Document:

Exhibit
4.2

 

 

REDDY ICE CORPORATION,

 

as Company

 

REDDY ICE HOLDINGS, INC.,

 

as Parent

 

and the Subsidiary Guarantors party hereto

 

13.25% Senior Secured Notes due 2015

 

 

INDENTURE

 

Dated as of March 15, 2010

 

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

 

as Trustee

 

and

 

as Collateral Agent

 

 

 

CROSS-REFERENCE TABLE

 

	
  TIA
  Section

  	
   

  	
  Indenture Section

  
	
  303

  	
   

  	
  1.4

  
	
  310(a)(1)

  	
   

  	
  7.9

  
	
  (a)(2)

  	
   

  	
  7.9

  
	
  (a)(3)

  	
   

  	
  N.A.

  
	
  (a)(4)

  	
   

  	
  N.A.

  
	
  (a)(5)

  	
   

  	
  7.9

  
	
  (b)

  	
   

  	
  7.9

  
	
  (c)

  	
   

  	
  N.A.

  
	
  311(a)

  	
   

  	
  7.11

  
	
  (b)

  	
   

  	
  7.11

  
	
  (c)

  	
   

  	
  N.A.

  
	
  312(a)

  	
   

  	
  2.5

  
	
  (b)

  	
   

  	
  12.18

  
	
  (c)

  	
   

  	
  12.18

  
	
  313(a)

  	
   

  	
  7.12

  
	
  (b)

  	
   

  	
  7.12

  
	
  (b)(1)

  	
   

  	
  7.12

  
	
  (b)(2)

  	
   

  	
  7.6;
  7.12

  
	
  (c)

  	
   

  	
  7.12;
  12.1

  
	
  (d)

  	
   

  	
  7.12

  
	
  314(a)

  	
   

  	
  5.3;
  12.3

  
	
  (a)(1)

  	
   

  	
  6.2

  
	
  (a)(4)

  	
   

  	
  3.12;
  12.3

  
	
  (b)

  	
   

  	
  N.A.

  
	
  (c)(1)

  	
   

  	
  12.2

  
	
  (c)(2)

  	
   

  	
  12.2

  
	
  (c)(3)

  	
   

  	
  N.A.

  
	
  (d)

  	
   

  	
  N.A.

  
	
  (e)

  	
   

  	
  12.2;
  12.3

  
	
  (f)

  	
   

  	
  N.A.

  
	
  315(a)

  	
   

  	
  7.1(b);
  7.2

  
	
  (b)

  	
   

  	
  7.5;
  12.1

  
	
  (c)

  	
   

  	
  7.1(a)

  
	
  (d)

  	
   

  	
  7.1(c)

  
	
  (e)

  	
   

  	
  6.11

  
	
  316(a) (last
  sentence)

  	
   

  	
  2.16

  
	
  (a)(1)(A)

  	
   

  	
  6.5

  
	
  (a)(1)(B)

  	
   

  	
  6.4

  
	
  (a)(2)

  	
   

  	
  N.A.

  
	
  (b)

  	
   

  	
  6.7

  
	
  (c)

  	
   

  	
  2.17

  
	
  317(a)(1)

  	
   

  	
  6.8

  
	
  (a)(2)

  	
   

  	
  6.9

  
	
  (b)

  	
   

  	
  2.4

  
	
  318(a)

  	
   

  	
  12.17

  
	
  (c)

  	
   

  	
  12.17

  

 

N.A.
means Not Applicable.

Note:  This
Cross-Reference Table shall not, for any purposes, be deemed to be part hereof.

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  
	
  ARTICLE I

  
	
   

  
	
  Definitions and Incorporation by Reference

  
	
   

  
	
  SECTION 1.1.

  	
  Definitions

  	
  1

  
	
  SECTION 1.2.

  	
  Other
  Definitions

  	
  30

  
	
  SECTION 1.3.

  	
  Rules of
  Construction

  	
  31

  
	
  SECTION 1.4.

  	
  Incorporation
  by Reference of Trust Indenture Act

  	
  32

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  
	
   

  	
   

  	
   

  
	
  The Notes

  
	
   

  	
   

  	
   

  
	
  SECTION 2.1.

  	
  Form and
  Dating

  	
  32

  
	
  SECTION 2.2.

  	
  Form of
  Execution and Authentication

  	
  34

  
	
  SECTION 2.3.

  	
  Registrar
  and Paying Agent

  	
  35

  
	
  SECTION 2.4.

  	
  Paying
  Agent to Hold Money in Trust

  	
  35

  
	
  SECTION 2.5.

  	
  Lists
  of Holders of the Notes

  	
  36

  
	
  SECTION 2.6.

  	
  Transfer
  and Exchange

  	
  36

  
	
  SECTION 2.7.

  	
  Replacement
  Notes

  	
  45

  
	
  SECTION 2.8.

  	
  Outstanding
  Notes

  	
  46

  
	
  SECTION 2.9.

  	
  Treasury
  Notes

  	
  46

  
	
  SECTION 2.10.

  	
  Temporary
  Notes

  	
  46

  
	
  SECTION 2.11.

  	
  Cancellation

  	
  46

  
	
  SECTION 2.12.

  	
  Payment
  of Interest; Defaulted Interest

  	
  47

  
	
  SECTION 2.13.

  	
  CUSIP
  Numbers

  	
  48

  
	
  SECTION 2.14.

  	
  Reserved

  	
  48

  
	
  SECTION 2.15.

  	
  Record
  Date

  	
  48

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
   

  
	
  Covenants

  
	
   

  
	
  SECTION 3.1.

  	
  Payment
  of Notes

  	
  48

  
	
  SECTION 3.2.

  	
  SEC
  Reports

  	
  48

  
	
  SECTION 3.3.

  	
  Limitation
  on Indebtedness

  	
  49

  
	
  SECTION 3.4.

  	
  Limitation
  on Restricted Payments

  	
  52

  
	
  SECTION 3.5.

  	
  Limitation
  on Liens

  	
  56

  
	
  SECTION 3.6.

  	
  Limitation
  on Restrictions on Distributions from Restricted Subsidiaries

  	
  56

  
	
  SECTION 3.7.

  	
  Limitation
  on Sales of Assets and Subsidiary Stock

  	
  58

  
	
  SECTION 3.8.

  	
  Limitation
  on Affiliate Transactions

  	
  60

  
	
  SECTION 3.9.

  	
  Change
  of Control

  	
  61

  
	
  SECTION 3.10.

  	
  Maintenance
  of Properties

  	
  63

  
	
  SECTION 3.11.

  	
  Additional
  Subsidiary Guarantees; Insurance

  	
  63

  
	
  SECTION 3.12.

  	
  Limitation
  on Line of Business

  	
  64

  

 

i

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 3.13.

  	
  Compliance
  Certificate

  	
  64

  
	
  SECTION 3.14.

  	
  Statement
  by Officers as to Default

  	
  64

  
	
  SECTION 3.15.

  	
  Post-Closing
  Obligations and After-Acquired Collateral

  	
  64

  
	
  SECTION 3.16.

  	
  Limitation
  on Sales or Issuances of Capital Stock of Restricted Subsidiaries

  	
  65

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  	
   

  	
   

  
	
  Successor Company and Successor Guarantor

  
	
   

  	
   

  	
   

  
	
  SECTION 4.1.

  	
  When
  Company May Merge or Otherwise Dispose of Assets

  	
  66

  
	
  SECTION 4.2.

  	
  When
  Parent or a Subsidiary Guarantor May Merge or Otherwise Dispose of
  Assets

  	
  67

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  
	
   

  
	
  Redemption of Notes

  
	
   

  
	
  SECTION 5.1.

  	
  Optional
  Redemption

  	
  69

  
	
  SECTION 5.2.

  	
  Election
  to Redeem; Notice to Trustee of Optional and Mandatory Redemptions

  	
  70

  
	
  SECTION 5.3.

  	
  Selection
  by Trustee of Notes to Be Redeemed

  	
  70

  
	
  SECTION 5.4.

  	
  Notice
  of Redemption

  	
  70

  
	
  SECTION 5.5.

  	
  Deposit
  of Redemption Price

  	
  71

  
	
  SECTION 5.6.

  	
  Notes
  Payable on Redemption Date

  	
  71

  
	
  SECTION 5.7.

  	
  Notes
  Redeemed in Part

  	
  72

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  
	
  Defaults and Remedies

  
	
   

  
	
  SECTION 6.1.

  	
  Events
  of Default

  	
  72

  
	
  SECTION 6.2.

  	
  Acceleration

  	
  75

  
	
  SECTION 6.3.

  	
  Other
  Remedies

  	
  75

  
	
  SECTION 6.4.

  	
  Waiver
  of Past Defaults

  	
  75

  
	
  SECTION 6.5.

  	
  Control
  by Majority

  	
  75

  
	
  SECTION 6.6.

  	
  Limitation
  on Suits

  	
  76

  
	
  SECTION 6.7.

  	
  Rights
  of Holders to Receive Payment

  	
  76

  
	
  SECTION 6.8.

  	
  Collection
  Suit by Trustee

  	
  76

  
	
  SECTION 6.9.

  	
  Trustee
  May File Proofs of Claim

  	
  76

  
	
  SECTION 6.10.

  	
  Priorities

  	
  77

  
	
  SECTION 6.11.

  	
  Undertaking
  for Costs

  	
  77

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  
	
   

  
	
  Trustee

  
	
   

  	
   

  	
   

  
	
  SECTION 7.1.

  	
  Duties
  of Trustee and Collateral Agent

  	
  77

  

 

ii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 7.2.

  	
  Rights
  of Trustee and Collateral Agent

  	
  79

  
	
  SECTION 7.3.

  	
  Individual
  Rights of Trustee and Collateral Agent

  	
  80

  
	
  SECTION 7.4.

  	
  Disclaimer

  	
  80

  
	
  SECTION 7.5.

  	
  Notice
  of Defaults

  	
  81

  
	
  SECTION 7.6.

  	
  Compensation
  and Indemnity

  	
  81

  
	
  SECTION 7.7.

  	
  Replacement
  of Trustee

  	
  82

  
	
  SECTION 7.8.

  	
  Successor
  Trustee by Merger

  	
  82

  
	
  SECTION 7.9.

  	
  Eligibility;
  Disqualification

  	
  83

  
	
  SECTION 7.10.

  	
  Limitation on Duty of Trustee and Collateral Agent
  in Respect of Collateral; Indemnification

  	
  83

  
	
  SECTION 7.11.

  	
  Preferential
  Collection of Claims Against Company

  	
  83

  
	
  SECTION 7.12.

  	
  Reports
  by Trustee to Holders of the Notes

  	
  83

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  
	
   

  
	
  Discharge of Indenture; Defeasance

  
	
   

  
	
  SECTION 8.1.

  	
  Discharge
  of Liability on Notes; Defeasance

  	
  84

  
	
  SECTION 8.2.

  	
  Conditions
  to Defeasance

  	
  85

  
	
  SECTION 8.3.

  	
  Application
  of Trust Money

  	
  86

  
	
  SECTION 8.4.

  	
  Repayment
  to Company

  	
  86

  
	
  SECTION 8.5.

  	
  Indemnity
  for U.S. Government Obligations

  	
  86

  
	
  SECTION 8.6.

  	
  Reinstatement

  	
  86

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  
	
   

  
	
  Amendments

  
	
   

  
	
  SECTION 9.1.

  	
  Without
  Consent of Holders

  	
  86

  
	
  SECTION 9.2.

  	
  With
  Consent of Holders

  	
  88

  
	
  SECTION 9.3.

  	
  Effect
  of Consents and Waivers

  	
  89

  
	
  SECTION 9.4.

  	
  Notation
  on or Exchange of Notes

  	
  89

  
	
  SECTION 9.5.

  	
  Trustee
  and Collateral Agent To Sign Amendments

  	
  89

  
	
  SECTION 9.6.

  	
  Compliance
  with Trust Indenture Act

  	
  89

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  
	
   

  
	
  Guarantees

  
	
   

  
	
  SECTION 10.1.

  	
  Guarantees

  	
  89

  
	
  SECTION 10.2.

  	
  Limitation
  on Liability; Termination, Release and Discharge

  	
  91

  
	
  SECTION 10.3.

  	
  Right
  of Contribution

  	
  92

  
	
  SECTION 10.4.

  	
  No
  Subrogation

  	
  92

  

 

iii

 

	
   

  	
   

  	
  Page

  
	
   

  
	
  ARTICLE XI

  
	
   

  
	
  Collateral and Security

  
	
   

  
	
  SECTION 11.1.

  	
  The
  Collateral

  	
  93

  
	
  SECTION 11.2.

  	
  Further
  Assurances

  	
  93

  
	
  SECTION 11.3.

  	
  Release
  of Liens on the Collateral

  	
  94

  
	
  SECTION 11.4.

  	
  Authorization of Actions to Be Taken by the
  Trustee or the Collateral Agent Under the Collateral Documents

  	
  95

  
	
  SECTION 11.5.

  	
  Recording,
  Registration and Opinions

  	
  96

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII

  
	
   

  
	
  Miscellaneous

  
	
   

  
	
  SECTION 12.1.

  	
  Notices

  	
  97

  
	
  SECTION 12.2.

  	
  Certificate
  and Opinion as to Conditions Precedent

  	
  98

  
	
  SECTION 12.3.

  	
  Statements
  Required in Certificate or Opinion

  	
  98

  
	
  SECTION 12.4.

  	
  When
  Notes Disregarded

  	
  98

  
	
  SECTION 12.5.

  	
  Rules by
  Trustee, Paying Agent and Registrar

  	
  98

  
	
  SECTION 12.6.

  	
  Days
  Other than Business Days

  	
  99

  
	
  SECTION 12.7.

  	
  Governing
  Law

  	
  99

  
	
  SECTION 12.8.

  	
  Waiver
  of Jury Trial

  	
  99

  
	
  SECTION 12.9.

  	
  No
  Recourse Against Others

  	
  99

  
	
  SECTION 12.10.

  	
  Successors

  	
  99

  
	
  SECTION 12.11.

  	
  Multiple
  Originals

  	
  99

  
	
  SECTION 12.12.

  	
  Variable
  Provisions

  	
  99

  
	
  SECTION 12.13.

  	
  Table
  of Contents; Headings

  	
  99

  
	
  SECTION 12.14.

  	
  Direction
  by Holders to Enter into Collateral Documents and the Intercreditor Agreement

  	
  99

  
	
  SECTION 12.15.

  	
  Force
  Majeure

  	
  99

  
	
  SECTION 12.16.

  	
  USA
  Patriot Act

  	
  100

  
	
  SECTION 12.17.

  	
  Trust
  Indenture Act Controls

  	
  100

  
	
  SECTION 12.18.

  	
  Communication
  by Holders of Notes with Other Holders of Notes

  	
  100

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  
	
   

  
	
  ANNEX
  A

  	
  Mortgaged
  Property

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT
  A

  	
  Form of
  Note

  	
   

  
	
  EXHIBIT
  B

  	
  Form of
  Certificate of Transfer

  	
   

  
	
  EXHIBIT
  C

  	
  Form of
  Certificate of Exchange

  	
   

  
	
  EXHIBIT D

  	
  Form of
  Certificate of Acquiring Institutional Accredited Investor

  	
   

  
	
  EXHIBIT E

  	
  Form of
  Mortgage

  	
   

  
				

 

iv

 

 

INDENTURE, dated as of March 15,
2010 (this “Indenture”), among REDDY ICE CORPORATION, a corporation duly
organized and existing under the laws of the State of Nevada (the “Company”),
REDDY ICE HOLDINGS, INC. (“Parent”), certain subsidiaries of the Company
from time to time parties hereto (the “Subsidiary Guarantors”) and WELLS
FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as trustee
(in such capacity, the “Trustee”) and as collateral agent (in such
capacity, the “Collateral Agent”).

 

Recitals
of the Company

 

Each party agrees as follows
for the benefit of the other parties and for the equal and ratable benefit of
the Holders of the Notes:

 

ARTICLE I

 

Definitions
and Incorporation by Reference

 

SECTION 1.1.              Definitions.

 

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

 

“Additional First Lien
Indebtedness” means Indebtedness permitted to be incurred under Section 3.3
hereof and under the Credit Agreement which is by its terms intended to be
secured on a pari passu basis
with the Liens securing the Credit Agreement and the First Lien Notes.

 

“Additional Pari Passu
Lien Indebtedness” means Indebtedness permitted to be incurred under Section 3.3
hereof which is by its terms intended to be secured on a pari passu basis with the Liens securing
the Notes; provided such Lien is
permitted to be incurred under this Indenture and such Indebtedness has a
Stated Maturity that is no earlier than the Stated Maturity of the Notes.

 

“Affiliate” of any
specified Person means any other Person directly or indirectly controlling or
controlled by or under direct or indirect common control with such specified
Person.  For the purposes of this
definition, “control” when used with respect to any Person means the
power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise; and the terms “controlling” and “controlled” have
meanings correlative to the foregoing. 
For purposes of Sections 3.4, 3.7 and 3.8, as
applicable, only, “Affiliate” shall also mean any beneficial owner of Capital
Stock representing 10% or more of the total voting power of the Voting Stock
(on a fully diluted basis) of the Company or of rights or warrants to purchase
such Capital Stock (whether or not currently exercisable) and any Person who
would be an Affiliate of any such beneficial owner pursuant to the first
sentence hereof.

 

“Agent” means any
Registrar, Paying Agent or co-registrar.

 

“IAI Global Note”
means a Global Note substantially in the form of Exhibit A hereto bearing
the Global Note Legend and the Private Placement Legend and deposited with or
on behalf of, and registered in the name of, the Depositary or its nominee that
will be issued in a denomination equal to the outstanding principal amount of
the Notes sold to Institutional Accredited Investors.

 

 

“Applicable Premium”
means, as determined by the Company with respect to a Note on any Redemption
Date, the greater of:

 

(1)           1.0% of the principal amount
of such Note; and

 

(2)           the excess, if any, of (a) the
present value as of such Redemption Date of (i) the redemption price of
such Note on March 1, 2013 as set forth in Section 5.1(a),
plus (ii) the remaining scheduled interest payments due on such Note
through March 1, 2013 (excluding accrued but unpaid interest to the
Redemption Date), computed using a discount rate equal to the Treasury Rate as
of such Redemption Date plus 50 basis points, over (b) the then
outstanding principal of such Note.

 

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

 

“Asset Disposition”
means with respect to any Person (the “Specified Person”) any sale,
lease, issuance, transfer or other disposition (or series of related sales,
leases, transfers or dispositions) by the Specified Person or any Restricted
Subsidiary of the Specified Person, including any disposition by means of a
merger, consolidation or similar transaction (each referred to for the purposes
of this definition as a “disposition”) of:

 

(1)           any shares of Capital Stock
of a Restricted Subsidiary of the Specified Person (other than directors’
qualifying shares or shares required by applicable law to be held by a Person
other than the Specified Person or a Restricted Subsidiary of the Specified
Person);

 

(2)           all or substantially all the
assets of any division or line of business of the Specified Person or any
Restricted Subsidiary of the Specified Person; or

 

(3)           any other assets of the
Specified Person or any Restricted Subsidiary of the Specified Person outside
of the ordinary course of business of the Specified Person or such Restricted
Subsidiary of the Specified Person.

 

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

 

(1)           a disposition by a
Restricted Subsidiary of the Specified Person to the Specified Person or by the
Specified Person or a Restricted Subsidiary of the Specified Person to a
Restricted Subsidiary of the Specified Person;

 

(2)           for purposes of Section 3.7
only, (x) a disposition that constitutes a Restricted Payment (or would
constitute a Restricted Payment but for the exclusions from the definition
thereof) and that is not prohibited by Section 3.4 and (y) a
disposition of all or substantially all the assets of the Specified Person in
accordance with the Section 4.1, as applicable;

 

(3)           a disposition of assets in
any transaction or series of related transactions where such assets have an
aggregate Fair Market Value of less than $2.0 million;

 

2

 

(4)           a disposition of cash or
Temporary Cash Investments;

 

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

 

(6)           the sale or disposition in
the ordinary course of business of obsolete, damaged or worn out assets no
longer used or useful to the business of the Company and its Restricted
Subsidiaries;

 

(7)           the sale or discount, in
each case without recourse, of accounts receivable arising in the ordinary
course of business, but only in connection with the compromise or collection
thereof;

 

(8)           the grant in the ordinary
course of business of any non-exclusive license of patents, trademarks,
registrations thereof and other similar intellectual property;

 

(9)           any release of intangible
claims or rights in connection with the loss or settlement of a bona fide
lawsuit, dispute or other controversy;

 

(10)         leases or subleases in the
ordinary course of business to third persons not interfering in any material
respect with the business of the Specified Person or any of its Restricted
Subsidiaries;

 

(11)         any disposition of
receivables, equipment and related assets (including contract rights of the
type described in the definition of “Qualified Securitization Transaction”) to
a Securitization Entity pursuant to a Qualified Securitization Transaction for
the Fair Market Value thereof, including cash and Temporary Cash Investments in
an amount at least equal to 75% of the Fair Market Value thereof (for purposes
of this clause (11), Purchase Money Notes shall be deemed to be cash); and

 

(12)         any transfer of receivables,
equipment and related assets (including contract rights of the type described
in the definition of “Qualified Securitization Transaction”), or a fractional
undivided interest therein, by a Securitization Entity in a Qualified
Securitization Transaction.

 

“Attributable Debt”
in respect of a Sale/Leaseback Transaction means, as at the time of
determination, the present value (discounted at the rate of interest implied in
such transaction) of the total obligations of the lessee for rental payments
during the remaining term of the lease included in such Sale/Leaseback
Transaction (including any period for which such lease has been extended); provided, however,
that if such Sale/Leaseback Transaction results in a Capital Lease Obligation,
the amount of Indebtedness represented thereby shall be determined in
accordance with the definition of “Capital Lease Obligation.”

 

“Average Life” means,
as of the date of determination, with respect to any Indebtedness, the quotient
obtained by dividing (1) the sum of the products of the numbers of years from
the date of determination to the dates of each successive scheduled principal
payment of or redemption or similar payment with respect to such Indebtedness
multiplied by the amount of such payment by (2) the sum of all such
payments.

 

3

 

“Board of Directors”
with respect to a Person means the Board of Directors of such Person or any
committee thereof duly authorized to act on behalf of such Board.

 

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

 

“Broker-Dealer” means
any broker or dealer registered under the Exchange Act.

 

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

 

“Capital Lease Obligation”
means an obligation that is required to be classified and accounted for as a
capital lease for financial reporting purposes in accordance with GAAP, and the
amount of Indebtedness represented by such obligation shall be the capitalized
amount of such obligation determined in accordance with GAAP; and the Stated
Maturity thereof shall be the date of the last payment of rent or any other
amount due under such lease prior to the first date upon which such lease may
be terminated by the lessee without payment of a penalty.

 

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

 

“Cash Management
Obligations” means obligations owed by the Company or any Subsidiary
Guarantor to Person who was a lender or Affiliate of a lender at the time of
entry of such obligations under the Credit Agreement in respect of any
overdraft and related liabilities arising from treasury, depository, credit and
debit card and cash management services or any automated clearing house
transfers of funds.

 

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

 

(i)         any “person”
(as such term is used in Sections 13(d) and 14(d) of the
Exchange Act) is or becomes the beneficial owner (as defined in Rules 13d-3
and 13d-5 under the Exchange Act, except that for purposes of this clause (i) such
person shall be deemed to have “beneficial ownership” of all shares that any
such person has the right to acquire, whether such right is exercisable
immediately or only after the passage of time), directly or indirectly, of more
than 50% of the total voting power of the Voting Stock of Parent; provided, however,
that for the purposes of this clause (i), such other person shall be
deemed to beneficially own any Voting Stock of a Person held by any other
Person (the “parent entity”), if such other person is the beneficial
owner (as defined above in this clause (i)), directly or indirectly, of
more than 50% of the voting power of the Voting Stock of such parent entity;

 

(ii)        individuals who
on the Issue Date constituted the Board of Directors of the Company or the
Board of Directors of Parent (the “Parent Board”) (together with any new
directors whose election by such Board of Directors of the Company or Parent
Board or whose nomination for election by the shareholders of the Company or
Parent, as the case may be, was approved by a vote of a majority of the
directors of the Company or Parent, as the case may be, then still in office
who were either directors on the Issue Date or whose election or nomination for
election was previously so approved) 

 

4

 

cease
for any reason to constitute a majority of the Board of Directors of the
Company or the Parent Board then in office;

 

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

 

(iv)       the failure at any time by
Parent to beneficially own (as defined in Rules 13d-3 and 13d-5 under the
Exchange Act), directly or indirectly, 100% of the Voting Stock of the Company
(except to the extent Parent is merged with and into the Company in accordance
with the terms of this Indenture).

 

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

 

“Collateral” means
all property and assets, whether now owned or hereafter acquired, in which
Liens are, from time to time, purported to be granted to secure the Notes and
the Guarantees pursuant to the Collateral Documents.

 

“Collateral Agent”
means Wells Fargo Bank, National Association, acting in its capacity as
collateral agent under the Collateral Documents, or any successor thereto.

 

“Collateral Documents”
means the Security Agreement, each mortgage and any other instruments and
documents executed and delivered pursuant to this Indenture or any of the
foregoing, as the same may be amended, supplemented or otherwise modified from
time to time and pursuant to which Collateral is pledged, assigned or granted
to or on behalf of the Collateral Agent for the benefit of the Secured Parties.

 

“Commodity Agreement”
means any forward contract, commodity swap, commodity option or other similar
financial agreement or arrangement relating to, or the value of which is
dependent upon, fluctuations in commodity prices.

 

“Company” has the
meaning set forth in the preamble hereto.

 

“Company Order” means
a written request or order signed in the name of the Company by any Officer.

 

“Consolidated Coverage
Ratio” with respect to any Person (the “Specified Person”) as of any
date of determination means the ratio of (x) the aggregate amount of
EBITDA of the Specified Person and its Restricted Subsidiaries for the period
of the most recent four consecutive fiscal quarters ending on or prior to such
date of determination for which internal financial statements are available to (y) Consolidated
Interest Expense of the Specified Person and its Restricted Subsidiaries for
such four fiscal quarters; provided,
however, that:

 

(1)           if the Specified Person or
any of its Restricted Subsidiaries has Incurred any Indebtedness since the
beginning of such period that remains outstanding or if the transaction giving
rise to the need to calculate the Consolidated Coverage Ratio is an Incurrence
of Indebtedness, or both, EBITDA and Consolidated Interest Expense for such
period shall be calculated after giving effect on a pro forma basis to such
Indebtedness as if such Indebtedness had been Incurred on the first day of such
period;

 

5

 

(2)           if the Specified Person or
any of its Restricted Subsidiaries has repaid, repurchased, defeased or
otherwise discharged any Indebtedness since the beginning of such period or if
any Indebtedness is to be repaid, repurchased, defeased or otherwise discharged
(in each case other than Indebtedness Incurred under any revolving credit
facility unless such Indebtedness has been permanently repaid and has not been
replaced) on the date of the transaction giving rise to the need to calculate
the Consolidated Coverage Ratio, EBITDA and Consolidated Interest Expense for
such period shall be calculated on a pro forma basis as if such discharge had
occurred on the first day of such period and as if the Specified Person or such
Restricted Subsidiary had not earned the interest income actually earned during
such period in respect of cash or Temporary Cash Investments used to repay,
repurchase, defease or otherwise discharge such Indebtedness;

 

(3)           if since the beginning of
such period the Specified Person or any of its Restricted Subsidiaries shall
have made any Asset Disposition, EBITDA for such period shall be reduced by an
amount equal to EBITDA (if positive) directly attributable to the assets which
were the subject of such Asset Disposition for such period, or increased by an
amount equal to EBITDA (if negative), directly attributable thereto for such
period and Consolidated Interest Expense for such period shall be reduced by an
amount equal to the Consolidated Interest Expense directly attributable to any
Indebtedness of the Specified Person or any of its Restricted Subsidiaries
repaid, repurchased, defeased or otherwise discharged with respect to the
Specified Person and its continuing Restricted Subsidiaries in connection with
such Asset Disposition for such period (or, if the Capital Stock of any of its
Restricted Subsidiaries is sold, the Consolidated Interest Expense for such
period directly attributable to the Indebtedness of such Restricted Subsidiary
to the extent the Specified Person and its continuing Restricted Subsidiaries
are no longer liable for such Indebtedness after such sale);

 

(4)           if since the beginning of
such period the Specified Person or any of its Restricted Subsidiaries (by
merger or otherwise) shall have made an Investment in any Restricted Subsidiary
of the Specified Person (or any person which becomes a Restricted Subsidiary of
the Specified Person) or an acquisition of assets, including any acquisition of
assets occurring in connection with a transaction requiring a calculation to be
made hereunder, which constitutes all or substantially all of an operating unit
of a business, EBITDA and Consolidated Interest Expense for such period shall
be calculated after giving pro forma effect thereto (including the Incurrence
of any Indebtedness) as if such Investment or acquisition had occurred on the
first day of such period; and

 

(5)           if since the beginning of
such period any Person (that subsequently became a Restricted Subsidiary of the
Specified Person or was merged with or into the Specified Person or any of its
Restricted Subsidiaries since the beginning of such period) shall have made any
Asset Disposition, any Investment or acquisition of assets that would have
required an adjustment pursuant to clause (3) or (4) above if
made by the Specified Person or a Restricted Subsidiary of the Specified Person
during such period, EBITDA and Consolidated Interest Expense for such period
shall be calculated after giving pro forma effect thereto as if such Asset
Disposition, Investment or acquisition occurred on the first day of such
period.

 

For purposes of this
definition, whenever pro forma effect is to be given to an acquisition of
assets, the amount of income or earnings relating thereto and the amount of
Consolidated Interest Expense associated with any Indebtedness Incurred in
connection therewith, the pro forma calculations shall be determined in good
faith by a responsible financial or accounting Officer of the Specified Person
(and, to the extent applicable, may include any pro forma expense and cost
reductions recognizable within 12-

 

6

 

months of the acquisition of such assets; provided that the Company reasonably
believes that such expense and cost reductions could be achieved within such
12-month period as a result of such acquisition and such reductions are
identified and quantified in an Officers’ Certificate delivered to the Trustee
on or prior to the date of such acquisition). 
If any Indebtedness bears a floating rate of interest and is being given
pro forma effect, the interest on such Indebtedness shall be calculated as if
the rate in effect on the date of determination had been the applicable rate
for the entire period (taking into account any Interest Rate Agreement
applicable to such Indebtedness to the extent such Interest Rate Agreement has
a remaining term that includes some or all of the 12-month period of the date
of determination).  If any Indebtedness
is incurred under a revolving credit facility and is being given pro forma
effect, the interest on such Indebtedness shall be calculated based on the
average daily balance of such Indebtedness for the four fiscal quarters subject
to the pro forma calculation (but, in the case of any revolving credit facility
incurred other than pursuant to Section 3.3(b)(i) hereof, only
to the extent such Indebtedness is incurred solely for working capital purposes
or other general corporate purposes in the ordinary course of business and not,
in any case, to support directly or indirectly any acquisitions).

 

“Consolidated Interest
Expense” means, with respect to any Person (the “Specified Person”)
for any period, the total interest expense of the Specified Person and its
consolidated Restricted Subsidiaries, plus, to the extent not included in such
total interest expense, and to the extent incurred by the Specified Person or
its Restricted Subsidiaries, without duplication:

 

(1)           interest expense
attributable to Capital Lease Obligations;

 

(2)           amortization of debt
discount and debt issuance cost;

 

(3)           capitalized interest;

 

(4)           non-cash interest expense;

 

(5)           commissions, discounts and
other fees and charges owed with respect to letters of credit and bankers’
acceptance financing;

 

(6)           net payments pursuant to
Hedging Obligations with respect to Interest Rate Agreements;

 

(7)           dividends accrued in respect
of all Disqualified Stock of the Specified Person or Preferred Stock of a
Restricted Subsidiary of the Specified Person held by Persons other than the
Specified Person or a Restricted Subsidiary of the Specified Person (other than
dividends payable solely in Capital Stock (other than Disqualified Stock) of
the Specified Person); provided, however, that such dividends shall be
multiplied by a fraction the numerator of which is one and the denominator of
which is one minus the effective combined tax rate of the issuer of such
Preferred Stock (expressed as a decimal) for such period (as estimated by the
Chief Financial Officer of the Specified Person in good faith);

 

(8)           interest incurred in
connection with Investments in discontinued operations;

 

(9)           interest accruing on any
Indebtedness of any other Person to the extent such Indebtedness is Guaranteed
by (or secured by the assets of) the Specified Person or any Restricted
Subsidiary of the Specified Person; and

 

7

 

(10)         the cash contributions to
any employee stock ownership plan or similar trust to the extent such
contributions are used by such plan or trust to pay interest or fees to any
Person (other than the Specified Person) in connection with Indebtedness
Incurred by such plan or trust.

 

“Consolidated Net Income”
means, with respect to any Person (the “Specified Person”) for any
period, the net income of the Specified Person and its consolidated
Subsidiaries (other than non-controlling interests); provided, however,
that there shall not be included in such Consolidated Net Income:

 

(1)           any net income of any Person
(other than the Specified Person) if such Person is not a Restricted Subsidiary
of the Specified Person, except that:

 

(A)          subject to the exclusions
contained in clauses (4) and (6) below, the Specified Person’s
equity in the net income of any such Person for such period shall be included
in such Consolidated Net Income in an amount equal to the aggregate amount of
cash actually distributed by such Person during such period to the Specified
Person or a Restricted Subsidiary of the Specified Person as a dividend or
other distribution (subject, in the case of a dividend or other distribution
paid to a Restricted Subsidiary, to the limitations contained in clause (3) below);
and

 

(B)           the Specified Person’s
equity in a net loss of any such Person for such period shall be included in
determining such Consolidated Net Income;

 

(2)           any net income of any
Restricted Subsidiary of the Specified Person if such Restricted Subsidiary is
subject to restrictions, directly or indirectly, on the payment of dividends or
the making of distributions by such Restricted Subsidiary (other than any such
restriction that is permitted pursuant to Section 3.6 hereof),
directly or indirectly, to the Specified Person, except that:

 

(A)          subject to the exclusion
contained in clause (4) below, the net income of any such Restricted
Subsidiary for such period shall be included in such Consolidated Net Income in
an amount equal to the aggregate amount of cash actually distributed by such
Restricted Subsidiary during such period to the Specified Person or another
Restricted Subsidiary of the Specified Person as a dividend or other
distribution (subject, in the case of a dividend or other distribution paid to
another Restricted Subsidiary of the Specified Person, to the limitation
contained in this clause); and

 

(B)           the net loss of any such
Restricted Subsidiary for such period shall be included in determining such Consolidated
Net Income;

 

(3)           any gain (or loss) realized
upon the sale or other disposition of any assets of the Specified Person, its
consolidated Subsidiaries or any other Person (including pursuant to any
sale-and-leaseback arrangement) which are not sold or otherwise disposed of in
the ordinary course of business and any gain (or loss) realized upon the sale
or other disposition of any Capital Stock of any Person;

 

(4)           extraordinary gains or
losses;

 

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

 

8

 

(6)           any non-recurring fees,
charges or other expenses (including bonus and retention payments and severance
expenses) directly related to (x) the Transactions and (y) any
acquisitions, divestitures or similar transactions entered into after the Issue
Date;

 

(7)           fees, expenses and amounts
paid in defense of, or to discharge judgments, pursuant to settlements or as
fines or penalties arising from or related to, lawsuits, governmental
proceedings or regulatory actions or investigations in connection with the
pending Department of Justice investigation of Parent and its subsidiaries; and

 

(8)           the amount of any write-off
of deferred financing costs or of debt issuance costs and the amount of charges
related to any premium paid in connection with repurchasing Indebtedness, in
each case as a result of the Transactions.

 

Notwithstanding the
foregoing, for the purposes of Section 3.4 only, there shall be
excluded from Consolidated Net Income any repurchases, repayments or
redemptions of Investments, proceeds realized on the sale of Investments or
return of capital to the Specified Person or any of its Restricted Subsidiaries
to the extent such repurchases, repayments, redemptions, proceeds or returns
increase the amount of Restricted Payments permitted pursuant to
clause (a)(iii)(D) thereof.

 

“Corporate Trust Office”
shall be at the address of the Trustee specified in Section 12.1 or
such other address as to which the Trustee may give notice to the Company or Holders
pursuant to the procedures set forth in Section 12.1.

 

“Credit Agreement”
means the Credit Agreement dated as of the Issue Date, as amended to date,
among the Company, the guarantors party thereto, the several lenders from time
to time party thereto and J.P. Morgan Chase Bank, N.A., as administrative agent
and the other agents party thereto as such agreement may be amended (including
any amendment and restatement thereof), supplemented or otherwise modified from
time to time, including any agreement extending the maturity of, refinancing,
replacing, consolidating or otherwise restructuring all or any portion of the
Indebtedness under any such agreement or any successor or replacement agreement
and whether by the same or any other agent, lender or group of lenders and
whether or not increasing the amount of Indebtedness that may be incurred
thereunder; provided that any such amendment, supplement, modification,
refinancing, consolidating or restructuring of Indebtedness under such
agreement or successor replacement agreement may only provide for the making of
revolving loans and/or issuance of letters of credit.

 

“Currency Agreement”
means any foreign exchange contract, currency swap agreement or other similar
agreement with respect to currency values.

 

“Dealer Manager”
means Broadpoint Capital, Inc.

 

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

 

“Definitive Note”
means a certificated Note registered in the name of the Holder thereof and issued
in accordance with Section 2.6 hereof, substantially in the form of
Exhibit A hereto except that such Note shall not bear the Global
Note Legend and shall not have the “Schedule of Exchanges of Interests in the
Global Note” attached thereto.

 

9

 

 

“Depositary” means
The Depository Trust Company, its nominees and their respective successors and
assigns, or such other depository institution hereinafter appointed by the
Company.

 

“Disqualified Stock”
means, with respect to any Person, any Capital Stock that by its terms (or by
the terms of any security into which it is convertible or for which it is
exchangeable at the option of the holder) or upon the happening of any
event:  (1) matures or is
mandatorily redeemable (other than redeemable only for Capital Stock of such
Person which is not itself Disqualified Stock) pursuant to a sinking fund
obligation or otherwise; (2) is convertible or exchangeable at the option
of the holder for Indebtedness or Disqualified Stock; or (3) is
mandatorily redeemable or must be purchased upon the occurrence of any event,
in whole or in part, in each case on or prior to the first anniversary of the
Stated Maturity of the Notes; provided,
however, that any Capital Stock
that would not constitute Disqualified Stock but for provisions thereof giving
holders thereof the right to require such Person to purchase or redeem such
Capital Stock upon the occurrence of an “asset sale” or “change of control”
occurring prior to the first anniversary of the Stated Maturity of the Notes shall
not constitute Disqualified Stock if:

 

(1)           the “asset sale” or “change
of control” provisions applicable to such Capital Stock are not more favorable
to the holders of such Capital Stock than the terms applicable to the Notes and
described under Sections 3.7 and 3.9 hereof; and

 

(2)           any such requirement only
becomes operative after compliance with such terms applicable to the Notes
including the purchase of any Notes tendered pursuant thereto.

 

“EBITDA” with respect
to any Person (the “Specified Person”) for any period means the sum of
Consolidated Net Income of the Specified Person, plus the following to the
extent deducted in calculating such Consolidated Net Income:

 

(1)           all income tax expense of
the Specified Person and its consolidated Restricted Subsidiaries;

 

(2)           Consolidated Interest
Expense;

 

(3)           depreciation and
amortization expense of the Specified Person and its consolidated Restricted
Subsidiaries (excluding amortization expense attributable to a prepaid
operating activity item that was paid in cash in a prior period);

 

(4)           unrealized non-cash gains or
losses or non-cash charges in respect of Hedging Obligations required to be
taken under GAAP;

 

(5)           unrealized foreign currency
translation gains or losses;

 

(6)           all other non-cash charges
(including any goodwill impairment charges) of the Specified Person and its
consolidated Restricted Subsidiaries (excluding any such non-cash charge to the
extent that it represents an accrual of or reserve for cash expenditures in any
future period),

 

in each case for such period. Notwithstanding
the foregoing, the provision for taxes based on the income or profits of, and
the depreciation and amortization and non-cash charges of, a Restricted
Subsidiary of the Specified Person shall be added to Consolidated Net Income to
compute EBITDA only to the extent (and in the same proportion, including by
reason of minority interests) that the net income or loss of such 

 

10

 

Restricted Subsidiary was included in calculating
Consolidated Net Income in accordance with the definition of Consolidated Net
Income

 

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

 

“Exchange Notes”
means the debt securities of the Company issued in the Exchange Offer pursuant
to Section 2.6(i) hereof in exchange for, and in an aggregate
principal amount equal to, the Notes, in compliance with the terms of the
Registration Rights Agreement.

