Document:

Arkanova Acquisition Corporation - Exhibit 10.1 - Filed by newsfilecorp.com

NOTE AMENDMENT AND INTEREST
CONVERSION AGREEMENT

            THIS
NOTE AMENDMENT AND INTEREST CONVERSION AGREEMENT (this “Agreement”)
is made and entered into as of, but not necessarily on, the 15th day
of November, 2013 (the “Effective Date”), among Arkanova Energy
Corporation, a Nevada corporation (the “Parent”), Arkanova
Acquisition Corporation, a Nevada corporation and wholly-owned subsidiary of
the Parent (the “Company”), and Aton Select Funds Limited (the
“Investor”). 

Background

            A.       
The Company is currently indebted to the Investor in the principal amount of
US$10,106,025.00 under that certain amended and restated secured promissory note
from the Company to Investor entered into as of February 6, 2013 (the
“Note”); 

            B.       
The Company, Investor and the Parent have reached an agreement whereby: (i) the
maturity date under the Note shall be extended from March 31, 2014 to December
31, 2015 (the “Extension”); (ii) the Investor shall convert the
outstanding accrued interest under the Note equal to US$466,815.29 into
4,668,152 shares of the Parent’s common stock (the “Shares”) at a deemed
price of US$0.10 per Share (the “Conversion”); and (iii) the Investor
shall loan to the Company an additional US$1,705,000.00 (the “Additional Loan
Amount”) such that the outstanding balance under the Note equals
US$11,811,025.00; and 

            C.       
The Company, the Parent and the Investor now desire to formalize the terms and
conditions of the Extension and the Conversion. 

Terms and Conditions

            In
consideration of the mutual promises made herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows: 

            1.       
The Extension. At the Effective Date the Investor shall extend the Note
maturity date to December 31, 2015. 

            2.       
The Conversion. The Investor hereby irrevocably subscribes for and agrees
to acquire from the Parent the Shares at a deemed price of US$0.10 per Share as
satisfaction of the outstanding accrued interest immediately prior to the
Effective Date equal to US$466,815.29, which represents full and final payment
of the outstanding accrued interest immediately prior to the Effective Time.

            3.       
Modified Loan. At the Effective Date the Investor shall increase the
outstanding balance of its loan to the Company under the Note from
US$10,106,025.00 to US$11,811,025.00 by wire transfer to the account of the
Company at its bank in Austin, Texas, the Additional Loan Amount of
US$1,705,000. The combined new principal balance of the loan from the Investor
to the Company shall be evidenced by this Agreement to be appended to the Note.

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            4.       
Schedules. In connection with the Conversion and the Additional Loan
Amount, the Investor must complete and sign Exhibit A “Certificate of Non-U.S.
Shareholder” to ensure the Investor meets the standards of participation in a
private placement under applicable U.S. securities law. In addition, the
Investor must complete sign Exhibit B “Release” from any liability of the
Company associated with or related to the outstanding accrued interest
immediately prior to the Effective Date. 

            5.       
General. The Note will be deemed to be amended in all manners and
respects in order to give full force and effect to this Agreement and, in all
other respects, the Note will remain unchanged and in full force and effect.

            6.       
Counterparts. This Agreement may be executed in multiple counterparts and
all counterparts taken together shall be deemed to constitute one and the same
document. This Agreement may be executed and delivered by facsimile or
electronic transmission. 

IN WITNESS WHEREOF, the parties have executed this Agreement as
of the day and year first above written. 

ARKANOVA ACQUISITION CORPORATION

 

By: “Pierre Mulacek”

       Pierre Mulacek, President 

 

ARKANOVA ENERGY CORPORATION

 

By: “Pierre
Mulacek” 
       Pierre Mulacek,
President 

 

ATON SELECT FUNDS LIMITED 

 

By: “David
Dawes” 
       David Dawes,
Director 

Exhibit A 

CERTIFICATE OF NON-U.S. SHAREHOLDER 

In connection with the issuance of shares of Arkanova Energy
Corporation’s common stock (the “Shares”) to the undersigned in satisfaction of
outstanding accrued interest under an amended and restated secured promissory
note from Arkanova Acquisition Corporation to the undersigned and an additional
loan amount pursuant to the note, the undersigned hereby agrees, acknowledges,
represents and warrants that: 

            1.       
the undersigned is not a “U.S. Person” as such term is defined by Rule 902 of
Regulation S under the United States Securities Act of 1933, as amended (“U.S.
Securities Act”) (the definition of which includes, but is not limited to, an
individual resident in the U.S. and an estate or trust of which any executor or
administrator or trust, respectively is a U.S. Person and any partnership or
corporation organized or incorporated under the laws of the U.S.); 

            2.       
the Shares have not been nor will the Shares be registered under the U.S.
Securities Act, or under any state securities or “blue sky” laws of any state of
the United States, and may not be offered or sold in the United States or,
directly or indirectly, to U.S. Persons, as that term is defined in Regulation
S, except in accordance with the provisions of Regulation S or pursuant to an
exemption from, or in a transaction not subject to, the registration
requirements of the U.S. Securities Act and in compliance with any applicable
state and foreign securities laws; 

            3.       
the undersigned understands and agrees that offers and sales of any of the
Shares prior to the expiration of a period of six months after the date of
original issuance of the Shares (the six month period hereinafter referred to as
the “Distribution Compliance Period”) shall only be made in compliance with the
safe harbor provisions set forth in Regulation S, pursuant to the registration
provisions of the U.S. Securities Act or an exemption therefrom, and that all
offers and sales after the Distribution Compliance Period shall be made only in
compliance with the registration provisions of the U.S. Securities Act or an
exemption therefrom and in each case only in accordance with applicable state
and foreign securities laws;

            4.       
the undersigned understands and agrees not to engage in any hedging transactions
involving any of the Shares unless such transactions are in compliance with the
provisions of the U.S. Securities Act and in each case only in accordance with
applicable state and provincial securities laws; 

            5.       
the undersigned is acquiring the Shares for investment only and not with a view
to resale or distribution and, in particular, it has no intention to distribute
either directly or indirectly any of the Shares in the United States or to U.S.
Persons; 

            6.       
the undersigned has not acquired the Shares as a result of, and will not itself
engage in, any directed selling efforts (as defined in Regulation S under the
U.S. Securities Act) in the United States in respect of the Shares which would
include any activities undertaken for the purpose of, or that could reasonably
be expected to have the effect of, conditioning the market in the United States
for the resale of any of the Shares; provided, however, that the undersigned may
sell or otherwise dispose of the Shares pursuant to registration thereof under
the U.S. Securities Act and any applicable state and provincial securities laws
or under an exemption from such registration requirements; 

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            7.       
the statutory and regulatory basis for the exemption claimed for the sale of the
Shares, although in technical compliance with Regulation S, would not be
available if the offering is part of a plan or scheme to evade the registration
provisions of the U.S. Securities Act or any applicable state and provincial
securities laws; 

            8.       
Arkanova Energy Corporation has not undertaken, and will have no obligation, to
register any of the Shares under the U.S. Securities Act;

            9.       
Arkanova Energy Corporation is entitled to rely on the acknowledgements,
agreements, representations and warranties and the statements and answers of the
undersigned contained in this Certificate, and the undersigned will hold
harmless Arkanova Energy Corporation from any loss or damage either one may
suffer as a result of any such acknowledgements, agreements, representations
and/or warranties made by the undersigned not being true and correct; 

            10.       
the undersigned has been advised to consult their own respective legal, tax and
other advisors with respect to the merits and risks of an investment in the
Shares and, with respect to applicable resale restrictions, is solely
responsible (and Arkanova Energy Corporation is not in any way responsible) for
compliance with applicable resale restrictions; 

            11.       
the undersigned and the undersigned’s advisor(s) have had a reasonable
opportunity to ask questions of and receive answers from Arkanova Energy
Corporation in connection with the acquisition of the Shares, and to obtain
additional information, to the extent possessed or obtainable by Arkanova Energy
Corporation without unreasonable effort or expense; 

            12.       
the books and records of Arkanova Energy Corporation were available upon
reasonable notice for inspection, subject to certain confidentiality
restrictions, by the undersigned during reasonable business hours at its
principal place of business and that all documents, records and books in
connection with the acquisition of the Shares under the Note have been made
available for inspection by the undersigned, the undersigned’s attorney and/or
advisor(s); 

            13.       
the undersigned (i) is able to fend for itself in connection with the
acquisition of the Shares; (ii) has such knowledge and experience in business
matters as to be capable of evaluating the merits and risks of its prospective
investment in the Shares; and (iii) has the ability to bear the economic risks
of its prospective investment and can afford the complete loss of such
investment;

            14.       
the undersigned is not aware of any advertisement of any of the Shares and is
not acquiring the Shares as a result of any form of general solicitation or
general advertising including advertisements, articles, notices or other
communications published in any newspaper, magazine or similar media or
broadcast over radio or television, or any seminar or meeting whose attendees
have been invited by general solicitation or general advertising; 

           
15.        no Person has made to the
undersigned any written or oral representations: 

	 	(a) 	
      that any Person will resell or repurchase any of the
      Shares;

	 	 	 
	 	(b) 	
      that any Person will refund the purchase price of any of
      the Shares;

	 	 	 
	 	(c) 	
      as to the future price or value of any of the Shares;
      or

- 5 - 

	 	(d) 	
      that any of the Shares will be listed and posted for
      trading on any stock exchange or automated dealer quotation system or that
      application has been made to list and post any of the Securities on any
      stock exchange or automated dealer quotation
system;

            16.       
none of the Shares are listed on any stock exchange or automated dealer
quotation system and no representation has been made to the undersigned that any
of the Shares will become listed on any stock exchange or automated dealer
quotation system; 

            17.       
the undersigned is outside the United States when receiving and executing this
Certificate and is acquiring the Shares as principal for their own account, for
investment purposes only, and not with a view to, or for, resale, distribution
or fractionalization thereof, in whole or in part and no other Person has a
direct or indirect beneficial interest in the Shares; 

            18.       
neither the U.S. Securities and Exchange Commission nor any other securities
commission or similar regulatory authority has reviewed or passed on the merits
of the Shares; 

            19.       
the Shares are not being acquired, directly or indirectly, for the account or
benefit of a U.S. Person or a Person in the United States; 

            20.       
the undersigned acknowledges and agrees that Arkanova Energy Corporation shall
refuse to register any transfer of Shares not made in accordance with the
provisions of Regulation S, pursuant to registration under the U.S. Securities
Act, or pursuant to an available exemption from registration under the U.S.
Securities Act; and 

           
21.        the undersigned understands and
agrees that the Shares will bear the following legend:

  
    
      
        “THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN
          OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED HEREIN)
          PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
          AMENDED (THE “1933 ACT”).

        NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED
          UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO
          REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED
          STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE
          PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE
          REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN EXEMPTION FROM, OR
          IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT
          AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE SECURITIES LAWS. IN
          ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED
          UNLESS IN COMPLIANCE WITH THE 1933 ACT. “UNITED STATES” AND “U.S. PERSON” ARE AS
          DEFINED BY REGULATION S UNDER THE 1933 ACT.” 

      

    

  

- 6 - 

IN WITNESS WHEREOF, I have executed this Certificate of
Non-U.S. Shareholder. 

 

Dated _____________________________, 20____. 

ATON SELECT FUNDS LIMITED 

 

By:
______________________________________

      
David Dawes, Director 

Exhibit B 

RELEASE 

1.        GENERAL RELEASE

KNOW ALL MEN BY THESE PRESENTS that ATON SELECT FUNDS LIMITED
(the “Purchaser”), on its own behalf and also on behalf of its heirs, executors,
administrators, successors and assigns and all persons or legal entities
entitled to make any subrogated claims on his behalf or in its name (all of whom
are hereinafter collectively referred to as the “Releasors”), for and in
consideration of the subscription for 4,668,152 common shares in the capital of
Arkanova Energy Corporation at a deemed price of US$0.10, and all other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, do hereby remise, release, forever discharge, hold harmless and
indemnify Arkanova Energy Corporation and Arkanova Acquisition Corporation, and
all of their past or present administrators, employees, officers, directors,
adjusters, solicitors, agents, successors and assigns, as applicable, (all of
whom are hereinafter collectively referred to as the “Releasees”), of and from
any and all manner of actions, causes of action, suits, debts, sums of money,
dues, expenses, general damages, special damages, costs, claims and demands of
any and every kind and nature whatsoever including all types of subrogated
claims and claims for indemnity or contribution, at law or in equity, or under
any statute, which the Releasors, any of them or anyone else claiming through
them or in their name ever had, now have or which they hereafter may have
against the Releasees or any of them, and without restricting the generality of
the forgoing, by reason of or arising out of or in any way connected to any
liability of the Releasees whether associated with or related to the outstanding
accrued interest equal to US$466,815.29 owed to the Releasors by the Arkanova
Acquisition Corporation as of November 14, 2013 pursuant to an amended and
restated secured promissory note from Arkanova Acquisition Corporation to the
Purchaser entered into as of February 6, 2013. 

2.        FACTS CURRENTLY
KNOWN 

All parties to this Release acknowledge that the facts in
respect of which this Release is made may prove to be other than, or different
from, the facts now known or believed to be true. All parties to this Release
accept and assume the risk of the facts being different and agree that this
Release shall in all respects be enforceable and not subject to termination,
rescission, or variation by discovery of any difference in facts or by discovery
of any new facts. 

3.        ENTIRE AGREEMENT

This Release contains the entire agreement between all parties
to this Release and cancels and supersedes any prior understandings and
agreements between the parties. There are no representations, warranties, forms,
conditions, undertakings or collateral agreements, express, implied or statutory
between the parties other than as expressly set forth in this Release.

4.        UNENFORCEABLE
PROVISIONS 

If any paragraph or section or any portion of any paragraph or
section of this Release is determined to be unenforceable or invalid for any
reason by a Court of competent jurisdiction, that unenforceability or invalidity
will not affect the enforceability or validity of the remaining portions of this
Release, and such unenforceable paragraph or section or portion thereof will be
severed from the remainder of this Release and the remaining paragraphs or
sections thereof will be and remain in full force and effect.

- 8 - 

5.        INDEPENDENT LEGAL
ADVICE 

The parties to this Release acknowledge that they have executed
this Release voluntarily after receiving independent legal advice from their
solicitors.

6.        CAPACITY TO
EXECUTE 

All parties to this Release covenant that they have sufficient
capacity to execute this Release and have read this Release and know the
contents thereof, and hereby execute this Release of their own free act and
will, fully understanding the contents hereof, and say that they have not been
influenced to any extent whatsoever in making this Release by any
representations or statements by any of the parties to this Release or by any
person or persons representing any of the parties to this Release or acting on
its behalf. The Releasors further declare that they have carefully read this
Release, the terms of which are contractual and not a mere recital, that the
entire contents hereof are fully understood by them and that the same is being
executed as their own free act and without any pressure or duress of any
description.

7.        GOVERNING LAW 

This Release shall be governed by and constructed in accordance
with the laws of the State of Nevada. 

IN WITNESS WHEREOF the undersigned, on his own behalf and also
on behalf of the Releasors as defined herein, have executed this Release, at
_____________________, this ________ day of __________________, 2013. 

ATON SELECT FUNDS LIMITED 

 

By:
______________________________________

      
David Dawes, Directorindenture112213

Exhibit 4.1                     U.S. CONCRETE, INC.,      as Issuer,      AND EACH OF THE SUBSIDIARY GUARANTORS PARTY HERETO      8.500% Senior Secured Notes Due 2018      INDENTURE   Dated as of November 22, 2013      U.S. BANK NATIONAL ASSOCIATION,      as Trustee and Noteholder Collateral Agent           

 

   CROSS-REFERENCE TABLE      TIA   Section    Indenture   Section   310(a)  ...................................................... 7.10   (b)  ...................................................... 7.10   (c)  ...................................................... N.A.   311(a)  ...................................................... 7.11   (b)  ...................................................... 7.11   (c)  ...................................................... N.A.   312(a)  ...................................................... N.A.   (b)  ...................................................... 12.03   (c)  ...................................................... 12.03   313(a)  ...................................................... 7.06   (b)  ...................................................... 7.06; 11.04(c)   (c)  ...................................................... N.A.   (d)  ...................................................... N.A.   314(a)  ...................................................... 4.02; 4.16   (b)  ...................................................... N.A.   (c)  ...................................................... N.A.   (d)  ...................................................... 11.04(c)   (e)  ...................................................... N.A.   (f)  ...................................................... N.A.   315(a)  ...................................................... N.A.   (b)  ...................................................... N.A.   (c)  ...................................................... N.A.   (d)  ...................................................... N.A.   (e)  ...................................................... N.A.   316(a)  ......................................................  N.A.   (b)  ...................................................... N.A.     

 

3   317(a)  ...................................................... N.A.   (b)  ...................................................... N.A.   318(a)  ...................................................... N.A.      N.A. means Not Applicable.       Note:  This Cross-Reference Table shall not, for any purpose, be deemed to be part of this Indenture.        

 

i      TABLE OF CONTENTS    Page   Article 1      Definitions and Incorporation by Reference   SECTION 1.01. Definitions........................................................................................1   SECTION 1.02. Other Definitions ...........................................................................41   SECTION 1.03. Incorporation by Reference of Trust Indenture Act .......................42   SECTION 1.04. Rules of Construction ....................................................................42   Article 2      The Securities   SECTION 2.01. Form and Dating ............................................................................43   SECTION 2.02. Execution and Authentication ........................................................43   SECTION 2.03. Registrar and Paying Agent ...........................................................44   SECTION 2.04. Paying Agent To Hold Money in Trust .........................................44   SECTION 2.05. Holder Lists ....................................................................................45   SECTION 2.06. Transfer and Exchange ..................................................................45   SECTION 2.07. Replacement Securities ..................................................................46   SECTION 2.08. Outstanding Securities ...................................................................46   SECTION 2.09. Temporary Securities .....................................................................46   SECTION 2.10. Cancellation ...................................................................................46   SECTION 2.11. Defaulted Interest ...........................................................................47   SECTION 2.12. CUSIP Numbers, ISINs, etc...........................................................47   SECTION 2.13. Issuance of Additional Securities ...................................................47   Article 3      Redemption   SECTION 3.01. Notices to Trustee ..........................................................................48   SECTION 3.02. Selection of Securities to Be Redeemed ........................................48   SECTION 3.03. Notice of Redemption ....................................................................48   SECTION 3.04. Effect of Notice of Redemption .....................................................49   SECTION 3.05. Deposit of Redemption Price .........................................................50   SECTION 3.06. Securities Redeemed in Part ..........................................................50   Article 4      Covenants   SECTION 4.01. Payment of Securities ....................................................................50     

 

ii   SECTION 4.02. SEC Reports ...................................................................................50   SECTION 4.03. Limitation on Indebtedness ............................................................51   SECTION 4.04. Limitation on Restricted Payments ................................................55   SECTION 4.05. Limitation on Restrictions on Distributions from Restricted   Subsidiaries ..............................................................................59   SECTION 4.06. Limitation on Sales of Assets and Subsidiary Stock .....................62   SECTION 4.07. Limitation on Affiliate Transactions ..............................................67   SECTION 4.08. Limitation on Line of Business ......................................................69   SECTION 4.09. Change of Control ..........................................................................69   SECTION 4.10. Limitation on Liens ........................................................................71   SECTION 4.11. Limitation on Sale/Leaseback Transactions ..................................72   SECTION 4.12. Future Subsidiary Guarantors ........................................................72   SECTION 4.13. Impairment of Security Interest .....................................................72   SECTION 4.14. Information Regarding Collateral ..................................................72   SECTION 4.15. Further Assurances and After-Acquired Property .........................73   SECTION 4.16. Compliance Certificate ..................................................................74   SECTION 4.17. Further Instruments and Acts .........................................................74   Article 5      Successor Company   SECTION 5.01. When Company May Merge or Transfer Assets ...........................74   Article 6      Defaults and Remedies   SECTION 6.01. Events of Default ...........................................................................77   SECTION 6.02. Acceleration ...................................................................................79   SECTION 6.03. Other Remedies ..............................................................................80   SECTION 6.04. Waiver of Past Defaults .................................................................80   SECTION 6.05. Control by Majority .......................................................................80   SECTION 6.06. Limitation on Suits .........................................................................81   SECTION 6.07. Rights of Holders to Receive Payment ..........................................81   SECTION 6.08. Collection Suit by Trustee .............................................................82   SECTION 6.09. Trustee May File Proofs of Claim .................................................82   SECTION 6.10. Priorities .........................................................................................82   SECTION 6.11. Undertaking for Costs ....................................................................82   SECTION 6.12. Waiver of Stay or Extension Laws ................................................83   Article 7      Trustee   SECTION 7.01. Duties of Trustee ............................................................................83   SECTION 7.02. Rights of Trustee ............................................................................84     

 

iii   SECTION 7.03. Individual Rights of Trustee ..........................................................85   SECTION 7.04. Trustee’s Disclaimer ......................................................................85   SECTION 7.05. Notice of Defaults ..........................................................................85   SECTION 7.06. Reports by Trustee to Holders .......................................................86   SECTION 7.07. Compensation and Indemnity ........................................................86   SECTION 7.08. Replacement of Trustee .................................................................86   SECTION 7.09. Successor Trustee by Merger .........................................................87   SECTION 7.10. Eligibility; Disqualification ...........................................................88   SECTION 7.11. Preferential Collection of Claims Against Company .....................88   SECTION 7.12. Security Documents; Intercreditor Agreement ..............................88   Article 8      Discharge of Indenture; Defeasance   SECTION 8.01. Discharge of Liability on Securities; Defeasance ..........................88   SECTION 8.02. Conditions to Defeasance ..............................................................90   SECTION 8.03. Application of Trust Money...........................................................91   SECTION 8.04. Repayment to Company .................................................................91   SECTION 8.05. Indemnity for Government Obligations .........................................91   SECTION 8.06. Reinstatement .................................................................................91   Article 9      Amendments   SECTION 9.01. Without Consent of Holders ..........................................................92   SECTION 9.02. With Consent of Holders ...............................................................93   SECTION 9.03. Compliance with Trust Indenture Act ............................................94   SECTION 9.04. Revocation and Effect of Consents and Waivers ...........................94   SECTION 9.05. Notation on or Exchange of Securities ..........................................95   SECTION 9.06. Trustee To Sign Amendments .......................................................95   SECTION 9.07. Payment for Consent ......................................................................95   Article 10      Subsidiary Guarantees   SECTION 10.01. Guarantees ......................................................................................95   SECTION 10.02. Limitation on Liability ...................................................................97   SECTION 10.03. Successors and Assigns ..................................................................97   SECTION 10.04. No Waiver ......................................................................................97   SECTION 10.05. Modification ...................................................................................98   SECTION 10.06. Release of Subsidiary Guarantor ...................................................98   SECTION 10.07. Contribution ...................................................................................98     

 

iv   Article 11      Security Documents   SECTION 11.01. Collateral and Security Documents ...............................................99   SECTION 11.02. Recording; Annual Opinions; Reports ...........................................99   SECTION 11.03. Non-Impairment of Liens ............................................................101   SECTION 11.04. Release of Collateral ....................................................................101   SECTION 11.05. Suits To Protect the Collateral .....................................................103   SECTION 11.06. Authorization of Receipt of Funds by the Trustee Under the   Security Documents ...............................................................103   SECTION 11.07. Purchaser Protected ......................................................................104   SECTION 11.08. Powers Exercisable by Receiver or Trustee .................................104   SECTION 11.09. Release Upon Termination of the Company’s Obligations .........104   SECTION 11.10. Noteholder Collateral Agent ........................................................104   SECTION 11.11. Designations .................................................................................105   Article 12      Miscellaneous   SECTION 12.01. Trust Indenture Act Controls .......................................................106   SECTION 12.02. Notices .........................................................................................106   SECTION 12.03. Communication by Holders with Other Holders .........................107   SECTION 12.04. Certificate and Opinion as to Conditions Precedent ....................107   SECTION 12.05. Statements Required in Certificate or Opinion ............................107   SECTION 12.06. When Securities Disregarded .......................................................107   SECTION 12.07. Rules by Trustee, Paying Agent and Registrar ............................108   SECTION 12.08. Legal Holidays .............................................................................108   SECTION 12.09. Governing Law ............................................................................108   SECTION 12.10. No Recourse Against Others ........................................................108   SECTION 12.11. Successors ....................................................................................108   SECTION 12.12. Multiple Originals ........................................................................108   SECTION 12.13. Table of Contents; Headings ........................................................108   SECTION 12.14. Intercreditor Agreement Governs ................................................108      Rule 144A/Regulation S Appendix   Exhibit 1 – Form of Initial Security   Exhibit A – Form of Exchange Security    Exhibit 2 – Form of Transfer Letter of Representation        

 

      INDENTURE dated as of November 22, 2013, among U.S.   CONCRETE, INC. a Delaware corporation (the “Company”), each   SUBSIDIARY GUARANTOR from time to time party hereto   (collectively, the “Subsidiary Guarantors”) and U.S. BANK   NATIONAL ASSOCIATION, a national banking association, as   trustee (in such capacity, the “Trustee”) and as noteholder   collateral agent (in such capacity, the “Noteholder Collateral   Agent”).   Each party agrees as follows for the benefit of the other parties and for the   equal and ratable benefit of the Holders of the Company’s Initial Securities and Exchange   Securities:      Article 1      Definitions and Incorporation by Reference   SECTION 1.01. Definitions.   “ABL Documents” means “ABL Documents” as defined in the   Intercreditor Agreement.   “ABL Priority Collateral” means “ABL Priority Collateral” as defined in   the Intercreditor Agreement.    “Acquired Indebtedness” means, with respect to any specified Person,   Indebtedness of any other Person existing at the time such other Person is merged with or   into or became a Restricted Subsidiary of such specified Person.   “Additional Assets” means: (1) any property, plant or equipment used or   useful in a Related Business; (2) the Capital Stock of a Person that becomes a Restricted   Subsidiary as a result of the acquisition of such Capital Stock by the Company or another   Restricted Subsidiary; or (3) Capital Stock constituting a minority interest in any Person   that at such time is a Restricted Subsidiary; provided, however, that any such Restricted   Subsidiary described in clause (2) or (3) above is primarily engaged in a Related   Business.   “Additional Securities” means Securities issued under this Indenture after   the Issue Date and in compliance with Section 2.13 and 4.03, it being understood that any   Securities issued in exchange for or replacement of any Initial Security issued on the   Issue Date shall not be an Additional Security, including any such Securities issued   pursuant to a Registration Rights Agreement.   “Adjusted Treasury Rate” means, with respect to any redemption date,   (i) the yield, under the heading that represents the average for the immediately preceding   week, appearing in the most recently published statistical release designated “H.15(519)”     

 

2      (or any successor publication published weekly by the Board of Governors of the Federal   Reserve System that establishes yields on actively traded United States Treasury   securities adjusted to constant maturity) under the caption “Treasury Constant Maturities”   (or similar caption), for the maturity corresponding to the Comparable Treasury Issue (if   no maturity is within three months before or after December 1, 2015, yields for the two   published maturities most closely corresponding to the Comparable Treasury Issue shall   be determined and the Adjusted Treasury Rate shall be interpolated or extrapolated from   such yields on a straight line basis, rounding to the nearest month) or (ii) if such release   (or any successor release) is not published during the week preceding the calculation date   or does not contain such yields, the rate per year equal to the semi-annual equivalent   yield to maturity of the Comparable Treasury Issue (expressed as a percentage of its   principal amount) equal to the Comparable Treasury Price for such redemption date, in   each case calculated on the third Business Day immediately preceding the redemption   date, plus 0.50%.   “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.     “Applicable Premium” means, with respect to a Security at any   redemption date, the excess of (if any) (a) the present value at such redemption date of   (1) the redemption price of such Security on December 1, 2015 (such redemption price   being described in the second paragraph of Section 5 of the Securities, exclusive of any   accrued interest) plus (2) all required remaining scheduled interest payments due on such   Security through December 1, 2015 (but excluding accrued and unpaid interest to the   redemption date), computed using a discount rate equal to the Adjusted Treasury Rate,   over (b) the principal amount of such Security on such redemption date, in each case, as   calculated by the Company or on behalf of the Company by such Person as the Company   shall designate; provided that such calculation or the correction thereof shall not be a duty   or obligation of the Trustee.   “Application Period” means the 365 days after the receipt of any Net Cash   Proceeds of any Asset Disposition.   “Asset Disposition” means any sale, lease, transfer or other disposition (or   series of related sales, leases, transfers or dispositions) by the Company or any Restricted   Subsidiary, including any such transaction by means of a merger, consolidation or similar   transaction, and including an issuance of Capital Stock by a Restricted Subsidiary (each   referred to for the purposes of this definition as a “disposition”), of:   (1) any shares of Capital Stock of a Restricted Subsidiary (other than   directors’ qualifying shares or shares required by applicable law to be held by a   Person other than the Company or a Restricted Subsidiary);     

 

3      (2) all or substantially all the assets of any division or line of business   of the Company or any Restricted Subsidiary; or   (3) any other assets of the Company or any Restricted Subsidiary   outside of the ordinary course of business of the Company or such Restricted   Subsidiary,   other than, in the case of clauses (1), (2) and (3) above, (A) a disposition by a Restricted   Subsidiary to the Company or by the Company or a Restricted Subsidiary to a Restricted   Subsidiary; (B) for purposes of Section 4.06 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 4.04 and (y) a disposition of   all or substantially all the assets of the Company in accordance with Section 5.01; (C) a   disposition of assets with a Fair Market Value of less than $5,000,000; (D) a disposition   of cash or Temporary Cash Investments; (E) the creation of a Lien (but not the sale or   other disposition of the property subject to such Lien); (F) 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; (G) disposals or   replacements of obsolete, worn out, uneconomical or surplus property or equipment; (H)   to the extent allowable under Section 1031 of the Internal Revenue Code of 1986, any   exchange of assets for like property (excluding any boot thereon) for use in a business   similar to that of the Company or any Restricted Subsidiary; provided that if any property   that is so disposed is Collateral, the Company or the applicable Restricted Subsidiary will   provide Liens on such exchanged for like property under and in accordance with this   Indenture and the Security Documents; (I) the unwinding of any Hedging Obligations; (J)   any sale and leaseback transactions permitted by this Indenture; (K) any surrender or   waiver of contract rights or the settlement, release or surrender of contract, tort or other   claims of any kind, in each case, in the ordinary course of business; (L) the licensing or   sublicensing of intellectual property or other general intangibles and licenses,   sublicenses, leases or subleases of other property, in each case, in the ordinary course of   business which do not materially interfere with the business of the Company and its   Restricted Subsidiaries; (M) the sale or discount (with or without recourse, and on   customary or commercially reasonable terms and for credit management purposes) of   accounts receivables that arose in the ordinary course of business for collection; and (N) a   disposition of property pursuant to foreclosure, condemnation or eminent domain (or   deed in lieu thereof) or any similar action; provided, however, that an amount equal to the   amount of Net Available Cash from such disposition must be applied in accordance with   Section 4.06.   “Asset Sale Proceeds Account” means one or more deposit accounts or   securities accounts under the control of the Trustee or the Noteholder Collateral Agent   holding only the proceeds of any sale or disposition of any Notes Priority Collateral.   “Attributable Debt” in respect of a Sale/Leaseback Transaction means, as   at the time of determination, the present value (discounted at the interest rate borne by the   Securities, compounded annually) of the total obligations of the lessee for rental   payments during the remaining term of the lease included in such Sale/Leaseback     

 

4      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 will 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.   “Bank Collateral Agent” means Bank of America, N.A. and any successor   under the Credit Agreement, or if there is no Credit Agreement, the “Bank Collateral   Agent” designated pursuant to the terms of the Lenders Debt.   “Bankruptcy Law” means Title 11 of the United States Code, as amended,   or any similar federal or state law for the relief of debtors.   “Board of Directors” means the board of directors of the Company or any   committee thereof duly authorized to act on behalf of such board of directors or, in the   case of a Person that is not a corporation, the group exercising the authority generally   vested in a board of directors of a corporation.   “Borrowing Base” means, on any date of determination, an amount equal   to the sum, without duplication, of:    (a) 90% of the book value of accounts receivable of the Company and its   Restricted Subsidiaries, plus    (b) 55% of the book value of inventory of the Company and its Restricted   Subsidiaries, plus    (c) the lesser of (i) $40,000,000 or (ii) the sum of (w) 85% of the net   orderly liquidation value of trucks of the Company and its Restricted Subsidiaries   as of the latest date on which the administrative agent under the Credit Agreement   has received an appraisal calculating the net orderly liquidation value of such   trucks (the “Truck Appraisal Date”), plus (x) 80% of the cost of trucks of the   Company and its Restricted Subsidiaries acquired since the Truck Appraisal Date,   minus (y) 85% of the net orderly liquidation value of trucks of the Company and   its Restricted Subsidiaries that have been sold since the Truck Appraisal Date,   minus (z) 85% of the depreciation amount applicable to trucks of the Company   and its Restricted Subsidiaries, provided that the trucks included in any   calculation under this clause (c) shall include only those trucks that are eligible to   be included in the Borrowing Base by the terms of the Credit Agreement.    For purposes of determining the ABL Cap Amount (as defined in the   Intercreditor Agreement), the Borrowing Base will be calculated by the Company     

 

5      as of the last day of the most recent fiscal quarter of the Company for which   financial statements are available and such calculations, as set forth in an   Officers’ Certificate, will be deemed to be conclusive absent manifest error.    “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. For purposes of Section 4.10, a   Capital Lease Obligation will be deemed to be secured by a Lien on the property being   leased.   “Capital Stock” of any Person means any and all shares, interests   (including partnership 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.   “Change of Control” means the occurrence of any of the following events:   (1) 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 (1)   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 the Company (for the   purposes of this clause (1), such other person shall be deemed to beneficially own   any Voting Stock of a Person (the “specified person”) held by any other person   (the “parent entity”), if such other person is the beneficial owner (as defined   above in this clause (1)), directly or indirectly, of more than 50% of the voting   power of the Voting Stock of such parent entity;   (2) the adoption of a plan relating to the liquidation or dissolution of   the Company; or   (3) the merger or consolidation of the Company with or into another   Person or the merger of another Person with or into the Company, or the sale of   all or substantially all of the assets of the Company (determined on a consolidated   basis) to another Person other than a transaction following which (A) in the case   of a merger or consolidation transaction, holders of securities that represented   100% of the Voting Stock of the Company immediately prior to such transaction   (or other securities into which such securities are converted as part of such merger   or consolidation transaction) own directly or indirectly at least a majority of the     

 

6      voting power of the Voting Stock of the surviving Person in such merger or   consolidation transaction immediately after such transaction and (B) in the case of   a sale of assets  transaction, each transferee becomes an obligor in respect of the   Securities and a Subsidiary of the transferor of such assets.   “Code” means the Internal Revenue Code of 1986, as amended.   “Collateral” means all the collateral described in (i) the Security   Documents or (ii) any security or collateral document that is an ABL Document, as the   context may require.   “Commodity Agreement” means any commodity swap or any other   similar agreement for the purposes of protecting against or managing exposure to   fluctuations in commodity prices.   “Company” means the party named as such in this Indenture until a   successor replaces it and, thereafter, means the successor and, for purposes of any   provision contained herein and required by the TIA, each other obligor on the indenture   securities.   “Comparable Treasury Issue” means the United States Treasury security   selected by the Quotation Agent as having a maturity comparable to the remaining term   of the Securities from the redemption date to December 1, 2015, that would be utilized, at   the time of selection and in accordance with customary financial practice, in pricing new   issues of corporate debt securities of a maturity most nearly equal to December 1, 2015.   “Comparable Treasury Price” means, with respect to any redemption date,   if clause (ii) of the Adjusted Treasury Rate is applicable, the average of three, or such   lesser number as is obtained by the Trustee, Reference Treasury Dealer Quotations for   such redemption date.   “Consolidated Coverage Ratio” as of any date of determination means the   ratio of (x) the aggregate amount of EBITDA for the period of the most recent four   consecutive fiscal quarters for which financial statements of the Company are available to   (y) Consolidated Interest Expense for such four fiscal quarters; provided, however, that:   (1) if the Company or any Restricted Subsidiary 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, then 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;   (2) if the Company or any Restricted Subsidiary 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     

 

7      under any revolving credit facility unless such Indebtedness has been permanently   repaid and the related commitment terminated and not replaced) on the date of the   transaction giving rise to the need to calculate the Consolidated Coverage Ratio,   then 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 Company 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 Company or any   Restricted Subsidiary shall have made any Asset Disposition, then EBITDA for   such period shall be reduced by an amount equal to the EBITDA (if positive)   directly attributable to the assets that were the subject of such Asset Disposition   for such period, or increased by an amount equal to the 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 Company or any   Restricted Subsidiary repaid, repurchased, defeased or otherwise discharged with   respect to the Company and its continuing Restricted Subsidiaries in connection   with such Asset Disposition for such period (or, if the Capital Stock of any   Restricted Subsidiary is sold, the Consolidated Interest Expense for such period   directly attributable to the Indebtedness of such Restricted Subsidiary to the   extent the Company and its continuing Restricted Subsidiaries are no longer liable   for such Indebtedness after such sale);   (4) if, since the beginning of such period, the Company or any   Restricted Subsidiary (by merger or otherwise) shall have made an Investment in   any Restricted Subsidiary (or any Person which becomes a Restricted Subsidiary)   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, then 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 or was merged with or into the   Company or any Restricted Subsidiary 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 Company or a Restricted Subsidiary during such period, then 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 had   occurred on the first day of such period.     

