursuant to the Reorganization
Plan, is bound hereby notwithstanding the failure of any such Lender to execute a signature page
hereto.

          9.15 Releases of Guarantees and Liens.

          (a) Notwithstanding anything to the contrary contained herein or in any other Loan Document,
the Administrative Agent is hereby irrevocably authorized by each Lender (without requirement of
notice to or consent of any Lender except as expressly required by

85

 

Section 9.1) to take any action
requested by the Borrower having the effect of releasing any Collateral or guarantee obligations
(i) to the extent necessary to permit consummation of any transaction not prohibited by any Loan
Document or that has been consented to in accordance with Section 9.1 or (ii) under the
circumstances described in paragraph (b) below.

          (b) At such time as the Loans and the other obligations under the Loan Documents shall have
been paid in full, the Collateral shall be released from the Liens created by the Security
Documents, and the Security Documents and all obligations (other than those expressly stated to
survive such termination) of the Administrative Agent and each Loan Party under the Security
Documents shall terminate, all without delivery of any instrument or performance of any act by any
Person.

          9.16 Confidentiality. Each of the Administrative Agent and the Lenders agrees to keep
confidential all non-public information provided to it by any Loan Party, the Administrative Agent
or any Lender or any advisor to any of the foregoing pursuant to or in connection with this
Agreement that is designated in writing by the provider thereof as confidential; provided that
nothing herein shall prevent the Administrative Agent or any Lender from disclosing any such
information (a) to the Administrative Agent, any other Lender or any affiliate thereof, (b) subject
to an agreement to comply with the provisions of this Section 9.16, to any actual or prospective
Transferee, (c) to its employees, directors, agents, attorneys, accountants and other professional
advisors or those of any of its affiliates, (d) upon the request or demand of any Governmental
Authority, (e) in response to any order of any court or other Governmental Authority or as may
otherwise be required pursuant to any Requirement of Law, (f) if requested or required to do so in
connection with any litigation or similar proceeding, provided that prior notice of such disclosure
shall be given to the Borrower, if possible, (g) that has been publicly disclosed, (h) to the
National Association of Insurance Commissioners or any similar organization or any nationally
recognized rating agency that requires access to information about a Lender’s investment portfolio
in connection with ratings issued with respect to such Lender, or (i) in connection with the
exercise of any remedy hereunder or under any other Loan Document. Notwithstanding anything herein
to the contrary, any party subject to confidentiality obligations hereunder or under any other
related document (and any employee, representative, or other agent of such party) may disclose to
any and all Persons, without limitation of any kind, such party’s U.S. federal income tax treatment
and U.S. federal income tax structure of the transactions contemplated by this Agreement relating
to such party and all materials of any kind (including opinions or other tax analyses) that are
provided to it relating to such tax treatment and tax structure. However, no such party shall
disclose any information relating to such tax treatment or tax structure to the extent
nondisclosure is reasonably necessary in order to comply with applicable securities law.

          9.17 WAIVERS OF JURY TRIAL. THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

86

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by their proper and duly authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	FEDERAL-MOGUL CORPORATION

 	 
	 	By:  	/s/ David A. Bozynski
 	 
	 	 	Name:  	David A. Bozynski 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	JPMORGAN CHASE BANK, N.A., as Administrative Agent and as a Lender

 	 
	 	By:  	/s/Ann Kurinskas
 	 
	 	 	Name:  	Ann Kurinskas 	 
	 	 	Title:  	Managing Directorexv4w13

 

Exhibit 4.13

EXECUTION COPY

FEDERAL-MOGUL CORPORATION, as Issuer,

THE DOMESTIC SUBSIDIARY GUARANTORS (as defined herein),

U.S. BANK NATIONAL ASSOCIATION, as Trustee

INDENTURE

Dated as of December 27, 2007

$305,236,000

Senior Subordinated Third Priority Secured Notes due 2018

 

 

CROSS REFERENCE SHEET

THIS CROSS REFERENCE SHEET SHOWS THE LOCATION IN THE INDENTURE OF THE PROVISIONS INSERTED PURSUANT
TO SECTION 310-318(a), INCLUSIVE, OF THE TRUST INDENTURE ACT OF 1939.

	 	 	 	 	 
	TRUST INDENTURE	 	 	 	 
	ACT SECTION	 	 	 	INDENTURE SECTION
	SECTION 310
	 	(a)(1)	 	7.8, 7.9, 7.10
	 
	 	(a)(2)	 	7.10
	 
	 	(a)(3)	 	7.13
	 
	 	(a)(4)	 	Not applicable
	 
	 	(a)(5)	 	7.10
	 
	 	(b)	 	7.8, 7.10, 7.11
	 
	 	(c)	 	Not applicable
	SECTION 311
	 	(a)	 	7.11
	 
	 	(b)	 	7.11
	 
	 	(c)	 	Not applicable
	SECTION 312
	 	(a)	 	2.5
	 
	 	(b)	 	14.3
	 
	 	(c)	 	14.3
	SECTION 313
	 	(a)	 	7.6
	 
	 	(b)(1)	 	10.3, 10.5
	 
	 	(b)(2)	 	7.6
	 
	 	(c)	 	7.6
	 
	 	(d)	 	7.6
	SECTION 314
	 	(a)	 	4.2, 4.4, 10.2
	 
	 	(b)	 	10.2
	 
	 	(c)(1)	 	4.4, 10.3, 14.4
	 
	 	(c)(2)	 	10.3, 14.4
	 
	 	(c)(3)	 	14.4
	 
	 	(d)	 	10.2, 10.3, 10.5, 10.6
	 
	 	(e)	 	4.4, 10.2, 14.4, 14.5
	 
	 	(f)	 	4.4, 14.4
	SECTION 315
	 	(a)	 	7.1
	 
	 	(b)	 	7.5
	 
	 	(c)	 	7.1
	 
	 	(d)	 	7.1
	 
	 	(e)	 	6.11
	SECTION 316
	 	(a)(last sentence)	 	14.6
	 
	 	(a)(1)(A)	 	6.5
	 
	 	(a)(1)(B)	 	6.4
	 
	 	(a)(2)	 	Not applicable
	 
	 	(b)	 	6.7, 8.4
	 
	 	(c)	 	2.14
	SECTION 317
	 	(a)(1)	 	6.8
	 
	 	(a)(2)	 	6.9
	 
	 	(b)	 	2.4
	SECTION 318
	 	(a)	 	14.1

 

			
	This Cross Reference Sheet shall not, for any purpose, be deemed to be a part of the Indenture.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	 	Page	 
	ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE	 	 	2	 
	SECTION 1.1.
	 	Definitions	 	 	2	 
	SECTION 1.2.
	 	Other Definitions	 	 	38	 
	SECTION 1.3.
	 	Incorporation by Reference of Trust Indenture Act	 	 	39	 
	SECTION 1.4.
	 	Rules of Construction	 	 	39	 
	 
	 	 	 	 	 	 
	ARTICLE 2 THE NOTES	 	 	40	 
	SECTION 2.1.
	 	Dating; Incorporation of Form in Indenture	 	 	40	 
	SECTION 2.2.
	 	Execution and Authentication	 	 	40	 
	SECTION 2.3.
	 	Agents	 	 	41	 
	SECTION 2.4.
	 	Paying Agent to Hold Money in Trust	 	 	42	 
	SECTION 2.5.
	 	Noteholder Lists	 	 	42	 
	SECTION 2.6.
	 	Transfer and Exchange	 	 	42	 
	SECTION 2.7.
	 	Replacement Notes	 	 	43	 
	SECTION 2.8.
	 	Outstanding Notes	 	 	43	 
	SECTION 2.9.
	 	Temporary Notes	 	 	44	 
	SECTION 2.10.
	 	Cancellation	 	 	44	 
	SECTION 2.11.
	 	Defaulted Interest	 	 	44	 
	SECTION 2.12.
	 	Deposit of Moneys	 	 	44	 
	SECTION 2.13.
	 	CUSIP Number	 	 	45	 
	SECTION 2.14.
	 	Record Date	 	 	45	 
	SECTION 2.15.
	 	Payments to Holders	 	 	45	 
	SECTION 2.16.
	 	Closing Deliverables	 	 	46	 
	SECTION 2.17.
	 	Book-Entry Provisions for Global Notes	 	 	48	 
	 
	 	 	 	 	 	 
	ARTICLE 3 REDEMPTION	 	 	49	 
	SECTION 3.1.
	 	Notices to Trustee	 	 	49	 
	SECTION 3.2.
	 	Selection by Trustee of Notes to Be Redeemed	 	 	49	 
	SECTION 3.3.
	 	Notice of Redemption	 	 	49	 
	SECTION 3.4.
	 	Effect of Notice of Redemption	 	 	50	 
	SECTION 3.5.
	 	Deposit of Redemption Price	 	 	51	 
	SECTION 3.6.
	 	Notes Redeemed in Part	 	 	51	 
	SECTION 3.7.
	 	Optional Redemption	 	 	51	 
	SECTION 3.8.
	 	Mandatory Redemption	 	 	51	 
	 
	 	 	 	 	 	 
	ARTICLE 4 COVENANTS	 	 	52	 
	SECTION 4.1.
	 	Payment of Notes	 	 	52	 
	SECTION 4.2.
	 	SEC Reporting	 	 	52	 
	SECTION 4.3.
	 	Waiver of Stay, Extension or Usury Laws	 	 	53	 
	SECTION 4.4.
	 	Compliance Certificates	 	 	53	 
	SECTION 4.5.
	 	Taxes	 	 	54	 
	SECTION 4.6.
	 	Corporate Existence	 	 	54	 
	SECTION 4.7.
	 	Maintenance of Insurance	 	 	54	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	 	Page	 
	SECTION 4.8.
	 	Inspection of Books and Records; Compliance with Laws	 	 	55	 
	SECTION 4.9.
	 	Additional Pledges	 	 	55	 
	SECTION 4.10.
	 	Limitation on Additional Indebtedness	 	 	55	 
	SECTION 4.11.
	 	Limitations on Additional Liens	 	 	59	 
	SECTION 4.12.
	 	Limitation on Certain Asset Sales	 	 	59	 
	SECTION 4.13.
	 	Limitation on Dividends and Other Payment Restrictions Affecting Subsidiaries	 	 	61	 
	SECTION 4.14.
	 	Limitation on Restricted Payments	 	 	62	 
	SECTION 4.15.
	 	Limitations on Investments	 	 	65	 
	SECTION 4.16.
	 	Limitation on Transactions with Affiliates	 	 	65	 
	SECTION 4.17.
	 	Sales and Leasebacks	 	 	66	 
	SECTION 4.18.
	 	Lines of Business	 	 	66	 
	SECTION 4.19.
	 	Limitation on Status as Investment Company	 	 	66	 
	SECTION 4.20.
	 	[Reserved]	 	 	66	 
	SECTION 4.21.
	 	Further Assurances to the Trustee	 	 	66	 
	SECTION 4.22.
	 	Future Subsidiary Guarantors	 	 	66	 
	SECTION 4.23.
	 	Designation of Subsidiaries and Unrestricted Subsidiaries	 	 	67	 
	SECTION 4.24.
	 	Restriction on Sale and Issuance of Certain Subsidiary Capital Stock	 	 	68	 
	SECTION 4.25.
	 	Note Documents	 	 	68	 
	SECTION 4.26.
	 	Subsidiary Guarantees	 	 	69	 
	SECTION 4.27.
	 	Change of Control	 	 	69	 
	SECTION 4.28.
	 	Future Pledges of Collateral to Secure PIK Interest	 	 	70	 
	SECTION 4.29.
	 	Limitation on Layering	 	 	70	 
	 
	 	 	 	 	 	 
	ARTICLE 5 SUCCESSOR CORPORATION	 	 	71	 
	SECTION 5.1.
	 	Merger, Consolidation or Sale of Assets	 	 	71	 
	SECTION 5.2.
	 	Successor Person Substituted	 	 	72	 
	 
	 	 	 	 	 	 
	ARTICLE 6 DEFAULTS AND REMEDIES	 	 	72	 
	SECTION 6.1.
	 	Events of Default	 	 	72	 
	SECTION 6.2.
	 	Acceleration	 	 	75	 
	SECTION 6.3.
	 	Other Remedies	 	 	76	 
	SECTION 6.4.
	 	Waiver of Defaults and Events of Default	 	 	76	 
	SECTION 6.5.
	 	Control by Majority	 	 	76	 
	SECTION 6.6.
	 	Limitation on Suits	 	 	77	 
	SECTION 6.7.
	 	Rights of Holders to Receive Payment	 	 	77	 
	SECTION 6.8.
	 	Collection Suit by Trustee	 	 	77	 
	SECTION 6.9.
	 	Trustee May File Proofs of Claim	 	 	77	 
	SECTION 6.10.
	 	Priorities	 	 	78	 
	SECTION 6.11.
	 	Undertaking for Costs	 	 	78	 
	SECTION 6.12.
	 	Restoration of Rights and Remedies	 	 	78	 
	SECTION 6.13.
	 	Delay or Omission Not Waiver	 	 	79	 
	 
	 	 	 	 	 	 
	ARTICLE 7 TRUSTEE	 	 	79	 
	SECTION 7.1.
	 	Duties of Trustee	 	 	79	 
	SECTION 7.2.
	 	Rights of Trustee	 	 	80	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	 	Page	 
	SECTION 7.3.
	 	Individual Rights of Trustee	 	 	81	 
	SECTION 7.4.
	 	Trustee’s Disclaimer	 	 	81	 
	SECTION 7.5.
	 	Notice of Defaults	 	 	81	 
	SECTION 7.6.
	 	Reports by Trustee to Holders	 	 	81	 
	SECTION 7.7.
	 	Compensation and Indemnity	 	 	82	 
	SECTION 7.8.
	 	Replacement of Trustee	 	 	82	 
	SECTION 7.9.
	 	Successor Trustee by Consolidation, Merger or Conversion	 	 	83	 
	SECTION 7.10.
	 	Eligibility; Disqualification	 	 	83	 
	SECTION 7.11.
	 	Preferential Collection of Claims Against Company	 	 	84	 
	SECTION 7.12.
	 	Paying Agents	 	 	84	 
	SECTION 7.13.
	 	Co-Trustee and Separate Trustees	 	 	84	 
	 
	 	 	 	 	 	 
	ARTICLE 8 AMENDMENTS, SUPPLEMENTS AND WAIVERS	 	 	85	 
	SECTION 8.1.
	 	Without Consent of Holders	 	 	85	 
	SECTION 8.2.
	 	With Consent of Holders	 	 	87	 
	SECTION 8.3.
	 	TIA Compliance	 	 	88	 
	SECTION 8.4.
	 	Revocation and Effect of Consents	 	 	88	 
	SECTION 8.5.
	 	Notation on or Exchange of Notes	 	 	88	 
	SECTION 8.6.
	 	Trustee to Sign Amendments, etc.	 	 	89	 
	 
	 	 	 	 	 	 
	ARTICLE 9 DISCHARGE OF INDENTURE; DEFEASANCE	 	 	89	 
	SECTION 9.1.
	 	Discharge of Indenture	 	 	89	 
	SECTION 9.2.
	 	Legal Defeasance	 	 	90	 
	SECTION 9.3.
	 	Covenant Defeasance	 	 	90	 
	SECTION 9.4.
	 	Conditions to Legal Defeasance or Covenant Defeasance	 	 	90	 
	SECTION 9.5.
	 	Deposited Money and U.S. Government Obligations to Be Held in Trust; Other Miscellaneous Provisions	 	 	92	 
	SECTION 9.6.
	 	Reinstatement	 	 	92	 
	SECTION 9.7.
	 	Moneys Held by Paying Agent	 	 	93	 
	SECTION 9.8.
	 	Moneys Held by Trustee	 	 	93	 
	SECTION 9.9.
	 	[Reserved]	 	 	93	 
	 
	 	 	 	 	 	 
	ARTICLE 10 COLLATERAL AND SECURITY	 	 	94	 
	SECTION 10.1.
	 	Security	 	 	94	 
	SECTION 10.2.
	 	Certificates, Opinions and Recording	 	 	94	 
	SECTION 10.3.
	 	Release of Collateral	 	 	95	 
	SECTION 10.4.
	 	Protection of the Trust Estate	 	 	97	 
	SECTION 10.5.
	 	Certificates of the Company	 	 	97	 
	SECTION 10.6.
	 	Certificates of the Trustee	 	 	98	 
	SECTION 10.7.
	 	Authorization of Actions to be Taken by the Trustee Under the Security Documents	 	 	98	 
	SECTION 10.8.
	 	Authorization of Receipt of Funds by the Trustee Under the Security Documents	 	 	98	 
	SECTION 10.9.
	 	Termination of Security Interest	 	 	99	 
	SECTION 10.10.
	 	Cooperation of Trustee	 	 	99	 
	SECTION 10.11.
	 	Collateral Trustee	 	 	99	 
	SECTION 10.12.
	 	Agents Under Security Documents	 	 	99	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE 11 DOMESTIC SUBSIDIARY GUARANTEE OF NOTES	 	 	100	 
	SECTION 11.1.
	 	Domestic Subsidiary Guarantee	 	 	100	 
	SECTION 11.2.
	 	Execution and Delivery of Supplemental Indentures	 	 	101	 
	SECTION 11.3.
	 	Limitation of Domestic Subsidiary Guarantee	 	 	102	 
	SECTION 11.4.
	 	Release of Domestic Subsidiary Guarantor	 	 	102	 
	SECTION 11.5.
	 	Subrogation	 	 	103	 
	SECTION 11.6.
	 	Benefits Acknowledged	 	 	103	 
	SECTION 11.7.
	 	Evidence of Domestic Subsidiary Guarantees	 	 	103	 
	 
	 	 	 	 	 	 
	ARTICLE 12 SUBORDINATION	 	 	103	 
	SECTION 12.1.
	 	Notes Subordinated to Designated Senior Debt	 	 	103	 
	SECTION 12.2.
	 	No Payment on Notes in Certain Circumstances	 	 	104	 
	SECTION 12.3.
	 	Payment Over of Proceeds upon Dissolution, Etc.	 	 	105	 
	SECTION 12.4.
	 	Payments May Be Paid Prior to Dissolution	 	 	106	 
	SECTION 12.5.
	 	Subrogation	 	 	107	 
	SECTION 12.6.
	 	Obligations of the Company Unconditional	 	 	107	 
	SECTION 12.7.
	 	Notice to Trustee	 	 	107	 
	SECTION 12.8.
	 	Reliance on Judicial Order or Certificate of Liquidating Agent	 	 	108	 
	SECTION 12.9.
	 	Trustee’s Relation to Designated Senior Debt	 	 	108	 
	SECTION 12.10.
	 	Subordination Rights Not Impaired by Acts or Omissions of the Company or Holders of Designated Senior Debt	 	 	108	 
	SECTION 12.11.
	 	Noteholders Authorize Trustee To Effectuate Subordination of Notes	 	 	109	 
	SECTION 12.12.
	 	This Article 12 Not To Prevent Events of Default	 	 	109	 
	SECTION 12.13.
	 	Trustee’s Compensation Not Prejudiced	 	 	109	 
	 
	 	 	 	 	 	 
	ARTICLE 13 SUBORDINATION OF THE DOMESTIC SUBSIDIARY GUARANTEES	 	 	110	 
	SECTION 13.1.
	 	Domestic Subsidiary Guarantees Subordinated to Guarantor Senior Debt	 	 	110	 
	SECTION 13.2.
	 	Guarantees in Certain Circumstances	 	 	110	 
	SECTION 13.3.
	 	Payment Over of Proceeds upon Dissolution, Etc.	 	 	111	 
	SECTION 13.4.
	 	Payments May Be Paid Prior to Dissolution	 	 	112	 
	SECTION 13.5.
	 	Subrogation	 	 	113	 
	SECTION 13.6.
	 	Obligations of each Domestic Subsidiary Guarantor Unconditional	 	 	113	 
	SECTION 13.7.
	 	Notice to Trustee	 	 	113	 
	SECTION 13.8.
	 	Reliance on Judicial Order or Certificate of Liquidating Agent	 	 	114	 
	SECTION 13.9.
	 	Trustee’s Relation to Guarantor Senior Debt	 	 	114	 
	SECTION 13.10.
	 	Subordination Rights Not Impaired by Acts or Omissions of the Company, the Domestic Subsidiary Guarantors or Holders of Guarantor Senior Debt	 	 	114	 
	SECTION 13.11.
	 	Holders Authorize Trustee To Effectuate Subordination of the Domestic Subsidiary Guarantees	 	 	115	 
	SECTION 13.12.
	 	This Article 13 Not To Prevent Events of Default	 	 	115	 
	SECTION 13.13.
	 	Trustee’s Compensation Not Prejudiced	 	 	116	 
	 
	 	 	 	 	 	 
	ARTICLE 14 MISCELLANEOUS	 	 	116	 
	SECTION 14.1.
	 	Conflict with the TIA	 	 	116	 

iv

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 14.2.
	 	Notices	 	 	116	 
	SECTION 14.3.
	 	Communication by Holders with Other Holders	 	 	117	 
	SECTION 14.4.
	 	Certificate and Opinion as to Conditions Precedent	 	 	117	 
	SECTION 14.5.
	 	Statements Required in Certificate and Opinion	 	 	118	 
	SECTION 14.6.
	 	When Treasury Notes Disregarded	 	 	118	 
	SECTION 14.7.
	 	Rules by Trustee and Agents	 	 	118	 
	SECTION 14.8.
	 	Business Days; Legal Holidays	 	 	118	 
	SECTION 14.9.
	 	Governing Law	 	 	119	 
	SECTION 14.10.
	 	No Adverse Interpretation of Other Agreements	 	 	119	 
	SECTION 14.11.
	 	No Recourse Against Others	 	 	119	 
	SECTION 14.12.
	 	Successors	 	 	119	 
	SECTION 14.13.
	 	Multiple Counterparts	 	 	120	 
	SECTION 14.14.
	 	Table of Contents, Headings, etc.	 	 	120	 
	SECTION 14.15.
	 	Separability	 	 	120	 

EXHIBITS

	 	 	 
	Exhibit A

	 	Form of Note
	Exhibit B

	 	Form of Supplemental Indenture for Future Guarantors
	Exhibit C

	 	Collateral Trust Agreement
	Exhibit D

	 	Form of Officers’ Certificate Pursuant to Section 4.4(c)
	Exhibit E

	 	Collateral Agreement
	Exhibit F

	 	Form of Mortgages
	Exhibit G

	 	Senior Loan Agreement
	Exhibit H

	 	Form of Global Note Legend
	Exhibit I

	 	Intercreditor Agreement
	Exhibit J

	 	Exit Facility Agreement
	Exhibit K

	 	Registration Rights Agreement
	Exhibit L

	 	Form of Legal Opinion
	Exhibit M

	 	Form of Foreign Subsidiary Guarantee

SCHEDULES

	 	 	 
	Schedule 1

	 	List of Domestic Subsidiary Guarantors
	Schedule 2

	 	Foreign Pledge Agreements
	Schedule 3

	 	Joint Ventures
	Schedule 4

	 	Mortgaged Property
	Schedule 5

	 	Existing Indebtedness
	Schedule 6

	 	Intercompany Loans Owed to U.K. Subsidiaries
	Schedule 7

	 	List of Foreign Subsidiary Guarantors
	Schedule 8

	 	Restructuring Foreign Subsidiaries

v

 

          THIS INDENTURE is dated as of December 27, 2007 (the “Effective Date”), among FEDERAL-MOGUL
CORPORATION, a Delaware corporation, as issuer (the “Company”), the DOMESTIC SUBSIDIARY GUARANTORS
listed on Schedule 1 hereto (the “Domestic Subsidiary Guarantors”) and U.S. BANK NATIONAL
ASSOCIATION, a United States banking corporation, as trustee (the “Trustee”).

RECITALS

          WHEREAS, on October 1, 2001 (the “Petition Date”), the Company and certain of its domestic
Subsidiaries (collectively, the “U.S. Debtors”) filed voluntary petitions under Chapter 11 of Title
11 of the United States Code (the “Bankruptcy Law”) with the United States Bankruptcy Court for the
District of Delaware (the “Bankruptcy Court”) and continued in the possession of their assets and
in the management of their businesses pursuant to Sections 1107 and 1108 of the Bankruptcy Law;

          WHEREAS, on November 21, 2006, the U.S. Debtors, together with certain subsidiaries of the
Company organized under the laws of the United Kingdom (collectively, the “Debtors”), filed the
Reorganization Plan (as defined herein);

          WHEREAS, on November 8, 2007, the Bankruptcy Court entered the Confirmation Order (as defined
herein);

          WHEREAS, on November 13, 2007, the District Court (as defined herein) affirmed the
Confirmation Order;

          WHEREAS, in connection with the confirmation and implementation of the Reorganization Plan,
each in partial satisfaction of the Bank Claims and Surety Claims (as each is defined in the
Reorganization Plan), the Company is issuing the Notes (as defined herein) to holders of the Bank
Claims and the Surety Claims;

          WHEREAS, the Company has duly authorized the creation of this issue of the Notes and, to
provide therefore, the Company has duly authorized the execution and delivery of this Indenture;

          WHEREAS, all things necessary to make the Notes, when executed by the Company and
authenticated and delivered hereunder and duly issued by the Company, the valid obligations of the
Company, and to make this Indenture a valid and binding agreement of the Company, in accordance
with their and its terms, have been done;

          WHEREAS, each of the Guarantors has duly authorized its Guarantee (as defined herein) of the
Notes and, to provide therefore, each Guarantor has duly authorized the execution and delivery of
this Indenture or the Foreign Subsidiary Guarantee (as defined herein), as applicable; and

          WHEREAS, all things necessary to make the Guarantees, when the Notes have been authenticated
and delivered hereunder and duly issued by the Company, the valid and binding obligations of the
Guarantors, and to make this Indenture or the Foreign Subsidiary

 

 

Guarantee, as applicable, a valid agreement of the Guarantors, in accordance with their terms,
have been done.

          NOW, THEREFORE, THIS INDENTURE WITNESSETH:

          For and in consideration of the premises and the acquisition of the Notes for the Holders
thereof, it is mutually agreed, for the equal and ratable benefit of all Holders of the Notes, as
follows:

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

          SECTION 1.1.   Definitions. All terms defined in the Reorganization Plan shall have
such defined meanings when used herein or in any Exhibit hereto unless otherwise defined herein or
therein. As used in this Indenture, the following terms shall have the following meanings:

     “Acquired Indebtedness” means Indebtedness of a Person existing at the time such
Person becomes a Subsidiary or assumed in connection with an Asset Acquisition from such Person.

     “Acquisition Indebtedness” means Indebtedness incurred by the Company or by a
Subsidiary after the Effective Date the proceeds of which are used for an Asset Acquisition.

     “Additional Liquidity Facility” means the credit or loan facility or facilities
provided to one or more other Group Members, and any refinancing, refunding, renewal or extension
thereof in accordance with Section 6.2(v) of the Senior Loan Agreement in effect as of the date
hereof.

     “Additional Liquidity Facility Indebtedness” means the following obligations, whether
outstanding on the Effective Date or thereafter incurred: all Indebtedness and other monetary
obligations of the Company or any Subsidiary of the Company under or in respect of the Additional
Liquidity Facility or any Interest Rate Agreement, Currency Agreement or Swap Agreement related to
the Additional Liquidity Facility, whether for principal, interest (including interest accruing
after the filing of a petition by or against the Company or any Subsidiary of the Company under any
Bankruptcy Laws, whether or not such interest is allowed as a claim after such filing in any
proceeding under such law), fees, expenses, indemnification or otherwise.

     “Adjusted Excess Cash Flow” has the meaning set forth in the Intercreditor Agreement.

     “Adjusted Positive EBITDA Variance” has the meaning set forth in the Intercreditor
Agreement.

     “Affiliate” means, as to any Person, any other Person that, directly or indirectly, is
in control of, is controlled by, or is under common control with, such Person. For purposes of
this definition, “control” of a Person means the power, directly or indirectly, to direct or cause
the direction of the management and policies of such Person, whether by contract or otherwise.

2

 

     “Agent” means any Registrar, Paying Agent, co-registrar or agent for service of
notices and demands.

     “Anticipated Japanese Consolidation” means, with respect to three of the Japanese
manufacturing, technical and distribution facilities of the Company and its Subsidiaries, that are
related primarily to the Company’s and its Subsidiaries’ System Protection Group and Aftermarket
operations, the anticipated consolidation of such facilities into one facility that will be located
in Japan.

     “Applicable Amount” means (a) with respect to Adjusted Excess Cash Flow for any fiscal
year, the applicable amount thereof required to be applied to the Notes hereunder determined
pursuant to Section 4.4(a)(i) of the Intercreditor Agreement and (b) with respect to Adjusted
Positive EBITDA Variance for any fiscal year, the applicable amount thereof required to be applied
to the Notes hereunder determined pursuant to Section 4.4(a)(ii) of the Intercreditor Agreement.

     “Asset Acquisition” means (a) an Investment by the Company or any Subsidiary of the
Company in any other Person pursuant to which such Person shall become a Subsidiary of the Company,
or shall be merged with or into the Company or any Subsidiary of the Company, (b) the acquisition
by the Company or any Subsidiary of the Company of the assets of any Person (other than a
Subsidiary of the Company) which constitute all or substantially all of the assets of such Person
or (c) the acquisition by the Company or any Subsidiary of the Company of any division or line of
business of any Person (other than a Subsidiary of the Company).

     “Asset Sale” means the direct or indirect sale, transfer, issuance, conveyance, lease,
sub-lease (as lessor or sublessor) (other than operating leases entered into in the ordinary course
of business pursuant to ordinary business terms), assignment or other disposition (including,
without limitation, by Condemnation) and any merger or consolidation of any Subsidiary of the
Company with or into another Person (other than the Company or any Wholly-Owned Subsidiary of the
Company) of (a) any Capital Stock in any Subsidiary, (b) real property owned by the Company or any
Subsidiary thereof, or a division, line of business or comparable business segment of the Company
or any Subsidiary thereof or (c) other property, assets or rights (including, without limitation,
leasehold rights) of the Company, any Subsidiary thereof or any division, line of business of the
Company or any Subsidiary thereof; provided, however, that Asset Sales shall not
include:

     (i) dispositions of assets in a single transaction or series of related
transactions that yield gross proceeds to any Group Member (valued at the initial
principal amount thereof in the case of non-cash proceeds consisting of notes or
other debt securities and valued at fair market value in the case of other non-cash
proceeds) of less than or equal to $1,000,000;

     (ii) the disposition of obsolete or worn-out property in the ordinary course of
business;

     (iii) the sale of inventory in the ordinary course of business and dispositions
of Cash Equivalents in the ordinary course of business;

3

 

     (iv) the disposition by any Subsidiary of any or all its assets (including,
without limitation, transfers of intercompany loans or equity Investments) to the
Company or any Wholly-Owned Subsidiary that is a Guarantor or the disposition of any
or all of the assets of any Subsidiary that is not a Guarantor to any other
Subsidiary;

     (v) the liquidation or dissolution of any Subsidiary that has disposed of all
its assets as permitted under this Indenture or which otherwise has no assets;

     (vi) sales, issuances, leases, conveyances, transfers, assignments or other
dispositions by the Company or a Subsidiary as a result of the implementation of the
Reorganization Plan and the Tax Restructuring;

     (vii) the liquidation of any Joint Venture provided that the assets and
liabilities thereof are distributed to the owners of such Joint Venture, pro rata,
in accordance with such owners’ respective equity interests in such Joint Venture,
provided, further, that Net Cash Proceeds are applied in accordance
with Section 4.12;

     (viii) any Subsidiary that is not a Guarantor may be liquidated or dissolved so
long as the aggregate book value of the assets of all Subsidiaries that have been
dissolved or liquidated pursuant to this clause (viii) shall be less than 10% of the
book value of the consolidated assets of the Group Members, taken as a whole (as set
forth in the most recent audited consolidated financial statements of the Company
delivered pursuant to Section 4.2);

     (ix) sales of Receivables, equipment and related assets (including contract
rights) of the type specified in the definition of “Qualified Securitization
Transaction” to a Securitization Entity;

     (x) Sale and Leaseback Transactions (A) consummated by Group Members in which
the transferee is the Company or a Wholly Owned Subsidiary that is a Guarantor, and
any Subsidiary which is not a Guarantor may consummate Sale and Leaseback
Transactions in which the transferor is another Subsidiary which is not a Guarantor
or (B) other Sale and Leaseback Transactions consummated by Group Members in an
amount not to exceed in the aggregate for all Group Members $150,000,000;

     (xi) for purposes of Section 4.12 only, the making of a Permitted Investment or
a disposition subject to or permitted by Section 4.14;

     (xii) without limiting the carve out for ordinary course operating leases set
forth in this definition, (a) operating leases to the Company and the Guarantors,
(b) operating leases to Joint Ventures of assets at a fair market value in an
aggregate amount not to exceed at any date the Joint Venture Basket then in effect
and (c) operating leases to Excluded Subsidiaries of assets at a fair market

4

 

value in an aggregate amount not to exceed at any date the Intercompany Basket
then in effect;

     (xiii) sales, conveyances, transfers, assignments or other dispositions by the
Company or a Subsidiary of (a) non-exclusive licenses and sublicenses of
Intellectual Property issued to the Company or any Subsidiary in the ordinary course
of business in a manner consistent with past practices of the Company and its
Subsidiaries and (ii) exclusive licenses and sublicenses of Intellectual Property
issued to the Company or any Subsidiary in the ordinary course of business in a
manner consistent with past practices of the Company and its Subsidiaries so long as
such license is exclusive only as to geographic area or use;

     (xiv) transactions complying with Section 5.1;

     (xv) issuance or sale of options to acquire Capital Stock of any Subsidiary to
such Subsidiary’s officers or employees pursuant to such Subsidiary’s employee stock
option or benefit plans provided that such options only vest upon a change
of control of or initial public offering by such Subsidiary and the exercise of all
such options will not result in a Change of Control of such Subsidiary;

     (xvi) without limiting the carve out for ordinary course operating leases set
forth in this definition sub-leases of leased real estate entered into by the
Company or any of its Subsidiaries in the ordinary course of business
provided that such lease is subordinated to any Mortgage on the affected
real estate and entered into by the Company or such Subsidiary, as the case may be,
in the ordinary course of business consistent with past practices;

     (xvii) dispositions in connection with Permitted Liens;

     (xviii) the sale or issuance of any Subsidiary’s Capital Stock to the Company
or any Wholly Owned Subsidiary that is a Guarantor or the sale or issuance of any
Excluded Subsidiary’s Capital Stock to any other Excluded Subsidiary;

     (xix) dispositions of Receivables pursuant to Factoring Arrangements, so long
as, on the last day of each calendar month, the aggregate amount of Receivables that
have been disposed of pursuant thereto and that are then outstanding shall not
exceed the Factoring Basket then in effect;

     (xx) any “Permitted Asset Sales” as defined in the Senior Loan Agreement as in
effect on the date hereof provided that the Net Cash Proceeds thereof are
applied in accordance with Section 4.12;

     (xxi) dispositions in connection with the U.K. Dissolution or the Company
Voluntary Arrangements;

5

 

     (xxii) dispositions constituting Investments permitted by Section 4.15, and any
Investment expressly permitted by Section 4.15 may be structured as a merger,
consolidation or amalgamation;

     (xxiii) transfers of Receivables and related rights by F-M Canada to the
Company;

     (xxiv) involuntary dispositions consisting of property or casualty events or
condemnation proceedings;

     (xxv) dispositions of in-plant maintenance, repair and operating and perishable
tooling operations to third parties in connection with the outsourcing and such
operations; and

     (xxvi) the Wagner Lighting Divestiture.

     “Bankruptcy Court” shall have the meaning as defined in the Recitals.

     “Bankruptcy Law” means Title 11, U.S. Code or any similar Federal or state law for the
relief of debtors as in effect from time to time.

     “Blockage Period” shall have the meaning provided in Section 12.2(a).

     “Board of Directors” means, as to any Person, the board of directors or any duly
authorized committee thereof of such Person or, if such Person is a partnership (or other
non-corporate Person), of the managing general partner or partners (or Persons serving an analogous
function) of such Person.

     “Board Resolution” means, as to any Person, a copy of a resolution certified pursuant
to an Officers’ Certificate to have been duly adopted by the Board of Directors of such Person, and
to be in full force and effect, and, if required hereunder, delivered to the Trustee.

     “Business Day” shall have the meaning provided in Section 14.8.

     “Capital Expenditures” for any period, with respect to any Person, means the aggregate
of all expenditures by such Person and its Subsidiaries for the acquisition or leasing (pursuant to
a capital lease) of fixed or capital assets or additions to equipment (including replacements,
capitalized repairs and improvements during such period) that should be capitalized under GAAP on a
consolidated balance sheet of such Person and its Subsidiaries.

     “Capital Lease Obligations” means as to any Person, the obligations of such Person to
pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real
or personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP and, for the purposes
of this Indenture, the amount of such obligations at any time shall be the capitalized amount
thereof at such time determined in accordance with GAAP.

6

 

     “Capital Stock” means any and all shares, interests, participations or other
equivalents (however designated) of capital stock of a corporation, any and all equivalent
ownership interests in a Person (other than a corporation) and any and all warrants, rights or
options to purchase any of the foregoing.

     “Cash Equivalents” means (a) marketable direct obligations issued by, or
unconditionally guaranteed by, the United States government or issued by any agency thereof and
backed by the full faith and credit of the United States, in each case maturing within one year
from the date of acquisition; (b) certificates of deposit, time deposits, eurodollar time deposits
or overnight bank deposits having maturities of one year or less from the date of acquisition
issued by any commercial bank organized under the laws of the United States or any state thereof
having combined capital and surplus of not less than $500,000,000; (c) commercial paper of an
issuer rated at least A-1 by S&P or P-1 by Moody’s, or carrying an equivalent rating by a
nationally recognized rating agency, and maturing within one year from the date of acquisition; (d)
repurchase obligations of any commercial bank satisfying the requirements of clause (b) of this
definition, having a term of not more than 30 days, with respect to securities issued or fully
guaranteed or insured by the United States government; (e) securities with maturities of one year
or less from the date of acquisition issued or fully guaranteed by any state, commonwealth or
territory of the United States, by any political subdivision or taxing authority of any such state,
commonwealth or territory or by any foreign government, the securities of which state,
commonwealth, territory, political subdivision, taxing authority or foreign government (as the case
may be) are rated at least A by S&P or A by Moody’s; (f) securities with maturities of one year or
less from the date of acquisition backed by standby letters of credit issued by any commercial bank
satisfying the requirements of clause (b) of this definition; (g) money market mutual or similar
funds that invest exclusively in assets satisfying the requirements of clauses (a) through (f) of
this definition; (h) money market funds that (i) comply with the criteria set forth in SEC Rule
2a-7 under the Investment Company Act of 1940, as amended, (ii) are rated AAA by S&P and Aaa by
Moody’s and (iii) have portfolio assets of at least $5,000,000,000; (i) debt securities of an
issuer rated at least A-1 by S&P or P-1 by Moody’s, or carrying an equivalent rating by a
nationally recognized rating agency; or (j) solely with respect to any Foreign Subsidiary, in
addition to the investments described in clauses (a) through (i) of this definition, any investment
of the type described in clause (a) of this definition issued or unconditionally guaranteed by any
sovereign nation in which such Foreign Subsidiary conducts any operations, any investment of the
type and maturity described in clause (b) of this definition issued by any commercial bank
organized under the laws of any country in which such Foreign Subsidiary conducts any operations,
any investment of the type and maturity described in clause (c) or clause (e) of this definition
that has ratings issued by any internationally recognized rating agency equivalent to those set
forth in such clause and any investment of the type described in clause (g) of this definition that
satisfies the requirements of any of the other investments described in this clause (j).

     “Casualty” with respect to any Collateral, means loss of, damage to or destruction of
all or any part of such Collateral.

     “Change of Control” means the occurrence of any one of the following events after the
Effective Date:

7

 

     (a) at any time any “person” or “group” (as such terms are used in Sections 13(d) and
14(d) of the Exchange Act) other than Permitted Holders shall become the “beneficial owner”
(as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act), directly or indirectly, of
more than 50% of the aggregate outstanding Class A Common Stock and Class B Common Stock; or

     (b) the sale, lease, transfer, conveyance or other disposition (other than by way of
merger or consolidation), in one or a series of related transactions, of all or
substantially all of the assets of the Company and its Subsidiaries taken as a whole to any
“person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act); or

     (c) the adoption by the stockholders of the Company of a plan or proposal for the
liquidation or dissolution of the Company; or

     (d) at any time during which Thornwood holds any Class A Common Stock, (i) the
aggregate amount of Class A Common Stock held by Thornwood shall be less than 66 2/3% of the
aggregate amount of Class A Common Stock held by Thornwood on the Effective Date and (ii) a
Person or group (other than the Permitted Holders) shall be the beneficial owner of at least
35% of the aggregate outstanding Class A Common Stock and Class B Common Stock; or

     (e) at any time (i) the majority of the seats on the Board of Directors of the Company
is occupied by Persons who were neither (x) nominated or appointed by the Board of Directors
of the Company as of the Effective Date nor (y) appointed or nominated by directors
described in clause (x) and (ii) a Person or group (other than the Permitted Holders) shall
be the beneficial owner of at least 35% of the aggregate outstanding Class A Common Stock
and Class B Common Stock.

     For the avoidance of doubt, in no event shall any direct or indirect transfer of any Class A
Common Stock or any other Capital Stock of the Company, by Thornwood or any of its Affiliates to
any Affiliate of Thornwood or to Thornwood, give rise to or be deemed a “Change of Control”
hereunder.

     “Class A Common Stock” means the Class A Common Stock, par value $0.01 per share, of
the Company.