 

“Exchange Offer” has
the meaning set forth in the Registration Rights Agreement.

 

“Exchange Offer
Registration Statement” has the meaning set forth in the Registration
Rights Agreement.

 

“Excluded Property”
shall have the meaning set forth in Section 2.1 of the Security Agreement.

 

“Fair Market Value”
means, with respect to any asset, the price (after taking into account any
liabilities relating to such asset) that would be negotiated in an arm’s-length
transaction for cash between a willing seller and a willing and able buyer,
neither of which is under any compulsion to complete the transaction, as such
price is determined in good faith by management of the Company or by the Board
of Directors of the Company or a duly authorized committee thereof.  Fair Market Value (other than of any asset
with a public trading market) in excess of $5.0 million shall be
determined by the Board of Directors of the Company acting reasonably and in
good faith and shall be evidenced by a Board Resolution delivered to the
Trustee.

 

“Final Settlement Date”
has the meaning set forth in the Offering Circular.

 

“First Lien Collateral
Agents” shall mean the collateral agent for the lenders and other secured
parties under the Credit Agreement, the collateral agent for the trustee and
holders of First Lien Notes and the authorized representative of the holders of
any other class of First Lien Indebtedness that shall have executed a joinder
to the First Lien Intercreditor Agreement in the form provided therein.

 

“First Lien Indebtedness”
means (i) the First Lien Notes, (ii) the Credit Agreement and (iii) Additional
First Lien Indebtedness.

 

“First Lien Intercreditor
Agreement” means, that certain Intercreditor Agreement, dated as of the
Issue Date, among the First Lien Collateral Agents and acknowledged by Parent,
the Company and the Guarantors.

 

“First Lien Leverage Ratio”
means at the date of calculation, the ratio of (a) all Indebtedness of the
Company and its Restricted Subsidiaries that is secured by a Lien on any assets
of the Company and its Restricted Subsidiaries (other than Pari Passu Lien
Obligations and Junior Lien Obligations) on such date on a consolidated basis
in accordance with GAAP to (b) EBITDA of the Company and its Restricted
Subsidiaries for the period of the most recent four consecutive fiscal quarters
ending on or prior to such date of determination for which internal financial
statements are available. For purposes of making the computation referred to
above, EBITDA shall be calculated on a pro forma basis in accordance with the
definition of “Consolidated Coverage Ratio.”

 

11

 

“First Lien Notes”
means those notes issued by the Company with a first priority security interest
in the Collateral and any Refinancing Indebtedness Incurred to Refinance such
Indebtedness.

 

“First Lien Obligations”
means Priority Payment Lien Obligations and any other First Lien Indebtedness.

 

“Foreign Subsidiary”
means any Restricted Subsidiary of the Company that is not organized under the
laws of the United States of America or any State thereof or the District of
Columbia.

 

“GAAP” means
generally accepted accounting principles in the United States of America as in
effect as of the Issue Date, including those set forth in:

 

(1)           the opinions and
pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants;

 

(2)           statements and
pronouncements of the Financial Accounting Standards Board;

 

(3)           such other statements by
such other entity as approved by a significant segment of the accounting
profession; and

 

(4)           the rules and regulations
of the SEC governing the inclusion of financial statements (including pro forma
financial statements) in periodic reports required to be filed pursuant to Section 13
of the Exchange Act, including opinions and pronouncements in staff accounting
bulletins and similar written statements from the accounting staff of the SEC.

 

“Global Note Legend”
means the legend set forth in Section 2.1(b) hereof, which is
required to be placed on all Global Notes issued under this Indenture.

 

“Global Notes” means,
individually and collectively, each of the Restricted Global Notes and the
Unrestricted Global Notes, substantially in the form of Exhibit A
hereto issued in accordance with Section 2.1 or 2.6 hereof.

 

“Guarantee” means any
obligation, contingent or otherwise, of any Person, directly or indirectly,
guaranteeing any Indebtedness of any Person and any obligation, direct or
indirect, contingent or otherwise, of such Person:

 

(1)           to purchase or pay (or
advance or supply funds for the purchase or payment of) such Indebtedness of
such Person (whether arising by virtue of partnership arrangements, or by
agreements to keep-well, to purchase assets, goods, securities or services, to
take-or-pay, or to maintain financial statement conditions or otherwise); or

 

(2)           entered into for the purpose
of assuring in any other manner the obligee of such Indebtedness of the payment
thereof or to protect such obligee against loss in respect thereof (in whole or
in part); provided, however, that the term “Guarantee” shall
not include endorsements for collection or deposit in the ordinary course of
business.  The term “Guarantee” used as a
verb has a corresponding meaning.

 

“Guarantors” means
each of Parent and the Subsidiary Guarantors.

 

12

 

“Guaranty Agreement”
means a supplemental indenture, in a form satisfactory to the Trustee, pursuant
to which a Subsidiary Guarantor guarantees the Company’s obligations with
respect to the Notes on the terms provided for in this Indenture.

 

“Hedging Obligations”
of any Person means the obligations of such Person pursuant to any Interest
Rate Agreement, Currency Agreement, Commodity Agreement or derivative contract
entered into to hedge weather exposure.

 

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

 

“Incur” means issue,
assume, Guarantee, incur or otherwise become liable for; provided, however,
that any Indebtedness or Capital Stock of a Person existing at the time such
Person becomes a Restricted Subsidiary of the Company (whether by merger,
consolidation, acquisition or otherwise) shall be deemed to be Incurred by such
Person at the time it becomes a Restricted Subsidiary of the Company. The term
“Incurrence” when used as a noun shall have a correlative meaning.  Solely for purposes of determining compliance
with Section 3.3 hereof:

 

(1)           amortization of debt
discount or the accretion of principal with respect to a non-interest bearing
or other discount security;

 

(2)           the payment of regularly
scheduled interest in the form of additional Indebtedness of the same
instrument or the payment of regularly scheduled dividends on Capital Stock in
the form of additional Capital Stock of the same class and with the same terms;

 

(3)           the obligation to pay a
premium in respect of Indebtedness arising in connection with the issuance of a
notice of redemption or making of a mandatory offer to purchase such
Indebtedness; and

 

(4)           unrealized losses or charges
in respect of Hedging Obligations shall be deemed not to be the Incurrences of
Indebtedness.

 

“Indebtedness” means,
with respect to any Person on any date of determination (without duplication):

 

(1)           the principal in respect of (A) indebtedness
of such Person for money borrowed and (B) indebtedness evidenced by notes,
debentures, bonds or other similar instruments for the payment of which such
Person is responsible or liable, including, in each case, any premium on such
indebtedness to the extent such premium has become due and payable;

 

(2)           all Capital Lease Obligations
of such Person and all Attributable Debt in respect of Sale/Leaseback
Transactions entered into by such Person;

 

(3)           all obligations of such
Person issued or assumed as the deferred purchase price of property, all
conditional sale obligations of such Person and all obligations of such Person
under any title retention agreement (but excluding trade accounts payable
arising in the ordinary course of business);

 

13

 

(4)           all obligations of such
Person for the reimbursement of any obligor on any letter of credit, bankers’
acceptance or similar credit transaction (other than obligations with respect
to letters of credit securing obligations (other than obligations described in
clauses (1) through (3) above) entered into in the ordinary
course of business of such Person to the extent such letters of credit are not
drawn upon or, if and to the extent drawn upon, such drawing is reimbursed no
later than the tenth Business Day following payment on the letter of credit);

 

(5)           the amount of all
obligations of such Person with respect to the redemption, repayment or other
repurchase of any Disqualified Stock of such Person or any Preferred Stock of a
Subsidiary of such Person, with the amount of Indebtedness represented by such
Disqualified Stock or Preferred Stock, as applicable, being equal to the
greatest of (A) its voluntary liquidation preference, (B) its
involuntary liquidation preference and (C) its maximum fixed repurchase
price, but excluding, in each case, accrued and unpaid dividends, if any;

 

(6)           all obligations of the type
referred to in clauses (1) through (5) of other Persons and all
dividends of other Persons for the payment of which, in either case, such
Person is responsible or liable, directly or indirectly, as obligor, guarantor
or otherwise, including by means of any Guarantee;

 

(7)           all obligations of the type
referred to in clauses (1) through (6) of other Persons secured
by any Lien on any property or asset of such Person (whether or not such
obligation is assumed by such Person), the amount of such obligation being
deemed to be the lesser of the value of such property or assets and the amount
of the obligation so secured; and

 

(8)           to the extent not otherwise
included in this definition, Hedging Obligations of such Person.

 

Notwithstanding the
foregoing, in connection with the purchase by the Company or any Restricted
Subsidiary of the Company of any business, the term “Indebtedness” shall
exclude (x) customary indemnification obligations and (y) post-closing
payment adjustments to which the seller may become entitled to the extent such
payment is determined by a final closing balance sheet or such payment depends
on the performance of such business after the closing; provided, however,
that, at the time of closing, the amount of any such payment is not
determinable and, to the extent such payment thereafter becomes fixed and
determined, the amount is paid within 60 days thereafter.

 

The amount of Indebtedness
of any Person at any date shall be the outstanding balance at such date of all
unconditional obligations as described above and the maximum liability, upon
the occurrence of the contingency giving rise to the obligation, of any
contingent obligations at such date; provided,
however, that in the case of
Indebtedness sold at a discount, the amount of such Indebtedness at any time
shall be the accreted value thereof at such time.

 

The amount of any
Disqualified Stock or Preferred Stock that does not have a fixed redemption,
repayment or repurchase price shall be calculated in accordance with the terms
of such Disqualified Stock or Preferred Stock as if such Disqualified Stock or
Preferred Stock were redeemed, repaid or repurchased on any date on which the
amount of such Disqualified Stock or Preferred Stock is to be determined
pursuant to this Indenture; provided,
however, that if such
Disqualified Stock or Preferred Stock could not be required to be redeemed,
repaid or repurchased at the time of such determination, the redemption,
repayment or repurchase price shall be the book value of such Disqualified
Stock or Preferred Stock as reflected on the most recent financial statements
of such Person.

 

14

 

“Indenture” has the
meaning set forth in the preamble hereto.

 

“Independent Qualified
Party” means an investment banking firm, accounting firm or appraisal firm
of national standing; provided, however, that such firm is not an
Affiliate of the Company.

 

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

 

“Initial Notes” means
the $137,571,000 in aggregate principal amount of 13.25% Senior Secured Notes
due 2015 of the Company issued under this Indenture on the Issue Date.

 

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

 

“Intercreditor
Agreement” means that certain Intercreditor Agreement, dated
as of the Issue Date, among the Collateral Agent, the First Lien Collateral
Agents and any authorized representative of the holders of any other class of
Pari Passu Lien Obligations that shall have executed a joinder to such
Intercreditor Agreement as provided therein.

 

“Interest Payment Date”
means May 1 and November 1 of each year, commencing, in the case of
the Initial Notes, on November 1, 2010 and ending at the Stated Maturity
of the Notes.

 

“Interest Rate Agreement”
means any interest rate swap agreement, interest rate cap agreement or other
financial agreement or arrangement with respect to exposure to interest rates.

 

“Investment” in any
Person means any direct or indirect advance, loan (other than advances to
customers in the ordinary course of business that are recorded as accounts
receivable on the balance sheet of the lender) or other extensions of credit
(including by way of Guarantee or similar arrangement) or capital contribution
to (by means of any transfer of cash or other property to others or any payment
for property or services for the account or use of others), or any purchase or
acquisition of Capital Stock, Indebtedness or other similar instruments issued
by such Person.  Except as otherwise
provided for herein, the amount of an Investment shall be its fair value at the
time the Investment is made and without giving effect to subsequent changes in
value.

 

For purposes of the
definition of “Unrestricted Subsidiary,” the definition of “Restricted Payment”
and Section 3.4:

 

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

 

(2)           any property transferred to
or from an Unrestricted Subsidiary shall be valued at its Fair Market Value at
the time of such transfer.

 

15

 

“Issue Date” means March 15,
2010, the date on which the Notes are originally issued.

 

“Junior Lien Obligations”
means any Indebtedness permitted to be incurred under Section 3.3(a) hereof
which is by its terms intended to be secured by the Collateral on a basis
junior to the Liens securing the Notes; provided
such Lien is permitted to be incurred under this Indenture and such
Indebtedness has a Stated Maturity after the Stated Maturity of the Notes.

 

“Legal Holiday” means
a Saturday, a Sunday or a day on which banking institutions are not required to
be open in the State of New York.

 

“Letter of Transmittal”
means the letter of transmittal to be prepared by the Company and sent to all
Holders of the Notes for use by such Holders in connection with the exchange
offer and consent solicitation contemplated by the Offering Circular.

 

“Lien” means, with
respect to any property or assets of any Person, any mortgage or deed of trust,
pledge, hypothecation, assignment, deposit arrangement, security interest,
lien, charge, easement, encumbrance, preference, priority or other security
agreement or preferential arrangement of any kind or nature whatsoever on or
with respect to such property or assets, including any Capital Lease
Obligation, conditional sale or other title retention agreement having
substantially the same economic effect as any of the foregoing.

 

“Material Real Property”
means owned real properties owned by Parent, the Company and the Subsidiary
Guarantors with a cost or book value (whichever is greater) in excess of
$1.5 million.

 

“Mortgage”
means an agreement, including, but not limited to, a mortgage, deed of trust or
other document, creating and evidencing a Lien on Mortgaged Property, which
shall be substantially in the form of Exhibit E, in each case, with such
schedules and including such provisions as shall be necessary to conform such
documents to applicable local or foreign law or as shall be customary under
applicable local or foreign law.

 

“Mortgaged
Property” means (i) each real property designated as “Mortgaged
Property” on Annex A to Schedule 2 to each of the Purchase Agreements and (ii) each
real property encumbered by a Mortgage delivered after the date hereof, if any,
pursuant to Sections 3.15 and 11.2.

 

“Net Available Cash”
from an Asset Disposition means cash payments received therefrom (including any
cash payments received by way of deferred payment of principal pursuant to a
note or installment receivable or otherwise and proceeds from the sale or other
disposition of any securities received as consideration, but only as and when
received, but excluding any other consideration received in the form of
assumption by the acquiring Person of Indebtedness or other obligations
relating to such properties or assets or received in any other non-cash form),
in each case net of (1) all legal, title and recording tax expenses,
commissions and other fees and expenses incurred, and all Federal, state,
provincial, foreign and local taxes required to be paid or accrued as a
liability under GAAP, as a consequence of such Asset Disposition, (2) all
payments made on any Indebtedness (other than Pari Passu Lien Indebtedness and
Junior Lien Obligations) that is secured by any assets subject to such Asset
Disposition, in accordance with the terms of any Lien upon or other security
agreement of any kind with respect to such assets, or that must by its terms,
or in order to obtain a necessary consent to such Asset Disposition, or by
applicable law, be repaid out of the proceeds from such Asset Disposition, (3) all
distributions and other payments required to be made to minority interest
holders in Restricted Subsidiaries of the Company as a 

 

16

 

result of such Asset Disposition, (4) the
deduction of appropriate amounts provided by the seller as a reserve, in
accordance with GAAP, against any liabilities associated with the property or
other assets disposed in such Asset Disposition and retained by the Company or
any Restricted Subsidiary of the Company after such Asset Disposition and (5) any
portion of the purchase price from an Asset Disposition placed in escrow, whether
as a reserve for adjustment of the purchase price, for satisfaction of
indemnities in respect of such Asset Disposition or otherwise in connection
with that Asset Disposition; provided,
however, that upon the
termination of that escrow, Net Available Cash shall be increased by any
portion of funds in escrow that are released to the Company or any Restricted
Subsidiary of the Company.

 

“Net Cash Proceeds,”
with respect to any issuance or sale of Capital Stock or Indebtedness, means
the cash proceeds of such issuance or sale, net of attorneys’ fees,
accountants’ fees, underwriters’ or placement agents’ fees, discounts or
commissions and brokerage, consultant and other fees actually incurred in
connection with such issuance or sale and net of taxes paid or payable as a
result thereof.

 

“Non-Guarantor Subsidiary”
means any Restricted Subsidiary that is not a Subsidiary Guarantor.

 

“Non-Recourse
Securitization Entity Indebtedness” has the meaning set forth in the
definition of “Securitization Entity.”

 

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

 

“Notes” means the
Initial Notes, the Exchange Notes and any Additional Notes, treated as a single
class of securities.

 

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

 

“Obligations” means,
with respect to any Indebtedness, all obligations for principal, premium,
interest (including any interest accruing subsequent to the filing of a
petition in bankruptcy, reorganization or similar proceeding at the rate
provided for in the documentation with respect thereto, whether or not such
interest is an allowed claim under applicable state, federal or foreign law),
penalties, fees, indemnifications, reimbursements (including in respect of
letters of credit), and other amounts payable pursuant to the documentation
governing such Indebtedness.

 

“Offering Circular”
means the confidential Offering Circular dated February 22, 2010, as
supplemented by that certain Offering Circular Supplement dated March 3,
2010 used in connection with the offering of the Initial Notes.

 

“Officer” means the
Chairman of the Board, the President, any Vice President, the Treasurer or the
Secretary of the Company.

 

“Officers’ Certificate”
means a certificate signed by two Officers.

 

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

 

“Parent” means Reddy
Ice Holdings, Inc., a Delaware corporation.

 

17

 

“Parent Board” means
the Board of Directors of Parent or any committee thereof duly authorized to
act on behalf of such Board.

 

“Parent Guaranty”
means the Guarantee by Parent of the Company’s obligations with respect to the
Notes.

 

“Pari Passu Lien
Documents” means the credit and security documents governing the Pari Passu
Lien Obligations, including, without limitation, the Indenture relating to the
Notes, the related security documents and Intercreditor Agreement.

 

“Pari Passu Lien
Indebtedness” means (i) the Notes and (ii) Additional Pari Passu
Lien Indebtedness; provided that
such Lien is permitted to be incurred under this Indenture and, in the case of
clause (ii) only, such Indebtedness has a Stated Maturity that is no
earlier than the Stated Maturity of the Notes.

 

“Pari Passu Lien
Obligations” means all obligations in respect of Pari Passu Lien
Indebtedness.

 

“Pari Passu Lien
Percentage” means, at any time for purposes of Section 3.7 herein, a
fraction (expressed as a percentage), the numerator of which is the outstanding
principal amount of the Notes at such time and the denominator of which is the
outstanding principal amount of all outstanding Pari Passu Lien Indebtedness
(including the Notes) at such time requiring a prepayment from a specified
Asset Disposition.

 

“Pari Passu Lien Secured
Parties” means (i) holders of the Notes, (ii) the Collateral
Agent and (iii) the holders from time to time of any other Pari Passu Lien
Obligations.

 

“Pari Passu Liens”
means the Liens securing the Pari Passu Lien Obligations.

 

“Participant” means,
with respect to the Depositary, a Person who has an account with the
Depositary.

 

“Permitted Investment”
means an Investment by the Company or any Restricted Subsidiary of the Company
in:

 

(1)           the Company, a Restricted
Subsidiary of the Company or a Person that shall, upon the making of such
Investment, become a Restricted Subsidiary of the Company; provided, however,
that the primary business of such Restricted Subsidiary is a Related Business;

 

(2)           another Person if, as a
result of such Investment, such other Person is merged or consolidated with or
into, or transfers or conveys all or substantially all its assets to, the
Company or a Restricted Subsidiary of the Company; provided, however,
that such Person’s primary business is a Related Business;

 

(3)           cash and Temporary Cash
Investments;

 

(4)           receivables owing to the
Company or any Restricted Subsidiary of the Company if created or acquired in
the ordinary course of business and payable or dischargeable in accordance with
customary trade terms; provided, however, that such trade terms may include
such 

 

18

 

concessionary trade terms as
the Company or any such Restricted Subsidiary deems reasonable under the
circumstances;

 

(5)           payroll, travel and similar
advances to cover matters that are expected at the time of such advances
ultimately to be treated as expenses for accounting purposes and that are made
in the ordinary course of business;

 

(6)           loans or advances to
employees made in the ordinary course of business of the Company or such
Restricted Subsidiary;

 

(7)           stock, obligations or
securities received in settlement of debts created in the ordinary course of
business and owing to the Company or any Restricted Subsidiary of the Company
or in satisfaction of judgments;

 

(8)           any Person to the extent
such Investment represents the non-cash portion of the consideration received for
(i) an Asset Disposition as permitted pursuant to Section 3.7
or (ii) a disposition of any assets not constituting an Asset Disposition;

 

(9)           any Person where such
Investment was acquired by the Company or any of its Restricted Subsidiaries (a) in
exchange for any other Investment or accounts receivable held by the Company or
any such Restricted Subsidiary in connection with or as a result of a
bankruptcy, workout, reorganization or recapitalization of the issuer of such
other Investment or accounts receivable or (b) as a result of a
foreclosure by the Company or any of its Restricted Subsidiaries with respect
to any secured Investment or other transfer of title with respect to any
secured Investment in default;

 

(10)         any Person to the extent
such Investments consist of prepaid expenses, negotiable instruments held for
collection and lease, utility and workers’ compensation, performance and other
similar deposits made in the ordinary course of business by the Company or any
Restricted Subsidiary;

 

(11)         any Person to the extent
such Investments consist of Hedging Obligations otherwise permitted pursuant to
Section 3.3 hereof;

 

(12)         any Person existing on the
Issue Date, and any extension, modification or renewal of any such Investments
existing on the Issue Date, but only to the extent not involving additional
advances, contributions or other Investments of cash or other assets or other
increases thereof (other than as a result of the accrual or accretion of
interest or original issue discount or the issuance of pay-in-kind securities,
in each case, pursuant to the terms of such Investment as in effect on the
Issue Date);

 

(13)         Investments by the Company
in a Securitization Entity or any Investment by a Securitization Entity in any
other Person in connection with a Qualified Securitization Transaction which
Investments consist of the transfer of receivables, equipment and related
assets; provided, however, that any Investment in a
Securitization Entity is in the form of (a) a Purchase Money Note, (b) an
equity interest, (c) obligations of the Securitization Entity to pay the
purchase price for assets transferred to it or (d) interests in either (x) equipment
owned by the Company or a Restricted Subsidiary of the Company or (y) accounts
receivable generated by the Company or 

 

19

 

a Restricted Subsidiary of
the Company and, in each case, transferred to such Securitization Entity or
other Person in connection with a Qualified Securitization Transaction; and

 

(14)         Persons to the extent such
Investments, when taken together with all other Investments made pursuant to
this clause (14) outstanding on the date such Investment is made, do not
exceed $25.0 million; provided that no Investments made pursuant to this
clause (14) may be used to directly or indirectly purchase, repurchase, redeem,
defease or otherwise acquire or retire for value (x) any Indebtedness or
equity of any Affiliate of the Company or (y) any (i) Subordinated
Obligations, (ii) unsecured Indebtedness of the Company or a Restricted
Subsidiary or (iii) Junior Lien Obligations.

 

“Permitted Liens”
means, with respect to any Person:

 

(1)           pledges or deposits by such
Person under worker’s compensation laws, unemployment insurance laws or similar
legislation, or good faith deposits in connection with bids, tenders, contracts
(other than for the payment of Indebtedness) or leases to which such Person is
a party, or deposits to secure public or statutory obligations of such Person
or deposits of cash or United States government bonds to secure surety or
appeal bonds to which such Person is a party, or deposits as security for
contested taxes or import duties or for the payment of rent, in each case
Incurred in the ordinary course of business;

 

(2)           Liens in favor of carriers,
warehousemen, mechanics, suppliers, repairmen, materialmen and landlords and
other similar Liens imposed by law, in each case for sums not overdue or being
contested in good faith by appropriate proceedings or other Liens arising out
of judgments or awards against such Person with respect to which such Person
shall then be proceeding with an appeal or other proceedings for review and
Liens arising solely by virtue of any statutory or common law provision
relating to banker’s Liens, rights of set-off or similar rights and remedies as
to deposit accounts or other funds maintained with a creditor depository
institution; provided, however, that (A) such deposit
account is not a dedicated cash collateral account and is not subject to
restrictions against access by the Company in excess of those set forth by
regulations promulgated by the Federal Reserve Board and (B) such deposit
account is not intended by the Company to provide collateral to the depository
institution;

 

(3)           Liens for taxes not yet
subject to penalties for non-payment or which are being contested in good faith
by appropriate proceedings;

 

(4)           Liens in favor of issuers of
surety bonds or letters of credit issued pursuant to the request of and for the
account of such Person in the ordinary course of its business; provided, however,
that such letters of credit do not constitute Indebtedness;

 

(5)           minor survey exceptions,
minor encumbrances, easements or reservations of, or rights of others for,
licenses, rights-of-way, sewers, electric lines, telegraph and telephone lines
and other similar purposes, or zoning or other restrictions as to the use of
real property or Liens incidental to the conduct of the business of such Person
or to the ownership of its properties which were not Incurred in connection
with Indebtedness and which do not in the aggregate materially adversely affect
the value of said properties or materially impair their use in the operation of
the business of such Person;

 

20

 

 

(6)                                  Liens securing
Indebtedness Incurred to finance the construction, purchase or lease of, or
repairs, improvements or additions to, property, plant or equipment of such
Person; provided, however, that the Lien may not extend to
any other property owned by such Person or any of its Restricted Subsidiaries
at the time the Lien is Incurred (other than assets and property affixed or
appurtenant thereto or proceeds or distributions thereof), and the Indebtedness
(other than any interest thereon) secured by the Lien may not be Incurred more
than 180 days after the later of the acquisition, completion of
construction, repair, improvement, addition or commencement of full operation
of the property subject to the Lien;

 

(7)                                  (i) Liens
on the Collateral securing Indebtedness Incurred pursuant to Section 3.3(b)(iv) and
(ii) other Liens on the Collateral securing Additional Pari Passu Lien
Indebtedness; provided that, in
the case of clause (ii), either (x) the Secured Leverage Ratio, after
giving effect to the incurrence of such Additional Pari Passu Lien Indebtedness
and Liens, shall not exceed 6.0 to 1.0 or (y) the aggregate amount of such
Additional Pari Passu Lien Indebtedness shall not exceed $50.0 million
incurred after the Issue Date, whichever is greater; provided further that an authorized representative of the
holders of such Indebtedness shall have executed a joinder to the Intercreditor
Agreement and the Collateral Documents in the form provided therein;

 

(8)                                  Liens existing
on the Issue Date other than the Liens securing Notes and the First Lien
Obligations;

 

(9)                                  Liens on
property or shares of Capital Stock of another Person at the time such other
Person becomes a Subsidiary of such Person; provided,
however, that the Liens may not
extend to any other property owned by such Person or any of its Restricted
Subsidiaries (other than assets and property affixed or appurtenant thereto or
proceeds or distributions thereof);

 

(10)                            Liens on
property at the time such Person or any of its Subsidiaries acquires the property,
including any acquisition by means of a merger or consolidation with or into
such Person or a Subsidiary of such Person; provided,
however, that the Liens may not
extend to any other property owned by such Person or any of its Restricted
Subsidiaries (other than assets and property affixed or appurtenant thereto or
proceeds or distributions thereof);

 

(11)                            Liens securing
Indebtedness or other obligations of a Subsidiary of such Person owing to such
Person or a Restricted Subsidiary of such Person;

 

(12)                            Liens securing
Hedging Obligations so long as such Hedging Obligations relate to Indebtedness
that is, and is permitted to be under this Indenture, secured by a Lien on the
same property securing such Hedging Obligations;

 

(13)                            Liens to secure
any Refinancing (or successive Refinancings) as a whole, or in part, of any
Indebtedness secured by any Lien referred to in the foregoing clause (6),
(8), (9) or (10); provided, however, that:

 

(A)                              such new Lien shall be
limited to all or part of the same property and assets that secured or, under
the written agreements pursuant to which the original Lien arose, could secure
the original Lien (plus improvements and accessions to, such property or
proceeds or distributions thereof); and

 

21

 

(B)                                the Indebtedness secured by
such Lien at such time is not increased to any amount greater than the sum of (x) the
outstanding principal amount or, if greater, committed amount of the
Indebtedness described under clause (6), (8), (9) or (10) at the
time the original Lien became a Permitted Lien and (y) an amount necessary
to pay any fees and expenses, including premiums, related to such refinancing,
refunding, extension, renewal or replacement;

 

(14)                            Liens arising
under this Indenture in favor of the Trustee for its own benefit and similar
Liens in favor of other trustees, agents and representatives arising under
instruments governing Indebtedness permitted to be Incurred under this
Indenture; provided that such
Liens are solely for the benefit of the trustees, agents or representatives in
their capacities as such and not for the benefit of the holders of such
Indebtedness;

 

(15)                            Liens on cash
securing reimbursement obligations under the letters of credit in aggregate
amount not to exceed $15.0 million;

 

(16)                            Liens securing
Hedging Obligations otherwise permitted to be Incurred under this Indenture in
an aggregate amount not to exceed $5.0 million;

 

(17)                            Liens securing (i) the
First Lien Notes incurred pursuant to Section 3.3(b)(xv) herein, (ii) Indebtedness
under the Credit Agreement incurred pursuant to clause (1) under Section 3.3(b)(i) herein
and (iii) other Liens on the Collateral securing Additional First Lien
Indebtedness, provided that in
the case of this clause (iii) only, the First Lien Leverage Ratio,
after giving pro forma effect to the incurrence of such Additional First Lien
Indebtedness and Liens, does not exceed 3.50 to 1.0;

 

(18)                            Liens on the
Collateral securing Junior Lien Obligations, provided
that the lenders or holders of such Junior Lien Obligations have entered into
an intercreditor agreement with the Pari Passu Lien Secured Parties that
includes lien priority provisions and related matters that are substantially
consistent with the lien priority provisions of the Intercreditor Agreement;
and

 

(19)                            other Liens not
to exceed $10.0 million outstanding at any time.

 

For
purposes of this definition, the term “Indebtedness” shall be deemed to include
interest on such Indebtedness.

 

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

 

“Preferred
Stock,” as applied to the Capital Stock of any Person, means Capital Stock
of any class or classes (however designated) that is preferred as to the
payment of dividends or distributions, or as to the distribution of assets upon
any voluntary or involuntary liquidation or dissolution of such Person, over
shares of Capital Stock of any other class of such Person.

 

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

 

22

 

“Priority
Payment Lien Obligations” means any Indebtedness Incurred pursuant to Section 3.3(b)(i);
provided that Hedging Obligations
Incurred under such Section 3.3(b)(i) and secured pursuant to
clause (16) of the definition of “Permitted Liens” that are cash
collateralized shall not constitute Priority Payment Lien Obligations.

 

“Private
Placement Legend” means the legend set forth in Section 2.1(c) to
be placed on all Notes issued under this Indenture except where otherwise
permitted by the provisions hereof.

 

“Public
Equity Offering” means an underwritten public offering of common stock of
the Company or Parent (so long as Parent makes a capital contribution to the
Company with the net proceeds thereof) pursuant to an effective registration
statement under the Securities Act.

 

“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 paid in connection with the purchase of
newly generated receivables or newly acquired equipment.

 

“QIB”
means any “qualified institutional buyer” (as defined in Rule 144A).

 

“Qualified
Equity Offering” means a public or private offering of Capital Stock (other
than Disqualified Stock) of the Company or Parent (to the extent the net
proceeds are contributed to the Company).

 

“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 of its Subsidiaries may sell, convey or otherwise
transfer to (1) a Securitization Entity, in the case of a transfer by the
Company or any of its Subsidiaries, and (2) any other Person, in the case
of a transfer by a Securitization Entity, or may grant a security interest in,
any accounts receivable 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 all collateral securing such accounts
receivable and equipment, all contracts and contract rights and all guarantees
or other obligations in respect of such accounts receivable and equipment,
proceeds of such accounts receivable and equipment and other assets, including
contract rights, that are customarily transferred or in respect of which
security interests are customarily granted in connection with asset
securitization transactions involving accounts receivable and equipment.

 

“Record
Date” for the interest payable on any applicable Interest Payment Date
means April 15 and October 15 (whether or not a Business Day) next
preceding such Interest Payment Date.

 

“Refinance”
means, in respect of any Indebtedness, to refinance, extend, renew, refund,
repay, prepay, redeem, purchase, defease or retire, or to issue other
Indebtedness in exchange or replacement for, such Indebtedness.  “Refinanced” and “Refinancing”
shall have correlative meanings.

 

“Refinancing
Indebtedness” means Indebtedness that Refinances any  Indebtedness of
the Company or any Restricted Subsidiary of the Company existing on the Issue
Date or Incurred in compliance with this Indenture, including Indebtedness that
Refinances Refinancing Indebtedness; provided,
however, that:

 

23

 

(1)                                  such
Refinancing Indebtedness has a Stated Maturity no earlier than the Stated
Maturity of the Indebtedness being Refinanced;

 

(2)                                  such
Refinancing Indebtedness has an Average Life at the time such Refinancing
Indebtedness is Incurred that is equal to or greater than the Average Life of
the Indebtedness being Refinanced;

 

(3)                                  such
Refinancing Indebtedness has an aggregate principal amount (or if Incurred with
original issue discount, an aggregate issue price) that is equal to or less
than the aggregate principal amount (or if Incurred with original issue
discount, the aggregate accreted value) then outstanding or committed (plus
fees and expenses, including any premium and defeasance costs) under the
Indebtedness being Refinanced; and

 

(4)                                  if the
Indebtedness being Refinanced is subordinated in right of payment to the Notes,
such Refinancing Indebtedness is subordinated in right of payment to the Notes
at least to the same extent as the Indebtedness being Refinanced;

 

provided further, however, that Refinancing Indebtedness shall not include (A) Indebtedness
of a Subsidiary that Refinances Indebtedness of the Company, (B) Indebtedness
of the Company or a Restricted Subsidiary of the Company that Refinances
Indebtedness of an Unrestricted Subsidiary or (C) Indebtedness under any
Credit Agreement.

 

“Registration
Rights Agreement” means (1) in the case of the Initial Notes, the
registration rights agreement dated the Issue Date, among Parent, the Company
and the Dealer Manager, entered into in connection with the Initial Notes and (2) in
the case of any Additional Notes, any registration rights agreement with
respect to such Additional Notes entered into in connection with the initial
issuance thereof.

 

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

 

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

 

“Related
Business” means any business in which the Company or any of its Subsidiaries
was engaged on the Issue Date and any business related, ancillary or
complementary to any business of the Company in which the Company or any of its
Subsidiaries was engaged on the Issue Date or any reasonable extension,
development or expansion of the business of the Company or its Restricted
Subsidiaries.

 

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

 

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

 

24

 

“Restricted
Payment” with respect to any Person means:

 

(1)                                  the declaration
or payment of any dividends or any other distributions of any sort in respect
of its Capital Stock (including any payment in connection with any merger or
consolidation involving such Person) or similar payment to the direct or
indirect holders of its Capital Stock (other than (A) dividends or
distributions payable solely in its Capital Stock (other than Disqualified
Stock), (B) dividends or distributions payable solely to the Company or a
Restricted Subsidiary of the Company and (C) pro rata dividends or other
distributions made by a Subsidiary that is not a Wholly Owned Subsidiary to
minority stockholders (or owners of an equivalent interest in the case of a
Subsidiary that is an entity other than a corporation));

 

(2)                                  the purchase,
redemption or other acquisition or retirement for value of any Capital Stock of
the Company held by any Person (other than a Restricted Subsidiary of the
Company) or of any Capital Stock of a Restricted Subsidiary of the Company held
by any Affiliate of the Company (other than the Company or a Restricted
Subsidiary of the Company), including in connection with any merger or
consolidation and including the exercise of any option to exchange any Capital
Stock (other than into Capital Stock of the Company that is not Disqualified
Stock);

 

(3)                                  the purchase,
repurchase, redemption, defeasance or other acquisition or retirement for value
of any (i) Subordinated Obligations, (ii) unsecured Indebtedness and (iii) Junior
Lien Obligations (other than from the Company or a Restricted Subsidiary of the
Company);

 

(4)                                  the making of
any Investment (other than a Permitted Investment) in any Person; and

 

(5)                                  any payment in
connection with any plea, judgment, settlement, penalty or fine arising from or
related to lawsuits, government proceedings or regulatory actions or
investigations in connection with matters relating to the pending Department of
Justice investigation of Parent and its subsidiaries and the litigation related
thereto.

 

“Restricted
Period” means, in relation to the Initial Notes, the 40 consecutive days
beginning on and including the later of (A) the day on which the Initial
Notes are offered to persons other than distributors (as defined in
Regulation S under the Securities Act) and (B) the Issue Date; and,
in relation to any Additional Notes that bear the Private Placement Legend, it
means the comparable period of 40 consecutive days.

 

“Restricted
Subsidiary” means any Subsidiary of the Company other than an Unrestricted
Subsidiary.

 

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

 

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

 

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

 

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

 

“Sale/Leaseback
Transaction” means an arrangement relating to property owned  by the Company
or a Restricted Subsidiary of the Company on the Issue Date or thereafter
acquired by the 

 

25

 

Company
or a Restricted Subsidiary of the Company whereby the Company or a Restricted
Subsidiary of the Company transfers such property to a Person and the Company
or a Restricted Subsidiary of the Company leases it from such Person.

 

“SEC”
means the United States Securities and Exchange Commission.

 

“Secured
Leverage Ratio” means at the date of calculation, the ratio of (a) all
Indebtedness of the Company and its Restricted Subsidiaries that is secured by
a Lien on any assets of the Company and its Restricted Subsidiaries (other than
Junior Lien Obligations) on such date on a consolidated basis in accordance
with GAAP to (b) EBITDA of the Company and its Restricted Subsidiaries for
the period of the most recent four consecutive fiscal quarters ending on or
prior to such date of determination for which internal financial statements are
available. For purposes of making the computation referred to above, EBITDA
shall be calculated on a pro forma basis in accordance with the definition of “Consolidated
Coverage Ratio.”

 

“Secured
Parties” means (i) the Noteholders, (ii) the Trustee, (iii) the
Collateral Agent and (iv) any successors, indorsees, transferees and
assigns of each of the foregoing.

 

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

 

“Securitization
Entity” means a wholly owned Subsidiary of the Company (or a wholly owned
Subsidiary of another Person in which the Company or any Subsidiary of the
Company makes an Investment and in which the Company or any Subsidiary of the
Company transfers accounts receivable or equipment and related assets) that
engages in no activities other than in connection with the financing of
accounts receivable and that is designated by the Board of Directors of the Company
(as provided below) as a Securitization Entity and:

 

(1)                                  no portion of
the Indebtedness or any other obligations (contingent or otherwise) of which:

 

(a)                                  is guaranteed by the Company
or any Restricted Subsidiary of the Company (excluding guarantees of
obligations (other than the principal of, and interest on, Indebtedness)
pursuant to Standard Securitization Undertakings);

 

(b)                                 is recourse to or obligates
the Company or any Restricted Subsidiary of the Company (other than such
Securitization Entity) in any way other than pursuant to Standard
Securitization Undertakings; or

 

(c)                                  subjects any property or
asset of the Company or any Restricted Subsidiary of the Company (other than
such Securitization Entity), directly or indirectly, contingently or otherwise,
to the satisfaction thereof, other than pursuant to Standard Securitization
Undertakings

 

(such
Indebtedness described in this clause (1), “Non-Recourse Securitization
Entity Indebtedness”);

 

(2)                                  with which
neither the Company nor any Restricted Subsidiary of the Company (other than
such Securitization Entity) has any material contract, agreement, arrangement
or understanding other than those that might be obtained at the time from
Persons that are not Affiliates 

 

26

 

of
the Company, other than fees payable in the ordinary course of business in
connection with servicing accounts receivable of such entity; and

 

(3)                                  to which
neither the Company nor any Restricted Subsidiary of the Company (other than
such Securitization Entity) has any obligation to maintain or preserve such
entity’s financial condition or cause such entity to achieve certain levels of
operating results.