 

8      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 Company.  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, but if the remaining term of such Interest Rate Agreement is less than   12 months, then such Interest Rate Agreement shall only be taken into account for that   portion of the period equal to the remaining term thereof). If any Indebtedness that is   being given pro forma effect bears an interest rate at the option of the Company, the   interest rate shall be calculated by applying such optional rate chosen by the Company.    Interest on Indebtedness that may optionally be determined at an interest rate based upon   a factor of a prime or similar rate, a Eurocurrency interbank rate, or other rate, shall be   deemed to have been based upon the rate actually chosen, or, if none, then based upon   such optional rate chosen as the Company may designate.  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 to the extent that such   Indebtedness was incurred solely for working capital purposes.   “Consolidated Current Liabilities” as of the date of determination means   the aggregate amount of liabilities of the Company and its consolidated Restricted   Subsidiaries which may properly be classified as current liabilities (including taxes   accrued as estimated), on a consolidated basis, after eliminating: (1) all intercompany   items between the Company and any Restricted Subsidiary; (2) all current maturities of   long-term Indebtedness, all as determined in accordance with GAAP consistently   applied; and (3) any liabilities resulting from mark to market requirement of any   derivative security.   “Consolidated Interest Expense” means, for any period, the total interest   expense (less interest income) of the Company and its consolidated Restricted   Subsidiaries (other than non-cash interest expense attributable to convertible   indebtedness under Accounting Practices Bulletin 14-1 or any successor provision), plus,   to the extent not included in such total interest expense, and to the extent incurred by the   Company or its Restricted Subsidiaries, without duplication:   (1) interest expense attributable to Capital Lease Obligations, the   interest portion of rent expense associated with Attributable Indebtedness in   respect of the relevant lease giving rise thereto, determined as if such lease were a   capitalized lease in accordance with GAAP, and the interest component of any   deferred payment obligations;   (2) amortization of debt discount (including the amortization of   original issue discount resulting from the issuance of Indebtedness at less than   par) and debt issuance cost; provided, however, that any amortization of bond     

 

9      premium will be credited to reduce Consolidated Interest Expense unless,   pursuant to GAAP, such amortization of bond premium has otherwise reduced   Consolidated Interest Expense;   (3) capitalized interest;   (4) non-cash interest expense; provided, however, that any non-cash   interest expense or income attributable to the movement in the mark to market   valuation of Hedging Obligations or other derivative instruments pursuant to   GAAP shall be excluded from the calculation of Consolidated 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;   (7) the product of (a) all dividends accrued in respect of all   Disqualified Stock of the Company and all Preferred Stock of any Restricted   Subsidiary, in each case, held by Persons other than the Company or a Restricted   Subsidiary (other than dividends payable solely in Capital Stock (other than   Disqualified Stock) of the Company), times (b) a fraction of the numerator of   which is one and the denominator of which is one minus the effective combined   tax rate of the issuer of such Disqualified Stock or Preferred Stock (expressed as a   decimal) for such period (as estimated by the chief financial officer of the   Company 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 a Lien on the assets of)   the Company or any Restricted Subsidiary; and   (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 Company) in connection with   Indebtedness Incurred by such plan or trust.   “Consolidated Leverage Ratio” as of any date of determination means the   ratio of (x) the aggregate amount of Indebtedness of the Company and its Restricted   Subsidiaries as of such date of determination to (y) the aggregate amount of EBITDA for   the period of the most recent four consecutive fiscal quarters for which financial   statements of the Company are available; provided, however, that:   (1) if the Company or any Restricted Subsidiary 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 Leverage Ratio is   an Incurrence of Indebtedness, or both, then EBITDA and the amount of such     

 

10      Indebtedness 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;   (2) if the Company or any Restricted Subsidiary 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 the related commitment terminated and not replaced) on the date of the   transaction giving rise to the need to calculate the Consolidated Leverage Ratio,   then EBITDA and the aggregate amount of Indebtedness 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 Company 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 Company or any   Restricted Subsidiary shall have made any Asset Disposition, then EBITDA for   such period shall be reduced by an amount equal to the EBITDA (if positive)   directly attributable to the assets that were the subject of such Asset Disposition   for such period, or increased by an amount equal to the EBITDA (if negative)   directly attributable thereto for such period;   (4) if, since the beginning of such period, the Company or any   Restricted Subsidiary (by merger or otherwise) shall have made an Investment in   any Restricted Subsidiary (or any Person which becomes a Restricted Subsidiary)   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, then EBITDA   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 or was merged with or into the   Company or any Restricted Subsidiary 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 Company or a Restricted Subsidiary during such period, then EBITDA for   such period shall be calculated after giving pro forma effect thereto as if such   Asset Disposition, Investment or acquisition had 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     

 

11      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 Company.  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,   but if the remaining term of such Interest Rate Agreement is less than 12 months,   then such Interest Rate Agreement shall only be taken into account for that   portion of the period equal to the remaining term thereof). If any Indebtedness   that is being given pro forma effect bears an interest rate at the option of the   Company, the interest rate shall be calculated by applying such optional rate   chosen by the Company. Interest on Indebtedness that may optionally be   determined at an interest rate based upon a factor of a prime or similar rate, a   Eurocurrency interbank rate, or other rate, shall be deemed to have been based   upon the rate actually chosen, or, if none, then based upon such optional rate   chosen as the Company may designate. 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 to the   extent that such Indebtedness was incurred solely for working capital purposes.    “Consolidated Net Income” means, for any period, the net income of the   Company and its consolidated Subsidiaries; provided, however, that there shall not be   included in such Consolidated Net Income:   (1) any net income of any Person (other than the Company) if such   Person is not a Restricted Subsidiary, except that:   (A) subject to the exclusion contained in clause (4) below, the   Company’s equity in the net income of any such Person for such period   shall be included in such Consolidated Net Income up to the aggregate   amount of cash actually distributed by such Person during such period to   the Company or a Restricted Subsidiary 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 Company’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 (or loss) of any Person acquired by the Company   or a Subsidiary in a pooling of interests transaction (or any transaction accounted   for in a manner similar to a pooling of interests) for any period prior to the date of   such acquisition;     

 

12      (3) any net income of any Restricted Subsidiary 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, directly or   indirectly, to the Company, except that:   (A) subject to the exclusion contained in  clause (4) below, the   Company’s equity in the net income of any such Restricted Subsidiary for   such period shall be included in such Consolidated Net Income up to the   aggregate amount of cash actually distributed by such Restricted   Subsidiary during such period to the Company or another Restricted   Subsidiary as a dividend or other distribution (subject, in the case of a   dividend or other distribution paid to another Restricted Subsidiary, to the   limitation contained in this clause); and   (B) the Company’s equity in a net loss of any such Restricted   Subsidiary for such period shall be included in determining such   Consolidated Net Income;   (4) any net after-tax gain (or loss) realized upon the sale or other   disposition of any assets of the Company, 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   net after-tax gain (or loss) realized upon the sale or other disposition of any   Capital Stock of any Person;   (5) net after-tax extraordinary gains or losses and net after-tax   nonrecurring or unusual noncash gains or charges;   (6) the cumulative effect of a change in accounting principles;    (7) any net after-tax gain (or loss) attributable to the early retirement   or conversion of Indebtedness;   (8) any unrealized non-cash gains or losses or charges in respect of   Hedging Obligations (including those resulting from the application of ASC 815);   (9) any non-cash charges or other noncash expenses or charges arising   from any grant of or issuance or repricing of Capital Stock or other equity-based   awards or any amendment or substitution of any such Capital Stock or other   equity-based awards;   (10) any net after-tax gains or losses (less all fees and expenses or   charges relating thereto) attributable to the extinguishment of Indebtedness,   Hedging Obligations or other derivative instruments entered in relation to the   Indebtedness extinguished;   (11) any gain or loss resulting from mark-to-market requirement of any   derivative security, including warrants;     

 

13      (12) any net after-tax gain or loss from disposed or discontinued   operations or disposal of discontinued operations;   (13) gains and losses due solely to fluctuations in currency values and   the related tax effects according to GAAP;   (14) any expenses or reserves for liabilities to the extent that the   Company or any Restricted Subsidiary is entitled to indemnification therefor   under binding agreements; provided that any liabilities for which the Company or   such Restricted Subsidiary is not actually indemnified shall reduce Consolidated   Net Income in the period in which it is determined that the Company or such   Restricted Subsidiary will not be indemnified;   (15) any restoration to income of any contingency reserve, except to the   extent that provisions for such reserve was made out of Consolidated Net Income   accrued at any time following the Issue Date; and   (16) any charges or credits relating to the adoption of fresh start   accounting principles;   in each case, for such period.  Notwithstanding the foregoing, for the purposes of   Section 4.04 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 Company or a Restricted Subsidiary to the extent   such repurchases, repayments, redemptions, proceeds or returns increase the amount of   Restricted Payments permitted pursuant to Section 4.04(a)(3)(D).   “Consolidated Net Tangible Assets” as of any date of determination,   means the total amount of assets (less accumulated depreciation and amortization,   allowances for doubtful receivables, other applicable reserves and other properly   deductible items) as shown on the most recent consolidated balance sheet of the   Company and its consolidated Restricted Subsidiaries, determined on a consolidated   basis in accordance with GAAP, and after giving effect to purchase accounting and after   deducting therefrom Consolidated Current Liabilities and, to the extent otherwise   included, the amounts of:   (1) minority interests in consolidated Subsidiaries held by Persons   other than the Company or a Restricted Subsidiary;   (2) excess of cost over fair value of assets of businesses acquired, as   determined in good faith by the Board of Directors;   (3) any revaluation or other write-up in book value of assets   subsequent to the Issue Date as a result of a change in the method of valuation in   accordance with GAAP consistently applied;   (4) unamortized debt discount and expenses and other unamortized   deferred charges, goodwill, patents, trademarks, service marks, trade names,     

 

14      copyrights, licenses, organization or developmental expenses and other intangible   items;   (5) treasury stock;   (6) cash set apart and held in a sinking or other analogous fund   established for the purpose of redemption or other retirement of Capital Stock to   the extent such obligation is not reflected in Consolidated Current Liabilities; and   (7) Investments in and assets of Unrestricted Subsidiaries.   “Convertible Notes” means the Company’s 9.5% Convertible Notes due   2015.   “Credit Agreement” means the First Amended and Restated Loan and   Security Agreement, dated as of October 29, 2013, by and among the Company, the   subsidiaries of the Company from time to time party thereto as “Borrowers”, the   subsidiaries of the Company from time to time party thereto as “Guarantors”, the   financial institutions party thereto as “Lenders”, and Bank of America, N.A., a national   banking association, as agent for the Lenders, including any notes, guarantees, collateral   and security documents, instruments and agreements executed in connection therewith,   and, in each case, as amended, restated, amended and restated, increased, extended,   renewed, refunded, restructured, replaced (whether upon or after termination or   otherwise), refinanced, supplemented, modified or otherwise changed, in each case, in   whole or in part, and without limitation as to amount, terms, conditions, covenants and   other provisions, from time to time, with the same or different lenders or agents.   “Credit Facilities” means one or more debt facilities (including the Credit   Agreement), commercial paper facilities, securities purchase agreement, indentures or   similar agreements, in each case, with banks or other institutional lenders or investors   providing for revolving loans, term loans, receivables financings (including through sales   of receivables to lenders or to special purpose entities formed to borrow from lenders   against such receivables), letters of credit or issuances of securities, including any related   notes, guarantees, collateral documents, instruments and agreement executed in   connection therewith, and, in each case, as amended, restated, amended and restated,   increased, extended, renewed, refunded, restructured, replaced (whether upon or after   termination or otherwise), refinanced, supplemented, modified or otherwise changed, in   each case, in whole or in part, and without limitation as to amount, terms, conditions,   covenants and other provisions, from time to time, with the same or different lenders or   agents.   “Currency Agreement” means any foreign exchange contract, currency   swap agreement or other similar agreement with respect to currency values.   “Default” means any event which is, or after notice or passage of time or   both would be, an Event of Default.     

 

15      “Discharge of ABL Obligations” means (a) the indefeasible payment in   cash in full (or cash collateralization in accordance with the terms of the ABL   Documents) of all ABL Obligations (as defined in the Intercreditor Agreement) (other   than unasserted contingent obligations, including contingent reimbursement obligations   in respect of amounts that may be drawn under outstanding letters of credit), (b) the   termination of all commitments to extend credit under the ABL Documents, (c)   termination or cash collateralization (in accordance with the terms of the ABL   Documents) of all outstanding letters of credit, and (d) so long as any Notes Obligations   (as defined in the Intercreditor Agreement) remain outstanding, the delivery of a written   notice from the Bank Collateral Agent to the Noteholder Collateral Agent stating that the   events in clauses (a), (b) and (c) have occurred; provided that the Discharge of ABL   Obligations shall not be deemed to have occurred if the Company refinances or replaces   any ABL Document and such refinancing or replacement is permitted by the terms of this   Indenture and the Intercreditor Agreement.   “Disqualified Stock” means, with respect to any Person, any Capital Stock   which by its terms (or by the terms of any security into which it is convertible or for   which it is exchangeable at the option of the holder) or upon the happening of any event:   (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 certain events or otherwise, in whole or in part;   in each case on or prior to the date that is 91 days after the Stated Maturity of the   Securities; 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 date that is 91 days after the Stated   Maturity of the Securities shall not constitute Disqualified Stock if (A) 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 Securities and described   in Sections 4.06 and 4.09 and (B) any such requirement only becomes operative after   compliance with such terms applicable to the Securities, including the purchase of any   Securities tendered pursuant thereto.   “EBITDA” for any period means the sum of Consolidated Net Income,   plus the following to the extent deducted in calculating such Consolidated Net Income:   (1) all income tax expense of the Company and its consolidated   Restricted Subsidiaries; plus   (2) Consolidated Interest Expense; plus     

 

16      (3) depreciation and amortization expense of the Company and its   consolidated Restricted Subsidiaries (excluding amortization expense attributable   to a prepaid item that was paid in cash in a prior period); plus   (4) all other non-cash charges of the Company 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);   plus   (5) the amount of any restructuring charges, integration costs or other   business optimization expenses or reserves deducted (and not added back) in such   period in computing Consolidated Net Income, including any one-time costs   incurred in connection with acquisitions after the Issue Date, and costs related to   the closure and/or consolidation of facilities;   less all non-cash items of income of the Company and its consolidated Restricted   Subsidiaries (other than accruals of revenue by the Company and its consolidated   Restricted Subsidiaries in the ordinary course of business);   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 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 Restricted Subsidiary was included   in calculating Consolidated Net Income and only if a corresponding amount would be   permitted at the date of determination to be dividended to the Company by such   Restricted Subsidiary without prior approval (that has not been obtained), pursuant to the   terms of its charter and all agreements, instruments, judgments, decrees, orders, statutes,   rules and governmental regulations applicable to such Restricted Subsidiary or its   stockholders.   “Exchange Act” means the U.S. Securities Exchange Act of 1934, as   amended.   “Exchange Securities” means the debt securities of the Company issued   pursuant to this Indenture in exchange for, and in an aggregate principal amount equal to,   the Initial Securities, in compliance with the terms of the Registration Rights Agreement.   “Excluded Assets” means (a) Capital Stock of Subsidiaries of the   Company, (b) those assets that would constitute ABL Priority Collateral but as to which   the Bank Collateral Agent shall not have required a Lien (other than such forbearance by   the Bank Collateral Agent after the Discharge of ABL Obligations), (c) any trademark   applications filed in the United States Patent and Trademark Office on the basis of any   Grantor’s “intent-to-use” such trademark, provided that any such trademark application   shall automatically be included in the Collateral upon the filing of acceptable evidence of   use of such trademark, (d) Equipment (as defined in the Security Documents) and the   related accessions and proceeds owned by any Grantor that is subject to a purchase     

 

17      money Lien or a capital lease to the extent such purchase money Lien or capital lease is a   Permitted Lien if the contract or other documentation providing for such purchase money   Lien or capital lease prohibits or requires the consent of any Person other than the   applicable Grantor as a condition to the creation of any other Lien on such Equipment, (e)   any interest in (x) any real property (other than Material Real Property or As-Extracted   Collateral, each as defined in this Indenture or the Security Documents), including any   leasehold interests (other than solely to the extent required to create and perfect a security   interest in As-Extracted Collateral which is part of the ABL Priority Collateral) and (y)   real property located at 15540 S. McKinley Avenue, Lathrop, California 95330, (f) any   assets the perfection of which would require notation of a Lien on a certificate of title   (other than solely to the extent such assets are part of the ABL Priority Collateral) and (g)   Special Property (as defined below) other than (x) the right to receive any payment of   money (including Accounts, General Intangibles and Payment Intangibles, as defined in   the Uniform Commercial Code) or any other rights referred to in Sections 9-406, 9-407,   9-408, 9-409 of the Uniform Commercial Code to the extent that such Sections of the   Uniform Commercial Code are effective to limit the prohibitions or restrictions which   make such property “Special Property” and (y) any proceeds, substitutions or   replacements of any Special Property (unless such proceeds, substitutions or   replacements would constitute Special Property). “Special Property” means (i) any   contract, permit, lease, license or other general intangible held by any Grantor with   respect to which a Lien cannot be granted by the terms thereof, by any requirement of   law or without the consent of any third party or (ii) any property owned or hereafter   acquired by a Grantor that is subject to a Lien permitted by clause (8), (9), (10), (13) or   (22) of the definition of “Permitted Liens” if the contract or other documentation   providing for such Lien prohibits the granting of any other Lien on such property or   requires the consent of any third party; provided that any property which constitutes   Special Property due to a prohibition on the creation of any Lien in the relevant permit,   lease, license, contract or other agreement or by any requirement of law applicable   thereto shall constitute Special Property only to the extent and for so long as such permit,   lease, license, contract or other agreement or requirement of law applicable thereto   validly prohibits the creation of a Lien on such property in favor of the Noteholder   Collateral Agent or such permit, lease, license, contract or other agreement or   requirement of law validly requires any consent not obtained thereunder in order for the   Grantor to create a Lien thereon.   “Excluded Contribution” means the Net Cash Proceeds or Temporary   Cash Investments received by the Company from:   (a) contributions to its common equity capital, and   (b) the sale (other than to the Company or any Subsidiary of the   Company or to any management equity plan or stock option plan or any other   management or employee benefit plan or agreement of the Company or any Subsidiary of   the Company) of Qualified Capital Stock of the Company,   in each case, designated as an Excluded Contribution pursuant to an   Officers' Certificate.     

 

18      “Fair Market Value” means, with respect to any asset or property, the   price which could be negotiated in an arm’s length, free market transaction, for cash,   between a willing seller and a willing and able buyer, neither of whom is under undue   pressure or compulsion to complete the transaction.  Fair Market Value will be   determined in good faith by the senior management of the Company, or, if the Fair   Market Value is in excess of $15,000,000, by the Board of Directors, in each case, whose   determination will be conclusive; provided that, for the purposes of Section   4.04(a)(3)(D)(y), if the Fair Market Value of the Investment in the Unrestricted   Subsidiary or other Person in question is so determined to be in excess of $20,000,000,   such determination must be confirmed in writing by an Independent Qualified Party.   “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, except with respect to any   reports or financial information required to be delivered pursuant to Section 4.02,   which shall be prepared in accordance with generally accepted accounting   principles as in effect in the United States of America on the date thereof.     “Grantor” means each of the Company and each Subsidiary Guarantor.   “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     

 

19      (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.  The term “Guarantor” shall mean any Person   Guaranteeing any obligation.   “Guarantee Agreement” means a supplemental indenture to this Indenture,   in a form reasonably satisfactory to the Trustee, pursuant to which a Subsidiary   Guarantor guarantees the Company’s obligations with respect to the Securities 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 or Commodity   Agreement.   “Holder” means the Person in whose name a Security is registered on the   Registrar’s books.   “Incur” means issue, assume, Guarantee, incur or otherwise become liable   for; provided, however, that any Indebtedness of a Person existing at the time such   Person becomes a Restricted Subsidiary (whether by merger, consolidation, acquisition or   otherwise) shall be deemed to be Incurred by such Person at the time it becomes a   Restricted Subsidiary.  The term “Incurrence” when used as a noun shall have a   correlative meaning.  Solely for purposes of determining compliance with Section 4.03:   (1) the accrual of interest or dividends, the 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 the making of a   mandatory offer to purchase such Indebtedness;   (4) changes in the principal amount of any Indebtedness that is   denominated in a  currency other than U.S. dollars solely as a result of   fluctuations in exchange rates or currency values;   (5) unrealized losses or charges in respect of Hedging Obligations   (including those resulting from the application of ASC 815); and     

 

20      (6) the reclassification of any outstanding Capital Stock as   Indebtedness due to a change in accounting principles so long as such Capital   Stock was issued prior to, and not in contemplation of, such accounting change;   in each case, will be deemed not to be the Incurrence 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 any   accounts payable or other liability to trade creditors arising in the ordinary course   of business);   (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, with respect to any Preferred Stock of any Subsidiary of such Person,   the amount of such Preferred Stock to be determined in accordance with this   Indenture (but excluding, in each case, any accrued dividends);   (6) all Guarantees by such Person of obligations of the type referred to   in clauses (1) through (5) or dividends of other Persons;   (7) all obligations of the types 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 Fair Market Value of such   property or assets and the amount of the obligation so secured; and     

 

21      (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 any business, the term “Indebtedness” will exclude 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 obligations as described above; provided,   however, that in the case of Indebtedness sold at a discount, the amount of such   Indebtedness at any time will be the accreted value thereof at such time.   The amount of any Preferred Stock that has a fixed redemption, repayment   or repurchase price will be calculated in accordance with the terms of such Preferred   Stock as if such Preferred Stock were redeemed, repaid or repurchased on any date on   which the amount of such Preferred Stock is to be determined pursuant to this Indenture;   provided, however, that if such Preferred Stock could not be required to be redeemed,   repaid or repurchased at the time of such determination, the redemption, repayment or   repurchase price will be calculated as of the first date thereafter on which such Preferred   Stock could be required to be so redeemed, repaid or repurchased.  If any  Preferred   Stock does not have a fixed redemption, repayment or repurchase price, the amount of   such Preferred Stock will be its maximum liquidation value.   “Indenture” means this Indenture as amended or supplemented from time   to time.   “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.   “Intercreditor Agreement” means the Intercreditor Agreement dated as of   August 31, 2010 among the Bank Collateral Agent, the Trustee, the Noteholder Collateral   Agent, the Company and each Subsidiary Guarantor, as amended by the First   Amendment to Intercreditor Agreement, dated as of March 22, 2013, and as it may be   further amended, amended and restated, modified, supplemented, extended, renewed or   replaced from time to time (including pursuant to the Second Amendment to Intercreditor   Agreement dated as of the Issue Date) in accordance with this Indenture or other   intercreditor agreements among the Trustee, the Noteholder Collateral Agent, and an   agent for lenders providing an ABL Agreement (as defined in the Intercreditor   Agreement) from time to time, in each case, as it may be amended, modified,   supplemented, extended, renewed or replaced from time to time.     

 

22      “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 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.  If the Company or any Restricted Subsidiary   issues, sells or otherwise disposes of any Capital Stock of a Person that is a Restricted   Subsidiary such that, after giving effect thereto, such Person is no longer a Restricted   Subsidiary, any Investment by the Company or any Restricted Subsidiary in such Person   remaining after giving effect thereto will be deemed to be a new Investment at such time.    The acquisition by the Company or any Restricted Subsidiary of a Person that holds an   Investment in a third Person will be deemed to be an Investment by the Company or such   Restricted Subsidiary in such third Person at such time.  Except as otherwise provided for   herein, the amount of an Investment shall be its Fair Market Value at the time the   Investment is made and without giving effect to subsequent changes in value.     For purposes of the definition of “Unrestricted Subsidiary”, the definition   of “Restricted Payment” and Section 4.04, “Investment” shall include:   (1) 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.   “Issue Date” means November 22, 2013.   “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.   “Lenders” has the meaning specified in the Credit Agreement.   “Lenders Debt” means all Obligations and all amounts owing, due or   secured under the terms of the Credit Agreement or any related security document   (including the Hedging Obligations, cash management obligations and all other     

 

23      Obligations owed to any Lender or any affiliate thereof secured under any such related   security document), whether now existing or arising hereafter, including all principal,   premium, interest, fees, attorneys fees, costs, charges, expenses or reimbursement   obligations, obligations to post cash collateral in respect of letters of credit, cash   management services or indemnities in respect thereof, any other indemnities or   guarantees, and all other amounts payable under or secured by any Credit Agreement   security document (including, in each case, all Obligations thereunder, all cash   management services and all amounts accruing on or after the commencement of any   insolvency proceeding relating to any Grantor, or that would have accrued or become due   under the terms of the Credit Agreement or any other Credit Agreement security   document but for the effect of the insolvency proceeding and irrespective of whether a   claim for all or any portion of such amounts is allowable or allowed in such insolvency   proceeding).   “Lien” means any mortgage or deed of trust, charge, pledge, lien (statutory   or otherwise), privilege, security interest, assignment, easement, hypothecation, claim,   preference, priority or other encumbrance upon or with respect to any priority of any kind   (including any conditional sale, capital lease or other title retention agreement, any leases   in the nature thereof) real or personal, moveable or immovable, now owned or hereafter   acquired; provided, however, that in no event shall an operating lease be deemed to   constitute a Lien.  A Person will be deemed to own subject to a Lien any property which   it has acquired or holds subject to the interest of a vendor or lessor under any conditional   sale agreement, Capital Lease Obligation or other title retention agreement.   “Material Real Property” means “Material Real Property” as defined in the   Intercreditor Agreement.   “Net Available Cash” from an Asset Disposition means cash payments   and the Fair Market Value of any Temporary Cash Investments 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 (other than Temporary Cash Investments) 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, recording, engineering, environmental, accounting   and investment banking or brokerage fees, relocation expenses, title and recording   tax expenses, commissions and other fees and expenses incurred, and all Federal,   state, provincial, foreign and local taxes required to be accrued as a liability under   GAAP, as a consequence of such Asset Disposition;   (2) all payments made on any Indebtedness which 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 which   must by its terms, or in order to obtain a necessary consent to such Asset     

 

24      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 as a 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 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 will be increased by any portion   of funds in the escrow that are released to the Company or any Restricted   Subsidiary.   “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.   “Noteholder Secured Parties” means, collectively, the Trustee, the   Noteholder Collateral Agent, each Holder of the Securities and each other holder of, or   obligee in respect of, any obligations in respect of the Securities outstanding at such time.   “Notes Documents” means the Securities (including Additional   Securities), the Guarantee Agreements, this Indenture (including the Subsidiary   Guarantees), the Security Documents and the Intercreditor Agreement, and, in each case,   all agreements, instruments and documents executed and delivered pursuant to or in   connection with the foregoing.   “Notes Priority Collateral” means “Notes Priority Collateral” as defined in   the Intercreditor Agreement.   “Obligations” means, with respect to any Indebtedness, any 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, and other amounts payable pursuant to the documentation governing   such Indebtedness.     

 

25      “Offering Memorandum” means the final offering memorandum, dated   November 22, 2013, relating to the offering by the Company of the Initial Securities.   “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.   “Other Pari Passu Lien Obligations” means any Additional Securities or   any other Indebtedness or other Obligations (including Hedging Obligations) having Pari   Passu Lien Priority relative to the Securities with respect to the Collateral and that is not   secured by any other assets and, in the case of Indebtedness for borrowed money, has a   Stated Maturity that is equal to or longer than the Securities; provided that an authorized   representative of the holders of such Indebtedness (other than Additional Securities) shall   have executed a joinder to the Security Documents and the Intercreditor Agreement.   “Pari Passu Lien Priority” means, relative to specified Indebtedness,   having equal Lien priority on specified Collateral and either subject to the Intercreditor   Agreement on a substantially identical basis as the holders of such specified Indebtedness   or subject to intercreditor agreements providing holders of the Indebtedness intended to   have Pari Passu Lien Priority with substantially the same rights and obligations that the   holders of such specified Indebtedness have pursuant to the Intercreditor Agreement as to   the specified Collateral.   “Permitted Collateral Lien” means:   (1) Liens securing the Initial Securities outstanding on the Issue Date,   Refinancing Indebtedness with respect to such Initial Securities, the Guarantees   relating thereto and any obligations with respect to such Initial Securities,   Refinancing Indebtedness and the Guarantees;     (2) Liens existing on the Issue Date (other than Liens specified in   clause (1) above or securing Lenders Debt) securing obligations which are set   forth in a schedule to this Indenture;    (3) Liens described in clauses (1), (2), (3), (5), (6), (7), (9), (10), (12),   (13) (with respect to clauses (6), (9), (10) and (22) set forth therein), (14), (15),   (16), (17), (18), (19), (20), (21), (22), (24), (25), (26) and (27) of the definition of   Permitted Liens;    (4) Liens securing (a) any Other Pari Passu Lien Obligations incurred   pursuant to Section 4.03(a); provided, however, that at the time of Incurrence of   such Other Pari Passu Lien Obligations and after giving pro forma effect thereto,   the Consolidated Leverage Ratio would be no greater than 3.0 to 1.00, (b)     

 

26      obligations evidenced by Additional Securities that do not in the aggregate exceed   $75,000,000 and (c) obligations that do not in the aggregate exceed $10,000,000   at any one time outstanding; and   (5) Liens on the Notes Priority Collateral in favor of any collateral   agent relating to such collateral agent's administrative expenses with respect to the   Notes Priority Collateral.   “Permitted Investment” means an Investment by the Company or any   Restricted Subsidiary in:   (1) the Company, a Restricted Subsidiary or a Person that will, upon   the making of such Investment, become a Restricted Subsidiary; 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; 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 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 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 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 4.06 or (ii) a disposition of 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     

 

27      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 or Guarantees of Indebtedness otherwise permitted under   Section 4.03;   (12) any Person to the extent such Investment exists on the Issue Date   or is made pursuant to a binding commitment existing on the Issue Date, and any   extension, modification or renewal, replacement, refunding or refinancing 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); provided   that the amount of such Investment may be increased (a) as required by the terms   of such Investment as in existence on the Issue Date or (b) as otherwise permitted   under this Indenture;    (13) (a) any Person engaged in a Related Business (other than an   Investment in an Unrestricted Subsidiary) having an aggregate Fair Market Value,   when taken together with all other Investments made pursuant to this clause   (13)(a) that are outstanding on the date such Investment is made, do not exceed   the greater of $15,000,000 and 5% of Consolidated Net Tangible Assets at the   time of such Investment and (b) any other Person having an aggregate Fair   Market Value, when taken together with all other Investments made pursuant to   this clause (13)(b) that are outstanding on the date such Investment is made, do   not exceed the greater of $10,000,000 and 2.0% of Consolidated Net Tangible   Assets at the time of such Investment; provided that, in each case, (x) each   Investment will be valued as of the date made and without regard to subsequent   changes in value and (y) if any Investment pursuant to this clause (13) is made in   any Person that is not a Restricted Subsidiary of the Company at the date of the   making of such Investment and such Person becomes a Restricted Subsidiary of   the Company after such date, such Investment shall thereafter be deemed to have   been made pursuant to clause (1) above and shall cease to have been made   pursuant to this clause (13) for so long as such Person continues to be a Restricted   Subsidiary;     

 

28      (14) advances, loans, rebates and extensions of credit to suppliers,   customers and vendors in the ordinary course of business in an aggregate amount   not to exceed $3,000,000 at any time outstanding;   (15) deposits, prepayment and other credits to suppliers or landlords   made in the ordinary course of business, including such Investments in connection   with the entry into any new hauling arrangements contemplated as of the Issue   Date;   (16) Investments of a Restricted Subsidiary acquired after the Issue   Date or of an entity merged into the Company or merged into or consolidated with   a Restricted Subsidiary after the Issue Date, in each case, to the extent that such   Investments were not made in contemplation of or in connection with such   acquisition, merger or consolidation and were in existence on the date of such   acquisition, merger or consolidation;   (17) Investments the payment for which consists of Qualified Capital   Stock; provided that such Qualified Capital Stock will not increase the amount   available under Section 4.04(a)(3); and   (18) licensing, sublicensing or contribution of intellectual property   pursuant to joint marketing arrangements with other Persons.   For purposes of this definition, in the event that a proposed Investment (or   portion thereof) meets the criteria of more than one of the categories of Permitted   Investments described in clauses (1) through (18) above, the Company will be entitled to   classify (but not reclassify) such Investment (or portion thereof) in one or more of such   categories set forth above).   “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 pledges or 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 imposed by law or in the ordinary course of business (other   than in connection with Indebtedness), such as carriers’, warehousemen’s and   mechanics’ Liens, in each case for sums not yet due 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 contractual, 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     