     “Class B Common Stock” means the Class B Common Stock, par value $0.01 per share, of
the Company.

     “Collateral” means all property of the Company and its Subsidiaries, now owned or
hereafter acquired, upon which a Lien is purported to be created by any Security Document.

     “Collateral Agreement” means the Collateral Agreement to be executed and delivered by
the Company and each Guarantor, substantially in the form of Exhibit E.

     “Collateral Proceeds Amount” shall have the meaning set forth in Section 4.12(iii).

8

 

     “Collateral Trust Agreement” means a Collateral Trust Agreement to be executed and
delivered by the Company, each Guarantor and the Collateral Trustee, substantially in the form of
Exhibit C.

     “Collateral Trustee” means Citibank, N.A., in its capacity as collateral trustee under
the Collateral Trust Agreement, together with any of its successors.

     “Company” means the party named as such in this Indenture until a successor replaces
it pursuant to this Indenture and thereafter means such successor.

     “Company Request” means any written request signed in the name of the Company by any
two of the following: the Chief Executive Officer; the President; any Vice President; the Chief
Financial Officer; the Treasurer; or the Secretary or any Assistant Secretary (but not both the
Secretary and any Assistant Secretary) of the Company.

     “Company Voluntary Arrangements” means, collectively, (a) the proposals dated June 23,
2006 for company voluntary arrangements in respect of T&N Limited, a company incorporated in
England and Wales and a Subsidiary of the Company, and forty-eight other U.K. Subsidiaries which
are Group Members, and (b) the proposals dated June 23, 2006 for company voluntary arrangements in
respect of Federal-Mogul Global Growth Limited, a company organized under the laws of England, and
F-M UK Holding Limited, a company organized under the laws of England, which proposals in each case
became effective in accordance with the laws of England and Wales on October 11, 2006.

     “Condemnation” means any taking of the Collateral or any part thereof, in or by
condemnation, expropriation or similar proceeding, eminent domain proceedings, seizure or
forfeiture, pursuant to any law, general or special, or by reason of the temporary requisition of
the use or occupancy of the Collateral, or any part thereof, by a Governmental Authority.

     “Condemnation Proceeds” means any awards, proceeds, payment or other compensation
arising out of a Condemnation less any and all payments made to the Collateral Trustee, the Senior
Loan Agent and the Exit Facility Agent under the Security Documents and the Collateral Agreement.

     “Confirmation Order” means that certain order confirming the Reorganization Plan
pursuant to applicable sections of the Bankruptcy Law entered by the Bankruptcy Court on November
8, 2007 and affirmed by the District Court on November 14, 2007.

     “Consolidated Amortization” means, for any period, the aggregate amount of scheduled
payments required to be made during such period on account of principal of Indebtedness of Group
Members (including without limitation, scheduled principal payments in respect of the term loans
under the Senior Loan Agreement and the Exit Facility Agreement and payments of revolving loans
accompanying scheduled reductions of the corresponding commitments, but excluding (x) any scheduled
principal payments in respect of Specified Indebtedness and (y) any final scheduled principal
payment in respect of Indebtedness (other than Specified Indebtedness); provided that for
purposes of calculating Consolidated Amortization for any period of four fiscal quarters which
includes the final scheduled principal payment of any such Indebtedness, Consolidated Amortization
shall be deemed to include an amount equal to the scheduled

9

 

principal payment immediately preceding such date of final scheduled principal payment in lieu
of the final scheduled principal payment).

     “Consolidated Debt Service Coverage Ratio” means with respect to any Person, on the
last day of the relevant four fiscal quarter period, the ratio of (a) the aggregate amount of
Consolidated EBITDA of such Person for the four full fiscal quarters immediately preceding the date
of the transaction (the “Transaction Date”) giving rise to the need to calculate the Consolidated
Debt Service Coverage Ratio (such four full fiscal quarter period being referred to herein as the
“Four Quarter Period”), less the aggregate amount actually paid by such Person and its
Subsidiaries during such period on account of Capital Expenditures (excluding the principal amount
of Indebtedness incurred in connection with such Capital Expenditures and any such Capital
Expenditures financed with the proceeds of any “Reinvestment Deferred Amount” (as defined in the
Senior Loan Agreement as in effect on the date hereof) or Positive EBITDA Variance) to (b) the sum
of (i) Consolidated Interest Expense for the Four Quarter Period ending on such day, (ii)
Consolidated Amortization of the Company for the Four Quarter Period ending on such day and (iii)
the aggregate amount of dividends paid on any class of the Company’s Capital Stock during the Four
Quarter Period ending on such day (collectively, “Consolidated Fixed Charges”). In addition to and
without limitation of the foregoing, for purposes of this definition, “Consolidated EBITDA” and
“Consolidated Fixed Charges” shall be calculated after giving effect on a pro forma basis for the
period of such calculation to, without duplication, (a) the incurrence of any Indebtedness of such
Person or any of its Subsidiaries (and the application of the net proceeds thereof) during the
period commencing on the first day of the Four Quarter Period to and including the Transaction Date
(the “Reference Period”), including, without limitation, the incurrence of the Indebtedness giving
rise to the need to make such calculation (and the application of the net proceeds thereof), as if
such incurrence (and application) occurred on the first day of the Four Quarter Period (it being
understood that with respect to Indebtedness incurred under a revolving facility used primarily to
finance working capital, the average principal amount outstanding during the Reference Period shall
be deemed to be the amount incurred during the Reference Period), and (b) any Asset Sales or Asset
Acquisitions (including, without limitation, any Asset Acquisition giving rise to the need to make
such calculation as a result of such Person or one of its Subsidiaries (including any Person who
becomes a Subsidiary as a result of the Asset Acquisition) incurring, assuming or otherwise being
liable for Acquired Indebtedness) occurring during the Four Quarter Period, as if such Asset Sale
or Asset Acquisition occurred on the first day of the Four Quarter Period. Furthermore, in
calculating “Consolidated Fixed Charges” for purposes of determining the denominator (but not the
numerator) of this “Consolidated Debt Service Coverage Ratio,” (i) interest on outstanding
Indebtedness determined on a fluctuating basis as of the Transaction Date and which will continue
to be so determined thereafter shall be deemed to have accrued at a fixed rate per annum equal to
the rate of interest on such Indebtedness in effect on the Transaction Date; and (ii) if interest
on Indebtedness actually incurred on the Transaction Date may optionally be determined at an
interest rate based upon a factor of a prime or similar rate, a eurocurrency interbank offered
rate, or other rates, then the interest rate in effect on the Transaction Date will be deemed to
have been in effect during the Four Quarter Period. In calculating the Consolidated Debt Service
Coverage Ratio and giving pro forma effect to the incurrence of Indebtedness during a Reference
Period, pro forma effect shall be given to use of proceeds thereof to permanently repay or retire
Indebtedness. If such Person or any of its Subsidiaries directly or indirectly guarantees
Indebtedness of a third Person, for purposes of determining the “Consolidated Debt Service Coverage
Ratio,” effect shall be given

10

 

to the incurrence of such guaranteed Indebtedness as if such Person or such Subsidiary had
directly incurred or otherwise assumed such guaranteed Indebtedness.

     “Consolidated EBITDA” means, for any period, Consolidated Net Income for such period
plus, without duplication and to the extent reflected as a charge in the statement of such
Consolidated Net Income for such period, the sum of (a) depreciation expense, (b) amortization
expense, (c) expenses or losses resulting from LIFO adjustments for inventory valuation in
accordance with GAAP, (d) income tax expense, (e) interest expense, (f) extraordinary losses, (g)
any non-recurring charge or restructuring charge which in accordance with GAAP is excluded from the
calculation of operating income, provided that the amounts referred to in this clause (g)
shall not exceed for any such charges which could reasonably be expected to become a cash
expenditure at any time (i) $60,000,000 in cash costs for 2007, (ii) $50,000,000 in cash costs for
2008 and (iii) $40,000,000 in cash costs for any fiscal year of the Company thereafter, (h) the
cumulative effect of any changes in accounting principles, as shown on the Company’s consolidated
statement of income for such period, (i) amounts payable under any key employee retention program
implemented during the Chapter 11 cases of the U.S. Debtors, (j) any pension contribution expense
in respect of defined benefit plans, (k) any non-recurring Chapter 11 expenses and (l) any other
non-cash charges not included in operating income or in clauses (f) or (g) and minus, to the extent
included in the statement of such Consolidated Net Income for such period, the sum of (i) interest
income, (ii) extraordinary gains, (iii) any income tax credits (to the extent not netted from
income tax expense), (iv) any income resulting from LIFO adjustments or inventory valuation in
accordance with GAAP, (v) any pension income and gains in respect of defined benefit plans, (vi)
any other non-cash income or gains, and (vii) the income, if any, attributable to Minority
Interests, all as determined on a consolidated basis. In addition, “Consolidated EBITDA” for any
period including the first four full fiscal quarters following the Effective Date shall be subject
to any adjustment with respect to such quarters required to be made by the Company’s independent
certified public accountants as a result of “fresh start” accounting, and with respect to the four
fiscal quarters prior to the Effective Date “Consolidated EBITDA” shall be so adjusted on a pro
forma basis as though the Reorganization Plan had become effective on the first day of such period.

     “Consolidated Interest Expense” means, for any period, the consolidated cash interest
expense of the Group Members for such period (but excluding any such interest expense in respect of
Specified Indebtedness and any upfront fees paid with respect to the debt financings evidenced by
the Exit Facility Agreement and the Senior Loan Agreement, each as in effect on the Effective Date,
and this Indenture), determined on a consolidated basis in accordance with GAAP, less
interest income.

     “Consolidated Net Income” means, for any period, the consolidated net income (or loss)
of the Group Members, determined on a consolidated basis in accordance with GAAP; provided
that there shall be excluded the income (or loss) of any Person accrued prior to the date it
becomes a Subsidiary or is merged into or consolidated with any Group Member.

     “Consolidated Net Worth” means, with respect to any Person at any date, the
consolidated stockholders’ equity of such Person less the amount of such stockholders’ equity
attributable to Disqualified Capital Stock of such Person and its Subsidiaries, as determined in

11

 

accordance with GAAP; provided that Consolidated Net Worth shall not reflect any
additions or deductions resulting from foreign currency translation gains or losses.

     “Consolidated Senior Debt” means all Consolidated Total Debt other than the Notes and
Permitted Subordinated Indebtedness.

     “Consolidated Senior Leverage Ratio” means as of the last day of any period of four
consecutive fiscal quarters, the ratio of (a) Consolidated Senior Debt on such day, less the sum
of (i) $400,000,000, (ii) Indebtedness as of such day of Foreign Subsidiaries that are not
wholly-owned Subsidiaries, (iii) the aggregate amount outstanding as of such day under vendor notes
issued to certain pre-petition creditors of the Company and (iv) the aggregate amount of
unrestricted cash and Cash Equivalents of the Group Members on such day in excess of Minimum Cash
on such day to (b) Consolidated EBITDA for such period.

     “Consolidated Total Debt” means, at any date, the sum of (a) the aggregate principal
amount of all Indebtedness of the Group Members at such date, determined on a consolidated basis,
plus (b) the aggregate amount of all obligations incurred under all Qualified Securitization
Transactions by the Company or any Domestic Subsidiary (other than an Excluded Subsidiary) that
would be characterized as principal determined on a consolidated basis in accordance with GAAP if
structured as a secured lending transaction rather than as a purchase, minus (c) Specified
Indebtedness.

     “Corporate Trust Office” means the principal office of the Trustee at which at any
time its corporate trust business shall be administered, which office at the date hereof is located
at 60 Livingston Avenue, EP-MN-WS3C, St. Paul, MN, 55107-2292, Attention: Corporate Trust
Administration, or such other address as the Trustee may designate from time to time by notice to
the Holders and the Company, or the principal corporate trust office of any successor Trustee (or
such other address as such successor Trustee may designate from time to time by notice to the
Holders and the Company).

     “Currency Agreement” means in respect of a Person any foreign exchange contract,
currency swap agreement or other similar agreement designed to protect such Person against
fluctuations in currency values and not for the purpose of speculation.

     “Custodian” means any receiver, trustee, assignee, liquidator or similar official
under any Bankruptcy Law.

     “Debtors” shall have the meaning as defined in the Recitals.

     “Default” means any of the events specified in Section 6.1, whether or not any
requirement for the giving of notice, the lapse of time, or both, has been satisfied.

     “Default Notice” shall have the meaning provided in Section 12.2.

     “Deposit Account” means a demand, time, savings, passbook or like account with a bank,
savings and loan association, credit union or like organization, other than an account evidenced by
a negotiable certificate of deposit.

12

 

     “Depository” means, with respect to the Notes issued in the form of one or more Global
Notes, The Depository Trust Company or another Person designated as Depository by the Company,
which Person must be a clearing agency registered under the Exchange Act.

     “Designated Senior Debt” means (i) Indebtedness under or in respect of the Exit
Facility, (ii) Indebtedness under or in respect of the Senior Loan Agreement and (iii) Indebtedness
under or in respect of the Additional Liquidity Facility, if any, provided that the
Designated Senior Debt shall not exceed the Designated Senior Debt Limit.

     “Designated Senior Debt Limit” means, with respect to Designated Senior Debt, an
aggregate principal amount equal to $2,752,590,863.33 (A) less the amount of all mandatory
principal payments actually made in respect of term loans thereunder with Net Cash Proceeds and (B)
reduced by any required permanent repayments (which are accompanied by a corresponding permanent
commitment reduction) thereunder with Net Cash Proceeds.

     “Disclosure Statement” means the Disclosure Statement, in the form approved by the
Bankruptcy Court on June 4, 2004, and as supplemented by that certain Supplemental Disclosure
Statement Describing Fourth Amended Joint Plan of Reorganization dated February 7, 2007 (which
Supplemental Disclosure Statement was approved by the Bankruptcy Court by order entered on February
6, 2007), describing the Reorganization Plan and distributed to the parties in interest in
connection with voting on the Reorganization Plan.

     “Disinterested Director” as to any Significant Shareholder, means any member of the
board of directors of a Group Member who (a) is “disinterested” under applicable state corporate
law in a transaction with any Affiliate of such Significant Shareholder which is the subject of
such board of directors approval, and (b) would be independent and eligible to serve on an audit
committee (for purposes of Sections 303A.02 and 303A.06 of the New York Stock Exchange Listed
Company Manual, as in effect on the date hereof) of such Significant Shareholder or of any company
in which such Significant Shareholder beneficially owns 15% or more of the voting power to the
extent that would be required if such Significant Shareholder or any such company were a public
reporting company listed on the New York Stock Exchange.

     “DIP Facility” means the credit facilities provided to the Company and certain of its
Subsidiaries pursuant to the Credit and Guaranty Agreement, dated as of November 23, 2005, among
the Company, the Subsidiaries of the Company party thereto, the lenders from time to time party
thereto and Citicorp USA, Inc., as administrative agent for such lenders, as amended from time to
time, together with all instruments and other agreements entered into by any Group Member in
connection therewith.

     “Disposition” means, with respect to any property, any sale, lease, sale and
leaseback, assignment, conveyance, transfer or other disposition thereof. The terms “dispose” and
“disposed of” shall have correlative meanings.

     “Disqualified Capital Stock” means any Capital Stock of the Company or any of its
Subsidiaries which, by its terms (or by the terms of any security into which it is convertible or
for which it is exchangeable at the option of the holder), or upon the happening of any event,
matures or is subject to mandatory redemption, pursuant to a sinking fund obligation or

13

 

otherwise, or is redeemable at the option of the holder thereof, in whole or in part, on or
prior to the Maturity Date of the Notes, for cash or securities constituting Indebtedness. Without
limitation of the foregoing, Disqualified Capital Stock shall also be deemed to include any
Preferred Capital Stock of the Company or a Subsidiary of the Company with respect to which, under
the terms of such Preferred Capital Stock, by agreement or otherwise, the Company or such
Subsidiary is obligated to pay current dividends or distributions in cash during the period prior
to the Maturity Date.

     “District Court” means the United States District Court for the District of Delaware
or the unit thereof having jurisdiction over the matter in question.

     “Dollars” and “$” means dollars in lawful currency of the United States.

     “Domestic Subsidiary” means any Subsidiary of the Company organized under the laws of
any jurisdiction within the United States.

     “Domestic Subsidiary Guarantees” means the collective reference to (i) the Guarantees
provided by any Domestic Subsidiary hereunder and (ii) any other Guarantee executed and delivered
by a Domestic Subsidiary Guarantor in accordance with Sections 4.22 or 4.26.

     “Domestic Subsidiary Guarantor” means each Domestic Subsidiary that provides a
Domestic Subsidiary Guarantee; as of the date of this Indenture, the Domestic Subsidiary Guarantors
are the Domestic Subsidiaries listed on Schedule 1.

     “Effective Date” means the date on which the Notes are issued, which shall be the
effective date of the Reorganization Plan.

     “Equity Proceeds” means the Net Cash Proceeds of any issuance of Capital Stock by the
Company.

     “Event of Default” means any of the events specified in Section 6.1, provided
that any requirement for the giving of notice, the lapse of time, or both, has been satisfied.

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

     “Excluded Subsidiary” means (i) any Foreign Subsidiary and any Domestic Subsidiary
which is a Subsidiary of a Foreign Subsidiary in respect of which either (a) the pledge of more
than 66% of the Capital Stock of such Foreign Subsidiary (or, in the case of a Domestic Subsidiary
which is a Subsidiary of a Foreign Subsidiary, the pledge of any Capital Stock of such Domestic
Subsidiary) as Collateral or (b) the guaranteeing by such Subsidiary of, or the pledging of assets
by such Subsidiary to secure, the Obligations, would, in the good faith judgment of the Company,
result in adverse tax consequences to any Group Member or would be unlawful for such Subsidiary;
and (ii) FM International, LLC, so long as 66% of its Capital Stock is pledged under the Security
Documents and such entity has no operations other than holding the Capital Stock of any Foreign
Subsidiary.

14

 

     “Exit Facility” means the revolving credit and/or other facility provided to one or
more Group Members on the Effective Date pursuant to the Exit Facility Agreement, and any
refinancing, replacement, refunding, renewal or extension thereof.

     “Exit Facility Agent” means Citicorp USA, Inc., in its capacity as administrative
agent under the Exit Facility Agreement, together with any of its successors.

     “Exit Facility Agreement” means the Term Loan and Revolving Credit Agreement
substantially in the form of Exhibit J hereto, dated as of the date hereof, among the Company, the
lenders from time to time party thereto and the Exit Facility Agent, together with all instruments
and other agreements entered into by any Group Member in connection therewith.

     “Exit Facility Indebtedness” means the following obligations, whether outstanding on
the Effective Date or thereafter incurred: all Indebtedness and other monetary obligations of the
Company or any Subsidiary of the Company under or in respect of the Exit Facility or any Interest
Rate Agreement, Currency Agreement or Swap Agreement related to the Exit Facility or any “Cash
Management Secured Obligations” (as defined in the Collateral Agreement), whether for principal,
interest (including interest accruing after the filing of a petition by or against the Company or
any Subsidiary of the Company under any Bankruptcy Laws, whether or not such interest is allowed as
a claim after such filing in any proceeding under such law), fees, expenses, indemnification or
otherwise.

     “Factoring Arrangements” means any arrangements between an Excluded Subsidiary and a
third party (other than an Affiliate) under which the Receivables of such Excluded Subsidiary are
factored on a non-recourse basis.

     “Factoring Basket” means, on any date, an amount equal to the greater of (i)
$400,000,000 and (ii) $400,000,000 times the Factoring Growth Rate on such date.

     “Factoring Growth Rate” means, on any date, the ratio of (i) the collective sales of
the Group Members outside of the United States for the period of twelve consecutive months most
recently ended prior to such date and for which such figure has been reported by the Company to the
Trustee, expressed at the Company’s accounting rate as in effect on the last day of such period
(which accounting rate shall be determined by the Company in good faith consistent with the manner
in which such rate has been determined by the Company prior to the Effective Date) to (ii)
$3,000,000,000.

     “F-M Canada” means Federal-Mogul Canada Limited, a Canadian corporation.

     “Fixtures” means all “fixtures” as such term is defined in the UCC, now owned or
hereafter acquired by the Company or any of its Subsidiaries.

     “Foreign Credit Facilities” means credit facilities to be made available to certain
Foreign Subsidiaries of the Company to fund foreign operations; provided that such credit
facilities are not secured by any domestic assets of the Company or any Guarantor.

15

 

     “Foreign Pledge Agreements” mean the collective reference to (i) the pledge agreements
described on Schedule 2 and (ii) any other pledge agreement pursuant to which shares of Foreign
Subsidiaries may be pledged from time to time.

     “Foreign Subsidiary” means any Subsidiary of the Company that is not a Domestic
Subsidiary.

     “Foreign Subsidiary Guarantees” means the collective reference to (i) the Foreign
Subsidiary Guarantee substantially in the form of Exhibit M to be executed by the Foreign
Subsidiary Guarantors as of the date hereof, and (ii) any other Guarantee executed and delivered by
a Foreign Subsidiary Guarantor in accordance with Sections 4.22 or 4.26.

     “Foreign Subsidiary Guarantor” means each Foreign Subsidiary that is a party to a
Foreign Subsidiary Guarantee; as of the date of this Indenture, the Foreign Subsidiary Guarantors
are the Foreign Subsidiaries listed on Schedule 7.

     “GAAP” means generally accepted accounting principles consistently applied as in
effect in the United States from time to time; provided, however, that for purposes
of computing the Consolidated Debt Service Coverage Ratio or the Consolidated Senior Leverage
Ratio, such terms shall be construed in accordance with GAAP as in effect on the date of this
Indenture applied on a basis consistent with the application used in the Company’s audited
financial statements for the fiscal year ended December 31, 2006.

     “General Investment Basket” means at any date, an amount equal to (a) $250,000,000
minus (b) the aggregate amount of Investments made pursuant to clause (xxvi) of the definition of
“Permitted Investments” on or prior to such date, plus (c) the aggregate amount of distributions of
cash and Cash Equivalents with respect to any Investment made pursuant to clause (xxvi) of the
definition of “Permitted Investments” that have been received on or prior to such date by the Group
Member that holds such Investment.

     “Global Note” means a Note evidencing all or a part of the Notes issued to and
registered in the name of the Depository and bearing the Global Note Legend prescribed in Exhibit
H.

     “Global Note Legend” means the legend set forth in Exhibit H, which is required to be
placed on all Global Notes issued under this Indenture.

     “Governmental Authority” means any nation or government, any state or other political
subdivision thereof, any agency, authority, instrumentality, regulatory body, court, central bank
or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative
functions of or pertaining to government, any securities exchange and any self-regulatory
organization (including the National Association of Insurance Commissioners).

     “Group Members” means collectively, the Company and it Subsidiaries.

     “Guarantee” means, individually, any guarantee of payment of the Obligations of the
Company under or with respect to the Notes by a Guarantor pursuant to the terms of this Indenture
and any supplemental indenture hereto or a Foreign Subsidiary Guarantee, and, collectively, all
such Guarantees.

16

 

     “Guarantee Obligation” means, as to any Person (the “guaranteeing person”),
any obligation, including a reimbursement, counterindemnity or similar obligation, of the
guaranteeing Person that guarantees or in effect guarantees or which is given to induce the
creation of a separate obligation by another Person (including any bank under any letter of credit)
that guarantees or in effect guarantees, any Indebtedness, leases, dividends or other obligations
(the “primary obligations”) of any other third Person (the “primary obligor”) in
any manner, whether directly or indirectly, including any obligation of the guaranteeing person,
whether or not contingent, (i) to purchase any such primary obligation or any property constituting
direct or indirect security therefor, (ii) to advance or supply funds (1) for the purchase or
payment of any such primary obligation or (2) to maintain working capital or equity capital of the
primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to
purchase property, securities or services primarily for the purpose of assuring the owner of any
such primary obligation of the ability of the primary obligor to make payment of such primary
obligation or (iv) otherwise to assure or hold harmless the owner of any such primary obligation
against loss in respect thereof; provided, however, that the term Guarantee
Obligation shall not include endorsements of instruments for deposit or collection in the ordinary
course of business. The amount of any Guarantee Obligation of any guaranteeing person shall be
deemed to be the lower of (a) an amount equal to the stated or determinable amount of the primary
obligation in respect of which such Guarantee Obligation is made and (b) the maximum amount for
which such guaranteeing person may be liable pursuant to the terms of the instrument embodying such
Guarantee Obligation, unless such primary obligation and the maximum amount for which such
guaranteeing person may be liable are not stated or determinable, in which case the amount of such
Guarantee Obligation shall be such guaranteeing person’s maximum reasonably anticipated liability
in respect thereof as determined by the Company in good faith.

     “Guaranteed Note Obligations” shall have the meaning set forth in Section 11.1.

     “Guarantor” means each Domestic Subsidiary Guarantor and each Foreign Subsidiary
Guarantor.

     “Guarantor Senior Debt” means, with respect to a Guarantor, any Guarantee Obligation
in respect of Designated Senior Debt.

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

     “Incur” means, with respect to any Indebtedness or other obligation of any Person, to
create, issue, incur (by conversion, exchange or otherwise), assume, guarantee or otherwise become,
directly or indirectly, liable in respect of such Indebtedness or other obligation or the
recording, as required pursuant to GAAP or otherwise, of any such Indebtedness or other obligation
on the balance sheet of such Person (and “incurrence,” “incurred,” “incurable,” and “incurring”
shall have meanings correlative to the foregoing). Any Indebtedness or Capital Stock of a Person
existing at the time such Person becomes a Subsidiary (whether by merger, consolidation,
acquisition or otherwise) shall be deemed to be incurred by such Person at the time it becomes a
Subsidiary. Indebtedness consisting of reimbursement obligations in respect of a letter of credit
will be deemed to be incurred when the letter of credit is issued or renewed.

17

 

     “Indebtedness” shall mean, at any time and with respect to any Person, without
duplication, (a) all indebtedness of such Person for borrowed money, (b) all obligations of such
Person for the deferred purchase price of property or services (other than (x) current trade
payables incurred in the ordinary course of such Person’s business and (y) property, including
inventory, and services purchased, and expense accruals (other than trade payables) and deferred
compensation items arising, in each case, in the ordinary course of such Person’s business), (c)
all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments,
(d) all indebtedness created or arising under any conditional sale or other title retention
agreement with respect to property acquired by such Person (even though the rights and remedies of
the seller or lender under such agreement in the event of default are limited to repossession or
sale of such property), (e) all Capital Lease Obligations of such Person, (f) all obligations of
such Person, contingent or otherwise, as an account party or applicant under or in respect of
acceptances, letters of credit, surety bonds or similar arrangements, (g) the liquidation value of
all redeemable Preferred Capital Stock of such Person which is mandatorily redeemable prior to the
Maturity Date, (h) all Guarantee Obligations of such Person in respect of obligations of the kind
referred to in clauses (a) through (g) above or (j) below, (i) all obligations of the kind referred
to in clauses (a) through (h) above or (j) below secured by (or for which the holder of such
obligation has an existing right, contingent or otherwise, to be secured by) any Lien on property
(including accounts and contract rights) owned by such Person, whether or not such Person has
assumed or become liable for the payment of such obligation, and (j) all obligations of such Person
in respect of Swap Agreements. The Indebtedness of any Person (i) shall include the Indebtedness
of any other entity (including any partnership in which such Person is a general partner) to the
extent such Person is liable therefor as a result of such Person’s ownership interest in or other
relationship with such entity solely to the extent such Indebtedness is required to be reflected on
the balance sheet of such Person in accordance with GAAP and (ii) shall not include in any event
any Joint Venture Put Obligation. For the avoidance of doubt, Factoring Arrangements shall not
constitute Indebtedness.

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

     “Insurance Proceeds” means any payment, proceeds or other amounts received at any time
under any insurance policy as compensation in respect of a Casualty, less any and all payments made
to the Trustee, the Collateral Trustee, the Senior Loan Agent and the Exit Facility Agent under the
Collateral Agreement, provided that business interruption insurance proceeds shall not
constitute Insurance Proceeds.

     “Intellectual Property” means the collective reference to all rights, priorities and
privileges relating to intellectual property, whether arising under United States, multinational or
foreign laws or otherwise, including copyrights, copyright licenses, patents, patent licenses,
trademarks, trademark licenses, technology, know-how and processes, and all rights to sue at law or
in equity for any infringement or other impairment thereof, including the right to receive all
proceeds and damages therefrom.

     “Intercompany Basket” means, at any date, an amount equal to (a) $500,000,000, minus
(b) the aggregate outstanding principal amount on such date of Intercompany Loans made pursuant to
clause (xvii)(b) of the definition of “Permitted Investments,” minus (c) the aggregate

18

 

amount of Investments (other than Intercompany Loans) made pursuant to clause (xvii)(b) of the
definition of “Permitted Investments” on or prior to such date, minus (d) the aggregate amount of
operating leases (measured on the basis of fair market value of the assets subject thereto)
outstanding pursuant to clause (xii)(c) of the definition of “Asset Sale” plus (e) the aggregate
amount of distributions in cash and Cash Equivalents with respect to any Investment (other than
Intercompany Loans) made pursuant to clause (xvii)(b) of the definition of Permitted Investments
that have been received on or prior to such date by the Group Member that holds such Investment.
Notwithstanding the foregoing, to the extent that an Intercompany Loan or an Investment is made in
a Subsidiary that uses the proceeds of such Intercompany Loan or Investment, substantially
contemporaneously with the making of such Intercompany Loan or Investment, to make an Investment in
a Joint Venture pursuant to clause (xiv)(b) of the definition of “Permitted Investments”, such
Intercompany Loan or Investment shall not reduce the amount of the Intercompany Basket, but shall
reduce the amount of the Joint Venture Basket in the amount of such Intercompany Loan or
Investment.

     “Intercompany Basket Sublimit” means, at any date, an amount equal to (a)
$350,000,000, minus (b) the aggregate amount of Investments (other than Intercompany Loans) made
pursuant to clause (xvii)(b) of the definition of Permitted Investments on or prior to such date,
plus (c) the aggregate amount of distributions in cash and Cash Equivalents with respect to any
Investment (other than Intercompany Loans) made pursuant to clause (xvii)(b) of the definition of
Permitted Investments that have been received on or prior to such date by the Group Member that
holds such Investment.

     “Intercompany Loan” means any Indebtedness for borrowed money owed by any Group Member
to any other Group Member.

     “Intercompany Loan Notes” means (a) that certain note dated June 11, 1999 and payable
by Federal-Mogul, S.A., a French company, to AE International Ltd. in the original principal amount
of 142,404,240 French francs, (b) that certain note dated August 31, 1998 and payable by
Federal-Mogul, S.A. to T&N International Ltd. in the original principal amount of 488,163,908
French francs, (c) that certain note dated August 31, 1998 and payable by Federal-Mogul, S.A. to AE
International Ltd in the original principal amount of 904,841,256 French francs, (d) that certain
note dated July 8, 1998 and payable by Federal-Mogul Holding Deutschland GmbH, a German company, to
AE International Ltd in the original principal amount of 126,979,412 Deutschmarks, (e) that certain
note dated July 8, 1998 and payable by Federal-Mogul Holding Deutschland GmbH to T&N International
Ltd in the original principal amount of 611,020,588 Deutschmark, and (f) that certain note dated
May 22, 2001 and payable by Federal Mogul S.p.A., an Italian company, to T&N International Ltd in
the original principal amount of €111,627,744.

     “Intercompany Loan Owed to U.K. Subsidiaries” means any Intercompany Loan of the
Company or any of its Subsidiaries other than the U.K. Subsidiaries owing to any U.K. Subsidiary
and outstanding on the Effective Date, as set forth on Schedule 6.

     “Intercreditor Agreement” means the Intercreditor Agreement dated as of the date
hereof among the Exit Facility Agent, the Senior Loan Agent, the Trustee, the Collateral Trustee,
the Company and each of the Guarantors party thereto, substantially in the form of Exhibit I.

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     “Interest” when used with respect to any Note, means the amount of all interest
accruing on such Note, including all interest accruing subsequent to the occurrence of any events
specified in Sections 6.1(7) and (8) or which would have accrued but for any such event.

     “Interest Payment Date” means each Quarterly Interest Payment Date and each PIK
Interest Payment Date, as defined in paragraph 1 of the reverse side of the Notes.

     “Interest Rate Agreement” means, for any Person, any interest rate swap agreement,
interest rate cap agreement, interest rate collar agreement or other similar agreement designed to
protect the party indicated therein against fluctuations in interest rates.

     “Investment” means, with respect to any Person, directly or indirectly, (i) any
advance, Receivables (other than Receivables arising in the ordinary course of business, including
Receivable arising in the ordinary course of business and acquired as part of the assets acquired
by the Company in connection with an acquisition of assets which is otherwise permitted by the
terms of this Indenture), loan or capital contribution to any other Person (by means of transfers
of property to others, payments for property or services for the account or use of others or
otherwise), (ii) the purchase of any stock, bonds, notes, debentures, partnership or joint venture
interests or other securities of any other Person, (iii) the acquisition, by purchase or otherwise,
of all or substantially all of the business or stock or other evidence of beneficial ownership of,
any other Person, (iv) the guarantee or assumption of the Indebtedness of any other Person (except
for an assumption of Indebtedness for which the assuming Person receives consideration with a fair
market value at least equal to the principal amount of the Indebtedness assumed), (v) the
designation of a Subsidiary as an Unrestricted Subsidiary and (vi) all other items that would be
classified as investments on a balance sheet of such Person prepared in accordance with GAAP.
Investments shall exclude extensions of trade credit on commercially reasonable terms in accordance
with normal trade practices.

     “Joint Venture” means each Affiliate of the Company listed on Schedule 3 and any other
Person not a Subsidiary in which any Group Member obtains an ownership interest as permitted by the
terms of this Indenture.

     “Joint Venture Basket” shall mean, at any date, an amount equal to (a) $250,000,000
minus (b) the aggregate amount of Investments made pursuant to clause (xiv)(b) of the definition of
“Permitted Investments” after the Effective Date and on or prior to such date minus (c) the
aggregate amount of operating leases (measured on the basis of the fair market value of the assets
subject thereto) outstanding pursuant to clause (xii)(b) of the definition of “Asset Sales” after
the Effective Date and on or prior to such date plus (d) the aggregate amount of distributions in
cash and Cash Equivalents with respect to any Investment made pursuant to clause (xiv)(b) of the
definition of “Permitted Investments” that have been received after the Effective Date and on or
prior to such date by the Group Member that holds such Investment.

     “Joint Venture Put Obligation” means any obligation of any Group Member (a) to
purchase any Capital Stock of any Person that is a Joint Venture on the Effective Date, which
Capital Stock is not owned by a Group Member on the Effective Date, (b) to purchase any Capital
Stock of any Person that is a Joint Venture on the Effective Date, which Capital Stock is not owned
by a Group Member on the Effective Date and where such obligation to purchase

20

 

Capital Stock arises after the Effective Date or (c) to purchase any Capital Stock of any
Joint Venture formed after the Effective Date, which Capital Stock is not owned by a Group Member
on the date of formation of such new Joint Venture, so long as the aggregate amount of obligations
described in the preceding clause (b) or (c) for any single such Joint Venture shall not exceed
$50,000,000 at the time of determination thereof (with the amount of any non-cash obligations to be
estimated by the Company in good faith).

     “Lien” means, any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge or other security interest or any preference,
priority or other security agreement or preferential arrangement of any kind or nature whatsoever
(including any conditional sale or other title retention agreement and any capital lease having
substantially the same economic effect as any of the foregoing).

     “Legal Holiday” shall have the meaning provided in Section 14.8.

     “Loss Event” means a Condemnation or Casualty involving an actual or constructive
total loss or agreed or compromised actual or constructive total loss of all or substantially all
of any property constituting Collateral, except where the Company reasonably concludes that
restoration of such property can be made in accordance with this Indenture and elects to do so in
an Officers’ Certificate delivered to the Trustee within 90 days of the relevant Condemnation or
Casualty.

     “Maturity Date” means December 27, 2018.

     “Minimum Cash” means at any date, an amount equal to the lesser of (a) the aggregate
amount of unrestricted cash and Cash Equivalents held by Group Members at such date, and (b)
$160,000,000.

     “Minority Interest” means any shares of stock of any class of a Subsidiary of the
Company (other than directors’ qualifying shares if required by law) that are not owned by Company
or one of its Subsidiaries; Minority Interest shall be valued in accordance with GAAP.

     “Moody’s” means Moody’s Investors Service, Inc. or any successor to the rating agency
business thereof.

     “Mortgaged Property” means the real properties listed on Schedule 4, as to which the
Collateral Trustee, for the benefit of the Noteholders and other secured parties referred to in the
Collateral Agreement, shall be granted a Lien pursuant to the Mortgages.

     “Mortgages” means each of the mortgages and deeds of trust made by the Company or any
of its Subsidiaries in favor of the Collateral Trustee, for the benefit of the Noteholders and the
other secured parties referred to therein, substantially in the form of Exhibit F (with such
changes thereto as shall be advisable or are customary under the law of the jurisdiction in which
such mortgage or deed of trust is to be recorded).

     “Net Cash Proceeds” means (a) in connection with any Asset Sale (other than the
liquidation of a Joint Venture or disposition of Notes pursuant to a Permitted Open Market
Repurchase) or any Recovery Event or any transaction that would constitute an Asset Sale but for
clause (xx) of the definition thereof, the gross proceeds thereof in the form of cash and Cash

21

 

Equivalents (including any such proceeds received by way of deferred payment of principal
pursuant to a note or installment receivable or purchase price adjustment receivable or otherwise,
but only as and when received, and, with respect to any Asset Sale consisting of the Disposition of
all or substantially all of the assets of a business or business unit of the Company or any of its
Subsidiaries, net proceeds from the liquidation or sale of Receivables or inventory of such
business or business unit) of such Asset Sale or Recovery Event, net of (i) attorneys’ fees,
accountants’ fees, investment banking fees, (ii) amounts required to be applied to the repayment of
(x) Indebtedness secured by a Lien expressly permitted hereunder on any asset that is the subject
of such Asset Sale or Recovery Event (other than any Lien securing the “Third Priority Obligations”
referred to in the Intercreditor Agreement) and (y) solely if such Asset Sale or Recovery Event is
consummated by a Foreign Subsidiary, any other Indebtedness permitted hereunder, including without
limitation any Foreign Credit Facility and any Indebtedness of any parent or Subsidiary of such
Foreign Subsidiary, but excluding any Indebtedness owed to any Group Member, (iii) other customary
fees and expenses actually incurred in connection therewith and (iv) taxes paid or reasonably
estimated to be payable as a result thereof and as a result of distributing such proceeds to the
Company (after taking into account any available tax credits or deductions and any tax sharing
arrangements), (b) in connection with any issuance or sale of Capital Stock to a Person that is not
a Group Member or any incurrence of Indebtedness to a Person that is not a Group Member, the cash
proceeds received from such issuance or incurrence, net of (i) attorneys’ fees, accountants’ fees,
investment banking fees, underwriting discounts and commissions, (ii) other customary fees and
expenses actually incurred in connection therewith, (iii) taxes paid or reasonably estimated to be
payable as a result of distributing such proceeds to the Company (after taking into account any
available tax credits or deductions and any tax sharing arrangements) and (iv) amounts required to
be applied to the repayment of Indebtedness under the Exit Facility Agreement as in effect on the
date hereof, (c) in connection with the liquidation of a Joint Venture, the gross proceeds thereof
in the form of cash and Cash Equivalents received by any Group Member in excess of the fair market
value of the aggregate of all Investments made in such Joint Venture by any Group Member at any
time and net of (i) attorneys’ fees, accountants’ fees and investment banking fees, (ii) amounts
required to be applied to the repayment of (x) Indebtedness secured by a Lien expressly permitted
hereunder on any asset that is the subject of such liquidation (but excluding, in any event, any
Lien securing the “Third Priority Obligations” referred to in the Intercreditor Agreement) and (y)
solely if such liquidation is consummated by a Foreign Subsidiary, any other Indebtedness permitted
hereunder, including without limitation any Foreign Credit Facility and any Indebtedness of any
parent or Subsidiary of such Foreign Subsidiary, but excluding any Indebtedness owed to any Group
Member, (iii) other customary fees and expenses actually incurred in connection therewith and (iv)
taxes paid or reasonably estimated to be payable as a result thereof and as a result of
distributing such proceeds to the Company (after taking into account any available tax credits or
deductions and any tax sharing arrangements) and (d) in connection with the disposition of Notes
purchased by any Group Member pursuant to a Permitted Open Market Purchase, an amount equal to the
purchase price paid by such Group Member pursuant to such Permitted Open Market Purchase (whether
or not the aggregate amount of proceeds thereof is equal to such purchase price). Notwithstanding
the foregoing, the “Net Cash Proceeds” of a Foreign Subsidiary shall not include any amounts to the
extent such amount may not be distributed (by way of dividends, intercompany loans or otherwise) to
the Company or a Domestic Subsidiary because doing so would (1) violate legal restrictions binding

22

 

upon such Foreign Subsidiary, (2) violate contractual restrictions contained in agreements
with third parties (other than Affiliates) entered into in good faith and binding upon such Foreign
Subsidiary or (3) result in material adverse tax consequences to the Company.

     “Not Otherwise Applied” means, on any date, with respect to any amount of Equity
Proceeds or Permitted Subordinated Indebtedness Proceeds, that such amount was not applied as set
forth in clauses (i) through (iii) of the definition of such term in the Senior Loan Agreement as
in effect on the date hereof.

     “Note Documents” mean this Indenture, the Security Documents, the Collateral Trust
Agreement, the Registration Rights Agreement, the Notes, the Foreign Subsidiary Guarantees and any
amendment, waiver, supplement or other modification to any of the foregoing.