 

Any
designation of a Subsidiary as a Securitization Entity 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 the designation and an
Officers’ Certificate certifying that the designation complied with the
preceding conditions and was permitted by this Indenture.

 

“Security
Agreement” means the security agreement dated March 15, 2010, among
the Company, Parent, the Subsidiary Guarantors and the Collateral Agent, as the
same may be amended, supplemented or otherwise modified from time to time.

 

“Shelf
Registration Statement” means the Shelf Registration Statement as defined
in the Registration Rights Agreement.

 

“Significant
Subsidiary” means any Restricted Subsidiary of the Company that would be a “Significant
Subsidiary” of the Company within the meaning of Rule 1-02 under
Regulation S-X promulgated by the SEC as in effect on the Issue Date.

 

“Standard
Securitization Undertakings” means representations, warranties, covenants
and indemnities entered into by the Company or any Restricted Subsidiary of the
Company that are reasonably customary in an accounts receivable or equipment
securitization transaction, including servicing of the obligations thereunder.

 

“Stated
Maturity” means, with respect to any security, the date specified in such
security as the fixed date on which the final payment of principal of such
security is due and payable, including pursuant to any mandatory redemption
provision (but excluding any provision providing for the repurchase of such
security at the option of the holder thereof upon the happening of any
contingency unless such contingency has occurred).

 

“Subordinated
Obligation” means, with respect to a Person, any Indebtedness of such
Person (whether outstanding on the Issue Date or thereafter Incurred) which is
subordinate or junior in right of payment to the Notes or a Subsidiary Guaranty
of such Person, as the case may be, pursuant to a written agreement to that
effect.

 

“Subsidiary”
means, with respect to any Person, any corporation, association, partnership or
other business entity of which more than 50% of the total voting power of
shares of Voting Stock is at the time owned or controlled, directly or
indirectly, by:

 

(1)                                  such Person;

 

(2)                                  such Person and
one or more Subsidiaries of such Person; or

 

(3)                                  one or more
Subsidiaries of such Person.

 

27

 

“Subsidiary
Guarantor” means each Subsidiary of the Company that after the Issue Date
guarantees the Notes pursuant to the terms of this Indenture or required by Section  3.11, in each case,
unless and until released from such guarantees in accordance with the terms of
this Indenture.

 

“Subsidiary
Guaranty” means a Guarantee by a Subsidiary Guarantor of the Company’s
obligations with respect to the Notes.

 

“Tax
Sharing Arrangement” means any tax sharing agreement or arrangement between
the Company and any other Person with which the Company is required to, or is
permitted to, file a consolidated, combined or unitary tax return or with
which the Company is or could be part of a consolidated group for tax purposes.

 

“Temporary
Cash Investments” means any of the following:

 

(1)                                  any investment
in direct obligations of the United States of America or any agency thereof or
obligations guaranteed by the United States of America or any agency thereof;

 

(2)                                  investments in
demand and time deposit accounts, certificates of deposit and money market
deposits maturing within one year of the date of acquisition thereof issued by
a bank or trust company which is organized under the laws of the United States
of America, any State thereof or any foreign country recognized by the United
States of America, and which bank or trust company has capital, surplus and
undivided profits aggregating in excess of $50.0 million (or the foreign
currency equivalent thereof) and has outstanding debt which is rated “A” (or
such similar equivalent rating) or higher by at least one nationally recognized
statistical rating organization (as defined in Rule 436 under the
Securities Act) or any money-market fund sponsored by a registered broker
dealer or mutual fund distributor;

 

(3)                                  repurchase
obligations with a term of not more than 90 days for underlying securities
of the types described in clause (1) above entered into with a bank
meeting the qualifications described in clause (2) above;

 

(4)                                  investments in
commercial paper, maturing not more than one year after the date of
acquisition, issued by a corporation (other than an Affiliate of the Company)
organized and in existence under the laws of the United States of America or
any foreign country recognized by the United States of America with a rating at
the time as of which any investment therein is made of “P-1” (or higher)
according to Moody’s Investors Service, Inc. or “A-1” (or higher)
according to Standard and Poor’s Ratings Group;

 

(5)                                  investments in
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 of America, or by any political subdivision or taxing authority
thereof, and rated at least “A” by Standard & Poor’s Ratings Group or “A”
by Moody’s Investors Service, Inc.; and

 

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

 

“TIA”
means the Trust Indenture Act of 1939 as in effect on the Issue Date, except as
provided in Section 9.6 hereof.

 

28

 

“Transactions”
means the (i) offering and sale of the First Lien Notes and the
application of the proceeds to refinance certain existing Indebtedness of the
Company and Parent, (ii) the entering into the Credit Agreement and
repayment and termination of the Company’s existing credit agreement and (iii) the
exchange offer and consent solicitation relating to Parent’s existing 101⁄2%
Senior Discount Notes due 2012 for the Initial Notes.

 

“Treasury
Rate” means, as obtained by the Company, the yield to maturity at the time
of computation of United States Treasury securities with a constant maturity
(as compiled and published in the most recent Federal Reserve Statistical
Release H.15(519) that has become publicly available at least two Business Days
prior to the Redemption Date (or, if such Statistical Release is no longer published,
any publicly available source of similar market data)) most nearly equal to the
period from the Redemption Date to March 1, 2013; provided, however,
that if the period from the Redemption Date to March 1, 2013 is not equal
to the constant maturity of a United States Treasury security for which a
weekly average yield is given, the Treasury Rate shall be obtained by linear
interpolation (calculated to the nearest one-twelfth of a year) from the weekly
average yields of United States Treasury securities for which such yields are
given, except that if the period from the Redemption Date to March 1, 2013
is less than one year, the weekly average yield on actually traded United
States Treasury securities adjusted to a constant maturity of one year will be
used.

 

“Trust
Officer” means the Chairman of the Board, the President or any other
officer or assistant officer of the Trustee assigned by the Trustee to
administer its corporate trust matters.

 

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

 

“Uniform
Commercial Code” means the New York Uniform Commercial Code, as in effect
from time to time.

 

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

 

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

 

“Unrestricted
Subsidiary” means:

 

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

 

(2)                                  any Subsidiary
of an Unrestricted Subsidiary.

 

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

 

29

 

to
be so designated has total assets of $1,000 or less or (B) if such
Subsidiary has assets greater than $1,000, such designation would be permitted
pursuant to Section 3.4 hereof.

 

The
Board of Directors of the Company may designate any Unrestricted Subsidiary to
be a Restricted Subsidiary of the Company; provided,
however, that immediately after
giving effect to such designation (A) the Company could Incur $1.00 of
additional Indebtedness pursuant to Section 3.3(a) hereof and (B) no
Default shall have occurred and be continuing. Any such designation by the
Board of Directors of the Company shall be evidenced to the Trustee by promptly
filing with the Trustee a 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 provisions.

 

“U.S.
Dollar Equivalent” means with respect to any monetary amount in a currency
other than U.S. dollars, at any time for determination thereof, the amount of
U.S. dollars obtained by converting such foreign currency involved in such
computation into U.S. dollars at the spot rate for the purchase of U.S. dollars
with the applicable foreign currency as published in The Wall Street Journal in
the “Exchange Rates” column under the heading “Currency Trading” on the date
two Business Days prior to such determination.

 

Except
as described pursuant to Section 3.3 hereof, whenever it is
necessary to determine whether the Company has complied with any covenant in
this Indenture or a Default has occurred and an amount is expressed in a
currency other than U.S. dollars, such amount shall be treated as the U.S.
Dollar Equivalent determined as of the date such amount is initially determined
in such currency.

 

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

 

“U.S.
Person” means a U.S. Person as defined in Rule 902(k) of
Regulation S under the Securities Act.

 

“Voting
Stock” of a Person means all classes of Capital Stock or other interests
(including partnership interests) of such Person then outstanding and normally
entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, managers or trustees thereof.

 

“Wholly
Owned Subsidiary” of a Person means a Restricted Subsidiary of such Person
all the Capital Stock of which (other than directors’ qualifying shares) is
owned by such Person or one or more other Wholly Owned Subsidiaries of such
Person.

 

SECTION 1.2.                                          Other Definitions.

 

	
  Term

  	
   

  	
  Defined in

  Section

  
	
   

  	
   

  	
   

  
	
  “Actual
  Knowledge”

  	
   

  	
  7.2(g)

  
	
  “Additional
  Notes”

  	
   

  	
  2.2

  
	
  “Affiliate
  Transaction”

  	
   

  	
  3.8(a)

  
	
  “Agent
  Member”

  	
   

  	
  2.1(c)

  
	
  “Asset
  Disposition Offer”

  	
   

  	
  3.7(c)

  

 

30

 

	
  Term

  	
   

  	
  Defined
  in

  Section

  
	
   

  	
   

  	
   

  
	
  “Asset
  Disposition Offer Amount”

  	
   

  	
  3.7(d)

  
	
  “Asset
  Disposition Offer Period”

  	
   

  	
  3.7(d)

  
	
  “Asset
  Disposition Purchase Date”

  	
   

  	
  3.7(d)

  
	
  “Bankruptcy
  Law”

  	
   

  	
  6.1

  
	
  “Change
  of Control Offer”

  	
   

  	
  3.9(b)

  
	
  “covenant
  defeasance option”

  	
   

  	
  8.1(b)

  
	
  “cross
  acceleration period”

  	
   

  	
  6.1(a)(vi)

  
	
  “Custodian”

  	
   

  	
  6.1

  
	
  “Defaulted
  Interest”

  	
   

  	
  2.12

  
	
  “defeasance
  trust”

  	
   

  	
  8.2(i)

  
	
  “DTC”

  	
   

  	
  2.1(b)

  
	
  “Event
  of Default”

  	
   

  	
  6.1(a)

  
	
  “Excess
  Proceeds”

  	
   

  	
  3.7(c))

  
	
  “Guarantor
  Obligations”

  	
   

  	
  10.1

  
	
  “Initial
  Lien”

  	
   

  	
  3.5

  
	
  “judgment
  default provision”

  	
   

  	
  6.1(a)(ix)

  
	
  “legal
  defeasance option”

  	
   

  	
  8.1(b)

  
	
  “Notice
  of Default”

  	
   

  	
  6.1

  
	
  “Paying
  Agent”

  	
   

  	
  2.3

  
	
  “Redemption
  Date”

  	
   

  	
  5.4

  
	
  “Registrar”

  	
   

  	
  2.3

  
	
  “Special
  Interest Payment Date”

  	
   

  	
  2.12(a)

  
	
  “Special
  Record Date”

  	
   

  	
  2.12(a)

  
	
  “Successor
  Company”

  	
   

  	
  4.1(a)(i)

  
	
  “Unutilized
  Excess Proceeds”

  	
   

  	
  3.7(c)

  

 

SECTION 1.3.                                          Rules of Construction. 
Unless the context otherwise requires:

 

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

 

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

 

(c)                                  “or” is not
exclusive;

 

(d)                                 “including”
means including without limitation;

 

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

 

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

 

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

 

31

 

(h)                                 unless the
context otherwise requires, any reference to an “Article,” “Section” or “clause”
refers to an Article, Section or clause, as the case may be, of this
Indenture;

 

(i)                                     the words “herein,”
“hereof” and “hereunder” and any other words of similar import refer to this
Indenture as a whole and not any particular Article, Section, clause or other
subdivision; and

 

(j)                                     any requirement
to pay interest on the Notes shall include all additional interest required
pursuant to the Registration Rights Agreement or Section 6.1.

 

SECTION 1.4.                                          Incorporation by Reference of Trust
Indenture Act.  Whenever this Indenture refers to a provision
of the TIA, the provision is incorporated by reference in and made a part
hereof.

 

The
following TIA term used in this Indenture has the following meanings:

 

“obligor” on the Notes
means each of the Company and any successor obligor upon the Notes.

 

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

 

ARTICLE
II

 

The
Notes

 

SECTION 2.1.                                          Form and Dating.

 

(a)                                  The Notes and
the Trustee’s certificate of authentication shall be substantially in the form
of Exhibit A hereto, the terms of which are incorporated in and
made a part hereof.  The Notes may have
notations, legends or endorsements approved as to form by the Company, and
required by law, stock exchange rule, agreements to which the Company is
subject or usage.  Each Note shall be
dated the date of its authentication. 
The Notes shall be issuable only in denominations of $2,000 and integral
multiples of $1,000 in excess thereof.

 

(b)                                 The Notes shall
initially be issued in the form of one or more Global Notes and The Depository
Trust Company (“DTC”), its nominees, and their respective successors,
shall act as the Depositary with respect thereto.  Each Global Note (i) shall be registered
in the name of the Depositary for such Global Note or the nominee of such
Depositary, (ii) shall be delivered by the Trustee to such Depositary or
held by the Trustee as custodian for the Depositary pursuant to such Depositary’s
instructions, and (iii) shall bear a Global Note Legend in substantially
the following form:

 

UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY 

 

32

 

PAYMENT
IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

THIS
NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE AND IS REGISTERED IN
THE NAME OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY OR A SUCCESSOR
DEPOSITARY.  THIS NOTE IS NOT
EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE
DEPOSITARY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS
A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE
DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITARY) SHALL BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE.

 

(c)                                  Except as
permitted by Section 2.6(g), any Note not registered under the
Securities Act shall bear the following Private Placement Legend on the face
thereof:

 

“THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
EXCEPT IN ACCORDANCE WITH THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF OR
OF A BENEFICIAL INTEREST HEREIN, THE ACQUIRER: 
(1) REPRESENTS THAT:  (A) IT
AND ANY ACCOUNT FOR WHICH IT IS ACTING IS A “QUALIFIED INSTITUTIONAL BUYER”
(WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT) AND THAT IT
EXERCISES SOLE INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT, (B) IT
IS AN INSTITUTIONAL “ACCREDITED INVESTOR” (WITHIN THE MEANING OF RULE 501(a) (1),
(2), (3) OR (7) UNDER THE SECURITIES ACT) (AN “INSTITUTIONAL
ACCREDITED INVESTOR”), OR (C) IT IS NOT A U.S. PERSON (WITHIN THE MEANING
OF REGULATION S UNDER THE SECURITIES ACT), AND (2) AGREES FOR THE BENEFIT
OF THE COMPANY THAT IT SHALL NOT OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER THIS
NOTE OR ANY BENEFICIAL INTEREST HEREIN, EXCEPT IN ACCORDANCE WITH THE
SECURITIES ACT AND ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES AND ONLY:  (A) TO THE COMPANY
OR ANY OF THEIR SUBSIDIARIES, (B)  PURSUANT TO A REGISTRATION
STATEMENT WHICH HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT, (C) TO A
QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
ACT, (D) IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 901 OF
REGULATION S UNDER THE SECURITIES ACT, (E) IN A PRINCIPAL AMOUNT OF NOT
LESS THAN $250,000, TO AN INSTITUTIONAL ACCREDITED INVESTOR THAT, PRIOR TO SUCH
TRANSFER, DELIVERS TO THE TRUSTEE A DULY COMPLETED AND SIGNED CERTIFICATE (THE FORM OF
WHICH MAY BE OBTAINED 

 

33

 

FROM
THE TRUSTEE) RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS NOTE, OR (F) PURSUANT
TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT
OR ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT.  PRIOR TO THE
REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (2)(C) ABOVE OR (2)(D) ABOVE,
A DULY COMPLETED AND SIGNED CERTIFICATE (THE FORM OF WHICH MAY BE
OBTAINED FROM THE TRUSTEE) MUST BE DELIVERED TO THE TRUSTEE.  PRIOR TO THE REGISTRATION OF ANY TRANSFER IN
ACCORDANCE WITH (2)(E) OR (F) ABOVE, THE COMPANY RESERVES THE RIGHT
TO REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS, CERTIFICATIONS OR OTHER
EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT THE
PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH THE SECURITIES ACT AND
APPLICABLE STATE SECURITIES LAWS.  NO
REPRESENTATION IS MADE AS TO THE AVAILABILITY OF ANY RULE 144 EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE INDENTURE CONTAINS A
PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE
IN VIOLATION OF THE FOREGOING RESTRICTONS.”

 

Members
of, or participants in, the Depository (“Agent Members”) shall have no
rights under this Indenture with respect to any Global Note held on their
behalf by the Depository, or the Trustee as its custodian 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,
including but not limited to notices and payments.  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. 
Any notice to be delivered to DTC (including, but not limited to, a
notice of redemption) may be delivered electronically by the Trustee in
accordance with applicable procedures of DTC.

 

SECTION 2.2.                                          Form of Execution and Authentication. 
An Officer shall sign the Notes for the Company by manual or facsimile
signature.

 

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

 

A
Note shall not be valid until authenticated by the manual signature of the
Trustee.  The signature of the Trustee
shall be conclusive evidence that the Note has been authenticated under this
Indenture.

 

The
Trustee shall authenticate (i) Initial Notes for original issue on the
Issue Date in an aggregate principal amount of $137,571,000, (ii) pursuant
to the Exchange Offer, Exchange Notes from time to time for issue only in
exchange for a like principal amount of Initial Notes and (iii) subject to
compliance with Sections 3.3 and 3.5, one or more series of Notes
(“Additional Notes”) for original issue after the Issue Date (such Notes
to be substantially in the form of Exhibit A) in an unlimited
amount (and if issued with a Private Placement Legend, the same principal
amount of Exchange Notes in exchange therefor upon consummation of an Exchange
Offer for such Additional Notes), in each case upon written order of the
Company in the form of an Officers’ Certificate, which Officers’ Certificate
shall, in the case 

 

34

 

of
any issuance of Additional Notes, certify that such issuance is in compliance
with Sections 3.3 and 3.5, together with an enforceability
opinion that contains customary exceptions. 
In addition, each such Officers’ Certificate shall specify the amount of
Notes to be authenticated, the date on which the Notes are to be authenticated,
whether the securities are to be Initial Notes, Exchange Notes or Additional
Notes and the aggregate principal amount of Notes outstanding on the date of
authentication, and shall further specify the amount of such Notes to be issued
as Global Notes or Definitive Notes. 
Such Notes shall initially be in the form of one or more Global Notes,
which (i) shall represent, and shall be denominated in an amount equal to
the aggregate principal amount of, the Notes to be issued, (ii) shall be
registered in the name of the Depositary or its nominee and (iii) shall be
delivered by the Trustee to the Depositary or pursuant to the Depositary’s
instruction.  All Notes issued under this
Indenture shall vote and consent together on all matters as one class and no
series of Notes shall have the right to vote or consent as a separate class on
any matter.

 

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

 

SECTION 2.3.                                          Registrar and Paying Agent. 
The Company shall maintain (i) an office or agency where Notes may
be presented for registration of transfer or for exchange (including any co-registrar,
the “Registrar”) and (ii) an office or agency where Notes may be
presented for payment (“Paying Agent”). 
The Registrar shall keep a register of the Notes and of their transfer
and exchange.  The Company may appoint
one or more co-registrars and one or more additional paying agents.  The term “Paying Agent” includes any
additional paying agent.  The Company may
change any Paying Agent, Registrar or co-registrar without prior notice to any
Holder of a Note.  The Company shall
notify the Trustee in writing and the Trustee shall notify the Holders of the
Notes of the name and address of any Agent not a party to this Indenture.  The Company may act as Paying Agent,
Registrar or co-registrar.  The Company
shall enter into an appropriate agency agreement with any Agent not a party to
this Indenture, which shall incorporate the provisions of the TIA.  The agreement shall implement the provisions
hereof that relate to such Agent.  The
Company shall notify the Trustee in writing of the name and address of any such
Agent.  If the Company fails to maintain
a Registrar or Paying Agent, or fails to give the foregoing notice, the Trustee
shall act as such, and shall be entitled to appropriate compensation in
accordance with Section 7.11.

 

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

 

35

 

SECTION 2.5.                                          Lists of Holders of the Notes. 
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
Holders of the Notes and shall otherwise comply with TIA § 312(a).  If the Trustee is not the Registrar, the
Company shall furnish to the Trustee at least seven Business Days before each
Interest Payment Date and at such other times as the Trustee may request in
writing a list in such form and as of such date as the Trustee may reasonably
require of the names and addresses of Holders of the Notes, including the
aggregate principal amount of the Notes held by each thereof, and the Company
shall otherwise comply with TIA § 312(a).

 

SECTION 2.6.                                          Transfer and Exchange.

 

(a)                                  Transfer and
Exchange of Global Notes.  A Global Note may not be
transferred as a whole except by the Depositary to a nominee of the Depositary,
by a nominee of the Depositary to the Depositary or to another nominee of the
Depositary, or by the Depositary or any such nominee to a successor Depositary
or a nominee of such successor Depositary. 
Global Notes shall be exchanged by the Company for Definitive Notes,
subject to any applicable laws, only if (i) the Company delivers to the
Trustee notice from the Depositary that (A) the Depositary is unwilling or
unable to continue to act as Depositary for the Global Notes or (B) the
Depositary is no longer a clearing agency registered under the Exchange Act
and, in either case, the Company fails to appoint a successor Depositary after
the date of such notice from the Depositary, (ii) upon request of the
Trustee or Holders of a majority of the aggregate principal amount of
outstanding Notes if there shall have occurred and be continuing an Event of
Default with respect to the Notes or (iii) if the Company notifies the
Trustee in writing that it elects to cause the issuance of Definitive
Notes.  In any such case, the Company
shall notify the Trustee in writing that, upon surrender by the Participants
and Indirect Participants of their interests in such Global Note, certificated
Notes shall be issued to each Person that such Participants, Indirect
Participants and DTC jointly identify as being the beneficial owner of the
related Notes.  Global Notes also may be
exchanged or replaced, in whole or in part, as provided in Sections 2.7
and 2.10.  Every Note
authenticated and delivered in exchange for, or in lieu of, a Global Note or
any portion thereof, pursuant to this Section 2.6 or Section 2.7
or 2.10 hereof, shall be authenticated  and delivered in the form
of, and shall be, a Global Note.  A
Global Note may not be exchanged for another Note other than as provided in
this Section 2.6.  However,
beneficial interests in a Global Note may be transferred and exchanged as
provided in Section 2.6(b), (c) or (i) below.

 

(b)                                 Transfer and
Exchange of Beneficial Interests in the Global Notes.  The transfer and exchange of beneficial
interests in the Global Notes shall be effected through the Depositary, in
accordance with the provisions hereof and the Applicable Procedures.  Beneficial interests in the Restricted Global
Notes shall be subject to restrictions on transfer comparable to those set
forth in this Indenture to the extent required by the Securities Act.  Transfers of beneficial interests in the
Global Notes also shall require compliance with the applicable subparagraphs
below.

 

(i)                                         Transfer of
Beneficial Interests in the Same Global Note.  Beneficial interests in any Restricted Global
Note may be transferred to Persons who take delivery thereof in the form of a
beneficial interest in the same Restricted Global Note in accordance with the
transfer restrictions set forth in the Private Placement Legend; provided, however,
that prior to the expiration of the Restricted Period, no transfer of
beneficial interests in a Regulation S Global Note may be made to a U.S. Person
or for the account or benefit of a U.S. Person unless permitted by applicable
law and made in compliance with Sections 2.6(b) (ii) and (iii) below.  Beneficial interests in any Unrestricted
Global Note may be transferred to Persons who take delivery thereof in the form
of a beneficial interest in an Unrestricted Global Note.  No written orders or instructions shall be
required to be delivered 

 

36

 

to the Registrar to effect the transfers described in this Section 2.6(b)(i) unless
specifically stated above.

 

(ii)                                      All Other
Transfers and Exchanges of Beneficial Interests in Global Notes.  In connection with all transfers and
exchanges of beneficial interests that are not subject to Section 2.6(b)(i) above,
the transferor of such beneficial interest must deliver to the Registrar either
(A) (1) a written order from a Participant or an Indirect Participant
given to the Depositary in accordance with the Applicable Procedures directing
the Depositary to credit or cause to be credited a beneficial interest in
another Global Note in an amount equal to the beneficial interest to be
transferred or exchanged and (2) instructions given in accordance with the
Applicable Procedures containing information regarding the Participant account
to be credited with such increase, or (B) (1) if Definitive Notes are
at such time permitted to be issued pursuant to this Indenture, a written order
from a Participant or an Indirect Participant given to the Depositary in
accordance with the Applicable Procedures directing the Depositary to cause to
be issued a Definitive Note in an amount equal to the beneficial interest to be
transferred or exchanged and (2) instructions given by the Depositary to
the Registrar containing information regarding the Person in whose name such
Definitive Note shall be registered to effect the transfer or exchange referred
to in (1) above.  Upon consummation
of an Exchange Offer by the Company in accordance with Section 2.6(i) below,
the requirements of this Section 2.6(b)(ii) shall be deemed to have
been satisfied upon receipt by the Registrar of the instructions contained in
the Letter of Transmittal delivered by the holder of such beneficial interests
in the Restricted Global Notes (or delivered in accordance with Applicable Procedures).  Upon satisfaction of all of the requirements
for transfer or exchange of beneficial interests in Global Notes contained in
this Indenture and the Notes or otherwise applicable under the Securities Act,
the Trustee shall adjust the principal amount of the relevant Global Note(s) pursuant
to Section 2.6 (m) below.

 

(iii)                                   Transfer of
Beneficial Interests to Another Restricted Global Note.  A beneficial interest in any Restricted
Global Note may be transferred to a Person who takes  delivery thereof in the form
of a beneficial interest in another Restricted Global Note if the transfer
complies with the requirements of Section 2.6(b)(ii) above and the
Registrar receives the following:

 

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

 

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

 

(C)                                if the
transferee will take delivery in the form of a beneficial interest in the IAI
Global Note, then the transferor must deliver a certificate in the form of Exhibit B
hereto, including the certifications, certificates and Opinion of Counsel
required by item (3)(d) thereof, if applicable.

 

(iv)                                  Transfer and
Exchange of Beneficial Interests in a Restricted Global Note for Beneficial
Interests in an Unrestricted Global Note.  A beneficial interest in any Restricted
Global Note may be exchanged by any holder thereof for a beneficial interest in
an Unrestricted Global Note or transferred to a Person who takes delivery
thereof in the form of a beneficial interest in an Unrestricted Global Note if
the exchange or transfer complies with the requirements of Section 2.6(b)(ii) above,
and

 

37

 

(A)                              such exchange
or transfer is effected pursuant to the Exchange Offer in accordance with the
Registration Rights Agreement and the holder of the beneficial interest to be
transferred, in the case of an exchange, or the transferee, in the case of a
transfer, certifies in the applicable Letter of Transmittal that it is not (1) a
Broker-Dealer, (2) a Person participating in the distribution of the
Exchange Notes or (3) a Person who is an “affiliate” (as defined in Rule 144)
of the Company;

 

(B)                                such transfer
is effected pursuant to a Shelf Registration Statement in accordance with the
Registration Rights Agreement;

 

(C)                                such transfer
is effected by a Broker-Dealer pursuant to an Exchange Offer Registration
Statement and such Broker-Dealer complies with the terms of the Registration
Rights Agreement; or

 

(D)                               the Registrar
receives the following:

 

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

 

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

 

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

 

If
any such transfer is effected pursuant to subparagraph (B) or (D) above
at a time when an Unrestricted Global Note has not yet been issued, the Company
shall issue and, upon receipt of an authentication order in accordance with Section 2.2,
the Trustee shall authenticate one or more Unrestricted Global Notes in an
aggregate principal amount equal to the aggregate principal amount of
beneficial interests transferred pursuant to subparagraph (B) or (D) above.

 

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

 

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

 

(i)             Transfer and
Exchange of Beneficial Interests in Restricted Global Notes for Restricted
Definitive Notes.  Subject to Section 2.6(a),
if any holder of a beneficial interest in a Restricted Global Note proposes to
exchange such beneficial interest for a Restricted Definitive Note or to
transfer 

 

38

 

such
beneficial interest to a Person who takes delivery thereof in the form of a
Restricted Definitive Note, then upon receipt by the Registrar of the following
documentation:

 

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

 

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

 

(C)                                if such
beneficial interest is being transferred to a Non-U.S. Person in an offshore
transaction in accordance with Rule 903 or Rule 904 under the
Securities Act, a certificate to the effect set forth in Exhibit B
hereto, including the certifications in item (2) thereof;

 

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

 

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

 

the
Trustee shall cause the aggregate principal amount of the applicable Global
Note to be reduced accordingly pursuant to Section 2.6(m) below, and
the Company shall execute and the Trustee shall authenticate and deliver to the
Person designated in the certificate a Restricted Definitive Note in the
appropriate principal amount.  Any
Restricted Definitive Note issued in exchange for a beneficial interest in a
Restricted Global Note pursuant to this Section 2.6(c) shall be
registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest shall instruct the
Registrar through instructions from the Depositary and the Participant or
Indirect Participant.  The Trustee shall
deliver such Restricted Definitive Notes to the Persons in whose names such
Notes are so registered.  Any Restricted
Definitive Note issued in exchange for a beneficial interest in a Restricted
Global Note pursuant to this Section 2.6(c)(i)shall bear the Private
Placement Legend and shall be subject to all restrictions on transfer contained
therein.

 

(ii)             Transfer and
Exchange of Beneficial Interests in Restricted Global Notes for Unrestricted
Definitive Notes.  Subject to Section 2.6(a),
a holder of a beneficial interest in a Restricted Global Note may exchange such
beneficial interest for an Unrestricted Definitive Note or may transfer such
beneficial interest to a Person who takes delivery thereof in the form of an
Unrestricted Definitive Note only if:

 

(A)                              such exchange
or transfer is effected pursuant to an Exchange Offer in accordance with the
Registration Rights Agreement and the holder of such beneficial interest, in
the case of an exchange, or the transferee, in the case of a transfer,
certifies in the applicable Letter of Transmittal that it is not (1) a
Broker-Dealer, (2) a Person participating in the distribution of the
Exchange Notes or (3) a Person who is an “affiliate” (as defined in Rule 144)
of the Company;

 

39

 

(B)                                such transfer
is effected pursuant to a Shelf Registration Statement in accordance with the
Registration Rights Agreement;

 

(C)                                such transfer
is effected by a Broker-Dealer pursuant to the Exchange Offer Registration
Statement and such Broker-Dealer complies with the terms of the Registration
Rights Agreement; or

 

(D)                               the Registrar
receives the following:

 

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

 

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

 

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

 

(iii)  Transfer and
Exchange of Beneficial Interests in Unrestricted Global Notes for Unrestricted
Definitive Notes.  Subject to Section 2.6(a),
if any holder of a beneficial interest in an Unrestricted Global Note proposes
to exchange such beneficial interest for a Definitive Note or to transfer such
beneficial interest to a Person who takes delivery thereof in the form of a
Definitive Note, then, upon satisfaction of the conditions set forth in Section 2.6(b)(ii) above,
the Trustee shall cause the aggregate principal amount of the applicable Global
Note to be reduced accordingly pursuant to Section 2.6(m) below, and
the Company shall execute and the Trustee shall authenticate and deliver to the
Person designated in the certificate a Definitive Note in the appropriate
principal amount.  Any Definitive Note
issued in exchange for a beneficial interest pursuant to this Section 2.6(c)(iii) shall
be registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest shall instruct the
Registrar through instructions from the Depositary and the Participant or
Indirect Participant.  The Trustee shall
deliver such Definitive Notes to the Persons in whose names such Notes are so
registered.  Any Definitive Note issued
in exchange for a beneficial interest pursuant to this Section 2.6(c)(iii) shall
not bear the Private Placement Legend.

 

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

 

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

 

40

 

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

 

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

 

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

 

(D)                               if such
Restricted Definitive Note is being transferred to an Institutional Accredited
Investor in reliance on an exemption from the registration requirements of the
Securities Act other than those listed in subparagraphs (B) and (C) above,
a certificate to the effect set forth in Exhibit B hereto, including the
certifications, certificates and Opinion of Counsel required by item (3)(d) thereof,
if applicable.

 

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

 

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

 

(A)                              such exchange
or transfer is effected pursuant to the Exchange Offer in accordance with the
Registration Rights Agreement and the Holder, in the case of an exchange, or
the transferee, in the case of a transfer, certifies in the applicable Letter
of Transmittal that it is not (1) a Broker-Dealer, (2) a Person
participating in the distribution of the Exchange Notes or (3) a Person
who is an “affiliate” (as defined in Rule 144) of the Company;

 

(B)                                such transfer
is effected pursuant to a Shelf Registration Statement in accordance with the
Registration Rights Agreement;

 

(C)                                such transfer
is effected by a Broker-Dealer pursuant to an Exchange Offer Registration
Statement and such Broker-Dealer complies with the terms of the Registration
Rights Agreement; or

 

(D)                               the Registrar
receives the following:

 

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

 

(z)                                   if the Holder
of such Definitive Notes proposes to transfer such Notes to a Person who shall
take delivery thereof in the form of a beneficial interest in an Unrestricted 

 

41

 

Global
Note, a certificate from such Holder in the form of Exhibit B hereto,
including the applicable certifications in item (4) thereof;

 

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

 

Upon satisfaction of the
conditions of any of the subparagraphs in this Section 2.6(d)(ii), the
Trustee shall cancel the Definitive Notes and increase or cause to be increased
the aggregate principal amount of the Unrestricted Global Note.

 

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

 

If any such exchange or
transfer from an Unrestricted Definitive Note or a Restricted Definitive Note,
as the case may be, to a beneficial interest is effected pursuant to Section 2.6(d)(ii)(B),
(d)(ii)(D) or (d)(iii) above at a time when an Unrestricted Global
Note has not yet been issued, the Company shall issue and, upon receipt of an
authentication order in accordance with Section 2.2, the Trustee
shall authenticate one or more Unrestricted Global Notes in an aggregate
principal amount equal to the principal amount of Unrestricted Definitive Notes
or Restricted Definitive Notes, as the case may be, so transferred.

 

(e)                                  Transfer and
Exchange of Definitive Notes for Definitive Notes.  Upon request by a Holder of Definitive Notes
and such Holder’s compliance with the provisions of this Section 2.6(e),
the Registrar shall register the transfer or exchange of Definitive Notes.  Prior to such registration of transfer or
exchange, the requesting Holder shall present or surrender to the Registrar the
Definitive Notes duly endorsed or accompanied by a written instruction of
transfer in form satisfactory to the Registrar duly executed by such Holder or
its attorney, duly authorized in writing. 
In addition, the requesting Holder shall provide any additional
certifications, documents and information, as applicable, required pursuant to
the following provisions of this Section 2.6(e).

 

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

 

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

 

(B)                                if the transfer
will be made pursuant to Rule 903 or Rule 904, then the transferor
must deliver a certificate in the form of Exhibit B hereto,
including the certifications in item (2) thereof; and

 

42

 

(C)                                if the transfer
will be made pursuant to any other exemption from the registration requirements
of the Securities Act, then the transferor must deliver a certificate in the
form of Exhibit B hereto, including, if the Registrar so requests,
a certification or Opinion of Counsel in form reasonably acceptable to the
Company to the effect that such transfer is in compliance with the Securities
Act.

 

(g)                                 Transfer and
Exchange of Restricted Definitive Notes for Unrestricted Definitive Notes.  Any Restricted Definitive Note may be
exchanged by the Holder thereof for an Unrestricted Definitive Note or
transferred to a Person or Persons who take delivery thereof in the form of an
Unrestricted Definitive Note if

 

(A)                              such exchange
or transfer is effected pursuant to an Exchange Offer in accordance with the
Registration Rights Agreement and the Holder, in the case of an exchange, or
the transferee, in the case of a transfer, certifies in the applicable Letter
of Transmittal that it is not (1) a Broker-Dealer, (2) a Person participating
in the distribution of the Exchange Notes or (3) a Person who is an
“affiliate” (as defined in Rule 144) of the Company;

 

(B)                                any such
transfer is effected pursuant to a Shelf Registration Statement in accordance
with the Registration Rights Agreement;

 

(C)                                any such
transfer is effected by a Broker-Dealer pursuant to an Exchange Offer
Registration Statement and such Broker-Dealer complies with the terms of the
Registration Rights Agreement; or

 

(D)                               the Registrar
receives the following:

 

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

 

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

 

and, in each such case set
forth in this subparagraph (D), if the Registrar so requests, an Opinion of
Counsel in form reasonably acceptable to the Company to the effect that such
exchange or transfer is in compliance with the Securities Act and that the
restrictions on transfer contained in this Indenture and in the Private
Placement Legend are no longer required in order to maintain compliance with
the Securities Act.

 

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

 

(i)                                     Exchange Offer.  Upon the occurrence of an Exchange Offer in
accordance with the Registration Rights Agreement, the Company shall issue and,
upon receipt of an authentication order 

 

43

 

in accordance with Section 2.2
hereof, the Trustee shall authenticate (i) one or more Unrestricted Global
Notes in an aggregate principal amount equal to the principal amount of the
beneficial interests in the Restricted Global Notes tendered for acceptance by
Persons that make the certifications in the applicable Letters of Transmittal
required by Section 2(a) of the Registration Rights Agreement, and
accepted for exchange in an Exchange Offer and (ii) subject to Section 2.6(a) Definitive
Notes in an aggregate principal amount equal to the principal amount of the
Restricted Definitive Notes accepted for exchange in an Exchange Offer.  Concurrently with the issuance of such Notes,
the Trustee shall cause the aggregate principal amount of the applicable
Restricted Global Notes to be reduced accordingly, and the Company shall
execute and the Trustee shall authenticate and deliver to the Persons
designated by the Holders of Restricted Definitive Notes so accepted
Unrestricted Definitive Notes in the appropriate principal amounts.

 

(j)                                     Reserved.

 

(k)                                  Private
Placement Legend.

 

(A)                              Except as
permitted by subparagraph (B) below, each Global Note (other than an
Unrestricted Global Note) and each Definitive Note (and all Notes issued in
exchange therefor or substitution thereof) shall bear the Private Placement
Legend.

 

(B)                                Notwithstanding
the foregoing, any Global Note or Definitive Note issued pursuant to
subparagraph (b)(iv), (c)(ii), (c)(iii), (d)(ii), (d)(iii), (e)(ii), (e)(iii) or
(f) of this Section 2.6 (and all Notes issued in exchange
therefor or substitution thereof) shall not bear the Private Placement Legend.

 

(l)                                     Global Note
Legend.  Each Global Note shall bear
the Global Note Legend.

 

(m)                               Cancellation
and/or Adjustment of Global Notes.  At such time as all beneficial interests in a
particular Global Note have been exchanged for Definitive Notes or a particular
Global Note has been redeemed, repurchased or canceled in whole and not in
part, each such Global Note shall be returned to or retained and canceled by
the Trustee in accordance with Section 2.11 hereof.  At any time prior to such cancellation, if
any beneficial interest in a Global Note is exchanged for or transferred to a
Person who will take delivery thereof in the form of a beneficial interest in
another Global Note or for Definitive Notes, the principal amount of Notes
represented by such Global Note shall be reduced accordingly and an endorsement
shall be made on such Global Note by the Trustee or by the Depositary at the
direction of the Trustee to reflect such reduction; and if the beneficial
interest is being exchanged for or transferred to a Person who will take
delivery thereof in the form of a beneficial interest in another Global Note,
such other Global Note shall be increased accordingly and an endorsement shall
be made on such Global Note by the Trustee or by the Depositary at the
direction of the Trustee to reflect such increase.

 

(n)                                 General
Provisions Relating to Transfers and Exchanges.

 

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

 

(ii)          No service charge shall be
made to a holder of a beneficial interest in a Global Note or to a Holder of a
Definitive Note for any registration of transfer or exchange, but the Company
may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable 

 

44

 

in connection therewith
(other than any such transfer taxes or similar governmental charge payable upon
exchange or transfer pursuant to Sections 2.2, 2.10, 3.7, 3.9
and 5.7).

 

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

 

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

 

(v)                   The Company shall not be
required (A) to issue, to register the transfer of or to exchange any
Notes during a period beginning at the opening of business on a Business Day 15
days before the mailing of a notice of redemption of Notes and ending at the
close of business on the day of such mailing or (B) to register the
transfer of or to exchange any Note so selected for redemption in whole or in
part, except the unredeemed portion of any Note being redeemed in part.

 

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

 

(vii)             The Trustee shall
authenticate Global Notes and Definitive Notes in accordance with the
provisions of Section 2.2.

 

(viii)          All certifications,
certificates and Opinions of Counsel required to be submitted to the Registrar
pursuant to this Section 2.6 to effect a registration of transfer
or exchange may be submitted by facsimile.