 

29      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 or any Restricted Subsidiary to provide   collateral to the depository institution;   (3) Liens for taxes, assessments or governmental charges or claims 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;   (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), 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) Liens to secure Permitted Indebtedness Incurred under   Section 4.03(b)(1); provided that (a) any such Liens on Notes Priority Collateral   shall be junior relative to the Liens on the Notes Priority Collateral securing the   Securities and Subsidiary Guarantees and (b) the holder of such Lien either (x) is   subject to an intercreditor agreement consistent with the Intercreditor Agreement   on the same basis as the Lenders or (y) is or agrees to become bound by the terms   of the Intercreditor Agreement on the same basis as the Lenders;   (8) Liens existing on the Issue Date;   (9) Liens on property or shares of Capital Stock of another Person at   the time such other Person becomes a Subsidiary of such Person (other than a     

 

30      Lien 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 transactions   pursuant to which such Person becomes such a Subsidiary); 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);   (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 (other than   a Lien 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 transactions   pursuant to which such Person or any of its Subsidiaries acquired such property);   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);   (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 are permitted to be Incurred under this Indenture;    (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), (10) or clause (22) below; 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 and (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), (10) or (22) at the time the original Lien   became a Permitted Lien and (y) an amount necessary to pay any accrued but   unpaid interest, fees and expenses, including premiums, related to such   refinancing, refunding, extension, renewal or replacement;   (14) Liens Incurred to secure cash management services in the ordinary   course of business;   (15) Liens on assets pursuant to merger agreements, stock or asset   purchase agreements and similar agreements limiting the disposition of such   assets pending the closing of the transactions contemplated thereby;   (16) Liens on insurance policies and the proceeds thereof and other   deposits securing the financing of the premiums with respect thereto;     

 

31      (17) Liens on any cash earnest money deposits or installment payments   made by the Company or any Restricted Subsidiary in connection with any letter   of intent or purchase agreement;   (18) Liens upon specific items of inventory or other goods and proceeds   of any Person securing such Person’s obligations in respect of bankers’   acceptances issued or created for the account of such Person to facilitate the   purchase, shipment or storage of such inventory or other goods;   (19) Liens encumbering deposits made to secure obligations arising   from statutory, regulatory, contractual or warranty requirements of the Company   or any Restricted Subsidiary, including rights of offset and setoff;   (20) Leases, licenses, subleases and sublicenses granted to others that   do not materially interfere with the ordinary course of business of the Company or   any Restricted Subsidiary;   (21) Liens arising from filing precautionary Uniform Commercial Code   financing statements regarding leases;   (22) Liens securing Purchase Money Indebtedness; provided that (a) the   aggregate amount of Indebtedness secured by such Liens is otherwise permitted to   be Incurred under Section 4.03(b)(11) and (b) such Liens shall not extend to any   asset other than the specified asset being financed;   (23) Liens with respect to obligations that do not in the aggregate   exceed $10,000,000 at any one time outstanding;   (24) Liens encumbering reasonable customary initial deposits and   margin deposits and similar Liens attaching to brokerage accounts incurred in the   ordinary course of business and not for speculative purposes;   (25) Liens on cash, Temporary Cash Investments or other property   arising in connection with the defeasance, discharge or redemption of   Indebtedness;   (26) Liens arising out of conditional sale, title retention, consignment or   similar arrangements for the sale of goods entered into in the ordinary course of   business;   (27) Customary Liens granted in favor of a trustee (including the   Trustee) to secure fees and other amounts owing to such trustee under an   indenture or other agreement pursuant to which Indebtedness not prohibited by   this Indenture is issued (including this Indenture);   (28) Liens encumbering property or assets under construction arising   from progress or partial payments by a customer of the Company or any of its   Restricted Subsidiaries relating to such property or assets; provided that such     

 

32      Liens shall not extend to any asset other than the specified asset being   constructed; and   (29) with respect to any real property leased by the Company or any   Restricted Subsidiary, any Liens on the title of such property not created by the   Company or such Restricted Subsidiary, as applicable.   Notwithstanding the foregoing, “Permitted Liens” will not include any Lien described in   clause (6), (9), (10) or (22) above to the extent such Lien applies to any Additional Assets   acquired directly with Net Available Cash pursuant to Section 4.06.  For purposes of this   definition, the term “Indebtedness” shall be deemed to include interest on such   Indebtedness.   For purposes of determining compliance with this definition, (A) Liens need not be   Incurred solely by reference to one category of Permitted Liens described in this   definition but are permitted to be Incurred under any combination thereof and of any   other available exemption and (B) in the event that a Lien (or any portion thereof) meets   the criteria of one or more of the categories of Permitted Liens, the Company shall, in its   sole discretion, classify such Lien (or any portion thereof) in any manner that complies   with this definition.    In each case set forth above and in the definition of “Permitted Collateral Lien”,   notwithstanding any stated limitation on the assets or property that may be subject to such   Lien, a Permitted Lien or a Permitted Collateral Lien, as applicable, on a specified asset   or property or group or type of assets or property may include Liens on all improvements,   repairs, additions, attachments and accessions thereto, assets and property affixed or   appurtenant thereto, parts, replacements and substitutions therefor, and all products and   proceeds thereof, including dividends, distributions, interest and increases in respect   thereof.   “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) which 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 Security means the principal of the Security plus the   premium, if any, payable on the Security which is due or overdue or is to become due at   the relevant time.   “Purchase Money Indebtedness” means Indebtedness (including Capital   Lease Obligations) (1) consisting of the deferred purchase price of property, conditional   sale obligations, obligations under any title retention agreement, other purchase money     

 

33      obligations and obligations in respect of industrial revenue bonds or similar Indebtedness,   in each case where the maturity of such Indebtedness does not exceed the anticipated   useful life of the asset being financed, and (2) Incurred to finance the acquisition by the   Company or a Restricted Subsidiary of such asset, including additions and improvements,   in the ordinary course of business; provided, however, that any Lien arising in connection   with any such Indebtedness shall be limited to the specific asset being financed and all   improvements, repairs, additions, attachments and accessions thereto, assets and property   affixed or appurtenant thereto, parts, replacements and substitutions therefor, and all   products and proceeds thereof, including dividends, distributions, interest and increases   in respect thereof; provided further, however, that such Indebtedness is Incurred within   180 days after such acquisition of such assets.   “Qualified Capital Stock” of a Person means Capital Stock of such Person   other than Disqualified Capital Stock; provided, however, that such Capital Stock shall   not be deemed Qualified Capital Stock to the extent sold to a Subsidiary of such Person   or financed, directly or indirectly, using funds (1) borrowed from such Person or any   Subsidiary of such Person or (2) contributed, extended, guaranteed or advanced by such   Person or any Subsidiary of such Person (including, in respect of any employee stock   ownership or benefit plan).  Unless otherwise specified, Qualified Capital Stock refers to   Qualified Capital Stock of the Company.   “Qualified Equity Offering” means any issuance and sale of the   Company's common stock by the Company.  Notwithstanding the foregoing, the term   “Qualified Equity Offering” shall not include:   (1) any issuance and sale with respect to common stock registered on   Form S-4 or Form S-8;    (2) any issuance and sale to any Subsidiary of the Company; or   (3) any such public or private sale that constitutes an Excluded   Contribution.   “Quotation Agent” means the Reference Treasury Dealer selected by the   Company.   “Reference Treasury Dealer” means J.P. Morgan Securities LLC and its   successors and assigns and two other nationally recognized investment banking firms   selected by the Company that are primary U.S. Government securities dealers.   “Reference Treasury Dealer Quotations” means with respect to each   Reference Treasury Dealer and any redemption date, the average, as determined by the   Trustee, of the bid and asked prices for the Comparable Treasury Issue, expressed in each   case as a percentage of its principal amount, quoted in writing to the Trustee by such   Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day   immediately preceding such redemption date.     

 

34      “Refinance” means, in respect of any Indebtedness, to refinance, extend,   renew, refund, repay, prepay, purchase, redeem, 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 existing on the Issue Date or   Incurred in compliance with this Indenture, including Indebtedness that Refinances   Refinancing Indebtedness; provided, however, that:   (1) (a) if the Stated Maturity of the Indebtedness being Refinanced is   equal to or earlier than the Stated Maturity of the Securities, such Refinancing   Indebtedness has a Stated Maturity no earlier than the Stated Maturity of the   Indebtedness being Refinanced and (b) if the Stated Maturity of the Indebtedness   being Refinanced is later than the Stated Maturity of the Securities, the   Refinancing Indebtedness has a Stated Maturity of at least 91 days later than the   Stated Maturity of the Securities;   (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 (plus accrued and unpaid   interest and any related fees and expenses in connection with such Refinancing,   including any premium and defeasance costs and any premium paid in connection   with a tender offer for such Indebtedness) under the Indebtedness being   Refinanced; and   (4) if the Indebtedness being Refinanced is subordinated in right of   payment to the Securities, such Refinancing Indebtedness is subordinated in right   of payment to the Securities 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 or   (B) Indebtedness of the Company or a Restricted Subsidiary that Refinances   Indebtedness of an Unrestricted Subsidiary.   “Related Business” means any business in which the Company or any of   the Restricted Subsidiaries was engaged on the Issue Date and any business related,   ancillary or complementary to such business.   “Restricted Payment” with respect to any Person means:     

 

35      (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   respect of its Capital Stock 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 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, repurchase, redemption, defeasance or other   acquisition or retirement for value of any Capital Stock of the Company held by   any Person (other than by a Restricted Subsidiary) or of any Capital Stock of a   Restricted Subsidiary held by any Affiliate of the Company (other than by a   Restricted Subsidiary), 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, prior to scheduled maturity, scheduled   repayment or scheduled sinking fund payment of any Subordinated Obligations of   the Company or any Subsidiary Guarantor (other than (A) from the Company or a   Restricted Subsidiary or (B) the purchase, repurchase, redemption, defeasance or   other acquisition or retirement of Subordinated Obligations made in anticipation   of satisfying a sinking fund obligation, principal installment or final maturity, in   each case due within one year of the date of such purchase, repurchase,   redemption, defeasance or other acquisition or retirement); or   (4) the making of any Investment (other than a Permitted Investment)   in any Person.   The amount of any Restricted Payment if made otherwise than in cash will   be Fair Market Value of the assets subject thereto.   “Restricted Subsidiary” means any Subsidiary of the Company that is not   an Unrestricted Subsidiary.   “Sale/Leaseback Transaction” means an arrangement relating to property   owned by the Company or a Restricted Subsidiary on the Issue Date or thereafter   acquired by the Company or a Restricted Subsidiary whereby the Company or a   Restricted Subsidiary transfers such property to a Person (other than the Company or a   Restricted Subsidiary) and the Company or a Restricted Subsidiary leases it from such   Person.   “SEC” means the U.S. Securities and Exchange Commission.     

 

36      “Security Documents” means the security agreements, pledge agreements,   mortgages, collateral assignments, deeds of trust, deeds to secure debt and related   agreements, as amended, supplemented, restated, renewed, refunded, replaced,   restructured, repaid, refinanced or otherwise modified from time to time, creating the   security interests in and liens on the Collateral in favor of the Noteholder Collateral   Agent for the benefit of the Noteholder Secured Parties as contemplated by this   Indenture.   “Senior Indebtedness” means with respect to any Person:   (1) Indebtedness of such Person, whether outstanding on the Issue   Date or thereafter Incurred; and   (2) all other Obligations of such Person (including interest accruing on   or after the filing of any petition in bankruptcy or for reorganization relating to   such Person whether or not post-filing interest is allowed in such proceeding) in   respect of Indebtedness described in clause (1) above,   unless, in the case of clauses (1) and (2), in the instrument creating or evidencing the   same or pursuant to which the same is outstanding it is provided that such Indebtedness   or other Obligations are subordinate in right of payment to the Securities or the   Subsidiary Guarantee of such Person, as the case may be; provided, however, that Senior   Indebtedness shall not include:   (A) any obligation of such Person to the Company or any   Subsidiary of the Company;   (B) any liability for Federal, state, local or other taxes owed or   owing by such Person;   (C) any accounts payable or other liability to trade creditors   arising in the ordinary course of business;   (D) any Capital Stock;   (E) any Indebtedness or other Obligation of such Person that is   subordinate in right of payment to any other Indebtedness or other   Obligation of such Person;    (F) that portion of any Indebtedness that at the time of   Incurrence was Incurred in violation of this Indenture;    (G) any Indebtedness, which, when Incurred and without   respect to any election under Section 111(b) of Title 11, United States   Code, is without recourse to such Person;     

 

37      (H) any Indebtedness of or amounts owed by such Person for   compensation to employees or for services rendered to another Person;   and   (I) Indebtedness of such Person to a Subsidiary or any other   Affiliate or any such Affiliate’s Subsidiaries.   “Significant Subsidiary” means any Restricted Subsidiary that would be a   “Significant Subsidiary” of the Company within the meaning of Rule 1-02 under   Regulation S-X promulgated by the SEC and, for purpose of determining whether an   Event of Default has occurred, any group of Restricted Subsidiaries that combined would   be such a Significant Subsidiary.   “Specified Trucks” means each of the Trucks; provided, however, that,   prior to the Discharge of ABL Obligations, “Specified Trucks” will include only such   Trucks that are subject to a perfected first-priority Lien in favor of the Bank Collateral   Agent; provided further, however, that in no event will “Specified Trucks” include any   such Truck if the perfection of a Lien thereon in favor of the Noteholder Collateral   Agent, on behalf of and for the benefit of the Noteholder Secured Parties, would require   any recording, registration or filing other than (x) a recording, registration or filing that is   reflected on the certificate of title (or, if applicable, in the electronic title record) of such   Truck or (y) the filing of a UCC financing statement against the owner of such Truck in   the applicable jurisdiction or jurisdictions.   “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 in right of payment to the Securities or a Subsidiary   Guarantee 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. Unless otherwise specified or the   context shall otherwise require, “Subsidiary” means a Subsidiary of the Company.   “Subsidiary Guarantee” means a Guarantee by a Subsidiary Guarantor of   the Company’s obligations with respect to the Securities.     

 

38      “Subsidiary Guarantor” means each Subsidiary of the Company that   executes this Indenture as a guarantor and each other Subsidiary of the Company that   thereafter Guarantees the Securities pursuant to the terms of this Indenture, in each case,   until the Guarantee of such Person has been released in accordance with the provisions of   this Indenture.   “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 270 days 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 $50,000,000 (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 180 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 180 days   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 nine months 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 (15 U.S.C. §§ 77aaa-   77bbbb) as in effect on the Issue Date.     

 

39      “Trucks” means all ready-mix concrete trucks and the mixing drums   affixed thereto owned by the Company or any Subsidiary Guarantor.   “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 U.S. Bank National Association until a successor   replaces it and, thereafter, means the successor.   “Uniform Commercial Code” means the Uniform Commercial Code as   from time to time in effect in the State of New York.   “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 in the   manner provided below; and   (2) any Subsidiary of an Unrestricted Subsidiary.   The Board of Directors 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; provided, however, that either   (A) the Subsidiary 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 under   Section 4.04 and the final paragraph of the definition of the term “Investment”.  The   Board of Directors may designate any Unrestricted Subsidiary to be a Restricted   Subsidiary; provided, however, that immediately after giving effect to such designation   (A) the Company could Incur $1.00 of additional Indebtedness under Section 4.03(a) and   (B) no Default shall have occurred and be continuing.  Any such designation by the   Board of Directors shall be evidenced to the Trustee by promptly filing with the Trustee a   copy of the resolution of the Board of Directors giving effect to such designation and an   Officers’ Certificate certifying that such designation complied with the foregoing   provisions.   “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.   “Voting Stock” of a Person means all classes of Capital Stock 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.     

 

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

 

41      SECTION 1.02. Other Definitions.   In addition, the following terms are defined elsewhere in this Indenture, as   indicated below:      Term   Defined in   Section   “ABL Asset Disposition Offer” ............................................... 4.06(b)(4)   “Acceptable Commitment” ...................................................... 4.06(a)(5)(C)   “Affiliate Transaction” ............................................................. 4.07(a)   “Appendix” .............................................................................. 2.01   “Asset Disposition Offer” ........................................................ 4.06(a)(5)(A)   “Change of Control Offer” ....................................................... 4.09(b)   “covenant defeasance option” .................................................. 8.01(b)   “Coverage Indebtedness” ......................................................... 4.03(a)   “Credit Facility Indebtedness” ................................................. 4.03(b)(1)   “Custodian” .............................................................................. 6.01   “Event of Default” ................................................................... 6.01   “Excess ABL Proceeds” .......................................................... 4.06(b)(4)   “Excess Proceeds” ................................................................... 4.06(a)(6)   “Guaranteed Obligations” ........................................................ 10.01   “Initial Lien” ............................................................................ 4.10(a)   “Initial Securities” .................................................................... Appendix   “judgment default provision” ................................................... 6.01(9)   “legal defeasance option” ........................................................ 8.01(b)   “Non-ABL Priority Collateral” ................................................ 4.06(a)   “Paying Agent” ........................................................................ 2.03     

 

42      “Permitted Indebtedness”......................................................... 4.03(b)   “Registrar” ............................................................................... 2.03   “Registration Rights Agreement” ............................................ Appendix   “Securities” .............................................................................. Appendix   “Securities Act” ....................................................................... Appendix   “security default provision” ..................................................... 6.01(11)   “Successor Company” ............................................................. 5.01(a)(1)      SECTION 1.03. Incorporation by Reference of Trust Indenture Act.    This Indenture is subject to the mandatory provisions of the TIA which are incorporated   by reference in and made a part of this Indenture.  The following TIA terms have the   following meanings:   “Commission” means the SEC;   “indenture securities” means the Securities and the Subsidiary Guarantees;   “indenture security holder” means a Holder;   “indenture to be qualified” means this Indenture;   “indenture trustee” or “institutional trustee” means the Trustee; and   “obligor” on the indenture securities means the Company, each Subsidiary   Guarantor and any other obligor on the indenture securities.   All other TIA terms used in this Indenture that are defined by the TIA,   defined by TIA reference to another statute or defined by SEC rule have the meanings   assigned to them by such definitions.   SECTION 1.04. Rules of Construction.  Unless the context   otherwise requires:   (1) a term has the meaning assigned to it;   (2) an accounting term not otherwise defined has the meaning   assigned to it in accordance with GAAP;   (3) “or” is not exclusive;   (4) “including” means including without limitation;     

 

43      (5) words in the singular include the plural and words in the plural   include the singular;   (6) Indebtedness shall not be considered subordinate in right of   payment to any other Indebtedness solely by virtue of being unsecured, secured   with a subset of the collateral securing such other Indebtedness, secured with   different collateral, or secured with lower priority Liens, by virtue of structural   subordination, by virtue of maturity date, order of payment or order of application   of funds, or by virtue of not being guaranteed by all guarantors of such other   Indebtedness, and any subordination in right of payment must be pursuant to a   written agreement or instrument;   (7) the principal amount of any noninterest bearing or other discount   security at any date shall be the principal amount thereof that would be shown on   a balance sheet of the issuer dated such date prepared in accordance with GAAP;   (8) the principal amount of any Preferred Stock shall be (A) the   maximum liquidation value of such Preferred Stock or (B) the maximum   mandatory redemption or mandatory repurchase price with respect to such   Preferred Stock, whichever is greater; and   (9) all references to the date the Initial Securities were originally   issued shall refer to the Issue Date.   Article 2      The Securities   SECTION 2.01. Form and Dating.  Provisions relating to the Initial   Securities and the Exchange Securities are set forth in the Rule 144A/Regulation S   Appendix attached hereto (the “Appendix”) which is hereby incorporated in, and   expressly made part of, this Indenture. The Initial Securities and the Trustee’s certificate   of authentication shall be substantially in the form of Exhibit 1 to the Appendix which is   hereby incorporated in, and expressly made a part of, this Indenture.  The Exchange   Securities and the Trustee’s certificate of authentication shall be substantially in the form   of Exhibit A, which is hereby incorporated in and expressly made a part of this Indenture.    The Securities may have notations, legends or endorsements required by law, stock   exchange rule, agreements to which the Company is subject, if any, or usage (provided   that any such notation, legend or endorsement is in a form acceptable to the Company).    Each Security shall be dated the date of its authentication.  The terms of the Securities set   forth in the Appendix and Exhibit A are part of the terms of this Indenture.   SECTION 2.02. Execution and Authentication.  Two Officers shall   sign the Securities for the Company by manual or facsimile signature.     If an Officer whose signature is on a Security no longer holds that office at   the time the Trustee authenticates the Security, the Security shall be valid nevertheless.     

 

44      A Security shall not be valid until an authorized signatory of the Trustee   manually signs the certificate of authentication on the Security.  The signature shall be   conclusive evidence that the Security has been authenticated under this Indenture.   On the Issue Date, the Trustee shall authenticate and deliver $200,000,000   of 8.500% Senior Secured Notes Due 2018 and, at any time and from time to time   thereafter, the Trustee shall authenticate and deliver Securities for original issue in an   aggregate principal amount specified in such order, in each case upon a written order of   the Company signed by two Officers or by an Officer and either an Assistant Treasurer or   an Assistant Secretary of the Company.  Such order shall specify the amount of the   Securities to be authenticated and the date on which the original issue of Securities is to   be authenticated and, in the case of an issuance of Additional Securities pursuant to   Section 2.13 after the Issue Date, shall certify that such issuance is in compliance with   Section 4.03.     The Trustee may appoint an authenticating agent reasonably acceptable to   the Company to authenticate the Securities.  Unless limited by the terms of such   appointment, an authenticating agent may authenticate Securities 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 any   Registrar, Paying Agent or agent for service of notices and demands.   SECTION 2.03. Registrar and Paying Agent.  The Company shall   maintain an office or agency where Securities may be presented for registration of   transfer or for exchange (the “Registrar”) and an office or agency where Securities may   be presented for payment (the “Paying Agent”).  The Registrar shall keep a register of the   Securities and of their transfer and exchange.  The Company may have one or more co-   registrars and one or more additional paying agents.  The term “Paying Agent” includes   any additional paying agent.   The Company shall enter into an appropriate agency agreement with any   Registrar, Paying Agent or co-registrar not a party to this Indenture, which shall   incorporate the terms of the TIA.  The agreement shall implement the provisions of this   Indenture that relate to such agent.  The Company shall notify the Trustee of the name   and address of any such agent.  If the Company fails to maintain a Registrar or Paying   Agent, the Trustee shall act as such and shall be entitled to appropriate compensation   therefor pursuant to Section 7.07.  The Company or any Wholly Owned Subsidiary   incorporated or organized within The United States of America may act as Paying Agent,   Registrar, co-registrar or transfer agent.   The Company initially appoints the Trustee as Registrar and Paying Agent   in connection with the Securities.   SECTION 2.04. Paying Agent To Hold Money in Trust.  Prior to   each due date of the principal and interest on any Security, the Company shall deposit   with the Paying Agent a sum sufficient to pay such principal and interest when so   becoming due.  The Company shall require each Paying Agent (other than the Trustee) to     

 

45      agree in writing that the Paying Agent shall hold in trust for the benefit of Holders or the   Trustee all money held by the Paying Agent for the payment of principal of or interest on   the Securities and shall notify the Trustee of any default by the Company in making any   such payment.  If the Company or a Subsidiary acts as Paying Agent, it shall segregate   the money held by it as Paying Agent and hold it as a separate trust fund.  The Company   at any time may require a Paying Agent to pay all money held by it to the Trustee and to   account for any funds disbursed by the Paying Agent.  Upon complying with this Section,   the Paying Agent shall have no further liability for the money delivered to the Trustee.   SECTION 2.05. Holder Lists.  The Trustee shall preserve in as   current a form as is reasonably practicable the most recent list available to it of the names   and addresses of Holders.  If the Trustee is not the Registrar, the Company shall furnish   to the Trustee, in writing at least five 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.   SECTION 2.06. Transfer and Exchange.  The Securities shall be   issued in registered form and shall be transferable only upon the surrender of a Security   for registration of transfer.  When a Security is presented to the Registrar or a co-registrar   with a request to register a transfer, the Registrar shall register the transfer as requested if   the requirements of this Indenture and Section 8-401(a) of the Uniform Commercial Code   are met.  When Securities are presented to the Registrar or a co-registrar with a request to   exchange them for an equal principal amount of Securities of other denominations, the   Registrar shall make the exchange as requested if the same requirements are met.  To   permit registration of transfers and exchanges, the Company shall execute and the   Trustee shall authenticate Securities at the Registrar’s or co-registrar’s request.  The   Company may require payment of a sum sufficient to pay all taxes, assessments or other   governmental charges in connection with any transfer or exchange pursuant to this   Section (other than any such transfer taxes, assessments or similar governmental charge   payable upon exchange or transfer pursuant to Sections 3.06, 4.06, 4.09 and 9.05).  The   Company shall not be required to make and the Registrar need not register transfers or   exchanges of Securities selected for redemption (except, in the case of Securities to be   redeemed in part, the portion thereof not to be redeemed) or any Securities for a period of   15 days before a selection of Securities to be redeemed or 15 days before an interest   payment date.   Prior to the due presentation for registration of transfer of any Security,   the Company, the Trustee, the Paying Agent, the Registrar or any co-registrar may deem   and treat the Person in whose name a Security is registered as the absolute owner of such   Security for the purpose of receiving payment of principal of and interest on such   Security and for all other purposes whatsoever, whether or not such Security is overdue,   and none of the Company, the Trustee, the Paying Agent, the Registrar or any co-   registrar shall be affected by notice to the contrary.   All Securities issued upon any transfer or exchange pursuant to the terms   of this Indenture shall evidence the same debt and shall be entitled to the same benefits   under this Indenture as the Securities surrendered upon such transfer or exchange.     

 

46      SECTION 2.07. Replacement Securities.  If a mutilated Security is   surrendered to the Registrar or if the Holder of a Security claims that the Security has   been lost, destroyed or wrongfully taken, the Company shall issue and the Trustee shall   authenticate a replacement Security if the requirements of Section 8-405 of the Uniform   Commercial Code are met and the Holder satisfies any other reasonable requirements of   the Trustee.  If required by the Trustee or the Company, such Holder shall furnish an   indemnity bond sufficient in the judgment of the Company and the Trustee to protect the   Company, the Trustee, the Paying Agent, the Registrar and any co-registrar from any loss   which any of them may suffer if a Security is replaced.  The Company and the Trustee   may charge the Holder for their expenses in replacing a Security.   Every replacement Security is an additional Obligation of the Company.   SECTION 2.08. Outstanding Securities.  Securities outstanding at   any time are all Securities authenticated by the Trustee except for those canceled by it,   those delivered to it for cancellation and those described in this Section as not   outstanding.  A Security does not cease to be outstanding because the Company or an   Affiliate of the Company holds the Security, but in certain circumstances, Section 12.06   provides that certain Securities shall be disregarded for certain purposes.   If a Security is replaced pursuant to Section 2.07, it ceases to be   outstanding unless the Trustee and the Company receive proof satisfactory to them that   the replaced Security is held by a protected purchaser (as defined in Section 8-303 of the   Uniform Commercial Code).   If the Paying Agent segregates and holds in trust, in accordance with this   Indenture, on a redemption date or maturity date money sufficient to pay all principal and   interest payable on that date with respect to the Securities (or portions thereof) to be   redeemed or maturing, as the case may be, then on and after that date such Securities (or   portions thereof) cease to be outstanding and interest on them ceases to accrue.   SECTION 2.09. Temporary Securities.  Until definitive Securities   are ready for delivery, the Company may prepare and the Trustee shall authenticate   temporary Securities.  Temporary Securities shall be substantially in the form of   definitive Securities but may have variations that the Company considers appropriate for   temporary Securities.  Without unreasonable delay, the Company shall prepare and the   Trustee shall authenticate definitive Securities and deliver them in exchange for   temporary Securities.   SECTION 2.10. Cancellation.  The Company at any time may   deliver Securities to the Trustee for cancellation.  The Registrar and the Paying Agent   shall forward to the Trustee any Securities surrendered to them for registration of   transfer, exchange or payment.  The Trustee and no one else shall cancel and destroy   (subject to the record retention requirements of the Exchange Act) all Securities   surrendered for registration of transfer, exchange, payment or cancellation and deliver a   certificate of such destruction to the Company unless the Company directs the Trustee to     

 

47      deliver canceled Securities to the Company.  The Company may not issue new Securities   to replace Securities it has redeemed, paid or delivered to the Trustee for cancellation.   SECTION 2.11. Defaulted Interest.  If the Company defaults in a   payment of interest on the Securities, the Company shall pay defaulted interest (plus   interest on such defaulted interest to the extent lawful) in any lawful manner.  The   Company may pay the defaulted interest to the Persons who are Holders on a subsequent   special record date.  The Company shall fix or cause to be fixed any such special record   date and payment date to the reasonable satisfaction of the Trustee and shall promptly   mail to each Holder a notice that states the special record date, the payment date and the   amount of defaulted interest to be paid.   SECTION 2.12. CUSIP Numbers, ISINs, etc.  The Company in   issuing the Securities may use “CUSIP” numbers, ISINs and “Common Code” numbers   (in each case if then generally in use) and, if so, the Trustee shall use “CUSIP” numbers,   ISINs and “Common Code” numbers in notices of redemption as a convenience to   Holders; provided, however, that any such notice may state that no representation is made   as to the correctness of such numbers either as printed on the Securities or as contained in   any notice of a redemption and that reliance may be placed only on the other   identification numbers printed on the Securities, and any such redemption shall not be   affected by any defect in or omission of such numbers.  The Company shall advise the   Trustee in writing of any change in any “CUSIP” numbers, ISINs or “Common Code”   numbers applicable to the Securities.    SECTION 2.13. Issuance of Additional Securities.  After the Issue   Date, the Company shall be entitled, subject to its compliance with Section 4.03, to issue   Additional Securities under this Indenture, which Securities shall have identical terms as   the Initial Securities issued on the Issue Date, other than with respect to the date of   issuance and issue price.  All the Securities issued under this Indenture shall be treated as   a single class for all purposes of this Indenture including waivers, amendments,   redemptions and offers to purchase.   With respect to any Additional Securities, the Company shall set forth in a   resolution of the Board of Directors and an Officers’ Certificate, and, if the Company so   elects, a supplemental indenture, a copy of each of which shall be delivered to the   Trustee, the following information:   (1) the aggregate principal amount of such Additional Securities to be   authenticated and delivered pursuant to this Indenture and the provision of   Section 4.03 that the Company is relying on to issue such Additional Securities;   (2) the issue price, the issue date and the CUSIP number of such   Additional Securities; provided, however, that no Additional Securities may be   issued at a price that would cause such Additional Securities to not be fungible for   U.S. federal income tax purposes with any other Securities issued under this   Indenture; and     

 

48      (3) whether such Additional Securities shall be Initial Securities or   shall be issued in the form of Exchange Securities as set forth in Exhibit A.   Article 3      Redemption   SECTION 3.01. Notices to Trustee.  If the Company elects to   redeem Securities pursuant to Section 5 of the Securities, it shall notify the Trustee in   writing of the redemption date, the principal amount of Securities to be redeemed and the   paragraph of the Securities pursuant to which the redemption will occur.   The Company shall give each notice to the Trustee provided for in this   Section at least 60 days before the redemption date unless the Trustee consents to a   shorter period.  Such notice shall be accompanied by an Officers’ Certificate and an   Opinion of Counsel from the Company to the effect that such redemption will comply   with the conditions herein.   SECTION 3.02. Selection of Securities to Be Redeemed.  If fewer   than all the Securities are to be redeemed, the Trustee shall select Securities (a) if the   Securities are listed on any national securities exchange, in compliance with the   requirements of such exchange, (b) if the Securities are held by The Depository Trust   Company and The Depository Trust Company prescribes a method of selection, in   accordance with such procedures and (c) on a pro rata basis to the extent practicable.  The   Trustee shall make the selection from outstanding Securities not previously called for   redemption.  The Trustee may select for redemption portions of the principal of Securities   that have denominations larger than $2,000.  Securities and portions of them the Trustee   selects shall be in principal amounts of $2,000 or any greater integral multiple of $1,000   thereof.  Provisions of this Indenture that apply to Securities called for redemption also   apply to portions of Securities called for redemption.  The Trustee shall notify the   Company promptly of the Securities or portions of Securities to be redeemed.   SECTION 3.03. Notice of Redemption.  At least 30 days but not   more than 60 days before a date for redemption of Securities, the Company shall send a   notice of redemption to each Holder of Securities to be redeemed at such Holder’s   registered address, except that redemption notices may be sent more than 60 days prior to   the redemption date if the notice is issued in connection with a defeasance of the   Securities or a satisfaction and discharge of this Indenture.  Any inadvertent defect in the   notice of redemption, including an inadvertent failure to give notice, to any Holder   selected for redemption shall not impair or affect the validity of the redemption of any   other Security redeemed in accordance with provisions of this Indenture.   The notice shall identify the Securities to be redeemed and shall state:   (1) the redemption date;   (2) the redemption price;     

 

49      (3) the name and address of the Paying Agent;   (4) that Securities called for redemption must be surrendered to the   Paying Agent to collect the redemption price;   (5) if fewer than all the outstanding Securities are to be redeemed, the   identification and principal amounts of the particular Securities to be redeemed;   (6) that, unless the Company defaults in making such redemption   payment, or a condition precedent to such redemption is not satisfied, interest on   Securities (or portion thereof) called for redemption ceases to accrue on and after   the redemption date;   (7)  the “CUSIP” number, ISIN or “Common Code” number, if any,   printed on the Securities being redeemed;    (8) that no representation is made as to the correctness or accuracy of   the “CUSIP” number, ISIN, or “Common Code” number, if any, listed in such   notice or printed on the Securities; and   (8) if the notice of redemption is subject to one or more conditions   precedent as provided in Section 3.04, a statement to that effect and a description   of such condition or conditions.   At the Company’s request, the Trustee shall give the notice of redemption   in the Company’s name and at the Company’s expense.  In such event, the Company   shall provide the Trustee with the information required by this Section.   SECTION 3.04. Effect of Notice of Redemption.  Once notice of   redemption is sent, Securities called for redemption become due and payable on the   redemption date and at the redemption price stated in the notice; provided that any notice   of redemption sent in connection with a Qualified Equity Offering, other securities   offering or any other financing, or a transaction (or a series of related transactions) that   constitutes a Change of Control, may be given, at the Company’s discretion, prior to the   consummation thereof and be subject to one or more conditions precedent, including   consummation of the related Qualified Equity Offering, securities offering or other   financing or Change of Control, as applicable, in which case the Company may revoke   such notice on or prior to the specified redemption date if any such condition is not or   will not be satisfied. Unless the Company defaults in making such redemption payment   or a condition precedent to such redemption is not satisfied, interest on Securities (or   portion thereof) called for redemption ceases to accrue on and after the redemption date.   Upon surrender to the Paying Agent, such Securities shall be paid at the redemption price   stated in the notice, plus accrued interest to the redemption date (subject to the right of   Holders of record on the relevant record date to receive interest due on the related interest   payment date), and such Securities shall be canceled by the Trustee.  Failure to give   notice or any defect in the notice to any Holder shall not affect the validity of the notice   to any other Holder.       