     “Notes” means the Senior Subordinated Third Priority Secured Notes due 2018, being the
securities that are issued under this Indenture, as amended or supplemented from time to time
pursuant to this Indenture, including, without limitation, any PIK Notes issued in respect of
Notes, any increase in the principal amount of outstanding Notes as a result of a PIK Payment and
any Notes issued in accordance with Section 2.7 hereof.

     “Obligations” mean the unpaid principal of and interest on (including interest
accruing after the maturity of the Notes and interest accruing after the filing of any petition in
bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to
the Company, whether or not a claim for post-filing or post-petition interest is allowed in such
proceeding) the Notes and all other obligations and liabilities of the Company to the Trustee, the
Collateral Trustee (to the extent solely related to the Notes) or to any Noteholder, whether direct
or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred,
which may arise under, out of, or in connection with, this Indenture, any other Note Document or
any other document made, delivered or given in connection herewith or therewith, whether on account
of principal, interest, reimbursement obligations, fees, indemnities, costs, expenses (including
all fees, charges and disbursements of counsel to the Trustee, the Collateral Trustee (to the
extent solely related to the Notes) or to any Noteholder that are required to be paid by the
Company pursuant hereto) or otherwise.

     “Officers” means, with respect to any Person, the Chief Executive Officer, the
President, any Vice President, the Chief Financial Officer, the Chief Accounting Officer and any
Treasurer of such Person.

     “Officers’ Certificate” means, with respect to any Person, a certificate signed by the
Chief Executive Officer, the President or any Vice President and the Chief Financial Officer, the
Chief Accounting Officer or any Treasurer of such Person (or, in the case of a Person that is a
partnership (or other non-corporate Person), by a general partner (or analogous individuals) of
such Person in such capacity) that shall comply with applicable provisions of this Indenture.

     “Opinion of Counsel” means a written opinion from legal counsel, who may be an
employee of the Company.

     “Organizational Documents” shall mean (i) with respect to any corporation, its
certificate or articles of incorporation, as amended, and its by-laws, as amended, (ii) with
respect

23

 

to any limited partnership, its certificate of limited partnership or formation, as amended,
and its partnership agreement, as amended, (iii) with respect to any general partnership, its
partnership agreement, as amended, (iv) with respect to any limited liability company, its
certificate of formation or articles of organization, as amended, and its operating agreement, as
amended, if any, and (v) with respect to any unlimited liability company, its certificate of
formation, as amended, and its memorandum and articles of association, as amended, if any. In the
event any term or condition of this Indenture or any other Note Document requires any
Organizational Document to be certified by a secretary of state of similar governmental official,
the reference to any such “Organizational Document” shall only be to a document of a type
customarily certified by such governmental official.

     “Other Unsecured Claims” means the allowed unsecured claims under the Reorganization
Plan.

     “Permitted Holders” means Federal-Mogul U.S. Asbestos Personal Injury Trust and
Thornwood, which are holders of Class A Common Stock and Class B Common Stock of the Company on the
Effective Date pursuant to the Reorganization Plan.

     “Permitted Investments” means, for any Person, Investments made on or after the date
of this Indenture consisting of:

     (i) Investments in Cash Equivalents;

     (ii) intercompany Investments (a) by (i) any Group Member in the Company or any
Person that, prior to such Investment, is a Guarantor and (ii) any Subsidiary that
is not a Guarantor in any other Subsidiary and (b) consisting of Intercompany Loans
and other intercompany transactions permitted by Section 4.10;

     (iii) Investments in any Person, if (a) as a result of such Investment (1) such
Person becomes a Wholly-Owned Subsidiary of the Company or (2) such Person is
merged, consolidated or amalgamated with or into, or transfers or conveys
substantially all of its assets to, or is liquidated into, the Company or a
Wholly-Owned Subsidiary of the Company and (b) after giving effect to such
Investment the Company is in compliance with Sections 4.18 and 5.1 hereof;

     (iv) Investments represented by Receivables created or acquired in the ordinary
course of business;

     (v) loans and advances to employees of the Company and its Subsidiaries in the
ordinary course of business and consistent with the past practice of the Company and
its Subsidiaries (including, without limitation, for travel, entertainment and
relocation expenses), which loans and advances, in the aggregate do not exceed
$5,000,000 at any time outstanding;

     (vi) Investments under or pursuant to Interest Rate Agreements, Currency
Agreements and Swap Agreements permitted under clause (ix) of the second paragraph
of Section 4.10;

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     (vii) an investment that is made by the Company or a Subsidiary thereof in the
form of any Capital Stock, Indebtedness or securities that are issued by any Person
solely as partial consideration for the consummation of an Asset Sale that is
otherwise permitted under Section 4.12 hereof;

     (viii) Investments in the Notes;

     (ix) (a) Investments existing on the Effective Date, (b) equity Investments of
any Group Member in any other Group Member and arising solely as a result of the
recharacterization as an equity investment of any Intercompany Loan permitted by
Section 4.10 and (c) Investments in the form of notes issued by the “Trust” (as
defined in the Reorganization Plan) to the Company pursuant to the Reorganization
Plan, as follows: (x) a note in the face amount of $125,000,000 issuable pursuant to
Section 8.3.5 of the Reorganization Plan and (y) a note in the face amount of
$140,000,000 issuable pursuant to Section 8.22 of the Reorganization Plan;

     (x) Investments provided for in the Reorganization Plan;

     (xi) (a) Investments in any Securities received in satisfaction or partial
satisfaction thereof from financially troubled account debtors consistent with the
past practices of the Company and its Subsidiaries and (b) deposits, prepayments and
other credits to suppliers made in the ordinary course of business consistent with
the past practices of the Company and its Subsidiaries;

     (xii) any Investment by the Company or a Wholly-Owned Subsidiary of the Company
in a Securitization Entity or any Investment by a Securitization Entity in any other
Person in connection with a Qualified Securitization Transaction; provided
that any Investment in a Securitization Entity is in the form of a Purchase Money
Note or an equity interest;

     (xiii) guarantees of Indebtedness or other obligations of the Company or any of
its Subsidiaries issued in accordance with Section 4.10;

     (xiv) (a) Investments consisting of the Capital Stock of any Person acquired
pursuant to any Joint Venture Put Obligation and (b) Investments (other than
Investments described in clause (a)) in Joint Ventures, including without
limitation, Investments in new Joint Ventures, the purchase of ownership interests
in Joint Ventures from Persons that are not Group Members and increases in the
ownership interest of any Group Member in Joint Ventures in an aggregate outstanding
amount not to exceed at any date the Joint Venture Basket in effect on such date
(calculated after giving effect to all proposed Investments to be made on such date
pursuant to this clause (xiv(b));

     (xv) Investments by any Group Member in existing or potential suppliers and
customers from whom the Company reasonably expects to obtain a material commercial
benefit in an aggregate amount (valued at cost) not to exceed $25,000,000 at any one
time outstanding on or after the Effective Date;

25

 

     (xvi) Investments by any Group Member necessary to effect the Tax
Restructuring;

     (xvii) (a) Investments by the Company or any Subsidiary in any Excluded
Subsidiary existing on the Effective Date, (b) additional Investments by the Company
or any Subsidiary in any Excluded Subsidiary in an aggregate outstanding amount not
to exceed on any date the Intercompany Basket in effect on such date (calculated
after giving effect to all proposed Investments to be made on such date pursuant to
this clause (xvii)(b)), provided that the aggregate amount of Investments
(other than Intercompany Loans) made pursuant to this clause (xvii)(b) and
outstanding on any date shall not exceed the Intercompany Basket Sublimit on such
date and (c) Investments in a Foreign Subsidiary for the purpose of complying with
local statutory capitalization requirements in such Foreign Subsidiary’s host
jurisdiction;

     (xviii) (a) Investments in assets useful in the business of the Group Members
made by any Group Member with the proceeds of any Collateral Proceeds Amount as
permitted under Section 4.12 and (b) other Permitted Net Cash Proceeds
Reinvestments;

     (xix) Investments by any Group Member of any Restricted Payment received by
such Person that consists of equity interests in a Subsidiary; provided that
if the initial payor of any such Restricted Payment is a Guarantor, then the
ultimate recipient of such Restricted Payment shall also be a Guarantor;

     (xx) any “Permitted Acquisition” under and as defined in the Senior Loan
Agreement;

     (xxi) Investments made pursuant to Section 4.14(c)(viii);

     (xxii) Investments by the Company in any Subsidiary consisting of the issuance
of letters of credit under the Exit Facility Agreement (and the incurrence by the
Company of Indebtedness thereunder with respect thereto) to support obligations of
such Subsidiary;

     (xxiii) Investments by a U.K. Subsidiary in another U.K. Subsidiary in
connection with the Company Voluntary Arrangements;

     (xxiv) Investments by the Company or any of its Subsidiaries in connection with
the Anticipated Japanese Consolidation in an amount not to exceed $10,000,000;

     (xxv) Investments not otherwise permitted under paragraphs (i) through (xxiv)
so long as, prior to the making of any such Investments, the Company shall have
delivered to the Trustee an Officer’s Certificate, certifying that such Investment
has been approved by a majority of the Board of Directors and that the majority of
the Board of Directors has determined that such Investment is being made with the
intent to pursue a strategic transaction with the

26

 

Person with respect to which such Investment is being made; it being understood
that at any time at which any Investments made pursuant to this paragraph (xxv) with
respect to any Person constitutes an Asset Acquisition, such Asset Acquisition must
also constitute a Permitted Acquisition as defined in the Senior Loan Agreement;

     (xxvi) Investments not otherwise permitted under the foregoing paragraphs (i)
through (xxv), but excluding Investments in Joint Ventures or in Excluded
Subsidiaries, in an aggregate outstanding amount not to exceed on any date the
General Investment Basket in effect on such date; and

     (xxvii) Investments not otherwise permitted under the foregoing paragraphs (i)
through (xxvi) in an aggregate outstanding amount not to exceed on any date the
Proceeds Investment Basket in effect on such date.

     “Permitted Liens” means, without duplication,

     (i) Liens securing Senior Loan Facility Indebtedness, Exit Facility
Indebtedness and Additional Liquidity Facility Indebtedness permitted to be incurred
under clause (iii) of the second paragraph of Section 4.10 (including refinancings,
replacements, refundings, renewals or extensions of the foregoing);

     (ii) Liens existing on the Effective Date;

     (iii) Liens in favor of the Company or any Subsidiary thereof, provided
that if such Liens are on any Collateral as defined in the Collateral Agreement,
then such Liens are either collaterally assigned to the Trustee or subordinated to
the Lien in favor of the Collateral Trustee;

     (iv) Liens on property of a Person existing at the time such Person becomes a
Subsidiary of, or is acquired by, merged into or consolidated with the Company or
any Subsidiary thereof, or on property otherwise acquired by the Company or a
Subsidiary thereof; provided, however, that such Liens (a) were not
created in connection with or in anticipation of such acquisition, merger or
consolidation or such Person becoming a Subsidiary and (b) are not applicable to any
other property of the Company or any of the other Subsidiaries of the Company;

     (v) Liens for taxes, assessments or governmental charges or claims that are not
yet delinquent or that are being contested in good faith by appropriate proceedings
promptly instituted and diligently conducted; provided, however,
that any reserve or other appropriate provision as shall be required in conformity
with GAAP shall have been made therefore or in the case of a Subsidiary located
outside the United States, general accounting principles in effect from time to time
in its jurisdiction of incorporation;

     (vi) landlords’, carriers’, warehousemen’s, mechanics’, materialmen’s,
repairmen’s or other like Liens arising in the ordinary course of

27

 

business and with respect to amounts which are not yet delinquent for a period
of more than sixty (60) days or are being contested in good faith by appropriate
proceedings;

     (vii) Liens incurred or deposits made in the ordinary course of business (a) to
secure the performance of tenders, bids, leases, contracts (other than for the
repayment of Indebtedness), statutory obligations and other similar obligations, or
arising as a result of progress payments under government contracts, (b) in
connection with workers’ compensation, unemployment insurance and other social
security legislation, or (c) to secure the performance of surety bonds, and appeal
bonds required in connection with judgments that are not paid by an unaffiliated
insurance carrier pursuant to any insurance policy maintained by the Company;

     (viii) easements, rights-of-way, zoning and similar restrictions, encroachments
and other minor defects or irregularities in title, in each case that do not and
will not interfere in any material respect with the ordinary conduct of the business
of Company or any of its Subsidiaries;

     (ix) Liens to secure Purchase Money Indebtedness or other Capital Expenditures
that is otherwise permitted under this Indenture; provided, however,
that (i) such Liens shall be created substantially simultaneously with, or within
180 days after, the making of such Capital Expenditure and (ii) such Liens do not at
any time encumber any property other than the property financed by such
Indebtedness;

     (x) Liens securing Indebtedness and Capital Lease Obligations permitted to be
incurred under clause (iv) of the second paragraph of Section 4.10 hereof;
provided, however, that such Lien does not extend to any property
other than that subject to the underlying lease;

     (xi) Liens in favor of any Governmental Authority to secure progress, advance
or other payments pursuant to any contract or provision of any statute;

     (xii) Liens arising from leases and subleases of real property or licenses
granted to others which do not interfere in any material respect with the business
of any Group Member;

     (xiii) Liens securing reimbursement obligations under commercial letters of
credit, but only in or upon the goods the purchase of which were financed by such
letters of credit;

     (xiv) Liens securing Acquisition Indebtedness, provided that such Liens
do not extend to or cover any property other than the property directly or
indirectly acquired with the proceeds of such Acquisition Indebtedness and any
improvements thereto (unless such Liens are otherwise Permitted Liens);

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     (xv) renewals of Liens permitted by clause (ii) above securing Indebtedness
permitted by clause (vii) of the second paragraph of Section 4.10 that is a
refinancing, replacement, refunding, renewal or extension of any Indebtedness
described in clause (ii) above; provided, however, that no such Lien
permitted by this clause (xv) shall cover any property that is not subject to such
Lien on the date hereof and that the amount of Indebtedness secured thereby is not
increased after the date hereof;

     (xvi) Liens in favor of the Collateral Trustee for the benefit of, among
others, the holders of the Notes;

     (xvii) any Lien provided for in the Reorganization Plan or part of any
settlement or restructuring entered into prior to the Effective Date and approved by
the Bankruptcy Court;

     (xviii) Liens on Receivables or inventory of the Company or any Subsidiary and
their related assets;

     (xix) Liens solely on any cash earnest money deposits made by the Company or
any of its Subsidiaries in connection with any letter of intent or purchase
agreement not prohibited hereunder;

     (xx) purported Liens evidenced by the filing of precautionary UCC financing
statements relating solely to operating leases of personal property entered into in
the ordinary course of business;

     (xxi) Liens in favor of customs and revenue authorities arising as a matter of
law to secure payment of customs duties in connection with the importation of goods;

     (xxii) Liens incurred in connection with the incurrence of Indebtedness of a
Foreign Subsidiary permitted by Section 4.10 provided that such Indebtedness
is not secured by any domestic assets of the Company or any Guarantor;

     (xxiii) Liens arising out of attachments, judgments or awards as to which an
appeal or other appropriate proceedings for contest or review are timely commenced
(and as to which foreclosure and other enforcement proceedings shall not have been
commenced, unless fully bonded or otherwise effectively stayed) and as to which
appropriate reserves have been established in accordance with GAAP;

     (xxiv) Liens on assets transferred to a Securitization Entity or on assets of a
Securitization Entity, in either case incurred in connection with a Qualified
Securitization Transaction;

     (xxv) Liens incurred in connection with Sales and Leaseback Transactions
permitted under Section 4.17;

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     (xxvi) Liens on cash and Cash Equivalents securing Indebtedness in respect of
Currency Agreements, Interest Rate Agreements and Swap Agreements to the extent any
such arrangements with respect to interest rates and foreign currencies are solely
to hedge against fluctuations in interest rates and the values of foreign currencies
receivable or payable by it and permitted by clause (ix) of the second paragraph of
Section 4.10;

     (xxvii) Liens created in the ordinary course of business in favor of banks and
other financial institutions over credit balances of any bank accounts of any Group
Member held at such banks or financial institutions, as the case may be, to
facilitate the operation of cash pooling and/or interest set-off arrangements in
respect of such bank accounts in the ordinary course of business;

     (xxviii) Liens arising by virtue of any statutory or common law provision
relating to bankers’ liens, rights of set-off or similar rights and remedies as to
deposit accounts;

     (xxix) Liens securing Indebtedness permitted by clause (vi) of the second
paragraph of Section 4.10;

     (xxx) Liens on assets of any Excluded Subsidiary to secure Indebtedness of any
Group Member (including Indebtedness of such Excluded Subsidiary) permitted under
clause (xxvi) of the second paragraph of Section 4.10;

     (xxxi) Liens securing Indebtedness permitted by clauses (xi) and (xvi) of the
second paragraph of Section 4.10;

     (xxxii) Liens securing any Permitted Subordinated Indebtedness; provided that
such Liens shall be junior to the “Third Priority Liens” referred to in the
Intercreditor Agreement;

     (xxxiii) with respect to each Mortgaged Property, the Liens permitted in the
Mortgage for such Mortgaged Property;

     (xxxiv) Liens created under Section 4.7 of the Collateral Trust Agreement in
favor of the Collateral Trustee;

     (xxxv) Liens granted by the Company or a Subsidiary upon one or more
Intercompany Loan Notes securing Indebtedness owing to the Company or a Subsidiary;
provided that any such Liens on assets of the Company or any Guarantor shall
be subordinated to any and all Liens securing the Obligations; and

     (xxxvi) other Liens on assets of the Company or its Subsidiaries securing
Indebtedness so long (x) as neither (i) the aggregate outstanding principal amount
of the obligations secured thereby nor (ii) the aggregate fair market value
(determined as of the date such Lien is incurred) of the assets subject thereto
exceeds as to all Group Members $150,000,000 at any one time

30

 

and (y) such Liens do not secure Indebtedness permitted by clauses (iii),
(viii), (x), (xvi), (xix), (xx) and (xxii) of the second paragraph of Section 4.10.

     “Permitted Net Cash Proceeds Reinvestments” means (i) assets (“replacement assets”) to
be acquired or built with the Net Cash Proceeds of any Recovery Event (but not any Asset Sale), so
long as (x) such replacement assets are to be used for substantially the same purpose as the assets
that were subject to the relevant Recovery Event (“subject assets”) and (y) such replacement assets
are to be located in the United States to the extent that the subject assets were located in the
United States prior to such Recovery Event and (ii) assets to be acquired or built with the Net
Cash Proceeds of any Asset Sale or Recovery Event that are useful in the business of the Company
but that do not comply with the criteria set forth in clause (i) of this definition.

     “Permitted Open Market Purchase” means any purchase by any Group Member in the open
market (including without limitation, a privately negotiated purchase) of the Notes for less than
the face amount thereof at the time of such purchase, together with accrued and unpaid interest
thereon.

     “Permitted Subordinated Indebtedness” means Indebtedness of the Company (i) which
shall be contractually subordinated to the Obligations and (ii) if such Indebtedness is secured,
any Liens securing such Indebtedness shall be junior to the “Third Priority Liens” referred to in
the Intercreditor Agreement.

     “Person” means an individual, partnership, corporation, limited liability company,
business trust, joint stock company, trust, unincorporated association, joint venture, Governmental
Authority or other entity of whatever nature.

     “PIK Interest” means interest paid in the form of increasing the outstanding principal
amount of the Notes or issuing PIK Notes.

     “PIK Interest Payment Date” shall have the meaning set forth in paragraph 1 of the
reverse side of the Notes.

     “PIK Notes” means additional Notes issued under this Indenture in connection with a
PIK Payment containing the same terms and conditions as the Notes (other than issue date).

     “PIK Payment” means an interest payment with respect to the Notes made by increasing
the outstanding principal amount of the Notes or issuing PIK Notes.

     “Positive EBITDA Variance” shall have the meaning set forth in the Intercreditor
Agreement.

     “Preferred Capital Stock” means any Capital Stock of the Company or any of its
Subsidiaries, however designated, which entitles the holder thereof to a preference with respect to
dividends, distributions or liquidation proceeds of such Person over the holders of any other
Capital Stock issued by such Person.

     “Pre-Petition Credit Agreement” means the Fourth Amended and Restated Credit
Agreement, dated as of December 29, 2000, as amended, among the Company, the foreign

31

 

subsidiary borrowers parties thereto, the lenders from time to time parties thereto and
JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank), as administrative agent for such
lenders.

     “Proceeds Investment Basket” means on any date, an amount equal to (i) the aggregate
amount of Equity Proceeds and Permitted Subordinated Indebtedness Proceeds that have been applied
to make Investments pursuant to clause (xxvii) of the definition of “Permitted Investments” on or
prior to such date (so long as, at the time any such Investment was made, such Equity Proceeds or
Permitted Subordinated Indebtedness Proceeds were Not Otherwise Applied) plus (ii) the aggregate
amount of distributions in cash and Cash Equivalents with respect to any Investment made pursuant
to clause (xxvii) of the definition of Permitted Investments that have been received on or prior to
such date by the Group Member that holds such Investment.

     “Purchase Money Indebtedness” means any Indebtedness incurred in the ordinary course
of business by a Person to finance the cost (including the cost of construction) of an item of
property, the principal amount of which Indebtedness does not exceed the sum of (i) 100% of such
cost and (ii) reasonable fees and expenses of such Person incurred in connection therewith.

     “Purchase Money Note” means a promissory note of a Securitization Entity evidencing a
line of credit, which may be irrevocable, from the Company or any Subsidiary of the Company in
connection with a Qualified Securitization Transaction to a Securitization Entity, which note shall
be repaid from cash available to the Securitization Entity, other than amounts required to be
established as reserves pursuant to agreements, amounts paid to investors in respect of interest,
principal and other amounts owing to such investors and amounts paid in connection with the
purchase of newly generated Receivables or newly acquired equipment.

     “Qualified Securitization Transaction” means any transaction or series of transactions
that may be entered into by the Company or any of its Subsidiaries pursuant to which the Company or
any or its Subsidiaries may sell, convey or otherwise transfer to (a) a Securitization Entity (in
the case of a transfer by the Company or any of its Subsidiaries) and (b) any other Person (in the
case of a transfer by a Securitization Entity), or may grant a security interest in, any
Receivables or equipment (whether now existing or arising or acquired in the future) of the Company
or any of its Subsidiaries, and any assets related thereto including, without limitation, all
collateral securing such Receivables and equipment, all contracts and contract rights and all
guarantees or other obligations in respect of such Receivables and equipment, proceeds of such
Receivables and equipment and other assets (including contract rights) which are customarily
transferred or in respect of which security interests are customarily granted in connection with
asset securitization transactions involving Receivables and equipment.

     “Quarterly Interest Payment Date” shall have the meaning set forth in paragraph 1 of
the reverse side of the Notes.

     “Receivable” means a payment owing to a Person (whether constituting an account,
chattel paper, document, instrument or general intangible) arising from the provision of
merchandise, goods or services by such Person, including the right to payment of any interest or
finance charges and other obligations owing to such Person with respect thereto.

32

 

     “Recovery Event” means any settlement of or payment in respect of any property or
casualty insurance claim or any Condemnation relating to any asset of any Group Member.

     “Redemption Date” when used with respect to any Note to be redeemed means the date
fixed for such redemption pursuant to this Indenture.

     “Refinancing Notes” means senior unsecured or subordinated unsecured debt securities,
issued to redeem the Notes.

     “Registration Rights Agreement” means the Registrations Rights Agreement, to be
executed by the Company and each Guarantor, substantially in the form of Exhibit K.

     “Reorganization Plan” means the Fourth Amended Joint Plan of Reorganization proposed
by the Debtors, the Unsecured Creditors Committee, the Asbestos Claimants Committee, the Equity
Committee, the Future Claimants Representative and JPMorgan Chase Bank, N.A., as administrative
agent for the holders of the Bank Claims, as amended or modified from time to time (whether any
such amendment or modification is effected through an amendment or modification to the
Reorganization Plan itself or through the Confirmation Order).

     “Representative” means the First Priority Representative and the Second Priority
Representative and any other representative of holders of Additional Liquidity Facility
Indebtedness in accordance with the Intercreditor Agreement, as amended.

     “Required Filing Dates” shall have the meaning set forth in Section 4.2.

     “Responsible Officer” means, when used with respect to the Trustee, any officer within
the corporate trust department of the Trustee, including any vice president, assistant vice
president, assistant treasurer, trust officer or any other officer of the Trustee who customarily
performs functions similar to those performed by the Persons who at the time shall be such
officers, respectively, or to whom any corporate trust matter is referred because of such person’s
knowledge of and familiarity with the particular subject and who shall have direct responsibility
for the administration of this Indenture.

     “Restricted Payment” means any of the following: (i) the declaration or payment of any
dividend or any other distribution or payment on Capital Stock of the Company or any Subsidiary
thereof or any payment made to the direct or indirect holders (in their capacities as such) of
Capital Stock of the Company or any Subsidiary thereof (other than (a) dividends or distributions
payable solely in Capital Stock (other than Disqualified Capital Stock) or in options, warrants or
other rights to purchase Capital Stock (other than Disqualified Capital Stock), (b) in the case of
Subsidiaries of the Company, dividends or distributions payable to the Company or to a Wholly-Owned
Subsidiary of the Company or (c) in the case of Foreign Subsidiaries of the Company, dividends or
distributions payable to or from another Foreign Subsidiary), (ii) the purchase, redemption or
other acquisition or retirement for value of any Capital Stock of the Company or any Subsidiary
thereof (other than Capital Stock owned by the Company or a Wholly-Owned Subsidiary, excluding
Disqualified Capital Stock), (iii) the making of any principal payment on, or the purchase,
defeasance, repurchase, redemption or other acquisition or retirement for value, prior to any
scheduled maturity, scheduled repayment or scheduled sinking fund payment, of any Subordinated
Indebtedness other than the Notes

33

 

(other than Subordinated Indebtedness acquired in anticipation of satisfying a scheduled
sinking fund obligation, principal installment or final maturity, in each case within one year of
the date of such acquisition and other than any Indebtedness of the Company owing to or held by any
Wholly-Owned Subsidiary or Indebtedness of one of the Company’s Subsidiaries owing to and held by
the Company or any Wholly-Owned Subsidiary), or (iv) the making of any Investment or guarantee of
any Investment in any Person other than a Permitted Investment. For purposes of determining the
amount expended for Restricted Payments, cash distributed or invested shall be valued at the face
amount thereof and property other than cash shall be valued at its fair market value.

     “S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill
Companies, Inc., or any successor to the rating agency business thereof.

     “Sale and Leaseback Transaction” means any arrangement with any Person providing for
the leasing by any Group Member of real or personal property that has been or is to be sold or
transferred by such Group Member to such Person or to any other Person to whom funds have been or
are to be advanced by such Person on the security of such property or rental obligations of such
Group Member.

     “SEC” or “Commission” means the United States Securities and Exchange
Commission as constituted from time to time or any successor performing substantially the same
functions.

     “Securities” means any stock, shares, partnership interests, voting trust
certificates, certificates of interest or participation in any profit-sharing agreement or
arrangement, options, warrants, bonds, debentures, notes, or other evidences of indebtedness,
secured or unsecured, convertible, subordinated or otherwise, or in general any instruments
commonly known as “securities” or any certificates of interest, shares or participations in
temporary or interim certificates for the purchase or acquisition of, or any right to subscribe to,
purchase or acquire, any of the foregoing.

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

     “Securitization Entity” means a Wholly-Owned Subsidiary of the Company (or another
Person in which the Company or any Subsidiary of the Company makes an Investment and to which the
Company or any Subsidiary of the Company transfers Receivables or equipment and related assets)
which engages in no activities other than in connection with the financing of Receivables or
equipment and which is designated by the Board of Directors of the Company (as provided below) as a
Securitization Entity (a) no portion of the Indebtedness or any other obligations (contingent or
otherwise) of which (i) is guaranteed by the Company or any Subsidiary of the Company (excluding
guarantees of obligations (other than the principal of, and interest on, Indebtedness)) pursuant to
Standard Securitization Undertakings, (ii) is recourse to or obligates the Company or any
Subsidiary of the Company in any way other than pursuant to Standard Securitization Undertakings or
(iii) subjects any property or asset of the Company or any Subsidiary of the Company, directly or
indirectly, contingently or otherwise, to the satisfaction thereof, other than pursuant to Standard
Securitization Undertakings, (b) with which neither the Company nor any Subsidiary of the Company
has any material contract, agreement, arrangement or understanding other than on terms no less
favorable to the Company or such

34

 

Subsidiary than those that might be obtained at the time from Persons that are not Affiliates
of the Company, other than fees payable in the ordinary course of business in connection with
servicing Receivables of such entity, and (c) to which neither the Company nor any Subsidiary of
the Company has any obligation to maintain or preserve such entity’s financial condition or cause
such entity to achieve certain levels of operating results. Any such designation by the Board of
Directors of the Company shall be evidenced to the Trustee by filing with the Trustee a certified
copy of the resolution of the Board of Directors of the Company giving effect to such designation
and an Officers’ Certificate certifying that such designation complied with the foregoing
conditions.

     “Security Documents” means the collective reference to the Collateral Agreement, the
Foreign Pledge Agreements, the Mortgages and all other security documents hereafter delivered to
the Collateral Trustee granting a Lien on any property of any Person to secure the obligations and
liabilities of the Company and the Guarantors under any Note Document, together with the
Intercreditor Agreement.

     “Senior Loan Agent” means JPMorgan Chase Bank, N.A., in its capacity as administrative
agent under the Senior Loan Agreement, together with any of its successors.

     “Senior Loan Agreement” means the Tranche A Term Loan Agreement substantially in the
form of Exhibit G hereto, dated as of the date hereof, among the Company, the lenders from time to
time parties thereto and the Senior Loan Agent, together with all instruments and other agreements
entered into by the Company or its Subsidiaries in connection therewith.

     “Senior Loan Facility” means (i) the Senior Loan Agreement; (ii) any and all
agreements, instruments and documents executed or delivered pursuant to or in connection with such
Senior Loan Agreement; and (iii) any and all credit agreements, loan agreements, note purchase
agreements, indentures or other agreements, documents or instruments refinancing, refunding or
otherwise replacing, in whole or in part, the Senior Loan Agreement or any other agreement deemed a
Senior Loan Facility under clause (ii) hereof, whether or not with the same agent, trustee,
representative, lenders or holders, regardless of whether the Senior Loan Facility or any portion
thereof was outstanding or in effect at the time of such restatement, renewal, extension,
restructuring, supplement or modification. Without limiting the generality of the foregoing, the
term “Senior Loan Facility” shall include any amendment, restatement, renewal, extension,
restructuring, supplement or modification to any Senior Loan Facility and all refundings,
refinancing and replacements of any Senior Loan Facility, in whole or in part, including any
agreement (w) extending the maturity of any Indebtedness incurred thereunder or contemplated
thereby, (x) adding or deleting borrowers or guarantors thereunder, provided that the
addition of such borrower or guarantor would not be prohibited by this Indenture, (y) increasing
the amount for Indebtedness incurred thereunder or available to be borrowed thereunder, provided
such increase is permitted to be incurred under this Indenture, or (z) otherwise altering the terms
and conditions thereof in a manner not prohibited by this Indenture.

     “Senior Loan Facility Indebtedness” means the following obligations, whether
outstanding on the Effective Date or thereafter incurred: all Indebtedness and other monetary
obligations of the Company or any Subsidiary of the Company under or in respect of the Senior Loan
Facility or any Interest Rate Agreement, Currency Agreement or Swap Agreement related

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to Indebtedness under the Senior Loan Facility, whether for principal, interest (including
interest accruing after the filing of a petition by or against the Company or any Subsidiary of the
Company under any Bankruptcy Laws, whether or not such interest is allowed as a claim after such
filing in any proceeding under such law), fees, expenses, indemnification or otherwise.

     “Senior Loan Repayment Date” means the date on which the loans deemed made pursuant to
the Senior Loan Agreement on the Effective Date have been paid in full.

     “Senior Loans” mean the loans made or deemed made under the Senior Loan Agreement.

     “Significant Shareholder” means any beneficial holder or group of affiliated
beneficial holders of securities representing 30% or more of the voting power of the Company.

     “Specified Indebtedness” means on any date or for any period, (i) Intercompany Loans,
(ii) Indebtedness described in clause (f) of the definition thereof, so long as such Indebtedness
is contingent and (iii) any Indebtedness described in clause (j) of the definition thereof and
Indebtedness permitted under Sections 4.10 (xvi), (xx) and (xxi), unless any such Indebtedness
described in this clause (iii) would be required to be reflected as debt on the consolidated
balance sheet of the Company on such date and the payments associated therewith would be required
to be included as interest expense on the consolidated income statement of the Company for such
period, in each case in accordance with GAAP.

     “Standard Securitization Undertakings” means representations, warranties, covenants
and indemnities entered into by the Company or any Subsidiary of the Company which are reasonably
customary in a Receivables or equipment transaction.

     “Subordinated Indebtedness” means Indebtedness of any Person which is expressly
subordinated in right of payment to any other Indebtedness of such Person.

     “Subsidiary” of any specified Person means any corporation, partnership, limited
liability company, joint venture, association or other business entity, whether now existing or
hereafter organized or acquired, (i) in the case of a corporation, of which more than 50% of the
total voting power of the Capital Stock entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, officers or trustees thereof is held by such
first-named Person or any of its Subsidiaries; or (ii) in the case of a partnership, limited
liability company, joint venture, association or other business entity, with respect to which such
first-named Person or any of its Subsidiaries has the power to direct or cause the direction of the
management and policies of such entity by contract or otherwise or if in accordance with GAAP such
entity is consolidated with the first-named Person for financial statement purposes.
Notwithstanding the foregoing, an Unrestricted Subsidiary shall not be deemed a Subsidiary of the
Company other than for purposes of the definition of Unrestricted Subsidiary, unless the Company
shall have designated such Unrestricted Subsidiary as a “Subsidiary” by written notice to the
Trustee.

     “Swap Agreement” means any agreement with respect to any swap, forward, future or
derivative transaction or option or similar agreement involving, or settled by reference to, one or
more rates, currencies, commodities, equity or debt instruments or securities, or economic,

36

 

financial or pricing indices or measures of economic, financial or pricing risk or value or
any similar transaction or any combination of these transactions; provided that no phantom
stock or similar plan providing for payments only on account of services provided by current or
former directors, officers, employees or consultants of the Company or any Subsidiary shall be a
“Swap Agreement.”

     “Tax Restructuring” has the meaning set forth in the Senior Loan Agreement as in
effect on the date hereof.

     “Thornwood” means Thornwood Associates Limited Partnership and its Affiliates. For
the avoidance of doubt, Icahn Enterprises L.P. shall be deemed to be an Affiliate of Thornwood.

     “TIA” means the Trust Indenture Act of 1939 (15 U.S. Code Sections 77aaa-77bbbb) as in
effect on the date of this Indenture (except as provided in Section 8.3 hereof).

     “Trustee” means the party named as such in this Indenture until a successor replaces
it pursuant to this Indenture and thereafter means the successor.

     “UCC” means the Uniform Commercial Code as the same may, from time to time, be enacted
and in effect in the State of New York; provided, that to the extent that the Uniform
Commercial Code is used to define any term herein and such term is defined differently in different
Articles of the Uniform Commercial Code, the definition of such term contained in Article 9 shall
govern; provided further, that in the event that, by reason of mandatory provisions
of law, any or all of the attachment, perfection or priority of, or remedies with respect to, any
Lien on any Collateral is governed by the Uniform Commercial Code as enacted and in effect in a
jurisdiction other than the State of New York, the term “Uniform Commercial Code” shall mean the
Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of
the provisions thereof relating to such attachment, perfection, priority or remedies and for
purposes of definitions related to such provisions.

     “U.K. Administration” shall have the meaning set forth in the definition of “U.K.
Subsidiaries.”

     “U.K. Dissolution” means the winding up or striking off of (x) those U.K. Subsidiaries
listed on Schedule 6 hereto or (y) any other U.K. Subsidiary which is no longer trading and which
has gross assets (as shown in its most recent set of Audited
Accounts) of less than ₤10,000.

     “U.K. Settlement Agreement” means that certain agreement dated September 26, 2005
among the Company, T&N Limited, certain bankruptcy plan proponents, High River Limited Partnership,
the Pension Protection Fund and James J. Gleave, Simon V. Freakley and Gary P. Squires of Kroll
Limited and their successors as joint administrators of T&N Limited, appointed by order of the High
Court of Justice of England and Wales.

     “U.K. Subsidiaries” means those Subsidiaries of the Company which are organized under
the laws of any jurisdiction in the United Kingdom and which are the subject of administration
petitions under the U.K. Insolvency Act 1986 (collectively, and including upon

37

 

the grant of such petitions, the “U.K. Administration”) and are debtors in cases pending under
Chapter 11 of the Bankruptcy Code.

     “Unrestricted Subsidiary” means any Subsidiary of the Company which shall have been
designated after the Effective Date as an Unrestricted Subsidiary by a resolution adopted by the
Board of Directors of the Company; provided that a Subsidiary may be so classified as an
Unrestricted Subsidiary only if such classification is in compliance with Section 4.23 hereof and
an Unrestricted Subsidiary may be designated as a Subsidiary only if such classification is in
compliance with the definition of “Subsidiary” contained in this Section 1.1. The Trustee shall be
given prompt written notice by the Company of each resolution adopted by the Board of Directors of
the Company under this provision, together with a copy of each such resolution adopted.

     “U.S. Debtors” has the meaning set forth in the Recitals.

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

     “U.S. Legal Tender” means such coin or currency of the United States of America as at
the time of payment shall be legal tender for the payment of public and private debts.

     “Wagner Lighting Divestiture” means a Disposition consisting of the sale by the
Company and its Subsidiaries of certain assets located in the United States related to the Wagner
Lighting Group, including manufacturing equipment related thereto but excluding the sale of the
“Wagner” brand.

     “Wholly-Owned Subsidiary” means as to any Person, any other Person all of the Capital
Stock of which (other than directors’ qualifying shares required by law) is owned by such Person
directly and/or through other Wholly-Owned Subsidiaries.

          SECTION 1.2.   Other Definitions. The definitions of the following terms may be found in the Sections indicated
as follows:

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	Term	 	Defined in Section
	“Agent Members”
	 	 	2.17	 
	“Business Day”
	 	 	14.8	 
	“Covenant Defeasance”
	 	 	9.3	 
	“Legal Defeasance”
	 	 	9.2	 
	“Paying Agent”
	 	 	2.3	 
	“Physical Notes”
	 	 	2.1	 
	“Registrar”
	 	 	2.3	 
	“transfer”
	 	 	5.1	 

          SECTION 1.3.   Incorporation by Reference of Trust Indenture Act. Whenever this
Indenture refers to a provision of the TIA, the portion of such provision required to be
incorporated herein in order for this Indenture to be qualified under the TIA is incorporated by
reference in and made a part of this Indenture. The following TIA terms used in this Indenture have
the following meanings:

     “indenture securities” means the Notes.

     “indenture security holder” means a Holder.

     “indenture to be qualified” means this Indenture.

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

     “obligor on the indenture securities” means the Company, the Guarantors or any other obligor
on the Notes.

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

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

	 	(1)	 	a term has the meaning assigned to it herein, whether defined
expressly or by reference;
	 
	 	(2)	 	an accounting term not otherwise defined has the meaning
assigned to it in accordance with GAAP;
	 
	 	(3)	 	“or” is not exclusive;
	 
	 	(4)	 	words in the singular include the plural, and in the plural
include the singular;
	 
	 	(5)	 	words used herein implying any gender shall apply to every
gender;

39

 

	 	(6)	 	“herein,” “hereof” and other words of similar import refer to
this Indenture as a whole and not to any particular Article, Section or
Subdivision, unless expressly stated otherwise;
	 
	 	(7)	 	provisions apply to successive events and transactions;
	 
	 	(8)	 	the words “include,” “includes” and “including” shall be deemed
to be followed by the phrase “without limitation”;
	 
	 	(9)	 	references to agreements or other contractual obligations
shall, unless otherwise specified, be deemed to refer to such agreements, or
other contractual obligations, as amended, supplemented or otherwise modified
from time to time; and
	 
	 	(10)	 	the words “asset” and “property” shall be construed to have the
same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, Capital Stock, securities, revenues,
accounts, leasehold interests and contract rights.

ARTICLE 2

THE NOTES

          SECTION 2.1.   Dating; Incorporation of Form in Indenture. The Notes and the
Trustee’s certificate of authentication shall be substantially in the form of Exhibit A which is
incorporated in and made part of this Indenture. The Notes shall have notations, legends or
endorsements required by law, stock exchange rule, usage, or agreements to which the Company or any
Guarantor is subject. The Company may use “CUSIP” numbers in issuing the Notes. Each Note shall be
dated the date of its authentication.

     The Notes may be issued in the form of one or more Global Notes having the legend set forth in
Exhibit H. The Notes may also be issued in the form of certificated Notes (the “Physical Notes”),
without the “Schedule of Exchanges of Interests in the Global Note” set forth in Exhibit A and
without the legend set forth in Exhibit H.

     The Notes shall be issuable only in registered form without coupons. The Global Notes (and
any increase in the principal amount of Notes as a result of a PIK Payment) shall be in
denominations of whole dollar integrals.

     The terms and provisions contained in the Notes shall constitute, and are hereby expressly
made, a part of this Indenture and the Company, the Domestic Subsidiary Guarantors and the Trustee,
by their execution and delivery of this Indenture (and the Foreign Subsidiary
Guarantors, by their execution and delivery of a Foreign Subsidiary Guarantee), expressly
agree to such terms and provisions and to be bound thereby.