 

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

 

(x)                     Neither the Trustee nor any
Agent shall have any responsibility for any actions taken or not taken by the
Depositary.

 

SECTION 2.7.                                          Replacement Notes.

 

If any mutilated Note is
surrendered to the Trustee, or the Company and the Trustee receive evidence to
their satisfaction of the destruction, loss or theft of any Note, the Company
shall issue and the Trustee, upon the written order of the Company signed by
two Officers of the Company, shall authenticate a replacement Note if the
Trustee’s requirements for replacements of Notes are met.  The Holder must supply indemnity or security
sufficient in the judgment of the Trustee and the Company to 

 

45

 

protect the Company, the Trustee, any Agent
or any authenticating agent from any loss which any of them may suffer if a
Note is replaced.  The Company and the
Trustee may charge for their fees and expenses in replacing a Note including
amounts to cover any tax, assessment, fee or other governmental charge that may
be imposed in relation thereto.

 

Every replacement Note is an
obligation of the Company.

 

SECTION 2.8.                                          Outstanding Notes.

 

The Notes outstanding at any
time are all the Notes authenticated by the Trustee except for those canceled
by it, those delivered to it for cancellation 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 unless the
Trustee receives proof satisfactory to it that the replaced Note is held by a
protected purchaser.

 

If the principal amount of
any Note is considered paid under Section 3.1 hereof, it shall
cease to be outstanding and interest on it shall cease to accrue.

 

Subject to Section 2.9,
a Note does not cease to be outstanding because the Company, a Subsidiary of
the Company or an Affiliate of the Company holds the Note.

 

SECTION 2.9.                                          Treasury Notes. 
In determining whether the Holders of the required principal amount of
Notes have concurred in any direction, waiver or consent, Notes owned by the
Company, any Subsidiary of the Company or any Affiliate of the Company shall be
considered as though not outstanding, except that for purposes of determining
whether the Trustee shall be protected in relying on any such direction, waiver
or consent, only Notes which a Trust Officer actually knows to be so owned
shall be so considered.  Notwithstanding
the foregoing, Notes that are to be acquired by the Company, any Subsidiary of
the Company or an Affiliate of the Company pursuant to an exchange offer,
tender offer or other agreement shall not be deemed to be owned by the Company,
a Subsidiary of the Company or an Affiliate of the Company until legal title to
such Notes passes to the Company, such Subsidiary or such Affiliate, as the
case may be.

 

SECTION 2.10.                                    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 of Definitive Notes but may have variations that the Company and the
Trustee consider appropriate for temporary Notes.  Without unreasonable delay, the Company shall
prepare and the Trustee, upon receipt of the written order of the Company
signed by two Officers of the Company, shall authenticate Definitive Notes in
exchange for temporary Notes.  Until such
exchange, temporary Notes shall be entitled to the same rights, benefits and
privileges as Definitive Notes.

 

SECTION 2.11.                                    Cancellation. 
The Company at any time may deliver Notes to the Trustee for
cancellation.  The Registrar and Paying
Agent shall forward to the Trustee any Notes surrendered to them for registration
of transfer, exchange or payment.  The
Trustee shall cancel all Notes surrendered for registration of transfer,
exchange, payment, replacement or cancellation and shall dispose of all
canceled Notes in its customary manner (subject to the record retention
requirements of the Exchange Act), unless the Company directs copies of
canceled Notes to be returned to it.  The
Company may not issue new Notes to replace Notes that it has redeemed or paid
or that have been delivered to the Trustee for cancellation.

 

46

 

SECTION 2.12.                                    Payment of Interest; Defaulted Interest. 
Interest on any Note which is payable, and is punctually paid or duly
provided for, on any interest payment date shall be paid to the Person in whose
name such Note (or one or more predecessor Notes) is registered at the close of
business on the regular Record Date for such interest at the office or agency
of the Company maintained for such purpose pursuant to Section 2.3.

 

Any interest on any Note
which is payable, but is not paid when the same becomes due and payable and
such nonpayment continues for a period of 30 days shall forthwith cease to be
payable to the Holder on the regular Record Date by virtue of having been such
Holder, and such defaulted interest and (to the extent lawful) interest on such
defaulted interest at the rate borne by the Notes (such defaulted interest and
interest thereon herein collectively called “Defaulted Interest”) shall
be paid by the Company, at its election in each case, as provided in
clause (a) or (b) below:

 

(a)                                  The Company may
elect to make payment of any Defaulted Interest to the Persons in whose names
the Notes (or their respective predecessor Notes) are registered at the close
of business on a Special Record Date (as defined below) for the payment of such
Defaulted Interest, which shall be fixed in the following manner.  The Company shall notify the Trustee in
writing of the amount of Defaulted Interest proposed to be paid on each Note
and the date (not less than 30 days after such notice unless a shorter period
shall be acceptable to the Trustee) of the proposed payment (the “Special
Interest Payment Date”), and at the same time the Company shall deposit
with the Trustee an amount of money equal to the aggregate amount proposed to
be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the
Persons entitled to such Defaulted Interest as in this clause provided.  Thereupon the Trustee shall fix a record date
(the “Special Record Date”) for the payment of such Defaulted Interest,
which shall be not more than 15 days and not less than 10 days prior to the
Special Interest Payment Date and not less than 10 days after the receipt by
the Trustee of the notice of the proposed payment.  The Trustee shall promptly notify the Company
of such Special Record Date, and in the name and at the expense of the Company,
shall cause notice of the proposed payment of such Defaulted Interest and the
Special Record Date and Special Interest Payment Date therefor to be given in
the manner provided for in Section 12.1, not less than 10 days
prior to such Special Record Date. 
Notice of the proposed payment of such Defaulted Interest and the
Special Record Date and Special Interest Payment Date therefor having been so
given, such Defaulted Interest shall be paid on the Special Interest Payment
Date to the Persons in whose names the Notes (or their respective predecessor Notes)
are registered at the close of business on such Special Record Date and shall
no longer be payable pursuant to the following clause (b).

 

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

 

Notwithstanding the
foregoing, if any such Interest Payment Date (other than an Interest Payment
Date at maturity) would otherwise be a day that is not a Business Day, then the
Interest Payment Date shall be postponed to the next succeeding Business Day
(except if that Business Day falls in the next succeeding calendar month, then
interest shall be paid on the immediately preceding Business Day).  If the maturity date of the Notes is a day
that is not a Business Day, all payments to be made on such day 

 

47

 

shall be made on the next succeeding Business
Day, with the same force and effect as if made on the maturity date.  In either of such cases, no additional interest
shall be payable as a result of such delay in payment.

 

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

 

SECTION 2.13.                                    CUSIP Numbers. 
The Company in issuing the Notes may use “CUSIP” numbers (if then
generally in use).  The Trustee shall not
be responsible for the use of CUSIP numbers, and the Trustee makes no
representation as to their correctness as printed on any Note or notice to
Holders.  The Company shall promptly
notify the Trustee in writing of any change in the CUSIP numbers.

 

SECTION 2.14.                                    Reserved.

 

SECTION 2.15.                                    Record Date. 
The Record Date for purposes of determining the identity of Holders of
the Notes entitled to vote or consent to any action by vote or consent
authorized or permitted under this Indenture shall be determined as provided
for in TIA § 316(c).

 

ARTICLE III

Covenants

 

SECTION 3.1.                                          Payment of Notes. 
The Company shall promptly pay the principal of, premium, if any, and
interest on the Notes on the dates and in the manner provided in the Notes and
in this Indenture.  Principal, premium,
if any, and interest shall be considered paid on the date due if on such date
the Trustee or the Paying Agent holds in accordance with this Indenture money
sufficient to pay all principal, premium, if any, and interest then due and the
Trustee or the Paying Agent, as the case may be, is not prohibited from paying
such money to the Holders on that date pursuant to the terms of this Indenture.

 

The Company shall pay
interest on overdue principal at the rate specified therefor in the Notes.

 

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

 

SECTION 3.2.                                          SEC Reports. 
Notwithstanding that the Company may not be subject to the reporting
requirements of Section 13 or 15(d) of the Exchange Act, the Company
shall file with the SEC (to the extent the SEC will accept such filings) and
provide the Trustee and Noteholders with such annual reports and such
information, documents and other reports as are specified in Sections 13
and 15(d) of the Exchange Act and applicable to a U.S. corporation subject
to such Sections, such information, documents and other reports to be so filed
and provided at the times specified for the filings of such information,
documents and reports under such Sections; provided,
however, that so long as Parent
is a Guarantor of the Notes and complies with the requirements of
Rule 3-10 of Regulation S-X promulgated by the SEC (or any successor
provision), the reports, information and other documents required to be filed 

 

48

 

and provided as described hereunder may, at the
Company’s option, be filed by and be those of Parent rather than the Company.

 

Additionally, the Company
agrees that it shall not take any action for the purpose of causing the SEC not
to accept any such filings. If, notwithstanding the foregoing, the SEC will not
accept the Company’s filings for any reason, the Company shall post the
reports, information and documents referred to in this paragraph on its website
within the time periods that would apply if the Company were required to file
those reports with the SEC.

 

At any time that any of the
Company’s Subsidiaries are Unrestricted Subsidiaries, then the quarterly and
annual financial information required by the preceding paragraphs shall include
a reasonably detailed presentation, either on the face of the financial statements
or in the footnotes thereto, and in “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” of the Company and its
Restricted Subsidiaries separate from the financial condition and results of
operations of the Unrestricted Subsidiaries of the Company.

 

In addition, the Company
shall furnish to the Holders of the Notes and to prospective investors, upon
the requests of such Holders, any information required to be delivered pursuant
to Rule 144A(d)(4) under the Securities Act so long as the Notes are
not freely transferable under the Securities Act.

 

SECTION 3.3.                                          Limitation on Indebtedness.

 

(a)                                  The Company
shall not, and shall not permit any of its Restricted Subsidiaries to, Incur,
directly or indirectly, any Indebtedness; provided,
however, that the Company and the
Subsidiary Guarantors shall be entitled to Incur Indebtedness (including,
without limitation, Indebtedness Incurred under a Credit Agreement) if, on the
date of such Incurrence and after giving effect thereto on a pro forma basis,
the Consolidated Coverage Ratio of the Company exceeds 2 to 1.

 

(b)                                 Notwithstanding
the provisions of Section 3.3(a), the Company and its Restricted
Subsidiaries shall be entitled to Incur any or all of the following
Indebtedness:

 

(i)                               (x) Indebtedness
Incurred by the Company or any Subsidiary Guarantor pursuant to the Credit
Agreement; provided, however, that, immediately after giving
effect to any such Incurrence, the aggregate principal amount of all
Indebtedness Incurred under this clause (i) and clause (xiv) of
this Section 3.3(b) and then outstanding does not
exceed $50.0 million less the aggregate sum of all principal payments
actually made from time to time with respect to such Indebtedness pursuant to a
prepayment of Indebtedness and permanent reduction in the commitments under the
Credit Agreement pursuant to Section 3.7, and (y) Indebtedness
represented by Hedging Obligations entered into in the ordinary course of
business with Persons who were lenders under the Credit Agreement or their
Affiliates at the time such Hedging Obligations were entered into and Cash
Management Obligations;

 

(ii)                            Indebtedness
Incurred by the Company or any Subsidiary Guarantor representing reimbursement
obligations in respect of letters of credit in an aggregate principal amount
outstanding not to exceed $15.0 million;

 

(iii)                         Indebtedness
owed to and held by the Company or any of its Restricted Subsidiaries; provided, however,
that (A) any subsequent issuance or transfer of any Capital Stock which
results in 

 

49

 

any
such Restricted Subsidiary ceasing to be a Restricted Subsidiary or any
subsequent transfer of such Indebtedness (other than to the Company or a
Restricted Subsidiary of the Company) shall be deemed, in each case, to
constitute the Incurrence of such Indebtedness by the obligor thereon, (B) if
the Company is the obligor on such Indebtedness, such Indebtedness is expressly
subordinated to the prior payment in full in cash of all obligations with
respect to the Notes and (C) if a Subsidiary Guarantor is the obligor on
such Indebtedness, such Indebtedness is expressly subordinated to the prior
payment in full in cash of all obligations of such obligor with respect to its
Subsidiary Guaranty;

 

(iv)                        the Notes, any
Additional Notes issued on the Final Settlement Date and the Exchange Notes
(other than any other Additional Notes) and all Subsidiary Guarantees thereof;

 

(v)                           Indebtedness of
the Company and its Subsidiaries outstanding on the Issue Date (other than
Indebtedness described in clause (i), (ii), (iii) or (iv));

 

(vi)                        Indebtedness of
a Restricted Subsidiary of the Company Incurred and outstanding on or prior to
the date on which such Subsidiary became a Restricted Subsidiary of the Company
or was acquired by the Company or a Restricted Subsidiary of the Company (other
than Indebtedness Incurred in connection with, or to provide all or any portion
of the funds or credit support utilized to consummate, the transaction or
series of related transactions pursuant to which such Subsidiary became a
Subsidiary or was acquired by the Company or a Restricted Subsidiary of the
Company); provided, however, that on the date of such
acquisition and after giving pro forma effect thereto, either (x) the
Company would have been able to Incur at least $1.00 of additional Indebtedness
pursuant to Section 3.3(a); or (y) the Consolidated Coverage
Ratio would be equal to or greater than the Consolidated Coverage Ratio
immediately prior to such acquisition;

 

(vii)                     Refinancing
Indebtedness in respect of Indebtedness Incurred pursuant to Section 3.3(a) or
pursuant to clause (iv), (v), (vi) or this clause (vii); provided, however,
that to the extent such Refinancing Indebtedness directly or indirectly
Refinances Indebtedness of a Subsidiary Incurred pursuant to clause (vi),
such Refinancing Indebtedness shall be Incurred only by such Subsidiary;

 

(viii)                  Hedging
Obligations entered into in the ordinary course of business to purchase any raw
material or other commodity or to hedge risks or reduce costs with respect to
the interest rate, currency, commodity or weather exposure of the Company or
any Restricted Subsidiary of the Company and not for speculative purposes;

 

(ix)                          (x) obligations
in respect of performance bonds, bankers’ acceptances, workers’ compensation
claims, surety, bid or appeal bonds, completion guarantees and payment
obligations in connection with self-insurance or similar obligations provided
by the Company or any Restricted Subsidiary of the Company in the ordinary
course of business and (y) obligations owed to (including in respect of
letters of credit for the benefit of) any Person in connection with workers’
compensation, health, disability or other employee benefits or property,
casualty or liability insurance provided by such Person to the Company or any
Restricted Subsidiary of the Company pursuant to reimbursement or
indemnification obligations to such Person, in each case, Incurred in the
ordinary course of business;

 

(x)                             Indebtedness
arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument drawn against insufficient funds in the ordinary
course of business; 

 

50

 

provided, however, that such Indebtedness is extinguished within five
Business Days of its Incurrence;

 

(xi)                          Indebtedness
consisting of any Guarantee by the Company or a Subsidiary Guarantor of
Indebtedness Incurred pursuant to Section 3.3(a) or pursuant
to clause (i), (ii), (iii), (iv), (v), (viii), (ix), (x), (xv) or
pursuant to clause (vii) to the extent the Refinancing Indebtedness
Incurred thereunder directly or indirectly Refinances Indebtedness Incurred
pursuant to Section 3.3(a) or pursuant to clause (iv) or
(v);

 

(xii)                       Indebtedness
(including Capital Lease Obligations) Incurred by the Company or any of its
Restricted Subsidiaries to finance the purchase, lease or improvement of
property (real or personal) or equipment (whether through the direct purchase
of assets or the Capital Stock of any Person owning such assets) within
180 days of such purchase, lease or improvement, and any Refinancing
Indebtedness Incurred to Refinance such Indebtedness, in an aggregate principal
amount which, when added together with the amount of Indebtedness Incurred pursuant
to this clause (xii) and then outstanding, does not exceed
$10.0 million;

 

(xiii)                    Indebtedness of
Foreign Subsidiaries in an aggregate principal amount which, when taken
together with all other Indebtedness of Foreign Subsidiaries Incurred pursuant
to this clause (xiii) and then outstanding, does not exceed
$5.0 million;

 

(xiv)                   Non-Recourse
Securitization Entity Indebtedness Incurred by a Securitization Entity in
connection with a Qualified Securitization Transaction; provided, however,
that at the time of such Incurrence, the Company or any Restricted Subsidiary
of the Company would have been able to Incur the same amount of Indebtedness
pursuant to clause (i) above;

 

(xv)                      Indebtedness
incurred by the Company and any Subsidiary Guarantor under the $300.0 million
aggregate principal amount of First Lien Notes;

 

(xvi)                   Indebtedness
Incurred by the Company, the proceeds of which are used to repay, refinance,
repurchase, redeem, defease or retire (substantially concurrently with such
Incurrence), or which is issued in exchange for, Parent’s 101⁄2% Senior Discount
Notes due 2012 in an amount not to exceed the aggregate principal amount of
Parent’s 101⁄2% Senior Discount Notes due 2012 repaid, refinanced, repurchased,
redeemed, defeased, retired or exchanged, as applicable, plus any fees,
expenses or premiums associated therewith; and

 

(xvii)                Indebtedness of
the Company or of any of its Restricted Subsidiaries in an aggregate principal
amount which, when taken together with all other Indebtedness of the Company and
its Restricted Subsidiaries outstanding on the date of such Incurrence (other
than Indebtedness permitted by clauses (i) through (xvi) above
or Section 3.3(a)) does not exceed $25.0 million.

 

(c)                                  Notwithstanding
the foregoing, neither the Company nor any Subsidiary Guarantor shall be
entitled to incur any Indebtedness pursuant to Section 3.3(b) if
the proceeds thereof are used, directly or indirectly, to Refinance any
Subordinated Obligations of the Company or any Subsidiary Guarantor unless such
Indebtedness shall be subordinated to the Notes or the applicable Subsidiary
Guaranty to at least the same extent as such Subordinated Obligations.

 

51

 

(d)           For purposes of determining
compliance with this Section 3.3:

 

(i)      in the
event that an item of Indebtedness (or any portion thereof) meets the criteria
of more than one of the types of Indebtedness described in Section 3.3(b) or
could be incurred pursuant to Section 3.3(a), the Company, in its
sole discretion, shall classify such item of Indebtedness (or any portion
thereof) at the time of Incurrence and shall only be required to include the
amount and type of such Indebtedness in Section 3.3(a) or 3.3(b);

 

(ii)     the
Company shall be entitled to divide and classify an item of Indebtedness in
more than one of the types of Indebtedness described above; and

 

(iii)    following
the date of its Incurrence, any Indebtedness originally classified as Incurred
pursuant to one of the clauses in Section 3.3(b) above (other
than pursuant to Section 3.3(b)(i)) may later be reclassified by
the Company such that it shall be deemed as having been Incurred pursuant to Section 3.3(a) or
another clause in Section 3.3(b) above, as applicable, to the
extent that such reclassified Indebtedness could be Incurred pursuant to such
new paragraph or clause at the time of such reclassification.

 

(e)           For purposes of determining
compliance with any U.S. dollar-denominated restriction on the Incurrence of
Indebtedness where the Indebtedness Incurred is denominated in a different
currency, the amount of such Indebtedness shall be the U.S. Dollar Equivalent
determined on the date of the Incurrence of such Indebtedness; provided, however,
that if any such Indebtedness denominated in a different currency is subject to
a Currency Agreement with respect to U.S. dollars covering all principal,
premium, if any, and interest payable on such Indebtedness, the amount of such
Indebtedness expressed in U.S. dollars shall be as provided in such Currency
Agreement.  The principal amount of any
Refinancing Indebtedness being Refinanced shall be the U.S. Dollar Equivalent
of the Indebtedness Refinanced, except to the extent that (i) such U.S.
Dollar Equivalent was determined based on a Currency Agreement, in which case
the Refinancing Indebtedness shall be determined in accordance with the
preceding sentence, and (ii) the principal amount of the Refinancing
Indebtedness exceeds the principal amount of the Indebtedness being Refinanced,
in which case the U.S. Dollar Equivalent of such excess shall be determined on
the date such Refinancing Indebtedness is Incurred.

 

SECTION 3.4.            Limitation on Restricted Payments.

 

(a)           The Company shall not, and shall not
permit any of its Restricted Subsidiaries, directly or indirectly, to make a
Restricted Payment if at the time the Company or such Restricted Subsidiary
makes such Restricted Payment:

 

(i)      a
Default shall have occurred and be continuing (or would result therefrom);

 

(ii)     after
giving effect to such Restricted Payment, on a pro forma basis, the Secured
Leverage Ratio would exceed 6.00 to 1.0; or

 

(iii)    the
aggregate amount of such Restricted Payment and all other Restricted Payments
since the Issue Date would exceed the sum of (without duplication):

 

(A)          50%
of the Consolidated Net Income accrued during the period (treated as one
accounting period) from April 1, 2010 to the end of the Company’s most
recently ended fiscal quarter prior to the date of such Restricted Payment for
which internal financial

 

52

 

statements are
then available (or, in case such Consolidated Net Income shall be a deficit,
minus 100% of such deficit); plus

 

(B)          100%
of the aggregate Net Cash Proceeds received by the Company from the issuance or
sale of its Capital Stock (other than Disqualified Stock) subsequent to April 1,
2010 (other than an issuance or sale to a Subsidiary of the Company and other
than an issuance or sale to an employee stock ownership plan or to a trust
established by the Company or any of its Subsidiaries for the benefit of their
employees) and 100% of any cash capital contribution received by the Company
from its shareholders subsequent to April 1, 2010; plus

 

(C)          the
amount by which Indebtedness of the Company or any of its Restricted
Subsidiaries is reduced on the Company’s balance sheet upon the conversion or
exchange subsequent to April 1, 2010 of any Indebtedness of the Company or
any of its Restricted Subsidiaries convertible or exchangeable for Capital
Stock (other than Disqualified Stock) of the Company (less the amount of any
cash, or the fair value of any other property, distributed by the Company upon
such conversion or exchange); provided,
however, that the foregoing
amount shall not exceed the Net Cash Proceeds received by the Company or any
such Restricted Subsidiary from the sale of such Indebtedness (excluding Net
Cash Proceeds from sales to a Subsidiary of the Company or to an employee stock
ownership plan or to a trust established by the Company or any of its
Subsidiaries for the benefit of their employees); plus

 

(D)          an
amount equal to the sum of (x) the net reduction in the Investments (other
than Permitted Investments) made by the Company or any of its Restricted
Subsidiaries in any Person resulting from repurchases, repayments or
redemptions of such Investments by such Person, proceeds realized on the sale
of such Investment and proceeds representing the return of capital (excluding
dividends and distributions), in each case received by the Company or any of
its Restricted Subsidiaries, and (y) to the extent such Person is an
Unrestricted Subsidiary, the portion (proportionate to the Company’s equity
interest in such Subsidiary) of the Fair Market Value of the net assets of such
Unrestricted Subsidiary at the time such Unrestricted Subsidiary is designated
a Restricted Subsidiary of the Company; provided,
however, that the foregoing sum
shall not exceed, in the case of any such Person or Unrestricted Subsidiary,
the amount of Investments (excluding Permitted Investments) previously made
(and treated as a Restricted Payment) by the Company or any Restricted
Subsidiary of the Company in such Person or Unrestricted Subsidiary.

 

(b)           The provisions of Section 3.4(a) shall
not prohibit:

 

(i)      any
Restricted Payment made out of the Net Cash Proceeds of the substantially
concurrent sale of, or made by exchange for, Capital Stock of the Company
(other than Disqualified Stock and other than Capital Stock issued or sold to a
Subsidiary of the Company or an employee stock ownership plan or to a trust
established by the Company or any of its Subsidiaries for the benefit of their
employees) subsequent to April 1, 2010 or a substantially concurrent cash
capital contribution received by the Company from its shareholders subsequent
to April 1, 2010; provided, however, that (A) such Restricted
Payment shall be excluded in the calculation of the amount of Restricted
Payments and (B) the Net Cash Proceeds from such sale or such cash capital
contribution (to

 

53

 

the extent so used
for such Restricted Payment) shall be excluded from the calculation of amounts
pursuant to Section 3.4(a)(iii)(B);

 

(ii)     any
purchase, repurchase, redemption, defeasance or other acquisition or retirement
for value of (i) Subordinated Obligations, (ii) unsecured Indebtedness or (iii) Junior
Lien Obligations, in each case, of the Company or any Subsidiary Guarantor made
by exchange for, or out of the proceeds of the substantially concurrent sale
of, Subordinated Obligations, unsecured Indebtedness or Junior Lien
Obligations, as the case may be, of such Person or any Subsidiary Guarantor
which is permitted to be Incurred pursuant to Section 3.3; provided, however,
that such purchase, repurchase, redemption, defeasance or other acquisition or
retirement for value shall be excluded in the calculation of the amount of
Restricted Payments;

 

(iii)    dividends
paid within 60 days after the date of declaration thereof if at such date
of declaration such dividend would have complied with this covenant; provided, however,
that at the time of payment of such dividend, no other Default shall have
occurred and be continuing (or result therefrom); provided further, however,
that such dividend shall be included in the calculation of the amount of
Restricted Payments;

 

(iv)    so long
as no Default has occurred and is continuing, the purchase, redemption or other
acquisition or retirement for value of shares of Capital Stock of the Company
or any of its Subsidiaries from employees, former employees, directors or
former directors of the Company or any of its Subsidiaries (or permitted
transferees of such employees, former employees, directors or former
directors), pursuant to the terms of the agreements (including employment
agreements) or plans (or amendments thereto) approved by the Board of Directors
of the Company under which such individuals purchase or sell or are granted the
option to purchase or sell, shares of such Capital Stock; provided, however,
that (i) the aggregate amount of such purchases, redemptions and other
acquisitions and retirements (excluding amounts representing cancellation of
Indebtedness) shall not exceed $2.0 million in any calendar year and (ii) any
Restricted Payments permitted (but not made) pursuant to this clause (b)(4) in
any one calendar year may be carried forward to any succeeding calendar year
but that the aggregate amount of all Restricted Payments made pursuant to this
clause (b)(4) shall not exceed $5.0 million in any calendar
year; provided further, however, that such repurchases and other
acquisitions shall be excluded in the calculation of the amount of Restricted
Payments;

 

(v)     declarations
and payments of dividends on Disqualified Stock issued pursuant to Section 3.3;
provided, however, that such dividends shall be
excluded in the calculation of the amount of Restricted Payments;

 

(vi)    repurchases
of Capital Stock deemed to occur upon exercise of stock options if such Capital
Stock represents a portion of the exercise price of such options; provided, however,
that such Restricted Payments shall be excluded in the calculation of the
amount of Restricted Payments;

 

(vii)   payments
of intercompany subordinated Indebtedness, the Incurrence of which was
permitted pursuant to Section 3.3(b)(ii); provided further, however,
that such payments shall be excluded in the calculation of the amount of
Restricted Payments;

 

(viii)  dividends
and other payments to Parent to be used by Parent solely to pay its franchise
taxes and other fees required to maintain its corporate existence and to pay
for general corporate and overhead expenses (including salaries and other
compensation of the employees) incurred by Parent in the ordinary course of its
business and legal fees and expenses incurred in connation with

 

54

 

the pending
Department of Justice investigation of Parent and its subsidiaries and the
defense of litigation related thereto; provided,
however, that such dividends and
other payments shall not exceed $1.0 million in any calendar year; provided further, however, that such dividends and other
payments shall be excluded in the calculation of the amount of Restricted
Payments;

 

(ix)    any
payment by the Company to Parent pursuant to any Tax Sharing Arrangement in
effect as of the Issue Date, as such Tax Sharing Arrangement may be modified or
amended from time to time; provided,
however, that the amount of any
such payment shall not exceed the amount of taxes that the Company would have
been liable for on a stand alone basis on a consolidated tax return with its
Subsidiaries; provided further, however, that such payment shall be
excluded in the calculation of the amount of Restricted Payments;

 

(x)     in the
event of a Change of Control, and if no Default shall have occurred and be
continuing, the payment, purchase, redemption, defeasance or other acquisition
or retirement of Subordinated Obligations, unsecured Indebtedness or Junior
Lien Obligations, in each case, of the Company or any Subsidiary Guarantor, in
each case, at a purchase price not greater than 101% of the principal amount of
such Indebtedness, plus any accrued and unpaid interest thereon; provided, however,
that prior to such payment, purchase, redemption, defeasance or other
acquisition or retirement, the Company (or a third party to the extent
permitted by this Indenture) has made a Change of Control Offer with respect to
the Notes as a result of such Change of Control and has repurchased all Notes
validly tendered and not withdrawn in connection with such Change of Control
Offer; provided further, however, that such repurchase and other
acquisitions shall be included in the calculation of the amount of Restricted
Payments;

 

(xi)    in the
event of an Asset Disposition that requires the Company to offer to repurchase
Notes pursuant to Section 3.7, and if no Default shall have occurred and
be continuing, the payment, purchase, redemption, defeasance or other
acquisition or retirement of Subordinated Obligations, unsecured Indebtedness
or Junior Lien Obligations, of the Company or any Subsidiary Guarantor, in each
case, at a purchase price not greater than 100% of the principal amount (or, if
such Subordinated Obligations were issued with original issue discount, 100% of
the accreted value) of such Subordinated Obligations, plus any accrued and
unpaid interest thereon; provided,
however, that (A) prior to
such payment, purchase, redemption, defeasance or other acquisition or
retirement, the Company has made an offer with respect to the Notes pursuant to
Section 3.7 and has repurchased all Notes validly tendered and not
withdrawn in connection with such offer and (B) the aggregate amount of
all such payments, purchases, redemptions, defeasances or other acquisitions or
retirements of all such Subordinated Obligations may not exceed the amount of
Net Available Cash remaining after the Company has complied with the
requirement to make an Asset Disposition Offer pursuant to Section 3.7(a);
provided further, however, that such repurchases and other
acquisitions shall be included in the calculation of the amount of Restricted
Payments;

 

(xii)   cash
payments in lieu of the issuance of fractional shares in connection with the
exercise of warrants, options or other securities convertible into or
exchangeable for Capital Stock of the Company; provided,
however, that any such cash
payment shall not be for the purpose of evading the limitation of the covenant
described under this subheading (as determined in good faith by the Board of
Directors of the Company); provided further,
however, that such payments shall
be excluded in the calculation of the amount of Restricted Payments;

 

(xiii)  dividends
in an aggregate amount per annum not to exceed 6% of the aggregate Net Cash
Proceeds received by the Company in connection with any Public Equity Offerings
occurring

 

55

 

after the Issue
Date; provided, however, that at the time of each such
Restricted Payment, no Default shall have occurred or be continuing;

 

(xiv) dividends
to Parent (i) in an amount to pay interest, when due, on Parent’s 101⁄2%
Senior Discount Notes due 2012 and (ii) to repay, redeem or retire Parent’s
101⁄2% Senior Discount Notes due 2012 with the proceeds of Indebtedness Incurred
pursuant Section 3.3(b)(xvi); provided, however, that such Restricted Payments
shall be excluded in the calculation of the amount of Restricted Payments;

 

(xv)  Restricted
Payments in an amount which, when taken together with all Restricted Payments
made pursuant to this clause (xv), does not exceed $25.0 million; provided, however, that (A) at the time of each such Restricted
Payment, no Default shall have occurred and be continuing (or result therefrom)
and (B) such Restricted Payments shall be excluded in the calculation of
the amount of Restricted Payments.

 

SECTION 3.5.            Limitation on Liens.  The Company shall not, and shall not permit
any of its Restricted Subsidiaries to directly or indirectly, Incur or permit
to exist any Lien of any nature whatsoever on any of their respective
properties (including Capital Stock), whether owned at the Issue Date or
thereafter acquired, securing any Indebtedness, other than Permitted Liens.

 

SECTION 3.6.            Limitation on Restrictions on
Distributions from Restricted Subsidiaries.

 

(a)           The Company shall not, and shall not
permit any Restricted Subsidiary of the Company to, create or otherwise cause
or permit to exist or become effective any consensual encumbrance or
restriction on the ability of any Restricted Subsidiary of the Company to

 

(i)      pay
dividends or make any other distributions on its Capital Stock to the Company
or a Restricted Subsidiary of the Company or pay any Indebtedness owed to the
Company;

 

(ii)     make any
loans or advances to the Company; or

 

(iii)    transfer
any of its property or assets to the Company.

 

(b)           The restrictions in Section 3.6(a) shall
not prohibit encumbrances or restrictions existing under or by reason of:

 

(i)      any
encumbrance or restriction pursuant to an agreement in effect at or entered into
on the Issue Date, including the Credit Agreement and the indenture for the
First Lien Notes;

 

(ii)     any
encumbrance or restriction contained in the terms of any Credit Agreement if (x) either
(i) the encumbrance or restriction applies only in the event of and during
the continuance of a payment default or a default with respect to a financial
covenant contained in such Indebtedness or agreement or (ii) the Company
determines at the time any such Indebtedness is Incurred (and at the time of
any modification of the terms of any such encumbrance or restriction) that any
such encumbrance or restriction shall not materially affect the Company’s
ability to make principal or interest payments on the Notes or (y) the
encumbrance or restriction is not materially more disadvantageous to the
holders of the Notes than is customary in comparable financings or agreements
(as determined by the Company in good faith);

 

56

 

(iii)    any
encumbrance or restriction with respect to a Restricted Subsidiary of the
Company pursuant to an agreement relating to any Indebtedness Incurred by such
Restricted Subsidiary on or prior to the date on which such Restricted
Subsidiary became a Restricted Subsidiary or was acquired by the Company (other
than Indebtedness Incurred as consideration in, or to provide all or any
portion of the funds or credit support utilized to consummate, the transaction
or series of related transactions pursuant to which such Restricted Subsidiary
became a Restricted Subsidiary or was acquired by the Company) and outstanding
on such date;

 

(iv)    any
encumbrance or restriction pursuant to an agreement effecting a Refinancing (in
whole or in part) of Indebtedness Incurred pursuant to an agreement referred to
in clause (i), (ii) or (iii) of this Section 3.6(b) or
this clause (iv) or contained in any amendment to an agreement
referred to in clause (i), (ii) or (iii) of this Section 3.6(b) or
this clause (iv); provided, however, that the encumbrances and
restrictions with respect to such Restricted Subsidiary contained in any such
refinancing agreement or amendment, taken as a whole, are no less favorable to
the Noteholders than encumbrances and restrictions with respect to such
Restricted Subsidiary contained in such predecessor agreements;

 

(v)     any
encumbrance or restriction with respect to a Restricted Subsidiary of the
Company imposed pursuant to an agreement entered into for the sale or
disposition of all or substantially all the Capital Stock or any assets of such
Restricted Subsidiary pending the closing of such sale or disposition;

 

(vi)    any
encumbrance or restriction existing under applicable law, rule, regulation or
order;

 

(vii)   restrictions
on cash or other deposits or net worth requirements imposed by customers under
contracts entered into in the ordinary course of business;

 

(viii)  protective
Liens filed in connection with Sale/Leaseback Transactions permitted under this
Indenture;

 

(ix)    customary
restrictions on the assignment or transfer of any property that is subject to a
license or similar contract; and

 

(x)     any
encumbrance or restriction existing under Non-Recourse Securitization Entity
Indebtedness or other contractual requirements of a Securitization Entity in
connection with a Qualified Securitization Transaction; provided, however,
that such restrictions apply only to such Securitization Entity;

 

(c)           The restrictions in Section 3.6(a)(iii) shall
not prohibit encumbrances or restrictions existing under or by reason of:

 

(A)          any encumbrance or restriction consisting
of customary nonassignment provisions in leases governing leasehold interests
to the extent such provisions restrict the transfer or assignment of the lease
or the property leased thereunder;

 

(B)          any encumbrance or restriction
contained in security agreements or other documentation governing secured
Indebtedness of a Restricted Subsidiary of the Company to the extent

 

57

 

such encumbrance or
restriction restricts the transfer of the property securing such Indebtedness;
and

 

(C)          customary provisions restricting the
disposition or distribution of assets or property to each holder of Capital
Stock of a joint venture contained in any constitutional documents of such
joint venture or any joint venture agreement, shareholders agreement or similar
agreement which restriction is limited to the assets or property of such joint
venture.

 

SECTION 3.7.            Limitation on Sales of Assets and
Subsidiary Stock.

 

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

 

(i)      the
Company or such Restricted Subsidiary receives consideration at the time of
such Asset Disposition at least equal to the Fair Market Value (including as to
the value of all non-cash consideration) of the shares and assets subject to
such Asset Disposition; and

 

(ii)     at least
75% of the consideration thereof received by the Company or such Restricted
Subsidiary is in the form of cash or cash equivalents; provided, however,
that this clause (a)(ii) shall not apply to any Asset Disposition in
exchange for assets of a similar nature and to be used by the Company or a
Restricted Subsidiary of the Company in a Related Business, or a combination of
such assets and cash or cash equivalents, in each case having a Fair Market
Value comparable to the Fair Market Value of the assets disposed of by the
Company or a Restricted Subsidiary of the Company.

 

(b)           Any Net Available Cash received by
the Company or any Restricted Subsidiary from any Asset Disposition shall be
applied at the Company’s election:

 

(w)          in the case of any Asset Disposition
by a Non-Guarantor Subsidiary, to repay Indebtedness of a Non-Guarantor
Subsidiary,

 

(x)           to reinvest in or acquire assets
(including Capital Stock or other securities purchased in connection with the
acquisition of Capital Stock or property of another Person that is or becomes a
Restricted Subsidiary of the Company or that would constitute a Permitted
Investment under clause (1) of the definition thereof) used or useful
in a Related Business; provided
that to the extent the assets subject to such Asset Disposition were
Collateral, such newly acquired assets shall also be Collateral; or

 

(y)           to repay or redeem First Lien
Obligations in accordance with the First Lien Documents; provided that if any First Lien Obligation
so repaid, prepaid, purchased, redeemed or acquired, is under a revolving
credit facility, the Company shall effect a permanent reduction in the
availability thereunder in an amount equal to the aggregate principal amount of
First Lien Obligations under such revolving credit facility so repaid, prepaid,
purchased, redeemed or acquired.

 

(c)           All Net Available Cash that is not
applied or invested (or committed pursuant to a written agreement to be applied
or invested) as provided in subclause (w), (x) or (y) of the
preceding paragraph within 365 days after receipt (or in the case of any
amount committed to be so applied or reinvested, which are not actually so
applied or reinvested within 180 days following such 365 day period) shall
be deemed to constitute “Excess Proceeds.” 
When the aggregate amount of Excess Proceeds exceeds 

 

58

 

$10.0 million, the
Company shall be required to make an offer (“Asset Disposition Offer”)
to all Holders in an amount equal to the Pari Passu Lien Percentage (determined
with respect to any Net Available Cash from any Asset Disposition included in
such Excess Proceeds at the time of such Asset Disposition) of such Excess
Proceeds to purchase the maximum principal amount of the Notes (on a pro rata
basis) that may be purchased out of the Pari Passu Lien Percentage of such
Excess Proceeds, at an offer price in cash equal to 100% of the principal
amount of the Notes, plus accrued and unpaid interest and additional interest,
if any, thereon to, but excluding, the date of purchase (subject to the rights
of Holders of record on any record date to receive payments of interest on the
related Interest Payment Date), in accordance with the procedures set forth in
this Indenture in integral multiples of $1,000 (except that no Note shall be
purchased in part if the remaining principal amount would be less than $2,000).
To the extent that the aggregate amount of Notes so validly tendered and not
properly withdrawn pursuant to an Asset Disposition Offer is less than the Pari
Passu Lien Percentage of such Excess Proceeds, the Company may use any
remaining portion of such Excess Proceeds that is not applied to purchase Notes
(“Unutilized Excess Proceeds”) for general corporate purposes, the
repayment of Indebtedness or as otherwise required pursuant to its other
contractual requirements, subject to the terms of this Indenture. If the
aggregate principal amount of Notes surrendered by Holders exceeds the Pari
Passu Lien Percentage of such Excess Proceeds, the Notes to be purchased shall
be selected on a pro rata basis
on the basis of the aggregate principal amount of tendered Notes. Upon
completion of such Asset Disposition Offer, the amount of Excess Proceeds shall
be reset at zero.