 

50      SECTION 3.05. Deposit of Redemption Price.  Prior to the   redemption date, the Company shall deposit with the Paying Agent (or, if the Company   or a Subsidiary is the Paying Agent, shall segregate and hold in trust) money sufficient to   pay the redemption price of and accrued interest on all Securities to be redeemed on that   date other than Securities or portions of Securities called for redemption which have been   delivered by the Company to the Trustee for cancellation.   SECTION 3.06. Securities Redeemed in Part.  Upon surrender of a   Security that is redeemed in part, the Company shall execute and the Trustee shall   authenticate for the Holder (at the Company’s expense) a new Security equal in principal   amount to the unredeemed portion of the Security surrendered.   Article 4      Covenants   SECTION 4.01. Payment of Securities.  The Company shall   promptly pay the principal of and interest on the Securities on the dates and in the manner   provided in the Securities and in this Indenture.  Principal and interest shall be considered   paid on the date due if on such date the Trustee or the Paying Agent holds in accordance   with this Indenture money sufficient to pay all principal and interest then due.   The Company shall pay interest on overdue principal at the rate specified   therefor in the Securities, and it shall pay interest on overdue installments of interest at   the same rate to the extent lawful.   SECTION 4.02. SEC Reports.  So long as any Securities are   outstanding, the Company shall file with the SEC, subject to the next sentence, and   provide the Trustee and Holders with such annual and other reports (i) at any time that   the Company is subject to the reporting requirements of Sections 13 and 15(d) of the   Exchange Act, as are specified in such sections and (ii) at any other time, on Forms 10-Q   and 10-K and all current reports on Form 8-K that would be required if the Company was   at such time subject to the reporting requirements of Sections 13 and 15(d) of the   Exchange Act, in each case, such reports to be so filed and provided at the times specified   for the filings of such reports under such Sections, after giving effect to all applicable   extensions and cure periods, and containing all the information, audit reports and exhibits   required for such reports.  If, at any time, the Company is not subject to the periodic   reporting requirements of the Exchange Act for any reason, the Company shall   nevertheless continue filing the reports specified in clause (ii) of the preceding sentence   with the SEC within the time periods required, after giving effect to all applicable   extensions and cure periods, unless the SEC will not accept such a filing. The Company   agrees that it shall not take any action for the purpose of causing the SEC not to accept   such filings. If, notwithstanding the foregoing, the SEC will not accept such filings for   any reason, the Company shall post the reports specified in the preceding sentence on its   website within the time periods that would apply if the Company were required to file   those reports with the SEC, after giving effect to all applicable extensions and cure   periods.     

 

51      At any time that any of the Company’s Subsidiaries are Unrestricted   Subsidiaries, then the quarterly and annual financial information required by the   preceding paragraph shall include a reasonably detailed presentation, either on the face of   the financial statements or in the footnotes thereto, and in “Management’s Discussion and   Analysis of Financial Condition and Results of Operations,” of the financial condition   and results of operations of the Company and its Restricted Subsidiaries separate from   the financial condition and results of operations of the Unrestricted Subsidiaries of the   Company.     In addition, at any time when the Company is not subject to the reporting   requirements of Section 13 or 15(d) of the Exchange Act, the Company shall furnish to   the Holder of the Securities 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 Securities are not freely transferable under the Securities   Act. The Company also shall comply with the other provisions of TIA § 314(a).   This Section 4.02 will be deemed not to impose any duty on the Company   under the Sarbanes-Oxley Act of 2002 and the related SEC rules that would not otherwise   be applicable.   The Company shall be deemed to have furnished such reports to the   Trustee and the Holders if it has filed such reports with the SEC using the EDGAR (or   any successor) filing system and such reports are publicly available through such filing   system.   SECTION 4.03. Limitation on Indebtedness.  (a)  The Company   shall not, and shall not permit any Restricted Subsidiary to, Incur, directly or indirectly,   any Indebtedness; provided, however, that the Company or any Subsidiary Guarantor   shall be entitled to Incur Indebtedness if, on the date of such Incurrence and after giving   effect thereto on a pro forma basis, the Consolidated Coverage Ratio exceeds 2.0 to 1   (any such Indebtedness Incurred pursuant to this Section 4.03(a) being herein referred to   as “Coverage Indebtedness”).    (a) Notwithstanding Section 4.03(a), the Company and the Restricted   Subsidiaries shall be entitled to Incur any or all of the following Indebtedness (any such   Indebtedness Incurred pursuant to this Section 4.03(b) being herein referred to as   “Permitted Indebtedness”):   (1) Indebtedness Incurred by the Company or any Subsidiary   Guarantor pursuant to any Credit Facility; provided, however, that, after giving   effect to any such Incurrence, the aggregate principal amount of all Indebtedness   Incurred under this clause (1) and then outstanding does not exceed the greater of   (A) $192,500,000 and (B) the Borrowing Base at the time of Incurrence, less the   sum of all principal payments with respect to such Indebtedness pursuant to   clauses (a)(5)(A), (a)(5)(D), (b)(3)(A) and (b)(3)(C) of Section 4.06 (any such   Indebtedness Incurred pursuant to this clause (1) being herein referred to as   “Credit Facility Indebtedness”);     

 

52      (2) Indebtedness owed to and held by the Company or a Restricted   Subsidiary; provided, however, that (A) any subsequent issuance or transfer of   any Capital Stock which results in 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 or any pledge of such Indebtedness   constituting a Permitted Collateral Lien (but not foreclosure thereon)) shall be   deemed, in each case, to constitute the Incurrence of such Indebtedness by the   obligor thereon, (B) if the Company Incurs such Indebtedness owing to a   Restricted Subsidiary that is not a Subsidiary Guarantor, such Indebtedness is   expressly subordinated to the prior payment in full in cash of all obligations with   respect to the Securities and (C) if a Subsidiary Guarantor Incurs such   Indebtedness owing to a Person that is not the Company or a Subsidiary   Guarantor, such Indebtedness is expressly subordinated to the prior payment in   full in cash of all obligations of such Subsidiary Guarantor with respect to its   Subsidiary Guarantee; provided further that nothing in the foregoing clause (B) or   (C) shall prohibit the repayment of such Indebtedness at maturity or otherwise in   compliance with the terms of this Indenture;   (3) the Initial Securities and the Exchange Securities (excluding any   Additional Securities);   (4) Indebtedness outstanding on the Issue Date (other than   Indebtedness described in clause (1), (2) or (3) of this Section 4.03(b));   (5) Indebtedness of a Restricted Subsidiary Incurred and outstanding   on or prior to the date on which such Subsidiary was acquired by the Company or   by a Restricted Subsidiary or secured by a Lien on an asset acquired by the   Company or a Restricted Subsidiary (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 or such asset was so acquired); provided, however, that   on the date of such acquisition and after giving pro forma effect thereto, the   Company would have been entitled to Incur at least $1.00 of Coverage   Indebtedness pursuant to Section 4.03(a) or the Consolidated Coverage Ratio is   greater than the Consolidated Coverage Ratio immediately prior to giving effect   to such transaction;   (6) Refinancing Indebtedness in respect of any Coverage Indebtedness   or any Permitted Indebtedness Incurred pursuant to clause (3), (4), (5), this clause   (6) or (17) of this Section 4.03(b); provided, however, that to the extent such   Refinancing Indebtedness directly or indirectly Refinances Indebtedness of a   Subsidiary Incurred pursuant to clause (5), such Refinancing Indebtedness shall   be Incurred only by such Subsidiary, the Company or the Company and such   Subsidiary;   (7) Hedging Obligations incurred in the ordinary course of business   designed to manage interest rates or interest rate risk, to protect against     

 

53      fluctuations in currency exchange rates or to manage commodity prices, and not   for the purpose of speculation;   (8) obligations in respect of worker’s compensation claims, self-   insurance obligations, performance, bid and surety bonds, indemnity, judgment,   appeal, advance payment, customs, tax or other guarantees or bonds or other   similar bond, instruments or obligations and completion guarantees and   warranties provided by the Company or any Restricted Subsidiary or relating to   liabilities, obligations or guarantees Incurred in the ordinary course of business;   (9) Indebtedness arising (i) from the honoring by a bank or other   financial institution of a check, draft or similar instrument drawn against   insufficient funds in the ordinary course of business; provided, however, that such   Indebtedness is extinguished within five Business Days of its Incurrence and (ii)   in connection with endorsement of instruments for deposit in the ordinary course   of business;    (10) the Guarantee by the Company or any Subsidiary Guarantor of   Indebtedness of the Company or any Subsidiary Guarantor that was permitted to   be Incurred by another provision of this Section 4.03; provided, however, that if   the Indebtedness being guaranteed is subordinated to or pari passu with the   Securities, then the Guarantee thereof Incurred pursuant to this clause (10) shall   be subordinated or pari passu, as applicable, to the same extent as the   Indebtedness being Guaranteed;    (11) Purchase Money Indebtedness Incurred to finance the acquisition   by the Company or a Restricted Subsidiary of assets in the ordinary course of   business, 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 (11) and then   outstanding, does not exceed the greater of $40,000,000 and 5.0% of   Consolidated Net Tangible Assets at the time of Incurrence;   (12) Indemnification, adjustment of purchase price, earn-out or similar   obligations, in each case, Incurred or assumed in connection with the acquisition   or disposition of any business or assets of the Company or any Restricted   Subsidiary or Capital Stock of a Restricted Subsidiary, other than Guarantees of   Indebtedness incurred by any Person acquiring all or any portion of such business,   assets or Capital Stock for the purpose of financing any such acquisition; provided   that the maximum aggregate liability in respect of all such obligations outstanding   under this clause (12) shall at no time exceed, in the case of a disposition, the   gross proceeds actually received by the Company and the Restricted Subsidiaries   in connection with such disposition;   (13) Indebtedness of the Company or any Restricted Subsidiary   incurred in the ordinary course of business under guarantees of Indebtedness of     

 

54      suppliers, licensees, franchisees or customers in an aggregate amount not to   exceed $5,000,000 at any time outstanding;   (14) Indebtedness Incurred by the Company or any Restricted   Subsidiary consisting of obligations to pay insurance premiums in an amount not   to exceed the annual premiums in respect of such insurance premiums at any one   time outstanding;   (15) Indebtedness Incurred by the Company or any Restricted   Subsidiary related to unfunded pension fund and other employee benefit plan   obligations and liabilities to the extent they are permitted to remain unfunded   under applicable law;    (16) Indebtedness of the Company or a Restricted Subsidiary in an   aggregate principal amount which, when taken together with all other   Indebtedness of the Company outstanding on the date of such Incurrence and   incurred pursuant to this clause (16) does not exceed $10,000,000;   (17) Acquired Indebtedness of Persons that are merged into or   consolidated with the Company or any Restricted Subsidiary in accordance with   Section 5.01(a) (other than Indebtedness Incurred in connection with, or to   provide all or any portion of the funds or credit support utilized to consummate,   any such transaction or series of transactions);   (18) Indebtedness of the Issuer or any Restricted Subsidiary supported   by one or more letters of credit issued under the Credit Facility in accordance with   clause (1); provided that such Indebtedness is in a principal amount not in excess   of the stated amount of such letter(s) of credit; and   (19) Indebtedness issued by the Company or any Restricted Subsidiary   to current or former officers, directors, consultants and employees thereof, their   respective estates, spouses or former spouses, in each case, to finance the   purchase or redemption of Capital Stock of the Company or any of its   Subsidiaries permitted by Section 4.04(b)(4) in an amount not to exceed   $2,000,000 at any time outstanding.   (b) Notwithstanding the foregoing, neither the Company nor any   Subsidiary Guarantor shall Incur any Indebtedness pursuant to Section 4.03(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 Securities or the applicable Subsidiary Guarantee of such   Subsidiary Guarantor to at least the same extent as such Subordinated Obligations.   (c) For purposes of determining compliance with this Section 4.03,   (1) any Indebtedness outstanding on the Issue Date under the Credit Agreement after the   application of the net proceeds from the sale of the Securities will be treated as Incurred   on the Issue Date under clause (1) of Section 4.03(b), (2) in the event that an item of   Indebtedness (or any portion thereof) meets the criteria of more than one of the types of     

 

55      Indebtedness described above, 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 one of the above clauses,   (3) 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, in that connection, the   Company shall be entitled to treat a portion of such Indebtedness as Coverage   Indebtedness and the balance of such Indebtedness as an item or items of Permitted   Indebtedness, and (4) any Indebtedness originally classified as Incurred pursuant to one   of the clauses in Section 4.03(b) (other than Indebtedness described in clause (1) of this   Section 4.03(d)) may later be reclassified from time to time by the Company such that it   will be deemed as having been Incurred as Coverage Indebtedness pursuant to Section   4.03(a) or as Indebtedness permitted pursuant to another clause in Section 4.03(b), as   applicable, to the extent that such reclassified Indebtedness could be Incurred pursuant   thereto at the time of such reclassification.   SECTION 4.04. Limitation on Restricted Payments.  (a) The   Company shall not, and shall not permit any Restricted Subsidiary to, directly or   indirectly, make a Restricted Payment if at the time the Company or such Restricted   Subsidiary makes such Restricted Payment:   (1) a Default shall have occurred and be continuing (or would result   therefrom);   (2) the Company is not entitled to Incur an additional $1.00 of   Coverage Indebtedness under Section 4.03(a); or   (3) 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 October 1, 2013 to the end   of the most recent fiscal quarter ending at least 45 days prior to the date of   such Restricted Payment (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 or Fair Market   Value of any asset (other than cash) received by the Company either (x)   from the issuance or sale of its Qualified Capital Stock subsequent to the   Issue Date or (y) as a contribution in respect of its Qualified Capital Stock   from its shareholders subsequent to the Issue Date, but excluding in each   case any Net Cash Proceeds (1) from Excluded Contributions, (2) that are   used to redeem Securities in accordance with the third paragraph under   Section 5 of the Securities and (3) from sales to a Subsidiary of the   Company or to an employee stock ownership plan or a trust established by   the Company or any of its Subsidiaries for the benefit of their employees;   plus     

 

56      (C) the amount by which the principal amount of Indebtedness   of the Company (other than Indebtedness owing to a Subsidiary) is   reduced upon the conversion or exchange subsequent to the Issue Date of   any Indebtedness of the Company convertible or exchangeable for   Qualified Capital 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   Restricted Subsidiary from the sale of such Indebtedness (excluding Net   Cash Proceeds (i) to the extent constituting Excluded Contributions and   (ii) from sales to a Subsidiary of the Company or to an employee stock   ownership plan or 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 aggregate amount of   cash and the Fair Market Value of any asset (other than cash) received by   the Company or any Restricted Subsidiary subsequent to the Issue Date   with respect to Investments (other than Permitted Investments) made by   the Company or any Restricted Subsidiary in any Person (other than the   Company or any Restricted Subsidiary) and resulting from repurchases,   repayments or redemptions of such Investments or repayments of loans or   advances and releases of guarantees that constitute such Investments, in   each case, by any Person, and dividends or other distributions or payments   with respect to, and proceeds realized on the sale of, such Investments,   and (y) in the event that the Company redesignates an Unrestricted   Subsidiary to be a Restricted 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 (other than to the extent   the Company’s Investment in such Unrestricted Subsidiary constituted a   Permitted Investment; 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 in such Person or Unrestricted Subsidiary.   (b) The provisions of Section 4.04(a) shall not prohibit:   (1) any Restricted Payment made out of the Net Cash Proceeds of the   substantially concurrent sale of, or made by conversion or exchange for, or for   consideration consisting only of, Qualified Capital Stock of the Company or a   substantially concurrent cash capital contribution received by the Company from   its shareholders with respect to its Qualified Capital Stock; 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 the extent so used for such Restricted Payment)   shall be excluded from the calculation of amounts under Section 4.04(a)(3)(B);     

 

57      (2) any purchase, repurchase, redemption, defeasance or other   acquisition or retirement for value of Subordinated Obligations of the Company   or a Subsidiary Guarantor made by exchange for, or out of the proceeds of the   substantially concurrent Incurrence of, Indebtedness of such Person which is   permitted to be Incurred pursuant to Section 4.03; 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;   (3) the payment of any dividend, distribution or redemption of any   Capital Stock or Subordinated Indebtedness within 60 days after the date of   declaration thereof or call for redemption if, at such date of declaration or call for   redemption, such payment or redemption was permitted by the provisions of   Section 4.04(a) (the declaration of such payment will be deemed a Restricted   Payment under Section 4.04(a) as of the date of declaration and the payment itself   will be deemed to have been paid on such date of declaration and will not also be   deemed a Restricted Payment under Section 4.04(a)); provided, however, that any   Restricted Payment made in reliance on this clause (3) shall reduce the amount   available for Restricted Payments pursuant to Section 4.04(a)(3) only once;   (4) so long as no Default has occurred and is continuing the purchase,   redemption or other acquisition of shares of Capital Stock of the Company or any   of its Subsidiaries from then current or former officers, employees, directors or   consultants of the Company or any of its Subsidiaries (or permitted transferees of   such individuals), pursuant to the terms of the agreements (including employment   agreements) or plans (or amendments thereto) approved by the Board of Directors   under which such individuals purchase or sell or are granted the option to   purchase or sell, shares of such Capital Stock; provided, however, that the   aggregate amount of such Restricted Payments (excluding amounts representing   cancelation of Indebtedness) shall not exceed (a) $3,000,000 in any calendar year   (with any unused amounts being available to be used in the following calendar   year, but not in any succeeding calendar year) plus (b) the net cash proceeds of   any “key-man” life insurance policies that have not been applied to the payment   of Restricted Payments pursuant to this clause (4); provided further, however, that   such Restricted Payments shall be excluded in the calculation of the amount of   Restricted Payments;   (5) the declaration and payments of dividends on Disqualified Stock   issued pursuant to Section 4.03; provided, however, that, at the time of payment   of such dividend, no Default  shall have occurred and be continuing (or result   therefrom); provided further, however, that such dividends shall be excluded in   the calculation of the amount of Restricted Payments;   (6) repurchases, redemptions and other acquisitions and retirements of   Capital Stock (i) deemed to occur upon exercise of stock options or other similar   stock-based awards under equity plans, warrants or other Capital Stock if such   Capital Stock represents a portion of the exercise price of such options, other     

 

58      similar stock-based awards under equity plans, warrants or other Capital Stock or   (ii) in connection with a gross up for tax withholding related to such Capital   Stock; provided, however, that such Restricted Payments shall be excluded in the   calculation of the amount of Restricted Payments;    (7) cash payments in lieu of the issuance of fractional shares or upon   the purchase, redemption or other acquisition of fractional shares, including in   connection with the exercise of warrants, options or other securities convertible   into or exchangeable for Capital Stock of the Company or any share dividend,   distribution, share split, reverse share split, merger, consolidation, amalgamation   or other business combination of the Company, in each case, permitted by this   Indenture; provided, however, that any such cash payment shall not be for the   purpose of evading the limitation of this Section 4.04 (as determined in good faith   by the Board of Directors); provided further, however, that such payments shall   be excluded in the calculation of the amount of Restricted Payments;    (8) any payment, purchase, redemption, defeasance or other   acquisition or retirement of Subordinated Obligations, Disqualified Stock or   Preferred Stock of the Company or any Subsidiary Guarantor (i) from Net   Available Cash to the extent permitted under Section 4.06, but only if the   Company shall have first complied with Section 4.06 and purchased all Securities   tendered pursuant to any offer to repurchase all the Securities required thereby,   prior to purchasing, repurchasing, redeeming, defeasing or otherwise acquiring or   retiring such Subordinated Obligations, Disqualified Stock or Preferred Stock or   (ii) to the extent required by the agreement governing such Subordinated   Obligations, Disqualified Stock or Preferred Stock, following the occurrence of a   Change of Control (or other similar event described therein as a “change of   control”), but only if the Company shall have complied with Section 4.09 and   purchased all Securities tendered pursuant to the offer to repurchase all the   Securities required thereby, prior to purchasing, repurchasing, redeeming,   defeasing or otherwise acquiring or retiring such Subordinated Obligations,   Disqualified Stock or Preferred Stock; provided further, however, that such   payments, purchases, redemptions, defeasances or other acquisitions or   retirements shall be included in the calculation of the amount of Restricted   Payments;    (9) payments of intercompany subordinated Permitted Indebtedness,   the Incurrence of which was permitted under Section 4.03(b)(2); provided,   however, that no Default has occurred and is continuing or would otherwise result   therefrom; provided further, however, that such payments shall be excluded in the   calculation of the amount of Restricted Payments;   (10) any other Restricted Payment in an amount which, when taken   together with all Restricted Payments made pursuant to this clause (10), does not   exceed the greater of (i) $10,000,000 and (ii) 3.0% of the Consolidated Net   Tangible Assets; provided, however, that (A) at the time of each such Restricted   Payment, no Default shall have occurred and be continuing (or result therefrom)     

 

59      and (B) such Restricted Payment shall be included in the calculation of the   amount of Restricted Payments;   (11)  Restricted Payments in an amount that does not exceed the   amount of Excluded Contributions made since the Issue Date; provided that such   payments shall be excluded in the calculation of the amount of Restricted   Payments;   (12) the distribution, by dividend or otherwise, of shares of Capital   Stock of, or Indebtedness owed to the Company or any Restricted Subsidiary by,   Unrestricted Subsidiaries (other than Unrestricted Subsidiaries, the primary assets   of which are cash or Temporary Cash Investments); provided, however, that such   payments shall be excluded in the calculation of the amount of Restricted   Payments; and   (13) Restricted Payments in respect of the Company’s repurchase or   other acquisition or retirement of warrants existing as of the Issue Date with   respect to its Capital Stock; provided, however, that (A) the aggregate amount of   such Restricted Payments shall not exceed $15,000,000 and (B) such Restricted   Payments shall be included in the calculation of the amount of Restricted   Payments.   (c) If any Person in which an Investment is made, which Investment   constitutes a Restricted Payment when made, thereafter becomes a Restricted Subsidiary   in accordance with this Indenture, all such Investments previously made in such Person   shall no longer be counted as Restricted Payments for purposes of calculating the amount   of Restricted Payments pursuant to Section 4.04(a)(3).   SECTION 4.05. Limitation on Restrictions on Distributions from   Restricted Subsidiaries.  The Company shall not, and shall not permit any Restricted   Subsidiary to, create or otherwise cause or permit to exist or become effective any   consensual encumbrance or restriction on the ability of any Restricted Subsidiary to   (a) pay dividends or make any other distributions on its Capital Stock to the Company or   a Restricted Subsidiary or pay any Indebtedness owed to the Company (it being   understood that the priority of any Preferred Stock in receiving dividends or liquidating   distributions prior to dividends or liquidating distributions being paid on Capital Stock   shall be deemed to not be a restriction on the ability to make distributions on Capital   Stock), (b) make any loans or advances to the Company or (c) transfer any of its property   or assets to the Company, except:   (1) with respect to clauses (a), (b) and (c),   (A) any encumbrance or restriction pursuant to an agreement in   effect at or entered into on the Issue Date, including the Credit Agreement;   (B) any encumbrance or restriction with respect to a Restricted   Subsidiary pursuant to an agreement relating to any Indebtedness Incurred   by such Restricted Subsidiary on or prior to the date on which such     

 

60      Restricted Subsidiary 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;   (C) any encumbrance or restriction pursuant to an agreement   effecting a Refinancing of Indebtedness Incurred pursuant to an agreement   referred to in Section 4.05(1)(A) or (B) or this clause (C) or contained in   any amendment to an agreement referred to in Section 4.05(1)(A) or (B)   or this clause (C); provided, however, that the encumbrances and   restrictions with respect to such Restricted Subsidiary contained in any   such refinancing agreement or amendment are not materially less   favorable, taken as a whole, to the Company (as determined by the Board   of Directors in its reasonable and good faith judgment) than encumbrances   and restrictions with respect to such Restricted Subsidiary contained in   such predecessor agreements;    (D) any encumbrance or restriction with respect to a Restricted   Subsidiary imposed pursuant to an agreement entered into for the sale or   disposition of all or substantially all the Capital Stock or assets of such   Restricted Subsidiary (including by merger or consolidation) pending the   closing of such transaction;   (E) any encumbrance or restriction pursuant to applicable law,   rule, regulation or order;   (F) restrictions on cash, cash equivalents, Temporary Cash   Investments or other deposits or net worth imposed under contracts   entered into in the ordinary course of business, including such restrictions   imposed by customers or insurance, surety or bonding companies;   (G) any encumbrance or restriction with respect to a Foreign   Subsidiary entered into the ordinary course of business or pursuant to the   terms of Indebtedness that was Incurred by such Foreign Subsidiary in   compliance with the terms of this Indenture;   (H) provisions contained in any license, permit or other   accreditation with a regulatory authority entered into in the ordinary   course of business;   (I) provisions in agreements or instruments that prohibit the   payment or making of dividends or other distributions other than on a pro   rata basis;    (J) customary supermajority voting provisions and other   customary provisions with respect to the disposition or distribution of     

 

61      assets, each contained in corporate charters, bylaws, stockholders’   agreements, limited liability company agreements, partnership   agreements, joint venture agreements and other similar agreements entered   in the ordinary course of business of the Company and its Restricted   Subsidiaries; and   (K) encumbrances or restrictions existing under or by reason of   other Indebtedness (including Hedging Obligations), Disqualified Stock or   Preferred Stock permitted to be Incurred subsequent to the Issue Date   pursuant to Section 4.03 and either (1) the provisions relating to such   encumbrance or restriction contained in such Indebtedness are not   materially less favorable to the Company, taken as a whole, as determined   by the Board of Directors in good faith, than the provisions contained in   the Credit Agreement as in effect on the Issue Date or (2) any such   encumbrance or restriction contained in such Indebtedness does not   prohibit (except upon a default or an event of default thereunder) the   payment of dividends in an amount sufficient, as determined by the Board   of Directors in good faith, to make scheduled payments of cash interest on   the Securities when due;    (2) with respect to clause (c) only,   (A) any encumbrance or restriction consisting of customary   nonassignment provisions in leases, licenses or similar agreements to the   extent such provisions restrict the transfer of the lease, license or similar   agreement or the property subject thereto;   (B) any encumbrance or restriction contained in security   agreements or mortgages securing Indebtedness of a Restricted Subsidiary   to the extent such encumbrance or restriction restricts the transfer of the   property subject to such security agreements or mortgages;   (C) pursuant to customary provisions restricting dispositions of   real property interests set forth in any reciprocal easement agreements of   the Company or any Restricted Subsidiary; and   (D) encumbrances and restrictions contained in contracts   entered into in the ordinary course of business not relating to any   Indebtedness, and that do not, individually or in the aggregate, detract   from the value, property or assets of the Company or any Restricted   Subsidiary in any manner material to the Company and its Restricted   Subsidiaries taken as a whole.   (3) In each case set forth above, notwithstanding any stated limitation   on the assets or property that may be subject to such encumbrance or restriction,   an encumbrance or restriction on a specified asset or property or group or type of   assets or property may also apply to all improvements, repairs, additions,     

 

62      attachments and accessions thereto, assets and property affixed or appurtenant   thereto, parts, replacements and substitutions therefor, and all products and   proceeds thereof, including dividends, distributions, interest and increases in   respect thereof.   SECTION 4.06. Limitation on Sales of Assets and Subsidiary Stock.    (a)  The Company shall not, and shall not permit any Restricted Subsidiary to, directly or   indirectly, consummate any Asset Disposition of any assets that do not constitute ABL   Priority Collateral (“Non-ABL Priority Collateral”) unless:   (1) 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 other   assets subject to such Asset Disposition;   (2) at least 75% of the consideration thereof received by the Company   or such Restricted Subsidiary is in the form of cash or Temporary Cash   Investments;   (3) without limitation of the provisions described under Section 4.15,   to the extent that any consideration received by the Company or any Restricted   Subsidiary from such Asset Disposition consists of assets that constitute Notes   Priority Collateral, such assets, including any such assets of any Person that   becomes a Subsidiary Guarantor as a result of such transaction, are concurrently   with their acquisition added to the Notes Priority Collateral;   (4) the Net Available Cash from any such Asset Disposition of Notes   Priority Collateral is either (i) paid directly by the purchaser thereof to the   Noteholder Collateral Agent to be held in trust in the Asset Sale Proceeds   Account or (ii) deposited to the Asset Sale Proceeds Account within five Business   Days after receipt thereof, in each case, for application in accordance with this   Section 4.06;   (5) an amount equal to 100% of the Net Available Cash from such   Asset Disposition is applied by the Company (or such Restricted Subsidiary, as   the case may be) within 365 days of the receipt of such Net Available Cash:   (A)  to make one or more offers to the Holders (and, at the   option of the Company, the holders of Other Pari Passu Lien Obligations)   to purchase Securities (and such Other Pari Passu Lien Obligations)   pursuant to and subject to the conditions contained in this Indenture (each,   an “Asset Disposition Offer”); provided, however, that in connection with   any prepayment, repayment or purchase of Indebtedness pursuant to this   clause (A), the Company or such Restricted Subsidiary shall permanently   retire such Indebtedness and shall cause the related loan commitment (if   any) to be permanently reduced in an amount equal to the principal   amount so prepaid, repaid or purchased; provided further that if the     

 

63      Company or such Restricted Subsidiary shall so reduce any Other Pari   Passu Lien Obligations, the Company will equally and ratably reduce   Indebtedness under the Securities by making an offer to all Holders to   purchase at a purchase price equal to 100% of the principal amount   thereof, plus accrued and unpaid interest, if any, the pro rata principal   amount of the Securities, such offer to be conducted in accordance with   the procedures set forth below for an Asset Disposition Offer but without   any further limitation in amount; or   (B) to the extent such Net Available Cash is from Asset   Dispositions of Collateral deemed to be an Excluded Asset, to reduce   Indebtedness of a Restricted Subsidiary that is not a Subsidiary Guarantor;   provided, however, that in connection with any prepayment, repayment or   purchase of Indebtedness pursuant to this clause (B), such Restricted   Subsidiary shall permanently retire such Indebtedness and shall cause the   related loan commitment (if any) to be permanently reduced in an amount   equal to the principal amount so prepaid, repaid, purchased or otherwise   retired,   (C) to the extent the Company elects, to acquire Additional   Assets within 365 days of the receipt of such Net Available Cash;   provided that, without limitation of the provisions of Section 4.15, any   such Additional Assets, including the assets of any Person that becomes a   Subsidiary Guarantor as a result of such transactions acquired with Net   Available Cash from an Asset Disposition of Notes Priority Collateral are   concurrently with their acquisition added to the Notes Priority Collateral;   provided further that, in the case of this clause (C), a binding commitment   shall be treated as a permitted application of the Net Available Cash from   the date of such commitment so long as the Company or such Restricted   Subsidiary enters into such commitment with the good faith expectation   that such Net Available Cash will be applied to satisfy such commitment   within 180 days of such commitment (an “Acceptable Commitment”) and   if any Acceptable Commitment is later cancelled or terminated for any   reason before such Net Available Cash is applied, then such Net Available   Cash shall constitute Excess Proceeds; or   (D) a combination of the foregoing,   in each case of (A) and (B), other than Indebtedness owed to the Company   or an Affiliate of the Company; and   (6) Any Net Available Cash from the Asset Dispositions covered by   this Section 4.06(a) that is not invested or applied, or committed to be invested or   applied, as provided in Section 4.06(a)(5) will be deemed to constitute “Excess   Proceeds”. When the aggregate amount of Excess Proceeds exceeds $15,000,000,   within 30 days thereof, the Company shall make an Asset Disposition Offer to all   Holders, and, if required by the terms of any Other Pari Passu Lien Obligations, to     

 

64      the holders of such Other Pari Passu Lien Obligations, to purchase the maximum   aggregate principal amount of the Securities and any such Other Pari Passu Lien   Obligations that may be purchased out of the Excess Proceeds at an offer price in   cash in an amount equal to 100% of the principal amount of the Securities and   Other Pari Passu Lien Obligations, in each case, plus accrued and unpaid interest,   if any, to, but not including, the date of purchase, subject to, without duplication,   the right of Holders of record on the relevant record date to receive interest due on   the relevant interest payment date, in accordance with the procedures set forth in   this Indenture or the agreements governing the Other Pari Passu Lien Obligations,   as applicable, and, with respect to the Securities, in minimum denominations of   $2,000 and in integral multiples of $1,000 in excess thereof. The Company will   commence an Asset Disposition Offer with respect to Excess Proceeds within 30   days after the date that Excess Proceeds exceed $15,000,000 by providing the   notice required pursuant to the terms of this Indenture, with a copy to the Trustee.   The Company may satisfy the foregoing obligation with respect to such Net   Available Cash from an Asset Disposition by making an Asset Disposition Offer   with respect to such Net Available Cash prior to the expiration of the Application   Period.   To the extent that the aggregate amount of Securities and such Other Pari   Passu Lien Obligations so validly tendered and not properly withdrawn pursuant to an   Asset Disposition Offer is less than the Excess Proceeds, the Company may use any   remaining Excess Proceeds for any purpose not otherwise prohibited by this Indenture. If   the aggregate principal amount of Securities or Other Pari Passu Lien Obligations   surrendered in any Asset Disposition Offer by Holders and holders or lenders of Other   Pari Passu Lien Obligations exceeds the amount of Excess Proceeds, the Company shall   select the Securities and such Other Pari Passu Lien Obligations to be purchased on a pro   rata basis based on the principal amounts tendered or required to be prepaid or redeemed;   provided that no Securities or Other Pari Passu Lien Obligations shall be selected and   purchased in an unauthorized denomination. Upon completion of any Asset Disposition   Offer, the amount of Excess Proceeds shall be reset at zero. After the Company or any   Restricted Subsidiary has applied the Net Available Cash from any Asset Disposition   covered by this clause (a) as provided in, and within the time periods required by, this   clause (a), the balance of such Net Available Cash, if any, from such Asset Disposition   shall be released by the Noteholder Collateral Agent to the Company or such Restricted   Subsidiary for use by Company or such Restricted Subsidiary for any purpose not   prohibited by the terms of this Indenture.   (b) The Company shall not, and shall not permit any Restricted   Subsidiary to, make any Asset Disposition of any ABL Priority Collateral, unless:   (1) 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 other   assets subject to such Asset Disposition;     

 