          SECTION 2.2.   Execution and Authentication. The Notes shall be executed on behalf of
the Company by two Officers of the Company or an Officer and a Secretary or Assistant Secretary of
the Company. Such signatures may be either manual or facsimile. If an

40

 

Officer whose signature is on
a Note no longer holds that office at the time the Trustee authenticates the Note or at any time
thereafter, the Note shall be valid nevertheless.

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

     At any time, and from time to time, the Trustee shall, upon receipt of a Company Request,
authenticate and deliver Notes in the amounts and in the manner specified in such Company Request;
provided that the aggregate principal amount of Notes issued hereunder shall not exceed
$305,236,000 (excluding any PIK Notes and any increase in the principal amount of Notes as a result
of a PIK Payment), subject to adjustment pursuant to Section 8.1(7).

     With respect to a PIK Payment, no later than five Business Days prior to the relevant PIK
Interest Payment Date, the Company shall deliver to the Trustee, (i) with respect to Global Notes,
a Company Request to increase the outstanding principal amount of such Notes by the required amount
of PIK Interest (rounded up to the nearest whole dollar) (or, if necessary, pursuant to the
requirements of the Depositary or otherwise, new Global Notes in the amount of the PIK Interest and
a Company Request to authenticate and deliver such new Global Notes), and (ii) with respect to
Physical Notes, the required amount of new Physical Notes in the amount of the PIK Interest
(rounded up to the nearest whole dollar) and a Company Request to authenticate and deliver such
Physical Notes. The Trustee shall on the relevant PIK Interest Payment Date, in accordance with a
Company Request, make appropriate amendments to the schedule of principal amounts of such Global
Notes or, if applicable, authenticate and deliver PIK Notes. Each PIK Payment shall be made pro
rata with respect to the outstanding Notes, and the Company shall have the right to aggregate
amounts of interest payable in the form of PIK Notes to a Holder of outstanding Notes and issue to
such Holder a single Note in payment thereof.

     The PIK Notes shall contain the same terms and conditions as the Notes (except the issue date)
and shall be treated together with the Notes as a single class for all purposes under this
Indenture. Unless the context otherwise requires, references to “principal amount” of the Notes
includes any increase in outstanding principal amount of any Notes as a result of a PIK Payment.

     The Trustee may appoint an authenticating agent acceptable to the Company to authenticate
Notes and PIK Notes. Unless limited by the terms of such appointment, an authenticating agent may
authenticate Notes whenever the Trustee may do so, except with regard to the original issuance of
the Notes and pursuant to Section 2.7. Except as provided in the preceding sentence, each
reference in this Indenture to authentication by the Trustee includes
authentication by such agent. Such authenticating agent shall have the same right as the
Trustee in dealing with the Company or an Affiliate of the Company.

          SECTION 2.3.   Agents. The Company shall maintain an office or agency in the Borough
of Manhattan, City of New York, State of New York where Notes may be presented for registration of
transfer or for exchange (“Registrar”) and where Notes may be presented for payment (“Paying
Agent”) and where notices and demands to or upon the Company in respect of the Notes and this
Indenture may be served. The Registrar shall keep a register of the Notes and of their transfer and
exchange. The Company may appoint one or more co-Registrars and

41

 

one or more additional Paying
Agents. The Company may change any Paying Agent, Registrar or co-Registrar without notice to any
Noteholder. Neither the Company nor any of its Subsidiaries or Affiliates may act as Paying Agent
but may act as Registrar or co-Registrar.

     The Company shall enter into an appropriate agency agreement with any Registrar or Paying
Agent which is not a party to this Indenture. The agreement shall implement the provisions of this
Indenture that relate to such Agent. The Company shall notify the Trustee of the name and address
of any such Agent. If the Company fails to maintain a Registrar or Paying Agent, or agent for
service of notices and demands, or fails to give the foregoing notice, the Trustee shall act as
such and shall be entitled to appropriate compensation pursuant to Section 7.7. The Company
initially appoints the Trustee as Registrar, Paying Agent and agent for service of notices and
demands in connection with the Notes.

          SECTION 2.4.   Paying Agent to Hold Money in Trust. On or before each due date of the
principal of, premium if any, and cash interest, on any Notes, the Company shall deposit with the
Paying Agent a sum sufficient to pay such principal, premium if any, and cash interest, so becoming
due. Each Paying Agent shall hold in trust for the benefit of Noteholders or the Trustee all money
held by the Paying Agent for the payment of principal, premium, if any, or cash interest on the
Notes (whether such money has been paid to it by the Company or any other obligor on the Notes),
and the Company and the Paying Agent shall notify the Trustee of any default by the Company or any
Guarantor (or any other obligor on the Notes) in making any such payment. Money held in trust by
the Paying Agent need not be segregated except as required by law and in no event shall the Paying
Agent be liable for any interest on any money received by it hereunder. The Company at any time may
require a Paying Agent to pay all money held by it to the Trustee, and the Trustee may at any time
during the continuance of any Event of Default specified in Section 6.1(1) or (2), upon written
request to a Paying Agent, require such Paying Agent to forthwith pay to the Trustee all sums so
held in trust by such Paying Agent together with a complete accounting of such sums. Upon doing so,
the Paying Agent shall have no further liability for the money delivered to the Trustee.

          SECTION 2.5.   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. If the Trustee is not the
Registrar, the Company shall furnish to the Trustee on or prior to the tenth Business Day
before each Interest Payment Date, and at such other times as the Trustee may request in writing, a
list in such form and as of such date as the Trustee may reasonably require of the names and
addresses of Noteholders, including the aggregate principal amount of Notes held by each such
Noteholder.

          SECTION 2.6.   Transfer and Exchange. (a)  When a Note is presented to the Registrar
with a request to register the transfer thereof, the Registrar shall register the transfer as
requested if the requirements of applicable law and of this Indenture are met and, when Notes are
presented to the Registrar with a request to exchange them for an equal principal amount of Notes
of other authorized denominations, the Registrar shall make the exchange as requested, provided
that every Note presented or surrendered for registration of transfer or exchange shall be duly
endorsed or be accompanied by a written instrument of transfer in form satisfactory to the Company
and the Registrar duly executed by the Holder thereof or his attorney, duly authorized in writing.
To permit registration of transfers and exchanges, upon surrender of any

42

 

Note for registration of
transfer at the office or agency maintained pursuant to Section 2.3 hereof, the Company shall issue
and execute and the Trustee shall authenticate Notes at the Registrar’s request. Any exchange or
transfer shall be without any service charge to the Noteholder, except that the Company may require
payment by the Noteholder of a sum sufficient to cover any tax or the governmental charge that may
be imposed in relation to a transfer or exchange, but this provision shall not apply to any
exchange pursuant to this Indenture. The Trustee shall not be required to register transfers of
Notes or to exchange Notes for a period of 15 days before selection of any Notes to be redeemed.
The Trustee shall not be required to exchange or register transfers of any Notes called or being
called for redemption in whole or in part, except the unredeemed portion of any Note being redeemed
in part. All Notes issued upon any transfer or exchange pursuant to the terms of this Indenture
will evidence the same debt and will be entitled to the same benefits under this Indenture as the
Notes surrendered upon such transfer or exchange.

          (b) Except as expressly provided herein, neither the Trustee nor the Registrar shall have any
duty to monitor the Company’s compliance with or have any responsibility with respect to the
Company’s compliance with any federal or state securities laws.

          (c) Any Holder of a Global Note shall, by acceptance of such Global Note, agree that transfers
of the 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 Global Note shall be required to be reflected in a book entry.

          SECTION 2.7.   Replacement Notes. If a mutilated Note is surrendered to the Registrar
or Trustee, or if the Holder of such Note furnishes to the Company and the Trustee evidence
reasonably acceptable to them of the ownership and destruction, loss or theft of such Note or if
the reasonable requirements of the Trustee and of Section 8-405 of the UCC are met, then the
Company shall issue and the Trustee shall authenticate a replacement Note. An indemnity bond may be
required by the Company or the Trustee that is sufficient in the judgment of the Company and the
Trustee to protect the
Company, the Trustee or any Agent from any loss which any of them may suffer if a Note is
replaced. The Company or the Trustee each may charge for its expenses (including reasonable
attorneys’ fees and expenses) in replacing a Note.

     Every replacement Note is a separate obligation of the Company, entitled to all the benefits
of this Indenture equally and proportionally with all other Notes duly issued hereunder.

          SECTION 2.8.   Outstanding Notes. Notes outstanding at any time are all Notes
authenticated by the Trustee except for those cancelled by it, those delivered to it for
cancellation, and those described in this Section 2.8 as not outstanding.

     If a Note is replaced pursuant to Section 2.7, it ceases to be outstanding until the Company
and the Trustee receive proof satisfactory to each of them that the replaced Note is held by a bona
fide purchaser in whose hands such obligation is a legal, valid and binding obligation of the
Company.

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     If a Paying Agent holds on a Redemption Date or the Maturity Date money sufficient to pay the
principal of, premium, if any, and all accrued interest with respect to Notes payable on that date
and is not prohibited from paying such money to the Holders thereof pursuant to the terms of this
Indenture, then on and after that date such Notes shall cease to be outstanding and interest on
them shall cease to accrue.

     Subject to Section 14.6, a Note does not cease to be outstanding solely because the Company or
an Affiliate holds the Note.

          SECTION 2.9.   Temporary Notes. Until definitive Notes are ready for delivery, the
Company may prepare and the Trustee shall authenticate temporary Notes. Temporary Notes shall be
substantially in the form, and shall carry all rights, benefits and privileges, of definitive Notes
but may have variations that the Company considers appropriate for temporary Notes. Without
unreasonable delay, the Company shall prepare and the Trustee shall authenticate definitive Notes
in exchange for temporary Notes presented to it.

          SECTION 2.10.   Cancellation. The Company at any time may deliver Notes to the
Trustee for cancellation. The Registrar and the Paying Agent shall forward to the Trustee any Notes
surrendered to them for transfer, exchange or payment. The Trustee shall cancel and retain or may
dispose of (subject to the record-retention requirements of the Exchange Act), in accordance with
its normal practice, all Notes surrendered for transfer, exchange, payment or cancellation. Subject
to Sections 2.7 and 2.8 hereof, the Company may not issue new Notes to replace Notes in respect of
which it has previously paid all principal, premium and interest accrued thereon, or delivered to
the Trustee for cancellation.

          SECTION 2.11.   Defaulted Interest. If the Company defaults in a payment of any interest, whether in the form of
PIK Interest
or otherwise, on the Notes, it shall pay the defaulted amounts, plus (to the extent permitted by
law) Default Interest (as defined in paragraph 1 of the reverse side of the Notes) to the persons
who are Noteholders on a subsequent special record date.

     The Company shall fix the special record date and payment date for payment of such defaulted
amounts in a manner satisfactory to the Trustee and provide the Trustee at least 20 days notice of
the proposed amount of Default Interest to be paid and the special payment date. At least 15 days
before the special record date, the Company shall mail or cause to be mailed to each Noteholder at
his address as it appears on the Notes register maintained by the Registrar a notice that states
the special record date, the payment date (which shall be not less than five nor more than ten days
after the special record date), and the amount to be paid. In lieu of the foregoing procedures, the
Company may pay Default Interest in any other lawful manner satisfactory to the Trustee.

          SECTION 2.12.   Deposit of Moneys. Prior to 10:00 a.m., New York City time, as
required, on (i) each Quarterly Interest Payment Date and (ii) the Maturity Date, the Company shall
have deposited with the Paying Agent in immediately available funds money sufficient to make cash
payments due on such Quarterly Interest Payment Date or Maturity Date, as the case may be, in a
timely manner which permits the Trustee to remit payment to the Holders at such times. The
interest, premium, if any, and the principal on the Global Notes shall be payable to

44

 

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, premium, if any, and interest on Physical Notes shall be
payable at the office of the Paying Agent.

          SECTION 2.13.   CUSIP Number. The Company in issuing the Notes may use a “CUSIP”
number (or numbers), and if so, the Trustee may use the CUSIP number(s) in notices of redemption or
exchange as a convenience to Holders, provided that any such notice may state that no
representation is made as to the correctness or accuracy of the CUSIP number(s) printed in the
notice or on the Notes, and that reliance may be placed only on the other identification numbers
printed on the Notes. If not otherwise printed on the Note authenticated by the Trustee, the
Company will promptly notify in writing the Trustee of any such CUSIP number used by the Company in
connection with the Notes and any change in such CUSIP number.

          SECTION 2.14.   Record Date. The record date for purposes of determining the identity
of Holders entitled to vote or consent to any action by vote or consent authorized or permitted
under this Indenture shall be determined as provided in TIA Section 316(c).

          SECTION 2.15.   Payments to Holders. Notwithstanding any provisions of this Indenture
and the Notes to the contrary:

          (a) Except for any payments to be made on a Redemption Date or the Maturity Date, cash
payments with respect to any of the Notes may be made by the Paying Agent upon receipt from the
Company of immediately available funds, by check mailed to the Holder, at the address shown in the
registrar of the Notes maintained by the Registrar pursuant to Section 2.3 hereof; or

          (b) At the request of a Holder of at least $5,000,000 in aggregate principal amount of Notes
outstanding, all cash payments with respect to any of the Notes may be made by the Paying Agent
upon receipt from the Company of immediately available funds prior to 10:00 a.m., New York City
time, directly to such Holder of such Note (whether by federal funds, wire transfer or otherwise);
provided, however, that no such federal funds, wire transfer or other such direct
payment shall be made to any Holder under this Section 2.15(b) unless such Holder has delivered
written instructions to the Trustee prior to the relevant record date for such payment requesting
that such payment will be so made and designating the bank account to which such payments shall be
so made and, in the case of payments of principal, surrenders the Note to the Trustee in exchange
for a Note or Notes aggregating the same principal amount as the unredeemed principal amount of the
Notes surrendered. The Trustee shall be entitled to rely on the last instruction delivered by the
Holder pursuant to this Section 2.15(b) unless a new instruction is delivered prior to the relevant
record date for a payment date. The Company will indemnify and hold the Trustee harmless against
any loss, liability or expense (including attorneys’ fees and expenses) resulting from any act or
omission to act on the part of the Company or any such Holder in connection with any such agreement
or which the Paying Agent may incur as a result of making any payment in accordance with any such
agreement.

All payments made on a Redemption Date are subject to Section 2.8 and Article 3 hereof. No later
than fifteen (15) days prior to the Maturity Date, the Trustee shall notify the Holder, at the
address shown in the registrar of the Notes maintained by the Registrar pursuant to Section 2.3

45

 

hereof, that the Company expects that the final installment of principal of and interest on the
Notes will be paid on the Maturity Date. Such notice shall specify that such final installment will
be payable only upon presentation and surrender of such Note and shall specify the place where such
Notes may be presented and surrendered for payment of such installment. Additionally, in accordance
with Section 2.8, such Notes shall cease to be outstanding.

          SECTION 2.16.   Closing Deliverables The Company shall provide the following closing
deliverables prior to or concurrently with entering into this Indenture on the Effective Date:

          (a) Indenture; Note Documents The Trustee shall have received (i) this Indenture,
executed and delivered by the Trustee and the Company and the Domestic Subsidiary Guarantors, (ii)
the Collateral Agreement, executed and delivered by the Company and each applicable Guarantor,
(iii) an Acknowledgement and Consent in the form attached to the Collateral Agreement, executed and
delivered by each Issuer (as defined therein), if any, that is not the Company or a Guarantor, to
the extent required to be delivered pursuant to the Exit Facility Agreement, (iv) the Registration
Rights Agreement, executed and delivered by the Company, (v) the Foreign Subsidiary Guarantee,
executed and delivered by each Foreign Subsidiary Guarantor, (vi) each Foreign Pledge Agreement,
executed and delivered by the Company and each applicable Guarantor and (vii) the Collateral Trust
Agreement, executed by each party thereto.

          (b) DIP Facility The Trustee shall have received an Officers’ Certificate of the
Company certifying that (i) the commitments under the DIP Facility have been terminated, all
letters of credit issued thereunder (other than those letters of credit issued under the DIP
Facility (if any) which shall be reevidenced by the Exit Facility) shall have expired or been
cancelled, and all amounts outstanding thereunder (including, without limitation, all fees accrued
but unpaid thereunder to the Effective Date, whether or not then payable under the terms thereof)
have been repaid in full (which termination and repayment may be contemporaneous with the delivery
of the closing deliverables under this Section 2.16 and the application of proceeds of any
borrowings and the issuance of any letters of credit under the Exit Facility Agreement to occur on
the Effective Date); and (ii) satisfactory arrangements shall have been made for the termination of
all Liens and guarantees granted in connection therewith.

          (c) Exit Facility The Trustee shall have received an Officers’ Certificate of the
Company certifying that all conditions precedent to the effectiveness of the Exit Facility
Agreement shall have been satisfied or waived in accordance with its terms.

          (d) Senior Loan Agreement The Trustee shall have received an Officers’ Certificate of
the Company certifying that all conditions precedent to the effectiveness of the Senior Loan
Agreement shall have been satisfied or waived in accordance with its terms and the loans thereunder
shall have been deemed made.

          (e) Intercreditor Arrangements The Trustee shall have received the Intercreditor
Agreement, executed and delivered by all parties thereto.

46

 

          (f) Reorganization Plan The Trustee shall have received a copy of the Notice of (A)
Entry of Order Confirming Fourth Amended Joint Plan of Reorganization for Debtors and
Debtors-In-Possession (As Modified); (B) Effective Date of the Plan; (C) the Substantial
Consummation of the Plan; and (D) Bar Dates for Certain Administrative Claims and Professional
Claims as filed with the Bankruptcy Court on the Effective Date.

          (g) Fees The Trustee shall have received an Officers’ Certificate of the Company
certifying that the holders of Bank Claims and Surety Claims (as defined in the Reorganization
Plan) and the Trustee have received all fees required to be paid, and all expenses for which
invoices have been presented (including the reasonable fees and expenses of legal counsel and
financial advisors), pursuant to the Pre-Petition Credit Agreement, the final order in respect of
the DIP Facility, this Indenture, the other Note Documents and the Confirmation Order (which
receipt may be contemporaneous with, or so long as on the Effective Date subsequent to, the
delivery of the other closing deliverables under this Section 2.16 and the application of proceeds
of any borrowings and the issuance of any letters of credit under the Exit Facility to occur on the
Effective Date).

          (h) Supporting Documents The Trustee shall have received for the Company and each of
the Guarantors:

          (i) a copy of its Organizational Documents, as amended up to and including the
Effective Date, certified as of a recent date by the applicable Governmental Authority of
its jurisdiction of incorporation, organization or formation;

          (ii) (x) with respect to the Company and each Domestic Subsidiary Guarantor, a good
standing certificate from the applicable Governmental Authority of its jurisdiction of
incorporation, organization or formation and from the State of Michigan (to the extent it is
qualified to do business in the State of Michigan), each as of a recent date prior to or on
the Effective Date and (y) with respect to the Company, recent evidence of its qualification
to do business as a foreign corporation in each State of the United States of America;

          (iii) with respect to any Foreign Subsidiary Guarantor, such customary evidence of its
legal existence, its power and authority to enter into the Note Documents to which it is a
party and the incumbency and signatures of its officers or other representatives and such
other documents or evidence as shall be required to be delivered pursuant to the Exit
Facility.

          (iv) signature and incumbency certificates of its officers executing this Indenture and
the other Note Documents to which it is a party, dated as of the Effective Date; and

          (v) duly adopted resolutions of its Board of Directors or similar governing body
approving and authorizing the execution, delivery and performance of this Indenture and the
other Note Documents to which it is a party or by which it or its assets may be bound as of the Effective Date, certified as of the Effective Date by its

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Secretary or Assistant Secretary or Person serving an analogous function as being in full
force and effect without modification or amendment.

          (i) Opinion of Counsel The Trustee shall have received (i) the favorable written
opinion of counsel to the Company and the Guarantors substantially in the form of Exhibit L and
(ii) such other legal opinions as are also provided to the lenders under the Exit Facility (with
such modifications to make such opinions applicable to the Notes, this Indenture and the other Note
Documents).

          (j) Confirmation Order The Trustee shall have received a copy of the Confirmation
Order, certified by an Officer of the Company to be a true, complete and correct copy of such
document, and further certifying that the Confirmation Order (i) is in full force and effect and
has not been stayed, reversed, modified or amended and (ii) approves and authorizes the
transactions contemplated by this Indenture, the other Note Documents and the Reorganization Plan
and otherwise is not inconsistent with the provisions hereof and thereof.

          (k) Qualification under the Trust Indenture Act The Trustee shall have received a
copy of the Form T-3 filed with the SEC for qualification of this Indenture under the TIA.

          SECTION 2.17.  Book-Entry Provisions for Global Notes.

          (a) The Global Notes initially shall (i) be registered in the name of the Depository or the
nominee of such Depository, (ii) be delivered to the Trustee as custodian for such Depository and
(iii) bear legends as set forth in Exhibit H.

     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 Depository, or the Trustee
as its custodian, or under the 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 the Global Note for
all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company,
the Trustee or any agent of the Company or the Trustee from giving effect to any written
certification, proxy or other authorization furnished by the Depository or 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 Global Notes shall be limited to transfer in whole, but not in part, to the
Depository, its successors or their respective nominees. Interests of beneficial owners in the
Global Notes may be transferred or exchanged for Physical Notes in accordance with the rules and
procedures of the Depository. In addition, Physical Notes shall be transferred to all beneficial
owners in exchange for their beneficial interests in Global Notes if (i) the Depository notifies
the Company that it is unwilling or unable to continue as Depository for any Global Note and a
successor depositary is not appointed by the Company within 90 days of such notice or (ii) an Event
of Default has occurred and is continuing and the Registrar has received a written request from the
Depository to issue Physical Notes.

          (c) In connection with any transfer or exchange of a portion of the beneficial interest in any
Global Note to beneficial owners pursuant to paragraph (b), the Registrar shall (if

48

 

one or more Physical Notes are to be issued) reflect on its books and records the date and a decrease in the
principal amount of the Global Note in an amount equal to the principal amount of the beneficial
interest in the Global Note to be transferred, and the Company shall execute, and the Trustee shall
upon receipt of a written order from the Company authenticate and make available for delivery, one
or more Physical Notes of like tenor and amount.

          (d) In connection with the transfer of Global Notes as an entirety to beneficial owners
pursuant to paragraph (b), the Global Notes shall be deemed to be surrendered to the Trustee for
cancellation, and the Company shall execute, and the Trustee shall authenticate and deliver, to
each beneficial owner identified by the Depository in writing in exchange for its beneficial
interest in the Global Notes, an equal aggregate principal amount of Physical Notes.

          (e) The Holder of any 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, the Notes or the Guarantees.

ARTICLE 3

REDEMPTION

          SECTION 3.1.   Notices to Trustee. If the Company elects to redeem Notes pursuant to
Section 3.7 or is required to redeem Notes pursuant to Section 3.8, at least 5 days prior to the
Redemption Date (or such shorter period prior to the Redemption Date as the Trustee may agree to in
writing) and at least 1 Business Day before the Company is required to mail or cause to be mailed,
or send by facsimile or cause to be sent by facsimile, notice to each Holder of Notes to be
redeemed pursuant to Section 3.3 (or such shorter period as the Trustee may agree to in writing),
the Company shall notify the Trustee in writing of the Redemption Date, the principal amount of
Notes to be redeemed and the redemption price, and deliver to the Trustee an Officers’ Certificate
stating that such redemption will comply with the conditions contained in Section 3.7 or Section
3.8, as the case may be.

          SECTION 3.2.   Selection by Trustee of Notes to Be Redeemed. In the event that fewer
than all of the Notes are to be redeemed, the Trustee shall select the Notes to be redeemed, if the
Notes are listed on a national securities exchange, in accordance with the rules of such exchange
or, if the Notes are not so listed, on a pro rata basis. As soon as practicable but not less than 5
days prior to the Redemption Date (or such shorter period as the Company may agree to in writing),
the Trustee shall notify the Company of the Notes selected for redemption and, in the case of any
Notes selected for partial redemption, the principal amount thereof to be redeemed. For all
purposes of this Indenture unless the context otherwise requires, provisions of this Indenture that
apply to Notes called for redemption also apply to portions of Notes called for redemption.

          SECTION 3.3.   Notice of Redemption. At least 5 days, but no more than 30 days, before a Redemption
Date, the Company shall
mail, or cause to be mailed, a notice of redemption by first-class mail to each Holder of Notes to
be redeemed at his last address as the same appears on the registry books maintained by the
Registrar pursuant to Section 2.3 hereof, or

49

 

send by facsimile or cause to be sent by facsimile a
notice of redemption to each Holder of Notes to be redeemed to a facsimile number, if any,
appearing on the registry books maintained by the Registrar pursuant to Section 2.3 hereof. For
Holders of Physical Notes for which the Company does not have an address or facsimile number,
neither the Company nor the Trustee shall be required to provide such Holder with a notice of
redemption pursuant to this Section 3.3. For purposes of providing notice under this Section 3.3,
the Trustee is under no obligation and has no duty to determine whether a Holder has provided the
Company with an address or facsimile number for use in the register of Notes or whether the
register of Notes contains an address or facsimile number for each Holder.

     The notice shall identify the Notes to be redeemed (including the CUSIP number(s) thereof) and
shall state:

               (a) the Redemption Date;

               (b) the redemption price and the amount of accrued interest, if any, to be paid (or the method
by which any such amount of accrued interest to be paid is to be calculated);

               (c) if any Note is being redeemed in part, the portion of the principal amount of such Note to
be redeemed and that, after the Redemption Date and upon surrender of such Note, a new Note or
Notes in principal amount equal to the unredeemed portion will be issued;

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

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

               (f) that unless the Company defaults in making the redemption payment, interest on Notes
called for redemption ceases to accrue on and after the Redemption Date and that the only remaining
right of the Holders of such Notes is to receive payment of the redemption price upon surrender to
the Paying Agent of the Notes redeemed; and

               (g) the aggregate principal amount of Notes that are being redeemed.

     At the Company’s request, the Trustee shall, with respect to any Global Notes, or Physical
Notes for which the Registrar has an address or facsimile number for the Holder of such Physical
Notes reflected in the register of Notes maintained by the Registrar pursuant to Section 2.3
hereof, give the notice of redemption in the Company’s name and at the Company’s expense.

     SECTION 3.4.   Effect of Notice of Redemption. Once the notice of redemption
described in Section 3.3 is mailed or transmitted as provided herein, Notes called for redemption
become due and payable on the Redemption Date and at the redemption price, including any premium, plus interest accrued and unpaid to the
Redemption Date. Upon surrender to the Paying Agent, such Notes shall be paid at the redemption
price, including any premium, plus interest accrued and unpaid to the Redemption Date,
provided, further, that such interest shall accrue in accordance with paragraph 1
of the reverse side of the Notes but shall be payable all in

50

 

cash; provided,
further, that if the Redemption Date is after a regular interest payment record date and on
or prior to the applicable Interest Payment Date, the accrued and unpaid interest shall be payable
to the Holder of the redeemed Notes registered on the relevant record date, and provided,
further, that if a Redemption Date is a Legal Holiday, payment shall be made on the next
succeeding Business Day and no interest shall accrue for the period from such Redemption Date to
such succeeding Business Day. Payment of the redemption price in respect of Physical Notes shall
be made by check mailed to each Holder thereof sent to such Holder’s address as shall have been
provided to the Trustee by the Company or the Holder. No payment of the redemption price in
respect of Physical Notes shall be made until such address information has been received by the
Trustee. The Trustee shall not be obligated to confirm any such address it receives.

          SECTION 3.5.   Deposit of Redemption Price. On or prior to 10:00 a.m., New York City
time, on each Redemption Date, the Company shall deposit with the Paying Agent in immediately
available funds money sufficient to pay the redemption price of and accrued and unpaid interest on
all Notes to be redeemed on that date other than Notes or portions thereof called for redemption on
that date which have been delivered by the Company to the Trustee for cancellation.

     On and after any Redemption Date, if money sufficient to pay the redemption price of and
accrued interest on Notes called for redemption shall have been made available in accordance with
the preceding paragraph and payment thereof is not prohibited pursuant to the terms of this
Indenture, the Notes called for redemption will cease to accrue interest and the only right of the
Holders of such Notes will be to receive payment of the redemption price of and, subject to the
first proviso in Section 3.4, accrued and unpaid interest on such Notes to the Redemption Date
regardless of whether the Holder has received actual notice of such redemption. If any Note called
for redemption shall not be so paid, interest will be paid, from the Redemption Date until such
redemption payment is made, on the unpaid principal of the Note and any interest not paid on such
unpaid principal, in each case, at the rate and in the manner provided in the Notes.

          SECTION 3.6.   Notes Redeemed in Part. Upon surrender of a Note that is redeemed in
part, the Trustee shall authenticate for a Holder a new Note equal in principal amount to the
unredeemed portion of the Note surrendered. If the pro rata redemption would result in a Holder
receiving a remaining interest in a Note with an interest of less than a dollar integral, the
principal amount of the new Notes received by the Holder will be rounded up to the nearest dollar
integral.

          SECTION 3.7.   Optional Redemption. The Company may redeem the Notes, in whole or in part, at any time after the
Effective Date
at a redemption price equal to 100% of the principal amount thereof, plus any accrued and unpaid
interest to the Redemption Date.

          SECTION 2.8.   Mandatory Redemption. (a)  Commencing with the fiscal year of the
Company ending December 31, 2008, the sum of:

     (i) an amount equal to the Applicable Amount of the Adjusted Excess Cash Flow
for such fiscal year of the Company; and

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     (ii) an amount equal to the Applicable Amount of the Adjusted Positive EBITDA
Variance for such fiscal year of the Company;

(such amount, the “Cash Sweep Amount”) shall be applied to redeem the Notes on a pro rata basis at
a redemption price equal to 100% of the principal amount thereof, plus any accrued and unpaid
interest to the Redemption Date, on a Redemption Date that shall be no later than April 15 of the
year immediately following such fiscal year (such redemption, a “Mandatory Redemption”).
Notwithstanding the foregoing, prior to any Mandatory Redemption, the Company shall first use the
Cash Sweep Amount, if any, to the extent the Company is required by the terms of the Exit Facility,
the Senior Loan Facility, the Additional Liquidity Facility or the Intercreditor Agreement, to
prepay, repay, redeem or purchase Exit Facility Indebtedness, Senior Loan Facility Indebtedness or
Additional Liquidity Facility Indebtedness (as applicable) of the Company or Exit Facility
Indebtedness, Senior Loan Facility Indebtedness or Additional Liquidity Facility Indebtedness (as
applicable) of a Wholly-Owned Subsidiary (in each case, other than any such Indebtedness owed to
the Company or an Affiliate of the Company).

          (b) A Mandatory Redemption shall not be required if such Redemption would be prohibited by the
terms of the Exit Facility, the Senior Loan Facility or the Additional Liquidity Facility, or the
Intercreditor Agreement.

ARTICLE 4

COVENANTS

          SECTION 4.1.   Payment of Notes. The Company shall pay, or cause to be paid, the
principal of, and premium, if any, and interest on, the Notes on the dates and in the manner
provided herein and in the Notes. The principal, premium, if any, or cash interest shall be
considered fully paid on the date due if the Trustee or Paying Agent (other than the Company, a
Subsidiary of the Company or any Affiliate of any thereof) holds on that date money (in accordance
with paragraph 1 of the reverse side of the Notes) designated for and sufficient to pay such
principal, premium, if any, or cash interest, as the case may be.

          Any PIK Payment shall be considered fully paid on the date it is due if on such date (1) if
the PIK Payment is made by issuance of PIK Notes, such PIK Notes in the required amount of PIK Interest have been authenticated and delivered in accordance with the terms of
this Indenture, or (2) if the PIK Payment is made by increasing the principal amount of Global
Notes then authenticated, the Trustee has increased the principal amount of Global Notes previously
authenticated by the required amount of PIK Interest.

          The Company shall pay interest on overdue principal (including post-petition interest in any
proceeding under any Bankruptcy Law) and on overdue installments of interest at the Default
Interest rate as defined in paragraph 1 of the reverse side of the Notes, to the extent lawful.

          SECTION 4.2. SEC Reporting. The Company shall file with the SEC all information,
documents and reports to be filed with the SEC pursuant to Section 13 or 15(d) of the Exchange Act,
whether or not the Company is subject to such filing requirements, so long as

52

 

the SEC will accept such filings on or prior to the respective dates (such dates, including any extension granted by
the SEC, the “Required Filing Dates”) by which the Company would have been or is required to so
file such documents. The Company (at its own expense) shall also in any event within 15 days after
each Required Filing Date (i) transmit by mail to all Holders, at their addresses appearing in the
register of Notes maintained by the Registrar and (ii) file with the Trustee copies of the annual
reports and of the information, documents and other reports (or copies of such portions of any of
the foregoing as the SEC may by rules and regulations prescribe) which the Company files with the
SEC pursuant to Section 13 or 15(d) of the Exchange Act or would be required to file with the SEC
if it were subject to Section 13 or 15(d) of the Exchange Act. The Company shall comply with the
provisions of TIA Section 314(a). Delivery of such reports, information and documents to the
Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute
constructive notice of any information contained therein or determinable from information contained
therein, including the Company’s compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officers’ Certificates).

          SECTION 4.3.   Waiver of Stay, Extension or Usury Laws. The Company and each
Guarantor covenants (to the extent that it may lawfully do so) that it will not at any time insist
upon, or plead (as a defense or otherwise) or in any manner whatsoever claim or take the benefit or
advantage of, any stay or extension law or any usury law or other law which would prohibit or
forgive the Company or such Guarantor, as the case may be, from paying all or any portion of the
principal of, premium, if any, and/or interest on the Notes as contemplated herein and/or in the
Notes, wherever enacted, now or at any time hereafter in force, or which may affect the covenants
or the performance of this Indenture; and (to the extent that it may lawfully do so) the Company
and each Guarantor expressly waives all benefit or advantage of any such law, and covenants that it
will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will
suffer and permit the execution of every such power as though no such law had been enacted.

          SECTION 4.4.   Compliance Certificates. (a)  The Company and each Guarantor (to the extent that such
Guarantor is so required under
the TIA) shall deliver to the Trustee, within 120 days after the end of each fiscal year, an
Officers’ Certificate (one of the signers of which shall be the principal executive officer,
principal financial officer or principal accounting officer of the Company or such Guarantor, as
the case may be) complying with Section 314(a)(4) of the TIA stating that a review of the
activities of the Company or such Guarantor, as the case may be, during such fiscal year has been
made under the supervision of the signing Officers with a view to determining whether the Company
or such Guarantor, as the case may be, has kept, observed, performed and fulfilled its obligations
under the Security Documents and this Indenture, and further stating, as to each such Officer
signing such certificate, that to the best of such Officer’s knowledge the Company or such
Guarantor, as the case may be, has kept, observed, performed and fulfilled each and every covenant
contained in the Security Documents in all material respects and this Indenture and is not in
default in the performance or observance of any of the terms, provisions and conditions thereof or
hereof (determined without regard to any period of grace or requirement of notice provided herein),
or, if a Default or Event of Default shall have occurred, describing all or such Defaults or Events
of Default of which such Officer may have knowledge and what action the Company or such Guarantor,
as the case may be, is taking or proposes to take with respect thereto.

53

 

          (b) The Company will, so long as any of the Notes are outstanding, deliver to the Trustee,
forthwith upon any officer’s becoming aware of any Default or Event of Default, an Officers’
Certificate specifying the nature and extent of the same in reasonable detail and what action the
Company or the Guarantors, as the case may be, is taking or proposes to take with respect thereto.

          (c) The Company will, so long as any of the Notes are outstanding, deliver to the Trustee, no
later than 45 days after the end of each of its fiscal quarters (75 days in the case of the last
fiscal quarter of its fiscal year), an Officers’ Certificate substantially in the form of Exhibit
D, specifying the Company’s Consolidated Senior Leverage Ratio in accordance with paragraph 1 of
the reverse side of the Notes and the terms of this Indenture. The foregoing obligation shall
terminate after the earlier to occur of (i) the fifth anniversary of the Effective Date and (ii)
the date of delivery of such a certificate certifying that the Company’s Consolidated Senior
Leverage Ratio was less than 2.75:1.00 in accordance with paragraph 1 of the reverse side of the
Notes and the terms of this Indenture.

          SECTION 4.5.   Taxes. The Company shall pay or discharge or cause to be paid or
discharged, before the same shall become delinquent, (a) all taxes, assessments and governmental
charges levied or imposed upon it or its Subsidiaries’ income, profits or property and (b) all
lawful claims for labor, materials and supplies which, if unpaid, might by law become a Lien upon
their property; provided, however, that the Company shall not be required to pay or
discharge or cause to be paid or discharged any such tax, assessment, charge or claim (1) whose
amount, applicability or validity is being contested in good faith by appropriate negotiations or
proceedings or (2) the failure to pay or discharge would not have a material adverse effect on the
Company and its Subsidiaries, taken as a whole.

          SECTION 4.6.   Corporate Existence. Subject to Article 5 hereof, the Company shall do
or cause to be done all things necessary to preserve and keep in full force and effect its
corporate existence, and the corporate, partnership or other existence of each of its Subsidiaries,
in accordance with the respective organizational documents (as the same may be amended from time to
time) of its Subsidiaries and the rights (charter and statutory), licenses and franchises of the
Company and its Subsidiaries; provided, however, that the Company shall not be
required to preserve any such right, license or franchise, or the corporate, partnership or other
existence of any of its Subsidiaries, if the Company determines that the preservation thereof is no
longer desirable in the conduct of the business of the Company and its Subsidiaries, taken as a
whole.

          SECTION 4.7.   Maintenance of Insurance. (a) The Company and each of its
Subsidiaries shall provide or cause to be provided, for itself and each of their respective
Subsidiaries, insurance that is adequate and appropriate for the conduct of the business of the
Company and such Subsidiaries in a prudent manner, with reputable insurers or with the government
of the United States of America or an agency or instrumentality thereof, in such amounts, with such
deductibles, and by such methods as shall be customary for and available to businesses similarly
situated in the industry.

          (b) The Company shall cause the Collateral Trustee to at all times be named as loss payee with
respect to all “All Risk” insurance policies and an additional insured (but

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without any liability for premiums) under all general liability insurance policies maintained pursuant to Section 4.7(a).

          SECTION 4.8.   Inspection of Books and Records; Compliance with Laws. (a)  The Company
shall and shall cause each of its Subsidiaries to keep proper books of record and account, in which
full and correct entries shall be made of all financial transactions and the assets and business of
the Company and each Subsidiary of the Company, in accordance with GAAP consistently applied to the
Company and its Subsidiaries on a consolidated basis or in the case of any Foreign Subsidiary, the
foreign equivalent of GAAP in the jurisdiction of organization or location.

          (b) The Company shall and shall cause each of its Subsidiaries to comply with all statutes,
laws, ordinances, or government rules and regulations to which they are subject, noncompliance with
which would materially adversely affect the business, properties, operations or financial condition
of the Company and its Subsidiaries taken as a whole.

          SECTION 4.9.   Additional Pledges. (a) If on or after the Effective Date, the
Company or any Subsidiary pledges property or assets to secure obligations under the Senior Loan
Agreement, the Exit Facility or the Additional Liquidity Facility (other than pursuant to the
Security Documents or as contemplated by the Senior Loan Agreement, the Exit Facility and the
Additional Liquidity Facility, each as in effect on the Effective Date) then such property or
assets shall also secure the Notes. In the event the Senior Loan Facility Indebtedness, the Exit
Facility Indebtedness and the Additional Liquidity Facility Indebtedness cease to be outstanding and the commitments under the Senior
Loan Agreement, the Exit Facility Agreement and the Additional Liquidity Facility (and any
replacement or successor agreement) are terminated, promptly (and in any event within ten (10)
Business Days) after the creation or acquisition by the Company of a new Subsidiary that becomes a
Guarantor pursuant to Section 4.22, the Company shall cause such Subsidiary to become a party to
the Security Documents and the Company or Guarantor that is such new Guarantor’s direct parent
company shall execute a pledge agreement in form and substance reasonably satisfactory to the
Trustee and pursuant to which all the Capital Stock of such new Guarantor shall be pledged to the
Trustee (for the benefit of the Holders) to secure the Obligations and such other related documents
as the Trustee may request, all in form and substance satisfactory to the Trustee.

          (b) Within 90 days after the Effective Date (or such longer period as the Exit Facility Agent
may agree in its reasonable discretion), the Company shall execute and deliver Foreign Pledge
Agreements in respect of the Capital Stock of each of the Foreign Subsidiaries listed on Schedule
8, if and to the extent that such Capital Stock then constitutes Collateral (as defined in the
Collateral Agreement).

          SECTION 4.10.   Limitation on Additional Indebtedness. The Company will not, and will
not permit any of its Subsidiaries to, directly or indirectly, Incur any Indebtedness (including
Acquired Indebtedness); provided, however, that the Company or any Guarantor may
incur Indebtedness (including Acquired Indebtedness but excluding Designated Senior Debt) if (i)
after giving effect on a pro forma basis to the incurrence of such Indebtedness and, to the extent
set forth in the definition of Consolidated Debt Service Coverage Ratio, the receipt and
application of the proceeds thereof, (A) for any period ending prior to, but not including, the
last

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day of the thirteenth fiscal quarter after Effective Date, the Company’s Consolidated Debt
Service Coverage Ratio would be greater than 1.5 to 1, and (B) for any period beginning on or after
the thirteenth fiscal quarter after Effective Date, the Company’s Consolidated Debt Service
Coverage Ratio would be greater than 1.1 to 1, and (ii) no Default or Event of Default shall have
occurred and be continuing at the time or as a consequence of the incurrence of such Indebtedness.