 

(d)           The Asset Disposition Offer shall
remain open for a period of 20 Business Days following its commencement, except
to the extent that a longer period is required by applicable law (the “Asset
Disposition Offer Period”). No later than five Business Days after the
termination of the Asset Disposition Offer Period (the “Asset Disposition
Purchase Date”), the Company shall purchase the principal amount of Notes
required to be purchased pursuant to this Section 3.7 (the “Asset
Disposition Offer Amount”) or, if less than the Asset Disposition Offer
Amount has been so validly tendered and not properly withdrawn, all Notes
validly tendered in response to the Asset Disposition Offer.

 

(e)           If the Asset Disposition Purchase
Date is on or after a Record Date and on or before the related Interest Payment
Date, any accrued and unpaid interest shall be paid on such Asset Disposition
Purchase Date to the Person in whose name a Note is registered at the close of business
on such Record Date, and no additional interest shall be payable to Holders who
tender Notes pursuant to the Asset Disposition Offer.

 

(f)            On or before the Asset Disposition
Purchase Date, the Company shall, to the extent lawful, accept for payment, on
a pro rata basis to the extent
necessary, the Asset Disposition Offer Amount of Notes or portions of Notes
validly tendered and not properly withdrawn pursuant to the Asset Disposition
Offer, or if less than the Asset Disposition Offer Amount has been validly
tendered and not properly withdrawn, all Notes validly tendered and not
properly withdrawn, in each case in denominations of $1,000 (except that no
Note shall be purchased in part if the remaining principal amount would be less
than $2,000). The Company or the Trustee, as the case may be, shall promptly
(but in any case not later than five Business Days after termination of the
Asset Disposition Offer Period) mail or deliver to each tendering Holder of
Notes an amount equal to the purchase price of the Notes validly tendered and
not properly withdrawn by such holder and accepted by the Company for purchase,
and the Company shall promptly issue a new Note, and the Trustee, upon delivery
of an Officers’ Certificate from the Company, shall authenticate and mail or
deliver such new Note to such Holder, in a principal amount equal to any
unpurchased portion of the Note surrendered; provided
that each such new Note shall be in a principal amount of $2,000 or an integral
multiple of $1,000 in excess thereof. Any Note not so accepted shall be
promptly mailed or delivered by the Company to the Holder thereof.

 

59

 

(g)           For the purposes of Section 3.7(a)(ii),
the following are deemed to be cash or cash equivalents:

 

(i)      the
assumption of Indebtedness of the Company (other than obligations in respect of
Disqualified Stock of the Company) or any Restricted Subsidiary of the Company
and the release of the Company or such Restricted Subsidiary from all liability
on such Indebtedness in connection with such Asset Disposition; and

 

(ii)     securities
received by the Company or any Restricted Subsidiary of the Company from the
transferee that are converted within 90 days by the Company or such
Restricted Subsidiary into cash, to the extent of cash received in that
conversion.

 

(h)           The Company shall comply, to the
extent applicable, with the requirements of Section 14(e) of the
Exchange Act and any other securities laws or regulations in connection with
the repurchase of Notes pursuant to this Section 3.7. To the extent
that the provisions of any securities laws or regulations conflict with
provisions of this Section 3.7, the Company shall comply with the
applicable securities laws and regulations and shall not be deemed to have breached
its obligations under this Section 3.7 by virtue of its compliance with such
securities laws or regulations.

 

SECTION 3.8.            Limitation on Affiliate
Transactions.

 

(a)           The Company shall not, and shall not
permit any Restricted Subsidiary of the Company to, enter into any transaction
(including the purchase, sale, lease or exchange of any property, employee
compensation arrangements or the rendering of any service) with, or for the
benefit of, any Affiliate of the Company (an “Affiliate Transaction”) unless:

 

(i)      the
terms of the Affiliate Transaction are no less favorable to the Company or such
Restricted Subsidiary than those that could be obtained at the time of the
Affiliate Transaction in arm’s-length dealings with a Person who is not an
Affiliate;

 

(ii)     if such
Affiliate Transaction involves an amount in excess of $2.0 million, the
terms of the Affiliate Transaction are set forth in writing and a majority of
the directors of the Company disinterested with respect to such Affiliate
Transaction shall have determined in good faith that the criteria set forth in
clause (i) are satisfied and shall have approved the relevant
Affiliate Transaction as evidenced by a resolution of the Board of Directors;
and

 

(iii)    if such
Affiliate Transaction involves an amount in excess of $10.0 million, the
Board of Directors of the Company shall also have received a written opinion
from an Independent Qualified Party to the effect that such Affiliate
Transaction is fair, from a financial standpoint, to the Company and its
Restricted Subsidiaries or is not less favorable to the Company and its
Restricted Subsidiaries than could reasonably be expected to be obtained at the
time in an arm’s-length transaction with a Person who was not an Affiliate.

 

(b)           The provisions of Section 3.8(a) shall
not apply to:

 

(i)      any
Investment (other than a Permitted Investment) or other Restricted Payment, in
each case permitted to be made pursuant to Section 3.4;

 

60

 

 

(ii)     any issuance of
securities, or other payments, awards or grants in cash, securities or
otherwise pursuant to, or the funding of, employment arrangements, stock
options and stock ownership plans approved by the Board of Directors of the
Company;

 

(iii)    loans or advances to
officers, employees and directors in the ordinary course of business of the
Company or its Restricted Subsidiaries, but in any event not to exceed
$3.0 million in the aggregate outstanding at any one time;

 

(iv)    reasonable fees and compensation
paid to, and indemnity provided for the benefit of, officers, directors,
employees or consultants of the Company or any Restricted Subsidiary of the
Company as determined in good faith by the Company’s Board of Directors;

 

(v)     any transaction with a
Restricted Subsidiary of the Company or joint venture or similar entity which
would constitute an Affiliate Transaction solely because the Company or a
Restricted Subsidiary of the Company owns an equity interest in or otherwise
controls such Restricted Subsidiary, joint venture or similar entity;

 

(vi)    the issuance or sale of
any Capital Stock (other than Disqualified Stock) of the Company;

 

(vii)   any agreement or
arrangement as in effect on the Issue Date and described in the Offering
Circular (including any Tax Sharing Arrangement) or any renewals or extensions
of any such agreement (so long as such renewals or extensions are not less
favorable to the Company or its Restricted Subsidiaries) and the transactions
evidenced thereby;

 

(viii)  any merger of the Company
with an Affiliate of the Company solely for the purpose and with the sole
effect of reincorporating the Company in another jurisdiction;

 

(ix)    transactions with
customers, clients, suppliers, joint venture partners or purchasers or sellers
of goods or services, in each case, in the ordinary course of business,
including pursuant to joint venture agreements, and otherwise in compliance
with the terms of this Indenture which are fair to the Company and its
Restricted Subsidiaries, in the reasonable determination of the Board of
Directors of the Company or the senior management thereof, or are on terms at
least as favorable as might reasonably have been obtained at such time in
arm’s-length dealings with a Person who is not an Affiliate;

 

(x)     transactions effected as
part of a Qualified Securitization Transaction; and

 

(xi)    any transaction
constituting part of the Transactions.

 

SECTION 3.9.            Change of Control.

 

(a)           Upon the occurrence of a Change of
Control, each Holder shall have the right to require that the Company
repurchase such Holder’s Notes at a purchase price in cash equal to 101% of the
principal amount thereof on the date of purchase plus accrued and unpaid
interest, if any, to the date of purchase (subject to the right of Holders of record
on the relevant Record Date to receive interest due on the relevant Interest
Payment Date).

 

61

 

(b)           Within 30 days following any
Change of Control, the Company shall mail a notice to each Holder with a copy
to the Trustee (the “Change of Control Offer”) stating:

 

(i)      that a Change of Control
has occurred and that such Holder has the right to require the Company to
purchase such Holder’s Notes at a purchase price in cash equal to 101% of the
principal amount thereof on the date of purchase, plus accrued and unpaid
interest, if any, to the date of purchase (subject to the right of Holders of
record on the relevant Record Date to receive interest on the relevant Interest
Payment Date);

 

(ii)     the circumstances and
relevant facts regarding such Change of Control;

 

(iii)    the purchase date (which
shall be no earlier than 30 days nor later than 60 days from the date
such notice is mailed); and

 

(iv)    the instructions, as
determined by the Company, consistent with this Section 3.9, that a
Holder must follow in order to have its Notes purchased.

 

(c)           Holders electing to have a Note
purchased shall be required to surrender the Note, with an appropriate form
duly completed, to the Company at the address specified in the notice at least
three Business Days prior to the purchase date. 
Holders shall be entitled to withdraw their election if the Trustee or
the Company receives not later than one Business Day prior to the purchase date,
a telegram, telex facsimile transmission or letter setting forth the name of
the Holder, the principal amount at maturity of the Note which was delivered
for purchase by the Holder and a statement that such Holder is withdrawing his
selection to have such Note purchased.

 

(d)           On the purchase date, all Notes
purchased by the Company under this Section 3.9 shall be delivered by the
Company to the Trustee for cancellation, and the Company shall pay the purchase
price plus accrued and unpaid interest, if any, to the Holders entitled
thereto. With respect to any Note purchased in part, the Company will issue a
new Note in a principal amount equal at maturity to the unredeemed portion of
the original Note in the name of the holder upon cancellation of the original
Note.

 

(e)           The Company shall not be required to
make a Change of Control Offer following a Change of Control if a third party
makes the Change of Control Offer in the manner, at the times and otherwise in
compliance with the requirements set forth in this Indenture applicable to a
Change of Control Offer made by the Company and purchases all Notes validly
tendered and not withdrawn under such Change of Control Offer. Additionally,
the Company shall not be required to make a Change of Control Offer or purchase
the Notes as described under this Section 3.9 to the extent that
the Company has mailed a notice to exercise its right to redeem Notes pursuant
to the provisions of Section 5.1 at any time prior to the time by
which consummation of a Change of Control Offer is required.

 

(f)            The Company shall comply, to the
extent applicable, with the requirements of Section 14(e) of the
Exchange Act and any other securities laws or regulations in connection with
the repurchase of Notes as a result of a Change of Control. To the extent that
the provisions of any securities laws or regulations conflict with the
provisions of this Section 3.9, the Company shall comply with the
applicable securities laws and regulations and shall not be deemed to have
breached its obligations under this Section 3.9 by virtue of its
compliance with such securities laws or regulations.

 

62

 

SECTION 3.10.          Maintenance of Properties.

 

The Company will cause all
properties owned by the Company or any Restricted Subsidiary or used or held
for use in the conduct of its business or the business of any Restricted
Subsidiary to be maintained and kept in good condition, repair and working
order and supplied with all necessary equipment and will cause to be made all
necessary repairs, renewals, replacements, betterments and improvements
thereof, all as in the judgment of the Company may be necessary so that the
business carried on in connection therewith may be properly and advantageously
conducted at all times; provided,
however, that nothing in this Section shall
prevent the Company from discontinuing the maintenance of any of such
properties if such discontinuance is, in the judgment of the Company, desirable
in the conduct of its business or the business of any Restricted Subsidiary.

 

SECTION 3.11.          Additional Subsidiary Guarantees;
Insurance.

 

(a)           If after the Issue Date the Company
or any of its Restricted Subsidiaries acquires or creates another wholly-owned
Restricted Subsidiary (other than a Foreign Subsidiary or Securitization
Entity), then that Restricted Subsidiary shall become a Subsidiary Guarantor
and (i) execute a supplemental indenture and a joinder agreement to the
Collateral Documents (or any additional security documents) in form and
substance reasonably satisfactory to the Trustee providing that such Subsidiary
shall become a Subsidiary Guarantor under this Indenture and a party as grantor
to the Collateral Documents, (ii) deliver an opinion of counsel
satisfactory to the Trustee, in each case, within 5 Business Days of the date
on which it was acquired or created and (iii) take all actions required by
the Collateral Documents to perfect the Liens created thereunder.

 

(b)           The Company and each Subsidiary
Guarantor will do or cause to be done all acts and things which may be required,
or which the Trustee from time to time may reasonably request, to assure and
confirm that the Collateral Agent holds, for the benefit of the Note holders,
duly created, enforceable and perfected second-priority Liens (subject to
Permitted Liens) upon all property, whether real, personal (including
after-acquired personal property) or mixed, of the Company and the Guarantors.

 

(c)           Upon request of the Trustee at any
time and from time to time, the Company and each Subsidiary Guarantor will
promptly execute, acknowledge and deliver such security documents, instruments,
certificates, notices and other documents and take such other actions as shall
be required or which the Trustee may reasonably request to grant, perfect or
maintain the priority of (subject to Permitted Liens) the Liens and benefits
intended to be conferred as contemplated by the Collateral Documents for the
benefit of the holders of the Notes.

 

(d)           The Company and the Subsidiary
Guarantors shall maintain with financially sound and reputable insurance
companies, insurance (including, with respect to any area identified by the
Federal Emergency Management Agency (or any successor agency) as a Special
Flood Hazard Area with respect to which flood insurance has been made available
under the National Flood Insurance Act of 1968 (as now or hereafter in effect
or successor act thereto), flood insurance) on their property and assets
(including the Collateral) in at least such amounts, with such deductibles and
against at least such risks as is customary for companies of the same or
similar size engaged in the same or similar businesses as those of the Company
and the Subsidiary Guarantors and furnish to the Trustee, upon written request,
full information as to its property and liability insurance carriers in form
and substance reasonably satisfactory to the Trustee. The Trustee shall be
named as an additional insured on all liability insurance policies of the
Company and their Restricted Subsidiaries and the Trustee shall be named as
loss payee on all property and casualty insurance policies of each such Person.

 

63

 

SECTION 3.12.          Limitation on Line of Business.  The Company shall not, and shall not permit
any of its Restricted Subsidiaries to, engage in any business other than a
Related Business.

 

SECTION 3.13.          Compliance Certificate.  The Company shall deliver to the Trustee
within 120 days after the end of each fiscal year of the Company (commencing
with the fiscal year ending December 31, 2010) an Officers’ Certificate
stating whether or not the signers know of any Default or Event of Default that
occurred during such period.  If they do,
the certificate shall describe the Default or Event of Default, its status and
what action the Company is taking or proposes to take with respect thereto.

 

SECTION 3.14.          Statement by Officers as to Default.  The Company shall deliver to the Trustee,
within 30 days after the knowledge thereof if such event is still continuing,
written notice in the form of an Officers’ Certificate of any Event of Default
or any event which, with notice or the lapse of time or both, would constitute
an Event of Default under Section 6.1(a)(i), (ii), (iii),
(iv), (v), (vi), (ix), (x), (xi) or (xii),
which shall include their status and what action the Company is taking or
proposing to take in respect thereof.

 

SECTION 3.15.          Post-Closing Obligations and
After-Acquired Collateral.

 

(a)           Promptly following the acquisition by the Company or any
Guarantor after the Issue Date of (i) any after-acquired assets,
including, but not limited to, any after-acquired Material Real Property or any
equipment or fixtures which constitute accretions, additions or technological
upgrades to the equipment or fixtures or any working capital assets that, in
any such case, form part of the Collateral, or (ii) any replacement assets
in compliance with Section 3.7 hereof, the Company or such
Guarantor shall execute and deliver, (x) with regard to any Material Real
Property, within 90 days of the acquisition thereof, such mortgages, deeds of
trust, security instruments, title insurance policies, surveys, financing
statements, and certificates and opinions of counsel as shall be reasonably
necessary to vest in the Collateral Agent a perfected security interest, and (y) to
the extent required by the Collateral Documents, any information,
documentation, financing statements or other certificates and opinions of
counsel as may be necessary to vest in the Collateral Agent a perfected
security interest, subject only to Permitted Liens, in such after-acquired
property (other than Excluded Property) and to have such after-acquired
property added to the Collateral, and thereupon all provisions of this
Indenture and the Collateral Documents relating to the Collateral shall be
deemed to relate to such after-acquired property to the same extent and with
the same force and effect.

 

(b)           The Company shall, and shall cause
each applicable Subsidiary Guarantor to, within ninety (90) days after the
Issue Date, deliver to the Trustee and the Collateral Agent each of the
following:

 

(i)                 Title
Insurance. With respect to each Mortgage encumbering any Mortgaged
Property, a 2006 ALTA policy of title insurance (or commitment to issue such a
policy having the effect of a loan policy of title insurance) insuring (or
committing to insure) the lien of such Mortgage as a valid and enforceable
second-priority mortgage or deed of trust lien on the fee estate of each
Mortgaged Property described therein, in an amount not less than 115% of the
greater of cost or book value of such Mortgaged Property as specified on Annex
A attached hereto (such policies collectively, the “Mortgage Policies”) issued
by such title insurance company, which reasonably assures the Collateral Agent
that the Mortgages on such Mortgaged Properties are valid and enforceable
mortgage liens on the respective Mortgaged Properties, free and clear of all
defects and encumbrances except Permitted Liens and such Mortgage Policies
shall otherwise be in form and substance

 

64

 

reasonably
satisfactory to the Collateral Agent and shall include such title endorsements
as the Collateral Agent shall reasonably request (to the extent applicable and
available under local/state law at commercially reasonable rates) (it being
understood that such policy or policies may include a so-called “pro tanto”
endorsement effectively causing such policy or policies to be issued
concurrently with the policy or policies issued to (i) the collateral
agent insuring its Lien on the Mortgaged Properties pursuant to the Credit
Agreement and (ii) the collateral agent insuring its Lien on the Mortgaged
Properties pursuant to Parent’s existing 10 1/2% Senior Discount Notes due 2012
in connection with the exchange offer and consent solicitation contemplated by
the Offering Circular) on matters relating to usury, first loss, last dollar,
contiguity, doing business, nonimputation, public road access, survey, variable
rate, environmental lien, subdivision, mortgage recording tax, separate tax
lot, so-called comprehensive coverage over covenants and restrictions, zoning
(or, in lieu thereof, reports from zoning report companies or zoning letters as
may be reasonably acceptable to the Collateral Agent), waiver of arbitration,
“me too” coverage relating to co-insurance and/or re-insurance arrangements (if
applicable) and “cluster” or “tie-in” coverage.

 

(ii)                Survey.
Parent and the Company shall deliver to the applicable title
insurance company any and all surveys (or in the alternative, ExpressMaps issued by First American Title
Insurance Company Express Map Division in form and substance reasonably
acceptable to the Representative) and any and all affadavits as may be
reasonably necessary to cause such title insurance company to issue the title
insurance required pursuant to clause (i) above.

 

(iii) Consents. With respect to the Mortgaged
Property, such consents, approvals or tenant subordination agreements, as
necessary to consummate the transactions or as shall reasonably be deemed
necessary by the Collateral Agent in order for the owner of such Mortgaged
Property to grant the lien contemplated by the Mortgage.

 

(iv) Mortgaged Property Indemnification. With
respect to each Mortgaged Property, such affidavits, certificates, instruments
of indemnification and other items (including a so-called “gap”
indemnification) as shall be reasonably required to induce the title insurance
company to issue the Mortgage Policy/ies and endorsements contemplated above.

 

(v) Collateral Fees and Expenses. Evidence
reasonably acceptable to the Collateral Agent of payment by the Company of all
Mortgage Policy premiums, search and examination charges and issuance of the
Mortgage Policies referred to above.

 

(vi) If
necessary (or to the extent as shall reasonably be deemed necessary by the
Collateral Agent) amendments to the Mortgages duly authorized, executed and
acknowledged, in recordable form and otherwise in form and substance reasonably
acceptable to the Collateral Agent with respect to each Mortgaged Property sufficient
for the owner of such Mortgaged Property to (x) grant to the Collateral
Agent and/or confirm the Collateral Agent’s Mortgage lien on and security
interests in such Mortgaged (y) confirm such owner’s right and
indefeasible title thereto and (z) confirm the Mortgaged Property to be
encumbered thereby.

 

SECTION 3.16.          Limitation on Sales or Issuances of
Capital Stock of Restricted Subsidiaries.

 

(a)           The Company and shall not permit any
Restricted Subsidiary (other than a Securitization Entity) to, sell, lease,
transfer or otherwise dispose of (other than the granting of any Lien permitted

 

65

 

under the terms of this
Indenture) any Capital Stock of any Restricted Subsidiary to any Person (other
than the Company or a Wholly Owned Subsidiary or, if necessary, shares of its
Capital Stock constituting directors’ or other legally required qualifying
shares), and

 

(b)           The Company shall not permit any
Restricted Subsidiary (other than a Securitization Entity) to issue any of its
Capital Stock (other than, if necessary, shares of its Capital Stock
constituting directors’ or other legally required qualifying shares) to any
Person (other than to the Company or a Wholly Owned Subsidiary), unless:

 

(i)      immediately after giving
effect to such issuance, sale or other disposition, neither the Company nor any
of its Subsidiaries owns any Capital Stock of such Restricted Subsidiary; or

 

(ii)     immediately after giving
effect to such issuance, sale or other disposition, such Restricted Subsidiary
would no longer constitute a Restricted Subsidiary and any Investment in such
Person remaining after giving effect thereto is treated as a new Investment by
the Company and such Investment would be permitted to be made pursuant to Section 3.4
hereof if made on the date of such issuance, sale or other disposition.

 

ARTICLE IV

 

Successor
Company and Successor Guarantor

 

SECTION 4.1.            When Company May Merge or
Otherwise Dispose of Assets.

 

(a)           The Company shall not consolidate
with or merge with or into, or convey, transfer or lease, in one transaction or
a series of transactions, directly or indirectly, all or substantially all its
assets (determined on a consolidated basis for the Company and its Restricted
Subsidiaries) to, any Person, unless:

 

(i)      the resulting, surviving
or transferee Person (the “Successor Company”) shall be a Person
organized and existing under the laws of the United States of America, any
State thereof or the District of Columbia and the Successor Company (if not the
Company) shall expressly assume, by an indenture supplemental thereto, executed
and delivered to the Trustee, in form satisfactory to the Trustee, all the
obligations of the Company under the Notes and this Indenture;

 

(ii)     immediately after giving
pro forma effect to such transaction (and treating any Indebtedness which
becomes an obligation of the Successor Company or any Subsidiary as a result of
such transaction as having been Incurred by such Successor Company or such
Subsidiary at the time of such transaction), no Default shall have occurred and
be continuing;

 

(iii)    immediately after giving
pro forma effect to such transaction, either (x) the Successor Company
would be able to Incur an additional $1.00 of Indebtedness pursuant to Section 3.3(a) hereof
or (y) the Consolidated Coverage Ratio would be equal to or greater than
the Consolidated Coverage Ratio immediately prior to such transaction;

 

(iv)    the Company shall have
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 Indenture;

 

66

 

(v)     the Successor Company
causes such amendments, supplements or other instruments to be executed,
delivered, filed and recorded, as applicable, in such jurisdictions as may be
required by applicable law to preserve and protect the Liens created by the
Collateral Documents on the Collateral owned by or transferred to the Successor
Company;

 

(vi)    the Collateral owned by or
transferred to the Successor Company shall (a) constitute Collateral under
this Indenture and the Collateral Documents, (b) be subject to the Lien in
favor of the Collateral Agent for the benefit of the Trustee and the Holders of
the Notes, and (c) not be subject to any Liens other than Permitted Liens;
and

 

(vii)   the property and assets of
the Person which is merged or consolidated with or into the Successor Company,
to the extent that they are property or assets of the types which would
constitute Collateral under the Collateral Documents, shall be treated as
after-acquired property and the Successor Company shall take such action as may
be reasonably necessary to cause such property and assets to be made subject to
the Lien of the Collateral Documents in the manner and to the extent required
in this Indenture.

 

provided, however, (A) that the foregoing
shall not prohibit a Restricted Subsidiary of the Company from merging into or
transferring all or part of its properties and assets to the Company or another
Restricted Subsidiary of the Company and (B) clause (iii) shall
not be applicable to the Company merging with an Affiliate of the Company
solely for the purpose and with the sole effect of reincorporating the Company
in another jurisdiction.

 

For purposes of this Section 4.1,
the sale, lease, conveyance, assignment, transfer or other disposition of all
or substantially all of the properties and assets of one or more Subsidiaries
of the Company, which properties and assets, if held by the Company instead of
such Subsidiaries, would constitute all or substantially all of the properties
and assets of the Company on a consolidated basis, shall be deemed to be the
transfer of all or substantially all of the properties and assets of the
Company.

 

(b)           The Successor Company shall be the
successor to the Company and shall succeed to, and be substituted for, and may
exercise every right and power of, the Company under this Indenture, and the
predecessor Company, except in the case of a lease, shall be released from the
obligation to pay the principal of and interest on the Notes.

 

SECTION 4.2.            When Parent or a Subsidiary
Guarantor May Merge or Otherwise Dispose of Assets.

 

(a)           The Company shall not permit any
Subsidiary Guarantor to consolidate with or merge with or into, or convey,
transfer or lease, in one transaction or a series of transactions, all or
substantially all of its assets to, any Person (other than the Company or
another Subsidiary Guarantor) unless:

 

(i)      except in the case of a
Subsidiary Guarantor (x) that has been disposed of in its entirety to
another Person (other than to the Company or an Affiliate of the Company),
whether through a merger, consolidation or sale of Capital Stock or assets, or (y) that,
as a result of the disposition of all or a portion of its Capital Stock, ceases
to be a Subsidiary, in both cases, if in connection therewith the Company
provides an Officers’ Certificate to the Trustee to the effect that the Company
shall comply with its obligations pursuant to Section 3.7 hereto in
respect of such disposition, the Successor Company (if not such Subsidiary)
shall be a Person organized and existing under the laws of the jurisdiction
under which such Subsidiary was organized or under the laws of the United
States

 

67

 

of
America, or any State thereof or the District of Columbia, and, if not a
Subsidiary Guarantor, such Person shall expressly assume, by a Guaranty
Agreement, in a form satisfactory to the Trustee, all the obligations of such
Subsidiary, if any, under its Subsidiary Guaranty;

 

(ii)     immediately after giving
effect to such transaction or transactions on a pro forma basis (and treating
any Indebtedness which becomes an obligation of the resulting, surviving or
transferee Person as a result of such transaction as having been issued by such
Person at the time of such transaction), no Default shall have occurred and be
continuing;

 

(iii)    the Company delivers to
the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating
that such consolidation, merger or transfer and such Guaranty Agreement, if
any, comply with this Indenture;

 

(iv)    the Successor Company
causes such amendments, supplements or other instruments to be executed,
delivered, filed and recorded, as applicable, in such jurisdictions as may be
required by applicable law to preserve and protect the Liens created by the
Collateral Documents on the Collateral owned by or transferred to the Successor
Company;

 

(v)     the Collateral owned by or
transferred to the Successor Company shall (a) constitute Collateral under
this Indenture and the Collateral Documents, (b) be subject to the Lien in
favor of the Collateral Agent for the benefit of the Trustee and the Holders of
the Notes, and (c) not be subject to any Liens other than Permitted Liens;
and

 

(vi)    the property and assets of
the Person which is merged or consolidated with or into such Successor Company,
to the extent that they are property or assets of the types which would constitute
Collateral under the Collateral Documents, shall be treated as after-acquired
property and such Person shall take such action as may be reasonably necessary
to cause such property and assets to be made subject to the Lien of the
Collateral Documents in the manner and to the extent required in this
Indenture.

 

The Successor Company shall be the successor
to the Guarantor and shall succeed to, and be substituted for, and may exercise
every right and power of, the Guarantor under this Indenture, and the predecessor
Subsidiary Guarantor, except in the case of a lease, shall be released from the
obligation to pay the principal of and interest on the Notes.

 

(b)           Parent shall not merge with or into,
or convey, transfer or lease, in one transaction or a series of transactions,
all or substantially all of its assets to, any Person unless:

 

(i)      the Successor Company (if
not Parent) shall be a Person organized and existing under the laws of the
jurisdiction under which Parent was organized or under the laws of the United
States of America, or any State thereof or the District of Columbia, and such
Person shall expressly assume all the obligations of Parent, if any, under the
Parent Guaranty;

 

(ii)     immediately after giving
effect to such transaction or transactions on a pro forma basis (and treating
any Indebtedness which becomes an obligation of the resulting, surviving or
transferee Person as a result of such transaction as having been issued by such
Person at the time of such transaction), no Default shall have occurred and be
continuing;

 

68

 

(iii)    the Company delivers to
the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating
that such consolidation, merger or transfer and such Guaranty Agreement, if
any, complies with this Indenture;

 

(iv)    the Successor Company
causes such amendments, supplements or other instruments to be executed,
delivered, filed and recorded, as applicable, in such jurisdictions as may be
required by applicable law to preserve and protect the Liens created by the
Collateral Documents on the Collateral owned by or transferred to the Successor
Company;

 

(v)     the Collateral owned by or
transferred to the Successor Company shall (a) constitute Collateral under
this Indenture and the Collateral Documents, (b) be subject to the Lien in
favor of the Collateral Agent for the benefit of the Trustee and the Holders of
the Notes, and (c) not be subject to any Liens other than Permitted Liens;
and

 

(vi)    the property and assets of
the Person which is merged or consolidated with or into such Successor Company,
to the extent that they are property or assets of the types which would
constitute Collateral under the Collateral Documents, shall be treated as
after-acquired property and such Person shall take such action as may be
reasonably necessary to cause such property and assets to be made subject to
the Lien of the Collateral Documents in the manner and to the extent required
in this Indenture.

 

The Successor Company shall be the successor
to Parent and shall succeed to, and be substituted for, and may exercise every
right and power of, Parent under this Indenture, and the predecessor Company,
except in the case of a lease, shall be released from the obligation to pay the
principal of and interest on the Notes.

 

ARTICLE V

 

Redemption
of Notes

 

SECTION 5.1.            Optional Redemption.

 

(a)           Except as set forth in Section 5.1(b) and
(c), the Company shall not be entitled to redeem the Notes at its option
prior to March 1, 2013.  On and
after March 1, 2013, the Company shall be entitled to at its option redeem
all or a portion of the Notes upon not less than 30 nor more than 60 days’
notice, at the redemption prices (expressed in percentages of principal amount
on the Redemption Date), plus accrued and unpaid interest to the Redemption
Date (subject to the right of Holders of record on the relevant Record Date to
receive interest due on the relevant Interest Payment Date), if redeemed during
the twelve-month period commencing on March 1 of the years set forth
below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2013

  	
   

  	
  106.625

  	
  %

  
	
  2014

  	
   

  	
  100.000

  	
  %

  

 

(b)           Prior to March 1, 2013, the
Company shall be entitled at its option on one or more occasions to redeem
Notes (which includes Additional Notes, if any) in an aggregate principal
amount not to exceed 35% of the aggregate principal amount of the Notes (which
includes Additional Notes, if any) issued prior to such time at a redemption
price (expressed as a percentage of principal amount as of the date of
redemption) of 113.25%, plus accrued and unpaid interest to the Redemption

 

69

 

Date, if any, with the net
cash proceeds from one or more Qualified Equity Offerings (provided that if the Qualified Equity
Offering is an offering by Parent, a portion of the Net Cash Proceeds thereof
equal to the amount required to redeem any such Notes is contributed to the
equity capital of the Company); provided,
however, that:

 

(i)      at least 65% of such
aggregate principal amount of Notes (which includes Additional Notes, if any)
remains outstanding immediately after the occurrence of each such redemption
(other than Notes held, directly or indirectly, by the Company or its
Affiliates); and

 

(ii)     each such redemption
occurs within 90 days after the date of the related Qualified Equity
Offering.

 

(c)           In addition, at any time prior to March 1,
2013, the Company may redeem the Notes, in whole or in part, at a redemption
price equal to 100% of the principal amount thereof plus the Applicable
Premium, plus accrued and unpaid interest, if any, and additional interest
thereon, if any, to, but excluding, the Redemption Date (subject to the right
of Holders of record on the relevant Record Date to receive interest due on the
relevant Interest Payment Date).

 

SECTION 5.2.            Election to Redeem; Notice to
Trustee of Optional and Mandatory Redemptions.  If the Company elects to redeem Notes
pursuant to Section 5.1, the Company shall furnish to the Trustee,
at least 5 Business Days before notice of redemption is required to be mailed
or caused to be mailed to Holders pursuant to Section 5.4, an
Officers’ Certificate setting forth (a) the paragraph or subparagraph of
such Note and/or Section of this Indenture pursuant to which the
redemption shall occur, (b) the Redemption Date, (c) the principal
amount of the Notes to be redeemed and (d) the redemption price.  The Company shall deliver to the Trustee such
documentation and records as shall enable the Trustee to select the Notes to be
redeemed pursuant to Section 5.3.

 

SECTION 5.3.            Selection by Trustee of Notes to
Be Redeemed.  In the case of any
partial redemption, selection of the Notes for redemption shall be made by the
Trustee in compliance with the requirements of the principal national
securities exchange, if any, on which the Notes are listed or, if the Notes are
not listed, then on as nearly a pro rata
basis as possible (subject to such rounding as the Trustee may determine so
that Notes are redeemed in whole increments of $1,000 and no Note of $2,000 in
principal amount or less shall be redeemed in part), and in accordance with
applicable procedures of DTC.  If any
Note is to be redeemed in part only, the notice of redemption relating to such
note shall state the portion of the principal amount thereof to be
redeemed.  A new Note in principal amount
equal to the unredeemed portion thereof shall be issued in the name of the
Holder thereof upon cancellation of the original Note in accordance with Section 5.7.

 

The Trustee shall promptly
notify the Company in writing 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, all provisions relating to
redemption of Notes shall relate, in the case of any Note redeemed or to be
redeemed only in part, to the portion of the principal amount of such Note
which has been or is to be redeemed.

 

SECTION 5.4.            Notice of Redemption.  The Company shall mail or cause to be mailed
by first class mail, a notice of redemption to each Holder whose Notes are to
be redeemed at its registered address not less than 30 nor more than 60 days
prior to a date fixed for redemption (a

 

70

 

“Redemption Date”), to each Holder of Notes to
be redeemed.  The Trustee shall give
notice of redemption in the Company’s name and at the Company’s expense; provided, however,
that redemption notices may be mailed more than 60 days prior to a Redemption
Date if the notice is issued in connection with Article VIII.

 

All notices of redemption
shall state:

 

(a)           the Redemption Date,

 

(b)           the redemption price and the amount
of accrued interest, if any, to, but excluding, the Redemption Date payable as
provided in Section 5.6, if any,

 

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

 

(d)           in case any Note is to be redeemed in
part only, the notice which relates to such Note shall state that on and after
the Redemption Date, upon surrender of such Note, the Holder shall receive,
without charge, a new Note or Notes of authorized denominations for the
principal amount thereof remaining unredeemed,

 

(e)           that on the Redemption Date the
redemption price (and accrued interest, if any, to, but excluding, the
Redemption Date payable as provided in Section 5.6) shall become
due and payable upon each such Note, or the portion thereof, to be redeemed,
and, unless the Company defaults in making the redemption payment, that
interest on Notes called for redemption (or the portion thereof) shall cease to
accrue on and after said date,

 

(f)            the place or places where such Notes
are to be surrendered for payment of the redemption price and accrued interest,
if any,

 

(g)           the name and address of the Paying
Agent,

 

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

 

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

 

(j)            the Section of this Indenture
pursuant to which the Notes are to be redeemed.

 

SECTION 5.5.            Deposit of Redemption Price.  Prior to 10:00 a.m. New York City time,
on any Redemption Date, the Company shall deposit with the Trustee or with a
Paying Agent (or, if the Company is acting as its own Paying Agent, segregate
and hold in trust as provided in Section 2.4) an amount of money
sufficient to pay the redemption price of, and accrued interest on, all the
Notes which are to be redeemed on that date.

 

SECTION 5.6.            Notes Payable on Redemption Date.  Notice of redemption having been given as
aforesaid, the Notes so to be redeemed shall, on the Redemption Date, become
due and

 

71

 

payable at the redemption price therein specified
(together with accrued interest, if any, to, but excluding, the Redemption
Date) (except as provided for in the last paragraph of Section 5.1(b)),
and from and after such date (unless the Company shall default in the payment
of the redemption price and accrued interest) such Notes shall cease to bear
interest.  Upon surrender of any such
Note for redemption in accordance with said notice, such Note shall be paid by
the Company at the redemption price, together with accrued interest, if any,
to, but excluding, the Redemption Date (subject to the rights of Holders of
record on the relevant Record Date to receive interest due on the relevant
Interest Payment Date).

 

If any Note called for
redemption shall not be so paid upon surrender thereof for redemption, the principal
(and premium, if any) shall, until paid, bear interest from the Redemption Date
at the rate borne by the Notes.

 

If a Redemption Date is on
or after a Record Date and on or before the related Interest Payment Date, the
accrued and unpaid interest, if any, shall be paid to the Person in whose name
the Note is registered at the close of business on such Record Date, and no
additional interest shall be payable to Holders whose Notes shall be subject to
redemption by the Company.

 

SECTION 5.7.            Notes Redeemed in Part.  Any Note which is to be redeemed only in part
(pursuant to the provisions of this Article) shall be surrendered at the office
or agency of the Company maintained for such purpose pursuant to Section 2.3
(with, if the Company so requires, due endorsement by, or a written instrument
of transfer in form satisfactory to the Company duly executed by, the Holder
thereof or such Holder’s attorney duly authorized in writing), and the Company
shall execute, and the Trustee shall authenticate and make available for
delivery to the Holder of such Note at the expense of the Company, a new Note
or Notes, of any authorized denomination as requested by such Holder, in an
aggregate principal amount equal to and in exchange for the unredeemed portion
of the principal of the Note so surrendered, provided
that each such new Note shall be in a principal amount of $2,000 and integral
multiples of $1,000 in excess thereof.

 

ARTICLE VI

 

Defaults
and Remedies

 

SECTION 6.1.            Events of Default.

 

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

 

(i)      a default in the payment
of interest on the Notes when due, and such default continues for a period of
30 days;

 

(ii)     a default in payment of
the principal of any Note when due at its Stated Maturity, upon optional
redemption, upon required purchase, upon declaration of acceleration or
otherwise;

 

(iii)    the failure by the
Company, Parent or any Subsidiary Guarantor to comply with its obligations
under Article IV;

 

(iv)    the failure by the Company
or any Subsidiary Guarantor to comply for 30 days after notice as provided
below with any of its obligations under Sections 3.2, 3.3, 3.4,
3.5, 3.6, 3.7 (other than a failure to purchase the
Notes), 3.8, 3.9 (other than a failure to purchase the Notes), 3.11,
3.12 and 3.16;

 

72

 

 

(v)     the failure by the Company or any
Subsidiary Guarantor to comply for 60 days after notice as provided below with
its other agreements (except as provided in clauses (a)(i) through
(a)(iv) of this Section 6.1) contained in this Indenture, the
Notes or the Collateral Documents;

 

(vi)    Indebtedness of the Company or any
Significant Subsidiary is not paid within any applicable grace period after
final maturity or is accelerated by the holders thereof because of a default
and the total amount of such Indebtedness unpaid or accelerated exceeds
$10.0 million (the “cross acceleration provision”);

 

(vii)   Parent, the Company or any Significant
Subsidiary pursuant to or within the meaning of any Bankruptcy Law:

 

(1)           commences a voluntary case;

 

(2)           consents to the entry of an order for
relief against it in any voluntary case;

 

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

 

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

 

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

 

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

 

(1)           is for relief against Parent, the
Company or any Significant Subsidiary in an involuntary case;

 

(2)           appoints a Custodian of Parent, the
Company or any Significant Subsidiary or for any substantial part of its
property; or

 

(3)           orders the winding up or liquidation
of the Company or any Significant Subsidiary;

 

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

 

(ix)    any judgment or decree for the payment of
money in excess of $10.0 million (excluding the amount of any insurance
proceeds or indemnification claims available to the obligor from insurance
carriers and indemnitors who in the reasonable judgment of the Board of
Directors of the Company are creditworthy and who have acknowledged their
liability with respect thereto) is entered against the Company or any
Significant Subsidiary, remains outstanding for a period of 60 consecutive days
following such judgment and is not paid, discharged, waived or stayed (the “judgment
default provision”);

 

(x)     any Subsidiary Guaranty of a Significant
Subsidiary or group of Restricted Subsidiaries that taken together as of the
latest audited consolidated financial statements for the Company and their
Restricted Subsidiaries would constitute a Significant Subsidiary ceases to be
in full force

 

73

 

and effect (other than in
accordance with the terms of the Parent Guaranty or such Subsidiary Guaranty)
and such default continues for five Business Days or any Subsidiary Guarantor
denies or disaffirms its obligations under its Subsidiary Guaranty; or

 

(xi)    with respect to any Collateral having a fair
market value in excess of $5.0 million individually or in the aggregate,
the applicable Collateral Document or Collateral Documents, in each case, of
Parent, the Company or a Significant Subsidiary or group of Restricted
Subsidiaries that taken together as of the latest audited consolidated
financial statements for the Company and their Restricted Subsidiaries would
constitute a Significant Subsidiary ceases to be in full force and effect
(except as contemplated by the terms of this Indenture and the Guarantees) or
is declared null and void in a judicial proceeding or Parent, the Company or
any Subsidiary Guarantor that is a Significant Subsidiary or group of
Subsidiary Guarantors that taken together as of the latest audited consolidated
financial statements of Parent, the Company and their Restricted Subsidiaries
would constitute a Significant Subsidiary denies or disaffirms its obligations
under this Indenture, its Guarantee or any Collateral Document; and

 

(xii)   with respect to any Collateral having a fair
market value in excess of $5.0 million individually or in the aggregate,
(A) the failure of the security interest with respect to such Collateral
under the Collateral Documents, at any time, to be in full force and effect for
any reason other than in accordance with their terms and the terms of this
Indenture and other than the satisfaction in full of all obligations under this
Indenture and discharge of this Indenture if such failure continues for 60 days
or (B) the assertion by Parent, the Company or any Subsidiary Guarantor,
in any pleading in any court of competent jurisdiction, that any such security
interest is invalid or unenforceable, except in each case for the failure or
loss of perfection resulting from the failure of the Trustee to make filings,
renewals and continuations (or other equivalent filings) which are required to
be made or the failure of the Trustee to maintain possession of certificates
actually delivered to it representing securities pledged under the Collateral
Documents.