65      (2) at least 75% of the consideration thereof received by the Company   or such Restricted Subsidiary is in the form of cash or Temporary Cash   Investments; and   (3) an amount equal to 100% of the Net Available Cash from such   Asset Disposition is applied by the Company (or such Restricted Subsidiary, as   the case may be) within 365 days of the receipt of such Net Available Cash   (A) to permanently reduce any Indebtedness under the Credit   Agreement or any other Indebtedness of the Company or a Subsidiary   Guarantor that, in each case, is secured by a Lien on the ABL Priority   Collateral that is prior to the Lien on the ABL Priority Collateral in favor   of Holders (and, in the case of revolving obligations, to correspondingly   reduce commitments with respect thereto), in each case other than   Indebtedness owed to the Company or a Subsidiary of the Company,   (B) to acquire Additional Assets in a manner and within the   time limitation set forth in clause (a)(5)(C) above; or   (C) a combination of the foregoing;   provided that, in the case of clause (b)(3)(B) above, an Acceptable   Commitment shall be treated as a permitted application of the Net   Available Cash from the date of such commitment; provided further that if   any Acceptable Commitment is later cancelled or terminated for any   reason before such Net Available Cash is applied, then such Net Available   Cash shall constitute Excess ABL Proceeds (as defined below).   (4) Any Net Available Cash from an Asset Disposition covered by this   Section 4.06(b) that is not invested or applied, or committed to be invested or   applied, as provided in Section 4.06(b)(3) will be deemed to constitute “Excess   ABL Proceeds”. When the aggregate amount of Excess ABL Proceeds exceeds   $15,000,000, within 30 days thereof, the Company shall make an offer (an “ABL   Asset Disposition Offer”) to all Holders, and, if required by the terms of any   Other Pari Passu Lien Obligations to the holders of such Other Pari Passu Lien   Obligations, to purchase the maximum aggregate principal amount of the   Securities and any such Other Pari Passu Lien Obligations, that may be purchased   out of the Excess ABL Proceeds at an offer price in cash in an amount equal to   100% of the principal amount of the Securities and Other Pari Passu Lien   Obligations, in each case, plus accrued and unpaid interest, if any, to, but not   including, the date of purchase, subject to, without duplication, the right of   Holders of record on the relevant record date to receive interest due on the   relevant interest payment date, in accordance with the procedures set forth in this   Indenture or the agreements governing the Other Pari Passu Lien Obligations, as   applicable, and, with respect to the Securities, in minimum denominations of   $2,000 and in integral multiples of $1,000 in excess thereof. The Company shall   commence an ABL Asset Disposition Offer with respect to Excess ABL Proceeds     

 

66      within 30 days after the date that Excess ABL Proceeds exceed $15,000,000 by   providing the notice required pursuant to the terms of this Indenture, with a copy   to the Trustee. The Company may satisfy the foregoing obligation with respect to   such Net Available Cash from an Asset Disposition by making an ABL Asset   Disposition Offer with respect to such Net Available Cash prior to the expiration   of the Application Period.   To the extent that the aggregate amount of the Securities and such Other   Pari Passu Lien Obligations so validly tendered and not properly withdrawn pursuant to   an ABL Asset Disposition Offer is less than the Excess ABL Proceeds, the Company   may use any remaining Excess ABL Proceeds for any purpose not otherwise prohibited   by this Indenture. If the aggregate principal amount of the Securities or Other Pari Passu   Lien Obligations surrendered in any ABL Asset Disposition Offer by the Holders and   holders or lenders of Other Pari Passu Lien Obligations exceeds the amount of Excess   ABL Proceeds, the Company shall select the Securities and such Other Pari Passu Lien   Obligations to be purchased on a pro rata basis based on the principal amounts tendered   or required to be prepaid or redeemed; provided that no Securities or Other Pari Passu   Lien Obligations will be selected and purchased in an unauthorized denomination. Upon   completion of any such ABL Asset Disposition Offer, the amount of Excess ABL   Proceeds shall be reset at zero.   (c) For the purposes of this Section 4.06, any sale by the Company or   a Restricted Subsidiary of the Capital Stock of a Restricted Subsidiary that owns assets   constituting Non-ABL Priority Collateral or ABL Priority Collateral shall be deemed to   be a sale of such Non-ABL Priority Collateral or ABL Priority Collateral (or, in the event   of a Restricted Subsidiary that owns assets that include any combination of Non-ABL   Priority Collateral and ABL Priority Collateral, a separate sale of each of such Non-ABL   Priority Collateral and ABL Priority Collateral). In the event of any such sale (or a sale of   assets that includes any combination of Non-ABL Priority Collateral and ABL Priority   Collateral), the proceeds received by the Company and the Restricted Subsidiaries in   respect of such sale shall be allocated to the Non-ABL Priority Collateral and ABL   Priority Collateral pursuant to Section 4.1 of the Intercreditor Agreement.   (d) 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 Securities pursuant to this Section 4.06.    To the extent that the provisions of any securities laws or regulations conflict with   provisions of this Section 4.06, the Company shall comply with the applicable securities   laws and regulations and shall not be deemed to have breached its obligations under this   Section 4.06 by virtue of its compliance with such securities laws or regulations.   (e) In the event of the transfer of substantially all (but not all) of the   assets of the Company and the Restricted Subsidiaries as an entirety to a Person in   accordance with this Indenture, the successor shall be deemed to have sold for cash at   Fair Market Value the assets of the Company and the Restricted Subsidiaries not so   transferred for purposes of this Section 4.06, and shall comply with the provisions of this     

 

67      Section 4.06 with respect to such deemed sale as if it were an Asset Disposition (with   such Fair Market Value being deemed to be Net Available Cash for such purpose).   (f) Pending application of Net Available Cash pursuant to this Section   4.06, such Net Available Cash may be invested in Temporary Cash Investments or   applied to temporarily reduce revolving credit indebtedness. For the purposes of   Section 4.06(a)(2) and (b)(2), the following are deemed to be Temporary Cash   Investments: (1) the assumption or discharge of senior secured Indebtedness of the   Company or any Subsidiary Guarantor (other than obligations in respect of Disqualified   Stock of the Company or Preferred Stock of a Subsidiary Guarantor) or any Indebtedness   or Preferred Stock of a Restricted Subsidiary that is not a Subsidiary Guarantor and the   release of the Company or such Restricted Subsidiary from all liability on such   Indebtedness in connection with such Asset Disposition; (2) any securities or other   obligations received by the Company or any Restricted Subsidiary from the transferee   that are converted by the Company or such Restricted Subsidiary into cash within 90 days   after such Asset Disposition, to the extent of the cash received in that conversion; and (3)   the Fair Market Value of (i) any assets (other than securities) received by the Company or   any Restricted Subsidiary to be used by it in the Related Business, (ii) Capital Stock in a   Person that is a Restricted Subsidiary or in a Person engaged in the Related Business that   shall become a Restricted Subsidiary immediately upon the acquisition of such Person by   the Company or any Restricted Subsidiary or (iii) a combination of (i) and (ii).   (g) All references herein to “Net Available Cash”, “Excess Proceeds”   and “Excess ABL Proceeds” shall be deemed to mean cash in an amount equal to the   amount of Net Available Cash, Excess Proceeds or Excess ABL Proceeds, as applicable,   but, except in the case of any Net Available Cash from any Asset Disposition of Notes   Priority Collateral (which shall be paid or deposited pursuant to clause (a)(4) above), not   necessarily the actual cash received from the relevant Asset Disposition. The Company   and its Subsidiaries shall have no obligation to segregate, trace or otherwise identify Net   Available Cash, Excess Proceeds or ABL Excess Proceeds (other than the amount thereof   and pursuant to clause (a)(4) above), it being agreed that cash is fungible and that the   Company’s obligations under this Section 4.06 may be satisfied by the application of   funds from other sources.   SECTION 4.07. Limitation on Affiliate Transactions.  (a)  The   Company shall not, and shall not permit any Restricted Subsidiary to, enter into or permit   to exist any transaction (including the purchase, sale, lease or exchange of any property,   employee compensation arrangements or the rendering of any service) with (which term,   for purposes of this Section 4.07, shall include “for the benefit of” where appropriate in   the context) any Affiliate of the Company (an “Affiliate Transaction”) unless:   (1)  the terms of the Affiliate Transaction are not materially less   favorable to the Company or such Restricted Subsidiary than those that could   reasonably be expected to be obtained at the time of the Affiliate Transaction in   arm’s-length dealings with a Person who is not an Affiliate;     

 

68      (2) if such Affiliate Transaction involves an amount in excess of   $10,000,000, the terms of the Affiliate Transaction are set forth in writing and a   majority of the non-employee directors of the Company disinterested with respect   to such Affiliate Transaction have determined in good faith that the criteria set   forth in clause (1) are satisfied and have approved the relevant Affiliate   Transaction as evidenced by a resolution of the Board of Directors; and   (3) if such Affiliate Transaction involves an amount in excess of   $20,000,000, the Board of Directors 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 materially 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 4.07(a) shall not prohibit:   (1)  (i) any Restricted Payment permitted to be made pursuant to   Section 4.04 or any Permitted Investment and (ii) any Permitted Lien;    (2) any employment agreement or other employment compensation   plan in existence on the Issue Date or entered into thereafter in the ordinary   course of business, including 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;    (3) reasonable compensation (including bonuses) and other benefits   (including retirement, health, stock option and other benefit plans),   indemnification arrangements, employment and severance agreements provided   on behalf of directors, officers and employees of the Company or its Restricted   Subsidiaries, in each case, approved by the Board of Directors or, in the case of   indemnification arrangements, consistent with applicable charter, by-law or   statutory provisions;   (4) any transaction with the Company, a Restricted Subsidiary or joint   venture or similar entity that would constitute an Affiliate Transaction solely   because the Company or a Restricted Subsidiary owns an equity interest in or   otherwise controls such Restricted Subsidiary, joint venture or similar entity;   (5) the issuance or sale of any Capital Stock (other than Disqualified   Stock) of the Company;   (6) transactions with customers, clients, vendors, suppliers or other   purchasers or sellers of goods or services, in each case in the ordinary course of   business (including pursuant to joint venture agreements);     

 

69      (7) any transaction on arm’s length terms with any non-Affiliate that   becomes an Affiliate as a result of such transaction;   (8) any agreement as in effect on the Issue Date and described in the   Offering Memorandum or any renewals or extensions of any such agreement (so   long as such renewals or extensions, taken as a whole, are not materially less   favorable to the Company or the Restricted Subsidiaries) and the transactions   evidenced thereby; and   (9) reasonable advances to or reimbursements of employees for   moving expenses, travel expenses and similar expenditures, in each case, in the   ordinary course of business of the Company or any of its Restricted Subsidiaries.   SECTION 4.08. Limitation on Line of Business.  The Company   shall not, and shall not permit any Restricted Subsidiary, to engage in any business other   than a Related Business, except to such extent as would not be material to the Company   and its Restricted Subsidiaries as a whole.   SECTION 4.09. 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 Securities at a purchase price in cash equal to 101% of the   principal amount thereof on the date of repurchase 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), in accordance   with the terms contemplated in Section 4.09(b).     (a) Within 30 days following any Change of Control unless the   Company has previously or concurrently mailed a redemption notice with respect to all   outstanding Securities as described under Section 3.03, the Company shall send a notice   to each Holder with a copy to the Trustee (the “Change of Control Offer”) stating:   (1) that a Change of Control has occurred and that such Holder has the   right to require the Company to purchase such Holder’s Securities 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);   (2) the circumstances and relevant facts regarding such Change of   Control (including information with respect to pro forma historical income, cash   flow and capitalization, in each case after giving effect to such Change of   Control);   (3) the purchase date (which shall be no earlier than 30 days nor later   than 60 days from the date such notice is sent);      

 

70      (4) if such notice is delivered prior to the occurrence of a Change of   Control, stating that the Change of Control Offer is conditional on the occurrence   of such Change of Control, and, if applicable, stating that, in the Company’s   discretion, the purchase date may be delayed until such time as any or all such   conditions shall be satisfied, or that such purchase may not occur and such notice   may be rescinded in the event that any or all such conditions shall not have been   satisfied by the purchase date, or by the purchase date as so delayed; and   (5) the instructions, as determined by the Company, consistent with   this Section, that a Holder must follow in order to have its Securities purchased.   (b) Holders electing to have a Security purchased will be required to   surrender the Security, 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 will 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   of the Security which was delivered for purchase by the Holder and a statement that such   Holder is withdrawing its election to have such Security purchased.   (c) On the purchase date, all Securities purchased by the Company   under this Section 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.   (d) In the event a Change of Control occurs at a time when the   Company is prohibited by the terms of the Credit Agreement from making a Change of   Control Offer or from purchasing the Securities pursuant thereto, prior to providing the   notice to Holders described in Section 4.09(b), but in any event within 30 days following   any Change of Control, the Company shall:    (1) repay in full all Indebtedness outstanding under the Credit Agreement and terminate all commitments thereunder or offer to repay in full all such Indebtedness and repay the indebtedness of each lender who has accepted such offer (and terminate such lender’s commitment); or   (2) obtain the requisite consent under the Credit Agreement to permit the purchase of the Securities as described above.   The Company must first comply with the first sentence of this Section   4.09(e) before it shall be required to purchase Securities in the event of a Change of   Control; provided, however, that the Company’s failure to comply with the first sentence   of this Section 4.09(e) or to make a Change of Control Offer because of any such failure   shall constitute a default described in Section 6.01(4) (and not under Section 6.01(2)).   (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     

 

71      this Indenture applicable to a Change of Control Offer made by the Company and   purchases all Securities validly tendered and not withdrawn under such Change of   Control Offer.  A Change of Control Offer may be made in advance of a Change of   Control, and may be conditional upon such Change of Control if a definitive agreement is   in place for the Change of Control at the time of making of the Change of Control Offer.   (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 Securities pursuant to this Section.  To   the extent that the provisions of any securities laws or regulations conflict with the   provisions of this Section, the Company shall comply with the applicable securities laws   and regulations and shall be deemed not to have breached its obligations under this   Section by virtue of its compliance with such securities laws or regulations.   SECTION 4.10. Limitation on Liens.  (a) The Company shall not,   and shall not permit any Restricted Subsidiary to, Incur or permit to exist any Lien (the   “Initial Lien”) of any nature whatsoever on any of its properties (including Capital Stock   of a Restricted Subsidiary), whether owned at the Issue Date or thereafter acquired,   securing any Indebtedness, other than:   (1) in the case of the Notes Priority Collateral, any Initial Lien if (i)   such Initial Lien expressly ranks junior to the first-priority Lien intended to be   created in favor of the Noteholder Collateral Agent for the benefit of the Trustee,   the Noteholder Collateral Agent and the Holders, provided that the terms of such   junior interest will be no more favorable to the beneficiaries thereof than the   terms contained in the Intercreditor Agreement, or (ii) such Initial Lien is a   Permitted Collateral Lien;   (2) in the case of the ABL Priority Collateral, any Initial Lien if (i) the   Securities and the Subsidiary Guarantees are equally and ratably secured on a   second-priority basis by such ABL Priority Collateral until such time as such   Initial Lien is released or (ii) such Initial Lien is a Permitted Lien; and   (3) in the case of any other asset or property, any Initial Lien if (i) the   Securities and the Subsidiary Guarantees are equally and ratably secured with (or   on a senior basis to, in the case such Initial Lien secures any Subordinated   Obligation) the obligations secured by such Initial Lien or (ii) such Initial Lien is   a Permitted Lien.   (b) Any such Lien thereby created securing the Securities or any   Subsidiary Guarantee pursuant to clause (a)(2) or (3) of this Section shall be   automatically and unconditionally released and discharged upon (i) the release and   discharge of each Initial Lien to which it relates, (ii) in the case of such Lien securing any   such Subsidiary Guarantee, upon the termination and discharge of such Subsidiary   Guarantee in accordance with the terms of this Indenture or (iii) any sale, exchange or   transfer to any Person not an Affiliate of the Company of the property or assets secured   by such Initial Lien, in each case, which release and discharge in the case of any sale of     

 

72      any asset or property shall not affect any Lien that the Noteholder Collateral Agent may   have on the proceeds from such sale.   (c) Any reference to a “Permitted Collateral Lien” or a “Permitted   Lien” is not intended to subordinate or postpone, and shall not be interpreted as   subordinating or postponing, or as any agreement to subordinate or postpone, any Lien in   favor of the Noteholder Collateral Agent in respect of the Notes Priority Collateral or the   ABL Priority Collateral.   SECTION 4.11. Limitation on Sale/Leaseback Transactions.  The   Company shall not, and shall not permit any Restricted Subsidiary to, enter into any   Sale/Leaseback Transaction with respect to any property unless (a) the Company or such   Restricted Subsidiary would be entitled to (1) Incur Indebtedness in an amount equal to   the Attributable Debt with respect to such Sale/Leaseback Transaction pursuant to   Section 4.03 and (2) (i) in the case of a Sale/Leaseback Transaction involving Notes   Priority Collateral, create a Permitted Collateral Lien on such Notes Priority Collateral   securing such Attributable Debt or (ii) in the case of a Sale/Leaseback Transaction   involving ABL Priority Collateral or any other property or asset, create a Permitted Lien   on such ABL Priority Collateral, property or asset, as applicable, securing such   Attributable Debt, (b) the net proceeds received by the Company or any Restricted   Subsidiary in connection with such Sale/Leaseback Transaction are at least equal to the   Fair Market Value of such property and (c) the Company applies the proceeds of such   transaction in compliance with Section 4.06.   SECTION 4.12. Future Subsidiary Guarantors.  The Company shall   cause each Restricted Subsidiary that enters into a Guarantee of any Indebtedness of the   Company or any Restricted Subsidiary (other than a Foreign Subsidiary that Guarantees   only Indebtedness Incurred by another Foreign Subsidiary) to execute and deliver to the   Trustee a Guarantee Agreement pursuant to which such Restricted Subsidiary will   Guarantee payment of the Securities on a senior secured basis on the same terms and   conditions as those set forth in Article 10 of this Indenture and applicable to the other   Subsidiary Guarantors and joinders or supplements, as applicable, in form and substance   reasonably satisfactory to the Trustee, to the Security Documents and the Intercreditor   Agreement, as well as an Opinion of Counsel that such Guarantee Agreement, joinders   and supplements, as applicable, have been duly authorized, executed and delivered by   such Restricted Subsidiary and constitute a legal, valid, binding and enforceable   obligation of such Restricted Subsidiary.   SECTION 4.13. Impairment of Security Interest.  The Company   shall not, and shall not permit any of its Restricted Subsidiaries to, take or knowingly or   negligently omit to take, any action which action or omission might or would have the   result of materially impairing the security interest with respect to the Collateral for the   benefit of the Noteholder Secured Parties.   SECTION 4.14. Information Regarding Collateral.  The Company   shall furnish to the Noteholder Collateral Agent, with respect to the Company or any   Subsidiary Guarantor, written notice within 10 Business Days of any change in such     

 

73      Person’s (i) organizational name, (ii) jurisdiction of organization or formation, (iii)   identity or organizational structure or (iv) organizational identification number.  The   Company and the Subsidiary Guarantors shall make all filings under the Uniform   Commercial Code or equivalent statutes or otherwise that are required by applicable law   in order for the Noteholder Collateral Agent to continue at all times following such   change to have a valid, legal and perfected security interest in all the Collateral.   SECTION 4.15. Further Assurances and After-Acquired Property.    (a) Subject to the applicable limitations set forth in the Security Documents and this   Indenture (including with respect to Excluded Assets), the Company and the Subsidiary   Guarantors shall execute any and all further documents, financing statements, agreements   and instruments, and take all further action that may be required under applicable law, or   that the Noteholder Collateral Agent may reasonably request, in order to grant, preserve,   protect and perfect the validity and priority of the Lien created or intended to be created   by the Security Documents in the Collateral. Subject to the applicable limitations set forth   in the Security Documents and this Indenture (including with respect to Excluded   Assets), if, after the Issue Date, the Company or a Subsidiary Guarantor acquires property   that is not automatically subject to a perfected security interest under the Security   Documents and such property constitutes or would constitute Collateral (including any   asset of the Company or a Subsidiary Guarantor that becomes Collateral subsequent to   the Issue Date as a result of such asset ceasing to be an Excluded Asset) or an entity   becomes a Subsidiary Guarantor, then the Company or such Subsidiary Guarantor shall,   within 90 days after such acquisition or 90 days after the date such asset ceases to be an   Excluded Asset (with respect to real property and related fixtures) (in each case, or such   longer period as the Noteholder Collateral Agent may agree in its sole discretion) and as   soon as practicable (with respect to other assets), provide a Lien over such property (or,   in the case of a new Subsidiary Guarantor, its assets that would constitute Collateral   under the Security Documents) in favor of the Noteholder Collateral Agent and deliver   certain joinder agreements or supplements as required by the Security Documents.   Notwithstanding the foregoing, until the Discharge of ABL Obligations, the Company   and the Subsidiary Guarantors shall only be required to comply with the foregoing   requirements with respect to any ABL Priority Collateral to the extent that such ABL   Priority Collateral is concurrently being pledged to secure the obligations under the   Lenders Debt.   (b) In addition, the Company and the Subsidiary Guarantors shall:   (1) on or before the date that is 120 days after the Issue Date, deliver   to the Noteholder Collateral Agent (A) a policy or policies of title insurance   issued by a nationally recognized title insurance company insuring the Lien of   such mortgage as a valid and enforceable Lien on a first-priority basis on the   mortgaged property described therein, free of any other Liens except Permitted   Collateral Liens, together with customary endorsements, coinsurance and   reinsurance, (B) if such mortgaged property is located in an area determined by   the Federal Emergency Management Agency to have special flood hazards,   evidence of such flood insurance as may be required under applicable law,   including Regulation H of the Board of Governors, and (C) such surveys,     

 

74      abstracts, appraisals, legal opinions and other documents as the Noteholder   Collateral Agent may reasonably request with respect to any such mortgage or   mortgaged property;   (2) on or before the date that is 120 days after the Issue Date, deliver   to the Noteholder Collateral Agent such filings, registrations or recordations,   executed and in proper form for filing, registration or recordation, required   pursuant to the Security Documents in respect of the Specified Trucks; and    (3) on or before the date that is 120 days after the Issue Date, deliver   to the Noteholder Collateral Agent evidence satisfactory to it that the Company   and the Subsidiary Guarantors maintain insurance with respect to the Collateral as   required pursuant to the Security Documents.   SECTION 4.16. Compliance Certificate.  The Company shall deliver   to the Trustee within 120 days after the end of each fiscal year of the Company an   Officers’ Certificate stating that in the course of the performance by the signers of their   duties as Officers of the Company they would normally have knowledge of any Default   and whether or not the signers know of any Default that occurred during such period.  If   they do, the certificate shall describe the Default, its status and what action the Company   is taking or proposes to take with respect thereto.  The Company also shall comply with   TIA § 314(a)(4).   SECTION 4.17. Further Instruments and Acts.  Upon request of the   Trustee, the Company will execute and deliver such further instruments and do such   further acts as may be reasonably necessary or proper to carry out more effectively the   purpose of this Indenture.   Article 5      Successor Company   SECTION 5.01. When Company May Merge or Transfer 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 to, any Person, unless:   (1) the Company shall be the surviving corporation or the resulting,   surviving or transferee Person (the “Successor Company”) shall be a corporation,   limited liability company or limited partnership 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 Securities, this Indenture and the Security Documents; provided that if   such Person is a limited liability company or a limited partnership, such Person     

 

75      will form a Wholly Owned Subsidiary that is a corporation and cause such   Wholly Owned Subsidiary to become a co-issuer of the Securities;   (2) 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;   (3) immediately after giving pro forma effect to such transaction,   either (A) the Successor Company would be able to Incur an additional $1.00 of   Coverage Indebtedness pursuant to Section 4.03(a) or (B) the Consolidated   Coverage Ratio of the Successor Company is greater than the Consolidated   Coverage Ratio of the Company immediately prior to giving effect to such   transaction;   (4) 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 or applicable Security   Documents comply with this Indenture;    (5) to the extent any assets of the Person which is consolidated with or   merged with or into the Successor Company are assets of the type which would   constitute Collateral under the Security Documents, the Successor Company will   take such action as may be reasonably necessary to cause such property and assets   to be made subject to the Lien of the Security Documents in the manner and to the   extent required in this Indenture or any of the Security Documents and shall take   all reasonably necessary action so that such Lien is perfected to the extent   required by this Indenture and the Security Documents; and   (6) the Collateral owned by or transferred to the Successor Company   shall: (a) continue to constitute Collateral under this Indenture and the Security   Documents, (b) be subject to the Lien in favor of the Noteholder Collateral Agent   for the benefit of the Trustee and the Holders and (c) not be subject to any Lien   other than Permitted Collateral Liens or Permitted Liens, as the case may be, and   other Liens permitted under Section 4.10;   provided, however, that clause (3) will not be applicable to (A) a Restricted Subsidiary   consolidating with, merging into or transferring all or part of its properties and assets to   the Company (so long as no Capital Stock of the Company is distributed to any Person)   or (B) 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 5.01, 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     

 

76      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.   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, the Subsidiary Guarantees and the Security Documents   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 Securities.   For all purposes of this Indenture, Subsidiaries of any Successor Company   shall, upon any transaction subject to this Section 5.01, become Restricted Subsidiaries or   Unrestricted Subsidiaries as provided pursuant to this Indenture, and all Indebtedness and   Liens of the Successor Company and its Subsidiaries that was not Indebtedness or Liens   on property or assets, as the case may be, of the Company and its Subsidiaries   immediately prior to such transaction shall be deemed to have been Incurred upon such   transaction.   (b) 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 unless:   (1) except in the case of a Subsidiary Guarantor (x) that has been, or   will be as a result of a transaction, 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   each case, if in connection therewith the Company provides an Officers’   Certificate to the Trustee to the effect that the Company will comply with its   obligations under Section 4.06 in respect of such disposition, the resulting,   surviving or transferee Person (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 of America, or any State thereof   or the District of Columbia, and such Person shall expressly assume, by a   Guarantee Agreement, in a form satisfactory to the Trustee, all the obligations of   such Subsidiary, if any, under its Subsidiary Guarantee and the Security   Documents;   (2) 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;   (3) the Company delivers to the Trustee an Officers’ Certificate and an   Opinion of Counsel, each stating that such consolidation, merger or transfer and   such Guarantee Agreement and the applicable Security Documents comply with   this Indenture;     

 

77      (4) to the extent any assets of the Person which is consolidated with or   merged with or into the Successor Guarantor are assets of the type which would   constitute Collateral under the Security Documents, the Successor Guarantor will   take such action as may be reasonably necessary to cause such property and assets   to be made subject to the Lien of the Security Documents in the manner and to the   extent required in this Indenture or any of the Security Documents and shall take   all reasonably necessary action so that such Lien is perfected to the extent   required by this Indenture and the Security Documents; and   (5) the Collateral owned by or transferred to the Successor Guarantor   shall (x) continue to constitute Collateral under this Indenture and the Security   Documents, (y) be subject to the Lien favor of the Noteholder Collateral Agent   for the benefit of the Trustee and the Holders and (z) not be subject to any Lien   other than Permitted Liens and other Liens permitted under Section 4.10.   Article 6      Defaults and Remedies   SECTION 6.01. Events of Default.  An “Event of Default” occurs if:   (1) the Company defaults in the payment of interest on any Security   when the same becomes due and payable, and such default continues for a period   of 30 days;   (2) the Company defaults in the payment of principal of any Security   when the same becomes due and payable at its Stated Maturity, upon optional   redemption, upon required purchase, upon declaration of acceleration or   otherwise;   (3) the Company fails to comply with Section 5.01;   (4) the Company fails to comply (i) with Section 4.03, 4.04, 4.05,   4.06, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14 or 4.15 (other than a failure to   purchase Securities when required under Section 4.06 or 4.09) and such failure   continues for 30 days after the notice specified below or (ii) with Section 4.02 and   such failure continues for 120 days after the notice specified below;   (5) the Company or any Subsidiary Guarantor fails to comply with any   of its other agreements contained in the Securities, this Indenture or in the   Security Documents (other than those referred to in clause (1), (2), (3) or (4)   above) and such failure continues for 60 days after the notice specified below;   (6) Indebtedness of the Company, any Subsidiary Guarantor 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 $20,000,000, or its   foreign currency equivalent at the time;     

 

78      (7)  the Company or any Significant Subsidiary pursuant to or within   the meaning of any Bankruptcy Law:   (A) commences a voluntary case;   (B) consents to the entry of an order for relief against it in an   involuntary case;   (C) consents to the appointment of a Custodian of it or for any   substantial part of its property; or   (D) makes a general assignment for the benefit of its creditors;   or takes any comparable action under any foreign laws relating to insolvency;   (8) a court of competent jurisdiction enters an order or decree under   any Bankruptcy Law that:   (A) is for relief against the Company or any Significant   Subsidiary in an involuntary case;   (B) appoints a Custodian of the Company or any Significant   Subsidiary or for any substantial part of its property; or   (C) 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;    (9) any judgment or decree for the payment of money in excess of   $20,000,000 (in excess of amounts covered by insurance policies issued by   reputable and solvent insurance companies and as to which the relevant insurer   has not disclaimed responsibility) or its foreign currency equivalent at the time is   entered against the Company or any Significant Subsidiary, remains outstanding   for a period of 60 consecutive days following the entry of such judgment or   decree and is not discharged, waived or the execution thereof stayed (the   “judgment default provision”);   (10) any Subsidiary Guarantee of any Significant Subsidiary ceases to   be in full force and effect (other than in accordance with the terms of such   Subsidiary Guarantee) or any Subsidiary Guarantor denies or disaffirms its   obligations under its Subsidiary Guarantee; or   (11) with respect to any Collateral, individually or in the aggregate,   having a fair market value in excess of $5,000,000, (a) any of the Security   Documents ceases to be in full force and effect, (b) any of the Security   Documents ceases to give the Holders the Liens purported to be created thereby     

 

79      with the priority contemplated thereby, or (c) any of the Security Documents is   declared null and void or the Company or any Subsidiary Guarantor denies in   writing that it has any further liability under any Security Document or gives   written notice to such effect (in each case (i) other than in accordance with the   terms of this Indenture, the Intercreditor Agreement and the Security Documents   or (ii) unless waived by the requisite Holders if, after that waiver, the Company is   in compliance with Section 4.15 and Article 11), except to the extent that any loss   of perfection or priority results from the failure of the Noteholder Collateral   Agent or the Bank Collateral Agent to maintain possession of certificates actually   delivered to it representing securities pledged under the Security Documents, or   otherwise results from the gross negligence, bad faith or willful misconduct of the   Trustee, the Noteholder Collateral Agent or the Bank Collateral Agent (the   “security default provision”).   The foregoing will constitute Events of Default whatever the reason for   any such Event of Default and whether it is voluntary or involuntary or is effected by   operation of law or pursuant to any judgment, decree or order of any court or any order,   rule or regulation of any administrative or governmental body.   The term “Custodian” means any receiver, trustee, assignee, liquidator,   custodian or similar official under any Bankruptcy Law.   A Default under clauses (4) or (5) shall not be an Event of Default until   the Trustee or the Holders of at least 25% in principal amount of the outstanding   Securities notify the Company of the Default and the Company does not cure such   Default within the time specified 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 Company shall deliver to the Trustee, within 30 days after the   occurrence thereof, written notice in the form of an Officers’ Certificate of any Event of   Default under clause (3), (6), (9), (10) or (11) and any event which with the giving of   notice or the lapse of time would become an Event of Default under clause (4) or (5), its   status and what action the Company is taking or proposes to take with respect thereto.   Any default for the failure to deliver any report within the time periods   prescribed in Section 4.02 or to deliver any notice or certificate pursuant to any other   provision of this Indenture shall be deemed to be cured upon the subsequent delivery of   any such report, notice or certificate, even though such delivery is not within the   prescribed period specified.   SECTION 6.02. Acceleration.  (a) If an Event of Default (other than   an Event of Default specified in clause (7) or (8) of Section 6.01 with respect to the   Company) occurs and is continuing, the Trustee by notice to the Company, or the Holders   of at least 25% in principal amount of the outstanding Securities by notice to the   Company and the Trustee, may declare the principal of and accrued but unpaid interest   on all the Securities to be due and payable.  Upon such a declaration, such principal and     

 

80      interest shall be due and payable immediately.  If an Event of Default specified in clause   (7) or (8) of Section 6.01 with respect to the Company occurs and is continuing, the   principal of and interest on all the Securities shall ipso facto become and be immediately   due and payable without any declaration or other act on the part of the Trustee or any   Holders.  The Holders of a majority in principal amount of the outstanding Securities by   notice to the Trustee may rescind any such acceleration with respect to the Securities and   its consequences if the rescission would not conflict with any judgment or decree and if   all existing Events of Default have been cured or waived except nonpayment of principal   or interest that has become due solely because of acceleration.  No such rescission shall   affect any subsequent Default or impair any right consequent thereto.   (b) In the event of any Event of Default specified in clause (6) above,   such Event of Default and all consequences thereof (excluding any resulting payment   default, other than as a result of the acceleration of the Securities) shall be annulled,   waived and rescinded, automatically and without any action by the Trustee or the   Holders, if within 20 days after such Event of Default arose, (x) the Indebtedness or   Guarantee that is the basis for such Event of Default has been discharged, (y) the holders   thereof  have rescinded or waived the acceleration, notice or action (as the case may be)   giving rise to such Event of Default or (z) the default that is the basis for such Event of   Default has been cured.   SECTION 6.03. 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 Securities or to enforce the performance of any provision of   the Securities or this Indenture.   The Trustee may maintain a proceeding even if it does not possess any of   the Securities 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 6.04. Waiver of Past Defaults.  Subject to Section   9.02(d), the Holders of a majority in principal amount of the Securities by notice to the   Trustee may waive an existing Default and its consequences except (a) a Default in the   payment of the principal of or interest on a Security, (b) a Default arising from the failure   to redeem or purchase any Security when required pursuant to this Indenture or (c) a   Default in respect of a provision that under Section 9.02 cannot be amended without the   consent of each Holder affected.  When a Default is waived, it is deemed cured, but no   such waiver shall extend to any subsequent or other Default or impair any consequent   right.   SECTION 6.05. Control by Majority.  The Holders of a majority in   principal amount of the Securities may direct the time, method and place of conducting   any proceeding for exercising any remedy available to the Trustee or the Noteholder   Collateral Agent or of exercising any trust or power conferred on the Trustee or the     

 