     The foregoing paragraph shall not prohibit the incurrence of the following:

     (i) Indebtedness in connection with the Notes, the Guarantees and any and PIK
Notes issued from time to time as payment of PIK Interest on the Notes and any
increase in the principal amount of Notes as a result of a PIK Payment;

     (ii) [RESERVED];

     (iii) Indebtedness incurred pursuant to the Exit Facility, Senior Loan Facility
and the Additional Liquidity Facility in an aggregate principal amount at any time
outstanding not to exceed the Designated Senior Debt Limit;

     (iv) Purchase Money Indebtedness and other Indebtedness (including, without
limitation, Capital Lease Obligations) incurred after the Effective Date to finance
the acquisition of fixed or capital assets provided that the aggregate
principal amount of Indebtedness Incurred in reliance on this clause (iv) shall
not exceed $100,000,000 in any fiscal year of the Company;

     (v) (A) Guarantee Obligations of any Group Member of Indebtedness of any Loan
Party, (B) Guarantee Obligations of any Subsidiary that is not a Guarantor of
Indebtedness of any other Subsidiary that is not a Guarantor and (C) Guarantee
Obligations of any Group Member in respect of any Foreign Credit Facility and other
Indebtedness of any Excluded Subsidiary permitted under clause (xxvi) below;

     (vi) (i) Indebtedness of the Company to any Subsidiary and of any Guarantor to
any Group Member, (ii) Indebtedness of any Subsidiary that is not a Guarantor to any
other Subsidiary that is not a Guarantor and (iii) any Intercompany Loan Owed to
U.K. Subsidiaries;

     (vii) (a) Indebtedness outstanding on the date hereof and listed on Schedule 5
and (b) any refinancings, replacements, refundings, renewals or extensions thereof
(without increasing, or shortening the maturity of, the principal amount thereof);
provided that this clause (vii) shall not permit the incurrence of any new
Indebtedness to refinance, replace, refund, renew or extend any Indebtedness owing
to a Group Member unless the obligee on such new Indebtedness is also a Group
Member;

     (viii) Indebtedness of a Subsidiary of the Company Incurred and outstanding on
or prior to the date on which such Subsidiary was acquired by the Company;
provided, however, that on the date of such acquisition and after
giving

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pro forma effect thereto, the Company would have been able to Incur at least
$1.00 of additional Indebtedness pursuant to clause (i) of the first paragraph of
this Section 4.10 (except that the foregoing proviso shall not apply to the extent a
Subsidiary of the Company would have been able to Incur such Indebtedness pursuant
to the Senior Loan Agreement as in effect on the date hereof);

     (ix) Indebtedness in respect of Interest Rate Agreements, Currency Agreements
and Swap Agreements; provided that the notional principal amount related to
any Interest Rate Agreement does not exceed the principal amount of the Indebtedness
to which any Interest Rate Agreement relates;

     (x) (a) Indebtedness (including Guarantee Obligations) incurred by the Company
and the U.K. Subsidiaries in connection with the Company Voluntary Arrangements, the
U.K. Settlement Agreement and financing the retention of the Intercompany Notes, and
(b) Intercompany Loans from T&N Limited to any other U.K. Subsidiary or from any
U.K. Subsidiary to T&N Limited in the ordinary course of business and solely in
connection with the establishment and operation of the consolidated cash management
system of the U.K. Subsidiaries;

     (xi) Indebtedness incurred to fund Joint Venture Put Obligations relating to
Turkish Joint Ventures in an aggregate outstanding principal amount not to exceed at
any date $200,000,000;

     (xii) Indebtedness in respect of netting services, overdraft protections and
otherwise in connection with Deposit Accounts;

     (xiii) Refinancing Notes, provided, however, that the net
proceeds thereof shall be used within one Business Day of receipt to satisfy and
repay the Notes in full;

     (xiv) Indebtedness incurred by a Securitization Entity in a Qualified
Securitization Transaction that is not recourse to the Company or any Subsidiary of
the Company (except for Standard Securitization Undertakings);

     (xv) Guarantees in the ordinary course of business of the obligations of
suppliers, customers, franchisees and licensees of the Company and its Subsidiaries;

     (xvi) Indebtedness incurred in the ordinary course of business under travel and
expense cards, corporate purchasing cards and car leasing programs, and Guarantee
Obligations of the Company with respect to any such Indebtedness;

     (xvii) Indebtedness represented by performance bonds, warranty or contractual
service obligations, standby letters of credit or appeal bonds, in each case to the
extent incurred in the ordinary course of business of the Company and its
Subsidiaries;

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     (xviii) Indebtedness outstanding on the date hereof;

     (xix) Permitted Subordinated Indebtedness provided that the net
proceeds therefrom are used in compliance with the Exit Facility Agreement and the
Senior Loan Agreement as in effect on the date hereof;

     (xx) Indebtedness (whether intercompany or third-party) incurred in the
ordinary course of business in connection with Liens created in the ordinary course
of business in favor of banks and other financial institutions over credit balances
of any bank accounts of any Group Member held at such banks or financial
institutions, as the case may be, to facilitate the operation of cash pooling and/or
interest set-off arrangements in respect of such bank accounts in the ordinary
course of business;

     (xxi) Indebtedness secured by Permitted Liens set forth in clauses (v), (vi),
(vii), (viii) (to the extent deemed Indebtedness), (xii), (xx) and (xxviii) of the
definition thereof;

     (xxii) Indebtedness of the Group Members, in an aggregate amount not to exceed
$300,000,000, issued on the Effective Date in satisfaction of the Other Unsecured
Claims pursuant to the Reorganization Plan;

     (xxiii) (a) Indebtedness of any Excluded Subsidiary to the Company or any
Guarantor existing on the Effective Date and (b) additional Indebtedness of any
Excluded Subsidiary to the Company or any Guarantor Incurred after the Effective
Date and consisting of Intercompany Loans permitted under clause (xvii)(b) of the
definition of “Permitted Investments”;

     (xxiv) Intercompany Loans incurred in order to consummate the Tax Restructuring
(including any Intercompany Loans arising solely as a result of the
recharacterization as Indebtedness of any equity Investment made by any Group Member
in any other Group Member and permitted by Section 4.15);

     (xxv) Indebtedness of any Group Member owed to any other Group Member and
arising solely as a result of the recharacterization as Indebtedness of any equity
Investment made by any Group Member in any other Group Member and permitted by
Section 4.15; or

     (xxvi) Indebtedness not otherwise permitted to be incurred pursuant to clauses
(i) through (xxv) above, which, together with any other Indebtedness incurred
pursuant to this clause (xxvi), has an aggregate principal amount any time
outstanding not in excess of $1,000,000,000.

     For purposes of determining compliance with, and the outstanding principal amount of a
particular Indebtedness incurred pursuant to and in compliance with this Section 4.10, in the event
such Indebtedness meets the criteria of more than one of the types of Indebtedness described in the
first paragraph of this Section 4.10 or in clauses (i) through (xxvi) of the second paragraph of
this Section 4.10, (a) the Company, in its sole discretion, shall classify such item of

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Indebtedness and only be required to include the amount and type of such Indebtedness either in the
first paragraph of this Section 4.10 or one of such clauses in the second paragraph of this Section
4.10, or any combination thereof, and (b) the Company, in its sole discretion, may reclassify such
item of Indebtedness under a different paragraph or clause of this Section 4.10 so long as such
Indebtedness met the criteria of such paragraph or clause on the date on which it was Incurred.

          SECTION 4.11.   Limitations on Additional Liens. Subject to Section 4.9, the Company
will not, and will not permit any of its Subsidiaries to, create, incur or otherwise cause or
suffer to exist or become effective any Liens of any kind (other than Permitted Liens) upon any
property or asset of the Company or any Subsidiary or any shares of stock or debt of any Subsidiary
which owns property or assets, now owned or hereafter acquired, or any income or profits therefrom
in each case, as Security for any Indebtedness, unless (i) if such Lien secures Indebtedness which
is pari passu with the Notes, then the Notes are secured on an equal and ratable basis with the
obligations so secured until such time as such obligations are no longer secured by a Lien or (ii)
if such Lien secures Subordinated Indebtedness, any such Lien shall be subordinated to a Lien on such property or asset or shares of stock or debt granted to the
Holders of the Notes to the same extent as such Subordinated Indebtedness is subordinated to the
Notes.

     SECTION 4.12.   Limitation on Certain Asset Sales. Neither the Company nor any of its
Subsidiaries will consummate or permit, directly or indirectly, any Asset Sale, unless:

     (i) the Company or such Subsidiary, as the case may be, receives consideration
at the time of such Asset Sale at least equal to the fair market value, as
determined in good faith by the Company (including as to the value of all non-cash
consideration), of the shares and assets subject to such Asset Sale;

     (ii) at least 66 2/3% of the consideration from such Asset Sale received by the
Company or such Subsidiary, as the case may be, is in the form of cash or Cash
Equivalents; provided, that up to an aggregate of $25,000,000 of Asset Sales
per fiscal year shall not be subject to the requirements of this clause (ii); and

     (iii) with respect to any Net Cash Proceeds related to Collateral in the form
of cash or Cash Equivalents (including cash collected on any notes), and any
Insurance Proceeds or Condemnation Proceeds on account of any separate loss of any
Collateral of the Company or its Subsidiaries in excess of $50,000,000 during any
fiscal year which are not applied to the repair, rebuilding, restoration or
replacement of the Collateral affected by the subject Loss Event, (in any such case,
the “Collateral Proceeds Amount”), the Company shall either (i) first, to the extent
the Company elects (or is required by the terms of any such Indebtedness or the
Intercreditor Agreement), prepay, repay, redeem or purchase Exit Facility
Indebtedness, Senior Loan Facility Indebtedness or Additional Liquidity Facility
Indebtedness of the Company or Exit Facility Indebtedness, Senior Loan Facility
Indebtedness or Additional Liquidity Facility Indebtedness of a Wholly-Owned
Subsidiary (in each case, other than any such Indebtedness owed to the Company or an
Affiliate of the Company) within 365 days from the later of the date of such Asset
Sale or the receipt of such Collateral Proceeds

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Amount; provided,
however, that in connection with any prepayment, repayment or purchase of
Exit Facility Indebtedness or Senior Loan Facility Indebtedness pursuant to this
clause (i), the Company or such Wholly-Owned Subsidiary will retire such
Indebtedness and will cause the related loan commitment (if any) to be permanently
reduced in an amount equal to the principal amount so prepaid, repaid or purchased
pursuant to such election or, (ii) second, to the extent the Company elects, apply
the Collateral Proceeds Amount to acquire property (provided that, in the
case of an Asset Sale of property constituting Collateral under the Security
Documents, the Company shall cause such property to become Collateral under the
Security Documents, to the extent required therein, as and when received by the
Company or by any of its Subsidiaries promptly thereafter), that is useful in any
business in which the Company or any Wholly-Owned Subsidiary is permitted to be
engaged within 365 days from the later of the date of such Asset Sale or the receipt
of such Collateral Proceeds Amount and (iii) third, to the extent the Company does not apply Collateral Proceeds Amount pursuant to
clauses (i) and (ii) above, make an offer (a “Collateral Proceeds Offer”) for up to
a maximum principal amount (expressed as an integral multiple of $1,000) of Notes
equal to the Collateral Proceeds Amount to the extent of the balance of such
Collateral Proceeds Amount after application in accordance with clauses (i) and
(ii), at a purchase price equal to 100% of the principal amount thereof plus accrued
and unpaid interest thereon, if any, to the date of purchase in accordance with the
procedures set forth in this Indenture. To the extent that the aggregate principal
amount of Notes tendered pursuant to such Collateral Proceeds Offer is less than the
Collateral Proceeds Amount, the Company may use such portion of the Collateral
Proceeds Amount that is not used to purchase Notes tendered for general corporate
purposes not inconsistent with the Notes or this Indenture. If the aggregate
principal amount of the Notes tendered pursuant to such Collateral Proceeds Offer is
more than the Collateral Proceeds Amount, the Notes tendered will be repurchased on
a pro rata basis or by such other method as the Trustee shall deem fair and
appropriate. Upon the completion of any Collateral Proceeds Offer and the closing of
any repurchase of Notes tendered pursuant to such Collateral Proceeds Offer, the
amount of Collateral Proceeds Amount shall be deemed to be zero.

     If the Company is required to make a Collateral Proceeds Offer, the Company shall mail, within
30 days following the date on which the Company becomes obligated to make a Collateral Proceeds
Offer pursuant to clause (iii) of the immediately preceding paragraph, notice to the holders of the
Notes stating, among other things: (1) that such holders have the right to require the Company to
apply the Collateral Proceeds Amount to repurchase such Notes at a purchase price in cash equal to
100% of the principal amount thereof plus accrued and unpaid interest, if any, to the date of
purchase; (2) the purchase date, which shall be no earlier than 30 days and not later than 60 days
from the date such notice is mailed; (3) the instructions, determined by the Company, that each
holder of Notes must follow in order to have such Notes repurchased; and (4) the calculations used
in determining the amount of Collateral Proceeds Amount to be applied to the repurchase of such
Notes.

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     Pending their use as hereinabove prescribed, all Net Cash Proceeds from Asset Sales of
property constituting Collateral, Insurance Proceeds and Condemnation Proceeds from Loss Events and
non-cash consideration from Asset Sales of property constituting Collateral, including all
Collateral Proceeds Amounts, shall be applied as provided for under the Security Documents.

     With respect to any disposition of assets or property permitted pursuant to this Section 4.12
and this Indenture, the Trustee agrees on reasonable prior written notice to release its Lien on
such assets or other properties in order to permit the Company or Subsidiary, as applicable, to
effect such disposition and shall execute and deliver to the Company, at its expense, appropriate
UCC termination statements and other releases as reasonably requested by the Company.

     To the extent that the provisions of any securities laws or regulations conflict with
provisions of this covenant, the Company will comply with the applicable securities laws and
regulations and will not be deemed to have breached its obligations under this covenant by virtue
thereof.

          SECTION 4.13.   Limitation on Dividends and Other Payment Restrictions Affecting
Subsidiaries. The Company will not, and will not permit any of its Subsidiaries to, directly or
indirectly, create or otherwise cause or suffer to exist or become effective any consensual
encumbrance or restriction of any kind on the ability of any of its Subsidiaries to (a) pay
dividends or make any other distributions in cash or otherwise on its Capital Stock to the Company
or any Subsidiary, (b) pay any Indebtedness owed to the Company or any Subsidiary, (c) make loans
or advances to the Company or any Subsidiary thereof, (d) transfer any of its properties or assets
to the Company or any Subsidiary thereof (other than customary restrictions on transfer of property
subject to a Permitted Lien under the term of the agreements creating such Permitted Lien (other
than a Lien on cash not constituting proceeds of non-cash property subject to a Permitted Lien)
which would not materially adversely affect the Company’s ability to satisfy its obligations under
the Notes), or (e) guarantee any Indebtedness of the Company or any Subsidiary of the Company,
except, in each case, for such encumbrances or restrictions existing under or contemplated by
reason of (i) the Notes or this Indenture, (ii) any restrictions existing under or contemplated by
agreements evidencing any Exit Facility Indebtedness, Additional Liquidity Facility Indebtedness or
Senior Loan Facility Indebtedness, (iii) any restrictions which are in existence on the Effective
Date or which exist with respect to a Person that becomes a Subsidiary on or after the Effective
Date, which are in existence at the time such Person becomes a Subsidiary of the Company (but not
created in connection with or contemplation of such Person becoming a Subsidiary of the Company and
which encumbrance or restriction is not applicable to any Person or the property or assets of any
Person other than such Person or the property or assets of such Person so acquired) and any
agreement that refinances or replaces the same; provided, however, that the terms
and conditions of any such restrictions are not materially less favorable in the aggregate to the
holders of the Notes than those under or pursuant to the agreement being replaced or the agreement
evidencing the Indebtedness refinanced or replaced, (iv) customary non-assignment provisions in any
contract or licensing agreement entered into by the Company or any Subsidiary of the Company in the
ordinary course of business or in any lease governing any leasehold
interest of the Company or a Subsidiary, (v) any restrictions existing under or contemplated by agreements evidencing any
Purchase Money Indebtedness that impose restrictions on the ability of any of the Company or

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its
Subsidiaries to transfer the property so acquired to the Company or its Subsidiaries, (vi) any
restrictions existing under or contemplated by Indebtedness or other contractual requirements of a
Securitization Entity in connection with a Qualified Securitization Transaction; provided
that such restrictions apply only to such Securitization Entity, (vii) any restrictions with
respect to a Subsidiary imposed pursuant to an agreement that has been entered into in connection
with the disposition of all or substantially all of the Capital Stock or assets of such Subsidiary,
(viii) any restriction that exists or may arise directly as a result of the Company Voluntary
Arrangements, (ix) any restrictions (other than those described in the preceding clauses) in
existence on the date hereof, (x) any restrictions relating to Excluded Subsidiaries imposed in
connection with the Indebtedness incurred by the Excluded Subsidiaries and permitted under Section
4.10, (xi) any restrictions contained in any agreements to which any Subsidiary that is not a
wholly-owned Subsidiary is a party so long as such restrictions apply solely to such Subsidiary or
any of its Subsidiaries and (xii) any restrictions existing under or contemplated by agreements
evidencing any Indebtedness permitted under clause (vii)(b) of the second paragraph of Section
4.10, providing that the restrictions contained in the agreements governing such Indebtedness are
no more restrictive in whole than those contained in the agreements governing the Indebtedness
being refinanced, replaced, refunded, renewed or extended.

          SECTION 4.14.   Limitation on Restricted Payments. The Company will not, and will not permit any of its
Subsidiaries to, directly or
indirectly, make, any Restricted Payment, unless

          (a) no Default or Event of Default shall have occurred and be continuing at the time of and
immediately after giving effect to such Restricted Payment;

          (b) immediately after giving pro forma effect to such Restricted Payment, the Company could
incur $1.00 of additional Indebtedness under the first paragraph of Section 4.10 hereof; and

          (c) immediately after giving effect to such Restricted Payment, the aggregate of all
Restricted Payments declared or made after the Effective Date through and including the date of
such Restricted Payment (the “Base Period”) (excluding Restricted Payments permitted by clauses
(ii) and (iv) through (ix) below) does not exceed the sum of (1) 50% of the Company’s Consolidated
Net Income (or in the event such Consolidated Net Income shall be a deficit, minus 100% of such
deficit) during the Base Period, (2) 100% of the aggregate Net Cash Proceeds from the issue or sale
during the Base Period of Capital Stock (other than Disqualified Capital Stock or Capital Stock of
the Company issued to any Subsidiary of the Company) of the Company or any Indebtedness of the
Company convertible into or exercisable or exchangeable for Capital Stock (other than Disqualified
Capital Stock) of the Company which has been so converted or exercised or exchanged, as the case
may be, and (3) the aggregate Net Cash Proceeds received by the Company or any Subsidiary from the
sale, disposition or repayment, other than to the Company or a Subsidiary, of any Investment made
after the Effective Date and constituting a Restricted Payment in an amount equal to the lesser of
(x) the return of capital with respect to such Investment and (y) the initial amount of such
Investment, in either case, less
the cost of disposition of such Investment. For purposes of determining under this clause (c)
the amount expended for Restricted Payments, cash distributed shall be valued by the face amount
thereof and property other than cash will be valued at its fair market value.

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     The provisions of this Section 4.14 shall not prohibit:

     (i) the agreement or commitment to make any payment or distribution permitted
under this Indenture or the payment or distribution so agreed or committed to be
made as long as such payment or distribution is made on the date of such agreement
or commitment or within 60 days thereof; provided, however, that on
the date of such agreement or commitment such payment would comply with the
foregoing provisions, it being understood that the agreement or commitment to make
such payment or distribution shall constitute Indebtedness permitted under the
second paragraph of Section 4.10;

     (ii) the retirement of any Capital Stock of the Company or Subordinated
Indebtedness of the Company by conversion into or by an exchange for Capital Stock
(other than Disqualified Capital Stock), or out of the Net Cash Proceeds of the
substantially concurrent sale (other than to a Subsidiary of the Company) of other
Capital Stock of the Company (other than Disqualified Capital Stock);
provided that Net Cash Proceeds of such Capital Stock so used shall not be
included under clause (c)(2) above;

     (iii) the redemption or retirement of Subordinated Indebtedness of the Company
in exchange for, by conversion into, or out of the Net Cash Proceeds of, a
substantially concurrent sale or incurrence of Indebtedness (other than any
Indebtedness owed to a Subsidiary of the Company) that is contractually subordinated
in right of payment to the Notes to at least the same extent as the Subordinated
Indebtedness being redeemed or retired;

     (iv) the purchase, redemption or other acquisition for value of shares of
Capital Stock of the Company or its Subsidiaries (other than Disqualified Capital
Stock) or options or warrants with respect to such shares held by the Company’s or
the Subsidiaries’ officers, directors or employees or former officers, directors or
employees (or their estates or beneficiaries under their estates) upon the death,
disability, retirement or termination of employment of such current or former
officers, directors or employees pursuant to the terms of an employee benefit plan
or any other agreement pursuant to which such shares of Capital Stock or options or
warrants were issued or pursuant to a severance, buy-sell or right of first refusal
agreement with such current or former officer, director or employee;

     (v) the retirement of any Disqualified Capital Stock by conversion into, or by
exchange for, shares of Disqualified Capital Stock, or out of the Net Cash Proceeds
of the substantially concurrent sale (other than to a Subsidiary of the Company) of
other Disqualified Capital Stock;

     (vi) Restricted Payments contemplated under the Tax Restructuring;

     (vii) Restricted Payments provided for in the Reorganization Plan to be made on
or as of the Effective Date;

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     (viii) the use of the amount of Adjusted Positive EBITDA Variance for any
fiscal year of the Company not required to be applied pursuant to Section 3.8 hereof
or pursuant to Section 2.5(e) of the Senior Loan Agreement or pursuant to Section
2.16(e) of the Exit Facility Agreement, in each case in effect on the date hereof,
or not applied to consummate Permitted Open Market Purchases, for purposes other
than the general corporate purposes of the Group Members, provided that in
any fiscal year of the Company where the Notes are redeemed from Adjusted Excess
Cash Flow pursuant to Section 3.8, any Group Member may use such amount of Adjusted
Positive EBITDA Variance to make, in such year or any other year thereafter,
(i) Restricted Payments not otherwise permitted under clauses (i) through (vii) or
clauses (ix) and (x) of this Section 4.14;

     (ix) a Restricted Payment by any Subsidiary to Persons directly owning Minority
Interests, if such Subsidiary shall first have made, or shall substantially
simultaneously make, a Restricted Payment to the Group Member which has an ownership
interest in such Subsidiary in an amount not less than such Group Member’s
proportionate share (based upon such Group Member’s percentage ownership interest in
such Subsidiary) of the total Restricted Payment to be made by such Subsidiary;

     (x) to the extent any such payments are made in a manner that would cause them
to be Restricted Payments, the Company may make payments to members of management
pursuant to compensation arrangements typical of companies of similar size and
scope;

     (xi) any Group Member may make Restricted Payments in connection with the
Company Voluntary Arrangements, the retention of the Intercompany Loan Notes
(without limiting payments relating to Intercompany Loan Notes in connection with
the Tax Restructuring), and the U.K. Dissolution; or

     (xii) other than Restricted Payments set forth in clause (iv) of the definition
of Restricted Payments, Restricted Payments in an amount not to exceed $25,000,000;
provided that the amount of such Restricted Payments will be included in the
calculation of the amount of Restricted Payments;

provided, however, that in the case of the immediately preceding clauses (ii),
(iii), (viii) and (xii), no Default or Event of Default shall have occurred and be continuing at
the time of such Restricted Payment or would occur as a result thereof.

     In determining the aggregate amount of Restricted Payments made subsequent to the Effective
Date for purposes of clause (c) above, amounts expended pursuant to clauses (i) and (ii) of the
immediately preceding paragraph shall be included, but without duplication, in such calculation.

     For purposes of calculating the Net Cash Proceeds received by the Company from the issuance or
sale of its Capital Stock either upon the conversion of, or in exchange for, Indebtedness of the
Company or any Subsidiary, such amount will be deemed to be an amount

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equal to the difference of
(a) the sum of (i) the principal amount or accreted value (whichever is less) of such Indebtedness
on the date of such conversion or exchange and (ii) the additional cash consideration, if any,
received by the Company upon such conversion or exchange, plus any payment on account of fractional
shares, minus (b) all commissions, fees, costs and other expenses incurred in connection with such
issuance or sale. In addition, for purposes of calculating the Net Cash Proceeds received by the
Company from the issuance or sale of its Capital Stock upon the exercise of any options or warrants
of the Company, such amount shall be deemed to be an amount equal to the difference of (a) the
additional cash consideration, if any, received by the Company upon such exercise, minus (b) all
fees, commissions, discounts and expenses incurred by the Company in connection with such issuance
or sale.

          SECTION 4.15.   Limitations on Investments. The Company will not, and will not permit any of its Subsidiaries to,
make any Investment
other than (i) a Permitted Investment or (ii) an Investment that is made as a Restricted Payment in
compliance with Section 4.14 hereof.

          SECTION 4.16.   Limitation on Transactions with Affiliates. The Company will not, and will not permit any of its
Subsidiaries to, directly or
indirectly, enter into or suffer to exist any transaction or series of related transactions
(including, without limitation, the sale, purchase, exchange or lease of assets, property or
services) with any Affiliate of the Company (each such transaction, an “Affiliate Transaction”) or
extend, renew, waive or otherwise modify the terms of any Affiliate Transaction entered into prior
to the Effective Date unless (i) such Affiliate Transaction is solely between or among the Company
and its Wholly-Owned Subsidiaries that are Guarantors; (ii) such Affiliate Transaction is solely
between or among Wholly-Owned Subsidiaries of the Company that are Guarantors; (iii) such Affiliate
Transaction is for reasonable fees and compensation paid to, and indemnity provided on behalf of,
officers, directors, employees or consultants of the Company or any Subsidiary thereof as
reasonably determined in good faith by the Board of Directors (when required as described below) or
senior management of the Company or of such Subsidiary having no interest in such Affiliate
Transaction; or (iv) the terms of such Affiliate Transaction are fair and reasonable to the Company
or such Subsidiary, as the case may be, and the terms of such Affiliate Transaction are at least as
favorable as the terms which could be obtained by the Company or such Subsidiary, as the case may
be, in a comparable transaction made on an arm’s-length basis between unaffiliated parties, as
determined in good faith by the Company or the relevant Subsidiary. For the avoidance of doubt,
contemporaneous purchases and/or sales by a Group Member and an Affiliate of assets, Capital Stock,
bonds, notes, debentures or other debt securities, and bank loans, participations or similar
obligations at substantially the same price shall not be deemed transactions with an Affiliate
under this Indenture.

     The foregoing provisions will not apply to (i) the payment of reasonable annual compensation
to, or indemnity provided on behalf of, directors or executive officers of the Company, (ii) the
continued performance of transactions with Affiliates disclosed in the
Reorganization Plan, on the same terms as disclosed in the Reorganization Plan, (iii)
transactions effected as part of a Qualified Securitization Transaction, (iv) the Tax
Restructuring, (v) the retention of the Intercompany Loan Notes (without limiting any transactions
in connection with the Tax Restructuring) or (vi) transactions consummated pursuant to the U.K.
Dissolution or the Company Voluntary Arrangements.

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          SECTION 4.17.   Sales and Leasebacks. The Company will not, and will not permit any of its Subsidiaries to, enter
into any Sale
and Leaseback Transaction unless, if the Sale and Leaseback Transaction is treated as an Asset Sale
(and not excluded as such from the definition thereof), all of the conditions of this Indenture
described in Section 4.12 above (including the provisions concerning the application of the
Collateral Proceeds Amount) are satisfied with respect to such Sale and Leaseback Transaction,
treating all of the consideration received in such Sale and Leaseback Transaction as included in
the Collateral Proceeds Amount for purposes of such covenant.

          SECTION 4.18.   Lines of Business. The Company will not, and will not permit any of its Subsidiaries to, enter
into any
business, either directly or through any Subsidiary, except for those businesses in which the Group
Members are engaged on the date of this Indenture or that are determined by the Board of Directors
of the Company to be reasonably related thereto.

          SECTION 4.19.   Limitation on Status as Investment Company. Neither the Company nor any of its Subsidiaries shall
take any action or suffer to exist
any condition that would require the Company or any of its Subsidiaries to register as an
“investment company” (as that term is defined in the Investment Company Act of 1940, as amended),
or otherwise become subject to regulation as an investment company.

          SECTION 4.20.   [Reserved].

          SECTION 4.21.   Further Assurances to the Trustee. The Company shall (and shall cause each of its Subsidiaries
to) execute, acknowledge,
deliver, record, re-record, file, re-file, register and re-register, any and all such further acts,
deeds, conveyances, security agreements, mortgages, assignments, estoppel certificates, financing
statements and continuations thereof, termination statements, notices of assignment, transfers,
certificates, assurances and other instruments as may be required from time to time in order (i) to
carry out more effectively the purposes of the Security Documents, (ii) to subject to the Liens
created by any of the Security Documents any of the properties, rights or interest required to be
encumbered thereby, (iii) to perfect and maintain the validity, effectiveness and priority of any
of the Security Documents and the Liens intended to be created thereby, and (iv) to better assure,
convey, grant, assign, transfer, preserve, protect and confirm to the Trustee any of the rights
granted or now or hereafter intended by the parties thereto to be granted to the Trustee or under
any other instrument executed in connection therewith or granted to the
Company under the Security Documents or under any other instrument executed in connection
therewith.

          SECTION 4.22.   Future Subsidiary Guarantors. The Company shall cause each Subsidiary, other than an Excluded
Subsidiary or a
Securitization Entity, created or acquired, directly or indirectly, by the Company after the
Effective Date to execute a supplemental indenture in the form of Exhibit B (or, in the case of a
Foreign Subsidiary, to execute a Foreign Subsidiary Guarantee in a form substantially similar to
Exhibit M and reasonably satisfactory in form and substance to the Trustee (and with documentation
relating thereto as the Trustee shall require, including, without limitation, an Opinion of Counsel
as to the enforceability of such Guarantee); provided that, subject to Section 4.26, such
Subsidiary shall not be required to execute such a supplemental indenture (or, in the case of a
Foreign

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Subsidiary, such a Foreign Subsidiary Guarantee) if such Subsidiary is an Unrestricted
Subsidiary, is prohibited by law from making such a Guarantee, such Subsidiary would have been
released from its Guarantee by virtue of events set forth in Section 11.4 hereof (including for
such purposes Foreign Subsidiaries and assuming that Section 11.4 hereof applies to such Foreign
Subsidiary mutatis mutandis), or such Subsidiary is a Subsidiary of a Person which has been
released as a Guarantor pursuant to Section 11.4 hereof (including for such purposes Foreign
Subsidiaries and assuming that Section 11.4 hereof applies to such Foreign Subsidiary mutatis
mutandis).

          SECTION 4.23.   Designation of Subsidiaries and Unrestricted Subsidiaries. (a) The Company may by written
notice to the Trustee designate any Subsidiary (including a
newly acquired or newly formed Subsidiary) to be an Unrestricted Subsidiary; provided,
however, that (i) no Default or Event of Default shall have occurred and be continuing or
would arise therefrom, (ii) such designation is at that time permitted under Section 4.14 hereof
and (iii) immediately after giving effect to such designation, the Company could incur $1.00 of
additional Indebtedness pursuant to the first paragraph of Section 4.10. In the event the Company
designates a Subsidiary to be an Unrestricted Subsidiary, the following provisions shall apply:

     (i) an “Investment” shall be deemed to have been made at the time any
Subsidiary is designated as an Unrestricted Subsidiary in an amount (proportionate
to the Company’s percentage Capital Stock in such Subsidiary) equal to the net worth
of such Subsidiary at the time that such Subsidiary is designated as an Unrestricted
Subsidiary;

     (ii) at any date the aggregate of all Restricted Payments made as Investments
since the Effective Date shall exclude and be reduced by an amount (proportionate to
the Company’s percentage Capital Stock in such Subsidiary) equal to the net worth of
any Unrestricted Subsidiary at the time that such Unrestricted Subsidiary is
designated a Subsidiary, not to exceed, in the case of any such redesignation of an
Unrestricted Subsidiary as a Subsidiary, the amount of Investments previously made
by the Company and its Subsidiaries in such Unrestricted Subsidiary; and

     (iii) any property transferred to or from an Unrestricted Subsidiary shall be
valued at its fair market value at the time of such transfer.

For purposes of clauses (i) and (ii) above, “net worth” shall be calculated based upon the fair
market value of the assets of such Subsidiary as of any such date of designation.

          (b) Notwithstanding clause (a) above, the Board of Directors of the Company may not designate
any Subsidiary of the Company to be an Unrestricted Subsidiary after the Effective Date if, after
such designation:

     (i) the Company or any Subsidiary provides credit support for, or a guarantee
of, any Indebtedness or other obligation (contingent or otherwise) of such
Subsidiary (including any understanding, agreement or instrument evidencing such
Indebtedness or obligation) or is otherwise subject to recourse or

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obligated
thereunder or therefor, unless such credit support or guarantee is permitted by the
terms of this Indenture;

     (ii) a default with respect to any Indebtedness of such Subsidiary (including
any right which the holders thereof may have to take enforcement action against such
Subsidiary) would permit (upon notice, lapse of time or both) any holder of any
other Indebtedness of the Company or any Subsidiary of the Company to declare a
default on such other Indebtedness or cause the payment thereof to be accelerated or
payable prior to its final scheduled maturity;

     (iii) such Subsidiary owns any Capital Stock in, or owns or holds any Lien on
any property of, any Subsidiary which is not a Subsidiary of the Subsidiary to be so
designated;

     (iv) such Subsidiary has any contract, arrangement, agreement or understanding
with the Company, or any Subsidiary of the Company, whether written or oral, other
than a transaction having terms no less favorable to the Company or such Subsidiary
of the Company than those which might be obtained at the time from persons who are
not Affiliates of the Company; or

     (v) the Company or any Subsidiary of the Company has any obligation to
subscribe for any Capital Stock in such Subsidiary or to maintain or preserve such
Subsidiary’s financial condition or to cause such Subsidiary to achieve specified
levels of operating results, unless such obligation is permitted by the terms of
this Indenture

          SECTION 4.24.   Restriction on Sale and Issuance of Certain Subsidiary Capital Stock. Except as provided in
Section 4.12, the Company and its Subsidiaries will not issue or sell
any Capital Stock of any Subsidiary to any Person other than the Company or a Wholly-Owned
Subsidiary of the Company (except for common Capital Stock with no preferences or special rights or
privileges and with no redemption or prepayment provisions, provided that such
common Capital Stock are sold in compliance with Section 4.12 or to qualify directors to the
extent required by applicable law).

          SECTION 4.25.   Note Documents. Except as otherwise permitted pursuant to the terms of this Indenture and the
other Note
Documents, none of the Company or any of its Subsidiaries will amend, waive or modify any provision
of the Note Documents, except that (i) the Collateral may be released or modified in an Asset Sale
or other disposition or transfer permitted by this Indenture (without giving effect to any
requirements regarding use of proceeds); (ii) any Guarantee may be released as expressly provided
in this Indenture (or, in the case of a Foreign Subsidiary Guarantor, as expressly provided in the
applicable Foreign Subsidiary Guarantee) at the time of such sale or other disposition; (iii) the
Security Documents may be amended or otherwise modified in any manner that does not violate the
terms thereof, including Section 7.01 of the Collateral Agreement and (iv) this Indenture and any
of the other Note Documents may be otherwise amended, waived or modified as set forth under Article
10 hereof.

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          SECTION 4.26.   Subsidiary Guarantees. Prior to or upon guaranteeing any other Indebtedness of the Company
(including, without
limitation, any Indebtedness under the Senior Loan Facility, the Exit Facility or the Additional
Liquidity Facility), the Company shall cause a Subsidiary of the Company that is not a Guarantor
(if such Subsidiary is also a borrower or guarantor of the Senior Loan Facility, the Exit Facility
or the Additional Liquidity Facility or is required to become such a borrower or a guarantor, as
applicable) to execute and deliver to the Trustee a supplemental indenture in the form of Exhibit B
hereto (or, in the case of a Foreign Subsidiary, to execute and deliver a Foreign Subsidiary
Guarantee in a form substantially similar to Exhibit M) pursuant to which such Subsidiary shall
guarantee, as applicable, all of the Obligations of the Company with respect to the Notes together
with an Opinion of Counsel (which counsel may be an employee of the Company) to the effect that the
supplemental indenture (or, in the case of a Foreign Subsidiary, the Foreign Subsidiary Guarantee)
has been duly executed and delivered by such Subsidiary and is in compliance in all material
respects with the terms of this Indenture.

          SECTION 4.27.   Change of Control. (a) Upon the occurrence of a Change of Control, the Company shall make an
offer to
purchase all outstanding Notes pursuant to the offer described in paragraph (b) below (the “Change
of Control Offer”) at a purchase price equal to 101% of the principal amount thereof plus accrued
interest, if any, to the date of purchase.

     (b) Within 45 days following the date upon which the Change of Control occurred (the “Change
of Control Date”), the Company shall send, by first class mail, a notice to each Holder, with a
copy to the Trustee, which notice shall govern the terms of the Change of Control Offer. The notice
to the Holders shall contain all instructions and materials necessary to enable such Holders to
tender Notes pursuant to the Change of Control Offer. Such notice shall state:

     (1) that the Change of Control Offer is being made pursuant to this Section 4.27 and
that all Notes tendered and not withdrawn will be accepted for payment;

     (2) the purchase price (including the amount of accrued interest) and the purchase date
(which shall be no earlier than 30 days nor later than 60 days from the date such notice is
mailed, other than as may be required by law) (the “Change of Control Payment Date”);
provided that the Change of Control Payment Date for the Notes shall be a date
subsequent to any payment dates for the purchase or other repayment of Designated Senior
Debt having similar provisions;

     (3) that any Note not tendered will continue to accrue interest;

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

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

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

     (7) that Holders whose Notes are purchased only in part will be issued new Notes in a
principal amount equal to the unpurchased portion of the Notes surrendered; provided
that each Note purchased shall be in a minimum principal amount of $1,000; and

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

          On or before the Change of Control Payment Date, the Company shall (i) accept for payment
Notes or portions thereof tendered pursuant to the Change of Control Offer, (ii) deposit with the
Paying Agent U.S. Legal Tender sufficient to pay the purchase price plus accrued interest, if any,
of all Notes so tendered and (iii) deliver to the Trustee Notes so accepted together with an
Officers’ Certificate stating the Notes or portions thereof being purchased by the Company. The
Paying Agent shall promptly mail to the Holders of Notes so accepted payment in an amount equal to
the purchase price plus accrued interest (in cash), if any, and the Trustee shall promptly
authenticate and mail to such Holders new Notes equal in principal amount to any unpurchased
portion of the Notes surrendered. Any Notes not so accepted shall be promptly mailed by the
Company to the Holder thereof. For purposes of this Section 4.27, the Trustee shall act as the
Paying Agent.

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

          The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent such laws and regulations are
applicable in connection with the repurchase of Notes pursuant to a Change of Control Offer. To the
extent the provisions of any securities laws or regulations conflict with the provisions under this
Section 4.27, the Company shall comply with the applicable securities laws and regulations and
shall not be deemed to have breached its obligations under this Section 4.27 by virtue thereof.

          SECTION 4.28.   Future Pledges of Collateral to Secure PIK Interest. The Security Documents shall provide that
the Holders of Notes shall, automatically and
without further action, become the beneficiaries of the pledges of property and assets to the
Collateral Trustee pursuant to the Security Documents to the extent of any PIK Notes issued as
payment of PIK Interest on the Notes and any increase in the principal amount of Notes as a result
of a PIK Payment and, in each case, related Guarantees thereof.

          SECTION 4.29.   Limitation on Layering. The Company will not incur, create, issue, assume, guarantee or otherwise
become liable for
any Indebtedness that is subordinate or junior in right of payment to any Designated Senior Debt of
the Company and senior in right of payment to the Notes. No Guarantor will incur, create, issue,
assume, guarantee or otherwise

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become liable for any Indebtedness that is subordinate or junior in
right of payment to any Guarantor Senior Debt of such Guarantor and senior in right of payment to
such Guarantor’s Guarantee. For purposes of the foregoing, no Indebtedness will be deemed to be
subordinated or junior in right of payment to any other Indebtedness solely by virtue of being
unsecured or by virtue of the fact that the holders of secured Indebtedness have entered into
intercreditor or similar arrangements giving one or more of such holders priority over the other
holders in the collateral held by them.