 

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

 

Notwithstanding the foregoing, to the extent elected
by the Company, the sole remedy for an Event of Default relating to the failure
to comply with the reporting obligations in Section 3.2 hereof,
shall, for the 365 days after the occurrence of such an Event of Default,
consist exclusively of the right to receive additional interest on the Notes at
an annual rate equal to 0.50% of the principal amount of the Notes. This
additional interest shall be payable in the same manner and on the same dates
as the stated interest payable on the Notes. The additional interest shall
accrue on all outstanding Notes from, and including, the date on which an Event
of Default relating to a failure to comply with Section 3.2 hereof
first occurs to, but not including, the 365th day thereafter (or such
earlier date on which the Event of Default relating to Section 3.2
shall have been cured or waived). On such 365th day (or earlier, if an
Event of Default relating to Section 3.2 is cured or waived prior to such
365th day), such additional interest shall cease to accrue and the Notes
shall be subject to acceleration as provided below. If the Company does not
elect to pay additional interest during the continuance of such an Event of
Default, as applicable, in accordance with this paragraph, or if such Event of
Default is continuing on such 365th day, the Notes shall be subject to
acceleration as provided above.

 

74

 

Notwithstanding the foregoing, a default under clause
(iv) or (v) of this Section 6.1(a) shall not
constitute an Event of Default until the Trustee or the Holders of 25% in
principal amount of the outstanding Notes notify the Company of the default and
the Company does not cure such default within the time specified in clause
(iv) and (v) of this paragraph after receipt of such notice.  Such notice must specify the Default, demand
that it be remedied and state that such notice is a “Notice of Default.”

 

The term “Bankruptcy Law” means Title 11,
United States Code, or any similar Federal or state law for the relief of
debtors.  The term “Custodian”
means any receiver, trustee, assignee, liquidator, custodian or similar
official under any Bankruptcy Law.

 

SECTION 6.2.            Acceleration.  If an Event of Default (other than an Event
of Default specified in Sections 6.1(a)(vii) or (viii) above
with respect to the Company) occurs and is continuing, the Trustee or the
Holders of at least 25% in principal amount of the outstanding Notes may
declare the principal of, premium, if any, and accrued but unpaid interest on
all the Notes to be due and payable. Upon such a declaration, such principal,
premium, if any, and interest shall be due and payable immediately. Under
certain circumstances, the Holders of a majority in principal amount of the
outstanding Notes may rescind any such acceleration with respect to the Notes
and its consequences. In case an Event of Default set forth in Section 6.1(a)(vii) or
(viii) above shall occur with respect to the Company, the
principal, premium, if any, and interest amount with respect to all of the
Notes shall be due and payable immediately without any declaration or other act
on the part of the Trustee or the Noteholders.

 

SECTION 6.3.            Other Remedies.  If an Event of Default occurs and is
continuing, the Trustee may pursue any available remedy to collect the payment
of principal of or interest on the Notes or to enforce the performance of any
provision of the Notes, this Indenture (including sums owed to the Trustee and
Collateral Agent and their agents and counsel), the Guarantees, Collateral
Documents or the Intercreditor Agreement.

 

The Trustee may maintain a proceeding even if it does
not possess any of the Notes or does not produce any of them in the
proceeding.  A delay or omission by the
Trustee or any Holder in exercising any right or remedy accruing upon an Event
of Default shall not impair the right or remedy or constitute a waiver of or
acquiescence in the Event of Default.  No
remedy is exclusive of any other remedy. 
All available remedies are cumulative.

 

SECTION 6.4.            Waiver of Past Defaults.  The Holders of a majority in principal amount
outstanding (including without limitation, consents obtained in connection with
a purchase of, or tender offer or exchange offer for, notes) Notes by notice to
the Trustee may waive an existing Default or Event of Default and its
consequences (except a Default or Event of Default in the payment of the
principal of, premium, if any, or interest on a Note) and rescind any such
acceleration with respect to the Notes and its consequences if
(1) rescission would not conflict with any judgment or decree of a court
of competent jurisdiction and (2) all existing Events of Default, other
than the nonpayment of the principal of, premium, if any, and interest on the
Notes that have become due solely by such declaration of acceleration, have
been cured or waived.

 

SECTION 6.5.            Control by Majority.  The Holders of a majority in principal amount
of the then outstanding Notes may direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee or of
exercising any trust or power conferred on the Trustee.  The Trustee, however, may refuse to follow any
direction that conflicts with law or this Indenture or that the Trustee
determines is unduly prejudicial to the rights of any other Noteholders or that
would involve the Trustee in personal liability.

 

75

 

SECTION 6.6.            Limitation on Suits.  Except to enforce the right to receive
payment of principal, premium, if any, or interest when due, no Holder may
pursue any remedy with respect to this Indenture or the Notes unless:

 

(i)      the Holder has previously given to the
Trustee written notice stating that an Event of Default is continuing;

 

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

 

(iii)    such Holder or Holders have offered to the
Trustee security or indemnity reasonably satisfactory to it against any loss,
liability or expense;

 

(iv)    the Trustee has not complied with the
request within 60 days after receipt of the request and the offer of security
or indemnity; and

 

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

 

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

 

SECTION 6.7.            Rights of Holders to Receive
Payment.  Notwithstanding any other
provision of this Indenture, the right of any Holder to receive payment of
principal of, premium, if any, or interest on the Notes held by such Holder, on
or after the respective due dates expressed in the Notes, or to bring suit for
the enforcement of any such payment on or after such respective dates, shall
not be impaired or affected without the consent of such Holder.

 

SECTION 6.8.            Collection Suit by Trustee.  If an Event of Default specified in Section 6.1(a)(i) or
(ii) occurs and is continuing, the Trustee may recover judgment in
its own name and as trustee of an express trust against the Company for the
whole amount then due and owing (together with interest on any unpaid interest
to the extent lawful) and the amounts provided for in Section 7.6.

 

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
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel) and the Holders allowed in any judicial proceedings
relative to Parent, the Company, its Subsidiaries or their respective creditors
or properties and, unless prohibited by law or applicable regulations, may vote
on behalf of the Holders in any election of a trustee in bankruptcy or other
Person performing similar functions, and any Custodian in any such judicial
proceeding is hereby authorized by each Holder to make payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments
directly to the Holders, to pay to the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and its counsel, and any other amounts due the Trustee under Section 7.6.  Nothing herein contained shall be deemed to
authorize the Trustee to authorize or consent to or accept or adopt on behalf
of any Holder any plan 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 Holder in such
proceeding.

 

76

 

SECTION 6.10.          Priorities.  Subject to the terms of the Intercreditor
Agreement, Collateral Documents and Section 11.4(f), the Trustee
shall pay out any money or property received by it, whether pursuant to the
foreclosure or other remedial provisions contained in the Collateral Documents
or otherwise, in the following order:

 

First:  to the Trustee and Collateral Agent for
amounts due to each of them under Section 7.6 and under the
Collateral Documents;

 

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

 

Third:  to Parent or to the Company or, to the extent
the Trustee receives any amount for any Subsidiary Guarantor, to such
Subsidiary Guarantor.

 

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

 

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 does not apply to a suit by the Trustee, a suit by a
Holder pursuant to Section 6.7 or a suit by Holders of more than
10% in outstanding principal amount of the Notes.

 

ARTICLE VII

 

Trustee

 

SECTION 7.1.            Duties of Trustee and Collateral
Agent.

 

(a)           If an Event of Default has occurred
and is continuing, the Trustee or the Collateral Agent shall exercise the
rights and powers vested in it by this Indenture, the Collateral Documents and
the Intercreditor Agreement, as the case may be, and use the same degree of
care and skill in their exercise as a prudent Person would exercise or use
under the circumstances in the conduct of such Person’s own affairs; provided that if an Event of Default
occurs and is continuing, the Trustee and the Collateral Agent shall be under
no obligation to exercise any of the rights or powers under this Indenture, the
Notes, the Guarantees, the Collateral Documents, the First Lien Intercreditor
Agreement and the Intercreditor Agreement at the request or direction of any of
the Holders unless such Holders have offered the Trustee or the Collateral
Agent indemnity, security or prefunding satisfactory to the Trustee or the
Collateral Agent in its sole discretion, as applicable, against loss, liability
or expense.

 

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

 

(i)      the Trustee or the Collateral Agent
undertake to perform such duties and only such duties as are specifically set
forth in this Indenture, the Collateral Documents and the Intercreditor

 

77

 

Agreement and no implied
covenants or obligations shall be read into this Indenture, any Collateral
Document and the Intercreditor Agreement against the Trustee or the Collateral
Agent; and

 

(ii)     in the absence of gross negligence or bad
faith on its part, the Trustee or Collateral Agent 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 or Collateral Agent
under this Indenture, the Notes, the Guarantees, the Collateral Documents and
the Intercreditor Agreement, as applicable. 
However, in the case of any such certificates or opinions which by any
provisions hereof are specifically required to be furnished to the Trustee or
the Collateral Agent, the Trustee or the Collateral Agent shall examine such
certificates and opinions to determine whether or not they conform to the
requirements of this Indenture, the Notes, the Guarantees, the Collateral
Documents and the Intercreditor Agreement, as the case may be (but need not
confirm or investigate the accuracy of mathematical calculations or other facts
stated therein).

 

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

 

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

 

(ii)     neither the Trustee nor the Collateral
Agent shall be liable for any error of judgment made in good faith by a Trust
Officer or Trust Officers unless it is proved that the Trustee or the
Collateral Agent was negligent in ascertaining the pertinent facts; and

 

(iii)    neither the Trustee nor the Collateral Agent
shall be liable with respect to any action it takes or omits to take in good
faith in accordance with a direction received by it pursuant to Section 6.5.

 

(iv)    The Collateral Agent shall not have any
fiduciary or other implied duties of any kind or nature to any person,
regardless of whether an Event of Default has occurred and is continuing.

 

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

 

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

 

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

 

(g)           Every provision of this Indenture,
the Collateral Documents, the First Lien Intercreditor Agreement or the
Intercreditor Agreement relating to the conduct or affecting the liability of
or affording protection to the Trustee and the Collateral Agent shall be
subject to the provisions of this Section.

 

78

 

(h)           The Trustee and the Collateral Agent
shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders unless
such Holders shall have offered to the Trustee or the Collateral Agent, as
applicable, security, prefunding or indemnity reasonably satisfactory to it
against the costs, expenses (including reasonable attorneys’ fees and expenses)
and liabilities that might be incurred by it in compliance with such request or
direction.

 

SECTION 7.2.            Rights of Trustee and Collateral
Agent.

 

(a)           Each of the Trustee and the
Collateral Agent may conclusively rely and shall be protected in acting upon
any resolution, certificate, statement, instrument, opinion, notice, request,
direction, consent, order, bond or any other paper or document believed by it
to be genuine and to have been signed or presented by the proper Person or
Persons.  The Trustee and the Collateral
Agent need not investigate any fact or matter stated in the document.

 

(b)           Before the Trustee or the Collateral
Agent acts or refrains from acting, it may require an Officers’ Certificate or
an Opinion of Counsel.  Neither the
Trustee nor the Collateral Agent shall be liable for any action it takes or
omits to take in good faith in reliance on an Officers’ Certificate or Opinion
of Counsel.

 

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

 

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

 

(e)           Each of the Trustee and the
Collateral Agent may consult with counsel of its selection, and the advice or
opinion of counsel with respect to legal matters relating to this Indenture,
the Notes, the Guarantees, the Collateral Documents and the Intercreditor
Agreement shall be full and complete authorization and protection from
liability in respect to any action taken, omitted or suffered by it hereunder
or under the Notes, the Guarantees, the Collateral Documents, the First Lien
Intercreditor Agreement and the Intercreditor Agreement in good faith and in
accordance with the advice or opinion of such counsel.

 

(f)            The Trustee and the Collateral Agent
shall not be bound to make any investigation into any statement, warranty or
representation, or the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, notice, request, direction, consent, order,
bond or other paper or document made or in connection with this Indenture, any
other Collateral Document or the Intercreditor Agreement; moreover, the Trustee
and the Collateral Agent shall not be bound to make any investigation into
(i) the performance or observance of any of the covenants, agreements or
other terms or conditions set forth herein, in any other Collateral Document,
the First Lien Intercreditor Agreement or the Intercreditor Agreement,
(ii) the occurrence of any default, or the validity, enforceability,
effectiveness or genuineness of this Indenture, any other Collateral Document,
the First Lien Intercreditor Agreement, the Intercreditor Agreement or any
other agreement, instrument or document, (iii) the creation, perfection or
priority of any Lien purported to be created by the Collateral Documents,
(iv) the value or the sufficiency of any Collateral, (v) the
satisfaction of any condition set forth in any Collateral Document, other than
to

 

79

 

confirm receipt of items expressly required to be
delivered to the Collateral Agent or (vi) the facts or matters stated in
any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note other evidence of
indebtedness or other paper or document, but each of the Trustee and the
Collateral Agent, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee
or the Collateral Agent shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises
of the Company, personally or by agent or attorney and shall incur no liability
or additional liability of any kind by reason of such inquiry or
investigation.  The Trustee and the
Collateral Agent shall have no liability with respect to any action or inaction
taken by or with respect to any Sub-Collateral Agent (as defined in the
Security Agreement).

 

(g)           The Trustee shall not be deemed to
have knowledge of any Default or Event of Default except any Default or Event
of Default of which a Trust Officer shall have (x) received written
notification at the Corporate Trust Office of the Trustee and such notice
references the Notes and this Indenture or (y) obtained “actual
knowledge.”  “Actual knowledge”
shall mean the actual fact or statement of knowing by a Trust Officer without
independent investigation with respect thereto.

 

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

 

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

 

(j)            The Trustee and the Collateral Agent
may request that the Company deliver a certificate setting forth the names of
individuals and/or titles of officers authorized at such time to take specified
actions pursuant to this Indenture.

 

SECTION 7.3.            Individual Rights of Trustee and
Collateral Agent.  Subject to the TIA
each of the Trustee and the Collateral Agent in its individual or any other
capacity may become the owner or pledgee of Notes and may otherwise deal with
Parent, the Company, the Subsidiary Guarantors or their Affiliates with the
same rights it would have if it were not Trustee or Collateral Agent,
respectively.  Any Paying Agent,
Registrar, co-registrar or co-paying agent may do the same with like
rights.  However, the Trustee must comply
with Section 7.9.  In
addition, the Trustee shall be permitted to engage in transactions with the
Company; provided, however, that if the Trustee acquires any
conflicting interest the Trustee must (i) eliminate such conflict within
90 days of acquiring such conflicting interest, (ii) apply to the SEC for
permission to continue acting as Trustee or (iii) resign.

 

SECTION 7.4.            Disclaimer.  Each of the Trustee and the Collateral Agent
shall not be responsible for and makes no representation as to the validity or
adequacy of this Indenture, the Notes, the Subsidiary Guarantees, the
Collateral Documents, the First Lien Intercreditor Agreement or the
Intercreditor Agreement, it shall not be accountable for the Company’s use of
the Notes or the proceeds from the Notes, and it shall not be responsible for
any statement of the Company in this Indenture or in any document issued in
connection with the sale of the Notes or in the Notes other than the Trustee’s
certificate of authentication or for the use or application of any funds
received by any Paying Agent other than the Trustee.

 

80

 

SECTION 7.5.            Notice of Defaults.  If a Default occurs and is continuing and is
known to the Trustee, the Trustee shall mail to each Holder, with a copy to the
Collateral Agent, notice of the Default within 90 days after the Trustee
obtains such knowledge.  Except in the
case of a Default in payment of principal of, premium, if any, or interest on
any Note, the Trustee may withhold the notice if and so long as a committee of
Trust Officers of the Trustee in good faith determines that withholding the
notice is in the interests of Holders.

 

SECTION 7.6.            Compensation and Indemnity.  The Company shall pay to each of the Trustee
and the Collateral Agent from time to time such compensation for its services
as the parties shall agree in writing from time to time.  The Trustee’s compensation and the Collateral
Agent’s compensation shall not be limited by any law on compensation of a
trustee of an express trust.  The Company
shall reimburse each of the Trustee and the Collateral Agent upon request for
all reasonable out-of-pocket expenses incurred or made by it, including, but
not limited to, costs of collection, costs of preparing and reviewing reports,
certificates and other documents, costs of preparation and mailing of notices
to Holders and reasonable costs of counsel, in addition to the compensation for
its services.  Such expenses shall
include the reasonable compensation and expenses, disbursements and advances of
the Trustee’s agents, counsel, accountants and experts.  The Company shall indemnify the Collateral
Agent, any predecessor Collateral Agent, the Trustee or any predecessor Trustee
in each of its capacities hereunder (including Paying Agent, and Registrar),
and each of their officers, directors, employees, counsel and agents, against
any and all loss, liability or expense (including, but not limited to,
reasonable attorneys’ fees and expenses) incurred by it in connection with the
administration of this trust and the performance of its duties hereunder and
under the Notes, the Guarantees, the Collateral Documents and the Intercreditor
Agreement, including the costs and expenses of enforcing this Indenture
(including this Section 7.6), the Notes, the Guarantees, the
Collateral Documents, the First Lien Intercreditor Agreement and the
Intercreditor Agreement and of defending itself against any claims (whether
asserted by any Holder, the Company or otherwise).  The Collateral Agent and the Trustee shall
notify the Company promptly of any claim for which it may seek indemnity.  Failure by the Collateral Agent and the
Trustee to so notify the Company shall not relieve the Company of its
obligations hereunder.  The Company shall
defend the claim and the Collateral Agent and the Trustee may have separate
counsel and the Company shall pay the reasonable fees and expenses of such
counsel.  The Company need not reimburse
any expense or indemnify against any loss, liability or expense incurred by the
Collateral Agent and the Trustee through their own willful misconduct or
negligence or bad faith.

 

To secure the Company’s payment obligations in this
Section, the Collateral Agent and the Trustee shall have a lien prior to the
Notes on all money or property held or collected by the Trustee other than
money or property held in trust to pay principal of and interest on particular
Notes.  The right of the Collateral Agent
and the Trustee to receive payment of any amounts due under this Section 7.6
shall not be subordinate to any other liability or indebtedness of the Company.

 

The Company’s payment obligations pursuant to this
Section and any lien arising hereunder shall survive the discharge of this
Indenture and the resignation or removal of the Trustee or Collateral
Agent.  When the Trustee or Collateral
Agent incurs expenses after the occurrence of a Default specified in Section 6.1(a)(vii) or
(viii) with respect to the Company, the expenses are intended to
constitute expenses of administration under any Bankruptcy Law.

 

Pursuant to Section 10.1, the obligations
of the Company hereunder are jointly and severally guaranteed by the
Guarantors.

 

81

 

SECTION 7.7.            Replacement of Trustee.  The Trustee may resign at any time by so
notifying the Company.  The Holders of a
majority in principal amount of the Notes may remove the Trustee by so
notifying the Company and the Trustee in writing and may appoint a successor
Trustee.  The Company shall remove the
Trustee if:

 

(i)      the Trustee fails to comply with Section 7.9;

 

(ii)     the Trustee is adjudged bankrupt or
insolvent;

 

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

 

(iv)    the Trustee otherwise becomes incapable of
acting.

 

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

 

A successor Trustee shall deliver a written acceptance
of its appointment to the retiring Trustee and to the Company.  Thereupon the resignation or removal of the
retiring Trustee shall become effective, and the successor Trustee shall have
all the rights, powers and duties of the Trustee under this Indenture.  The successor Trustee shall mail a notice of
its succession to Holders.  The retiring
Trustee shall promptly transfer all property held by it as Trustee to the
successor Trustee, subject to the lien provided for in Section 7.6.

 

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

 

If the Trustee fails to comply with Section 7.9,
unless the Trustee’s duty to resign is stayed, any Holder may petition any
court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee.

 

Notwithstanding the replacement of the Trustee
pursuant to this Section 7.7, the Company’s obligations under Section
7.6 shall continue for the benefit of the retiring Trustee.

 

SECTION 7.8.            Successor Trustee by Merger.  If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all its corporate trust
business or assets to, another corporation or banking association, the
resulting, surviving or transferee corporation without any further act shall be
the successor Trustee.

 

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

 

82

 

such certificates shall have the full force which it is anywhere in the
Notes or in this Indenture provided that the certificate of the Trustee shall
have.

 

SECTION 7.9.            Eligibility; Disqualification.  The Trustee shall have a combined capital and
surplus of at least $50 million as set forth in its most recent filed annual
report of condition.

 

This Indenture shall always have a Trustee who
satisfies the requirements of TIA § 310(a)(1), (2) and (5).  The Trustee is subject to TIA § 310(b).

 

SECTION 7.10.          Limitation on Duty of Trustee and
Collateral Agent in Respect of Collateral; Indemnification.

 

(a)           Beyond the exercise of reasonable
care in the custody thereof, neither the Trustee nor the Collateral Agent shall
have any duty as to any Collateral in their possession or control or in the
possession or control of any agent or bailee or any income thereon or as to
preservation of rights against prior parties or any other rights pertaining
thereto and neither the Trustee nor the Collateral Agent shall be responsible
for filing any financing or continuation statements or recording any documents
or instruments in any public office at any time or times or otherwise
perfecting or maintaining the perfection of any security interest in the
Collateral.  The Trustee and the
Collateral Agent shall be deemed to have exercised reasonable care in the
custody of the Collateral in their possession if the Collateral is accorded
treatment substantially equal to that which they accord their own property and
shall not be liable or responsible for any loss or diminution in the value of
any of the Collateral, by reason of the act or omission of any carrier,
forwarding agency or other agent or bailee selected by the Trustee or the
Collateral Agent in good faith.

 

Neither the Trustee nor the Collateral Agent shall
have any duty to ascertain or inquire as to the performance or observance of
any of the terms of this Indenture, the Notes, the Guarantees, the Collateral
Documents and the Intercreditor Agreement by the Company, the Subsidiary
Guarantors or any other Person.

 

SECTION 7.11.          Preferential Collection of Claims
Against Company.  The Trustee is
subject to TIA § 311(a), excluding any creditor relationship listed in TIA
§ 311(b).  A Trustee who has
resigned or been removed shall be subject to TIA § 311(a) to the
extent indicated therein.

 

SECTION 7.12.          Reports by Trustee to Holders of
the Notes.  Within 60 days after each
May 15, beginning with May 15, 2011, the Trustee shall mail to the
Holders of the Notes a brief report dated as of such reporting date that
complies with TIA § 313(a) (but if no event described in TIA
§ 313(a) has occurred within the twelve months preceding the reporting
date, no report need be transmitted). 
The Trustee also shall comply with TIA § 313(b).  The Trustee shall also transmit by mail all
reports as required by TIA § 313(c).

 

A copy of each report at the time of its mailing to
the Holders of Notes shall be mailed to the Company and filed with the SEC and
each stock exchange on which any Notes are listed.  The Company shall promptly notify the Trustee
in writing when any Notes are listed on any stock exchange and of any delisting
thereof.

 

83

 

 

ARTICLE VIII

Discharge
of Indenture; Defeasance

 

SECTION 8.1.              Discharge of Liability on
Notes; Defeasance.

 

(a)           When (i) the Company delivers to the Trustee all
outstanding Notes (other than Notes replaced pursuant to Section 2.7)
for cancellation or (ii) all outstanding Notes not theretofore delivered
for cancellation (x) have become due and payable, whether at maturity or
on a Redemption Date as a result of the mailing of a notice of redemption
pursuant to Article V hereof, or (y) will become due and payable
within one year or are to be called for redemption within one year under
arrangements reasonably satisfactory to the Trustee and, in the case of
clauses (x) and (y), the Company irrevocably deposits with the
Trustee funds sufficient to pay at maturity or upon redemption all outstanding
Notes, including interest thereon to maturity or such Redemption Date, and if
in any case the Company pays all other sums payable hereunder by the Company,
then this Indenture shall, subject to Section 8.1(c), cease to be
of further effect.

 

(b)           Subject to Sections 8.1(c) and
8.2, the Company at its option and at any time may terminate (i) all
the obligations of the Company and any Guarantor under the Notes, this
Indenture and the Collateral Documents (“legal defeasance option”) or (ii) the
obligations of the Company and any Guarantors under Sections 3.2, 3.3,
3.4, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10,
3.11, 3.12, 3.15, 3.16 and 4.1(a)(iii) of
this Indenture and under the Collateral Documents(whereupon the Collateral
shall be automatically released) and the Company and the Guarantors may omit to
comply with and shall have no liability in respect of any term, condition or
limitation set forth in any such covenant or provision, whether directly or
indirectly, by reason of any reference elsewhere herein to any such covenant or
provision or by reason of any reference in any such covenant to any other
provision herein or in any other document and such omission to comply with such
covenants or provisions shall no longer constitute a Default or an Event of
Default under Section 6.1(a)(iii) (only with respect to Section 4.1(a)(iii)),
6.1(a)(iv) (only with respect to such covenants), 6.1(a)(vi),
6.1(a)(vii) or (viii) (in the case of each of Sections 6.1(a)(vii) and
(viii), only with respect to Significant Subsidiaries), Section 6.1(a)(ix) (clause
(ii) being referred to as the “covenant defeasance option”), but
except as specified above, the remainder of this Indenture and the Notes shall
be unaffected thereby.  The Company may
exercise its legal defeasance option notwithstanding its prior exercise of its
covenant defeasance option.

 

If the Company exercises its
legal defeasance option, payment of the Notes may not be accelerated because of
an Event of Default.  If the Company
exercises its covenant defeasance option, payment of the Notes may not be
accelerated because of an Event of Default specified in Section 6.1(a)(iii) (only
with respect to Section 4.1(a)(iii)), 6.1(a)(iv) (only
with respect to the covenants subject to such covenant defeasance),6.1(a)(vi),
6.1(a)(vii) or (viii) (in the case of each of Sections
6.1(a)(vii) and (viii), only with respect to Significant Subsidiaries)
or 6.1(a)(ix).

 

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

 

(c)           Notwithstanding the provisions of Sections
8.1(a) and (b), the Company’s obligations in Sections 2.2,
2.3, 2.4, 2.5, 2.6, 2.9, 2.10, 2.12,
3.1, 6.7, 6.8, 7.1, 7.2, 7.6, 7.7,
8.1(b) (with respect to legal defeasance), 8.3,  8.4, 8.5 and 8.6 shall
survive until the Notes have been paid in full. 
Thereafter, the Company’s obligations in Sections 6.7, 7.6,
8.4 and 8.5 shall survive.

 

84

 

SECTION 8.2.              Conditions to Defeasance.  The Company may exercise its legal defeasance
option or its covenant defeasance option only if:

 

(i)      the Company shall
irrevocably deposit in trust (the “defeasance trust”) with the Trustee
money or U.S. Government Obligations for the payment of the principal amount
and interest on the outstanding Notes issued hereunder on the Stated Maturity
or on the Redemption Date, as the case may be;

 

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

 

(iii)    123 days pass after the
deposit is made and during the 123-day period no Default specified in Section 6.1(vii) and
(viii) with respect to the Company occurs which is continuing at
the end of the period;

 

(iv)    the deposit does not
constitute a default under any other agreement binding the Company and is not
prohibited by Article XII;

 

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

 

(vi)    in the case of covenant
defeasance, the Company has delivered to the Trustee an Opinion of Counsel
confirming that, subject to customary assumptions and exclusions, the Holders
of the respective outstanding Notes shall not recognize income, gain or loss
for Federal income tax purposes as a result of such deposit and covenant
defeasance and shall be subject to Federal income tax on the same amounts and
in the same manner and at the same times as would have been the case if such
deposit and covenant defeasance had not occurred;

 

(vii)   in the case of legal
defeasance, the Company has delivered to the Trustee an Opinion of Counsel
confirming that, subject to customary assumptions and exclusions, such Opinion
of Counsel is based on a ruling of the Internal Revenue Service or other change
in applicable Federal income tax law, in either case to the effect that, the
Holders of the respective outstanding Notes shall not recognize income, gain or
loss for Federal income tax purposes as a result of such deposit and legal defeasance
and shall be subject to Federal income tax on the same amounts and in the same
manner and at the same times as would have been the case if such deposit and
legal defeasance had not occurred; and

 

(viii)  the Company delivers to
the Trustee and Officers’ Certificate and an Opinion of Counsel, each stating
that all conditions precedent to the defeasance and discharge of the Notes as
contemplated by this Article VIII have been complied with.

 

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

 

85

 

SECTION 8.3.              Application of Trust Money.  The Trustee shall hold in trust money or U.S.
Government Obligations deposited with it pursuant to this Article VIII.  It shall apply the deposited money and the
money from U.S. Government Obligations through the Paying Agent and in
accordance with this Indenture to the payment of principal of and interest on
the Notes.

 

SECTION 8.4.              Repayment to Company.  Anything herein to the contrary
notwithstanding, the Trustee shall deliver or pay to the Company from time to
time upon Company Order any money or U.S. Government Obligations held by it as
provided in this Article VIII 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 legal defeasance
or covenant defeasance, as applicable, provided
that the Trustee shall not be required to liquidate any U.S. Government
Obligations in order to comply with the provisions of this paragraph.

 

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

 

SECTION 8.5.              Indemnity for U.S. Government
Obligations.  The Company shall pay
and shall indemnify the Trustee against any tax, fee or other charge imposed on
or assessed against deposited U.S. Government Obligations or the principal and
interest received on such U.S. Government Obligations.

 

SECTION 8.6.              Reinstatement.  If the Trustee or Paying Agent is unable to
apply any money or U.S. Government Obligations in accordance with this Article VIII
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 each Subsidiary Guarantor
under this Indenture, the Notes, the Subsidiary Guarantees and the Collateral
Documents shall be revived and reinstated as though no deposit had occurred
pursuant to this Article VIII until such time as the Trustee or
Paying Agent is permitted to apply all such money or U.S. Government
Obligations in accordance with this Article VIII; provided, however,
that, if the Company or the Subsidiary Guarantors have made any payment of
interest on or principal of any Notes because of the reinstatement of its
obligations, the Company or the Subsidiary 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
Paying Agent.

 

ARTICLE IX

Amendments

 

SECTION 9.1.              Without Consent of Holders.  This Indenture, the Notes, the Collateral
Documents and the Intercreditor Agreement may be amended without notice to or
consent of any Holder:

 

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

 

(ii)     to comply with Article IV
in respect of the assumption by a Successor Company of an obligations of the
Company, Parent or any Subsidiary Guarantor under this Indenture;

 

86

 

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

 

(iv)    to add Guarantees with
respect to the Notes or to add additional assets that secure the Notes,
including any Subsidiary Guaranty;

 

(v)     to add to the covenants of
the Company, Parent or any Subsidiary Guarantor for the benefit of the Holders
of the Notes or to surrender any right or power conferred upon the Company,
Parent or any Subsidiary Guarantor;

 

(vi)    to make any change that
does not adversely affect the rights of any Holder of the Notes;

 

(vii)   to comply with any
requirement of the SEC in connection with the qualification of this Indenture
under the TIA;

 

(viii)  to make any amendment to
the provisions of this Indenture relating to the form, authentication, transfer
and legending of Notes; provided, however,
that (a) compliance with this Indenture as so amended would not result in
Notes being transferred in violation of the Securities Act or any other
applicable securities law and (b) such amendment does not materially
affect the rights of Holders to transfer Notes;

 

(ix)    to release Liens in favor
of the Collateral Agent in the Collateral as provided in Section 11.3
or otherwise in accordance with the terms of this Indenture and the Collateral
Documents;

 

(x)     to provide for the
appointment of a successor trustee; provided
that the successor trustee is otherwise qualified and eligible to act as such
under the terms of this Indenture; or

 

(xi)    to conform the text of
this Indenture, the Notes, the Guarantees, the Collateral Documents or the
Intercreditor Agreement to any provision of the “Description of the New Notes”
section of the Offering Circular to the extent that such provision in the
“Description of the New Notes” is intended to be a verbatim recitation of a
provision of this Indenture, the Notes, the Guarantees, the Collateral
Documents or the Intercreditor Agreement.

 

In addition, no consent of
the Holders shall be required under the Collateral Documents or the
Intercreditor Agreement to any amendments and other modifications to the
Collateral Documents or the Intercreditor Agreement (A) to add other parties
(or any authorized agent thereof or trustee therefor) holding Pari Passu Lien
Indebtedness that are Incurred in compliance with this Indenture and the
Collateral Documents, (B) to establish that the Liens on any Collateral
securing such Pari Passu Lien Indebtedness shall be pari passu under the Intercreditor Agreement with the Liens
on such Collateral securing the Obligations under this Indenture and the Notes,
all on the terms provided for in the Intercreditor Agreement as in effect
immediately prior to such amendment or other modification and (C) to
provide that the Liens securing the Notes are senior to the Liens securing
other Junior Lien Obligations.

 

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

 

87

 

SECTION 9.2.              With Consent of Holders.  This Indenture, the Notes, the Collateral
Documents or the Intercreditor Agreement may be amended with the consent of the
Holders of a majority in principal amount of the Notes then outstanding
(including consents obtained in connection with a tender offer or exchange for
the Notes).  Any past default or
compliance with the provisions of this Indenture, the Notes, the Collateral
Documents or the Intercreditor Agreement may be waived with the consent of the
Holders of at least a majority in principal amount of the Notes then
outstanding.  However, without the
consent of each Holder of an outstanding Note affected, no amendment or waiver
may:

 

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

 

(ii)     reduce the rate of or
extend the time for payment of interest on any Note;

 

(iii)    reduce the principal
amount of or change the Stated Maturity of any Note;

 

(iv)    change the provisions
applicable to the redemption of any Note as described in Section 5.1;

 

(v)     make any Note payable in a
currency other than that stated in the Note;

 

(vi)    impair the right of any
Holder of the Notes to receive payment of principal of and interest on such
Holder’s Notes on or after the due dates therefor or to institute suit for the
enforcement of any payment on or with respect to such Holder’s Notes;

 

(vii)   make any change in the
amendment provisions in this Section 9.2;

 

(viii)  make any change in the
ranking or priority of any Note that would adversely affect the Noteholders; or

 

(ix)    make any change in or
release (other than in accordance with this Indenture) any Subsidiary Guaranty
that would adversely affect the Noteholders.

 

Notwithstanding the
foregoing, (x) in addition to the release of Collateral expressly
permitted by this Indenture, the Collateral Documents and the Intercreditor
Agreement, all or any portion of the Collateral may be released under this
Indenture, the Collateral Documents and the Intercreditor Agreement as to the
Notes, (y) any Subsidiary Guarantor may be released from its obligations
under its Subsidiary Guaranty and (z)  the Intercreditor Agreement may be
amended in a manner adverse to the Holders, in each case, with the consent of
the Holders of at least 662/3% in principal
amount of Notes then outstanding.

 

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

 

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

 

88

 

SECTION 9.3.              Effect of Consents and Waivers.  A consent to an amendment or a waiver by a
Holder of a Note shall bind the Holder and every subsequent Holder of that Note
or portion of the Note that evidences the same debt as the consenting Holder’s
Note, even if notation of the consent or waiver is not made on the Note.  After an amendment or waiver becomes effective,
it shall bind every Holder unless it makes a change described in clauses (i) through
(ix) of Section 9.2, in which case the amendment or waiver or
other action shall bind each Holder who has consented to it and every
subsequent Holder that evidences the same debt as the consenting Holder’s Notes.  An amendment or waiver made pursuant to Section 9.2
shall become effective upon receipt by the Trustee of the requisite number of
written consents.

 

The Company may, but shall
not be obligated to, fix a record date for the purpose of determining the
Holders entitled to give their consent or take any other action described above
or required or permitted to be taken pursuant to this Indenture.  If a record date is fixed, then
notwithstanding the immediately preceding paragraph, those Persons who were Holders
at such record date (or their duly designated proxies), and only those Persons,
shall be entitled to give such consent or to take any such action, whether or
not such Persons continue to be Holders after such record date.

 

SECTION 9.4.              Notation on or Exchange of
Notes.  If an amendment changes the
terms of a Note, the Trustee may require the Holder of the Note to deliver it
to the Trustee.  The Trustee may place an
appropriate notation on the Note regarding the changed terms and return it to
the Holder.  Alternatively, if the
Company or the Trustee so determines, the Company in exchange for the Note
shall issue and the Trustee shall authenticate a new Note that reflects the
changed terms.  Failure to make the
appropriate notation or to issue a new Note shall not affect the validity of
such amendment.

 

SECTION 9.5.              Trustee and Collateral Agent To
Sign Amendments.  The Trustee and
Collateral Agent shall sign any amendment, supplement or waiver authorized
pursuant to this Article IX if the amendment, supplement or waiver
does not, in the sole determination of the Trustee or Collateral Agent,
adversely affect the rights, duties, liabilities or immunities of the Trustee
or Collateral Agent.  If it does, the
Trustee or Collateral Agent may but need not sign it.  In signing any amendment, supplement or
waiver pursuant to this Article IX, the Trustee or Collateral Agent
shall be entitled to receive, and (subject to Sections 7.1 and 7.2)
shall be fully protected in relying upon, an Officers’ Certificate and an Opinion
of Counsel stating that such amendment, supplement or waiver is authorized or
permitted by or complies with this Indenture, the Collateral Documents and the
Intercreditor Agreement and that such amendment, supplement or waiver is the
legal, valid and binding obligation of the Company, enforceable against the
Company in accordance with its terms, subject to customary exceptions.  Notwithstanding the foregoing, no Opinion of
Counsel shall be required for the Trustee or Collateral Agent to execute any amendment
or supplement adding a new Subsidiary Guarantor under this Indenture.

 

SECTION 9.6.              Compliance with Trust Indenture
Act.  Every amendment to this
Indenture and the Notes shall be set forth in an amended or supplemental
indenture that complies with the TIA as then in effect.

 

ARTICLE X

Guarantees

 

SECTION 10.1.            Guarantees.  Subject to the provisions of this Article X,
each Guarantor hereby fully, unconditionally and irrevocably guarantees, as
primary obligor and not merely as surety, jointly and severally with each other
Guarantor, to each Holder of the Notes, to the extent lawful, and the

 

89

 

Trustee the full and
punctual payment when due, whether at maturity, by acceleration, by redemption
or otherwise, of the principal of, premium, if any, and interest on the Notes
and all other obligations of the Company under this Indenture and the Notes
(including, without limitation, interest accruing after the filing of any
petition in bankruptcy, or the commencement of any insolvency, reorganization
or like proceeding, relating to the Company or any Guarantor whether or not a
claim for post-filing or post-petition interest is allowed in such proceeding
and the obligations under Section 7.6) and the Collateral Documents
(all the foregoing being hereinafter collectively called the “Guarantor
Obligations”).  Each Guarantor agrees
(to the extent lawful) that the Guarantor Obligations may be extended or
renewed, in whole or in part, without notice or further assent from it, and
that it shall remain bound under this Article X notwithstanding any
extension or renewal of any Guarantor Obligation.