81      Noteholder Collateral Agent, as applicable.  However, the Trustee and the Noteholder   Collateral Agent may refuse to follow any direction that conflicts with law or this   Indenture, the Securities, the Subsidiary Guarantees and the Security Documents or,   subject to Section 7.01, that the Trustee and the Noteholder Collateral Agent determine is   unduly prejudicial to the rights of other Holders or would involve the Trustee or the   Noteholder Collateral Agent in personal liability; provided, however, that the Trustee   may take any other action deemed proper by the Trustee that is not inconsistent with such   direction.  Prior to taking any action hereunder, the Trustee shall be entitled to   indemnification reasonably satisfactory to it in its sole discretion against all losses and   expenses caused by taking or not taking such action.   SECTION 6.06. 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 Securities unless:   (1) such Holder gives to the Trustee written notice stating that an   Event of Default is continuing;   (2) Holders of at least 25% in principal amount of the Securities make   a written request to the Trustee to pursue the remedy;   (3) such Holder or Holders offer to the Trustee security or indemnity   reasonably satisfactory to it against any loss, liability or expense;   (4) the Trustee does not comply with the request within 60 days after   receipt of the request and the offer of security or indemnity; and   (5) the Holders of a majority in principal amount of the outstanding   Securities do not give the Trustee a direction inconsistent with the request during   such 60-day period.   Notwithstanding the foregoing, in no event may any Holder enforce any   Lien of the Noteholder Collateral Agent pursuant to the Security Documents.   A Holder may not use this Indenture to prejudice the rights of another   Holder or to obtain a preference or priority over another Holder.  In the event that the   Definitive Securities are not issued to any beneficial owner promptly after the Registrar   has received a request from the Holder of a Global Security to issue such Definitive   Securities to such beneficial owner or its nominee, the Company expressly agrees and   acknowledges, with respect to the right of any Holder to pursue a remedy pursuant to this   Indenture, the right of such beneficial holder of Securities to pursue such remedy with   respect to the portion of the Global Security that represents such beneficial holder’s   Securities as if such Definitive Securities had been issued.   SECTION 6.07. Rights of Holders to Receive Payment.    Notwithstanding any other provision of this Indenture, the right of any Holder to receive   payment of principal of and interest on the Securities held by such Holder, on or after the   respective due dates expressed in the Securities, or to bring suit for the enforcement of     

 

82      any such payment on or after such respective dates, shall not be impaired or affected   without the consent of such Holder.   SECTION 6.08. Collection Suit by Trustee.  If an Event of Default   specified in Section 6.01(1) or (2) occurs and is continuing, the Trustee may recover   judgment 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 7.07.   SECTION 6.09. Trustee May File Proofs of Claim.  The Trustee   may file such proofs of claim and other papers or documents as may be necessary or   advisable in order to have the claims of the Trustee and the Holders allowed in any   judicial proceedings relative to the Company, its creditors or its property 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 7.07.   SECTION 6.10. Priorities.  Subject to the terms of the Security   Documents and the Intercreditor Agreement with respect to any proceeds of Collateral, if   the Trustee or Noteholder Collateral Agent collects any money or property pursuant to   this Article 6, it shall pay out the money or property in the following order:   FIRST: to the Trustee for amounts due under Section 7.07 and to   the Noteholder Collateral Agent for amounts due under Article 11 or under any   Security Document;   SECOND: to Holders for amounts due and unpaid on the Securities for   principal and interest, ratably, without preference or priority of any kind,   according to the amounts due and payable on the Securities for principal and   interest, respectively; and   THIRD:   to the Company.   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 cause to be sent 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     

 

83      the court in its discretion may assess reasonable costs, including reasonable attorneys’   fees, against any party litigant in the suit, having due regard to the merits and good faith   of the claims or defenses made by the party litigant.  This Section does not apply to a suit   by the Trustee, a suit by a Holder pursuant to Section 6.07 or a suit by Holders of more   than 10% in aggregate principal amount of the Securities.   SECTION 6.12. Waiver of Stay or Extension Laws.  The Company   (to the extent it may lawfully do so) shall not at any time insist upon, or plead, or in any   manner whatsoever claim or take the benefit or advantage of, any stay or extension law   wherever enacted, now or at any time hereafter in force, which may affect the covenants   or the performance of this Indenture; and the Company (to the extent that it may lawfully   do so) hereby expressly waives all benefit or advantage of any such law, and shall not   hinder, delay or impede the execution of any power herein granted to the Trustee, but   shall suffer and permit the execution of every such power as though no such law had been   enacted.   Article 7      Trustee   SECTION 7.01. Duties of Trustee.  (a)  If an Event of Default has   occurred and is continuing, the Trustee shall exercise the rights and powers vested in it by   this Indenture and use the same 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.   (a) Except during the continuance of an Event of Default:   (1) the Trustee undertakes to perform such duties and only such duties   as are specifically set forth in this Indenture and no implied covenants or   obligations shall be read into this Indenture against the Trustee; and   (2) in the absence of bad faith on its part, the Trustee may   conclusively rely, as to the truth of the statements and the correctness of the   opinions expressed therein, upon certificates or opinions furnished to the Trustee   and conforming to the requirements of this Indenture.  However, the Trustee shall   examine the certificates and opinions to determine whether or not they conform to   the requirements of this Indenture.   (b) The Trustee may not be relieved from liability for its own   negligent action, its own negligent failure to act or its own wilful misconduct, except that:   (1) this paragraph does not limit the effect of paragraph (b) of this   Section;   (2) the Trustee shall not be liable for any error of judgment made in   good faith by a Trust Officer unless it is proved that the Trustee was negligent in   ascertaining the pertinent facts; and     

 

84      (3) the Trustee shall not be liable with respect to any action it takes or   omits to take in good faith in accordance with a direction received by it pursuant   to Section 6.05.   (c) Every provision of this Indenture that in any way relates to the   Trustee is subject to paragraphs (a), (b) and (c) of this Section.   (d) The Trustee shall not be liable for interest on any money received   by it except as the Trustee may agree in writing with the Company.   (e) Money held in trust by the Trustee need not be segregated from   other funds except to the extent required by law.   (f) No provision of this Indenture shall require the Trustee to expend   or risk its own funds or otherwise incur financial liability in the performance of any of its   duties hereunder or in the exercise of any of its rights or powers, if it shall have   reasonable grounds to believe that repayment of such funds or adequate indemnity   against such risk or liability is not reasonably assured to it.   (g) Every provision of this Indenture relating to the conduct or   affecting the liability of or affording protection to the Trustee shall be subject to the   provisions of this Section and to the provisions of the TIA.   SECTION 7.02. Rights of Trustee.  (a)  The Trustee may   conclusively rely on any document believed by it to be genuine and to have been signed   or presented by the proper person.  The Trustee need not investigate any fact or matter   stated in the document but may make such further inquiry or investigation into such facts   and matters at it may see fit in its discretion and, if the Trustee shall determine to make   such further inquiry or investigation, it shall be entitled, upon reasonable notice to the   Company, to examine the books, records and premises of the Company, personally or by   agent or attorney at the sole cost of the Company.   (a) Before the Trustee acts or refrains from acting, it may require an   Officers’ Certificate or an Opinion of Counsel.  The Trustee shall not be liable for any   action it takes or omits to take in good faith in reliance on the Officers’ Certificate or   Opinion of Counsel or both.   (b) The Trustee may act through agents and shall not be responsible   for the misconduct or negligence of any agent appointed with due care.   (c) The Trustee shall not be liable for any action it takes or omits to   take in good faith which it believes to be authorized or within its rights or powers.   (d) The Trustee may consult with counsel, and the advice or opinion of   counsel with respect to legal matters relating to this Indenture and the Securities shall be   full and complete authorization and protection from liability in respect to any action   taken, omitted or suffered by it hereunder in good faith and in accordance with the advice   or opinion of such counsel.     

 

85      (e) The Trustee shall be under no obligation to exercise any of the   rights or powers vested in it by this Indenture at the request, order or direction of any of   the Holders pursuant to the provisions of this Indenture, unless such Holders shall have   offered to the Trustee security or indemnity reasonably satisfactory to it against the costs,   expenses and liabilities which may be incurred therein or thereby.   (f) The Trustee shall not be required to give any bond or surety in   respect of the performance of its powers and duties hereunder.   (g) The permissive rights of the Trustee to do things enumerated in   this Indenture shall not be construed as duties.   (h) Except with respect to Section 4.01, the Trustee shall have no duty   to inquire as to the performance of the Company with respect to the covenants contained   in Article 4. In addition, the Trustee shall not be deemed to have knowledge of an Event   of Default except (i) any Default or Event of Default occurring pursuant to paragraphs (1)   or (2) of Section 6.01 or (ii) any Default or Event of Default of which the Trustee shall   have received written notification.   (i) The rights, privileges, protections, immunities and benefits given   to the Trustee, including its right to be indemnified, are extended to, and shall be   enforceable by, the Trustee in each of its capacities hereunder, and to each agent,   custodian and other Person employed to act hereunder.   (j) Delivery of reports to the Trustee pursuant to Section 4.02 shall not   constitute actual knowledge of, or notice to, the Trustee of the information contained   therein.   SECTION 7.03. Individual Rights of Trustee.  The Trustee in its   individual or any other capacity may become the owner or pledgee of Securities and may   otherwise deal with the Company or its Affiliates with the same rights it would have if it   were not Trustee.  Any Paying Agent, Registrar, co-registrar or co-paying agent may do   the same with like rights.  However, the Trustee must comply with Sections 7.10 and   7.11.   SECTION 7.04. Trustee’s Disclaimer.  The Trustee shall not be   responsible for and makes no representation as to the validity or adequacy of this   Indenture or the Securities, it shall not be accountable for the Company’s use of the   proceeds from the Securities, 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   Securities or in the Securities other than the Trustee’s certificate of authentication.   SECTION 7.05. Notice of Defaults.  If a Default occurs, is   continuing and is known to the Trustee, the Trustee shall send to each Holder notice of   the Default within 90 days after it occurs.  Except in the case of a Default in the payment   of principal of or interest on any Security, the Trustee may withhold the notice if and so   long as a committee of its Trust Officers in good faith determines that withholding the   notice is not opposed to the interests of the Holders.     

 

86      SECTION 7.06. Reports by Trustee to Holders.  As promptly as   practicable after each May 15 beginning with the May 15 following the date of this   Indenture, and in any event prior to July 15 in each year, the Trustee shall mail to each   Holder a brief report dated as of May 15 that complies with TIA § 313(a).  The Trustee   also shall comply with TIA § 313(b).   A copy of each report at the time of its mailing to Holders shall be filed   with the SEC and each stock exchange (if any) on which the Securities are listed.  The   Company agrees to notify promptly the Trustee whenever the Securities become listed on   any stock exchange and of any delisting thereof.   SECTION 7.07. Compensation and Indemnity.  The Company shall   pay to the Trustee from time to time such compensation for its services as the Company   and the Trustee shall from time to time agree to in writing.  The Trustee’s compensation   shall not be limited by any law on compensation of a trustee of an express trust.  The   Company shall reimburse the Trustee upon request for all reasonable out-of-pocket   expenses incurred or made by it, including costs of collection, in addition to the   compensation for its services.  Such expenses shall include the reasonable compensation   and expenses, disbursements and advances of the Trustee’s agents, counsel, accountants   and experts.  The Company shall indemnify the Trustee against any and all loss, liability   or expense (including attorneys’ fees) incurred by it in connection with the administration   of this trust and the performance of its duties hereunder, including the reasonable costs   and expenses of defending itself against or investigating any claim or liability in   connection with the exercise or performance of any of the Trustee’s rights, powers or   duties hereunder (including the costs and expenses of enforcing this Indenture against the   Company or the Subsidiary Guarantors (including this Section 7.07)).  The Trustee shall   notify the Company promptly of any claim for which it may seek indemnity.  Failure by   the Trustee to so notify the Company shall not relieve the Company of its obligations   hereunder.  The Company shall defend the claim and the Trustee may have separate   counsel and the Company shall pay the fees and expenses of such counsel.  The Company   need not reimburse any expense or indemnify against any loss, liability or expense   incurred by the Trustee through the Trustee’s own wilful misconduct, negligence or bad   faith.   To secure the Company’s payment obligations in this Section, the Trustee   shall have a lien prior to the Securities 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 Securities.   The Company’s payment obligations pursuant to this Section shall survive   the discharge of this Indenture or the appointment of a successor Trustee.  When the   Trustee incurs expenses after the occurrence of a Default specified in Section 6.01(7) or   (8) with respect to the Company, the expenses are intended to constitute expenses of   administration under the Bankruptcy Law.   SECTION 7.08. Replacement of Trustee.  The Trustee may resign at   any time by so notifying the Company.  The Holders of a majority in principal amount of     

 

87      the Securities may remove the Trustee by so notifying the Trustee and may appoint a   successor Trustee.  The Company shall remove the Trustee if:   (1) the Trustee fails to comply with Section 7.10;   (2) the Trustee is adjudged bankrupt or insolvent;   (3) a receiver or other public officer takes charge of the Trustee or its   property; or   (4) the Trustee otherwise becomes incapable of acting.   If the Trustee resigns, is removed by the Company or by the Holders of a   majority in principal amount of the Securities 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 send 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 7.07.   If a successor Trustee does not take office within 60 days after the retiring   Trustee resigns or is removed, the retiring Trustee or the Holders of 10% in principal   amount of the Securities may petition any court of competent jurisdiction for the   appointment of a successor Trustee.   If the Trustee fails to comply with Section 7.10, any Holder may petition   any court of competent jurisdiction for the removal of the Trustee and the appointment of   a successor Trustee.   Notwithstanding the replacement of the Trustee pursuant to this Section,   the Company’s obligations under Section 7.07 shall continue for the benefit of the   retiring Trustee.   SECTION 7.09. 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 Securities shall have been authenticated but not delivered, any such successor to the     

 

88      Trustee may adopt the certificate of authentication of any predecessor trustee, and deliver   such Securities so authenticated; and in case at that time any of the Securities shall not   have been authenticated, any successor to the Trustee may authenticate such Securities   either in the name of any predecessor hereunder or in the name of the successor to the   Trustee; and in all such cases such certificates shall have the full force which it is   anywhere in the Securities or in this Indenture provided that the certificate of the Trustee   shall have.   SECTION 7.10. Eligibility; Disqualification.  The Trustee shall at all   times satisfy the requirements of TIA § 310(a).  The Trustee shall have a combined   capital and surplus of at least $50,000,000 as set forth in its most recent published annual   report of condition.  The Trustee shall comply with TIA § 310(b); provided, however,   that there shall be excluded from the operation of TIA § 310(b)(1) any indenture or   indentures under which other securities or certificates of interest or participation in other   securities of the Company are outstanding if the requirements for such exclusion set forth   in TIA § 310(b)(1) are met.   SECTION 7.11. Preferential Collection of Claims Against Company.    The Trustee shall comply with TIA § 311(a), excluding any creditor relationship listed in   TIA § 311(b).  A Trustee who has resigned or been removed shall be subject to TIA   § 311(a) to the extent indicated.   SECTION 7.12. Security Documents; Intercreditor Agreement.  By   their acceptance of the Securities, the Holders hereby authorize and direct the Trustee and   the Noteholder Collateral Agent, as the case may be, to execute and deliver the   Intercreditor Agreement and the Security Documents in which the Trustee or the   Noteholder Collateral Agent, as applicable, is named as a party, including any Security   Documents executed after the Issue Date.  It is hereby expressly acknowledged and   agreed that, in doing so, the Trustee and the Noteholder Collateral Agent are not   responsible for the terms or contents of such agreements, or for the validity or   enforceability thereof, or the sufficiency thereof for any purpose.  Whether or not so   expressly stated therein, in entering into, or taking (or forbearing from) any action under   or pursuant to, the Intercreditor Agreement or any other Security Document, the Trustee   and the Noteholder Collateral Agent each shall have all the rights, immunities,   indemnities and other protections granted to it under this Indenture (in addition to those   that may be granted to it under the terms of such other agreement or agreements).   Article 8      Discharge of Indenture; Defeasance   SECTION 8.01. Discharge of Liability on Securities; Defeasance.    (a)  When (1) the Company delivers to the Trustee all outstanding Securities (other than   Securities replaced pursuant to Section 2.07) for cancellation, (2) all outstanding   Securities have become due and payable, whether at maturity or on a redemption date as   a result of the sending of a notice of redemption pursuant to Article 3 hereof or (3) all   outstanding Securities not theretofore delivered for cancellation will become due and     

 

89      payable within one year at their Stated Maturity or are to be called for redemption within   one year, and, in the case of clause (2) or (3), the Company irrevocably deposits with the   Trustee funds sufficient to pay at maturity or upon redemption all outstanding Securities,   including interest thereon to maturity or such redemption date (other than Securities   replaced pursuant to Section 2.07), and if in either case the Company pays all other sums   payable hereunder by the Company (other than contingent indemnification obligations, if   any, that, pursuant to the terms of this Indenture and the Security Documents, survive the   termination thereof), then this Indenture and the Security Documents shall, subject to   Section 8.01(c), cease to be of further effect, and the Company’s and Subsidiary   Guarantors’ obligations under this Indenture and the Security Documents shall be   satisfied and discharged.  The Trustee shall acknowledge such satisfaction and discharge   on demand of the Company accompanied by an Officers’ Certificate and an Opinion of   Counsel (which, in the case of a redemption, may be the Officers’ Certificate and   Opinion of Counsel related to such redemption) and at the cost and expense of the   Company.   (a) Subject to Sections 8.01(c) and 8.02, the Company at any time may   terminate (1) all its obligations under the Securities and this Indenture (“legal defeasance   option”) or (2) its obligations under Sections 4.02, 4.03, 4.04, 4.05, 4.06, 4.07, 4.08, 4.09,   4.10, 4.11, 4.12, 4.13, 4.14 and 4.15 and the operation of clauses (4), (6), (7), (8), (9),   (10) and (11) of Section 6.01 (but, in the case of clauses (7) and (8) with respect only to   Significant Subsidiaries) and the limitations contained in Section 5.01(a)(3) (“covenant   defeasance option”).  The Company may exercise its legal defeasance option   notwithstanding its prior exercise of its covenant defeasance option.   If the Company exercises its legal defeasance option, payment of the   Securities may not be accelerated because of an Event of Default with respect thereto.  If   the Company exercises its covenant defeasance option, payment of the Securities may not   be accelerated because of an Event of Default specified in clause (4), (5) (6), (7), (8), (9),   (10) and (11) of Section 6.01 (but, in the case of clauses (7) and (8), with respect only to   Significant Subsidiaries) or because of the failure of the Company to comply with   Section 5.01(a)(3).  If the Company exercises its legal defeasance option or its covenant   defeasance option, each Subsidiary Guarantor, if any, shall be released from all its   obligations with respect to its Subsidiary Guarantee and the Security Documents.   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.   (b) Notwithstanding clauses (a) and (b) above, the Company’s   obligations in Sections 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 7.07 and 7.08 and in this   Article 8 shall survive until the Securities have been paid in full.  Thereafter, the   Company’s obligations in Sections 7.07, 8.04 and 8.05 shall survive, as well as   contingent indemnification obligations, if any, that, pursuant to the terms of this   Indenture and the Security Documents, survive the termination thereof.     

 

90      SECTION 8.02. Conditions to Defeasance.  The Company may   exercise its legal defeasance option or its covenant defeasance option only if:   (1) the Company irrevocably deposits in trust with the Trustee money   or U.S. Government Obligations for the payment of principal of and interest on   the Securities to maturity or redemption, as the case may be;   (2) the Company delivers to the Trustee a certificate from a nationally   recognized firm of independent accountants expressing their opinion (or, if two or   more nationally recognized firms of independent accountants decline to issue such   opinion after the Company has made reasonable efforts to obtain such an opinion,   a certificate from the Company’s chief financial officer so stating and expressing   such opinion) that the payments of principal and interest when due and without   reinvestment on the deposited U.S. Government Obligations plus any deposited   money without investment will provide cash at such times and in such amounts as   will be sufficient to pay principal and interest when due on all the Securities to   maturity or redemption, as the case may be;   (3) 123 days pass after the deposit is made and during the 123-day   period no Default specified in Sections 6.01(7) or (8) with respect to the Company   occurs which is continuing at the end of the period;   (4) the deposit does not constitute a default under any other agreement   binding on the Company;   (5) the Company delivers to the Trustee an Opinion of Counsel to the   effect that the trust resulting from the deposit does not constitute, or is qualified   as, a regulated investment company under the Investment Company Act of 1940;   (6) in the case of the legal defeasance option, the Company shall have   delivered to the Trustee an Opinion of Counsel stating that (A) the Company has   received from, or there has been published by, the Internal Revenue Service a   ruling, or (B) since the date of this Indenture there has been a change in the   applicable Federal income tax law, in either case to the effect that, and based   thereon such Opinion of Counsel shall confirm that, the Holders will not   recognize income, gain or loss for Federal income tax purposes as a result of such   legal defeasance and will be subject to Federal income tax on the same amounts,   in the same manner and at the same times as would have been the case if such   legal defeasance had not occurred;   (7) in the case of the covenant defeasance option, the Company shall   have delivered to the Trustee an Opinion of Counsel to the effect that the Holders   will not recognize income, gain or loss for Federal income tax purposes as a result   of such covenant defeasance and will be subject to Federal income tax on the   same amounts, in the same manner and at the same times as would have been the   case if such covenant defeasance had not occurred; and     

 

91      (8) the Company delivers to the Trustee an Officers’ Certificate and an   Opinion of Counsel, each stating that all conditions precedent to the defeasance   and discharge of the Securities as contemplated by this Article 8 have been   complied with.   Before or after a deposit, the Company may make arrangements   satisfactory to the Trustee for the redemption of Securities at a future date in accordance   with Article 3.   SECTION 8.03. Application of Trust Money.  The Trustee shall hold   in trust money or U.S. Government Obligations deposited with it pursuant to this   Article 8.  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 Securities.     SECTION 8.04. Repayment to Company.  The Trustee and the   Paying Agent shall promptly turn over to the Company upon request any excess money   or securities held by them at any time.   Subject to any applicable abandoned property law, the Trustee and the   Paying Agent shall pay to the Company upon request any money held by them for the   payment of principal or interest that remains unclaimed for two years, and, thereafter,   Holders entitled to the money must look to the Company for payment as general   unsecured creditors.   SECTION 8.05. Indemnity for 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 8.06. Reinstatement.  If the Trustee or Paying Agent is   unable to apply any money or U.S. Government Obligations in accordance with this   Article 8 by reason of any legal proceeding or by reason of any order or judgment of any   court or governmental authority enjoining, restraining or otherwise prohibiting such   application, the Company’s and each Subsidiary Guarantor’s obligations under this   Indenture, each Subsidiary Guarantee and the Securities shall be revived and reinstated as   though no deposit had occurred pursuant to this Article 8 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 8; provided, however, that, if the Company has made any   payment of interest on or principal of any Securities because of the reinstatement of its   obligations, the Company shall be subrogated to the rights of the Holders of such   Securities to receive such payment from the money or U.S. Government Obligations held   by the Trustee or Paying Agent.     

 

92      Article 9      Amendments   SECTION 9.01. Without Consent of Holders.  The Company, the   Subsidiary Guarantors, the Trustee and the Noteholder Collateral Agent may amend this   Indenture, the Intercreditor Agreement, the Security Documents or the Securities without   notice to or consent of any Holder:   (1) to cure any ambiguity, omission, defect or inconsistency;   (2) to comply with Article 5;   (3) to provide for uncertificated Securities in addition to or in place of   certificated Securities; provided, however, that the uncertificated Securities are   issued in registered form for purposes of Section 163(f) of the Code);   (4) to add Guarantees with respect to the Securities, including any   Subsidiary Guarantee, or to secure the Securities or add collateral;   (5) to add to the covenants of the Company or any Subsidiary   Guarantor for the benefit of the Holders or to surrender any right or power herein   conferred upon the Company or any Subsidiary Guarantor;   (6) to make any change that does not adversely affect the rights of any   Holder;   (7) to comply with any requirement of the SEC in connection with   qualifying, or maintaining the qualification of, this Indenture under the TIA;   (8) to conform the text of this Indenture, the Intercreditor Agreement,   the Securities, any Subsidiary Guarantee or any Security Document to any   provision of the “Description of the notes” in the Offering Memorandum to the   extent that such provision in the “Description of the notes” was intended to be a   verbatim recitation of a provision of this Indenture, the Intercreditor Agreement,   the Securities, such Subsidiary Guarantee or such Security Document;    (9) to make any amendment to the provisions of this Indenture relating   to the transfer and legending of Securities; provided, however, that (a) compliance   with this Indenture as so amended would not result in Securities being transferred   in violation of the Securities Act or any other applicable securities law and   (b) such amendment does not materially and adversely affect the rights of Holders   to transfer Securities; or   (10) to provide for the issuance of Additional Securities pursuant to a   supplemental indenture in accordance with this Indenture.     

 

93      After an amendment under this Section becomes effective, the Company   shall send 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.   SECTION 9.02. With Consent of Holders.  (a)  The Company, the   Subsidiary Guarantors, the Trustee and the Noteholder Collateral Agent may amend this   Indenture, the Intercreditor Agreement, the Security Documents or the Securities with the   written consent of the Holders of at least a majority in principal amount of the Securities   then outstanding (including consents obtained in connection with a tender offer or   exchange for the Securities) and any past default or compliance with any provisions may   also be waived with the consent of the Holders of at least a majority in principal amount   of the Securities then outstanding.     (b) Notwithstanding Section 9.02(a), without the consent of each   Holder affected thereby, an amendment or waiver may not:   (1) reduce the amount of Securities whose Holders must consent to an   amendment;   (2) reduce the rate of or extend the time for payment of interest on any   Security;   (3) reduce the principal of or change the Stated Maturity of any   Security;   (4) change the provisions applicable to the redemption of any Security   contained in Article 3 hereto or Section 5 or 6 of the Securities;   (5) make any Security payable in money other than that stated in the   Security;   (6) impair the right of any Holder to receive payment of principal of   and interest on such Holder’s Securities 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 Securities;   (7) make any change in Section 6.04 or 6.07 or this Section 9.02(b);    (8) make any change in the ranking or priority of any Security that   would adversely affect the Holders or make any change in the Intercreditor   Agreement or in the provisions of this Indenture or any Security Document   dealing with the application of proceeds of the Collateral that would adversely   affect such Holder;   (9)  make any change in, or release other than in accordance with this   Indenture, any Subsidiary Guarantee that would adversely affect the Holders; or     

 

94      (9)  make any change in any Security Document, the Intercreditor   Agreement or the provisions in this Indenture dealing with Security Documents or   application of trust proceeds of the Collateral that would adversely affect the   Holders.   (c) Without the consent of the Holders of at least two-thirds in   principal amount of Securities then outstanding, no amendment, supplement or waiver   may release any Collateral from the Liens of the Security Documents other than in   accordance with this Indenture, the Intercreditor Agreement and the Security Documents.   If Holders of at least two-thirds in principal amount of Securities then outstanding   consent to any release of any Collateral from the Liens of the Security Documents other   than a release in accordance with this Indenture, the Intercreditor Agreement and the   Security Documents, the Noteholder Collateral Agent will be entitled to vote the total   principal amount of Securities then outstanding as a block in respect of any vote required   for such release under the Security Documents.   (d) Clauses (4) and (6) of Section 9.02(b) and clauses (a) and (b) of   Section 6.04 shall not apply to Sections 4.06 and 4.09, and amendments and waivers of   such provisions and payments required thereunder shall be governed by Section 9.02(a).    It shall not be necessary for the consent of the Holders under this Section to approve the   particular form of any proposed amendment or waiver, but it shall be sufficient if such   consent approves the substance thereof.   (e) After an amendment under this Section becomes effective, the   Company shall send 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.   SECTION 9.03. Compliance with Trust Indenture Act.  Every   amendment to this Indenture or the Securities shall comply with the TIA as then in effect.   SECTION 9.04. Revocation and Effect of Consents and Waivers.  A   consent to an amendment or a waiver by a Holder of a Security shall bind the Holder and   every subsequent Holder of that Security or portion of the Security that evidences the   same debt as the consenting Holder’s Security, even if notation of the consent or waiver   is not made on the Security.  However, any such Holder or subsequent Holder may   revoke the consent or waiver as to such Holder’s Security or portion of the Security if the   Trustee receives the notice of revocation before the date the amendment or waiver   becomes effective.  After an amendment or waiver becomes effective, it shall bind every   Holder.  An amendment or waiver becomes effective upon the execution of such   amendment or waiver by the Trustee.   The Company may, but shall not be obligated to, fix a record date for the   purpose of determining the Holders entitled to 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 of this   Section 9.04, those Persons who were Holders at such record date (or their duly     

 

95      designated proxies), and only those Persons, shall be entitled to give such consent or to   revoke any consent previously given or to take any such action, whether or not such   Persons continue to be Holders after such record date.  No such consent shall be valid or   effective for more than 120 days after such record date.   SECTION 9.05. Notation on or Exchange of Securities.  If an   amendment changes the terms of a Security, the Trustee may require the Holder of the   Security to deliver it to the Trustee.  The Trustee may place an appropriate notation on   the Security 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 Security shall   issue and the Trustee shall authenticate a new Security that reflects the changed terms.    Failure to make the appropriate notation or to issue a new Security shall not affect the   validity of such amendment.   SECTION 9.06. Trustee To Sign Amendments.  The Trustee shall   sign any amendment authorized pursuant to this Article 9 if the amendment does not   adversely affect the rights, duties, liabilities or immunities of the Trustee.  If it does, the   Trustee may but need not sign it.  In signing such amendment the Trustee shall be entitled   to receive indemnity reasonably satisfactory to it and to receive, and (subject to Section   7.01) shall be fully protected in relying upon, an Officers’ Certificate and an Opinion of   Counsel stating that such amendment is authorized or permitted by this Indenture and that   such amendment is the legal, valid and binding obligation of the Company, enforceable   against the Company in accordance with its terms, and complies with the provisions of   the Indenture. Such Opinion of Counsel shall be at the expense of the Company.   SECTION 9.07. Payment for Consent.  Neither the Company nor   any Affiliate of the Company shall, directly or indirectly, pay or cause to be paid any   consideration, whether by way of interest, fee or otherwise, to any Holder for or as an   inducement to any consent, waiver or amendment of any of the terms or provisions of this   Indenture or the Securities unless such consideration is offered to all Holders and is paid   to all Holders that so consent, waive or agree to amend in the time frame set forth in   solicitation documents relating to such consent, waiver or agreement.   Article 10      Subsidiary Guarantees   SECTION 10.01. Guarantees.  Each Subsidiary Guarantor hereby   unconditionally and irrevocably guarantees, jointly and severally, to each Holder and to   the Trustee and its successors and assigns (a) the full and punctual payment of principal   of and interest on the Securities when due, whether at maturity, by acceleration, by   redemption or otherwise, and all other monetary Obligations of the Company to the   Noteholder Secured Parties under this Indenture, the Securities, the Intercreditor   Agreement and the Security Documents and (b) the full and punctual performance within   applicable grace periods of all other obligations of the Company under this Indenture, the   Securities, the Intercreditor Agreement and the Security Documents (all the foregoing   being hereinafter collectively called the “Guaranteed Obligations”).  Each Subsidiary     

 

96      Guarantor further agrees that the Guaranteed Obligations may be extended or renewed, in   whole or in part, without notice or further assent from such Subsidiary Guarantor and that   such Subsidiary Guarantor will remain bound under this Article 10 notwithstanding any   extension or renewal of any Guaranteed Obligation.   Each Subsidiary Guarantor waives presentation to, demand of, payment   from and protest to the Company of any of the Guaranteed Obligations and also waives   notice of protest for nonpayment.  Each Subsidiary Guarantor waives notice of any   default under the Securities or the Guaranteed Obligations.  The obligations of each   Subsidiary Guarantor hereunder shall not be affected by (1) the failure of any Holder or   the Trustee to assert any claim or demand or to enforce any right or remedy against the   Company or any other Person (including any Subsidiary Guarantor) under this Indenture,   the Securities or any other agreement or otherwise; (2) any extension or renewal of any   thereof; (3) any rescission, waiver, amendment or modification of any of the terms or   provisions of this Indenture, the Securities or any other agreement; (4) the release of any   security held by any Holder or the Trustee for the Guaranteed Obligations or any of them;   (5) the failure of any Holder or the Trustee to exercise any right or remedy against any   other guarantor of the Guaranteed Obligations; or (6) except as set forth in Section 10.06,   any change in the ownership of such Subsidiary Guarantor.   Each Subsidiary Guarantor further agrees that its Subsidiary Guarantee   herein constitutes a guarantee of payment, performance and compliance when due (and   not a guarantee of collection) and waives any right to require that any resort be had by   any Holder or the Trustee to any security held for payment and performance of the   Guaranteed Obligations.   Except as expressly set forth in Sections 8.01(a), 8.01(b), 10.02 and 10.06,   the obligations of each Subsidiary Guarantor hereunder shall not be subject to any   reduction, limitation, impairment or termination for any reason, including any claim of   waiver, release, surrender, alteration or compromise, and shall not be subject to any   defense of setoff, counterclaim, recoupment or termination whatsoever or by reason of   the invalidity, illegality or unenforceability of the Guaranteed Obligations or otherwise.    Without limiting the generality of the foregoing, the obligations of each Subsidiary   Guarantor herein shall not be discharged or impaired or otherwise affected by the failure   of any Holder or the Trustee to assert any claim or demand or to enforce any remedy   under this Indenture, the Securities or any other agreement, by any waiver or   modification of any thereof, by any default, failure or delay, willful or otherwise, in the   performance of the obligations, or by any other act or thing or omission or delay to do   any other act or thing which may or might in any manner or to any extent vary the risk of   such Subsidiary Guarantor or would otherwise operate as a discharge of such Subsidiary   Guarantor as a matter of law or equity.   Each Subsidiary 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 or interest on any Guaranteed Obligation is rescinded or   must otherwise be restored by any Holder or the Trustee upon the bankruptcy or   reorganization of the Company or otherwise.     