ARTICLE 5

SUCCESSOR CORPORATION

          SECTION 5.1.   Merger, Consolidation or Sale of Assets. (a)  The Company will not consolidate with,
merge with or into, or sell, assign, lease,
convey, transfer or otherwise dispose of (a “transfer”) all or substantially all of its assets (as
an entirety or substantially as an entirety in one transaction or a series of related
transactions), to any Person unless: (i) the Company shall be the continuing Person, or the Person
(if other than the Company) formed by such consolidation or into which the Company is merged or to
which the properties and assets of the Company are transferred shall be a corporation organized and
existing under the laws of the United States or any State thereof or the District of Columbia and
shall expressly assume, by a supplemental indenture, executed and delivered to the Trustee, in form
satisfactory to the Trustee, all of the obligations of the Company under the Notes, this Indenture
and the Security Documents, and the obligations under this Indenture shall remain in full force and
effect and shall cause such amendments, supplements or other instruments to be executed, filed, and
recorded in such jurisdictions as may be required by applicable law to
preserve and protect the Lien on the Collateral owned by or transferred to the successor
Company, together with such financing statements or comparable documents as may be required to
perfect any security interests in such Collateral which may be perfected by the filing of a
financing statement or a similar document under the UCC or other similar statute or regulation of
the relevant states or jurisdictions; (ii) immediately before and immediately after giving effect
to such transaction, no Default or Event of Default shall have occurred and be continuing; (iii)
immediately after giving effect to such transaction on a pro forma basis the Company or such Person
could incur at least $1.00 additional Indebtedness pursuant to the first paragraph of Section 4.10
hereof (unless such merger, sale, assignment, lease, conveyance, transfer or disposition could have
been made under the Senior Loan Agreement as in effect on the date hereof); (iv) each Guarantor
(unless it is the other party to the transactions above, in which case clause (i) shall apply)
shall have by supplemental indenture (or, in the case of a Foreign Subsidiary Guarantor, by such
other document satisfactory to the Trustee) confirmed that its Guarantee shall apply to such
Person’s obligations in respect of this Indenture and the Notes and its obligations under the
Security Documents shall remain in full force and effect and shall cause such amendments,
supplements or other instruments to be executed, filed, and recorded in such jurisdictions as may
be required by applicable law to preserve and protect the Lien on the Collateral owned by such
Guarantor, together with such financing statements or comparable documents as may be required to
perfect any security interests in such Collateral which may be perfected by the filing of a
financing statement or a similar document under the UCC or other similar statute or regulation of
the relevant states or jurisdictions; and (v) immediately thereafter, the Company or the other
surviving entity, as the case may be, shall have a Consolidated Net Worth equal to or greater

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than
the Consolidated Net Worth of the Company immediately prior to such transaction (unless such
merger, sale, assignment, lease, conveyance, transfer or disposition could have been made under the
Senior Loan Agreement as in effect on the date hereof).

          (b) In connection with any consolidation, merger or transfer of assets contemplated by this
Section 5.1, the Company shall deliver or cause to be delivered, to the Trustee, in form and
substance reasonably satisfactory to the Trustee, an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, merger or transfer and the supplemental indenture in
respect thereto comply with this Section 5.1 and that all conditions precedent herein provided for
relating to such transaction or transactions have been complied with.

          (c) In addition, the Company will not permit any Guarantor to consolidate with or merge with
or into any Person (other than another Guarantor) and will not permit the conveyance, transfer or
lease of substantially all of the assets of any Guarantor unless (i) the resulting, surviving or
transferee Person will be a corporation, partnership, trust or limited liability company organized
and existing under the laws of the United States of America, any State thereof or the District of
Columbia (or, in the case of Foreign Subsidiary Guarantor, under the laws of the jurisdiction of
such Foreign Subsidiary Guarantor) and such Person (if not such Guarantor) will expressly assume,
by supplemental indenture (or, in the case of a foreign entity, by Foreign Subsidiary Guarantee),
executed and delivered to the Trustee, all the obligations of such Guarantor under its Guarantee;
(ii) immediately before and immediately after giving effect to such transaction, no Default or
Event of Default shall have occurred and be continuing; and (iii) the Company shall have delivered
or caused to be delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that such consolidation, merger or
transfer and such supplemental indenture (if any) comply with this Section 5.1.

     This Section 5.1 shall not apply to the sale of the stock or assets of the Company or any
Subsidiary of the Company in accordance with Section 4.12 hereof.

          SECTION 5.2.   Successor Person Substituted. Upon any consolidation or merger, or any transfer of all or
substantially all of the assets
of the Company or any Subsidiary in accordance with Section 5.1 above, the successor corporation
formed by such consolidation or into which the Company or any Subsidiary is merged or to which such
transfer is made shall succeed to, and be substituted for, and may exercise every right and power
of, the Company or such Subsidiary under this Indenture with the same effect as if such successor
corporation had been named as the Company or such Subsidiary herein, and thereafter the predecessor
corporation shall be relieved of all obligations and covenants under this Indenture and the Notes,
except, in the case of a transfer, for the obligation to pay the principal of, premium, if any, and
interest on, the Notes.

ARTICLE 6

DEFAULTS AND REMEDIES

          SECTION 6.1.   Events of Default. An “Event of Default” occurs if:

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	 	(1)	 	there is a default in the payment of any principal of, or
premium, if any, on the Notes when the same becomes due and payable on the
Maturity Date, upon optional redemption, upon required repurchase, upon
declaration or otherwise;
	 
	 	(2)	 	there is a default for 30 consecutive days in the payment of
any interest (whether in the form of PIK Notes or an increase in the principal
amount of Notes as a result of a PIK Payment or otherwise) on the Notes after
such interest becomes due and payable;
	 
	 	(3)	 	the Company or any Guarantor fails to comply with any of the
terms or provisions of Section 5.1 hereof for a period of 30 consecutive days;
	 
	 	(4)	 	the Company or any Guarantor defaults in the observance or
performance of any other provision, covenant or agreement contained in the
Notes, this Indenture or the Security Documents for 60 consecutive days after
written notice by registered or certified mail to the Company from the Trustee
or the Holders of not less than 25% in aggregate principal amount of the Notes
then outstanding;
	 
	 	(5)	 	there is a failure to pay when due (and beyond the grace
period, if any, therefor) principal, interest or premium in an aggregate amount
of (A) $20,000,000 or more with respect to any Indebtedness (other than Capital
Lease Obligations or Purchase Money Indebtedness) of the Company or any
Guarantor or (B) $125,000,000 or more with respect to any Indebtedness of
any Subsidiary of the Company that is not a Guarantor or Capital Leases or
Purchase Money Indebtedness of any Group Member, or the acceleration prior
to its express maturity of any such Indebtedness aggregating (A) $20,000,000
or more with respect to any Indebtedness (other than Capital Lease
Obligations or Purchase Money Indebtedness) of the Company or any Guarantor
or (B) $125,000,000 or more with respect to any Indebtedness of any
Subsidiary of the Company that is not a Guarantor or Capital Leases or
Purchase Money Indebtedness of any Group Member;
	 
	 	(6)	 	a court of competent jurisdiction renders a final judgment or
judgments which can no longer be appealed for the payment of money, in any
individual case or in the aggregate at any time, in excess of $25,000,000
(which are not paid or covered by third party insurance by financially sound
insurers) against the Company or any Subsidiary thereof and such judgment
remains undischarged for a period of 60 consecutive days during which a stay of
enforcement of such judgment shall not be in effect;
	 
	 	(7)	 	The Company or (A) any Subsidiaries of the Company that are not
Guarantors, together with Subsidiaries which have been liquidated pursuant to
clause (viii) of the definition of “Asset Sale,” having assets with an
aggregate book value of at least 10% of the book value or (B) any

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	 	 	 	Guarantors
having assets with an aggregate book value of at least 1%, in each case, of the
consolidated assets of the Group Members, taken as a whole, pursuant to or
within the meaning of any Bankruptcy Law:

     (A) commences a voluntary case or proceeding,

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

     (C) consents to the appointment of a Custodian of it or for all or
substantially all of its property,

     (D) makes a general assignment for the benefit of its creditors or
shall admit in writing its inability to pay its debt, or

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

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

     (A) is for relief against the Company or any Subsidiary in an
involuntary case or proceeding,

     (B) appoints a Custodian of the Company or any Subsidiary or for all or
substantially all of the property of the Company or any Subsidiary, or

     (C) orders the liquidation of the Company or any Subsidiary,

     (D) and, in each case, the order or decree remains unstayed and in
effect for 60 consecutive days;

	 	(9)	 	at any time after the execution and delivery thereof, (i) any
Guarantee for any reason, other than the satisfaction in full of all
Obligations guaranteed thereunder or the release of such Guarantee pursuant to
Section 11.4 (or, in the case of a Foreign Subsidiary Guarantor, the applicable
Foreign Subsidiary Guarantee for any reason, other than the satisfaction in
full of all Obligations guaranteed thereunder or the release of such Guarantee
pursuant to such Foreign Subsidiary Guarantee), shall cease to be in full force
and effect (other than in accordance with its terms) or shall be declared to be
null and void, or (ii) a material Security Document shall cease to be in full
force and effect (other than by reason of a release of Collateral thereunder in
accordance with the terms hereof or thereof pursuant to a transaction permitted
hereunder (without giving effect to any requirements regarding use of
proceeds), the satisfaction in full of the Obligations or any other termination
of such Security Document in accordance with the terms hereof or thereof) or
except to the extent otherwise waived pursuant to this Indenture and the
Security Documents,

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	 	 	 	shall be declared null and void, or the Trustee or the
Collateral Agent shall not have or shall cease to have a valid and perfected
Lien on any Collateral granted on the Effective Date or thereafter granted
pursuant to the terms of this Indenture covered thereby having a fair market
value, individually or in the aggregate, exceeding $20,000,000 that is (x)
property in which a security interest can be granted and perfected under the
UCC, (y) Intellectual Property registered with the United States Patent and
Trademark Office or the United States Copyright Office, or (z) real estate
subject to a Mortgage, provided that if a failure of the sort described
in this clause (9) is susceptible of cure, no Event of Default shall arise
under this clause (9) with respect thereto until 30 consecutive days after
written notice of such failure shall have been given to the Company by the
Trustee or the Holders of at least 25% in principal amount of the then
outstanding Notes;
	 
	 	(10)	 	holders of Exit Facility Indebtedness, Senior Loan Facility
Indebtedness or Additional Liquidity Facility Indebtedness holding a Lien on
the stock or assets of the Company or any of its Subsidiaries take any judicial
action to enforce such Lien;
	 
	 	(11)	 	except as otherwise provided in the Security Documents, any
amendments thereto and the provisions of this Indenture, any of the Security
Documents ceases to be in full force and effect or ceases to be effective,
in all material respects, to create the Lien purported to be created in the
Collateral having a fair market value, individually or in the aggregate,
exceeding $20,000,000 in (x) property in which a security interest can be
granted and perfected under the UCC, (y) Intellectual Property registered
with the United States Patent and Trademark Office or the United States
Copyright Office, or (z) real estate subject to a Mortgage, in favor of the
Holders of any Notes for 60 consecutive days after the Trustee receives
written notice.

     Subject to the provisions of Sections 7.1 and 7.2, the Trustee shall not be charged with
knowledge of any Default or Event of Default unless written notice thereof shall have been given to
a Responsible Officer at the Corporate Trust Office by the Company or any other Person.

          SECTION 6.2.   Acceleration. If an Event of Default (other than an Event of Default arising under
Section 6.1(7) or (8))
occurs and is continuing, the Trustee by written notice to the Company by registered or certified
mail or the Holders of not less than 25% in aggregate principal amount of the Notes then
outstanding by written notice to the Company by registered or certified mail and the Trustee, may
declare to be immediately due and payable the entire principal amount of all the Notes then
outstanding plus premium, if any, and accrued but unpaid interest to the date of acceleration;
provided, however, that after such acceleration but before a judgment or decree
based on such acceleration is obtained by the Trustee, the Holders of not less than a majority in
aggregate principal amount of the outstanding Notes may rescind and annul such acceleration if all
existing Events of Default, other than nonpayment of accelerated principal, premium, if any, or
interest, have been cured or waived as provided in this Indenture

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and if the rescission would not
conflict with any judgment or decree. No such rescission shall affect any subsequent Default or
impair any right consequent thereto.

     In case an Event of Default specified in Section 6.1(7) or (8) occurs, the principal, premium,
if any, and interest amount with respect to all of the Notes shall ipso facto become and be
immediately due and payable without any declaration or other act on the part of the Trustee or the
Holders of the Notes.

          SECTION 6.3.   Other Remedies. If an Event of Default occurs and is continuing, the Trustee may pursue any
available
remedy by proceeding at law or in equity to collect the payment of principal of, or premium, if
any, and interest on the Notes or to enforce the performance of any provision of the Notes or this
Indenture and may take any necessary action requested of it as Trustee to settle, compromise,
adjust or otherwise conclude any proceedings to which it is a party.

     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 to the extent
permitted by law.

          SECTION 6.4.   Waiver of Defaults and Events of Default. Subject to Sections 6.2, 6.7 and 8.2 hereof, the
Holders of a majority in principal amount
of the Notes then outstanding have the right to waive any existing or future Default or Event of
Default or compliance with any provision of this Indenture or the Notes. Upon any such waiver, such
Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have
been cured for every purpose of this Indenture; but no such waiver shall extend to any subsequent
or other Default or Event of Default or impair any right consequent thereto except as specifically
set forth therein.

          SECTION 6.5.   Control by Majority. The Holders of a majority in principal amount of the Notes then outstanding
may direct the
time, method and place of conducting any proceeding for any remedy available to the Trustee or
exercising any trust or power conferred on the Trustee by this Indenture. The Trustee, however, may
refuse to follow any direction that conflicts with law, this Indenture or the Security Documents or
that the Trustee determines may be unduly prejudicial to the rights of another Noteholder not
taking part in such direction, and the Trustee shall have the right to decline to follow any such
direction if the Trustee, being advised by counsel, determines that the action so directed may not
lawfully be taken or if the Trustee in good faith shall determine that the proceedings so directed
may involve it in personal liability unless the Trustee has asked for and received indemnification
reasonably satisfactory to it against any loss, liability or expense caused by its following such
direction; provided that the Trustee may take any other action deemed proper by the Trustee
which is not inconsistent with such direction.

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          SECTION 6.6.   Limitation on Suits. Subject to Section 6.7 below, a Noteholder may not institute any
proceeding or pursue any
remedy with respect to this Indenture or the Notes unless:

     (1) the Holder has previously given to the Trustee written notice of a continuing Event
of Default;

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

     (3) such Holder or Holders have offered, and if requested, provide to the Trustee
indemnity reasonably satisfactory to the Trustee 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 and, if requested, the provision of indemnity; and

     (5) no direction inconsistent with such written request has been given to the Trustee
during such 60 day period by the Holders of a majority in aggregate principal amount of the
Notes then outstanding.

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

          SECTION 6.8.   Collection Suit by Trustee. If an Event of Default in payment of principal, premium or interest
specified in Section
6.1(1) or (2) hereof occurs and is continuing, the Trustee may recover judgment in its own name and
as trustee of an express trust against the Company or the Guarantors (or any other obligor on the
Notes) for the whole amount of unpaid principal and accrued interest remaining unpaid, together
with interest on overdue principal and, to the extent that payment of such interest is lawful,
interest on overdue installments of interest, in each case at the rate then borne by the Notes
(after giving effect to Section 4.1), and such further amounts as shall be sufficient to cover the
costs and expenses of collection, including the compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel, including all sums due and owing to the Trustee pursuant to
the Indenture including Section 7.7.

          SECTION 6.9.   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 (including any claim for the compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel) and the Noteholders
allowed in any judicial proceedings relative to the Company or the Guarantors (or any other obligor
upon the Notes), their respective creditors or property and shall be entitled and empowered to
collect and receive

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any monies or other property payable or deliverable on any such claims and to
distribute the same after deduction of its reasonable charges and expenses to the extent that any
such charges and expenses are not paid out of the estate in any such proceedings and any custodian
in any such judicial proceeding is hereby authorized by each Noteholder to make such payments to
the Trustee, and in the event that the Trustee shall consent to the making of such payments
directly to the Noteholders, to pay to the Trustee any amount due to it for the compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts
due the Trustee under the Indenture, including Section 7.7. Nothing herein contained shall be
deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any
Noteholder any plan or reorganization, arrangement, adjustment or composition affecting the Notes
or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of
any Noteholder in any such proceedings.

          SECTION 6.10.   Priorities. If the Trustee collects any money pursuant to this Article 6, it shall pay out
the money in
the following order:

     FIRST: to the Trustee, its agents and counsel for amounts due under this Indenture,
including, Section 7.7 hereof;

     SECOND: to Noteholders for amounts due and unpaid on the Notes for principal, premium, if
any, and interest as to each, ratably, without preference or priority of any kind, according to the
aggregate amounts due and payable on the Notes; and

     THIRD: to the Company or, to the extent the Trustee receives any amount directly from any
Guarantor, to such Guarantor.

     The Trustee may fix a record date and payment date for any payment to Noteholders pursuant to
this Section 6.10. The Trustee shall give the Company prior written notice of any such record date
and payment date; provided, however, that the failure to give any such notice shall
not affect the establishment of such record date or payment date or any payment to Noteholders
pursuant to this Section 6.10.

          SECTION 6.11.   Undertaking for Costs. In any suit for the enforcement of any right or remedy under this
Indenture or in any suit
against the Trustee for any action taken or omitted by it as 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 and expenses, against any party litigant in the suit, having due regard to the merits and good
faith of the claims or defenses made by the party litigant. This Section 6.11 does not apply to a
suit instituted by the Trustee, a suit instituted by a Holder pursuant to Section 6.7 hereof or a
suit instituted by Holders of more than 10% in principal amount of the Notes then outstanding.

          SECTION 6.12.   Restoration of Rights and Remedies. If the Trustee or any Holder has instituted any proceeding to
enforce any right or remedy
under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has
been determined adversely to the Trustee or to such Holder, then and in every case, subject to any
determination in such proceeding, the Company, the Trustee and the Holders shall be restored
severally and

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respectively to their former positions hereunder and thereafter all rights and
remedies of the Trustee and the Holders shall continue as though no such proceeding had been
instituted.

          SECTION 6.13.   Delay or Omission Not Waiver. No delay or omission of the Trustee or of any Holder to exercise
any right or remedy
accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of
any such Event of Default or an acquiescence therein. Every right and remedy given by this
Article 6 or by law to the Trustee or to the Holders may be exercised from time to time, and
as often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

ARTICLE 7

TRUSTEE

          SECTION 7.1.   Duties of Trustee. (a)  If an Event of Default has occurred and is continuing, the
Trustee shall exercise such
of the rights and powers vested in it by this Indenture and any supplemental indenture (including
providing for Guarantees of the Notes and any supplemental indenture (or, in the case of a Foreign
Subsidiary, a Foreign Subsidiary Guarantee) required pursuant to Sections 4.22 or 4.26 hereof) and
use the same degree of care and skill in their exercise as a prudent person would exercise or use
under the same circumstances in the conduct of such person’s own affairs.

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

     (1) The Trustee need perform only those duties that are specifically set forth in this
Indenture (including any supplemental indenture) and the Security Documents and those
actions that are reasonably necessary for the performance of the specified duties and no
others and no implied covenants or obligations shall be read into this Indenture or the
Security Documents against the Trustee.

     (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 but, in the case of any such certificates or opinions which by any provision
hereof are specifically required to be furnished to the Trustee, the Trustee shall be under
a duty to examine the same to determine whether or not they conform to the requirements of
this Indenture and the Security Documents (but need not confirm or investigate the accuracy
of mathematical calculations or other facts stated therein).

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

     (1) This paragraph does not limit the effect of paragraph (b) of this Section 7.1.

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     (2) In the absence of bad faith on its part, the Trustee shall not be liable for any
error of judgment made in good faith by a Responsible Officer, unless it is proved that the
Trustee was negligent in ascertaining the pertinent facts.

     (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 Sections 6.2 or
6.5 hereof.

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

          (e) Whether or not therein expressly so provided, paragraphs (a), (b), (c), (d), (f) and (g)
of this Section 7.1 shall govern every provision of this Indenture that in any way relates to the
Trustee or any Agent.

          (f) The Trustee may refuse to perform any duty or exercise any right or power unless it
receives indemnity satisfactory to it against any loss, liability, expense or fee.

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

          SECTION 7.2.   Rights of Trustee. Subject to Section 7.1 hereof:

     (1) The Trustee may conclusively rely on and shall be protected in acting or refraining
from acting upon any document (whether in original or facsimile form) reasonably 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;

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

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

     (4) The Trustee may consult with counsel of its selection, and the advice or opinion of
such counsel as to matters of law shall be full and complete authorization and protection
from liability in respect of any action taken, omitted or suffered by it hereunder in good
faith and in accordance with the advice or opinion of such counsel;

     (5) Before the Trustee acts or refrains from acting, it may require an Officers’
Certificate or an Opinion of Counsel, or both;

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

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

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

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

          SECTION 7.3.   Individual Rights of Trustee. The Trustee in its individual or any other capacity may become the
owner or pledgee of
Notes and may make loans to, accept deposits from, perform services for or otherwise deal with the
Company or any Guarantor, or any Affiliates thereof, with the same rights it would have if it were
not Trustee. Any Agent may do the same with like rights. The Trustee, however, shall be subject to
Sections 7.10 and 7.11 hereof.

          SECTION 7.4.   Trustee’s Disclaimer. The Trustee makes no representation as to the validity or adequacy of
this Indenture, the
Security Documents, the Notes or any Guarantee, it shall not be accountable for the Company’s use
of the proceeds from the issuance of Notes or any money paid to the Company pursuant to the terms
of this Indenture or the Security Documents, and it shall not be responsible for any statement in
the Notes or any document used in connection with the sale of the Notes other than its certificate
of authentication.

          SECTION 7.5.   Notice of Defaults. If a Default or Event of Default occurs and is continuing and if it is known
to the
Trustee, the Trustee shall mail to each Noteholder notice of the Default or Event of Default within
90 days after it occurs. Except in the case of a Default or Event of Default in payment of
principal or premium, if any, or interest on the Notes, or that resulted from the failure of the
Company to comply with Section 5.1, the Trustee may withhold the notice if and so long as a
committee of its Responsible Officers in good faith determines it to be in the best interests of
the holders of the Notes to do so.

          SECTION 7.6.   Reports by Trustee to Holders. If required by TIA Section 313(a), within 60 days after
May 15 of any year, commencing the
May 15 following the date of this Indenture, the Trustee shall mail to each Noteholder a brief
report dated as of such May 15 that complies with TIA Section 313(a); provided that no such
report need be transmitted if no

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such events listed in TIA Section 313(a) have occurred within such
period. The Trustee also shall comply with TIA Section 313(b)(2).
The Trustee shall also transmit by mail all reports as required by TIA Section 313(c) and TIA
Section 313(d).

          SECTION 7.7.   Compensation and Indemnity. The Company and the Guarantors (on a joint and several basis) shall
pay to the Trustee from
time to time such compensation as shall be agreed in writing between the Company and the Trustee
(or in the absence of such an agreement, reasonable compensation) for its services hereunder (which
compensation shall not be limited by any provision of law in regard to the compensation of a
trustee of an express trust). The Company and the Guarantors (on a joint and several basis) shall
reimburse the Trustee upon request for all reasonable disbursements, expenses and advances incurred
or made by it in connection with its duties under this Indenture, including the compensation,
disbursements and expenses of the Trustee’s agents and counsel.

     The Company and the Guarantors (on a joint and several basis) shall indemnify each of the
Trustee and any predecessor Trustee for, and hold them harmless against, any and all loss, damage,
claim, liability, expense (including but not limited to attorneys’ fees and expenses) or taxes
(other than taxes based on the income of the Trustee) incurred by it in connection with the
acceptance or performance of its duties under this Indenture including the costs and expenses of
defending itself against any claim or liability in connection with the exercise or performance of
any of its powers or duties hereunder, under the Note Documents and the Collateral Agency and
(including, settlement costs). The Trustee shall notify the Company and the Guarantors in writing
promptly of any claim asserted against the Trustee for which it may seek indemnity. However, the
failure by the Trustee to so notify the Company and the Guarantors shall not relieve the Company or
the Guarantors of their obligations hereunder.

     Notwithstanding the foregoing, the Company and the Guarantors need not reimburse the Trustee
for any expense or indemnify it against any loss or liability incurred by the Trustee through its
own negligence or willful misconduct. To secure the payment obligations of the Company and the
Guarantors in this Indenture (or, in the case of a Foreign Subsidiary Guarantor, the Applicable
Foreign Subsidiary Guarantee), including, Sections 7.7 and 9.5, the Trustee and any predecessor
Trustee shall have a lien prior to the Notes on all money or property held or collected by the
Trustee in its capacity as such, except such money or property held in trust to pay principal of,
premium, if any, and interest on particular Notes. The obligations of the Company and the
Guarantors under this Section 7.7 to compensate and indemnify the Trustee and each predecessor
Trustee and to pay or reimburse the Trustee and each predecessor Trustee for expenses,
disbursements and advances shall be joint and several liabilities of the Company and each of the
Guarantors and shall survive the satisfaction and discharge of this Indenture, including the
termination or rejection hereof in any bankruptcy proceeding to the extent permitted by law.

     When the Trustee incurs expenses or renders services after an Event of Default specified in
Section 6.1(7) or (8) hereof occurs, the expenses and the compensation for the services are
intended to constitute expenses of administration under any Bankruptcy Law.

          SECTION 7.8.   Replacement of Trustee. The Trustee may resign by so notifying the Company and the Guarantors in
writing, such
resignation to become effective upon the

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appointment of a successor Trustee. The Holders of a
majority in principal amount of the outstanding Notes may remove the Trustee by notifying the
removed Trustee in writing and may appoint a successor Trustee with the Company’s written consent
which consent shall not be unreasonably withheld. The Company may remove the Trustee at its
election if:

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

     (2) the Trustee is adjudged a bankrupt or an 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 or if a vacancy exists in the office of Trustee for any
reason, the Company shall promptly appoint a successor Trustee.

     If a successor Trustee does not take office within 60 days after the retiring Trustee resigns
or is removed, the retiring Trustee, the Company or the Holders of at least 25% in aggregate
principal amount of the outstanding Notes may petition any court of competent jurisdiction at the
expense of the Company and Guarantors, in the case of the Trustee, for the appointment of a
successor Trustee.

     If the Trustee fails to comply with Section 7.10 hereof, any Noteholder may petition any court
of competent jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee.

     A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Immediately following such delivery, the retiring Trustee shall,
subject to its rights under Section 7.7 hereof, transfer all property held by it as Trustee to the
successor Trustee, the resignation or removal of the retiring Trustee shall become effective, and
the successor Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture. A successor Trustee shall mail notice of its succession to each Noteholder.
Notwithstanding replacement of the Trustee pursuant to this Section 7.8, the Company’s obligations
under Section 7.7 hereof shall continue for the benefit of the retiring Trustee.

          SECTION 7.9.   Successor Trustee by Consolidation, Merger or Conversion. If the Trustee consolidates with, merges
or converts into, or transfers all or
substantially all of its corporate trust assets to, another corporation or national banking
association, subject to Section 7.10 hereof, the successor corporation or national banking
association without any further act shall be the successor Trustee.

          SECTION 7.10.   Eligibility; Disqualification. This Indenture shall always have a Trustee who satisfies the
requirements of TIA Section
310(a)(1) and (2) in every respect. The Trustee shall have a combined capital and surplus of at
least $50,000,000 as set forth in its most recent published annual report of condition. The Trustee
shall comply with TIA Section 310(b), including the provision in Section 310(b)(1);
provided that there shall be excluded from the operation of TIA Section 310(b)(1) any
indenture or indentures under which other securities, or

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conflicts of interest or participation in
other securities, of the Company or the Guarantors are outstanding if the requirements for
exclusion set forth in TIA Section 310(b)(1) are met.

          SECTION 7.11.   Preferential Collection of Claims Against Company. The Trustee shall comply with TIA
Section 311(a), excluding any creditor relationship
listed in TIA Section 311(b). A Trustee who has resigned or been removed shall be subject to TIA
Section 311(a) to the extent indicated therein.

          SECTION 7.12.   Paying Agents. The Company shall cause each Paying Agent other than the Trustee to execute and
deliver to
it and the Trustee an instrument in which such agent shall agree with the Trustee, subject to the
provisions of this Section 7.12:

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

     (b) that it will at any time during the continuance of any Event of Default, upon
written request from the Trustee, deliver to the Trustee all sums so held in trust by it
together with a full accounting thereof; and

     (c) that it will give the Trustee written notice within three (3) Business Days of any
failure of the Company (or by any obligor on the Notes) in the payment of any installment of
the principal of, premium, if any, or interest on, the Notes when the same shall be due and
payable.

          SECTION 7.13.   Co-Trustee and Separate Trustees. At any time or times, for the purpose of meeting the legal
requirements of any applicable
jurisdiction, the Company and the Trustee shall have power to appoint, and, upon the written
request of the Trustee or of the Holders of at least 33% in aggregate principal amount of the Notes
then outstanding, the Company shall for such purpose join with the Trustee in the execution and
delivery of all instruments and agreements necessary or proper to appoint, one or more Persons
approved by the Trustee either to act as co-trustee, jointly with the Trustee, or to act as
separate trustee, in either case with such powers as may be provided in the instrument of
appointment, and to vest in such Person or Persons, in the capacity aforesaid, and for the benefit
of the Holders, any property, title, right or power deemed necessary or desirable, subject to the
other provisions of this Section. If the Company does not join in such appointment within 15
days after the receipt by it of a written request so to do, or if an Event of Default shall
have occurred and be continuing, the Trustee alone shall have power to make such appointment.

     Should any written instrument or instruments from the Company be required by any co-trustee or
separate trustee to more fully confirm to such co-trustee or separate trustee such property, title,
right or power, any and all such instruments shall, on request, be executed, acknowledged and
delivered by the Company.

     Every co-trustee or separate trustee shall, to the extent permitted by law, but to such extent
only, be appointed subject to the following conditions:

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          (a) the Notes shall be authenticated and delivered, and all rights, powers, duties and
obligations hereunder in respect of the custody of securities, cash and other personal property
held by, or required to be deposited or pledged with, the Trustee hereunder, shall be exercised
solely, by the Trustee;

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

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

          (d) no co-trustee or separate trustee hereunder shall be personally liable by reason of any
act or omission of the Trustee, or any other such trustee hereunder, and the Trustee shall not be
personally liable by reason of any act or omission of any such co-trustee or separate trustee;

          (e) any act of Holders delivered to the Trustee shall be deemed to have been delivered to each
such co-trustee and separate trustee;

          (f) any separate trustee or co-trustee may at any time appoint the Trustee as its agent or
attorney-in-fact with full power and authority, to the extent not prohibited by law, to do any
lawful act under or in respect of this Indenture on its behalf and in its name; and

          (g) if any separate trustee or co-trustee shall die, become incapable of acting, resign or be
removed, all of its estates, properties, rights, remedies and trusts shall vest in and be exercised
by the Trustee, to the extent permitted by law, without the appointment of a new successor trustee.

ARTICLE 8

AMENDMENTS, SUPPLEMENTS AND WAIVERS

          SECTION 8.1.   Without Consent of Holders. The Company and/or one or more Guarantors and the Trustee may, at any
time and from time to
time, modify, waive, amend or

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supplement this Indenture, the Notes, the Guarantees or the other
Note Documents, without notice to or consent of any Noteholder:

     (1) to comply with Section 5.1 hereof;

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

     (3) to comply with any requirements of the SEC under the TIA;

     (4) to cure any ambiguity, defect or inconsistency, to correct or supplement any
provision herein which may be defective or to make any other change that does not adversely
affect the rights of any Noteholder;

     (5) to evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Notes;

     (6) to enter into additional or supplemental Security Documents consistent with the
terms hereof;

     (7) to adjust the aggregate principal amount of Notes permitted to be issued pursuant
to this Indenture so that the aggregate principal amount of Notes permitted to be issued
pursuant to this Indenture are as provided in the Reorganization Plan;

     (8) to reflect the terms of any agreements with creditors of the Company and its
Subsidiaries entered into pursuant to the Reorganization Plan or otherwise approved by the
Bankruptcy Court, or to otherwise comply with the terms of the Reorganization Plan;

     (9) 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;

     (10) to make any change that would provide any additional rights or benefits to the
Holders of the Notes (including providing for Guarantees of the Notes and any supplemental
indenture (or, in the case of Foreign Subsidiaries, any Foreign Subsidiary Guarantee)
required pursuant to Sections 4.22 or 4.26 hereof) or that does not adversely
affect the legal rights under this Indenture of any such Holder (including such changes
as shall be necessary to permit or facilitate the Legal Defeasance, Covenant Defeasance
and/or discharge of the Indenture pursuant to Section 9.1); or

     (11) to add any additional Events of Default.

     The Trustee is hereby authorized to join with the Company and the Guarantors, if any, in the
execution of any modification, waiver, amendment or supplement to this Indenture, the Notes, the
Guarantees or the other Note Documents authorized or permitted by the terms of this Indenture and
to make any further appropriate agreements and stipulations which may be therein contained, but the
Trustee shall not be obligated to enter into any such modification, waiver, amendment or supplement
to this Indenture, the Notes, the Guarantees or the other Note

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Documents which adversely affects
its own rights, duties, liabilities or immunities under this Indenture.

          SECTION 8.2.   With Consent of Holders. The Company and/or one or more Guarantors and the Trustee may modify,
waive, amend or
supplement this Indenture, the Notes, the Guarantees or the other Note Documents (subject to any
amendment provisions contained therein) with the written consent of the Holders of not less than a
majority in aggregate principal amount of outstanding Notes. The Holders of not less than a
majority in aggregate principal amount of outstanding Notes may waive compliance in a particular
instance by the Company with any provision of this Indenture or the Notes. Subject to Section 8.4,
without the consent of each Noteholder affected, however, an amendment, supplement or waiver,
including a waiver pursuant to Section 6.4, may not:

     (1) reduce the principal amount of Notes whose Holders must consent to an amendment,
modification, supplement or waiver (for compliance with certain provisions of this Indenture
or certain defaults hereunder and their consequences) to this Indenture or the Notes;

     (2) reduce the rate of or change the time for, or manner of, payment of interest on any
Note;

     (3) reduce the principal of or premium on or change the stated maturity of any Note;

     (4) waive a default in the payment of the principal of, premium, if any, or interest
on, or redemption payment with respect to any Note;

     (5) change the amount or time of any payment required by the Note or waive a redemption
payment with respect to any Note (other than a payment required pursuant to Sections 4.12
and 4.27);

     (6) make any Note payable in money other than that stated in the Note or change the
place of payment from New York, New York;

     (7) subordinate in right of payment, or otherwise subordinate, the Notes or the
Guarantees to another Indebtedness or obligation of the Company or the Guarantors other than
Designated Senior Debt;

     (8) release all or substantially all of the Collateral from the Lien of this Indenture
and the Security Documents (other than pursuant to a Disposition in compliance with Section
4.12 hereof, or upon payment in full of all Obligations of the Company hereunder and under
the Notes);

     (9) take any other action otherwise prohibited by this Indenture to be taken without
the consent of each Holder affected thereby;

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     (10) release any Guarantor from any of its obligations under the Guarantee, except
pursuant to a transaction permitted under this Indenture (or, in the case of a Foreign
Subsidiary Guarantor, the applicable Foreign Subsidiary Guarantee); or

     (11) modify this Section 8.2 or Sections 6.4 or 6.7.

     After a modification, amendment, supplement or waiver under this Section 8.2 becomes
effective, the Company shall mail to the Holders a notice briefly describing the modification,
amendment, supplement or waiver. Any failure of the Company to mail such notice, or any defect
therein, shall not, however, in any way impair or affect the validity of any such modification,
amendment, supplement or waiver.

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

          SECTION 8.3.   TIA Compliance. Every amendment, waiver or supplement of this Indenture or the Notes shall comply
with the
TIA as then in effect.

          SECTION 8.4.   Revocation and Effect of Consents. Until a modification, amendment, supplement, waiver or other
action becomes effective, a
consent to it by a Holder of a Note is a continuing consent conclusive and binding upon such Holder
and every subsequent Holder of the same Note or portion thereof, and of any Note issued upon the
transfer thereof or in exchange therefor or in place thereof, even if notation of the consent is
not made on any such Note. Any such Holder or subsequent Holder, however, may revoke the consent as
to his Note or portion of a Note, if the Trustee receives the notice of revocation before the date
the modification, amendment, supplement, waiver or other action becomes effective. Notwithstanding
the foregoing, nothing in this paragraph shall impair the right of any Holder under TIA Section
316(b).

     The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders entitled to consent to any modification, amendment, supplement, or waiver.
If a record date is fixed, then, notwithstanding the preceding paragraph, those Persons
who were Holders at such record date (or their duly designated proxies), and only such
Persons, shall be entitled to consent to such modification, amendment, supplement, or waiver or to
revoke any consent previously given, whether or not such Persons continue to be Holders after such
record date. No such consent shall be valid or effective for more than 90 days after such record
date unless the consent of the requisite number of Holders has been obtained.

     After a modification, amendment, supplement, waiver or other action becomes effective, it
shall bind every Holder and every subsequent Holder.

          SECTION 8.5.   Notation on or Exchange of Notes. If a modification, amendment, supplement or waiver changes the
terms of a Note, the Trustee
may request the Holder of the Note to deliver it to the Trustee. In such case, the Trustee shall
place an appropriate notation on the Note about 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 security that reflects the changed terms.
Failure to make the

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appropriate notation or issue a new Note shall not affect the validity and
effect of such modification, amendment, supplement or waiver.

          SECTION 8.6.   Trustee to Sign Amendments, etc. The Trustee shall sign any modification, amendment, supplement or
waiver authorized pursuant
to this Article 8 if the modification, amendment, supplement or waiver does not affect the rights,
duties, liabilities or immunities of the Trustee. If it does, the Trustee may, but need not, sign
it. In signing or refusing to sign such modification, amendment, supplement or waiver, the Trustee
shall be provided with and, subject to Section 7.1 hereof, shall be fully protected in relying upon
an Officers’ Certificate and an Opinion of Counsel stating that such modification, amendment,
supplement or waiver is authorized or permitted by this Indenture and such modification, amendment,
supplement or waiver constitutes the legal, valid and binding obligation of the Company and the
applicable Guarantors enforceable against each of them in accordance with its terms (subject to
customary exceptions). The Company or any Guarantor may not sign a modification, amendment or
supplement until the Board of Directors of the Company or such Guarantor, as appropriate, approves
it in writing.

ARTICLE 9

DISCHARGE OF INDENTURE; DEFEASANCE

          SECTION 9.1.   Discharge of Indenture. The Company and the Guarantors, if any, may terminate their obligations
under the Notes,
the Guarantees, if any, and this Indenture, except the obligations referred to in the last
paragraph of this Section 9.1, if either (i) there shall have been cancelled by the Trustee or
delivered to the Trustee for cancellation all Notes theretofore authenticated and delivered (other
than any Notes that are asserted to have been destroyed, lost or stolen and that shall have been
replaced as provided in Section 2.7 hereof) or (ii) all Notes not theretofore surrendered or
delivered to the Trustee for cancellation shall have become due and payable, or are by their terms
to become due and payable within one year or are to be called for redemption within one year
under arrangements satisfactory to the Trustee, and the Company shall irrevocably deposit or
cause to be deposited with the Trustee, as trust funds solely for the benefit of the Holders for
that purpose, an amount sufficient to pay at maturity or upon redemption all of the Notes (other
than any Notes which shall have been destroyed, lost or stolen and in lieu of or in substitution
for which other Notes shall have been authenticated and delivered) not theretofore surrendered or
delivered to the Trustee for cancellation, including principal, premium, if any, and interest due
or to become due to such date of maturity or redemption date, as the case may be.

     In such event, the Trustee upon request from the Company, accompanied by an Officers’
Certificate and Opinion of Counsel, each stating that all conditions precedent provided for herein
relating to the satisfaction and discharge of this Indenture have been complied with, shall
acknowledge in writing the discharge of the Company’s and the Guarantors’ obligations under the
Notes, the Guarantees and this Indenture except for those surviving obligations specified below.

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     Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company in Sections 2.7, 7.7, 9.5, 9.6 and 9.8 hereof shall survive such satisfaction and
discharge.

          SECTION 9.2.   Legal Defeasance. The Company may at its option, by Board Resolution, be discharged from its
obligations with
respect to the Notes and the Guarantors, if any, discharged from their obligations under the
Guarantees, if any, on the date the conditions set forth in Section 9.4 below are satisfied
(hereinafter, “Legal Defeasance”). For this purpose, such Legal Defeasance means that the Company
shall be deemed to have paid and discharged the entire indebtedness represented by the Notes and to
have satisfied all its other obligations under such Notes and this Indenture insofar as such Notes
are concerned (and the Trustee, at the expense of the Company, shall, subject to Section 9.6
hereof, execute proper instruments acknowledging the same), except for the following which shall
survive until otherwise terminated or discharged hereunder: (A) the rights of Holders of
outstanding Notes to receive solely from the trust funds described in Section 9.4 hereof and as
more fully set forth in such Section, payments in respect of the principal of, premium, if any, and
interest on such Notes when such payments are due, (B) the Company’s obligations with respect to
such Notes under Sections 2.3, 2.4, 2.5, 2.6, 2.7, 2.8 and 3.8 hereof, (C) the rights, powers,
trusts, duties, and immunities of the Trustee hereunder (including claims of, or payments to, the
Trustee under or pursuant to Section 7.7 hereof) and (D) this Article 9. Subject to compliance with
this Article 9, the Company may exercise its option under this Section 9.2 with respect to the
Notes notwithstanding the prior exercise of its option under Section 9.3 below with respect to the
Notes.

          SECTION 9.3.   Covenant Defeasance. At the option of the Company, pursuant to a Board Resolution, the Company and
the
Guarantors, if any, shall be released from their respective obligations under Sections 4.2 through
4.4, inclusive, Sections 4.6 through 4.18, inclusive, Section 4.27, clause (c) of Section 5.1 and
Section 6.1(5) hereof with respect to the outstanding Notes on and after the date the conditions
set forth in Section 9.4 hereof are satisfied (hereinafter, “Covenant Defeasance”) and the Notes
shall thereafter be deemed to not be outstanding for purposes of any direction, waiver,
consent, declaration or act of the Holders (and the consequences thereof) in connection with such
covenants or with respect to any Event of Default set forth in Section 6.1(5) hereof but shall
continue to be outstanding for all other purposes hereunder. For this purpose, such Covenant
Defeasance means that the Company and the Guarantors, if any, may omit to comply with and shall
have no liability in respect of any term, condition or limitation set forth in any such specified
Section or portion thereof, whether directly or indirectly by reason of any reference elsewhere
herein to any such specified Section or portion thereof or by reason of any reference in any such
specified Section or portion thereof to any other provision herein or in any other document, but
the remainder of this Indenture and the Notes shall be unaffected thereby.