 

Each Guarantor waives (to
the extent lawful) presentation to, demand of, payment from and protest to the
Company of any of the Guarantor Obligations and also waives (to the extent
lawful) notice of protest for nonpayment. 
Each Guarantor waives (to the extent lawful) notice of any default under
the Notes or the Guarantor Obligations.

 

Each Guarantor further
agrees that its Guarantee herein constitutes a Guarantee of payment when due
(and not a Guarantee of collection) and waives any right to require that any
resort be had by any Holder to any security held for payment of the Guarantor
Obligations.

 

Except as set forth in Section 4.2,
Section 10.2 and Article VIII, the obligations of each
Guarantor hereunder shall not be subject to any reduction, limitation,
impairment or termination for any reason (other than payment of the Guarantor
Obligations in full), including any claim of waiver, release, surrender,
alteration or compromise, and shall not (to the extent lawful) be subject to
any defense of setoff, counterclaim, recoupment or termination whatsoever or by
reason of the invalidity, illegality or unenforceability of the Guarantor Obligations
or otherwise.  Without limiting the
generality of the foregoing, the obligations of each Guarantor herein shall not
(to the extent lawful) be discharged or impaired or otherwise affected by (a) the
failure of any Holder to assert any claim or demand or to enforce any right or
remedy against the Company or any other person under this Indenture, the Notes,
the Collateral Documents the Intercreditor Agreement or any other agreement or
otherwise; (b) any extension or renewal of any thereof; (c) any rescission,
waiver, amendment or modification of any of the terms or provisions of this
Indenture, the Notes, the Collateral Documents, the First Lien Intercreditor
Agreement, the Intercreditor Agreement or any other agreement; (d) the
release of any security held by any Holder or the Collateral Agent for the
Guarantor Obligations or any of them; (e) the failure of any Holder to
exercise any right or remedy against any other Guarantor; (f) any change
in the ownership of the Company; (g) any default, failure or delay,
willful or otherwise, in the performance of the Guarantor Obligations; or (h) any
other act or thing or omission or delay to do any other act or thing which may
or might in any manner or to any extent vary the risk of any Guarantor or would
otherwise operate as a discharge of such Guarantor as a matter of law or
equity.

 

Each Guarantor agrees that
its Guarantee herein shall remain in full force and effect until payment in
full of all the Guarantor Obligations or such Guarantor is released from its
Guarantee in compliance with Section 4.2, Section 10.2
and Article VIII.  Each
Guarantor further agrees that its Guarantee herein shall continue to be
effective or be reinstated, as the case may be, if at any time payment, or any
part thereof, of principal of, premium, if any, or interest on any of the
Guarantor Obligations is rescinded or must otherwise be restored by any Holder
upon the bankruptcy or reorganization of the Company or otherwise.

 

90

 

In furtherance of the
foregoing and not in limitation of any other right which any Holder has at law
or in equity against any Guarantor by virtue hereof, upon the failure of the
Company to pay any of the Guarantor Obligations when and as the same shall
become due, whether at maturity, by acceleration, by redemption or otherwise,
each Guarantor hereby promises to and shall, upon receipt of written demand by
the Trustee, forthwith pay, or cause to be paid, in cash, to the Trustee or the
Trustee on behalf of the Holders an amount equal to the sum of (i) the
unpaid amount of such Guarantor Obligations then due and owing and (ii) accrued
and unpaid interest on such Guarantor Obligations then due and owing (but only
to the extent not prohibited by law) (including interest accruing after the
filing of any petition in bankruptcy or the commencement of any insolvency,
reorganization or like proceeding relating to the Company or any Guarantor
whether or not a claim for post-filing or post-petition interest is allowed in
such proceeding).

 

Each Guarantor further
agrees that, as between such Guarantor, on the one hand, and the Holders, on
the other hand, (x) the maturity of the Guarantor Obligations guaranteed
hereby may be accelerated as provided in this Indenture for the purposes of its
Guarantee herein, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the Guarantor Obligations guaranteed
hereby and (y) in the event of any such declaration of acceleration of
such Guarantor Obligations, such Guarantor Obligations (whether or not due and
payable) shall forthwith become due and payable by the Guarantor for the
purposes of this Guarantee.

 

Each Guarantor also agrees
to pay any and all reasonable costs and expenses (including reasonable
attorneys’ fees) incurred by the Trustee or the Holders in enforcing any rights
under this Section.

 

Neither the Company nor the
Guarantors shall be required to make a notation on the Notes to reflect any
Guarantee or any release, termination or discharge thereof and any such
notation shall not be a condition to the validity of any Guarantee.

 

SECTION 10.2.            Limitation on Liability;
Termination, Release and Discharge.

 

(a)           Any term or provision of this
Indenture to the contrary notwithstanding, the obligations of each Subsidiary
Guarantor hereunder shall be limited to the maximum amount as shall, after
giving effect to all other contingent and fixed liabilities of such Subsidiary
Guarantor and after giving effect to any collections from or payments made by
or on behalf of any other Subsidiary Guarantor in respect of the obligations of
such other Subsidiary Guarantor under its Subsidiary Guarantee or pursuant to
its contribution obligations under this Indenture, result in the obligations of
such Subsidiary Guarantor under its Subsidiary Guarantee not constituting a
fraudulent conveyance or fraudulent transfer under federal or state law and not
otherwise being void or voidable under any similar laws affecting the rights of
creditors generally.

 

(b)           A Subsidiary Guaranty by a Subsidiary
Guarantor shall be automatically and unconditionally released and discharged,
and each Subsidiary Guarantor and its obligations under the Subsidiary Guaranty
and this Indenture shall be released and discharged:

 

(i)      upon any sale, exchange
or transfer (by merger or otherwise) of the Capital Stock of such Subsidiary
Guarantor (including any sale, exchange or transfer) following which such
Subsidiary Guarantor ceases to be a direct or indirect Subsidiary of the
Company if such sale or disposition does not constitute an Asset Disposition or
is made in compliance with this Indenture, including Section 3.7
and Article IV);

 

91

 

(ii)     if such Subsidiary
Guarantor is dissolved or liquidated in accordance with the provisions of this
Indenture;

 

(iii)    upon exercise of the
Company’s legal defeasance option or covenant defeasance option or upon
satisfaction and discharge of this Indenture, in each case, pursuant to the
provisions of Article VIII hereof; and

 

(iv)    if the Company designates
such Subsidiary Guarantor as an Unrestricted Subsidiary and such designation
complies with the other applicable provisions of this Indenture.

 

(c)           In the case of Section 10.2(b)(i) only,
the Company shall deliver to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent provided for in
this Indenture relating to such transaction have been complied with.

 

(d)           The release of a Subsidiary Guarantor
from its Subsidiary Guaranty and its obligations under this Indenture in
accordance with the provisions of this Section 10.2 shall not
preclude the future applications of Section 3.11 to such Person.

 

SECTION 10.3.            Right of Contribution.  Each Subsidiary Guarantor hereby agrees that
to the extent that any such Subsidiary Guarantor shall have paid more than its
proportionate share of any payment made on the obligations under its Subsidiary
Guaranty, such Subsidiary Guarantor shall be entitled to seek and receive
contribution from and against the Company or any other Subsidiary Guarantor who
has not paid its proportionate share of such payment.  The provisions of this Section 10.3
shall in no respect limit the obligations and liabilities of each Subsidiary
Guarantor to the Trustee and the Holders and each Subsidiary Guarantor shall
remain liable to the Trustee and the Holders for the full amount guaranteed by
such Subsidiary Guarantor hereunder.

 

SECTION 10.4.            No Subrogation.  Notwithstanding any payment or payments made
by each Subsidiary Guarantor hereunder, no Subsidiary Guarantor shall be
entitled to be subrogated to any of the rights of the Trustee or any Holder
against the Company or any other Subsidiary Guarantor or any collateral
security or guarantee or right of offset held by the Trustee or any Holder for
the payment of the Guarantor Obligations, nor shall any Subsidiary Guarantor
seek or be entitled to seek any contribution or reimbursement from the Company
or any other Subsidiary Guarantor in respect of payments made by such
Subsidiary Guarantor hereunder, until all amounts owing to the Trustee and the
Holders by the Company on account of the Guarantor Obligations are paid in
full.  If any amount shall be paid to any
Subsidiary Guarantor on account of such subrogation rights at any time when all
of the Guarantor Obligations shall not have been paid in full, such amount
shall be held by such Subsidiary Guarantor in trust for the Trustee and the
Holders, segregated from other funds of such Subsidiary Guarantor, and shall,
forthwith upon receipt by such Subsidiary Guarantor, be turned over to the
Trustee in the exact form received by such Subsidiary Guarantor (duly indorsed
by such Subsidiary Guarantor to the Trustee, if required), to be applied
against the Guarantor Obligations.

 

92

 

ARTICLE XI

Collateral and Security

 

SECTION 11.1.            The Collateral.

 

(a)           The due and punctual payment of the
principal of, premium, if any, and interest on the Notes and the Guarantees
thereof when and as the same shall be due and payable, whether on an interest
payment date, at maturity, by acceleration, repurchase, redemption or
otherwise, interest on the overdue principal of and interest (to the extent
lawful), if any, on the Notes and the Guarantees thereof and performance of all
other obligations under this Indenture, including, without limitation, the
obligations of the Company set forth in Section 7.6 and Section 8.6
herein, and the Notes and the Guarantees thereof and the Collateral Documents,
shall be secured by Liens as provided in the Collateral Documents which Parent,
the Company and the Subsidiary Guarantors, as the case may be, have entered
into simultaneously with the execution of this Indenture and shall be secured
by all Collateral Documents hereafter delivered as required or permitted by this
Indenture.

 

(b)           Parent, the Company and the
Subsidiary Guarantors hereby agree that the Collateral Agent shall hold the
Collateral in trust for the benefit of all of the Holders, the Collateral Agent
and the Trustee, in each case pursuant to the terms of the Collateral
Documents, and the Collateral Agent is hereby authorized to execute and deliver
the Collateral Documents.

 

(c)           Each Holder, by its acceptance of any
Notes and the Guarantees thereof, consents and agrees to the terms of the
Collateral Documents (including, without limitation, the provisions providing
for foreclosure) and the Intercreditor Agreement, as the same may be in effect
or as may be amended from time to time in accordance with their terms, and
authorizes and directs the Junior Lien Collateral Agent to perform its
obligations and exercise its rights under the Collateral Documents and the
Intercreditor Agreement in accordance therewith.

 

(d)           The Trustee and each Holder, by
accepting the Notes and the Guarantees thereof, acknowledges that, as more
fully set forth in the Collateral Documents, the Collateral as now or hereafter
constituted shall be held for the benefit of all the Holders and the Trustee,
and that the Lien of this Indenture and the Collateral Documents in respect of
the Trustee and the Holders is subject to and qualified and limited in all
respects by the Collateral Documents, and the Intercreditor Agreement and
actions that may be taken thereunder.

 

SECTION 11.2.            Further Assurances.

 

The Company and the
Subsidiary Guarantors shall, at their expense, duly execute and deliver, or
cause to be duly executed and delivered, such further agreements, documents and
instruments, and do or cause to be done such further acts as may be necessary
or proper, or which the Collateral Agent may reasonably request, to evidence,
perfect, maintain and enforce the second priority lien in the Collateral
granted to the Collateral Agent and the priority thereof and benefits intended
to be conferred as contemplated by, and to otherwise effectuate the provisions
or purposes of, this Indenture and the Collateral Documents.

 

In addition, from time to
time, the Company will reasonably promptly secure the obligations under this
Indenture and the Collateral Documents by pledging or creating, or causing to
be pledged or created, perfected security interests and Liens with respect to
the Collateral.  Such security interests 

 

93

 

and Liens will be created under the
Collateral Documents and other security agreements, mortgages, deeds of trust
and other instruments and documents, in form and substance reasonably
satisfactory to the Collateral Agent, all such instruments and documents
(including certificates and legal opinions) as the Collateral Agent shall
reasonably request to evidence compliance with this Section 11.2.

 

SECTION 11.3.            Release of Liens on the
Collateral.

 

(a)           The Liens on the Collateral shall
automatically and without any need for any further action by any Person be
released:

 

(i)      in whole or in part, as
applicable, as to all or any portion of property subject to such Liens which
has been taken by eminent domain, condemnation or other similar circumstances;

 

(ii)     in whole upon:

 

(1)           satisfaction and discharge of this
Indenture as set forth in Section 8.1(a); or

 

(2)           a legal defeasance or covenant
defeasance of this Indenture as set forth in Section 8.1(b);

 

(iii)    in part, as to any
property that (x) is sold, transferred or otherwise disposed of by the
Company or any Subsidiary Guarantor (other than to the Company or another
Subsidiary Guarantor) in a transaction not prohibited by this Indenture at the
time of such sale, transfer or disposition or (y) is owned or at any time
acquired by a Subsidiary Guarantor that has been released from its Subsidiary Guaranty
in accordance with this Indenture, concurrently with the release of such
Subsidiary Guaranty (including in connection with the designation of a
Subsidiary Guarantor as an Unrestricted Subsidiary);

 

(iv)    pursuant to an amendment
in accordance with Article IX;

 

(v)     in whole as to all
Collateral that is owned by a Subsidiary Guarantor that is released from its
Subsidiary Guaranty in accordance with Section 10.2; and

 

(vi)    in part, in accordance
with the applicable provisions of the Collateral Documents and the
Intercreditor Agreement.

 

(b)           In connection with any termination or
release of any Liens in all or any portion of the Collateral pursuant to this
Indenture or any of the Collateral Documents, the Trustee shall, or shall cause
the Collateral Agent to, promptly execute, deliver or acknowledge all
documents, instruments and releases that have been requested to release,
reconvey to the Company and/or the Subsidiary Guarantors, as the case may be,
such Collateral or otherwise give effect to, evidence or confirm such
termination or release in accordance with the directions of the Company and/or
the Subsidiary Guarantor, as the case may be.

 

(c)           The release of any Collateral from
the terms of the Collateral Documents shall not be deemed to impair the security
under this Indenture in contravention of the provisions hereof if and to the
extent such Collateral is released pursuant to this Indenture or upon
termination of this Indenture.  The
Trustee and each of the Holders each acknowledge and direct the Trustee and the
Collateral Agent

 

94

 

that a release of Collateral
or a Lien in accordance with the terms of any Collateral Document and this Article XI
shall not be deemed for any purpose to be an impairment of the Lien on the
Collateral in contravention of the terms of this Indenture.

 

(d)           Notwithstanding any provision to the
contrary herein, as and when requested by the Company or any Subsidiary
Guarantor, the Trustee shall instruct the Collateral Agent to authorize the
filing of Uniform Commercial Code financing statement amendments or releases
(which shall be prepared by the Company or such Subsidiary Guarantor) solely to
the extent necessary to delete or release Liens on property or assets not
required to be subject to a Lien under the Collateral Documents from the
description of assets in any previously filed financing statements.  If requested in writing by the Company or any
Subsidiary Guarantor, the Trustee shall instruct the Collateral Agent to
execute such documents, instruments or statements reasonably requested of it
(which shall be prepared by the Company or such Subsidiary Guarantor) and to
take such other action as the Company may request to evidence or confirm that
such property or assets not required to be subject to a Lien under the
Collateral Documents described in the immediately preceding sentence has been
released from the Liens of each of the Collateral Documents.  The Collateral Agent shall execute and deliver
such documents, instruments and statements and shall take all such actions
promptly upon receipt of such instructions from the Company, any Subsidiary
Guarantor or the Trustee.

 

(e)           In no event shall the Trustee or
Collateral Agent be obligated to execute or deliver any document evidencing any
release or reconveyance without receipt of an Opinion of Counsel and Officers’
Certificate, each stating that such release complies with this Indenture, the
Intercreditor Agreement and the Collateral Documents.

 

SECTION 11.4.            Authorization of Actions to Be
Taken by the Trustee or the Collateral Agent Under the Collateral Documents.

 

(a)           Subject to the provisions of the
Collateral Documents, the Intercreditor Agreement and the other provisions of
this Indenture, each of the Trustee or the Collateral Agent may take all
actions it deems necessary or appropriate in order to (i) enforce any of
its rights or any of the rights of the Holders under the Collateral Documents
and (ii) upon the occurrence and during the continuance of an Event of
Default, collect and receive any and all amounts payable in respect of the
Collateral in respect of the obligations of Parent, the Company and the
Subsidiary Guarantors hereunder and thereunder. 
Subject to the provisions of the Collateral Documents, the Intercreditor
Agreement, the Trustee or the Collateral Agent shall have the power (but not
the obligation) to institute and to 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 Collateral Documents, the Intercreditor
Agreement or this Indenture, and such suits and proceedings as the Trustee or
the Collateral Agent may deem expedient to preserve or protect its interest 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 the Trustee).

 

(b)           The Trustee or the Collateral Agent
shall not be responsible for the existence, genuineness or value of any of the
Collateral or for the validity, perfection, priority or enforceability of the
Liens in any of the Collateral, whether impaired by operation of law or by
reason of any action or omission to act on its part hereunder, except to the extent
such action or omission constitutes negligence, bad faith or willful misconduct
on the part of the Trustee or the Collateral Agent, for the validity or
sufficiency 

 

95

 

of the Collateral or any
agreement or assignment contained therein, for the validity of the title of the
Company to the Collateral, for insuring the Collateral or for the payment of
taxes, charges, assessments or Liens upon the Collateral or otherwise as to the
maintenance of the Collateral.  The
Trustee or the Collateral Agent shall have no responsibility for recording,
filing, re-recording or refiling any financing statement, continuation
statement, document, instrument or other notice in any public office at any
time or times or to otherwise take any action to perfect or maintain the
perfection of any security interest granted to it under the Collateral
Documents or otherwise.

 

(c)           Where any provision of the Collateral
Documents requires that additional property or assets be added to the Collateral,
the Company or Parent shall, or shall cause the applicable Subsidiary
Guarantors to, take any and all actions reasonably required to cause such
additional property or assets to be added to the Collateral and to create and
maintain a valid and enforceable perfected second priority security interest on
a pari passu basis with the Liens
securing any Pari Passu Lien Indebtedness in such property or assets (subject
to Permitted Liens) in favor of the Collateral Agent for the benefit of the
Holders, in each case in accordance with and to the extent required under the
Collateral Documents.

 

(d)           The Trustee or the Collateral Agent,
in taking any action under the Collateral Documents, shall be entitled to
receive, if requested, as a condition to take any action, an Officers’
Certificate and Opinion of Counsel to the effect that such action does not
violate this Indenture, the Collateral Documents or the Intercreditor
Agreement, and the Trustee or the Collateral Agent shall be fully protected
relying thereon.

 

(e)           In acting under the Collateral
Documents and the Intercreditor Agreement, the Trustee and Collateral Agent
shall have all the protections, rights and immunities given to them under this
Indenture.

 

SECTION 11.5.            Recording, Registration and
Opinions.

 

(a)           The Company shall comply with the
provisions of TIA Sections 314(b) and 314(d), in each case following
qualification of this Indenture pursuant to the TIA, except to the extent not
required as set forth in any SEC regulation or interpretation or guidance
(including any no-action letter or exemptive order issued by the Staff of the
SEC, whether issued to the Company or any other Person).  Following such qualification, to the extent
the Company is required to furnish to the Trustee an Opinion of Counsel
pursuant to Trust Indenture Act Section 314(b)(2), the Company shall
furnish such opinion not more than 60 but not less than 30 days prior to each September 1.

 

(b)           Any release of Collateral permitted
by Section 11.3 shall be deemed not to impair the Liens under this
Indenture and the Collateral Documents in contravention thereof and any person
that is required to deliver any certificate or opinion pursuant to Section 314(d) of
the TIA shall be entitled to rely upon the foregoing as a basis for delivery of
such certificate or opinion.  The Trustee
shall, to the extent permitted by Sections 7.1 and 7.2, accept as
conclusive evidence of compliance with the foregoing provisions the appropriate
statements contained in such certificate or opinion.

 

(c)           If any Collateral is released in
accordance with this Indenture or any Collateral Document, the Company shall
determine whether it has delivered all documentation required by TIA Section 314(d) in
connection with such release.

 

96

 

ARTICLE XII

Miscellaneous

 

SECTION 12.1.            Notices.  Notices given by publication shall be deemed
given on the first date on which publication is made, and notices given by
first-class mail, postage prepaid, shall be deemed given five calendar days
after mailing.  Any notice or
communication shall be in writing and delivered in person, by facsimile or
mailed by first-class mail addressed as follows:

 

if to Parent, the Company or
any Subsidiary Guarantor:

c/o Reddy Ice Corporation

8750 N. Central Expressway, Suite 1800

Dallas, Texas  75231

Attention:  Steven J. Janusek

Facsimile No.:  (214) 528-1532

 

if to the Trustee or
Collateral Agent:

Wells Fargo Bank, National Association

1445 Ross Avenue, 2nd Floor, MAC:T 5303-022

Dallas, TX 75202

Attention: Corporate Trust Services

Facsimile: 214-777-4086

 

The Company or the Trustee
by notice to the other may designate additional or different addresses for
subsequent notices or communications.

 

Any notice or communication
mailed to a Holder shall be mailed to the Holder at the Holder’s address as it
appears on the registration books of the Registrar and shall be sufficiently
given if so mailed within the time prescribed. 
Any notice or communication shall also be so mailed or delivered to any
Person described in TIA § 313(c), to the extent required by the TIA.

 

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

 

Each of the Trustee and
Collateral Agent agrees to accept and act upon instructions or directions
pursuant to this Indenture or the Collateral Documents or the Intercreditor
Agreement sent by unsecured e-mail, facsimile transmission or other similar
unsecured electronic methods.  If the
party elects to give the Trustee or Collateral Agent e-mail or facsimile
instructions (or instructions by a similar electronic method) and the Trustee or
Collateral Agent in its discretion elects to act upon such instructions, the
Trustee’s or Collateral Agent’s understanding of such instructions shall be
deemed controlling.  Neither the Trustee
nor the Collateral Agent shall be liable for any losses, costs or expenses
arising directly or indirectly from the Trustee’s or Collateral Agent’s
reliance upon and compliance with such instructions notwithstanding such
instructions conflict or are inconsistent with a subsequent written
instruction.  The party providing
electronic instructions agrees to assume all risks arising out of the use of
such electronic methods to submit instructions and directions to the Trustee or
Collateral Agent, including without 

 

97

 

limitation the risk of the Trustee or
Collateral Agent acting on unauthorized instructions, and the risk or
interception and misuse by third parties.

 

SECTION 12.2.            Certificate and Opinion as to
Conditions Precedent.  Upon any
request or application by the Company to the Trustee to take or refrain from
taking any action under this Indenture (except in connection with the original
issuance of Notes on the date hereof), the Company shall furnish to the
Trustee:

 

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

 

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

 

SECTION 12.3.            Statements Required in
Certificate or Opinion.  Each
certificate or opinion with respect to compliance with a covenant or condition
provided for in this Indenture (other than a certificate provided pursuant to
TIA § 314(a)(4)) shall comply with the provisions of TIA § 314(e) and
also shall include:

 

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

 

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

 

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

 

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

 

In giving such Opinion of
Counsel, counsel may rely as to factual matters on an Officers’ Certificate or
on certificates of public officials.

 

SECTION 12.4.            When Notes Disregarded.  In determining whether the Holders of the
required principal amount of Notes have concurred in any direction, waiver or
consent, Notes owned by Parent, the Company, any Subsidiary Guarantor or by any
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Company shall be disregarded and deemed not to
be outstanding, except that, for the purpose of determining whether the Trustee
shall be protected in relying on any such direction, waiver or consent, only
Notes which a Trust Officer of the Trustee knows are so owned shall be so
disregarded.  Also, subject to the
foregoing, only Notes outstanding at the time shall be considered in any such
determination.

 

SECTION 12.5.            Rules by Trustee, Paying
Agent and Registrar.  The Trustee may
make reasonable rules for action by, or a meeting of, Holders.  The Registrar and the Paying Agent may make
reasonable rules for their functions.

 

98

 

SECTION 12.6.            Days Other than Business Days.  If a payment date is not a Business Day,
payment shall be made on the next succeeding day that is a Business Day, and no
interest shall accrue for the intervening period.  If a regular Record Date is not a Business
Day, the Record Date shall not be affected.

 

SECTION 12.7.            Governing Law.  This Indenture, the Notes and the Guarantees
shall be governed by, and construed in accordance with, the laws of the State
of New York.

 

SECTION 12.8.            Waiver of Jury Trial.  EACH OF PARENT, THE COMPANY, THE SUBSIDIARY
GUARANTORS AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

 

SECTION 12.9.            No Recourse Against Others.  An incorporator, director, officer, employee,
stockholder or controlling person, as such, of Parent, the Company or any
Subsidiary Guarantor shall not have any liability for any obligations of
Parent, the Company or any Subsidiary Guarantor under the Notes, the
Guarantees, the Collateral Documents, the Intercreditor Agreement or this
Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation.  By
accepting a Note, each Holder shall waive and release all such liability.  The waiver and release shall be part of the
consideration for the issue of the Notes.

 

SECTION 12.10.          Successors.  All agreements of Parent, the Company and
each Subsidiary Guarantor in this Indenture and the Notes shall bind their
respective successors.  All agreements of
the Trustee in this Indenture shall bind its successors.

 

SECTION 12.11.          Multiple Originals.  The parties may sign any number of copies of
this Indenture.  Each signed copy shall
be an original, but all of them together represent the same agreement.  One signed copy is enough to prove this
Indenture.

 

SECTION 12.12.          Variable Provisions.  The Company initially appoints the Trustee as
Paying Agent and Registrar and custodian with respect to any Global Notes.

 

SECTION 12.13.          Table of Contents; Headings.  The table of contents, cross-reference sheet
and headings of the Articles and Sections of this Indenture have been inserted
for convenience of reference only, are not intended to be considered a part
hereof and shall not modify or restrict any of the terms or provisions hereof.

 

SECTION 12.14.          Direction by Holders to Enter into
Collateral Documents and the Intercreditor Agreement.  By accepting a Note, each Holder is deemed to
have authorized and directed the Trustee and the Collateral Agent, as
applicable, to enter into the Collateral Documents and the Intercreditor
Agreement.

 

SECTION 12.15.          Force Majeure.  In no event shall the Trustee or the
Collateral Agent be responsible or liable for any failure or delay in the
performance of its obligations hereunder arising out of or caused by, directly
or indirectly, forces beyond its control, including, without limitation,
strikes, work stoppages, accidents, acts of war or terrorism, civil or military
disturbances, nuclear or natural catastrophes or acts of God, and
interruptions, loss or malfunctions of utilities, communications or computer
(software and hardware) services; it being understood that the Trustee and the Collateral
Agent shall use 

 

99

 

reasonable efforts which are
consistent with accepted practices in the banking industry to resume
performance as soon as practicable under the circumstances.

 

SECTION 12.16.          USA Patriot Act.  The parties hereto acknowledge that in
accordance with Section 326 of the USA Patriot Act the Trustee and the
Trust Officers, like all financial institutions and in order to help fight the
funding of terrorism and money laundering, are required to obtain, verify, and
record information that identifies each person or legal entity that establishes
a relationship or opens an account.  The
parties to this agreement agree that they shall provide the Trustee and the
Trust Officers with such information as they may request in order to satisfy
the requirements of the USA Patriot Act.

 

SECTION 12.17.          Trust Indenture Act Controls.  If any provision hereof limits, qualifies or
conflicts with the duties imposed by TIA § 318(c), the imposed duties
shall control.

 

SECTION 12.18.          Communication by Holders of Notes
with Other Holders of Notes.  Holders
of the Notes may communicate pursuant to TIA § 312(b) with other
Holders of Notes with respect to their rights under this Indenture or the
Notes.  The Company, the Trustee, the
Registrar and anyone else shall have the protection of TIA § 312(c).

 

100

 

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

 

	
   

  	
  REDDY
  ICE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Steven J. Janusek

  
	
   

  	
   

  	
  Name:

  	
  Steven
  J. Janusek

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President, Chief

  Financial Officer and Secretary

  

 

 

	
   

  	
  REDDY
  ICE HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Steven J. Janusek

  
	
   

  	
   

  	
  Name:

  	
  Steven
  J. Janusek

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President, Chief

  
	
   

  	
   

  	
   

  	
  Financial
  Officer and Secretary

  

 

[Signature
Page to Indenture]

 

 

	
   

  	
  WELLS
  FARGO BANK, NATIONAL ASSOCIATION,

  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Patrick T. Giordano

  
	
   

  	
   

  	
  Name:

  	
  Patrick
  T. Giordano

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
					

 

 

	
   

  	
  WELLS
  FARGO BANK, NATIONAL ASSOCIATION,

  as Collateral Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Patrick T. Giordano

  
	
   

  	
   

  	
  Name:

  	
  Patrick
  T. Giordano

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  

 

[Signature
Page to Indenture]

 

 

Annex A

 

Mortgaged Property

 

	
  15960
  Shaw Rd.

  	
   

  	
  Athens

  	
   

  	
  AL

  
	
  4626
  S. 40th St.

  	
   

  	
  Phoenix

  	
   

  	
  AZ

  
	
  2101
  31st Street

  	
   

  	
  Denver

  	
   

  	
  CO

  
	
  604
  N. Frontage Rd

  	
   

  	
  Plant
  City (Tampa)

  	
   

  	
  FL

  
	
  5050
  S.W. 51st Street

  	
   

  	
  Davie

  	
   

  	
  FL

  
	
  117
  Society Ave.

  	
   

  	
  Albany

  	
   

  	
  GA

  
	
  1586
  E. Taylor Ave.

  	
   

  	
  East
  Point

  	
   

  	
  GA

  
	
  1111
  Burt St.

  	
   

  	
  Shreveport

  	
   

  	
  LA

  
	
  8700
  Ice Drive

  	
   

  	
  Raleigh

  	
   

  	
  NC

  
	
  5525
  S.W. 29th Street

  	
   

  	
  Oklahoma
  City

  	
   

  	
  OK

  
	
  6004
  N. Shepherd Dr.

  	
   

  	
  Houston

  	
   

  	
  TX

  
	
  7901
  Springdale Road

  	
   

  	
  Austin

  	
   

  	
  TX

  
	
  1104
  - 1130 E. Durango

  	
   

  	
  San
  Antonio

  	
   

  	
  TX

  
	
  4320
  Duncanville Rd

  	
   

  	
  Dallas

  	
   

  	
  TX

  
	
  610
  Pleasant Valley Rd

  	
   

  	
  Harrisonburg

  	
   

  	
  VA

  
	
  W.
  Moler Ave. @ Factory St.

  	
   

  	
  Martinsburg

  	
   

  	
  WV

  

 

A-1

 

EXHIBIT A

 

[FORM OF FACE OF NOTE]

 

Global Note Legend, if
applicable

Private Placement Legend, if applicable

 

A-1

 

	
  [144A][Reg.
  S][IAI] No. [      ] 

  	
   

  	
  Principal Amount
  $[                            ],

  
	
   

  	
   

  	
  as revised by the Schedule of Increases

  
	
   

  	
   

  	
  or Decreases in the Global Note attached hereto

  

 

CUSIP NO.                

 

REDDY ICE CORPORATION

 

13.25% Senior Secured Note due 2015

 

Reddy
Ice Corporation, a Nevada corporation, promises to pay to
[                      ],
or registered assigns, the initial principal amount set forth on the Schedule
of Increases or Decreases in the Global Note attached hereto, as revised by the
Schedule of Increases or Decreases in the Global Note attached hereto, on November 1,
2015.

 

Interest
Payment Dates:  May 1 and November 1.

 

Record
Dates:  April 15 and October 15.

 

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

 

A-2

 

	
   

  	
  REDDY
  ICE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-3

 

TRUSTEE’S CERTIFICATE OF

AUTHENTICATION

 

WELLS FARGO BANK, NATIONAL ASSOCIATION

 

as Trustee, certifies that this is one of the

Notes referred to in the Indenture.

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  	
  Date:

  

 

A-4

 

[FORM OF
REVERSE SIDE OF NOTE]

 

13.25%
Senior Secured Note due 2015

 

1.             Interest

 

Reddy Ice Corporation, a
Nevada corporation (such corporation, and its successors and assigns under the
Indenture hereinafter referred to, being herein called the “Company”),
promises to pay interest on the principal amount of this Note at the rate per
annum shown above.

 

The Company shall pay
interest semiannually on May 1and November 1 of each year, with the
first interest payment to be made on November 1, 2010(1).  Interest on the Notes shall accrue from the
most recent date to which interest has been paid on the Notes or, if no
interest has been paid, from March 15, 2010(2).  The Company shall pay interest on overdue
principal or premium, if any (plus interest on such interest to the extent
lawful), at the rate borne by the Notes to the extent lawful.  Interest shall be computed on the basis of a
360-day year of twelve 30-day months. 
Interest shall accrue (in addition to the interest rate borne by the
Notes) from and including the date on which an Event of Default under Section 6.1(a)(i),
6.1(a)(ii),  6.1(a)(vii) or 6.1(a)(viii) shall
occur to but excluding the date on which such Event of Default shall have been
cured, at a rate per annum equal to 1.0% of the principal amount of the Notes.

 

2.             Method
of Payment

 

By no later than 10:00 a.m.
(New York City time) on the date on which any principal of, premium, if any, or
interest on any Note is due and payable, the Company shall irrevocably deposit
with the Trustee or the Paying Agent money sufficient to pay such principal,
premium, if any, and/or interest.  The
Company shall pay interest (except Defaulted Interest) to the Persons who are
registered Holders of Notes at the close of business on the April 15 and October 15
next preceding the Interest Payment Date unless Notes are cancelled,
repurchased or redeemed after the record date and before the Interest Payment
Date.  Holders must surrender Notes to a
Paying Agent to collect principal payments. 
The Company shall pay principal, premium, if any, and interest in money
of the United States that at the time of payment is legal tender for payment of
public and private debts.  Payments in
respect of Notes represented by a Global Note (including principal, premium, if
any, and interest) shall be made by the transfer of immediately available funds
to the accounts specified by the Depositary. 
The Company shall make all payments in respect of a Definitive Note
(including principal, premium, if any, and interest) by mailing a check to the
registered address of each Holder thereof.

 

(1)           With
respect to the Initial Notes.

 

(2)           With
respect to the Initial Notes.

 

A-5

 

3.             Paying
Agent and Registrar

 

Initially, Wells Fargo Bank,
National Association, duly organized and existing under the laws of the United
States of America and having a corporate trust office at Wells Fargo Bank,
National Association, 1445 Ross Avenue, 2nd Floor, Dallas, TX 75202, Attention:
Corporate Trust Services (“Trustee”), shall act as Paying Agent and
Registrar.  The Company may appoint and
change any Paying Agent, Registrar or co-registrar without notice to any
Holder.  The Company or any of its
domestically incorporated Wholly-Owned Subsidiaries may act as Paying Agent,
Registrar or co-registrar.

 

4.             Indenture

 

The Company issued the Notes
under an Indenture dated as of March 15, 2010 (as it may be amended or
supplemented from time to time in accordance with the terms thereof, the “Indenture”),
among the Company, Parent, the Subsidiary Guarantors and the Trustee.  The terms of the Notes include those stated
in the Indenture.  Capitalized terms used
herein and not defined herein have the meanings ascribed thereto in the
Indenture.  The Notes are subject to all
such terms, and Holders are referred to the Indenture and the Securities Act
for a statement of those terms.  To the
extent any provision of this Note conflicts with the express provisions of the
Indenture, the provisions of the Indenture shall govern and be controlling.

 

The Notes are senior secured
obligations of the Company.  This Note is
one of the 13.25% Senior Secured Notes due 2015 referred to in the
Indenture.  The Notes include (i) $137,571,000
aggregate principal amount of the Company’s 13.25% Senior Secured Notes due
2015 issued under the Indenture on March 15, 2010 (herein called “Initial
Notes”), (ii) pursuant to the Exchange Offer, Exchange Notes from time
to time for issue only in exchange for a like principal amount of Initial Notes
and (iii) if and when issued, additional 13.25% Senior Secured Notes due
2015 of the Company that may be issued from time to time under the Indenture
subsequent to March 15, 2010 (herein called “Additional Notes”).  The Indenture contains the terms and
restrictions set forth in the Indenture or made a part of the Indenture
pursuant to the requirements of the TIA. 
The Indenture, among other things, imposes certain covenants with
respect to the following matters:  the
Incurrence of Indebtedness by the Company and its Restricted Subsidiaries, the
payment of dividends and other distributions on the Capital Stock of the
Company, the purchase or redemption of Capital Stock of the Company, certain
purchases or redemptions of Subordinated Obligations and other Junior Lien
Obligations, the sale or transfer of assets and Capital Stock of Subsidiaries,
the issuance or sale of Capital Stock of Restricted Subsidiaries, the
incurrence of certain Liens, future Subsidiary Guarantors, the business
activities and investments of the Company and its Restricted Subsidiaries and
transactions with Affiliates.  In
addition, the Indenture limits the ability of the Company and its Restricted
Subsidiaries to enter into agreements that restrict distributions and dividends
from Subsidiaries.  The Indenture also
imposes requirements with respect to the provision of financial
information.  The Indenture also contains
certain exceptions to the foregoing, and this description is qualified in its
entirety by reference to the Indenture.

 

5.             Guarantee

 

To guarantee the due and
punctual payment of the principal, premium, if any, and interest (including
post-filing or post-petition interest) on the Notes and all other amounts
payable by the Company under the Indenture, the Notes, the Collateral Documents
and the Intercreditor Agreement when and as the same shall be due and payable,
whether at maturity, by acceleration or otherwise, according to the terms of
the Notes and the Indenture, Parent has unconditionally Guaranteed (and future
guarantors, together with Parent, shall unconditionally Guarantee), jointly and
severally, such obligations on a senior,

 

A-6

 

secured basis on a pari passu basis with the Liens securing any Pari Passu Lien
Indebtedness pursuant to the terms of the Indenture.

 

6.             Security

 

The Initial Notes, Exchange
Notes and Additional Notes, if any, are treated as a single class of securities
under the Indenture and shall be secured by second-priority Liens and security
interests, subject to Permitted Liens, in the Collateral on the terms and
conditions set forth in the Indenture and the Collateral Documents.  The Collateral Agent holds the Collateral in
trust for the benefit of the Trustee and the Holders, in each case pursuant to
the Collateral Documents.  Each Holder,
by accepting this Note, consents and agrees to the terms of the Collateral
Documents (including the provisions providing for the foreclosure and release
of Collateral) as the same may be in effect or may be amended from time to time
in accordance with their terms, the Indenture and the Intercreditor Agreement
and authorizes and directs the Collateral Agent to enter into the Collateral
Documents and the Intercreditor Agreement, and to perform its obligations and
exercise its rights thereunder in accordance therewith.

 

7.             Redemption

 

(a)           Except as described in clauses (b) and (c) below,
the Notes are not redeemable until March 1, 2013.  On and after March 1, 2013, the Company
may redeem all or, from time to time, a portion of the Notes, at the following
redemption prices (expressed as a percentage of principal amount of the Notes
to be redeemed) plus accrued and unpaid interest on the Notes, if any, to the
applicable Redemption Date (subject to the right of Holders of record on the
relevant Record Date to receive interest due on the relevant Interest Payment
Date), if redeemed during the twelve-month period beginning on March 1 of
the years indicated below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2013

  	
   

  	
  106.625

  	
  %

  
	
  2014

  	
   

  	
  100.000

  	
  %

  

 

(b)           At any time prior to March 1, 2013, the Company may
redeem the Notes, in whole or in part, at a redemption price equal to 100% of
the principal amount thereof plus the Applicable Premium plus accrued and
unpaid interest, if any, and additional interest thereon, if any, to, but
excluding, the Redemption Date (subject to the rights of Holders of record on
the relevant Record Date to receive interest due on the relevant Interest
Payment Date).

 

“Applicable Premium”
means, as determined by the Company with respect to a Note on any Redemption Date,
the greater of:

 

(1)           1.0% of the principal amount of such
Note; and

 

(2)           the excess, if any, of (a) the
present value as of such Redemption Date of (i) the redemption price of
such Note on March 1, 2013, plus (ii) the remaining scheduled
interest payments due on such Note through March 1, 2013 (excluding
accrued but unpaid interest to the Redemption Date), computed using a discount
rate equal to the Treasury Rate as of such Redemption Date plus 50 basis
points, over (b) the then outstanding principal of such Note.