 

97      In furtherance of the foregoing and not in limitation of any other right   which any Holder or the Trustee has at law or in equity against any Subsidiary Guarantor   by virtue hereof, upon the failure of the Company to pay the principal of or interest on   any Guaranteed Obligation when and as the same shall become due, whether at maturity,   by acceleration, by redemption or otherwise, or to perform or comply with any other   Guaranteed Obligation, each Subsidiary 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 Holders or the Trustee an amount equal to the sum of (A) the unpaid amount of such   Guaranteed Obligations, (B) accrued and unpaid interest on such Guaranteed Obligations   (but only to the extent not prohibited by law) and (C) all other monetary Guaranteed   Obligations of the Company to the Holders and the Trustee.   Each Subsidiary Guarantor agrees that, as between it, on the one hand, and   the Holders and the Trustee, on the other hand, (i) the maturity of the Guaranteed   Obligations hereby may be accelerated as provided in Article 6 for the purposes of such   Subsidiary Guarantor’s Subsidiary Guarantee herein, notwithstanding any stay, injunction   or other prohibition preventing such acceleration in respect of the Guaranteed Obligations   guaranteed hereby, and (ii) in the event of any declaration of acceleration of such   Guaranteed Obligations as provided in Article 6, such Guaranteed Obligations (whether   or not due and payable) shall forthwith become due and payable by such Subsidiary   Guarantor for the purposes of this Section.   Each Subsidiary Guarantor also agrees to pay any and all costs and   expenses (including reasonable attorneys’ fees) incurred by the Trustee or any Holder in   enforcing any rights under this Section.   SECTION 10.02. Limitation on Liability.  Any term or provision of   this Indenture to the contrary notwithstanding, the maximum aggregate amount of the   Guaranteed Obligations guaranteed hereunder by any Subsidiary Guarantor shall not   exceed the maximum amount that can be hereby guaranteed without rendering this   Indenture, as it relates to such Subsidiary Guarantor, voidable under applicable law   relating to fraudulent conveyance or fraudulent transfer or similar laws affecting the   rights of creditors generally.   SECTION 10.03. Successors and Assigns.  This Article 10 shall be   binding upon each Subsidiary Guarantor and its successors and assigns and shall enure to   the benefit of the successors and assigns of the Trustee and the Holders and, in the event   of any transfer or assignment of rights by any Holder or the Trustee, the rights and   privileges conferred upon that party in this Indenture and in the Securities shall   automatically extend to and be vested in such transferee or assignee, all subject to the   terms and conditions of this Indenture.   SECTION 10.04. No Waiver.  Neither a failure nor a delay on the part   of either the Trustee or the Holders in exercising any right, power or privilege under this   Article 10 shall operate as a waiver thereof, nor shall a single or partial exercise thereof   preclude any other or further exercise of any right, power or privilege.  The rights,   remedies and benefits of the Trustee and the Holders herein expressly specified are     

 

98      cumulative and not exclusive of any other rights, remedies or benefits which either may   have under this Article 10 at law, in equity, by statute or otherwise.   SECTION 10.05. Modification.  No modification, amendment or   waiver of any provision of this Article 10, nor the consent to any departure by any   Subsidiary Guarantor therefrom, shall in any event be effective unless the same shall be   in writing and signed by the Trustee, and then such waiver or consent shall be effective   only in the specific instance and for the purpose for which given.  No notice to or demand   on any Subsidiary Guarantor in any case shall entitle such Subsidiary Guarantor to any   other or further notice or demand in the same, similar or other circumstances.   SECTION 10.06. Release of Subsidiary Guarantor.  A Subsidiary   Guarantor will be released from its obligations under this Article 10:   (1) upon the sale, transfer or other disposition (including by way of   consolidation or merger) of a Subsidiary Guarantor, including the sale or   disposition of Capital Stock of a Subsidiary Guarantor following which such   Subsidiary Guarantor is no longer a Subsidiary;   (2) upon the sale, transfer or disposition of all or substantially all the   assets of such Subsidiary Guarantor;   (3) upon the designation of such Subsidiary Guarantor as an   Unrestricted Subsidiary in accordance with the terms of this Indenture;   (4) upon  the release or discharge of the Indebtedness that would have   required such Subsidiary Guarantor to enter into a Guarantee Agreement pursuant   to Section 4.12 other than a release or discharge by or as a result of the payment   of such Indebtedness;   (5) upon defeasance of the Securities pursuant to Article 8; or   (6) upon the satisfaction and discharge of the Company’s obligations   under this Indenture;   provided, however, that in the case of clauses (1) and (2) above, (i) such sale or   other disposition is made to a Person other than the Company or an Affiliate of   the Company, (ii) such sale or disposition is otherwise permitted by this Indenture   and (iii) the Company provides an Officers’ Certificate to the Trustee to the effect   that the Company will comply with its obligations under Section 4.06.     At the request of the Company, the Trustee shall execute and deliver an appropriate   instrument evidencing such release.   SECTION 10.07. Contribution.  Each Subsidiary Guarantor that   makes a payment under its Subsidiary Guarantee shall be entitled upon payment in full of   all Guaranteed Obligations under this Indenture to a contribution from each other   Subsidiary Guarantor in an amount equal to such other Subsidiary Guarantor’s pro rata     

 

99      portion of such payment based on the respective net assets of all the Subsidiary   Guarantors at the time of such payment determined in accordance with GAAP.   Article 11      Security Documents   SECTION 11.01. Collateral and Security Documents.  (a) To secure   the due and punctual payment and performance of the Obligations of the Company and   the Subsidiary Guarantors to the Noteholder Secured Parties under this Indenture, the   Securities, the Subsidiary Guarantees, the Intercreditor Agreement and the Security   Documents, the Company, the Subsidiary Guarantors and the Noteholder Collateral   Agent (on behalf of the Holders) have entered into, or will enter into, one or more   Security Documents creating and establishing the Liens that secure such Obligations.    The Trustee, the Noteholder Collateral Agent and the Company hereby acknowledge and   agree that the Noteholder Collateral Agent holds the Collateral in trust on behalf of and   for the benefit of the Noteholder Secured Parties, in each case pursuant to the terms of the   Security Documents and subject to the terms of the Intercreditor Agreement.     (b) Each Holder, by accepting a Security, agrees to all of the terms and   provisions of the Security Documents and the Intercreditor Agreement, as the same may   be amended from time to time pursuant to the terms thereof and this Indenture, and   authorizes and directs the Noteholder Collateral Agent to enter into the Security   Documents and the Intercreditor Agreement and to perform its obligations and exercise   its rights thereunder in accordance therewith; provided, however, that if any provisions of   the Security Documents limit, qualify or conflict with the duties imposed by the   provisions of the TIA, the TIA will control.  The Trustee has appointed the Noteholder   Collateral Agent as its agent under the Security Documents and the Intercreditor   Agreement, and the Noteholder Collateral Agent is thereby authorized to act on behalf of   the Trustee, with full authority and powers of the Trustee thereunder.   SECTION 11.02. Recording; Annual Opinions; Reports.  (a)  The   Company shall deliver to the Noteholder Collateral Agent copies of all documents   required to be filed pursuant to the Security Documents, and shall do or cause to be done   all such acts and things as may be reasonably required by the next sentence of this   Section 11.02, to assure and confirm to the Noteholder Collateral Agent the first-priority   Lien in the Notes Priority Collateral and the second-priority Lien in the ABL Priority   Collateral contemplated hereby or by the Security Documents or any part thereof, as from   time to time constituted, so as to render the same available for the security and benefit of   this Indenture and of the Securities secured hereby, according to the intent and purposes   herein expressed.  The Company shall, and shall cause its Subsidiaries to, take any and all   actions and make all filings, registrations and recordations (including the filing of   Uniform Commercial Code financing statements, continuation statements and   amendments thereto) in all such jurisdictions reasonably required to cause the Security   Documents to create, perfect and maintain, as security for the Obligations of the   Company and the Subsidiary Guarantors to the Noteholder Secured Parties under this   Indenture, the Securities, the Subsidiary Guarantees, the Intercreditor Agreement and the     

 

100      Security Documents, a valid and enforceable perfected Lien on all of the Collateral   (subject to the terms of the Intercreditor Agreement and the Security Documents), in   favor of the Noteholder Collateral Agent for the benefit of the Noteholder Secured Parties   subject to no Liens other than Liens permitted pursuant to this Indenture; provided that,   with respect to Collateral constituting Trucks, no recording, registration or filing of this   Indenture, the Intercreditor Agreement, any Security Document or any financing   statement or other notice shall be required other than (i) the filing of financing statements   under the Uniform Commercial Code as in effect in the appropriate jurisdictions and (ii)   the recordation of the Lien in favor of the Noteholder Collateral Agent, for the benefit of   the Noteholder Secured Parties, on certificates of titles (or, if applicable, in corresponding   electronic title records) with respect to Specified Trucks.   The Company and the Subsidiary Guarantors will from time to time   promptly pay and discharge all recording or filing fees, charges and taxes relating to the   filing or registration of this Indenture and the Security Documents, any amendments   thereto and any other instruments of further assurance.   (a) The Company and the Subsidiary Guarantors shall furnish to the   Noteholder Collateral Agent or the Trustee:   (1) on the Issue Date or as soon as practicable after the execution and   delivery of this Indenture (but in no event later than 120 days following the Issue   Date), an Opinion of Counsel either (A) to the effect that, in the opinion of such   counsel, this Indenture, the Security Documents and all other instruments of   further assurance or assignment have been properly recorded and filed to the   extent necessary to make effective the Lien created by such Security Documents   and reciting the details of such action, or (B) to the effect that, in the opinion of   such counsel, no such action is necessary to perfect such Lien; and   (2) on or before December 1 in each year beginning with December 1,   2014, an Opinion of Counsel, dated as of such date, either (A) to the effect that, in   the opinion of such counsel, such action has been taken with respect to the   recordings, filings, re-recordings, and re-filings of this Indenture, the Security   Documents and all financing statements, continuation statements or other   instruments of further assurance as is necessary to maintain the Lien of this   Indenture and the Security Documents and reciting the details of such action or   referencing to prior Opinions of Counsel in which such details are given, or (B) to   the effect that, in the opinion of such counsel, no such action is necessary to   maintain such Lien;   provided that, in each case, in determining whether all actions with respect   to recordings, registrations, filings, re-recordings, re-registrations and re-filings   necessary in order to make effective or maintain the Lien intended to be created   by this Indenture and the Security Documents have been properly completed,   counsel (who may be of counsel to the Company) (i) with respect to Collateral   that does not constitute Material Real Property or Intellectual Property (as defined   in the Intercreditor Agreement) shall not be required to review any law, rule or     

 

101      regulation other than the Uniform Commercial Code as in effect in the relevant   jurisdiction and (ii) with respect to Collateral that constitutes Trucks, prior to the   Discharge of ABL Obligations, shall not be required to review certificate of title   statutes or other laws, rules or regulations governing Liens on such assets, shall   not be required to conduct any due diligence investigation other than a review of   the face of the applicable certificates of title (or corresponding electronic records),   and may assume that such Trucks are subject to a perfected first-priority Lien in   favor of the Bank Collateral Agent and constitute “Specified Trucks” based solely   on such review of the face of the applicable certificates of title (or corresponding   electronic records).   SECTION 11.03. Non-Impairment of Liens.  Any release of   Collateral permitted by Section 11.04 shall be deemed not to impair the Liens under this   Indenture and the Security Documents in contravention thereof.   SECTION 11.04. Release of Collateral.  (a) Collateral may be   released from the Lien created by the Security Documents at any time or from time to   time in accordance with the provisions of the Security Documents, the Intercreditor   Agreement and this Indenture.  Notwithstanding anything to the contrary in any Security   Document, the Liens on the Collateral securing the Securities shall be immediately   released with respect to the relevant Collateral under any one of more of the following   circumstances:   (1) to enable the Company or any Subsidiary Guarantor to sell,   exchange or otherwise dispose of any of the Collateral to the extent not prohibited   under Section 4.06;   (2) in the case of a Subsidiary Guarantor that is released from its   Subsidiary Guarantee with respect to the Securities, the release of the property   and assets of such Subsidiary Guarantor;   (3) pursuant to an amendment or waiver in accordance with Article 9;   (4) pursuant to the terms of the Intercreditor Agreement;    (5) if the Securities have been discharged or defeased pursuant to   Article 8; or   (6) upon the payment in full of the principal of, together with accrued   and unpaid interest on, the Securities and all other Obligations of the Company   and the Subsidiary Guarantors to the Noteholder Secured Parties under this   Indenture, the Subsidiary Guarantees, the Intercreditor Agreement and the   Security Documents that are then due and payable (other than contingent   indemnification obligations, if any, that, pursuant to the terms of this Indenture   and the Security Documents, survive the termination thereof);    provided that in the case of any release in whole pursuant to clauses (1), (2) and   (3) above, all amounts owing at such time to the Trustee under this Indenture, the     

 

102      Securities, the Subsidiary Guarantees, the Security Documents and the   Intercreditor Agreement have been paid (other than contingent indemnification   obligations, if any, that, pursuant to the terms of this Indenture and the Security   Documents, survive the termination thereof).   (b) The second-priority Lien on the ABL Priority Collateral securing   the Securities and the Subsidiary Guarantees will terminate and be released automatically   if the first-priority Liens on the ABL Priority Collateral are released by the Bank   Collateral Agent (unless, at the time of such release of such first-priority Liens, an Event   of Default shall have occurred and be continuing) other than (i) in connection with a   Discharge of ABL Obligations under the Credit Agreement or (ii) to the extent prohibited   under this Indenture.  Notwithstanding the existence of an Event of Default, the second-   priority Lien on the ABL Priority Collateral securing the Securities and the Subsidiary   Guarantees shall also terminate and be released automatically and unconditionally to the   extent the first-priority Liens on the ABL Priority Collateral are released by the Bank   Collateral Agent in connection with a sale, transfer or disposition of ABL Priority   Collateral that occurs in connection with the foreclosure of, or other exercise of remedies   with respect to, ABL Priority Collateral by the Bank Collateral Agent (except with   respect to any proceeds of such sale, transfer or disposition).   (c) To the extent applicable, the Company shall cause § 313(b) of the   TIA, relating to reports, and § 314(d) of the TIA, relating to the release of property or   securities from the Lien hereof and of the Security Documents to be complied with.  Any   certificate or opinion required by TIA § 314(d) may be made by an officer or legal   counsel, as applicable, of the Company except in the cases where TIA § 314(d) requires   that such certificate or opinion be made by an independent person, which Person will be   an independent engineer, appraiser or other expert selected by or reasonably satisfactory   to the Trustee. Notwithstanding anything to the contrary in this Section 11.04, the   Company shall not be required to comply with all or any portion of TIA § 314(d) if it   reasonably determines that, under the terms of TIA § 314(d) or any interpretation or   guidance as to the meaning thereof of the SEC and its staff, including “no action” letters   or exemptive orders, all or any portion of TIA § 314(d) is inapplicable to any release or   series of releases of Collateral.     (d) In addition, and without limiting the generality of the foregoing,   the Subsidiaries of the Company may, among other things, without any release or consent   by the Trustee (and without the delivery of any Officers’ Certificate or any other   documents under this Indenture, except as specified in this Section 11.04, but otherwise   in compliance with the covenants of this Indenture and the Security Documents), conduct   ordinary course activities with respect to the Collateral, including (i) selling or otherwise   disposing of, in any transaction or series of related transactions, any property subject to   the Liens created by this Indenture or any of the Security Documents which has become   worn out, defective or obsolete or not used or useful in the business; (ii) abandoning,   terminating, canceling, releasing or making alterations in or substitutions of any leases or   contracts subject to the Liens created by the Security Documents; (iii) surrendering or   modifying any franchise, license or permit subject to the Liens created by the Security   Documents which it may own or under which it may be operating; (iv) altering, repairing,     

 

103      replacing or changing the location or position of and adding to its structures, machinery,   systems, equipment, fixtures and appurtenances; (v) granting a license of any intellectual   property; (vi) selling, transferring or otherwise disposing of inventory in the ordinary   course of business; (vii) collecting accounts receivable in the ordinary course of business   or selling, liquidating, factoring or otherwise disposing of accounts receivable in the   ordinary course of business; (viii) making cash payments in the ordinary course of   business (including for the repayment of Indebtedness or interest and in connection with   the Company’s cash management activities) from cash that is at any time part of the   Collateral that are not otherwise prohibited by this Indenture or the Security Documents;   and (ix) abandoning any intellectual property which is no longer used or useful in the   Company’s business.   (e) Starting with the fiscal year ending December 31, 2014, the   Company shall deliver to the Trustee within 30 calendar days following the end of the   fiscal year (or such later date as the Trustee shall agree), an Officers’ Certificate to the   effect that all releases and withdrawals during the preceding fiscal year (or since the date   of this Indenture, in the case of the first such certificate) in which no release or consent of   the Trustee was obtained in the ordinary course of the Company’s and its Subsidiaries’   business were not prohibited by this Indenture. Notwithstanding any of the foregoing to   the contrary, the Trustee shall execute and deliver to the Company all documents   reasonably requested to evidence any such release of Collateral without any   representation or warranty of any kind. In addition, in lieu of releasing the Liens created   by any of the mortgages on Material Real Property, the Trustee or the Noteholder   Collateral Agent will, at the request of the Company, to the extent necessary to facilitate   future savings in connection with mortgage recording taxes in any state that imposes such   taxes, assign such Lien to a new lender or collateral agent without any representation or   warranty of any kind.   SECTION 11.05. Suits To Protect the Collateral.  Subject to the   provisions of the Security Documents and the Intercreditor Agreement, the Trustee shall   have power to institute and to maintain such suits and proceedings as it may deem   expedient to prevent any impairment of the Collateral by any acts which may be unlawful   or in violation of any of the Security Documents, the Intercreditor Agreement or this   Indenture, and such suits and proceedings as the Trustee, in its sole discretion, may deem   expedient to preserve or protect its interests and the interests of the Holders in the   Collateral (including power to institute and maintain suits or proceedings to restrain the   enforcement of or compliance with any legislative or other governmental enactment, rule   or order that may be unconstitutional or otherwise invalid if the enforcement of, or   compliance with, such enactment, rule or order would impair the Lien on the Collateral or   be prejudicial to the interests of the Holders or the Trustee).   SECTION 11.06. Authorization of Receipt of Funds by the Trustee   Under the Security Documents.  Subject to the provisions of the Intercreditor Agreement,   the Trustee is authorized to receive any funds for the benefit of the Holders distributed   under the Security Documents, and to make further distributions of such funds to the   Holders according to the provisions of this Indenture.     

 

104      SECTION 11.07. Purchaser Protected.  In no event shall any   purchaser in good faith of any property purported to be released hereunder or under any   Security Document be bound to ascertain the authority of the Trustee to execute the   release or to inquire as to the satisfaction of any conditions required by the provisions   hereof for the exercise of such authority or to see to the application of any consideration   given by such purchaser or other transferee; nor shall any purchaser or other transferee of   any property or rights permitted by this Article 11 to be sold be under obligation to   ascertain or inquire into the authority of the Company or the applicable Subsidiary   Guarantor to make any such sale or other transfer.   SECTION 11.08. Powers Exercisable by Receiver or Trustee.  In case   the Collateral shall be in the possession of a receiver or trustee, lawfully appointed, the   powers conferred in this Article 11 upon the Company or a Subsidiary Guarantor with   respect to the release, sale or other disposition of such property may be exercised by such   receiver or trustee, and an instrument signed by such receiver or trustee shall be deemed   the equivalent of any similar instrument of the Company or a Subsidiary Guarantor or of   any officer or officers thereof required by the provisions of this Article 11; and if the   Trustee shall be in the possession of the Collateral under any provision of this Indenture,   then such powers may be exercised by the Trustee.   SECTION 11.09. Release Upon Termination of the Company’s   Obligations.  In the event that the Company delivers to the Trustee an Officers’   Certificate certifying that (i) payment in full of the principal of, together with accrued and   unpaid interest on, the Securities and all other Obligations of the Company and the   Subsidiary Guarantors to the Noteholder Secured Parties under this Indenture, the   Securities, the Subsidiary Guarantees, the Intercreditor Agreement and the Security   Documents that are due and payable at or prior to the time such principal, together with   accrued and unpaid interest, are paid (other than contingent indemnification obligations,   if any, that, pursuant to the terms of this Indenture and the Security Documents, survive   the termination thereof) or (ii) the Company shall have exercised its legal defeasance   option or its covenant defeasance option, in each case in compliance with the provisions   of Article 8, and an Opinion of Counsel stating that all conditions precedent to the   execution and delivery of such notice by the Trustee have been satisfied, the Trustee shall   deliver to the Company and the Noteholder Collateral Agent a notice stating that the   Trustee, on behalf of the Holders, disclaims and gives up any and all rights it has in or to   the Collateral (other than with respect to funds held by the Trustee pursuant to Article 8),   and any rights it has under the Security Documents, and upon receipt by the Noteholder   Collateral Agent of such notice, the Noteholder Collateral Agent shall be deemed not to   hold a Lien in the Collateral on behalf of the Trustee and shall do or cause to be done all   acts reasonably necessary to release such Lien as soon as is reasonably practicable.   SECTION 11.10. Noteholder Collateral Agent.   (a) By accepting a Security, each Holder shall be deemed to have   irrevocably appointed the Noteholder Collateral Agent to act as its agent under the   Security Documents and the Intercreditor Agreement and to have irrevocably authorized   the Noteholder Collateral Agent to (i) perform the duties and exercise the rights, powers     

 

105      and discretions that are specifically given to it under the Security Documents, the   Intercreditor Agreement or other documents in respect of the Securities to which it is a   party, together with any other incidental rights, powers and discretions; and (ii) execute   each document expressed to be executed by the Noteholder Collateral Agent on its   behalf.   (b) The Noteholder Collateral Agent is authorized and empowered to   appoint one or more subagents or co-collateral agents as it deems necessary or   appropriate.   (c) The Noteholder Collateral Agent shall have all the rights and   protection provided in the Security Documents as well as the rights and protections   afforded to the Trustee in Sections 7.02 and 7.07; provided, however, that the Company   shall not reimburse any expense or indemnify against any loss, liability or expense   incurred by the Noteholder Collateral Agent through the Noteholder Collateral Agent's   own willful misconduct, gross negligence or bad faith.   (d) Subject to Section 7.01, none of the Trustee, the Noteholder   Collateral Agent or any of their respective officers, directors, employees, attorneys or   agents shall be responsible or liable for the existence, genuineness, value or protection of   any Collateral, for the legality, enforceability, effectiveness or sufficiency of the Security   Documents, for the creation, perfection, priority, sufficiency or protection of any Lien   securing the Security or any defect or deficiency as to any such matters.   (e) Subject to the Security Documents, except as directed by the   Trustee as required or permitted by this Indenture, the Holders acknowledge that the   Noteholder Collateral Agent shall not be obligated:   (1)  to act upon directions purported to be delivered to it by any other   Person;   (2) to foreclose upon or otherwise enforce any Lien securing the   Securities; or   (3)  to take any other action whatsoever with regard to any or all Liens   securing the Securities, the Security Documents, the Intercreditor Agreement or   the Collateral.   (f) In acting as Noteholder Collateral Agent, co-collateral agent or   sub-collateral agent, the Noteholder Collateral Agent, each co-collateral agent and each   sub-collateral agent may rely upon and enforce each and all of the rights, powers,   immunities, indemnities and benefits of the Trustee under Article 7.   SECTION 11.11. Designations.  Except as provided in the next   sentence, for purposes of the provisions hereof and the Intercreditor Agreement requiring   the Company to designate Indebtedness for the purposes of the terms “Lenders Debt” and   "Other Pari Passu Lien Obligations" or any other such designations hereunder or under   the Intercreditor Agreement, any such designation shall be sufficient if the relevant     

 

106      designation is set forth in writing, signed on behalf of the Company by an Officer and   delivered to the Trustee, the Noteholder Collateral Agent and the Bank Collateral Agent.    For all purposes hereof and the Intercreditor Agreement, the Company hereby designates   the Obligations pursuant to the Credit Agreement as “Lenders Debt.”   Article 12      Miscellaneous   SECTION 12.01. Trust Indenture Act Controls.  If any provision of   this Indenture limits, qualifies or conflicts with another provision which is required to be   included in this Indenture by the TIA, the required provision shall control.   SECTION 12.02. Notices.  Any notice or communication shall be in   writing and delivered in person or mailed by first-class mail addressed as follows:   if to the Company or any Subsidiary Guarantor:   U.S. Concrete, Inc.   331 N. Main Street   Euless, Texas 76039   Attention of General Counsel and Chief Financial Officer   if to the Trustee:   U.S. Bank National Association   333 Commerce Street, Suite 800   Nashville, Tennessee 37201   Attention of Corporate Trust Department – U.S. Concrete   if to the Noteholder Collateral Agent:   U.S. Bank National Association   333 Commerce Street, Suite 800   Nashville, Tennessee 37201   Attention of Corporate Trust Department – U.S. Concrete   The Company, any Subsidiary Guarantor, the Trustee or the Noteholder   Collateral Agent by notice to the other may designate additional or different addresses for   subsequent notices or communications.  Notices to the Trustee and the Noteholder   Collateral Agent shall be deemed to have been given when received.   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.     

 

107      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.   SECTION 12.03. Communication by Holders with Other Holders.    Holders may communicate pursuant to TIA § 312(b) with other Holders with respect to   their rights under this Indenture or the Securities.  The Company, any Subsidiary   Guarantor, the Trustee, the Noteholder Collateral Agent, the Registrar and anyone else   shall have the protection of TIA § 312(c).   SECTION 12.04. Certificate and Opinion as to Conditions Precedent.    Upon any request or application by the Company to the Trustee to take or refrain from   taking any action under this Indenture, the Company shall furnish to the Trustee:   (1) an Officers’ Certificate in form and substance reasonably   satisfactory to the Trustee stating that, in the opinion of the signers, all conditions   precedent, if any, provided for in this Indenture relating to the proposed action   have been complied with; and   (2) an Opinion of Counsel in form and substance reasonably   satisfactory to the Trustee stating that, in the opinion of such counsel, all such   conditions precedent have been complied with.   SECTION 12.05. Statements Required in Certificate or Opinion.    Each certificate or opinion with respect to compliance with a covenant or condition   provided for in this Indenture shall include:   (1) a statement that the individual making such certificate or opinion   has read such covenant or condition;   (2) a brief statement as to the nature and scope of the examination or   investigation upon which the statements or opinions contained in such certificate   or opinion are based;   (3) a statement that, in the opinion of such individual, he has made   such examination or investigation as is necessary to enable him to express an   informed opinion as to whether or not such covenant or condition has been   complied with; and   (4) a statement as to whether or not, in the opinion of such individual,   such covenant or condition has been complied with.   SECTION 12.06. When Securities Disregarded.  In determining   whether the Holders of the required principal amount of Securities have concurred in any   direction, waiver or consent, Securities owned by the Company or by any Person directly   or indirectly controlling or controlled by or under direct or indirect common control with   the Company shall be disregarded and deemed not to be outstanding, except that, for the     

 

108      purpose of determining whether the Trustee shall be protected in relying on any such   direction, waiver or consent, only Securities which the Trustee knows are so owned shall   be so disregarded.  Also, subject to the foregoing, only Securities outstanding at the time   shall be considered in any such determination.   SECTION 12.07. 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.   SECTION 12.08. Legal Holidays.  If a payment date is a Legal   Holiday, payment shall be made on the next succeeding day that is not a Legal Holiday,   and no interest shall accrue for the intervening period.  If a regular record date is a Legal   Holiday, the record date shall not be affected.   SECTION 12.09. Governing Law.  This Indenture, the Intercreditor   Agreement, the Security Documents and the Securities shall be governed by, and   construed in accordance with, the laws of the State of New York.   SECTION 12.10. No Recourse Against Others.  A director, officer,   employee or stockholder, as such, of the Company or any Subsidiary Guarantor shall not   have any liability for any obligations of the Company under the Securities or this   Indenture or of such Subsidiary Guarantor under its Subsidiary Guarantee, the Security   Documents or this Indenture or for any claim based on, in respect of or by reason of such   obligations or their creation.  By accepting a Security, each Holder shall waive and   release all such liability.  The waiver and release shall be part of the consideration for the   issue of the Securities.   SECTION 12.11. Successors.  All agreements of each of the   Company and each Subsidiary Guarantor in this Indenture and the Securities shall bind   its successors.  All agreements of each of the Trustee and the Noteholder Collateral   Agent in this Indenture shall bind its successors.   SECTION 12.12. Multiple Originals.  The parties may sign any   number of copies of this Indenture.  Each signed copy shall be an original, but all of them   together represent the same agreement.  One signed copy is enough to prove this   Indenture.   SECTION 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. Intercreditor Agreement Governs.  Reference is   made to the Intercreditor Agreement.   Each Holder, by its acceptance of a Security, (a)   consents to the subordination of Liens provided for in the Intercreditor Agreement, (b)   agrees that it will be bound by and will take no actions contrary to the provisions of the   Intercreditor Agreement and (c) authorizes and instructs the Noteholder Collateral Agent   to enter into the Intercreditor Agreement as Noteholder Collateral Agent and on behalf of     

 

109      such Holder.   The foregoing provisions are intended as an inducement to the lenders   under the Credit Agreement to extend credit and such lenders are intended third party   beneficiaries of such provisions and the provisions of the Intercreditor Agreement.   IN WITNESS WHEREOF, the parties have caused this Indenture to be   duly executed as of the date first written above.     U.S. CONCRETE, INC.    By: /s/ William M. Brown   Name:/s/ William M. BrownTitle: Senior Vice President and Chief Financial Officer            ALBERTA INVESTMENTS, INC.   ALLIANCE HAULERS, INC.   ATLAS REDI-MIX, LLC   ATLAS-TUCK CONCRETE, INC.   BEALL CONCRETE ENTERPRISES, LLC   BEALL INDUSTRIES, INC.   BEALL INVESTMENT CORPORATION, INC.   BEALL MANAGEMENT, INC.   EASTERN CONCRETE MATERIALS, INC.   HAMBURG QUARRY LIMITED LIABILITY     COMPANY   REDI-MIX CONCRETE, L.P.   REDI-MIX GP, LLC   REDI-MIX, LLC   U.S. CONCRETE ON-SITE, INC.   USC PAYROLL, INC.         By:_/s/ Kevin R. Kohutek __________________   Name: Kevin R. Kohutek   Title: President     

 

110      AMERICAN CONCRETE PRODUCTS, INC.   BODE CONCRETE LLC   BODE GRAVEL CO.   BRECKENRIDGE READY MIX, INC.   CENTRAL CONCRETE SUPPLY CO., INC.   CENTRAL PRECAST CONCRETE, INC.   INGRAM CONCRETE, LLC   KURTZ GRAVEL COMPANY   LOCAL CONCRETE SUPPLY & EQUIPMENT, LLC   MASTER MIX CONCRETE, LLC   MASTER MIX, LLC   MG, LLC   NYC CONCRETE MATERIALS, LLC   PEBBLE LANE ASSOCIATES, LLC   RIVERSIDE MATERIALS, LLC   SAN DIEGO PRECAST CONCRETE, INC.   SIERRA PRECAST, INC.   SMITH PRE-CAST, INC.   SUPERIOR CONCRETE MATERIALS, INC.   TITAN CONCRETE INDUSTRIES, INC.   USC ATLANTIC, INC.         By:_/s/ Kevin R. Kohutek __________________   Name: Kevin R. Kohutek   Title: Vice President         CONCRETE ACQUISITION IV, LLC   CONCRETE ACQUISITION V, LLC   CONCRETE ACQUISITION VI, LLC   CONCRETE XXXIV ACQUISITION, INC.   CONCRETE XXXV ACQUISITION, INC.   CONCRETE XXXVI ACQUISITION, INC.   U.S. CONCRETE TEXAS HOLDINGS, INC.   USC MANAGEMENT CO., LLC   USC TECHNOLOGIES, INC.         By:_/s/ Kevin R. Kohutek __________________   Name: Kevin R. Kohutek   Title: Treasurer                 

 

111         U.S. BANK NATIONAL ASSOCIATION, as Trustee and as Noteholder Collateral Agent    By: /s/ Wally Jones   Name: Wally JonesTitle: Vice President           

 

      RULE 144A/REGULATION S APPENDIX   PROVISIONS RELATING TO INITIAL SECURITIES,   AND EXCHANGE SECURITIES   1. Definitions   1.1 Definitions   For the purposes of this Appendix the following terms shall have the meanings   indicated below:   “Applicable Procedures” means, with respect to any transfer or transaction   involving a Regulation S Global Security or beneficial interest therein, the rules and   procedures of the Depository for such Regulation S Global Security, to the extent   applicable to such transaction and as in effect from time to time.   “Definitive Security” means a certificated Initial Security or Exchange   Security bearing, if required, the appropriate restricted securities legend set forth in   Section 2.3(e).   “Depository” means The Depository Trust Company, its nominees and   their respective successors.   “Distribution Compliance Period”, with respect to any Securities, means   the period of 40 consecutive days beginning on and including the later of (i) the day on   which such Securities are first offered to Persons other than distributors (as defined in   Regulation S under the Securities Act) in reliance on Regulation S and (ii) the issue date   with respect to such Securities.   “Exchange Securities” means (1) the 8.500% Senior Secured Notes Due   2018 issued pursuant to this Indenture in connection with a Registered Exchange Offer   pursuant to a Registration Rights Agreement and (2) Additional Securities, if any, issued   pursuant to a registration statement filed with the SEC under the Securities Act.    “IAI” means an institutional “accredited investor”, as defined in   Rule 501(a)(1), (2), (3) and (7) of Regulation D under the Securities Act.    “Initial Purchasers” means (1) with respect to the Initial Securities issued   on the Issue Date, J.P. Morgan Securities LLC, Jefferies LLC, Capital One Securities,   Inc. and Mitsubishi UFJ Securities (USA) Inc. and (2) with respect to each issuance of   Additional Securities, the Persons purchasing such Additional Securities under the related   Purchase Agreement.   “Initial Securities” means (1) $200,000,000 aggregate principal amount of   8.500% Senior Secured Notes Due 2018 issued on the Issue Date and (2) Additional     

 

2      Securities, if any, issued in a transaction exempt from the registration requirements of the   Securities Act.    “Purchase Agreement” means (1) with respect to the Initial Securities   issued on the Issue Date, the Purchase Agreement dated November 19, 2013 among the   Company, the Subsidiary Guarantors and J.P. Morgan Securities LLC, as representative   of the Initial Purchasers, and (2) with respect to each issuance of Additional Securities,   the purchase agreement or underwriting agreement among the Company and the Persons   purchasing such Additional Securities.   “QIB” means a “qualified institutional buyer” as defined in Rule 144A.   “Registered Exchange Offer” means the offer by the Company, pursuant   to a Registration Rights Agreement, to certain Holders of Initial Securities, to issue and   deliver to such Holders, in exchange for the Initial Securities, a like aggregate principal   amount of Exchange Securities registered under the Securities Act.   “Registration Rights Agreement” means (1) with respect to the Initial   Securities issued on the Issue Date, the Registration Rights Agreement dated November   22, 2013 among the Company, the Subsidiary Guarantors and J.P. Morgan Securities   LLC, as representative of the Initial Purchasers and (2) with respect to each issuance of   Additional Securities issued in a transaction exempt from the registration requirements of   the Securities Act, the registration rights agreement, if any, among the Company and the   Persons purchasing such Additional Securities under the related Purchase Agreement.   “Rule 144A Securities” means all Securities offered and sold to QIBs in   reliance on Rule 144A.   “Securities” means the Initial Securities and the Exchange Securities,   treated as a single class.   “Securities Act” means the U.S. Securities Act of 1933, as amended.   “Securities Custodian” means the custodian with respect to a Global   Security (as appointed by the Depository), or any successor Person thereto and shall   initially be the Trustee.   “Shelf Registration Statement” means the registration statement issued by   the Company in connection with the offer and sale of Initial Securities pursuant to a   Registration Rights Agreement.   “Transfer Restricted Securities” means Securities that bear or are required   to bear the legend relating to restrictions on transfer relating to the Securities Act set forth   in Section 2.3(e) hereto.   1.2 Other Definitions        

 

3      Term   Defined   in   Section:   “Agent Members” ........................................................................ 2.1(b)   “Global Securities” ...................................................................... 2.1(a)   “IAI Global Security” .................................................................. 2.1(a)   “Regulation S” ............................................................................. 2.1(a)   “Regulation S Global Security” ................................................... 2.1(a)   “Rule 144A”................................................................................. 2.1(a)   “Rule 144A Global Security” ...................................................... 2.1(a)      2. The Securities.   2.1 (a)  Form and Dating.  The Initial Securities will be offered and sold by   the Company pursuant to a Purchase Agreement.  The Initial Securities will be resold   initially only to (i) QIBs in reliance on Rule 144A under the Securities Act   (“Rule 144A”) and (ii) Persons other than U.S. Persons (as defined in Regulation S) in   reliance on Regulation S under the Securities Act (“Regulation S”).  Initial Securities   may thereafter be transferred to, among others, QIBs, IAIs and purchasers in reliance on   Regulation S, subject to the restrictions on transfer set forth herein.  Initial Securities   initially resold pursuant to Rule 144A shall be issued initially in the form of one or more   permanent global Securities in definitive, fully registered form (collectively, the “Rule   144A Global Security”); Initial Securities initially resold pursuant to Regulation S shall   be issued initially in the form of one or more permanent global Securities in definitive,   fully registered form (collectively, the “Regulation S Global Security”); and Initial   Securities subsequently resold to IAIs shall be issued initially in the form of one or more   permanent global Securities in definitive, fully registered form (collectively, the “IAI   Global Security”), in each case without interest coupons and with the global securities   legend and the applicable restricted securities legend set forth in Exhibit 1 hereto, which   shall be deposited on behalf of the purchasers of the Initial Securities represented thereby   with the Securities Custodian and registered in the name of the Depository or a nominee   of the Depository, duly executed by the Company and authenticated by the Trustee as   provided in this Indenture.  Beneficial ownership interests in the Regulation S Global   Security will not be exchangeable for interests in the Rule 144A Global Security, the IAI   Global Security or any other Security prior to the expiration of the Distribution   Compliance Period and then, after the expiration of the Distribution Compliance Period,   may be exchanged for interests in a Rule 144A Global Security or an IAI Global Security   only upon certification in form reasonably satisfactory to the Trustee that (i) beneficial     

 

4      ownership interests in such Regulation S Global Security are owned either by non-U.S.   persons or U.S. persons who purchased such interests in a transaction that did not require   registration under the Securities Act and (ii) in the case of an exchange for an IAI Global   Security, certification that the interest in the Regulation S Global Security is being   transferred to an institutional “accredited investor” under the Securities Act that is an   institutional accredited investor acquiring the securities for its own account or for the   account of an institutional accredited investor.   Beneficial interests in IAI Global Securities may be exchanged for   interests in Rule 144A Global Securities if (1) such exchange occurs in connection with a   transfer of Securities in compliance with Rule 144A and (2) the transferor of the   beneficial interest in the IAI Global Security first delivers to the Trustee a written   certificate (in a form satisfactory to the Trustee) to the effect that the beneficial interest in   the IAI Global Security is being transferred to a Person (a) who the transferor reasonably   believes to be a QIB, (b) purchasing for its own account or the account of a QIB in a   transaction meeting the requirements of Rule 144A, and (c) in accordance with all   applicable securities laws of the States of the United States and other jurisdictions.     Beneficial interests in Rule 144A Global Securities may be exchanged for   an interest in IAI Global Securities if (1) such exchange occurs in connection with a   transfer of the securities in compliance with an exemption under the Securities Act and   (2) the transferor of the Rule 144A Global Security first delivers to the trustee a written   certificate (substantially in the form of Exhibit 2) to the effect that the beneficial interest   in the Rule 144A Global Security is being transferred (a) to an “accredited investor”   within the meaning of 501(a)(1),(2),(3) and (7) under the Securities Act that is an   institutional accredited investor acquiring the securities for its own account or for the   account of such an institutional accredited investor, in each case in a minimum principal   amount of the Securities of $250,000, for investment purposes and not with a view to or   for offer or sale in connection with any distribution in violation of the Securities Act and   (b) in accordance with all applicable securities laws of the States of the United States and   other jurisdictions.     Beneficial interests in a Rule 144A Global Security or an IAI Global   Security may be transferred to a Person who takes delivery in the form of an interest in a   Regulation S Global Security, whether before or after the expiration of the Distribution   Compliance Period, only if the transferor first delivers to the Trustee a written certificate   (in the form provided in this Indenture) to the effect that such transfer is being made in   accordance with Rule 903 or 904 of Regulation S or Rule 144 (if applicable).     The Rule 144A Global Security, the IAI Global Security and the   Regulation S Global Security are collectively referred to herein as “Global Securities”.    The aggregate principal amount of the Global Securities may from time to time be   increased or decreased by adjustments made on the records of the Trustee and the   Depository or its nominee as hereinafter provided.   (b) Book-Entry Provisions.  This Section 2.1(b) shall apply only to a   Global Security deposited with or on behalf of the Depository.     