          SECTION 9.4.   Conditions to Legal Defeasance or Covenant Defeasance. The following shall be the conditions to
application of Sections 9.2 or 9.3 hereof to the
outstanding Notes:

     (1) the Company shall irrevocably have deposited or caused to be deposited with the
Trustee (or another trustee satisfying the requirements of Section 7.10 hereof

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who shall
agree to comply with the provisions of this Article 9 applicable to it) as funds in trust
for the purpose of making the following payments, specifically pledged as security for, and
dedicated solely to, the benefit of the Holders of the Notes, (A) money in an amount, or (B)
U.S. Government Obligations which through the scheduled payment of principal and interest in
respect thereof in accordance with their terms will provide, not later than the due date of
any payment, money in an amount, or (C) a combination thereof, sufficient, in the opinion of
a nationally-recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge, and which shall be
applied by the Trustee (or other qualifying trustee) to pay and discharge, the principal of,
premium, if any, and accrued interest on the outstanding Notes at the maturity date of such
principal, premium, if any, or interest, or on dates for payment and redemption of such
principal, premium, if any, and interest selected in accordance with the terms of this
Indenture and of the Notes;

     (2) no Event of Default or Default with respect to the Notes shall have occurred and be
continuing on the date of such deposit, or shall have occurred and be continuing at any time
during the period ending on the 91st day after the date of such deposit or, if longer,
ending on the day following the expiration of the longest reference period under any
Bankruptcy Law applicable to the Company in respect of such deposit (it being understood
that this condition shall not be deemed satisfied until the expiration of such period);

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

     (4) the Company shall have delivered to the Trustee an Opinion of Counsel stating that,
as a result of such Legal Defeasance or Covenant Defeasance, neither the
trust nor the Trustee will be required to register as an investment company under the
Investment Company Act of 1940, as amended;

     (5) in the case of an election under Section 9.2 above, 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 to the effect
that or (ii) there has been a change in any applicable Federal income tax law with the
effect that, and such opinion shall confirm that, the Holders of the outstanding Notes or
persons in their positions will not recognize income, gain or loss for Federal income tax
purposes as a result of such Legal Defeasance and will be subject to Federal income tax on
the same amounts, in the same manner, including as a result of prepayment, and at the same
times as would have been the case if such Legal Defeasance had not occurred;

     (6) in the case of an election under Section 9.3 hereof, the Company shall have
delivered to the Trustee an Opinion of Counsel to the effect that the Holders of the
outstanding Notes 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;

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     (7) the Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that (a) all conditions precedent provided for relating to
either the Legal Defeasance under Section 9.2 above or the Covenant Defeasance under Section
9.3 hereof (as the case may be) have been complied with and (b) if any other Indebtedness of
the Company shall then be outstanding, such legal defeasance or covenant defeasance will not
violate the provisions of the agreements or instruments evidencing such Indebtedness;

     (8) the Company shall have delivered to the Trustee an Officers’ Certificate stating
that the deposit under clause (1) was not made by the Company with the intent of defeating,
hindering, delaying or defrauding any creditors of the Company or others; and

     (9) Legal Defeasance and Covenant Defeasance may be effected only with respect to all,
and not be less than all, of the outstanding Notes.

          SECTION 9.5.   Deposited Money and U.S. Government Obligations to Be Held in Trust; Other
Miscellaneous Provisions. All money and U.S. Government Obligations (including the proceeds thereof) deposited with
the Trustee (or another trustee satisfying the requirements of Section 7.10 hereof) pursuant to
Sections 9.1 or 9.4 hereof in respect of the outstanding Notes shall be held in trust and applied
by the Trustee, in accordance with the provisions of such Notes and this Indenture, to the payment,
either directly or through any Paying Agent as the Trustee may determine, to the Holders of such
Notes, of all sums due and to become due thereon in respect of principal, premium, if any, and
accrued interest, but such money need not be segregated from other funds except to the extent
required by law. The Trustee shall be under no duty to invest such money or U.S. Government
Obligations.

     The Company and the Guarantors shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the U.S. Government Obligations deposited pursuant to
Sections 9.1 or 9.4 hereof or the principal, premium, if any, and interest received in respect
thereof other than any such tax, fee or other charge which by law is for the account of the Holders
of the outstanding Notes.

     Subject to Sections 7.1 and 7.2 hereof, anything in this Article 9 to the contrary
notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon Company
Request any money or U.S. Government Obligations held by it as provided in Section 9.4 hereof
which, in the opinion of a nationally-recognized firm of independent public accountants expressed
in a written certification thereof delivered to the Trustee, are in excess of the amount thereof
which would then be required to be deposited to effect an equivalent Legal Defeasance or Covenant
Defeasance.

          SECTION 9.6.   Reinstatement. If the Trustee (or another trustee satisfying the requirements of Section 7.10
pursuant to
Section 9.4) or Paying Agent is unable to apply any money or U.S. Government Obligations in
accordance with Section 9.1, 9.2 or 9.3 hereof 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 any Guarantor under this
Indenture, the Notes and the Guarantees, if any, shall be revived and reinstated as though no
deposit had occurred pursuant to

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this Article 9 until such time as the Trustee (or another trustee
satisfying the requirements of Section 7.10 pursuant to Section 9.4) or Paying Agent is permitted
to apply all such money or U.S. Government Obligations in accordance with Section 9.1 hereof;
provided, however, that if the Company or any Guarantors have made any payment of
principal of, premium, if any, or accrued interest on any Notes because of the reinstatement of
their obligations, the Company or such Guarantors, as the case may be, 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 another trustee satisfying the requirements of Section 7.10
pursuant to Section 9.4) or Paying Agent.

          SECTION 9.7.   Moneys Held by Paying Agent. In connection with the satisfaction and discharge of this Indenture,
all moneys then held
by any Paying Agent under the provisions of this Indenture shall, upon demand of the Company, be
paid to the Trustee, or if sufficient moneys have been deposited pursuant to Section 9.4 hereof, to
the Company (or, if such moneys had been deposited by any Guarantors, to such Guarantors), and
thereupon such Paying Agent shall be released from all further liability with respect to such
moneys.

          SECTION 9.8.   Moneys Held by Trustee. Any moneys deposited with the Trustee or any Paying Agent or then held by
the Company or
any Guarantors in trust for the payment of the principal of, premium, if any, or interest on any
Note that are not applied but remain unclaimed by the Holder of such Note for two years after the
date upon which the principal of, or premium, if any, or interest on such Note
shall have respectively become due and payable shall be repaid to the Company (or, if
appropriate, the Guarantors) upon Company Request, or if such moneys are then held by the Company
or any Guarantors in trust, such moneys shall be released from such trust; and the Holder of such
Note entitled to receive such payment shall thereafter, as an unsecured general creditor, look only
to the Company and the Guarantors, if any, for the payment thereof, and all liability of the
Trustee or such Paying Agent with respect to such trust money shall thereupon cease;
provided, however, that the Trustee or any such Paying Agent, before being required
to make any such repayment, may, at the expense of the Company and the Guarantors, if any, either
mail to each Noteholder affected, at the address shown in the register of the Notes maintained by
the Registrar pursuant to Section 2.3 hereof, or cause to be published once a week for two
successive weeks, in a newspaper published in the English language, customarily published each
Business Day and of general circulation in the City of New York, New York, a 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 mailing or publication, any unclaimed balance of such moneys then remaining
will be repaid to the Company. After payment to the Company or the Guarantors, if any, or the
release of any money held in trust by the Company or any Guarantors, as the case may be,
Noteholders entitled to the money must look only to the Company and any Guarantors for payment as
general creditors unless applicable abandoned property law designates another person.

          SECTION 9.9.   [Reserved].

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ARTICLE 10

COLLATERAL AND SECURITY

          SECTION 10.1.   Security. The due and punctual payment of the Obligations under the Notes shall be secured by the
Collateral, as provided in the Security Documents which the Company and the applicable parties have
entered into simultaneously with the execution of this Indenture for the benefit of, among others,
the Holders. Each Holder, by its acceptance thereof, consents and agrees to the terms of each of
the Security Documents as the same may be in effect or may be amended from time to time in
accordance with its terms and authorizes and directs the Trustee to enter into the Security
Documents and to perform its obligations and exercise its rights thereunder in accordance
therewith. The Company and the Guarantors shall deliver to the Trustee copies of all documents
executed pursuant to this Indenture and the Security Documents and shall do or cause to be done all
such acts and things as may be required by the provisions of the Security Documents to assure and
confirm the security interest in the Collateral contemplated thereby, by the Security Documents or
any part thereof, as from time to time constituted, so as to render the same available for the
security and benefit of this Indenture and of the Notes and the Guarantees secured hereby,
according to the intent and purposes herein and therein expressed. The Company shall take, or shall
cause its Subsidiaries to take any and all actions reasonably required to create and maintain, as
security for the obligations of the Company hereunder, a valid and enforceable perfected Lien in
and on all the Collateral.

          SECTION 10.2.   Certificates, Opinions and Recording. The Company and the Guarantors will cause this Indenture,
if necessary, the applicable
Security Documents, including any financing statements, all amendments or supplements to each of
the foregoing and any other similar security documents as necessary, to be registered, recorded and
filed and/or re-recorded, re-filed and renewed in such manner and in such place or places, if any,
as may be required by law in order fully to preserve and protect the Lien securing the obligations
under the Notes and the Guarantees of those Guarantors that are parties to the Security Documents
on the terms set forth in the Security Documents and to the extent required by the terms of this
Indenture and the Security Documents.

     The Company, the Guarantors and any other obligor shall furnish to the Trustee:

          (a) At any time when the Trustee becomes the Collateral Trustee under the Security Documents,
promptly after the execution and delivery of any other instrument of further assurance or amendment
(other than a release) to any Security Document, an Opinion of Counsel in the United States (which
may be in-house counsel to the Company and which may include one or more local or foreign counsel
opinions as to matters concerning the laws of affected jurisdictions) (i) stating that such
Security Document and such instruments of further assurance or amendment, if any, are valid,
binding and enforceable obligations of the Company and its Subsidiaries which are signatories to
those agreements, subject to customary qualifications and exceptions (and any other qualifications
and exceptions reasonably acceptable to the Trustee), and (ii) either (A) stating that, subject to
customary assumptions and exclusions (and any other qualifications and exceptions reasonably
acceptable to the Trustee), in the opinion of such counsel, such Security Document or such
amendment or instrument (1) have been recorded, registered and filed to the extent necessary to
make effective the Lien purported to be created by

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such Security Document as a result of such
amendment or (2) are in proper form to be recorded, registered and filed in the filing offices
specified in such opinion and upon such filing will make effective the Lien purported to be created
by such Security Document, and reciting the details of such action or referring to prior Opinions
of Counsel in which such details are given, or (3) that such amendment does not adversely affect
the validity or perfection of the Lien created by such Security Document and, in the case of
clauses (1) and (2) stating that, subject to customary assumptions and exclusions (and any other
qualifications and exceptions reasonably acceptable to the Trustee), as to such Security Documents
and such other instruments such recording, registering and filing will be the only recordings,
registrations and filings necessary to perfect or give constructive notice of the Liens granted
therein, or (B) stating that, subject to customary assumptions and exclusions (and any other
qualifications and exceptions reasonably acceptable to the Trustee), in the opinion of such
counsel, no such action is necessary to make any Lien purported to be created under such Security
Document effective as intended by this Indenture and such Security Documents.

          (b) If at any time when the Trustee becomes the Collateral Trustee under the Security
Documents, within 30 days after each anniversary of the date of this Indenture, an Opinion of
Counsel in the United States, dated as of such date (which may be in-house counsel to the Company
and which include one or more local counsel opinions as to matters concerning the laws of affected
jurisdictions), either (i) stating that, subject to customary assumptions and exclusions (and any
other qualifications and exceptions reasonably acceptable to the Trustee), in
the opinion of such counsel, such action has been taken with respect to the recording,
registering, filing, re-recording, re-registering and re-filing of this Indenture, the Security
Documents and all supplemental indentures, financing statements, continuation statements or other
instruments of further assurance as is necessary to maintain the Lien of the Security Documents
until the next Opinion of Counsel is required to be rendered pursuant to this paragraph and
reciting the details of such action or referring to prior Opinions of Counsel in which such details
are given and stating that all financing statements and continuation statements have been executed
and filed that are necessary fully to preserve and protect the rights of the Holders and the
Trustee hereunder and under the Security Documents, or (ii) stating that, subject to customary
assumptions and exclusions (and any other qualifications and exceptions reasonably acceptable to
the Trustee), in the opinion of such counsel, no such action is necessary to maintain such Lien,
until the next Opinion of Counsel is required to be rendered pursuant to this paragraph.

          (c) The Company shall furnish to the Trustee the certificate or opinions with respect to
compliance with a condition or covenant provided for in this Indenture (other than a certificate
provided pursuant to TIA Section 314(a)(4)), as the case may be, required by TIA Section 314(d).
Such certificates or opinions will be subject to the terms of TIA Section 314(e). The Company
shall also furnish to the Trustee copies of all amendments, supplements or other documentation with
respect to the Security Documents.

          SECTION 10.3.   Release of Collateral. (a)  Collateral may be released from the Lien and security
interest created by the Security
Documents at any time or from time to time (i) upon the request of the Company pursuant to an
Officers’ Certificate certifying that all terms for release and conditions precedent hereunder and
under the applicable Security Document have been met and specifying (A) the identity of the
Collateral to be released and (B) the provision of this Indenture that authorizes such release or
(ii) on the terms set forth in the Security Documents

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and pursuant to or in connection with a
transaction permitted under this Indenture (without regard to any requirement as to use of
proceeds). To the extent any action on the part of the Trustee is required to effectuate any
release of any Lien on any Collateral the Trustee shall release, and shall give any necessary
consent, waiver or instruction to the Collateral Trustee, to release (at the sole cost and expense
of the Company) (i) all Collateral that is contributed, sold, leased, conveyed, transferred or
otherwise disposed of, provided such contribution, sale, lease, conveyance, transfer or other
disposition is or will be in accordance with the provisions of this Indenture, (without regards to,
the requirement that the net proceeds, if any, from such contribution, sale, lease, conveyance,
transfer or other disposition are or will be applied in accordance with this Indenture) and that no
Default or Event of Default has occurred and is continuing or would occur immediately following
such release; (ii) Collateral which may be released with the consent of Holders pursuant to Article
8 hereof, (iii) all Collateral (except as provided in Article 9 hereof) upon discharge or
defeasance of this Indenture in accordance with Article 9 hereof; (iv) all Collateral upon the
payment in full of all Obligations of the Company with respect to principal, premium, if any, or
interest on the Notes; and (v) Collateral of a Guarantor whose Guarantee is released pursuant to
Section 11.4 hereof (or, in the case of a Foreign Subsidiary Guarantor, whose Guarantee is released
pursuant to the applicable Foreign Subsidiary Guarantee). Upon receipt of such Officers’
Certificate, an Opinion of Counsel and any other opinions or certificates required by this
Indenture and the TIA, the Trustee shall execute, deliver or acknowledge any necessary
or proper instruments of termination, satisfaction or release to evidence the release of any
Collateral permitted or required to be released pursuant to this Indenture and the Security
Documents.

          (b) The Trustee may release Collateral from the Lien and security interest created by this
Indenture and the Security Documents upon the sale or disposition of Collateral or the subjecting
of any Collateral to a Lien securing Indebtedness pursuant to the Trustee’s powers, rights and
duties with respect to remedies provided under any of the Security Documents.

          (c) The release of any Collateral from the terms of this Indenture and the Security Documents
shall not be deemed to impair the security under this Indenture in contravention of the provisions
hereof if and to the extent the Collateral is released pursuant to the terms hereof. To the extent
applicable, the Company shall cause TIA Section 313(b), relating to reports, and TIA Section
314(d), relating to the release of property or securities from the Lien and security interest of
the Security Documents and relating to the substitution therefor of any property or securities to
be subjected to the Lien and security interest of the Security Documents, to be complied with. Any
certificate or opinion required by TIA Section 314(d) may be made by an Officer of the Company
except in cases where TIA Section 314(d) requires that such certificate or opinion be made by an
independent Person, which Person shall be an engineer, appraiser or other expert selected or
approved by the Trustee in the exercise of reasonable care.

          (d) Notwithstanding the foregoing, the Company and each Subsidiary, as the case may be,
pursuant to the terms of this Indenture and the Security Documents, may effect any disposition of
Collateral and such Collateral shall be released from the Lien and security interest created by
this Indenture and the Security Documents without the delivery of any opinions or certificates upon
any such release; provided that (i) Section 4.12 is, or will be, complied with and (ii) any
property or assets acquired with any proceeds of such disposition becomes subject to the

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Lien and
security interest created by this Indenture and the Security Documents; provided,
further, that the Company shall deliver to the Trustee, within 15 days after each of the
six-month periods ended April 15 and October 15 in each year, an Officers’ Certificate to the
effect that all releases of Collateral by the Company or any Subsidiary, as the case may be, during
the preceding six-month period were in accordance with the provisions of the Security Documents and
this Indenture and that all proceeds there from were used by the Company or such Subsidiary as
permitted herein (or will be so used within the time permitted by this Indenture).

          (e) The fair value of Collateral released from the Lien and security interest created by this
Indenture and the Security Documents pursuant to Section 10.3(d) hereof shall not be considered in
determining whether the aggregate fair value of Collateral released from the Lien and security
interest created by this Indenture and the Security Documents in any calendar year exceeds the 10%
threshold specified in Section 314(d)(l) of the TIA; provided that the Company’s right to
rely on this sentence at any time is conditioned upon the Company having furnished to the Trustee
the certificates described in Section 10.3(d) hereof that were required to be furnished to the
Trustee at or prior to such time.

          (f) No Collateral shall be released from the Lien and security interest created by the
Security Documents pursuant to the provisions of the Security Documents unless there shall have
been delivered to the Trustee the certificates required by this Section 10.3.

          (g) Upon satisfaction of Sections 3.5, 9.1, 9.2 (including 9.4) or 9.3 (including 9.4), the
Collateral shall be released from the Lien and any other security interests created under this
Indenture and the Notes and under the Security Documents for the benefit of Noteholders or the
Trustee and all such Liens and security interests shall terminate, without requiring further
compliance with any of the foregoing provisions of this Section 10.3.

          SECTION 10.4.   Protection of the Trust Estate. Subject to the terms of the Collateral Agreement and the other
Security Documents upon
prior written notice to the Collateral Trustee, the Company and the Guarantors, the Trustee shall
have the power (i) to institute and maintain such suits and proceedings as it may deem expedient,
to prevent any impairment of the Collateral under any of the Security Documents; and (ii) to
enforce the obligations of the Company, the Guarantors or any Subsidiary under this Indenture or
the Security Documents, to institute and maintain such suits and proceedings as may be expedient to
prevent any impairment of the Collateral under the Security Documents and in the profits, rents,
revenues and other income arising therefrom; including the power to institute and maintain suits or
proceedings to restrain the enforcement of or compliance with any legislative or other governmental
enactment, rule or order that may be unconstitutional or otherwise invalid if the enforcement of,
or compliance with, such enactment, rule or order would impair any Collateral or be prejudicial to
the interests of the Holders or the Trustee, to the extent permitted thereunder.

          SECTION 10.5.   Certificates of the Company. The Company shall furnish to the Trustee, prior to each proposed
release of Collateral
pursuant to the Security Documents (i) all documents required by TIA Section 314(d) and (ii) an
Opinion of Counsel in the United States, which opinion shall be subject to customary assumptions
and exclusions, to the effect that such accompanying documents constitute all documents required by
TIA Section 314(d). The Trustee may, to the extent permitted by Sections 7.1 and 7.2 hereof, accept
as conclusive evidence of

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compliance with the foregoing provisions the appropriate statements contained in such
documents and such Opinion of Counsel.

          SECTION 10.6.   Certificates of the Trustee. In the event that the Company wishes to
release Collateral in accordance with the Security Documents and has delivered the certificates and
documents required by the Security Documents and Sections 10.3 and 10.5 hereof, the Trustee shall
determine whether it has received all documents required by TIA Section 314(d) in connection with
such release and, based on such determination and the Opinion of Counsel delivered pursuant to
Section 10.5(ii), shall deliver a certificate to the Collateral Agent, setting forth such
determination.

          SECTION 10.7.   Authorization of Actions to be Taken by the Trustee Under the Security
Documents. Subject to the provisions of Sections 7.1 and 7.2 hereof and the Security
Documents, the Trustee may, but is not obligated to, without the consent of the Holders, on behalf
of the Holders, direct the Collateral Trustee to take all actions it deems necessary or appropriate
in order to (a) enforce any of the terms of the Security Documents and (b) collect and receive any
and all amounts payable in respect of the Obligations of the Company hereunder or the Guaranteed
Note Obligations of the Guarantors hereunder or under a Foreign Subsidiary Guarantee. Subject to
the Security Documents, the Trustee shall have power to institute and maintain such suits and
proceedings as it may deem expedient to prevent any impairment of the Collateral by any acts that
may be unlawful or in violation of the Security Documents or this Indenture, and such suits and
proceedings as the Trustee may deem expedient to preserve or protect its interests and the
interests of the Holders in the Collateral (including power to institute and maintain suits or
proceedings to restrain the enforcement of or compliance with any legislative or other governmental
enactment, rule or order that may be unconstitutional or otherwise invalid if the enforcement of,
or compliance with, such enactment, rule or order would impair the security interest hereunder or
be prejudicial to the interests of the Holders or of the Trustee).

          SECTION 10.8.   Authorization of Receipt of Funds by the Trustee Under the Security
Documents. Subject to the Security Documents, upon an Event of Default and so long as such
Event of Default continues, the Trustee to the extent it is the Collateral Trustee, may exercise in
respect of the Collateral, in addition to the other rights and remedies provided for herein, in the
Security Documents or otherwise available to it, all of the rights and remedies of a secured party
under the Uniform Commercial Code or other applicable law, and the Trustee may also upon obtaining
possession of the Collateral as set forth herein, without notice to the Company, except as
specified below, sell the Collateral or any part thereof in one or more parcels at public or
private sale, at any exchange, broker’s board or at any of the Trustee’s offices or elsewhere, for
cash, on credit or for future delivery, and upon such other terms as the Trustee may deem
commercially reasonable. The Company acknowledges and agrees that any such private sale may result
in prices and other terms less favorable to the seller than if such a sale were a public sale. The
Company agrees that, to the extent notice of sale shall be required by law, at least 10 days’
notice to the Company of the time and place of any public sale or the time after which any private
sale is to be made shall constitute reasonable notification. The Trustee shall not be obligated to
make any sale regardless of notice of sale having been given. The Trustee may adjourn any public or
private sale from time to time by announcement at the time

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and place fixed therefor, and such sale may, without further notice, be made at the time and
place to which it was so adjourned.

     Any cash that is Collateral held by the Trustee and all cash proceeds received by the Trustee
in respect of any sale of, collection from, or other realization upon all or any part of the
Collateral shall be applied (unless otherwise provided for in the Security Documents) in accordance
with Section 6.10 hereof, or as the Holders shall direct pursuant to Section 6.5 hereof. Any
surplus of such cash or cash proceeds held by the Trustee and remaining after payment in full of
all the obligations shall be paid over to the Company or as a court of competent jurisdiction may
direct.

          SECTION 10.9.   Termination of Security Interest. Upon the payment in full of all
principal, premium, if any, and interest in respect of the Notes, or upon Legal Defeasance or
Covenant Defeasance, the Trustee shall, at the request of the Company, deliver a certificate to the
Collateral Trustee stating that such Obligations have been paid in full, and instruct the
Collateral Trustee to release the Liens (to the extent they secure the Obligations) pursuant to the
Indenture and the Security Documents.

          SECTION 10.10.   Cooperation of Trustee. In the event the Company or any Guarantor
pledges or grants to the Trustee a security interest in additional Collateral, the Trustee shall
cooperate with the Company or such Guarantor in reasonably and promptly agreeing to the form of,
and executing as required, any instruments or documents necessary to make effective the security
interest in the Collateral to be so pledged. To the extent practicable, the terms of any security
agreement or other instrument or document necessitated by any such pledge shall be comparable to
the provisions of the existing relevant Security Documents. Subject to, and in accordance with the
requirements of this Article 10 and the terms of the Security Documents, in the event that the
Company or any Guarantor engages in any transaction pursuant to Section 10.3, the Trustee, subject
to the provisions of Section 10.3, shall cooperate with the Company or such Guarantor in order to
facilitate such transaction in accordance with any reasonable time schedule proposed by the
Company, including by delivering and releasing the Collateral in a prompt and reasonable manner.

          SECTION 10.11.   Collateral Trustee. The Collateral Trustee may be delegated any one
or more of the duties or rights of the Trustee hereunder or under the Security Documents or which
are specified in any Security Documents, including, the right to hold any Collateral in the name
of, registered to, or in the physical possession of, such Collateral Trustee for the ratable
benefit of the Holders of the Notes and the holders from time to time under the Exit Facility, the
Senior Loans and the Additional Liquidity Facility.

          SECTION 10.12.   Agents Under Security Documents. Each Holder hereby further
authorizes the Trustee on behalf of and for the benefit of the Holders, to be the agent for and
representative of the Holders with respect to the Collateral and the Security Documents and
authorizes the Trustee to appoint and direct the Collateral Trustee to be the agent for and
representative of the Holders with respect to the Collateral and the Security Documents and to act
in its capacity as creditor of the Parallel Debt (as defined in each Foreign Subsidiary Guarantee)
under each Foreign Subsidiary Guarantee.

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ARTICLE 11

DOMESTIC SUBSIDIARY GUARANTEE OF NOTES

          SECTION 11.1.   Domestic Subsidiary Guarantee. Subject to the provisions of this
Article 11, each Domestic Subsidiary Guarantor hereby jointly and severally with the Guarantors
unconditionally and irrevocably guarantees to each Holder and to the Trustee, for itself and on
behalf of the Holders, that: (a) the principal of, premium, if any, or interest on, or Default
Interest, if any, if lawful, on the Notes (including interest accruing after the Maturity of the
Notes and interest accruing after the filing of any petition in bankruptcy, or the commencement of
any insolvency, reorganization or like proceeding, relating to the Company, whether or not a claim
for post-filing or post-petition interest is allowed in such proceeding) shall be promptly paid in
full in cash when due, whether at Maturity, by acceleration, redemption or otherwise, if lawful,
and all other Obligations of the Company to the Holders or the Trustee whether for payment of
principal of, premium, if any, or interest on the Notes and all other monetary obligations of the
Company under this Indenture, the Notes and the other Note Documents (including all fees, charges
and disbursements of counsel to the Collateral Trustee, the Trustee or to any Holder of any Note
that are required to be paid by the Company pursuant to any Note Document) shall be promptly paid
in full or performed, all in accordance with the terms hereof and thereof; and (b) in the case of
any extension of time of payment or renewal of any Notes or any of such other Obligations, that the
same will be promptly paid in full when due or performed in accordance with the terms of the
extension or renewal, at stated maturity, by acceleration or otherwise (all the foregoing being
hereinafter collectively called the “Guaranteed Note Obligations”). Failing payment when due of
any amount so guaranteed or any performance so guaranteed for whatever reason, the Guarantors shall
be jointly and severally obligated to pay the same immediately. Each Domestic Subsidiary Guarantor
agrees that this is a guarantee of payment and not a guarantee of collection.

     Each Domestic Subsidiary Guarantor agrees that its obligations hereunder shall be absolute and
unconditional, irrespective of, and shall be unaffected by, any invalidity, irregularity or
unenforceability of any Note or this Indenture or any other Note Document, any failure to enforce
the provisions of any Note or this Indenture or any other Note Document, any waiver, modification
or indulgence granted to the Company with respect thereto by the Holder of such Note or the
Trustee, any release of any Collateral, or any other circumstances which may otherwise constitute a
legal or equitable discharge of a surety of such Guarantor.

     Each Domestic Subsidiary Guarantor waives diligence, presentment, demand of payment, filing of
claims with a court in the event of merger or bankruptcy of the Company, any right to require a
proceeding first against the Company, protest or notice with respect to the Domestic Subsidiary
Guarantee and all demands whatsoever, and covenants that the Domestic Subsidiary Guarantee will not
be discharged as to any such Note except by payment in full of the principal thereof, premium if
any, and interest thereon and as provided in Section 9 hereof.

     Each Domestic Subsidiary Guarantor agrees that it shall not be entitled to any right of
subrogation in relation to the Holders in respect of any obligations guaranteed hereby until
payment in full of all obligations guaranteed hereby. Each Domestic Subsidiary Guarantor further
agrees that, as between such Guarantor, on the one hand, and the Holders and the Trustee,

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on the other hand, (i) the maturity of the Obligations guaranteed by the Domestic Subsidiary
Guarantee may be accelerated as provided in Article 6 hereof for the purposes of the Domestic
Subsidiary Guarantee, notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the Obligations guaranteed thereby, and (ii) in the event of any
declaration of acceleration of such Obligations as provided in Article 6 hereof, such Obligations
(whether or not due and payable) shall forthwith become due and payable by each Domestic Subsidiary
Guarantor for the purpose of the Domestic Subsidiary Guarantee. In addition, without limiting the
foregoing provisions, upon the effectiveness of an acceleration under Article 6 hereof, the Trustee
shall promptly make a demand for payment on the Notes under any Domestic Subsidiary Guarantee
provided for in this Article 11 and not discharged. Failure to make such demand shall not affect
the validity or enforceability of the Domestic Subsidiary Guarantee upon any Domestic Subsidiary
Guarantor.

     Each Domestic Subsidiary Guarantee shall remain in full force and effect and continue to be
effective should any petition be filed by or against the Company or any Guarantor for liquidation
or reorganization, should the Company or any Guarantor become insolvent or make an assignment for
the benefit of creditors or should a receiver or trustee be appointed for all or any significant
part of the Company’s or any other Guarantor’s assets, and shall, to the fullest extent permitted
by law, continue to be effective or be reinstated, as the case may be, if at any time payment and
performance of the Notes are, pursuant to applicable law, rescinded or reduced in amount, or must
otherwise be restored or returned by any obligee on the Notes or Guarantees, whether as a “voidable
preference,” “fraudulent transfer” or otherwise, all as though such payment or performance had not
been made. In the event that any payment or any part thereof, is rescinded, reduced, restored or
returned, the Notes shall, to the fullest extent permitted by law, be reinstated and deemed reduced
only by such amount paid and not so rescinded, reduced, restored or returned.

     Each payment to be made by a Domestic Subsidiary Guarantor in respect of its Guarantee shall
be made without set-off, counterclaim, reduction or diminution of any kind or nature.

     A Domestic Subsidiary Guarantee shall not be valid or become obligatory for any purpose with
respect to a Note unless the certificate of authentication on such Note shall have been signed by
or on behalf of the Trustee.

     Each Domestic Subsidiary Guarantor also agrees to pay any and all costs and expenses
(including reasonable attorneys’ fees and expenses) incurred by the Trustee as a representative of
any Holder in enforcing any rights under this section.

          SECTION 11.2.   Execution and Delivery of Supplemental Indentures. Each Subsidiary
which is required to become a Domestic Subsidiary Guarantor pursuant to Sections 4.22 or 4.26
hereof shall promptly execute and deliver to the Trustee a supplemental indenture substantially in
the form of Exhibit B hereto pursuant to which such Subsidiary shall become a Domestic Subsidiary
Guarantor under this Article 11 and shall guarantee the Obligations as set forth in Section 11.1.
Concurrently with the execution and delivery of such supplemental indenture, the Company shall
deliver to the Trustee an Opinion of Counsel and an Officers’ Certificate to the effect that such
supplemental indenture has been duly authorized, executed and delivered by such Subsidiary and
that, subject to the application of bankruptcy, insolvency,

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moratorium, fraudulent conveyance or transfer and other similar laws relating to creditors’
rights generally and to the principles of equity, whether considered in a proceeding at law or in
equity, the Domestic Subsidiary Guarantee of such Subsidiary is a legal, valid and binding
obligation of such Subsidiary, enforceable against such Subsidiary in accordance with its terms.

          SECTION 11.3.   Limitation of Domestic Subsidiary Guarantee. Each Domestic Subsidiary
Guarantor, and, by its acceptance of Notes, each Holder, hereby confirms that it is the intention
of all such parties that the Domestic Subsidiary Guarantee of such Domestic Subsidiary Guarantor
not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform
Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar Federal or state law
to the extent applicable to any Guarantee. To effectuate the foregoing intention, the Trustee, the
Holders and the Domestic Subsidiary Guarantors hereby irrevocably agree that the obligations of
each Domestic Subsidiary Guarantor will be limited to the maximum amount as will, after giving
effect to all other contingent and fixed liabilities of such Guarantor and after giving effect to
any collections from or payments made by or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under its Guarantee or pursuant to its contribution obligations
under this Indenture, result in the obligations of such Domestic Subsidiary Guarantor under the
Domestic Subsidiary Guarantee not constituting a fraudulent conveyance or fraudulent transfer under
Federal or state law. Each Domestic Subsidiary Guarantor that makes a payment under its Guarantee
shall be entitled upon payment in full of all guaranteed obligations under this Indenture to a
contribution from each other Guarantor in an amount equal to such other Guarantor’s pro rata
portion of such payment based on the respective net assets of all the Guarantors at the time of
such payment determined in accordance with GAAP.

          SECTION 11.4.   Release of Domestic Subsidiary Guarantor. A Domestic Subsidiary
Guarantor shall be released from all of its obligations under its Domestic Subsidiary Guarantee if:

     (i) all the Capital Stock of a Domestic Subsidiary Guarantor shall be sold,
transferred or otherwise disposed of (but other than to any other Guarantor); or

     (ii) a Domestic Subsidiary Guarantor shall enter into any merger, consolidation
or amalgamation with a Person that is not a Guarantor (and is not required to be a
Guarantor) and such Domestic Subsidiary Guarantor is not the survivor of such
merger, consolidation or amalgamation; or

     (iii) a Domestic Subsidiary Guarantor shall liquidate, wind up or dissolve
itself (or be liquidated or dissolved),

in each case, in a transaction in compliance with (or that will comply with) Sections 4.12 and 5.1
hereof to the extent applicable and, in each case, the Company has delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent herein
provided for relating to such transactions have been complied with. At the written request of the
Company, the Trustee will promptly execute and deliver appropriate instruments in forms

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reasonably acceptable to the Company evidencing and further implementing any releases or discharges
pursuant to the foregoing provisions.

          SECTION 11.5.   Subrogation. Each Domestic Subsidiary Guarantor shall be subrogated
to all rights of Holders of against the Company in respect of any amounts paid by any Guarantor
pursuant to the provisions of Section 11.1 (or, in the case of a Foreign Subsidiary Guarantor,
pursuant to the provisions of the applicable Foreign Subsidiary Guarantee); provided that,
if an Event of Default has occurred and is continuing, no Domestic Subsidiary Guarantor shall be
entitled to enforce or receive any payments arising out of, or based upon, such right of
subrogation until all amounts then due and payable by the Company under this Indenture, the Notes
or the other Note Documents shall have been paid in full.

          SECTION 11.6.   Benefits Acknowledged. Each Domestic Subsidiary Guarantor
acknowledges that it will receive direct and indirect benefits from the financing arrangements
contemplated by this Indenture and that the guarantee and waivers made by it pursuant to its
Guarantee are knowingly made in contemplation of such benefits.

          SECTION 11.7.   Evidence of Domestic Subsidiary Guarantees. Each Domestic Subsidiary
Guarantor hereby agrees that its execution and delivery of this Indenture or any supplemental
indenture pursuant to Section 11.2 hereof shall evidence its Domestic Subsidiary Guarantee set
forth in Section 11.1 without the need for any further notation on any Notes, and further agrees
that its Domestic Subsidiary Guarantee set forth in Section 11.1 shall remain in full force and
effect notwithstanding any failure to include or endorse on any Note a notation relating to such
Guarantee. The delivery of any Note by the Trustee, after the authentication thereof hereunder,
shall constitute due delivery of the Domestic Subsidiary Guarantee set forth in this Indenture on
behalf of the Domestic Subsidiary Guarantors.

ARTICLE 12

SUBORDINATION

          SECTION 12.1.   Notes Subordinated to Designated Senior Debt. The Company covenants
and agrees, and the Trustee and each Holder of the Notes, by its acceptance thereof, likewise
covenants and agrees, that all Notes shall be issued subject to the provisions of this Article 12;
and the Trustee and each Person holding any Note, whether upon original issue or upon transfer,
assignment or exchange thereof, accepts and agrees that the payment of all Obligations on the Notes
by the Company shall, to the extent and in the manner herein set forth, be subordinated and junior
in right of payment to the prior payment in full in cash or Cash Equivalents of all obligations on
the Designated Senior Debt; that the subordination is for the benefit of, and shall be enforceable
directly by, the holders of Designated Senior Debt (including the obligations under or with respect
to the Exit Facility) and that each holder of Designated Senior Debt whether now outstanding or
hereafter created, incurred, assumed or guaranteed shall be deemed to have acquired Designated
Senior Debt in reliance upon the covenants and provisions contained in this Indenture and the
Notes.

          Notwithstanding the foregoing, payments and distributions made with U.S. Legal Tender or the
proceeds of U.S. Government Obligations held in any defeasance trust (as

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described in Section 9.5) shall not be subordinated in right of payment to any Designated
Senior Debt, so long as all of the conditions to deposit into such trust are satisfied at the time
of such deposit and such payments and distributions are otherwise permitted by the terms of all
Designated Senior Debt.

          SECTION 12.2.   No Payment on Notes in Certain Circumstances.

          (a) Unless Section 12.3 shall be applicable, if any default occurs and is continuing in the
payment when due, whether at maturity, upon redemption, by declaration or otherwise, of any
principal of, premium (if any) on, interest on, unpaid drawings for letters of credit issued in
respect of, or regularly accruing fees with respect to, any Designated Senior Debt, no payment or
distribution of any kind or character shall be made by, or on behalf of, the Company or any other
Person on its or their behalf with respect to any Obligations on or relating to the Notes, or to
acquire any of the Notes for cash or property or otherwise, including Permitted Open Market
Purchases.

          In addition, unless Section 12.3 shall be applicable, if any other event of default occurs and
is continuing with respect to any Designated Senior Debt, as such event of default is defined in
the instrument creating or evidencing such Designated Senior Debt, permitting the holders of such
Designated Senior Debt then outstanding to accelerate the maturity thereof and if the
representative for the respective issue of Designated Senior Debt gives written notice of the event
of default to the Trustee (a “Default Notice”), then, unless and until all events of default have
been cured or waived or have ceased to exist or the Trustee receives notice thereof from the
representative for the respective issue of Designated Senior Debt terminating the Blockage Period
(as defined below), during the 180 days after the delivery of such Default Notice (the “Blockage
Period”), neither the Company nor any other Person on its behalf shall (x) make any payment of any
kind or character with respect to any Obligations on, or with respect to the Notes or (y) acquire
any of the Notes for cash or property or otherwise, including any Permitted Open Market Purchases.
Notwithstanding anything herein to the contrary, (I) in no event will a Blockage Period extend
beyond 180 days from the date the applicable Default Notice is received by the Trustee and (II)
only one such Blockage Period may be commenced within any 360 consecutive days.

          No non-payment event of default which existed or was continuing on the date of the
commencement of any Blockage Period with respect to the Designated Senior Debt shall be, or be
made, the basis for the commencement of a subsequent Blockage Period by the Representative of such
Designated Senior Debt whether or not within a period of 360 consecutive days, unless such event of
default shall have been cured or waived for a period of not less than 90 consecutive days (it being
acknowledged that any subsequent action, or any breach of any financial covenants for a period
commencing after the date of commencement of such Blockage Period that, in either case, would give
rise to an event of default pursuant to any provisions under which an event of default previously
existed or was continuing shall constitute a new event of default for this purpose).

          (b) In the event that, notwithstanding the foregoing, any payment shall be received by the
Trustee or any Holder when such payment is prohibited by Section 12.2(a), such payment shall be
held in trust for the benefit of, and shall be paid over or delivered to, the

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holders of Designated Senior Debt (pro rata to such holders on the basis of the respective
amount of Designated Senior Debt held by such holders) or their respective Representatives, as
their respective interests may appear. The Trustee shall be entitled to rely on information
regarding amounts then due and owing on the Designated Senior Debt, if any, received from the
holders of Designated Senior Debt (or their Representatives) or, if such information is not
received from such holders or their Representatives, from the Company and only amounts included in
the information provided to the Trustee shall be paid to the holders of Designated Senior Debt.

          Nothing contained in this Article 12 shall limit the right of the Trustee or the Holders to
take any action to accelerate the maturity of the Notes pursuant to Section 6.2 or to pursue any
rights or remedies hereunder (subject, however, to the rights, if any, under this Article 12, of
the holders of Designated Senior Debt in respect of cash or other property of the Company received
upon the exercise of any such remedy); provided that all Designated Senior Debt thereafter
due or declared to be due shall first be paid in full in cash or Cash Equivalents before the
Holders are entitled to receive any payment of any kind or character with respect to Obligations
on, or with respect to, the Notes.

          SECTION 12.3.   Payment Over of Proceeds upon Dissolution, Etc.