 

A-7

 

“Treasury Rate”
means, as obtained by the Company, the yield to maturity at the time of
computation of United States Treasury securities with a constant maturity (as
compiled and published in the most recent Federal Reserve Statistical Release
H.15 (519) that has become publicly available at least two Business Days prior
to the Redemption Date (or, if such Statistical Release is no longer published,
any publicly available source of similar market data)) most nearly equal to the
period from the Redemption Date to March 1, 2013; provided, however,
that if the period from the Redemption Date to March 1, 2013 is not equal
to the constant maturity of a United States Treasury security for which a weekly
average yield is given, the Treasury Rate shall be obtained by linear
interpolation (calculated to the nearest one-twelfth of a year) from the weekly
average yields of United States Treasury securities for which such yields are
given, except that if the period from the Redemption Date to March 1, 2013
is less than one year, the weekly average yield on actually traded United
States Treasury securities adjusted to a constant maturity of one year shall be
used.

 

(c)           On or prior to March 1, 2013, the Company may on any
one or more occasions redeem up to 35% of the aggregate principal amount of the
Notes (which includes Additional Notes, if any) with the Net Cash Proceeds of
one or more Qualified Equity Offerings at a redemption price of 113.25% of the
principal amount thereof, plus accrued and unpaid interest to the Redemption
Date, if any (provided that if
the Qualified Equity Offering is an offering by Parent, a portion of the Net
Cash Proceeds thereof equal to the amount required to redeem any such Notes is
contributed to the equity capital of the Company); provided, however, that

 

(i)            at least 65% of the aggregate
principal amount of the Notes (which includes Additional Notes, if any) remains
outstanding immediately after the occurrence of each such redemption (other
than Notes held, directly or indirectly, by the Company or its Affiliates); and

 

(ii)           the redemption occurs within 90 days
after the closing of such Qualified Equity Offering.

 

Notice of any redemption
pursuant to clause (c) may be given prior to the completion of such
Qualified Equity Offering, and any such redemption or notice may, at the
Company’s discretion, be subject to one or more conditions precedent,
including, but not limited to, completion of the related Qualified Equity
Offering.

 

(d)           Any redemption pursuant to this paragraph 7 shall be made
pursuant to the provisions of Section 5.1, and Sections 5.2
through 5.7 of the Indenture.

 

A-8

 

[8.            Registration
Rights Agreement.  The Notes are entitled
to the benefit of the Registration Rights Agreement.](3)

 

9.             Change
of Control; Asset Sales

 

(a)           If a Change of Control occurs, unless the Company has
exercised its right to redeem all of the Notes under Section 5.1 of
the Indenture, each Holder shall have the right to require the Company to
repurchase all or any part (in integral multiples of $1,000 except that no Note
may be tendered in part if the remaining principal amount would be less than
$2,000) of such Holder’s Notes at a purchase price in cash equal to 101% of the
principal amount of the Notes plus accrued and unpaid interest, if any, to, but
excluding, the date of purchase (subject to the right of Holders of record on
the relevant Record Date to receive interest due on the relevant Interest
Payment Date) as provided in, and subject to the terms of, the Indenture.

 

(b)           In the event of an Asset Disposition that requires the
purchase of Notes pursuant to Section 3.7(c) of the Indenture,
the Company shall be required to make an offer to all Holders to purchase Notes
in accordance with Section 3.7(c) of the Indenture at an offer
price in cash in an amount equal to 100% of the principal amount of the Notes,
plus accrued and unpaid interest to, but excluding, the date of purchase
(subject to the rights of Holders of record on any Record Date to receive
payments of interest on the related Interest Payment Date).  Holders of Notes that are the subject of an
offer to purchase shall receive an Asset Disposition Offer from the Company
prior to any related purchase date and may elect to have such Note purchased
pursuant to such offer by completing the form entitled “Option of Holder To
Elect Purchase” attached hereto, or transferring its interest in such Note by
book-entry transfer, to the Company or a Paying Agent at the address specified
in the notice at least three Business Days before the Asset Disposition
Purchase Date.

 

10.           Denominations;
Transfer; Exchange

 

The Notes are in registered
form without coupons in denominations of principal amount of $2,000 and whole
multiples of $1,000 in excess thereof.  A
Holder may transfer or exchange Notes in accordance with the Indenture.  The Registrar may require a Holder, among
other things, to furnish appropriate endorsements or transfer documents and to
pay any taxes and fees required by law or permitted by the Indenture.  The Registrar need not register the transfer
of or exchange any Notes for a period beginning 15 Business Days before an
Interest Payment Date and ending on such Interest Payment Date.

 

11.           Persons
Deemed Owners

 

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

 

(3)           To
be included in Notes bearing the Private Placement Legend.

 

A-9

 

12.           Unclaimed
Money

 

If money for the payment of
the principal of or premium, if any, or interest remains unclaimed for two
years, the Trustee or Paying Agent shall pay the money back to the Company at
its request unless an abandoned property law designates another person.  After any such payment, Holders entitled to
the money must look only to the Company and not to the Trustee for payment.

 

13.           Discharge
and Defeasance

 

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

 

14.           Amendment,
Waiver

 

The Indenture, the Notes and
the Collateral Documents may be amended or waived as set forth in Article IX
of the Indenture.

 

15.           Defaults
and Remedies

 

Events of Default shall be
as set forth in Article VI of the Indenture.

 

If an Event of Default
occurs and is continuing, the Trustee or Holders of at least 25% in aggregate
principal amount of the outstanding Notes then outstanding may declare all the
Notes to be due and payable immediately. 
Certain events of bankruptcy or insolvency with respect to the Company
are Events of Default which shall result in the Notes being due and payable
immediately upon the occurrence of such Events of Default.

 

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

 

16.           Trustee
Dealings with the Company

 

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

 

17.           No
Recourse Against Others

 

A director, officer,
employee, incorporator, stockholder or controlling person, as such, of Parent,
the Company or any Subsidiary Guarantor shall not have any liability for any
obligations of Parent, the Company or any Subsidiary Guarantor under the Notes,
the Indenture, the Guarantees, the Colla-

 

A-10

 

teral Documents or the Intercreditor
Agreement or for any claim based on, in respect of, or by reason of, such
obligations or their creation.  By
accepting a Note, each Holder waives and releases all such liability.  The waiver and release shall be part of the
consideration for the issue of the Notes.

 

18.           Authentication

 

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

 

19.           Abbreviations

 

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

 

20.           CUSIP
Numbers

 

Pursuant to a recommendation
promulgated by the Committee on Uniform Note Identification Procedures the
Company has caused CUSIP numbers to be printed on the Notes.  No representation is made as to the accuracy
of such numbers as printed on the Notes and reliance may be placed only on the other
identification numbers placed thereon.

 

21.           Successor
Entity

 

When a successor entity
assumes, in accordance with the Indenture, all the obligations of its
predecessor under the Notes and the Indenture, and immediately before and
thereafter no Default or Event of Default exists and all other conditions of
the Indenture are satisfied, the predecessor entity shall be released from
those obligations.

 

22.           Governing
Law

 

This Note shall be governed
by, and construed in accordance with, the laws of the State of New York.

 

The Company shall furnish to
any Holder upon written request and without charge to the Holder a copy of the
Indenture which has in it the text of this Note in larger type.  Requests may be made to:

 

Reddy
Ice Corporation

 

8750
North Central Expressway

Suite 800

Dallas, Texas  75231

Attention:  Steven J. Janusek

Facsimile No.:  (214) 528-1532

 

A-11

 

ASSIGNMENT FORM

 

To assign this Note, fill in
the form below:

 

I or we assign and transfer
this Note to

 

	
   

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

  
	
   

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

  

 

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

 

	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  	
   

  
	
   

  	
  (Signature must be
  guaranteed)

  	
   

  
								

 

	
   

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

  

 

The signature(s) should
be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved
signature guarantee medallion program), pursuant to SEC Rule 17Ad-15.

 

A-12

 

[TO
BE ATTACHED TO GLOBAL NOTES]

 

SCHEDULE
OF INCREASES OR DECREASES IN GLOBAL NOTE

 

The initial principal amount
of the Note shall be $
[                            ].  The following increases or decreases in this
Global Note have been made:

 

	
  Date of

  Exchange

  	
   

  	
  Amount of decrease in

  Principal Amount of this

  Global Note

  	
   

  	
  Amount of increase in

  Principal Amount of this

  Global Note

  	
   

  	
  Principal Amount of this

  Global Note following

  such decrease or

  increase

  	
   

  	
  Signature of authorized

  signatory of Trustee or

  Notes Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-13

 

OPTION
OF HOLDER TO ELECT PURCHASE

 

If you want to elect to have
this Note purchased by the Company pursuant to Section 3.7 or 3.9
of the Indenture, check the box:

 

	
  o

  	
   

  	
  o

  
	
  3.7

  	
   

  	
  3.9

  

 

If you want to elect to have
only part of this Note purchased by the Company pursuant to Section 3.7
or 3.9 of the Indenture, state the amount in principal amount (must be
in denominations of $2,000 or integral multiples of $1,000 in excess thereof):  $

 

 

 

	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
   

  	
  (Sign exactly as your name
  appears on the other side of the Note)

  
	
  Signature Guarantee:

  	
   

  	
   

  
	
   

  	
  (Signature must be
  guaranteed)

  	
   

  
							

 

The signature(s) should be guaranteed by
an eligible guarantor institution (banks, stockbrokers, savings and loan
associations and credit unions with membership in an approved signature
guarantee medallion program), pursuant to SEC Rule 17Ad-15.

 

A-14

 

PARENT
GUARANTY

 

Pursuant to the Indenture
(the “Indenture”) dated as of March 15, 2010 among Reddy Ice
Corporation, Reddy Ice Holdings, Inc. (“Parent” and the “Guarantor”),
the Subsidiary Guarantors party thereto and Wells Fargo Bank, National
Association, as trustee (the “Trustee”) and as collateral agent, the
Guarantor, subject to the provisions of Article X of the Indenture,
hereby fully, unconditionally and irrevocably guarantees on a pari passu basis with the Liens securing
any Pari Passu Lien Indebtedness, as primary obligor and not merely as surety,
to each Holder of the Notes, to the extent lawful, and the Trustee the full and
punctual payment when due, whether at maturity, by acceleration, by redemption
or otherwise, of the principal of, premium, if any, and interest on the Notes
and all other obligations of the Company under the Indenture and the Notes
(including without limitation interest accruing after the filing of any
petition in bankruptcy, or the commencement of any insolvency, reorganization
or like proceeding, relating to the Company or any Guarantor whether or not a
claim for post-filing or post-petition interest is allowed in such proceeding
and the obligations under Section 7.6 of the Indenture) and the
Collateral Documents (all the foregoing being hereinafter collectively called
the “Guarantor Obligations”). 
Parent agrees (to the extent lawful) that the Guarantor Obligations may
be extended or renewed, in whole or in part, without notice or further assent
from it, and that it shall remain bound under this Parent Guaranty
notwithstanding any extension or renewal of any Guarantor Obligation.

 

The Guarantor Obligations of
Parent to the Holders of the Notes pursuant to the Parent Guaranty and the
Indenture are expressly set forth in Article X of the Indenture and
reference is hereby made to the Indenture for the precise terms of the Parent
Guaranty.

 

Parent also agrees to pay
any and all reasonable costs and expenses (including reasonable attorneys’
fees) incurred by the Trustee or the Holders in enforcing any rights under this
Parent Guaranty.

 

A-15

 

	
   

  	
  REDDY ICE HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-16

 

[FORM OF
SUBSIDIARY GUARANTY]

 

Pursuant to the Indenture
(the “Indenture”) dated as of March 15, 2010 among Reddy Ice
Corporation, Reddy Ice Holdings, Inc. (“Parent”), the Subsidiary
Guarantors party thereto (each a “Subsidiary Guarantor” and collectively
the “Subsidiary Guarantors”) and Wells Fargo Bank, National Association,
as trustee (the “Trustee”) and as collateral agent, each Subsidiary
Guarantor, subject to the provisions of Article X of the Indenture,
hereby fully, unconditionally and irrevocably guarantees on a pari passu basis with the Liens securing
any Pari Passu Lien Indebtedness, as primary obligor and not merely as surety,
jointly and severally with each other Subsidiary Guarantor, to each Holder of
the Notes, to the extent lawful, and the Trustee the full and punctual payment
when due, whether at maturity, by acceleration, by redemption or otherwise, of
the principal of, premium, if any, and interest on the Notes and all other
obligations of the Company under the Indenture and the Notes (including without
limitation interest accruing after the filing of any petition in bankruptcy, or
the commencement of any insolvency, reorganization or like proceeding, relating
to Parent, the Company or any Subsidiary Guarantor whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding and the
obligations under Section 7.6 of the Indenture) and the Collateral
Documents (all the foregoing being hereinafter collectively called the “Guarantor
Obligations”).  Each Subsidiary
Guarantor agrees (to the extent lawful) that the Guarantor Obligations may be
extended or renewed, in whole or in part, without notice or further assent from
it, and that it shall remain bound under this Subsidiary Guaranty
notwithstanding any extension or renewal of any Guarantor Obligation.

 

The Guarantor Obligations of
the Guarantors to the Holders of the Notes pursuant to the Subsidiary Guaranty
and the Indenture are expressly set forth in Article X of the
Indenture and reference is hereby made to the Indenture for the precise terms of
the Subsidiary Guaranty.

 

Each Subsidiary Guarantor
also agrees to pay any and all reasonable costs and expenses (including
reasonable attorneys’ fees) incurred by the Trustee or the Holders in enforcing
any rights under this Subsidiary Guaranty.

 

A-17

 

	
   

  	
  [Name of Subsidiary]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-18

 

EXHIBIT
B

 

FORM OF
CERTIFICATE OF TRANSFER

 

Reddy Ice Corporation

8750 North Central Expressway

Suite 800

Dallas, Texas 
75231

Attention: 
Steven J. Janusek

Facsimile No.:  (214) 528-1532

 

Wells Fargo Bank, National Association

1445 Ross Avenue, 2nd Floor

Dallas, TX 75202

Attention:  Corporate Trust Services

Facsimile: 
214-777-4086

 

Re:  13.25% Senior Secured Notes due 2015

 

Reference is hereby made to the Indenture,
dated as of March 15, 2010 (the “Indenture”),
among Reddy Ice Corporation, as Issuer (the “Company”),
the Guarantors named therein and Wells Fargo Bank, National Association, as
Trustee.  Capitalized terms used but not
defined herein shall have the meanings given to them in the Indenture.

 

(the
“Transferor”) owns and proposes
to transfer the Note[s] or interest in such Note[s] specified in Annex A
hereto, in the principal amount of $        
in such Note[s] or interests (the “Transfer”),
to
                    
(the “Transferee”), as further
specified in Annex A hereto.  In
connection with the Transfer, the Transferor hereby certifies that:

 

[CHECK ALL THAT APPLY]

 

1.          o                                          Check if Transferee will take delivery of a beneficial interest in the
144A Global Note or a Definitive Note pursuant to Rule 144A.  The Transfer is being effected pursuant to
and in accordance with Rule 144A under the United States Securities Act of
1933, as amended (the “Securities Act”),
and, accordingly, the Transferor hereby further certifies that the beneficial
interest or Definitive Note is being transferred to a Person that the
Transferor reasonably believed and believes is purchasing the beneficial
interest or Definitive Note for its own account, or for one or more accounts
with respect to which such Person exercises sole investment discretion, and
such Person and each such account is a “qualified institutional buyer” within
the meaning of Rule 144A in a transaction meeting the requirements of Rule 144A
and such Transfer is in compliance with any applicable blue sky securities laws
of any state of the United States.  Upon
consummation of the proposed Transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Note will be
subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the 144A Global Note and/or the Definitive Note and in the
Indenture and the Securities Act.

 

B-1

 

2.          o                                          Check if Transferee will take delivery of a beneficial interest in the
Regulation S Global Note or a Definitive Note pursuant to Regulation S.  The Transfer is being effected pursuant to
and in accordance with Rule 903 or Rule 904 under the Securities Act
and, accordingly, the Transferor hereby further certifies that (i) the
Transfer is not being made to a Person in the United States and (x) at the
time the buy order was originated, the Transferee was outside the United States
or such Transferor and any Person acting on its behalf reasonably believed and
believes that the Transferee was outside the United States or (y) the
transaction was executed in, on or through the 
facilities of a designated offshore securities market and neither such
Transferor nor any Person acting on its behalf knows that the transaction was
prearranged with a buyer in the United States, (ii) no directed selling
efforts have been made in contravention of the requirements of Rule 903(b) or
Rule 904(b) of Regulation S under the Securities Act, (iii) the
transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act and (iv) if the proposed transfer is
being made prior to the expiration of the Restricted Period, the transfer is
not being made to a U.S. Person or for the account or benefit of a U.S.
Person.  Upon consummation of the
proposed transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will be subject to the restrictions on
Transfer enumerated in the Private Placement Legend printed on the Regulation S
Global Note and/or the Definitive Note and in the Indenture and the Securities
Act.

 

3.          o                                          Check and complete if Transferee will take delivery of a beneficial
interest in the IAI Global Note or a Restricted Definitive Note pursuant to any
provision of the Securities Act other than Rule 144A or Regulation S.  The Transfer is being effected in compliance
with the transfer restrictions applicable to beneficial interests in Restricted
Global Notes and Restricted Definitive Notes and pursuant to and in accordance
with the Securities Act and any applicable blue sky securities laws of any
state of the United States, and accordingly the Transferor hereby further
certifies that (check one):

 

(a)          o                                     such Transfer
is being effected pursuant to and in accordance with Rule 144 under the
Securities Act;

 

or

 

(b)          o                                    or such
Transfer is being effected to the Company or a subsidiary thereof;

 

or

 

(c)          o                                     such Transfer
is being effected pursuant to an effective registration statement under the
Securities Act and in compliance with the prospectus delivery requirements of
the Securities Act.

 

or

 

(d)          o                                    such Transfer
is being effected to an Institutional Accredited Investor in a minimum
denomination of $250,000 and pursuant to an exemption from the registration
requirements of the Securities Act other than Rule 144A, Rule 144, Rule 903
or Rule 904, and the Transferor hereby further certifies that it has not
engaged in any general solicitation within the meaning

 

B-2

 

of Regulation D under
the Securities Act and the Transfer complies with the transfer restrictions
applicable to beneficial interests in a Restricted Global Note or Restricted
Definitive Notes and the requirements of the exemption claimed, which
certification is supported by (1) a certificate executed by the Transferee
in the form of Exhibit D to the Indenture and (2) if requested by the
Trustee or an Issuer, an Opinion of Counsel provided by the Transferor or the
Transferee (a copy of which the Transferor has attached to this certification),
to the effect that such Transfer is in compliance with the Securities Act.  Upon consummation of the proposed transfer in
accordance with the terms of the Indenture, the transferred beneficial interest
or Definitive Note will be subject to the restrictions on transfer enumerated
in the Private Placement Legend printed on the IAI Global Note and/or the
Restricted Definitive Notes and in the Indenture and the Securities Act.

 

4.          o                                          Check if Transferee will take delivery of a beneficial interest in an
Unrestricted Global Note or of an Unrestricted Definitive Note.

 

(a)          o                                     Check if Transfer is pursuant to Rule 144.  (i)  The Transfer is being effected
pursuant to and in accordance with Rule 144 under the Securities Act and
in compliance with the transfer restrictions contained in the Indenture and any
applicable blue sky securities laws of any state of the United States and (ii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities
Act.  Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will no longer be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on
the Restricted Global Notes, on Restricted Definitive Notes and in the
Indenture.

 

(b)          o                                    Check if Transfer is pursuant to Regulation S.  (i)  The Transfer is being effected
pursuant to and in accordance with Rule 903 or Rule 904 under the
Securities Act and in compliance with the transfer restrictions contained in
the Indenture and any applicable blue sky securities laws of any state of the
United States and (ii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act. 
Upon consummation of the proposed Transfer in accordance with the terms
of the Indenture, the transferred beneficial interest or Definitive Note will
no longer be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Restricted Global Notes, on Restricted
Definitive Notes and in the Indenture.

 

(c)          o                                     Check if Transfer is pursuant to other exemption.  (i)  The Transfer is being effected
pursuant to and in compliance with an exemption from the registration
requirements of the Securities Act other than Rule 144,

 

B-3

 

Rule 903 or Rule 904
and in compliance with the transfer restrictions contained in the Indenture and
any applicable blue sky securities laws of any State of the United States and (ii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities
Act.  Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will not be subject to the restrictions
on transfer enumerated in the Private Placement Legend printed on the
Restricted Global Notes or Restricted Definitive Notes and in the Indenture.

 

This certificate and the
statements contained herein are made for your benefit and the benefit of the
Company.

 

	
   

  	
   

  
	
   

  	
  [Insert
  Name of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
				

 

B-4

 

ANNEX A TO CERTIFICATE OF TRANSFER

 

1.             The Transferor owns and
proposes to transfer the following:

 

[CHECK ONE OF (a) OR (b)]

 

(a)           o            a beneficial interest in
the:

 

(i)            o             144A Global Note (CUSIP
[               ]),
or

 

(ii)           o             Regulation S Global Note (CUSIP
[               ]),  or

 

(iii)          o             IAI Global Note ([         ]); or

 

(b)           o            a Restricted Definitive
Note.

 

2.             After the Transfer the
Transferee will hold:

 

[CHECK ONE]

 

(a)           o            a beneficial interest in
the:

 

(i)            o             144A Global Note (CUSIP
[               ]),
 or

 

(ii)           o             Regulation S Global Note (CUSIP
[               ]),
or

 

(iii)          o             IAI Global Note ([            ]); or

 

(iii)          o             Unrestricted Global Note (CUSIP
[               ]),  or

 

(b)           o            a Restricted Definitive
Note; or

 

(c)           o            an Unrestricted Definitive
Note,

 

in
accordance with the terms of the Indenture.

 

B-5

 

EXHIBIT C

 

FORM OF CERTIFICATE OF EXCHANGE

 

Reddy
Ice Corporation

8750
North Central Expressway

Suite 800

Dallas,
Texas  75231

Attention:  Steven J. Janusek

Facsimile
No.:  (214) 528-1532

 

Wells
Fargo Bank, National Association

1445 Ross Avenue, 2nd Floor

Dallas,
TX 75202

Attention:  Corporate Trust Services

Facsimile:  214-777-4086

 

Re:  13.25% Senior Secured
Notes due 2015

 

(CUSIP
[             ])

 

Reference
is hereby made to the Indenture, dated as of March 15, 2010 (the “Indenture”), among Reddy Ice Corporation,
as Issuer (the “Company”), the
Guarantors named therein and Wells Fargo Bank, National Association, as
trustee.  Capitalized terms used but not
defined herein shall have the meanings given to them in the Indenture.

 

(the
“Owner”) owns and proposes to
exchange the Note[s] or interest in such Note[s] specified herein, in the
principal amount of
$                
in such Note[s] or interests (the “Exchange”).  In connection with the Exchange, the Owner
hereby certifies that:

 

1.             Exchange of
Restricted Definitive Notes or Beneficial Interests in a Restricted Global Note
for Unrestricted Definitive Notes or Beneficial Interests in an Unrestricted Global
Note.

 

(a)           o            Check if
Exchange is from beneficial interest in a Restricted Global Note to beneficial
interest in an Unrestricted Global Note.  In connection with the Exchange of the Owner’s
beneficial interest in a Restricted Global Note for a beneficial interest in an
Unrestricted Global Note in an equal principal amount, the Owner hereby
certifies (i) the beneficial interest is being acquired for the Owner’s
own account without transfer, (ii) such Exchange has been effected in
compliance with the transfer restrictions applicable to the Global Notes and
pursuant to and in accordance with the United States Securities Act of 1933, as
amended (the “Securities Act”), (iii) the
restrictions on transfer contained in the Indenture and the Private Placement Legend
are not required in order to maintain compliance with the Securities Act and (iv) the
beneficial interest in an Unrestricted Global Note is being acquired in
compliance with any applicable blue sky securities laws of any state of the
United States.

 

(b)           o            Check if
Exchange is from beneficial interest in a Restricted Global Note to
Unrestricted Definitive Note.  In connection with the Exchange of the Owner’s
beneficial interest in a Restricted Global Note for an Unrestricted Definitive
Note, the Owner hereby certifies (i) the Definitive Note is being acquired
for the Owner’s own account without transfer, (ii) such Exchange has been
effected 

 

C-1

 

in
compliance with the transfer restrictions applicable to the Restricted Global
Notes and pursuant to and in accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act
and (iv) the Definitive Note is being acquired in compliance with any
applicable blue sky securities laws of any state of the United States.

 

(c)           o            Check if
Exchange is from Restricted Definitive Note to beneficial interest in an
Unrestricted Global Note.  In
connection with the Owner’s Exchange of a Restricted Definitive Note for a
beneficial interest in an Unrestricted Global Note, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without
transfer, (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to Restricted Definitive Notes and pursuant to
and in accordance with the Securities Act, (iii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the
beneficial interest is being acquired in compliance with any applicable blue
sky securities laws of any state of the United States.

 

(d)           o            Check if
Exchange is from Restricted Definitive Note to Unrestricted Definitive Note.  In connection with the Owner’s Exchange of a
Restricted Definitive Note for an Unrestricted Definitive Note, the Owner
hereby certifies (i) the Unrestricted Definitive Note is being acquired
for the Owner’s own account without transfer, (ii) such Exchange has been
effected in compliance with the transfer restrictions applicable to Restricted
Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act
and (iv) the Unrestricted Definitive Note is being acquired in compliance
with any applicable blue sky securities laws of any state of the United States.

 

2.             Exchange of
Restricted Definitive Notes or Beneficial Interests in Restricted Global Notes
for Restricted Definitive Notes or Beneficial Interests in Restricted Global
Notes.

 

(a)           o            Check if
Exchange is from beneficial interest in a Restricted Global Note to Restricted
Definitive Note.  In
connection with the Exchange of the Owner’s beneficial interest in a Restricted
Global Note for a Restricted Definitive Note with an equal principal amount,
the Owner hereby certifies that the Restricted Definitive Note is being
acquired for the Owner’s own account without transfer.  Upon consummation of the proposed Exchange in
accordance with the terms of the Indenture, the Restricted Definitive Note
issued will continue to be subject to the restrictions on transfer enumerated
in the Private Placement Legend printed on the Restricted Definitive Note and
in the Indenture and the Securities Act.

 

(b)           o            Check if
Exchange is from Restricted Definitive Note to beneficial interest in a
Restricted Global Note.  In
connection with the Exchange of the Owner’s Restricted Definitive Note for a
beneficial interest in the [CHECK ONE]     144A Global Note,
    Regulation S Global Note or      IAI
Global Note with an equal principal amount, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without
transfer and (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to the Restricted Global Notes and pursuant to
and in accordance with the Securities Act, and in compliance with any
applicable blue sky securities laws of any state of the United States.  Upon consummation of the proposed Exchange in
accordance with the terms of the Indenture, the beneficial interest issued will
be subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the relevant Restricted Global Note and in the Indenture and
the Securities Act.

 

C-2

 

This
certificate and the statements contained herein are made for your benefit and
the benefit of the Company.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Insert Name of Transferor]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
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C-3

 

EXHIBIT D

 

FORM OF CERTIFICATE FROM

ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

 

Reddy
Ice Corporation

8750
North Central Expressway

Suite 800

Dallas,
Texas  75231

Attention:  Steven J. Janusek

Facsimile
No.:  (214) 528-1532

 

Wells
Fargo Bank, National Association

1445 Ross Avenue, 2nd Floor

Dallas,
TX 75202

Attention:  Corporate Trust Services

Facsimile:
214-777-4086

 

Re:  13.25% Senior Secured
Notes due 2015

 

Reference
is hereby made to the Indenture, dated as of March 15, 2010 (the “Indenture”), among Reddy Ice Corporation,
as Issuer (the “Company”), the
Guarantors named therein and Wells Fargo Bank, National Association, as
trustee.  Capitalized terms used but not
defined herein shall have the meanings given to them in the Indenture.

 

In
connection with our proposed purchase of
$                        
aggregate principal amount(1) of:

 

(a)           o            a beneficial interest in a
Global Note, or

 

(b)           o            a Definitive Note,

 

we
confirm that:

 

1.             We understand that any
subsequent transfer of the Notes or any interest therein is subject to certain
restrictions and conditions set forth in the Indenture and the undersigned
agrees to be bound by, and not to resell, pledge or otherwise transfer the
Notes or any interest therein except in compliance with, such restrictions and
conditions and the Securities Act of 1933, as amended (the “Securities Act”).

 

(1)           To be an amount not less
than $250,000.

 

D-1

 

2.             We understand that the offer
and sale of the Notes have not been registered under the Securities Act, and
that the Notes and any interest therein may not be offered or sold except as
permitted in the following sentence.  We
agree, on our own behalf and on behalf of any accounts for which we are acting
as hereinafter stated, that if we should sell the Notes or any interest
therein, we will do so only (A) to the Company or any subsidiary of the
Company, (B) in accordance with Rule 144A under the Securities Act to
a “qualified institutional buyer” (as defined therein), (C) in a minimum
principal amount of $250,000 to an institutional “accredited investor” (as
defined below) that, prior to such transfer, furnishes (or has furnished on its
behalf by a U.S. broker-dealer) to you and to the Company a signed letter
substantially in the form of this letter and, if requested by the Trustee or an
Issuer, an Opinion of Counsel in form reasonably acceptable to the Company to
the effect that such transfer is in compliance with the Securities Act, (D) outside
the United States in accordance with Rule 904 of Regulation S under
the Securities Act, (E) pursuant to the provisions of Rule 144 under
the Securities Act or (F) pursuant to an effective registration statement
under the Securities Act, and we further agree to provide to any Person purchasing
the Definitive Note or beneficial interest in a Global Note from us in a
transaction meeting the requirements of clauses (A) through (E) of
this paragraph a notice advising such purchaser that resales thereof are
restricted as stated herein.

 

3.             We understand that, on any
proposed resale of the Notes or beneficial interest therein, we will be
required to furnish to you and the Company such certifications, legal opinions
and other information as you and the Company may reasonably require to confirm that
the proposed sale complies with the foregoing restrictions.  We further understand that the Notes
purchased by us will bear a legend to the foregoing effect.

 

4.             We are an institutional “accredited
investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of
Regulation D under the Securities Act) and have such knowledge and
experience in financial and business matters as to be capable of evaluating the
merits and risks of our investment in the Notes, and we and any accounts for
which we are acting are each able to bear the economic risk of our or its
investment.

 

5.             We are acquiring the Notes
or beneficial interest therein purchased by us for our own account or for one
or more accounts (each of which is an institutional “accredited investor”) as
to each of which we exercise sole investment discretion.

 

You
and the Company are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal proceedings or official inquiry with respect to the
matters covered hereby.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Insert Name of Accredited Investor]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
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D-2

 

Exhibit E

 

Form of Mortgage

 

E-1Exhibit 4.3

 

EXECUTION COPY

 

REDDY ICE HOLDINGS,
INC.

 

As Issuer

 

 

10 1/2%
Senior Discount Notes due 2012

 

 

SECOND
SUPPLEMENTAL INDENTURE

 

Dated as of March 3,
2010

 

 

Supplementing
the Indenture dated as of October 27, 2004

by and between Reddy Ice Holdings, Inc. and U.S. Bank National
Association, as Trustee

 

 

U.S. BANK
NATIONAL ASSOCIATION

As Trustee

 

 

 

SECOND SUPPLEMENTAL
INDENTURE dated as of March 3, 2010 (this “Supplemental Indenture”), by
and between Reddy Ice Holdings, Inc. (the “Company”) and U.S. Bank
National Association, as trustee (the “Trustee”).

 

WHEREAS, the Company and the
Trustee are parties to an indenture dated as of October 27, 2004, as
supplemented by the First Supplemental Indenture dated as of July 28, 2005
(the “Indenture”), which governs the terms of the Company’s 10 1/2% Senior Discount
Notes Due 2012 (the “Securities”);

 

WHEREAS, Section 9.02
of the Indenture provides that the Company and the Trustee may amend the
Indenture with the consent of the Holders of at least a majority in aggregate
principal amount of the Securities then outstanding (the “Requisite Consents”);

 

WHEREAS, pursuant to the Offering
Circular dated February 22, 2010 (the “Offering Circular”), Reddy Ice Corporation,
a wholly owned subsidiary of the Company (“Reddy Corp”), commenced an exchange offer
for any and all outstanding Securities and solicited consents from Holders of
Securities to amend certain provisions of the Indenture (the “Exchange Offer”),
as set forth in Article I hereof;

 

WHEREAS, the Requisite
Consents to the amendments effected by this Supplemental Indenture have been
received; and

 

WHEREAS, this Supplemental
Indenture has been duly authorized by all necessary corporate action on the
part of the Company.

 

NOW, THEREFORE, the Company
and the Trustee agree as follows for the equal and ratable benefit of the
Holders of the Securities:

 

ARTICLE
I

 

Amendments

 

Section 1.01.    Amendments
to Articles 4 and 9.  Upon
effectiveness of the amendments set forth in this Article, each of Section 4.02
(Reporting Requirements), Section 4.03 (Limitation on Indebtedness), Section 4.04
(Limitation on Restricted Payments), Section 4.05 (Limitation on
Restrictions on Distributions from Restricted Subsidiaries), Section 4.06
(Limitation on Sales of Assets and Subsidiary Stock), Section 4.07
(Limitation on Affiliate Transactions), Section 4.08 (Limitation of Line
of Business), Section 4.09 (Limitation on Guarantees of Company
Indebtedness), Section 4.10 (Change of Control), Section 4.11
(Limitation on Liens), Section 4.12 (Compliance Certificate), Section 4.13
(Further Instruments and Acts) and Section 9.07 (Payment for Consent) of
the Indenture shall be deleted in its entirety and replaced with the phrase “[Intentionally
Omitted]” and the Company shall be released from any and all of its obligations
thereunder.  All references to such
deleted sections shall also be deleted in their entirety.

 

Section 1.02.    Amendments
to Article 5.  Upon
effectiveness of the amendments set forth in this Article, each of clauses (2) through
(4) of the first paragraph of Section 5.01 shall be deleted in its
entirety and replaced with the phrase “[Intentionally Omitted],” the second to
last paragraph of 

 

2

 

Section 5.01 shall
be deleted in its entirety, and the Company shall be released from any and all
of its obligations thereunder.  All
references to such deleted clauses shall also be deleted in their entirety.

 

Section 1.03.    Amendments
to Article 6.  Upon
effectiveness of the amendments set forth in this Article, each of clauses (3) through
(9) of Section 6.01 shall be deleted in its entirety and replaced
with the phrase “[Intentionally Omitted]” and the Company shall be released
from any and all of its obligations thereunder. 
All references to such deleted clauses shall also be deleted in their
entirety.

 

Section 1.04.    Amendments
to Article 8.  Upon
effectiveness of the amendments set forth in this Article, each of clauses (2) through
(8) of Section 8.02 shall be deleted in its entirety and replaced
with the phrase “[Intentionally Omitted]” and the Company shall be released
from any and all of its obligations thereunder. 
All references to such deleted clause shall also be deleted in its
entirety.

 

Section 1.05.    Amendments
to Definitions.  All
definitions contained in the Indenture, the references to which would be
eliminated as a result of the amendments contained in Section 1.01 through
Section 1.04 herein, shall be deemed deleted in their entirety.

 

Section 1.06.    Trustee’s
Acceptance.  The Trustee
hereby accepts this Supplemental Indenture and agrees to perform the same under
the terms and conditions set forth in the Indenture.

 

ARTICLE II

 

Miscellaneous

 

Section 2.01.    Interpretation.  Upon execution and delivery of this
Supplemental Indenture and the effectiveness of the amendments set forth in Article I,
the Indenture shall be modified and amended in accordance with this
Supplemental Indenture, and all the terms and conditions of both shall be read
together as though they constitute one instrument, except that, in case of
conflict, the provisions of this Supplemental Indenture shall control.  The Indenture, as modified and amended by
this Supplemental Indenture, is hereby ratified and confirmed in all respects
and shall bind every Holder of Securities. 
In case of conflict between the terms and conditions contained in the
Securities and those contained in the Indenture, as modified and amended by
this Supplemental Indenture, the provisions of the Indenture, as modified and
amended by this Supplemental Indenture, shall control.

 

Section 2.02.    Conflict
with Trust Indenture Act.  If
any provision of this Supplemental Indenture limits, qualifies or conflicts
with any provision of the TIA that is required under the TIA to be part of and
govern any provision of this Supplemental Indenture, the provision of the TIA
shall control.  If any provision of this
Supplemental Indenture modifies or excludes any provision of the TIA that may
be so modified or excluded, the provision of the TIA shall be deemed to apply
to the Indenture as so modified or to be excluded by this Supplemental
Indenture, as the case may be.

 

3

 

Section 2.03.    Severability.  In case any provision in this Supplemental
Indenture shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

 

Section 2.04.    Terms
Defined in the Indenture.  All
capitalized terms not otherwise defined herein shall have the meanings ascribed
to them in the Indenture.

 

Section 2.05.    Headings.  The Article and Section headings of
this Supplemental Indenture have been inserted for convenience of reference
only, are not to be considered a part of this Supplemental Indenture and shall
in no way modify or restrict any of the terms or provisions hereof.

 

Section 2.06.    Benefits of
Supplemental Indenture, etc. 
Nothing in this Supplemental Indenture or the Securities, express or
implied, shall give to any Person, other than the parties hereto and thereto
and their successors hereunder and thereunder and the Holders of the
Securities, any benefit of any legal or equitable right, remedy or claim under
the Indenture, this Supplemental Indenture or the Securities.

 

Section 2.07.    Successors.  All agreements of the Company in this Supplemental
Indenture shall bind its successors.  All
agreements of the Trustee in this Supplemental Indenture shall bind its
successors.

 

Section 2.08.    Trustee Not
Responsible for Recitals.  The
recitals contained herein shall be taken as the statements of the Company and
the Trustee assumes no responsibility for their correctness.

 

Section 2.09.    Certain
Duties and Responsibilities of the Trustee.  In entering into this Supplemental Indenture,
the Trustee shall be entitled to the benefit of every provision of the
Indenture relating to the conduct or affecting the liability or affording
protection to the Trustee, whether or not elsewhere herein so provided.

 

Section 2.10.    Governing
Law.  This Supplemental
Indenture shall be governed by, and construed in accordance with, the laws of
the State of New York but without giving effect to applicable principles of
conflicts of law to the extent that the application of the laws of another
jurisdiction would be required thereby.

 

Section 2.11.    Counterpart
Originals.  The parties may
sign any number of copies of this Supplemental Indenture.  Each signed copy shall be an original, but
all of them together represent the same agreement.

 

Section 2.12.    Effectiveness
of Amendments.  This
Supplemental Indenture shall be effective upon execution hereof by the Company
and the Trustee; however the amendments to the Indenture set forth in Article I
shall not become operative until Reddy Corp has accepted for exchange as of the
initial acceptance date pursuant to the Exchange Offer at least a majority of
the aggregate principal amount of the Securities outstanding on the date
hereof.  In the event the Company
notifies (if orally, then confirmed in writing) Global Bondholder Services
Corporation, as depositary for the Securities under the Offering Circular (the “Depositary”),
that it has withdrawn or terminated the Exchange Offer, this Supplemental
Indenture shall be terminated and be of no 

 

4

 

force
or effect and the Indenture shall not be modified hereby.  The Company shall promptly notify the Trustee
in writing of any oral or written notice it gives to the Depositary.

 

5

 

IN WITNESS WHEREOF, each
party hereto has caused this Supplemental Indenture to be signed by its officer
thereunto duly authorized as of the date first written above.

 

 

	
   

  	
   

  	
  REDDY
  ICE HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Steven J. Janusek

  
	
   

  	
   

  	
  Name:

  	
  Steven
  J. Janusek

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President, Chief

  
	
   

  	
   

  	
   

  	
  Financial
  Officer and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION,

  
	
   

  	
   

  	
  as
  Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Raymond S. Haverstock

  
	
   

  	
   

  	
  Name:

  	
  Raymond
  S. Haverstock

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  

 

[Supplemental Indenture]

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