          (a) Upon any payment or distribution of assets of the Company of any kind or character,
whether in cash, property, or securities, to creditors upon any total or partial liquidation,
dissolution, winding-up, reorganization, assignment for the benefit of creditors or marshaling of
assets of the Company or in a bankruptcy, reorganization, insolvency, receivership or other similar
proceeding relating to the Company or its property, whether voluntary or involuntary, all
obligations due or to become due upon all Designated Senior Debt shall first be paid in full in
cash or Cash Equivalents (including interest after the commencement of any bankruptcy or other like
proceeding at the rate specified in the applicable Designated Senior Debt, whether or not such
interest is an allowed claim in any such proceeding), before any payment or distribution of any
kind or character is made on account of any Obligations on, or with respect to, the Notes, or for
the acquisition of any of the Notes for cash or property or otherwise, including any Permitted Open
Market Purchases. Upon any such dissolution, winding-up, liquidation, reorganization, receivership
or similar proceeding, any payment or distribution of assets of the Company of any kind or
character, whether in cash, property or securities, to which the Holders or the Trustee under this
Indenture would be entitled, except for the provisions hereof, shall be paid by the Company or by
any receiver, trustee in bankruptcy, liquidating trustee, agent or other Person making such payment
or distribution, or by the Holders or by the Trustee under this Indenture if received by them,
directly to the holders of Designated Senior Debt (pro rata to such holders on the
basis of the respective amounts of Designated Senior Debt held by such holders) or their respective
Representatives, or to the trustee or trustees under any indenture pursuant to which any of such
Designated Senior Debt may have been issued, as their respective interests may appear, for
application to the payment of Designated Senior Debt remaining unpaid until all such Designated
Senior Debt has been paid in full in cash or Cash Equivalents after giving effect to any concurrent
payment, distribution or provision therefore to or for the holders of Designated Senior Debt.

          (b) To the extent any payment of Designated Senior Debt (whether by or on behalf of the
Company, as proceeds of security or enforcement of any right of setoff or

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otherwise) is declared to be fraudulent or preferential, set aside or required to be paid to
any receiver, trustee in bankruptcy, liquidating trustee, agent or other similar Person under any
bankruptcy, insolvency, receivership, fraudulent conveyance or similar law, then, if such payment
is recovered by, or paid over to, such receiver, trustee in bankruptcy, liquidating trustee, agent
or other similar Person, the Designated Senior Debt or part thereof originally intended to be
satisfied shall be deemed to be reinstated and outstanding as if such payment had not occurred.

          It is further agreed that any diminution (whether pursuant to court decree or otherwise,
including without limitation for any of the reasons described in the preceding paragraph) of the
Company’s obligation to make any distribution or payment pursuant to any Designated Senior Debt,
except to the extent such diminution occurs by reason of the repayment (which has not been
disgorged or returned) of such Designated Senior Debt in cash or Cash Equivalents, shall have no
force or effect for purposes of the subordination provisions contained in this Article 12, with any
turnover of payments as otherwise calculated pursuant to this Article 12 to be made as if no such
diminution has occurred.

          (c) In the event that, notwithstanding the foregoing, any payment or distribution of assets of
the Company of any kind or character, whether in cash, property or securities, shall be received by
the Trustee or any Holder when such payment or distribution is prohibited by Section 12.3(a), such
payment or distribution shall be held in trust for the benefit of, and shall be paid over or
delivered directly to, the holders of Designated Senior Debt (pro rata to such
holders on the basis of the respective amounts of Designated Senior Debt held by such holders) or
their respective Representatives, or to the trustee or trustees under any indenture pursuant to
which any of such Designated Senior Debt may have been issued, as their respective interests may
appear, for application to the payment of Designated Senior Debt remaining unpaid until all such
Designated Senior Debt has been paid in full in cash or Cash Equivalents, after giving effect to
any concurrent payment, distribution or provision therefore to or for the holders of such
Designated Senior Debt.

          (d) The consolidation of the Company with, or the merger of the Company with or into, another
corporation or the liquidation or dissolution of the Company following the conveyance or transfer
of all or substantially all of its assets, to another corporation upon the terms and conditions
provided in Article 5 hereof and as long as permitted under the terms of the Designated Senior Debt
shall not be deemed a dissolution, winding-up, liquidation or reorganization for the purposes of
this Section if such other corporation shall, as a part of such consolidation, merger, conveyance
or transfer, assume the Company’s obligations hereunder in accordance with Article 5 hereof.

          SECTION 12.4.   Payments May Be Paid Prior to Dissolution. Nothing contained in this
Article 12 or elsewhere in this Indenture shall prevent (i) the Company, except under the
conditions described in Sections 12.2 and 12.3, from making payments at any time for the purpose of
making payments of principal of and premium, if any, and interest on the Notes, or from depositing
with the Trustee any moneys for such payments, or (ii) in the absence of actual knowledge by the
Trustee that a given payment would be prohibited by Section 12.2, 12.3, 13.2 or 13.3, the
application by the Trustee of any moneys deposited with it for the purpose of making such payments
of principal of, and premium, if any, and interest on, the Notes to the Holders

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entitled thereto unless at least two Business Days prior to the date upon which such payment
would otherwise become due and payable a Trust Officer shall have actually received the written
notice provided for in Section 12.7 (provided that, notwithstanding the foregoing, the
Holders receiving any payments made in contravention of Sections 12.2 and/or 12.3 (and the
respective such payments) shall otherwise be subject to the provisions of the first sentence of
Section 12.2(a) and Section 12.3). The Company shall give prompt written notice to the Trustee of
any dissolution, winding-up, liquidation or reorganization of the Company, although any delay or
failure to give any such notice shall have no effect on the subordination provisions contained
herein.

          SECTION 12.5.   Subrogation. Subject to the payment in full in cash or Cash
Equivalents of all Designated Senior Debt, the Holders of the Notes shall be subrogated to the
rights of the holders of Designated Senior Debt to receive payments or distributions of cash,
property or securities of the Company applicable to the Designated Senior Debt until the Notes
shall be paid in full; and, for the purposes of such subrogation, no such payments or distributions
to the holders of the Guarantor Senior Debt by or on behalf of the Company or by or on behalf of
the Holders by virtue of this Article 12 which otherwise would have been made to the Holders shall,
as between the Company and the Holders of the Notes, be deemed to be a payment by the Company to or
on account of the Designated Senior Debt, it being understood that the provisions of this Article
12 are and are intended solely for the purpose of defining the relative rights of the Holders, on
the one hand, and the holders of the Designated Senior Debt, on the other hand.

          SECTION 12.6.   Obligations of the Company Unconditional. Nothing contained in this
Article 12 or elsewhere in this Indenture or in the Notes is intended to or shall impair, as among
the Company, its creditors other than the holders of Designated Senior Debt, and the Holders, the
obligation of the Company, which is absolute and unconditional, to pay to the Holders the principal
of and premium, if any, and interest on the Notes as and when the same shall become due and payable
in accordance with their terms, or is intended to or shall affect the relative rights of the
Holders and creditors of the Company other than the holders of the Designated Senior Debt, nor
shall anything herein or therein prevent the Holder of any Note or the Trustee on its behalf from
exercising all remedies otherwise permitted by applicable law upon default under this Indenture,
subject to the rights, if any, in respect of cash, property or securities of the Company received
upon the exercise of any such remedy.

          SECTION 12.7.   Notice to Trustee. The Company shall give prompt written notice to
the Trustee of any fact known to the Company which would prohibit the making of any payment to or
by the Trustee in respect of the Notes pursuant to the provisions of this Article 12, although any
delay or failure to give any such notice shall have no effect on the subordination provisions
contained herein. Regardless of anything to the contrary contained in this Article 12 or elsewhere
in this Indenture, the Trustee shall not be charged with knowledge of the existence of any default
or event of default with respect to any Designated Senior Debt or of any other facts which would
prohibit the making of any payment to or by the Trustee unless and until the Trustee shall have
received notice in writing from the Company, or from a holder of Designated Senior Debt or a
Representative therefor, and, prior to the receipt of any such written notice, the Trustee shall be
entitled to assume (in the absence of actual knowledge to the contrary) that no such facts exist
(provided that, notwithstanding the foregoing, the Holders of the Notes receiving any
payments made in contravention of Section 12.2 and/or 12.3 (and the respective such

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payments) shall otherwise be subject to the provision of the first sentence of Section 12.2(a)
and Section 12.3). The Trustee shall be entitled to rely on the delivery to it of any notice
pursuant to this Section 12.7 to establish that such notice has been given by a holder of
Designated Senior Debt (or a Representative therefor).

          In the event that the Trustee determines in good faith that any evidence is required with
respect to the right of any Person as a holder of Designated Senior Debt to participate in any
payment or distribution pursuant to this Article 12, the Trustee may request such Person to furnish
evidence to the reasonable satisfaction of the Trustee as to the amounts of Designated Senior Debt
held by such Person, the extent to which such Person is entitled to participate in such payment or
distribution and any other facts pertinent to the rights of such Person under this Article 12, and
if such evidence is not furnished the Trustee may defer any payment to such Person pending judicial
determination as to the right of such Person to receive such payment.

          SECTION 12.8.   Reliance on Judicial Order or Certificate of Liquidating Agent. Upon
any payment or distribution of assets of the Company referred to in this Article 12, the Trustee,
subject to the provisions of Article 7 hereof, and the Holders of the Notes shall be entitled to
rely conclusively upon any order or decree made by any court of competent jurisdiction in which any
insolvency, bankruptcy, receivership, dissolution, winding-up, liquidation, reorganization or
similar case or proceedings is pending, or upon a certificate of the receiver, trustee in
bankruptcy, liquidating trustee, receiver, assignee for the benefit of creditors, agent or other
person making such payment or distribution, delivered to the Trustee or the Holders of the Notes,
for the purpose of ascertaining the persons entitled to participate in such payment or
distribution, the holders of the Designated Senior Debt and other Indebtedness of the Company, the
amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other
facts pertinent thereto or to this Article 12.

          SECTION 12.9.   Trustee’s Relation to Designated Senior Debt. The Trustee and any
agent of the Company or the Trustee shall be entitled to all the rights set forth in this Article
12 with respect to any Designated Senior Debt which may at any time be held by it in its individual
or any other capacity to the same extent as any other holder of Designated Senior Debt and nothing
in this Indenture shall deprive the Trustee or any such agent of any of its rights as such holder.

          With respect to the holders of Designated Senior Debt, the Trustee undertakes to perform or to
observe only such of its covenants and obligations as are specifically set forth in this Article
12, and no implied covenants or obligations with respect to the holders of Designated Senior Debt
shall be read into this Indenture against the Trustee. The Trustee shall not be deemed to owe any
fiduciary duty to the holders of Designated Senior Debt.

          Whenever a distribution is to be made or a notice given to holders or owners of Designated
Senior Debt, the distribution may be made and the notice may be given to their Representative, if
any.

          SECTION 12.10.   Subordination Rights Not Impaired by Acts or Omissions of the Company or
Holders of Designated Senior Debt. No right of any present or future holders of any Designated
Senior Debt to enforce subordination as provided herein shall at any time in any

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way be prejudiced or impaired by any act or failure to act on the part of the Company or by
any act or failure to act, in good faith, by any such holder, or by any noncompliance by the
Company with the terms of this Indenture, regardless of any knowledge thereof which any such holder
may have or otherwise be charged with.

          Without in any way limiting the generality of the foregoing paragraph, the holders of
Guarantor Senior Debt may, at any time and from time to time, without the consent of or notice to
the Trustee or the Holders, without incurring responsibility to the Trustee or the Holders and
without impairing or releasing the subordination provided in this Article 12 or the obligations
hereunder of the Holders to the holders of the Guarantor Senior Debt, do any one or more of the
following: (i) change the manner, place or terms of payment or extend the time of payment of, or
renew or alter, Designated Senior Debt, or otherwise amend or supplement in any manner Designated
Senior Debt, or any instrument evidencing the same or any agreement under which Guarantor Senior
Debt is outstanding; (ii) sell, exchange, release or otherwise deal with any property pledged,
mortgaged or otherwise securing Designated Senior Debt; (iii) release any Person liable in any
manner for the payment or collection of Designated Senior Debt; and (iv) exercise or refrain from
exercising any rights against the Company and any other Person.

          SECTION 12.11.   Noteholders Authorize Trustee To Effectuate Subordination of Notes.
Each Holder by its acceptance of them authorizes and expressly directs the Trustee on its behalf to
take such action as may be necessary or appropriate to effectuate, as between the holders of
Designated Senior Debt and the Holders, the subordination provided in this Article 12, and appoints
the Trustee its attorney-in-fact for such purposes, including, in the event of any dissolution,
winding-up, liquidation or reorganization of the Company (whether in bankruptcy, insolvency,
receivership, reorganization or similar proceedings or upon an assignment for the benefit of
creditors or otherwise) tending towards liquidation of the business and assets of the Company, the
filing of a claim for the unpaid balance of its Notes and accrued interest in the form required in
those proceedings.

          If the Trustee does not file a proper claim or proof of debt in the form required in such
proceeding prior to 30 days before the expiration of the time to file such claim or claims, then
the holders of the Designated Senior Debt or their Representatives are hereby authorized to have
the right to file and are or is hereby authorized to file an appropriate claim for and on behalf of
the Holders of said Notes. Nothing herein contained shall be deemed to authorize the Trustee or the
holders of Designated Senior Debt or their Representatives to authorize or consent to or accept or
adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Holder thereof, or to authorize the Trustee or the holders
of Designated Senior Debt or their Representatives to vote in respect of the claim of any Holder in
any such proceeding.

          SECTION 12.12.   This Article 12 Not To Prevent Events of Default. The failure to
make a payment on account of principal of or interest on the Notes by reason of any provision of
this Article 12 will not be construed as preventing the occurrence of an Event of Default.

          SECTION 12.13.   Trustee’s Compensation Not Prejudiced. Nothing in this Article 12
will apply to amounts due to the Trustee pursuant to other sections in this Indenture.

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ARTICLE 13

SUBORDINATION OF THE DOMESTIC SUBSIDIARY GUARANTEES

          SECTION 13.1.   Domestic Subsidiary Guarantees Subordinated to Guarantor Senior Debt.
Each Domestic Subsidiary Guarantor covenants and agrees, and the Trustee and each Holder by
accepting a Note, covenants and agrees, that the obligations of such Domestic Subsidiary Guarantor
hereunder are subordinated and junior in right of payment, to the extent and in the manner provided
in this Article 13, to the prior payment in full in cash or Cash Equivalents of all obligations on
the Guarantor Senior Debt of such Guarantor and that the subordination is for the benefit of, and
enforceable directly by, the holders of such Guarantor Senior Debt of such Guarantor (including any
obligations under or with respect to the Exit Facility or Senior Loans), and that each holder of
Guarantor Senior Debt whether now outstanding or hereafter created, incurred, assumed or guaranteed
shall be deemed to have acquired Guarantor Senior Debt in reliance upon the covenants and
provisions contained in this Indenture and the Notes.

          Notwithstanding the foregoing, payments and distributions made with U.S. Legal Tender or the
proceeds of U.S. Government Obligations held in any defeasance trust (as described in Section 9.5)
shall not be subordinated in right of payment to any Guarantor Senior Debt, so long as all the
conditions to deposit into such trust are satisfied at the time of such deposit and such payments
and distributions are otherwise permitted by the terms of all Guarantor Senior Debt.

          SECTION 13.2.   Guarantees in Certain Circumstances. (a) Unless Section 13.3 shall
be applicable, if any default occurs and is continuing in the payment when due, whether at
maturity, upon redemption, by declaration or otherwise, of any principal of, premium (if any) on,
interest on, unpaid drawings for letters of credit issued in respect of, or regularly accruing fees
with respect to, any Guarantor Senior Debt, no payment or distribution of any kind or character
shall be made by, or on behalf of, such Domestic Subsidiary Guarantor or any other Person on its or
their behalf with respect to any Guaranteed Note Obligations, or to acquire any of the Guarantees
for cash or property or otherwise. At any time while any Blockage Period is in existence, neither
any Domestic Subsidiary Guarantor nor any other Person on any Domestic Subsidiary Guarantors’
behalf shall (x) make any payment of any kind or character with respect to any obligations on its
Guarantee or (y) acquire any of the Notes for cash or property or otherwise, including any
Permitted Open Market Purchases.

          (b) In the event that, notwithstanding the foregoing, any payment shall be received by the
Trustee or any Holder when such payment is prohibited by Section 13.2(a), such payment shall be
held in trust for the benefit of, and shall be paid over or delivered to, the holders of Guarantor
Senior Debt (pro rata to such holders on the basis of the respective amount of Guarantor Senior
Debt held by such holders) or their Representatives, as their respective interests may appear. The
Trustee shall be entitled to rely on information regarding amounts then due and owing on the
Guarantor Senior Debt, if any, received from the holders of Guarantor Senior Debt (or their
Representatives) or, if such information is not received from such holders or their
Representatives, from the Domestic Subsidiary Guarantor and only amounts included in the
information provided to the Trustee shall be paid to the holders of Guarantor Senior Debt.

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          Nothing contained in this Article 13 shall limit the right of the Trustee or the Holders to
take any action to accelerate the maturity of the Notes pursuant to Section 6.2 or to pursue any
rights or remedies hereunder (subject, however, to the rights, if any, under this Article 13, of
the holders of Guarantor Senior Debt, in respect of cash or other property of such Domestic
Subsidiary Guarantor received upon the exercise of such remedy); provided that all
Guarantor Senior Debt thereafter due or declared to be due shall first be paid in full in cash or
Cash Equivalents before the Holders are entitled to receive any payment of any kind or character
with respect to Guaranteed Note Obligations on, or with respect to, the Notes.

          SECTION 13.3.   Payment Over of Proceeds upon Dissolution, Etc. (a) Upon any payment
or distribution of assets of a Domestic Subsidiary Guarantor of any kind or character, whether in
cash, property, or securities, to creditors upon any total or partial liquidation, dissolution,
winding-up, reorganization, assignment for the benefit of creditors or marshaling of assets of a
Domestic Subsidiary Guarantor or in a bankruptcy, reorganization, insolvency, receivership or other
similar proceedings relating to a Domestic Subsidiary Guarantor or its property, whether voluntary
or involuntary, all Guarantor Senior Debt shall first be paid in full in cash or Cash Equivalents
(including interest after the commencement of any bankruptcy or like proceeding at the rate
specified in the applicable Guarantor Senior Debt, whether or not such interest is an allowed claim
in any such proceeding), before any payment or distribution of any kind or character is made on
account of any Guaranteed Note Obligations on, or with respect to, the Notes, or for the
acquisition of any of the Notes for cash or property or otherwise. Upon any such dissolution,
winding-up, liquidation, reorganization, receivership or similar proceeding, any payment or
distribution of assets of a Domestic Subsidiary Guarantor of any kind or character, whether in
cash, property or securities, to which the Holders of the Notes and the Domestic Subsidiary
Guarantees or the Trustee under this Indenture would be entitled, except for the provisions hereof,
shall be paid by such Domestic Subsidiary Guarantor or by any receiver, trustee in bankruptcy,
liquidating trustee, agent or other Person making such payment or distribution, or by the Holders
or by the Trustee under this Indenture if received by them, directly to the holders of Guarantor
Senior Debt (pro rata to such holders on the basis of the respective amounts of
Guarantor Senior Debt held by such holders) or their respective Representatives, or to the trustee
or trustees under any indenture pursuant to which any of such Guarantor Senior Debt may have been
issued, as their respective interests may appear, for application to the payment of Guarantor
Senior Debt remaining unpaid until all such Guarantor Senior Debt has been paid in full in cash or
Cash Equivalents after giving effect to any concurrent payment, distribution or provision therefore
to or for the holders of such Guarantor Senior Debt.

          (b) To the extent any payment of Guarantor Senior Debt (whether by or on behalf of such
Domestic Subsidiary Guarantor, as proceeds of security or enforcement of any right of setoff or
otherwise) is declared to be fraudulent or preferential, set aside or required to be paid to any
receiver, trustee in bankruptcy, liquidating trustee, agent or other similar Person under any
bankruptcy, insolvency, receivership, fraudulent conveyance or similar law, then, if such payment
is recovered by, or paid over to, such receiver, trustee in bankruptcy, liquidating trustee, agent
or other similar Person, the Guarantor Senior Debt or part thereof originally intended to be
satisfied shall be deemed to be reinstated and outstanding as if such payment had not occurred.

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          It is further agreed that any diminution (whether pursuant to court decree or otherwise,
including without limitation for any of the reasons described in the preceding paragraph) of such
Domestic Subsidiary Guarantor’s obligation to make any distribution or payment pursuant to any
Guarantor Senior Debt, except to the extent such diminution occurs by reason of the repayment
(which has not been disgorged or returned) of such Guarantor Senior Debt in cash or Cash
Equivalents, shall have no force or effect for purposes of the subordination provisions contained
in this Article 13, with any turnover of payments as otherwise calculated pursuant to this Article
13 to be made as if no such diminution has occurred.

          (c) In the event that, notwithstanding the foregoing, any payment or distribution of assets of
any Domestic Subsidiary Guarantor of any kind or character, whether in cash, property or
securities, shall be received by the Trustee, any Holder when such payment or distribution is
prohibited by Section 13.3(a), such payment or distribution shall be held in trust for the benefit
of, and shall be paid over or delivered directly to, the holders of Guarantor Senior Debt
(pro rata to such holders on the basis of the respective amounts of Guarantor
Senior Debt held by such holders) or their Representatives, or to the trustee or trustees under any
indenture pursuant to which any of such Guarantor Senior Debt may have been issued, as their
respective interests may appear, for application to the payment of Guarantor Senior Debt remaining
unpaid until all such Guarantor Senior Debt has been paid in full in cash or Cash Equivalents,
after giving effect to any concurrent payment, distribution or provision therefore to or for the
holders of such Guarantor Senior Debt.

          (d) The consolidation of a Domestic Subsidiary Guarantor with, or the merger of a Domestic
Subsidiary Guarantor with or into, another corporation or the liquidation or dissolution of a
Domestic Subsidiary Guarantor following the conveyance or transfer of all or substantially all of
its assets, to another corporation upon the terms and conditions provided in Article 5 hereof and
as long as permitted under the terms of the Guarantor Senior Debt shall not be deemed a
dissolution, winding-up, liquidation or reorganization for the purposes of this Section if such
other corporation shall, as a part of such consolidation, merger, conveyance or transfer, assume
the Domestic Subsidiary Guarantor’s obligations hereunder in accordance with Article 5 hereof.

          SECTION 13.4.   Payments May Be Paid Prior to Dissolution. Nothing contained in this
Article 13 or elsewhere in this Indenture shall prevent (i) a Domestic Subsidiary Guarantor, except
under the conditions described in Sections 13.2 and 13.3, from making payments at any time for the
purpose of making payments of principal of, and premium, if any, and interest on the Domestic
Subsidiary Guarantees, or from depositing with the Trustee any moneys for such payments, or (ii) in
the absence of actual knowledge by the Trustee that a given payment would be prohibited by Section
13.2 or 13.3, the application by the Trustee of any moneys deposited with it for the purpose of
making such payments pursuant to the Domestic Subsidiary Guarantees to the Holders entitled thereto
unless at least two Business Days prior to the date upon which such payment would otherwise become
due and payable a Trust Officer shall have actually received the written notice provided for in
Section 13.7 (provided that, notwithstanding the foregoing, the Holders receiving any
payments made in contravention of Sections 13.2 and/or 13.3 (and the respective such payments)
shall otherwise be subject to the provisions of the first sentence of Section 13.2(a) and Section
13.3). Each Domestic Subsidiary Guarantor shall give prompt written notice to the Trustee of any
dissolution, winding-up,

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liquidation or reorganization of such Domestic Subsidiary Guarantor, although any delay or
failure to give any such notice shall have not effect on the subordination provisions contained
herein.

          SECTION 13.5.   Subrogation. Subject to the payment in full in cash or Cash
Equivalents of all Guarantor Senior Debt of a Domestic Subsidiary Guarantor, the Holders of the
Notes shall be subrogated to the rights of the holders of Guarantor Senior Debt to receive payments
or distributions of cash, property or securities of such Guarantor applicable to such Guarantor
Senior Debt until the Guaranteed Note Obligations shall be paid in full; and, for the purposes of
such subrogation, no such payments or distributions to the holders of the Guarantor Senior Debt by
or on behalf of such Guarantor or by or on behalf of the Holders by virtue of this Article 13 which
otherwise would have been made to the Holders shall, as between the Domestic Subsidiary Guarantor
and the Holders of the Notes, be deemed to be a payment by the Domestic Subsidiary Guarantor to or
on account of the Guarantor Senior Debt, it being understood that the provisions of this Article 13
are and are intended solely for the purpose of defining the relative rights of the Holders of the
Domestic Subsidiary Guarantees, on the one hand, and the holders of the Guarantor Senior Debt, on
the other hand.

          SECTION 13.6.   Obligations of each Domestic Subsidiary Guarantor Unconditional.
Nothing contained in this Article 13 or elsewhere in this Indenture, the Guarantees or in the Notes
is intended to or shall impair, as among each Domestic Subsidiary Guarantor, its creditors other
than the holders of Guarantor Senior Debt, and the Holders, the obligation of each Domestic
Subsidiary Guarantor, which is absolute and unconditional, to pay to the Holders the Guaranteed
Note Obligations as and when the same shall become due and payable in accordance with their terms,
or is intended to or shall affect the relative rights of the Holders and creditors of each Domestic
Subsidiary Guarantor other than the holders of the Guarantor Senior Debt, nor shall anything herein
or therein prevent the Holder of any Domestic Subsidiary Guarantee or the Trustee on its behalf
from exercising all remedies otherwise permitted by applicable law upon default under this
Indenture, subject to the rights, if any, in respect of cash, property or securities of the
Domestic Subsidiary Guarantor received upon the exercise of any such remedy.

          SECTION 13.7.   Notice to Trustee. Each Domestic Subsidiary Guarantor shall give
prompt written notice to the Trustee of any fact known to each such Guarantor which would prohibit
the making of any payment to or by the Trustee in respect of each Domestic Subsidiary Guarantee
pursuant to the provisions of this Article 13, although any delay or failure to give any such
notice shall have no effect on the subordination provisions contained herein. Regardless of
anything to the contrary contained in this Article 13 or elsewhere in this Indenture, the Trustee
shall not be charged with knowledge of the existence of any default or event of default with
respect to any Guarantor Senior Debt or of any other facts which would prohibit the making of any
payment to or by the Trustee unless and until the Trustee shall have received notice in writing
from such Guarantor, or from a holder of Guarantor Senior Debt or a Representative therefor, and,
prior to the receipt of any such written notice, the Trustee shall be entitled to assume (in the
absence of actual knowledge to the contrary) that no such facts exist (provided that,
notwithstanding the foregoing, the Holders of the Notes receiving any payments made in
contravention of Section 13.2 and/or 13.3 (and the respective such payments) shall otherwise be
subject to the provisions of the first sentence of Section 13.2(a) and Section 13.3). The Trustee

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shall be entitled to rely on the delivery to it of any notice pursuant to this Section 13.7 to
establish that such notice has been given by a holder of Guarantor Senior Debt (or a Representative
therefor).

          In the event that the Trustee determines in good faith that any evidence is required with
respect to the right of any Person as a holder of Guarantor Senior Debt to participate in any
payment or distribution pursuant to this Article 13, the Trustee may request such Person to furnish
evidence to the reasonable satisfaction of the Trustee as to the amounts of Guarantor Senior Debt
held by such Person, the extent to which such Person is entitled to participate in such payment or
distribution and any other facts pertinent to the rights of such Person under this Article 13, and
if such evidence is not furnished the Trustee may defer any payment to such Person pending judicial
determination as to the right of such Person to receive such payment.

          SECTION 13.8.   Reliance on Judicial Order or Certificate of Liquidating Agent. Upon
any payment or distribution of assets of a Domestic Subsidiary Guarantor referred to in this
Article 13, the Trustee, subject to the provisions of Article 7 hereof, and the Holders of the
Notes shall be entitled to rely conclusively upon any order or decree made by any court of
competent jurisdiction in which any insolvency, bankruptcy, receivership, dissolution, winding-up,
liquidation, reorganization or similar case or proceedings is pending, or upon a certificate of the
receiver, trustee in bankruptcy, liquidating trustee, receiver, assignee for the benefit of
creditors, agent or other person making such payment or distribution, delivered to the Trustee or
the Holders of the Domestic Subsidiary Guarantees, for the purpose of ascertaining the persons
entitled to participate in such payment or distribution, the holders of the Guarantor Senior Debt
and other Indebtedness of the Domestic Subsidiary Guarantor, the amount thereof or payable thereon,
the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this
Article 13.

          SECTION 13.9.   Trustee’s Relation to Guarantor Senior Debt. The Trustee and any
agent of the Company or the Trustee shall be entitled to all the rights set forth in this Article
13 with respect to any Guarantor Senior Debt which may at any time be held by it in its individual
or any other capacity to the same extent as any other holder of Guarantor Senior Debt and nothing
in this Indenture shall deprive the Trustee or any such agent of any of its rights as such holder.

          With respect to the holders of Guarantor Senior Debt, the Trustee undertakes to perform or to
observe only such of its covenants and obligations as are specifically set forth in this Article
13, and no implied covenants or obligations with respect to the holders of Guarantor Senior Debt
shall be read into this Indenture against the Trustee. The Trustee shall not be deemed to owe any
fiduciary duty to the holders of Guarantor Senior Debt.

          Whenever a distribution is to be made or a notice given to holders or owners of Guarantor
Senior Debt, the distribution may be made and the notice may be given to their Representatives, if
any.

          SECTION 13.10.   Subordination Rights Not Impaired by Acts or Omissions of the Company,
the Domestic Subsidiary Guarantors or Holders of Guarantor Senior Debt. No right of any
present or future holders of any Guarantor Senior Debt to enforce subordination as

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provided herein shall at any time in any way be prejudiced or impaired by any act or failure
to act on the part of any Domestic Subsidiary Guarantor or by any act or failure to act, in good
faith, by any such holder, or by any noncompliance by such Guarantor with the terms of this
Indenture or the Domestic Subsidiary Guarantee regardless of any knowledge thereof which any such
holder may have or otherwise be charged with.

          Without in any way limiting the generality of the foregoing paragraph, the holders of
Guarantor Senior Debt may, at any time and from time to time, without the consent of or notice to
the Trustee or Holders, without incurring responsibility to the Trustee or the Holders of the
Domestic Subsidiary Guarantees and without impairing or releasing the subordination provided in
this Article 13 or the obligations hereunder of the Holders of the Domestic Subsidiary Guarantees
to the holders of the Guarantor Senior Debt, do any one or more of the following: (i) change the
manner, place or terms of payment or extend the time of payment of, or renew or alter, Guarantor
Senior Debt, or otherwise amend or supplement in any manner Guarantor Senior Debt, or any
instrument evidencing the same or any agreement under which Guarantor Senior Debt is outstanding;
(ii) sell, exchange, release or otherwise deal with any property pledged, mortgaged or otherwise
securing Guarantor Senior Debt; (iii) release any Person liable in any manner for the payment or
collection of Guarantor Senior Debt; and (iv) exercise or refrain from exercising any rights
against the Domestic Subsidiary Guarantor and any other Person.

          SECTION 13.11.   Holders Authorize Trustee To Effectuate Subordination of the Domestic
Subsidiary Guarantees. Each Holder authorizes and expressly directs the Trustee on its behalf
to take such action as may be necessary or appropriate to effectuate, as between the holders of
Guarantor Senior Debt and the Holders of the Domestic Subsidiary Guarantees, the subordination
provided in this Article 13, and appoints the Trustee its attorney-in-fact for such purposes,
including, in the event of any dissolution, winding-up, liquidation or reorganization of a Domestic
Subsidiary Guarantor (whether in bankruptcy, insolvency, receivership, reorganization or similar
proceedings or upon an assignment for the benefit of creditors or otherwise) tending towards
liquidation of the business and assets of such Guarantor, the filing of a claim for the unpaid
balance of its Guaranteed Note Obligations and accrued interest in the form required in those
proceedings.

          If the Trustee does not file a proper claim or proof of debt in the form required in such
proceeding prior to 30 days before the expiration of the time to file such claim or claims, then
the holders of the Guarantor Senior Debt or their Representatives are hereby authorized to have the
right to file and are hereby authorized to file an appropriate claim for and on behalf of the
Holders of the Notes. Nothing herein contained shall be deemed to authorize the Trustee or the
holders of Guarantor Senior Debt or their Representatives to authorize or consent to or accept or
adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Holder thereof, or to authorize the Trustee or the holders
of Guarantor Senior Debt or their Representatives to vote in respect of the claim of any Holder in
any such proceeding.

          SECTION 13.12.   This Article 13 Not To Prevent Events of Default. The failure of a
Domestic Subsidiary Guarantor to make payment on any of its obligations by reason of any provision
of this Article 13 will not be construed as preventing the occurrence of a default by

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such Domestic Subsidiary Guarantor under such obligations. Nothing in this Article 13 shall
have any effect on the right of the Holders or the Trustee to make a demand for payment on a
Guarantor pursuant to Article 11 (or, in the case of a Foreign Subsidiary Guarantor, pursuant to
the applicable Foreign Subsidiary Guarantee).

          SECTION 13.13.   Trustee’s Compensation Not Prejudiced. Nothing in this Article 13
will apply to amounts due to the Trustee pursuant to other sections in this Indenture.

ARTICLE 14

MISCELLANEOUS

          SECTION 14.1.   Conflict with the TIA. If any provision of this Indenture limits,
qualifies or conflicts with any duties under any required provision of the TIA imposed heron by
Section 318(c) of the TIA, such required provision of the TIA shall control.

          SECTION 14.2.   Notices. Any notice or communication shall be given in writing and
delivered in person, sent by facsimile, sent by e-mail, delivered by commercial courier service or
mailed by first-class mail, postage prepaid, addressed as follows:

if to the Company or any Guarantor:

FEDERAL-MOGUL CORPORATION

Attention: David A. Bozynski

26555 Northwestern Highway

Southfield, MI 48033

Telephone: (248) 354-9469

Facsimile: (248) 354-6746

with a copy to: Robert L. Katz

Telephone: (248) 354-9924

Facsimile: (248) 354-2659

with a copy to:

SIDLEY AUSTIN LLP

James F. Conlan, Esq.

Larry A. Barden, Esq.

One South Dearborn Street

Chicago, IL 60603

Telephone: (312) 853-7000

Facsimile: (312) 853-7036

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if to the Trustee:

U.S. BANK NATIONAL ASSOCIATION

Attention: Corporate Trust Administration

60 Livingston Avenue

EP-MN-WS3C

St. Paul, MN 55107-2292

Facsimile: (651) 495-8097

E-mail: richard.prokosch@usbank.com; raymond.haverstock@usbank.com

     Such notices or communications shall be effective when received and shall be sufficiently
given if so given within the time prescribed in this Indenture.

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

     Any notice or communication mailed to a Holder shall be mailed to such Holder by first-class
mail, postage prepaid, at such Holder’s address shown on the register kept by the Registrar. Any
notice or communication sent to a Holder by facsimile shall be sent to such Holder’s facsimile
number, if any, shown on the register kept by the Registrar. If a notice or communication to a
Holder is mailed or sent by facsimile in the manner provided above, it shall be deemed duly given
on the date so deposited in the mail or sent by facsimile, as the case may be, whether or not the
addressee receives it.

     Failure to mail or transmit a notice or communication to a Holder or any defect in it shall
not affect its sufficiency with respect to other Holders.

     In case, by reason of the suspension of regular mail or telephone service, or by reason of any
other cause, it shall be impossible to mail or transmit any notice as required by this Indenture,
then such method of notification as shall be made with the approval of the Trustee shall constitute
a sufficient mailing or transmission of such notice.

          SECTION 14.3.   Communication by Holders with Other Holders. Holders may communicate
pursuant to TIA Section 312(b) with other Holders with respect to their rights under this Indenture
or the Notes. The Company, the Trustee and anyone else shall have the protection of TIA Section
312(c).

          SECTION 14.4.   Certificate and Opinion as to Conditions Precedent. Upon any request
or application by the Company or any Guarantor to the Trustee to take any action under this
Indenture, the Company shall furnish to the Trustee:

     (1) an Officers’ Certificate (which shall include the statements set forth in Section
14.5 below) 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;

     (2) an Opinion of Counsel (which shall include the statements set forth in Section 14.5
below) in form and substance reasonably satisfactory to the Trustee stating

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that, in the opinion of such counsel, all conditions precedent, if any, provided for in
this Indenture relating to the proposed action have been complied with; and

     (3) where applicable, a certificate or opinion by an independent certified public
accountant satisfactory to the Trustee that complies with TIA Section 314(c).

          SECTION 14.5.   Statements Required in Certificate and Opinion. Each certificate and
opinion with respect to compliance with a condition or covenant provided for in this Indenture
shall include:

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

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

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

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

          SECTION 14.6.   When Treasury Notes Disregarded. In determining whether the Holders
of the required aggregate principal amount of Notes have concurred in any direction, waiver or
consent, Notes owned by the Company, any Guarantor or any other obligor on the Notes or by any
Affiliate of any of them shall be disregarded as though they were not outstanding, except that for
the purposes of determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent, only Notes which the Trustee actually knows are so owned shall be so
disregarded. Notes so owned which have been pledged in good faith shall not be disregarded if the
pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect
to the Notes and that the pledgee is not the Company, a Guarantor or any other obligor upon the
Notes or any Affiliate of any of them.

          SECTION 14.7.   Rules by Trustee and Agents. The Trustee may make reasonable rules
for action by or meetings of Holders. The Registrar and Paying Agent may make reasonable rules for
their functions.

          SECTION 14.8.   Business Days; Legal Holidays. A “Business Day” is a day that is not
a Legal Holiday. A “Legal Holiday” is a Saturday, a Sunday, a federally-recognized holiday or a day
on which banking institutions are not required to be open in the State of New York. If a payment
date is a Legal Holiday at a place of payment, payment may be made at that place on the next
succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening
period.

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          SECTION 14.9.   Governing Law. THIS INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. EACH OF THE PARTIES HERETO AGREES
TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK OVER ANY SUIT, ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE OR THE NOTES.

          SECTION 14.10.   No Adverse Interpretation of Other Agreements. This Indenture may
not be used to interpret another indenture, loan, security or debt agreement of the Company or any
Subsidiary thereof. No such indenture, loan, security or debt agreement may be used to interpret
this Indenture.

          SECTION 14.11.   No Recourse Against Others. No recourse for the payment of the
principal of or premium, if any, or interest on any of the Notes, or for any claim based thereon or
otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement
of the Company or any Guarantor in this Indenture or in any supplemental indenture or Foreign
Subsidiary Guarantee, or in any of the Notes or the Guarantees, or because of the creation of any
Indebtedness represented thereby, shall be had against any stockholder, officer, director, partner,
affiliate, beneficiary or employee, as such, past, present or future, of the Company or any
Guarantor, or of any successor corporation thereof, or against the property or assets of any such
stockholder, officer, employee, partner, affiliate, beneficiary or director, either directly or
through the Company or any Guarantor, or any successor corporation thereof, whether by virtue of
any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or
otherwise; it being expressly understood that this Indenture, any supplemental indenture, any
Foreign Subsidiary Guarantee, the Notes and the Guarantees are solely obligations of the Company
and the Guarantors, as the case may be, and that no such personal liability whatever shall attach
to, or is or shall be incurred by, any stockholder, officer, employee, partner, affiliate,
beneficiary or director, as such, of the Company or any Guarantor, or any successor corporation
thereof, because of the creation of the indebtedness hereby authorized, or under or by reason of
the obligations, covenants or agreements contained in this Indenture, any supplemental indenture,
any Foreign Subsidiary Guarantee, the Notes or the Guarantees or implied therefrom, and that any
and all such personal liability of, and any and all claims against every stockholder, officer,
employee, partner, affiliate, beneficiary and director, as such, are hereby expressly waived and
released as a condition of, and as a consideration for, the execution of this Indenture any
supplemental indenture, any Foreign Subsidiary Guarantee and the issuance of the Notes. Such
waiver may not be effective to waive liabilities under federal securities laws and it is the view
of the SEC that such waiver is against public policy. It is understood that this limitation on
recourse is made expressly for the benefit of any such stockholder, employee, officer, partner,
affiliate, beneficiary or director and may be enforced by any one or all of them.

          SECTION 14.12.   Successors. All agreements of the Company and the Guarantors in this
Indenture and the Notes shall bind their respective successors. All agreements of the Trustee, any
additional trustee and any Paying Agents in this Indenture shall bind their respective successors.

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          SECTION 14.13.   Multiple Counterparts. The parties may sign multiple counterparts of
this Indenture. Each signed counterpart shall be deemed an original, but all of them together
represent one and the same agreement.

          SECTION 14.14.   Table of Contents, Headings, etc. The table of contents,
cross-reference sheet and headings of the Articles and Sections of this Indenture have been
inserted for convenience of reference only, are not to be considered a part hereof, and shall in no
way modify or restrict any of the terms or provisions hereof.

          SECTION 14.15.   Separability. Each provision of this Indenture shall be considered
separable and if for any reason any provision which is not essential to the effectuation of the
basic purpose of this Indenture or the Notes shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

[The remainder of this page is intentionally left blank]

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

	 	 	 	 	 
	 	FEDERAL-MOGUL CORPORATION, as the 
Issuer

 	 
	 	By:  	/s/ David A. Bozynski
 	 
	 	 	Name:  	David A. Bozynski 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	On behalf of each entity named on the attached
Schedule 1

 	 
	 	By:  	/s/ David A. Bozynski
 	 
	 	 	Name:  	David A. Bozynski 	 
	 	 	As a duly authorized signatory 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION, as the 
Trustee

 	 
	 	By:  	/s/ Richard Prokosch
 	 
	 	 	Name:  	Richard Prokosch 	 
	 	 	Title:  	Vice President 	 
	 

121

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