 

5      The Company shall execute and the Trustee shall, in accordance with this   Section 2.1(b), authenticate and deliver initially one or more Global Securities that   (a) shall be registered in the name of the Depository for such Global Security or Global   Securities or the nominee of such Depository and (b) shall be delivered by the Trustee to   such Depository or pursuant to such Depository’s instructions or held by the Trustee as   custodian for the Depository.   Members of, or participants in, the Depository (“Agent Members”) shall   have no rights under this Indenture with respect to any Global Security held on their   behalf by the Depository or by the Trustee as the custodian of the Depository or under   such Global Security, and the Company, the Trustee and any agent of the Company or the   Trustee shall be entitled to treat the Depository as the absolute owner of such Global   Security for all purposes whatsoever.  Notwithstanding the foregoing, nothing herein   shall prevent the Company, the Trustee or any agent of the Company or the Trustee from   giving effect to any written certification, proxy or other authorization furnished by the   Depository or impair, as between the Depository and its Agent Members, the operation of   customary practices of such Depository governing the exercise of the rights of a holder of   a beneficial interest in any Global Security.   (c) Definitive Securities.  Except as provided in this Section 2.1 or   Section 2.3 or 2.4, owners of beneficial interests in Global Securities shall not be entitled   to receive physical delivery of Definitive Securities.   2.2 Authentication.  The Trustee shall authenticate and deliver:  (1) on the   Issue Date, an aggregate principal amount of $200,000,000 8.500% Senior Secured Notes   Due 2018, (2) from time to time, any Additional Securities for an original issue in an   aggregate principal amount specified in the written order of the Company pursuant to   Section 2.02 of this Indenture; and (3) Exchange Securities for issue only in a Registered   Exchange Offer pursuant to a Registration Rights Agreement, for a like principal amount   of Initial Securities, in each case upon a written order of the Company signed by two   Officers or by an Officer and either an Assistant Treasurer or an Assistant Secretary of   the Company.  Such order shall specify the amount of the Securities to be authenticated   and the date on which the original issue of Securities is to be authenticated and, in the   case of any issuance of Additional Securities pursuant to Section 2.13 of this Indenture,   shall certify that such issuance is in compliance with Section 4.03 of this Indenture.   2.3 Transfer and Exchange.   (a) Transfer and Exchange of Definitive Securities.  When Definitive   Securities are presented to the Registrar with a request:   (x) to register the transfer of such Definitive Securities; or   (y) to exchange such Definitive Securities for an equal principal   amount of Definitive Securities of other authorized denominations,     

 

6      the Registrar shall register the transfer or make the exchange as requested if its   reasonable requirements for such transaction are met; provided, however, that the   Definitive Securities surrendered for transfer or exchange:   (i) shall be duly endorsed or accompanied by a written instrument of   transfer in form reasonably satisfactory to the Company and the Registrar, duly   executed by the Holder thereof or its attorney duly authorized in writing; and   (ii) if such Definitive Securities are required to bear a restricted securities   legend, they are being transferred or exchanged pursuant to an effective   registration statement under the Securities Act, pursuant to Section 2.3(b) or   pursuant to clause (A), (B) or (C) below, and are accompanied by the following   additional information and documents, as applicable:   (A)  if such Definitive Securities are being delivered to the   Registrar by a Holder for registration in the name of such Holder, without   transfer, a certification from such Holder to that effect; or   (B) if such Definitive Securities are being transferred to the   Company, a certification to that effect; or   (C) if such Definitive Securities are being transferred (x)   pursuant to an exemption from registration in accordance with Rule 144A,   Regulation S or Rule 144 under the Securities Act; or (y) in reliance upon   another exemption from the requirements of the Securities Act: (i) a   certification to that effect (in the form set forth on the reverse of the   Security) and (ii) if the Company so requests, an opinion of counsel or   other evidence reasonably satisfactory to it as to the compliance with the   restrictions set forth in the legend set forth in Section 2.3(e)(i).   (b) Restrictions on Transfer of a Definitive Security for a Beneficial   Interest in a Global Security.  A Definitive Security may not be exchanged for a   beneficial interest in a Rule 144A Global Security, an IAI Global Security or a   Regulation S Global Security except upon satisfaction of the requirements set forth   below.  Upon receipt by the Trustee of a Definitive Security, duly endorsed or   accompanied by appropriate instruments of transfer, in form satisfactory to the Trustee,   together with:   (i) certification, in the form set forth on the reverse of the   Security, that such Definitive Security is either (A) being transferred to a   QIB in accordance with Rule 144A, (B) being transferred to an IAI or (C)   being transferred after expiration of the Distribution Compliance Period   by a Person who initially purchased such Security in reliance on   Regulation S to a buyer who elects to hold its interest in such Security in   the form of a beneficial interest in the Regulation S Global Security; and   (ii) written instructions directing the Trustee to make, or to   direct the Securities Custodian to make, an adjustment on its books and     

 

7      records with respect to such Rule 144A Global Security (in the case of a   transfer pursuant to clause (b)(i)(A)), IAI Global Security (in the case of a   transfer pursuant to clause (b)(1)(B)) or Regulation S Global Security (in   the case of a transfer pursuant to clause (b)(i)(C)) to reflect an increase in   the aggregate principal amount of the Securities represented by the Rule   144A Global Security, IAI Global Security or Regulation S Global   Security, as applicable, such instructions to contain information regarding   the Depository account to be credited with such increase,    then the Trustee shall cancel such Definitive Security and cause, or direct the Securities   Custodian to cause, in accordance with the standing instructions and procedures existing   between the Depository and the Securities Custodian, the aggregate principal amount of   Securities represented by the Rule 144A Global Security, IAI Global Security or   Regulation S Global Security, as applicable, to be increased by the aggregate principal   amount of the Definitive Security to be exchanged and shall credit or cause to be credited   to the account of the Person specified in such instructions a beneficial interest in the Rule   144A Global Security, IAI Global Security or Regulation S Global Security, as   applicable, equal to the principal amount of the Definitive Security so canceled.  If no   Rule 144A Global Securities, IAI Global Securities or Regulation S Global Securities, as   applicable, are then outstanding, the Company shall issue and the Trustee shall   authenticate, upon written order of the Company in the form of an Officers’ Certificate of   the Company, a new Rule 144A Global Security, IAI Global Security or Regulation S   Global Security, as applicable, in the appropriate principal amount.   (c) Transfer and Exchange of Global Securities.   (i) The transfer and exchange of Global Securities or   beneficial interests therein shall be effected through the Depository, in   accordance with this Indenture (including applicable restrictions on   transfer set forth herein, if any) and the procedures of the Depository   therefor.  A transferor of a beneficial interest in a Global Security shall   deliver to the Registrar a written order given in accordance with the   Depository’s procedures containing information regarding the participant   account of the Depository to be credited with a beneficial interest in the   Global Security.  The Registrar shall, in accordance with such instructions   instruct the Depository to credit to the account of the Person specified in   such instructions a beneficial interest in the Global Security and to debit   the account of the Person making the transfer the beneficial interest in the   Global Security being transferred.   (ii) If the proposed transfer is a transfer of a beneficial interest   in one Global Security to a beneficial interest in another Global Security,   the Registrar shall reflect on its books and records the date and an increase   in the principal amount of the Global Security to which such interest is   being transferred in an amount equal to the principal amount of the interest   to be so transferred, and the Registrar shall reflect on its books and records     

 

8      the date and a corresponding decrease in the principal amount of the   Global Security from which such interest is being transferred.   (iii)  Notwithstanding any other provisions of this Appendix   (other than the provisions set forth in Section 2.4), a Global Security may   not be transferred as a whole except by the Depository to a nominee of the   Depository or by a nominee of the Depository to the Depository or another   nominee of the Depository or by the Depository or any such nominee to a   successor Depository or a nominee of such successor Depository.   (iv) In the event that a Global Security is exchanged for   Definitive Securities pursuant to Section 2.4 of this Appendix, prior to the   consummation of a Registered Exchange Offer or the effectiveness of a   Shelf Registration Statement with respect to such Securities, such   Securities may be exchanged only in accordance with such procedures as   are substantially consistent with the provisions of this Section 2.3   (including the certification requirements set forth on the reverse of the   Initial Securities intended to ensure that such transfers comply with Rule   144A, Regulation S or another applicable exemption under the Securities   Act, as the case may be) and such other procedures as may from time to   time be adopted by the Company.   (d) Restrictions on Transfer of Regulation S Global Securities.  During   the Distribution Compliance Period, beneficial ownership interests in Regulation S   Global Securities may only be sold, pledged or transferred in accordance with the   Applicable Procedures and only (i) to the Company, (ii) in an offshore transaction in   accordance with Regulation S or (iii) pursuant to an effective registration statement under   the Securities Act, in each case in accordance with any applicable securities laws of any   State of the United States.   (e) Legend.   (i) Except as permitted by the following paragraphs (ii), (iii)   and (iv), each Security certificate evidencing the Global Securities (and all   Securities issued in exchange therefor or in substitution thereof) shall bear   a legend in substantially the following form:   THIS SECURITY HAS NOT BEEN REGISTERED UNDER   THE SECURITIES ACT OF 1933, AS AMENDED (THE   “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY   STATE OR OTHER JURISDICTION. NEITHER THIS   SECURITY NOR ANY INTEREST OR PARTICIPATION   HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,   TRANSFERRED, PLEDGED, ENCUMBERED OR   OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH   REGISTRATION OR UNLESS SUCH TRANSACTION IS   EXEMPT FROM, OR NOT SUBJECT TO, SUCH     

 

9      REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS   ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF   AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR   WHICH IT HAS PURCHASED SECURITIES, TO OFFER,   SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR   TO THE DATE (THE “RESALE RESTRICTION   TERMINATION DATE”) THAT IS [IN THE CASE OF RULE   144A NOTES: ONE YEAR AFTER THE LATER OF THE   ORIGINAL ISSUE DATE HEREOF, THE ORIGINAL ISSUE   DATE OF THE ISSUANCE OF ANY ADDITIONAL   SECURITIES AND THE LAST DATE ON WHICH THE   ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE   OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF   SUCH SECURITY),] [IN THE CASE OF REGULATION S   NOTES: 40 DAYS AFTER THE LATER OF THE ORIGINAL   ISSUE DATE HEREOF AND THE DATE ON WHICH THIS   SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY)   WAS FIRST OFFERED TO PERSONS OTHER THAN   DISTRIBUTORS (AS DEFINED IN RULE 902 OF   REGULATION S) IN RELIANCE ON REGULATION S], ONLY   (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF,   (B) PURSUANT TO A REGISTRATION STATEMENT THAT   HAS BEEN DECLARED EFFECTIVE UNDER THE   SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES   ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A   UNDER THE SECURITIES ACT (“RULE 144A”), TO A   PERSON IT REASONABLY BELIEVES IS A “QUALIFIED   INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A   THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE   ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO   WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING   MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO   OFFERS AND SALES TO NON-U.S. PERSONS THAT OCCUR   OUTSIDE THE UNITED STATES WITHIN THE MEANING OF   REGULATION S UNDER THE SECURITIES ACT OR (E)   PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM   THE REGISTRATION REQUIREMENTS OF THE   SECURITIES ACT, SUBJECT TO THE COMPANY’S AND   THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER,   SALE OR TRANSFER PURSUANT TO CLAUSES (D) OR (E)   TO REQUIRE THE DELIVERY OF AN OPINION OF   COUNSEL, CERTIFICATION AND/ OR OTHER   INFORMATION SATISFACTORY TO EACH OF THEM. THIS   LEGEND WILL BE REMOVED UPON THE REQUEST OF   THE HOLDER AFTER THE RESALE RESTRICTION   TERMINATION DATE. [IN THE CASE OF REGULATION S     

 

10      NOTES: BY ITS ACQUISITION HEREOF, THE HOLDER   HEREOF REPRESENTS THAT IT IS NOT A U.S. PERSON   NOR IS IT PURCHASING FOR THE ACCOUNT OF A U.S.   PERSON AND IS ACQUIRING THIS SECURITY IN AN   OFFSHORE TRANSACTION IN ACCORDANCE WITH   REGULATION S UNDER THE SECURITIES ACT.]   BY ITS ACQUISITION OF THIS SECURITY, THE HOLDER   THEREOF WILL BE DEEMED TO HAVE REPRESENTED   AND WARRANTED THAT EITHER (1) NO PORTION OF THE   ASSETS USED BY SUCH HOLDER TO ACQUIRE OR HOLD   THIS SECURITY CONSTITUTES THE ASSETS OF (A) AN   EMPLOYEE BENEFIT PLAN (AS DEFINED IN SECTION 3(3)   OF THE U.S. EMPLOYEE RETIREMENT INCOME SECURITY   ACT OF 1974, AS AMENDED (“ERISA”)), SUBJECT TO PART   4 OF SUBTITLE B OF TITLE I OF ERISA, (B) A PLAN,   INDIVIDUAL RETIREMENT ACCOUNT OR OTHER   ARRANGEMENT THAT IS SUBJECT TO SECTION 4975 OF   THE U.S. INTERNAL REVENUE CODE OF 1986, AS   AMENDED (THE “CODE”) OR PROVISIONS UNDER ANY   OTHER FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER   LAWS OR REGULATIONS THAT ARE SIMILAR TO SUCH   PROVISIONS OF ERISA OR THE CODE (“SIMILAR LAWS”)   OR (C) AN ENTITY WHOSE UNDERLYING ASSETS ARE   CONSIDERED TO INCLUDE “PLAN ASSETS” OF ANY   SUCH PLAN, ACCOUNT OR ARRANGEMENT OR (2) THE   ACQUISITION AND HOLDING OF THIS SECURITY WILL   NOT CONSTITUTE A NON-EXEMPT PROHIBITED   TRANSACTION UNDER SECTION 406 OF ERISA OR   SECTION 4975 OF THE CODE OR A SIMILAR VIOLATION   UNDER ANY APPLICABLE SIMILAR LAWS.   Each certificate evidencing a Security offered in reliance on Regulation S   shall, in addition to the foregoing, bear a legend in substantially the following   form:   THIS SECURITY (OR ITS PREDECESSOR) WAS   ORIGINALLY ISSUED IN A TRANSACTION ORIGINALLY   EXEMPT FROM REGISTRATION UNDER THE U.S.   SECURITIES ACT OF 1933, AS AMENDED (THE   “SECURITIES ACT”), AND MAY NOT BE TRANSFERRED IN   THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR   BENEFIT OF, ANY U.S. PERSON EXCEPT PURSUANT TO   AN AVAILABLE EXEMPTION FROM THE REGISTRATION   REQUIREMENTS OF THE SECURITIES ACT AND ALL   APPLICABLE STATE SECURITIES LAWS.  TERMS USED     

 

11      ABOVE HAVE THE MEANINGS GIVEN TO THEM IN   REGULATION S UNDER THE SECURITIES ACT.   Each Definitive Security shall also bear the following additional legend:   IN CONNECTION WITH ANY TRANSFER, THE HOLDER   WILL DELIVER TO THE REGISTRAR AND TRANSFER   AGENT SUCH CERTIFICATES AND OTHER INFORMATION   AS SUCH TRANSFER AGENT MAY REASONABLY   REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES   WITH THE FOREGOING RESTRICTIONS.   (ii) Upon any sale or transfer of a Transfer Restricted Security   (including any Transfer Restricted Security represented by a Global   Security) pursuant to Rule 144 under the Securities Act, the Registrar shall   permit the transferee thereof to exchange such Transfer Restricted   Security for a certificated Security that does not bear the legend set forth   above and rescind any restriction on the transfer of such Transfer   Restricted Security, if the transferor thereof certifies in writing to the   Registrar that such sale or transfer was made in reliance on Rule 144 (such   certification to be in the form set forth on the reverse of the Security).   (iii) After a transfer of any Initial Securities pursuant to and   during the period of the effectiveness of a Shelf Registration Statement   with respect to such Initial Securities all requirements pertaining to   legends on such Initial Security will cease to apply, the requirements   requiring any such Initial Security issued to certain Holders be issued in   global form will cease to apply, and a certificated Initial Security or an   Initial Security in global form, in each case without restrictive transfer   legends, will be available to the transferee of the Holder of such Initial   Securities upon exchange of such transferring Holder’s certificated Initial   Security or directions to transfer such Holder’s interest in the Global   Security, as applicable.   (iv) Upon the consummation of a Registered Exchange Offer   with respect to the Initial Securities, all requirements pertaining to such   Initial Securities that Initial Securities issued to certain Holders be issued   in global form will still apply with respect to Holders of such Initial   Securities that do not exchange their Initial Securities, and Exchange   Securities in certificated or global form, in each case without the restricted   securities legend set forth in Exhibit 1 hereto will be available to Holders   that exchange such Initial Securities in such Registered Exchange Offer.   (f) Cancellation or Adjustment of Global Security.  At such time as all   beneficial interests in a Global Security have either been exchanged for Definitive   Securities, redeemed, purchased or canceled, such Global Security shall be returned to   the Depository for cancellation or retained and canceled by the Trustee.  At any time     

 

12      prior to such cancellation, if any beneficial interest in a Global Security is exchanged for   certificated Securities, redeemed, purchased or canceled, the principal amount of   Securities represented by such Global Security shall be reduced and an adjustment shall   be made on the books and records of the Trustee (if it is then the Securities Custodian for   such Global Security) with respect to such Global Security, by the Trustee or the   Securities Custodian, to reflect such reduction.   (g) No Obligation of the Trustee.   (i) The Trustee shall have no responsibility or obligation to   any beneficial owner of a Global Security, a member of, or a participant in   the Depository or other Person with respect to the accuracy of the records   of the Depository or its nominee or of any participant or member thereof,   with respect to any ownership interest in the Securities or with respect to   the delivery to any participant, member, beneficial owner or other Person   (other than the Depository) of any notice (including any notice of   redemption) or the payment of any amount, under or with respect to such   Securities.  All notices and communications to be given to the Holders and   all payments to be made to Holders under the Securities shall be given or   made only to or upon the order of the registered Holders (which shall be   the Depository or its nominee in the case of a Global Security).  The rights   of beneficial owners in any Global Security shall be exercised only   through the Depository subject to the applicable rules and procedures of   the Depository.  The Trustee may rely and shall be fully protected in   relying upon information furnished by the Depository with respect to its   members, participants and any beneficial owners.   (ii) 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 Security (including any transfers between or   among Depository participants, members or beneficial owners in any   Global Security) 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.   2.4 Definitive Securities.   (h) A Global Security deposited with the Depository or with the   Trustee as Securities Custodian for the Depository pursuant to Section 2.1 shall be   transferred to the beneficial owners thereof in the form of Definitive Securities in   an aggregate principal amount equal to the principal amount of such Global   Security, in exchange for such Global Security, only if such transfer complies   with Section 2.3 hereof and (i) the Depository notifies the Company that it is   unwilling or unable to continue as depository for such Global Security and the     

 

13      Depository fails to appoint a successor depository or if at any time such   Depository ceases to be a “clearing agency” registered under the Exchange Act, in   either case, and a successor depository is not appointed by the Company within   90 days of such notice, (ii) an Event of Default has occurred and is continuing or   (iii) the Company, in its sole discretion, subject to the procedures of the   Depository notifies the Trustee in writing that it elects to cause the issuance of   Definitive Securities under this Indenture.   (i) Any Global Security that is transferable to the beneficial owners   thereof pursuant to this Section 2.4 shall be surrendered by the Depository to the Trustee   located at its principal corporate trust office in the Borough of Manhattan, The City of   New York, to be so transferred, in whole or from time to time in part, without charge, and   the Trustee shall authenticate and deliver, upon such transfer of each portion of such   Global Security, an equal aggregate principal amount of Definitive Securities of   authorized denominations.  Any portion of a Global Security transferred pursuant to this   Section 2.4 shall be executed, authenticated and delivered only in minimum   denominations of $2,000 principal amount and any greater integral multiple of $1,000   thereof and registered in such names as the Depository shall direct.  Any Definitive   Security delivered in exchange for an interest in the Transfer Restricted Security shall,   except as otherwise provided by Section 2.3(e) hereof, bear the applicable restricted   securities legend and definitive securities legend set forth in Exhibit 1 hereto.   (j) Subject to the provisions of Section 2.4(b) hereof, the registered   Holder of a Global Security shall be entitled to grant proxies and otherwise authorize any   Person, including Agent Members and Persons that may hold interests through Agent   Members, to take any action which a Holder is entitled to take under this Indenture or the   Securities.   (k) In the event of the occurrence of one of the events specified in   Section 2.4(a) hereof, the Company shall promptly make available to the Trustee a   reasonable supply of Definitive Securities in definitive, fully registered form without   interest coupons.  In the event that such Definitive Securities are not issued, the Company   expressly acknowledges, with respect to the right of any Holder to pursue a remedy   pursuant to Section 6.06 or 6.07 of this Indenture, the right of any beneficial owner of   Securities to pursue such remedy with respect to the portion of the Global Security that   represents such beneficial owner’s Securities as if such Definitive Securities had been   issued.     

 

      EXHIBIT 1   to   RULE 144A/REGULATION S APPENDIX   [FORM OF FACE OF INITIAL SECURITY]      [Global Securities Legend]   UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED   REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK   CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS   AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND   ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR   SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED   REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.,   OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED   REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE   HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL   INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN   INTEREST HEREIN.   TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED   TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO   A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND   TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED   TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET   FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.   [[FOR REGULATION S GLOBAL SECURITY ONLY] UNTIL 40   DAYS AFTER THE LATER OF COMMENCEMENT OR COMPLETION OF THE   OFFERING, AN OFFER OR SALE OF SECURITIES WITHIN THE UNITED   STATES BY A DEALER (AS DEFINED IN THE SECURITIES ACT) MAY   VIOLATE THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IF   SUCH OFFER OR SALE IS MADE OTHERWISE THAN IN ACCORDANCE WITH   RULE 144A THEREUNDER.]   [Restricted Securities Legend]     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE   SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE   SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS   SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE   REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR   OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR   UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH   REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE   HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR     

 

2      ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR   OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE   “RESALE RESTRICTION TERMINATION DATE”) THAT IS [IN THE CASE OF   RULE 144A NOTES: ONE YEAR AFTER THE LATER OF THE ORIGINAL ISSUE   DATE HEREOF, THE ORIGINAL ISSUE DATE OF THE ISSUANCE OF ANY   ADDITIONAL SECURITIES AND THE LAST DATE ON WHICH THE ISSUER OR   ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY (OR   ANY PREDECESSOR OF SUCH SECURITY),] [IN THE CASE OF REGULATION S   NOTES: 40 DAYS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF   AND THE DATE ON WHICH THIS SECURITY (OR ANY PREDECESSOR OF   SUCH SECURITY) WAS FIRST OFFERED TO PERSONS OTHER THAN   DISTRIBUTORS (AS DEFINED IN RULE 902 OF REGULATION S) IN RELIANCE   ON REGULATION S], ONLY (A) TO THE COMPANY OR ANY SUBSIDIARY   THEREOF, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS   BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO   LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE   144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON IT   REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS   DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR   THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE   IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE   144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT   OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF   REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT TO   ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION   REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S   AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR   TRANSFER PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY   OF AN OPINION OF COUNSEL, CERTIFICATION AND/ OR OTHER   INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE   REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE   RESTRICTION TERMINATION DATE. [IN THE CASE OF REGULATION S   NOTES: BY ITS ACQUISITION HEREOF, THE HOLDER HEREOF REPRESENTS   THAT IT IS NOT A U.S. PERSON NOR IS IT PURCHASING FOR THE ACCOUNT   OF A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE   TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE   SECURITIES ACT.]        BY ITS ACQUISITION OF THIS SECURITY, THE HOLDER   THEREOF WILL BE DEEMED TO HAVE REPRESENTED AND WARRANTED   THAT EITHER (1) NO PORTION OF THE ASSETS USED BY SUCH HOLDER TO   ACQUIRE OR HOLD THIS SECURITY CONSTITUTES THE ASSETS OF (A) AN   EMPLOYEE BENEFIT PLAN (AS DEFINED IN SECTION 3(3) OF THE U.S.   EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED   (“ERISA”)), SUBJECT TO PART 4 OF SUBTITLE B OF TITLE I OF ERISA, (B) A   PLAN, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER ARRANGEMENT     

 

3      THAT IS SUBJECT TO SECTION 4975 OF THE U.S. INTERNAL REVENUE CODE   OF 1986, AS AMENDED (THE “CODE”) OR PROVISIONS UNDER ANY OTHER   FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS   THAT ARE SIMILAR TO SUCH PROVISIONS OF ERISA OR THE CODE   (“SIMILAR LAWS”) OR (C) AN ENTITY WHOSE UNDERLYING ASSETS ARE   CONSIDERED TO INCLUDE “PLAN ASSETS” OF ANY SUCH PLAN, ACCOUNT   OR ARRANGEMENT OR (2) THE ACQUISITION AND HOLDING OF THIS   SECURITY WILL NOT CONSTITUTE A NON-EXEMPT PROHIBITED   TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE   CODE OR A SIMILAR VIOLATION UNDER ANY APPLICABLE SIMILAR LAWS.      [Restricted Securities Legend for Securities Offered in Reliance on Regulation S.]   THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY   ISSUED IN A TRANSACTION ORIGINALLY EXEMPT FROM REGISTRATION   UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE   “SECURITIES ACT”), AND MAY NOT BE TRANSFERRED IN THE UNITED   STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY U.S. PERSON   EXCEPT PURSUANT TO AN AVAILABLE EXEMPTION FROM THE   REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ALL   APPLICABLE STATE SECURITIES LAWS.  TERMS USED ABOVE HAVE THE   MEANINGS GIVEN TO THEM IN REGULATION S UNDER THE SECURITIES   ACT.    [Definitive Securities Legend]   IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL   DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES   AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY   REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES   WITH THE FOREGOING RESTRICTIONS.     

 

4         No.              $           8.500% Senior Secured Notes Due 2018   U.S. Concrete, Inc., a Delaware corporation, promises to pay to   _______________, or registered assigns, the principal sum of _______________ Dollars   on December 1, 2018[, as such amount may be increased or decreased as set forth on the   Schedule of Increases or Decreases in Global Security attached hereto].   Interest Payment Dates:  June 1 and December 1.   Record Dates:  May 15 and November 15.   Additional provisions of this Security are set forth on the other side of this   Security.   Dated:    U.S. CONCRETE, INC.   By      Name:   Title:      By      Name:   Title:         TRUSTEE’S CERTIFICATE OF   AUTHENTICATION    U.S. BANK NATIONAL ASSOCIATIONas Trustee, certifies  that this is one of the Securities referred    

 

5      to in the Indenture.   By      Authorized Signatory        

 

6      [FORM OF REVERSE SIDE OF INITIAL SECURITY]   8.500% Senior Secured Note Due 2018    Capitalized terms used herein and not defined herein have the meanings ascribed   thereto in the Indenture.      1. Interest   U.S. Concrete, Inc., a Delaware 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 Security at the rate   per annum shown above; provided, however, that if a Registration Default (as defined in   the Registration Rights Agreement) occurs, additional interest will accrue on this Security   at a rate of 0.25% per annum (increasing by an additional 0.25% per annum after each   consecutive 90-day period that occurs after the date on which such Registration Default   occurs up to an aggregate maximum additional interest rate of 1.00% per annum) from   and including the date on which any such Registration Default shall occur to but   excluding the date on which all Registration Defaults have been cured. The Company   will pay interest semiannually on June 1 and December 1 of each year, commencing June   1, 2014.  Interest on the Securities will accrue from the most recent date to which interest   has been paid or, if no interest has been paid, from November 22, 2013.  Interest will be   computed on the basis of a 360-day year of twelve 30-day months.  The Company will   pay interest on overdue principal at the rate borne by this Security plus 1.0% per annum,   and it will pay interest on overdue installments of interest at the same rate to the extent   lawful.   2. Method of Payment   The Company will pay interest on the Securities (except defaulted interest)   to the Persons who are registered holders of Securities at the close of business on the May   15 or November 15 next preceding the interest payment date even if Securities are   canceled after the record date and on or before the interest payment date.  Holders must   surrender Securities to a Paying Agent to collect principal payments.  The Company will   pay principal and interest in money of the United States that at the time of payment is   legal tender for payment of public and private debts.  Payments in respect of the   Securities represented by a Global Security (including principal, premium and interest)   will be made by wire transfer of immediately available funds to the accounts specified by   the Depository.  The Company will make all payments in respect of a certificated   Security (including principal, premium and interest) by mailing a check to the registered   address of each Holder thereof; provided, however, that payments on a certificated   Security will be made by wire transfer to a U.S. dollar account maintained by the payee   with a bank in the United States if such Holder elects payment by wire transfer by giving   written notice to the Trustee or the Paying Agent to such effect designating such account   no later than 30 days immediately preceding the relevant due date for payment (or such   other date as the Trustee may accept in its discretion).     

 

7      3. Paying Agent and Registrar   Initially, U.S. Bank National Association, a national banking corporation   (the “Trustee”), will act as Paying Agent and Registrar.  The Company may appoint and   change any Paying Agent, Registrar or co-registrar without notice.  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 Securities under an Indenture dated as of   November 22, 2013 (as such may be amended or supplemented from time to time, the   “Indenture”), among the Company, the Subsidiary Guarantors, the Trustee and the   Noteholder Collateral Agent.  The terms of the Securities include those stated in the   Indenture and those made part of the Indenture by reference to the TIA.  The Securities   are subject to all such terms, and Holders are referred to the Indenture and the TIA for a   statement of those terms. To the extent any provision of this Security conflicts with   express provisions of the Indenture, the provisions of the Indenture shall govern and be   controlling.   The Securities are senior secured obligations of the Company.  The   Company shall be entitled, subject to its compliance with Section 4.03 of the Indenture,   to issue Additional Securities pursuant to Section 2.13 of the Indenture.  The Initial   Securities issued on the Issue Date, any Additional Securities and all Exchange Securities   issued in exchange therefor will be treated as a single class for all purposes under the   Indenture.  The Indenture contains covenants that, among other things, limit the ability of   the Company and its Subsidiaries to incur additional Indebtedness, including Guarantees;   pay dividends or distributions on, or redeem or repurchase Capital Stock; make   Investments; engage in transactions with Affiliates; create Liens on assets; transfer or sell   assets; restrict dividends or other payments by Subsidiaries; consolidate, merge or   transfer all or substantially all of its assets and the assets of its Subsidiaries; and engage   in sale/leaseback transactions.  These covenants are subject to important exceptions and   qualifications.   5. Optional Redemption   Except as set forth below, the Company shall not be entitled to redeem the   Securities.   On and after December 1, 2015, the Company shall be entitled at its   option, on one or more occasions, to redeem all or a portion of the Securities, at the   redemption prices (expressed in percentages of principal amount on the redemption date),   plus accrued 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 12-month period commencing on December 1 of the years set forth   below:        

 

8      Period   Redemption   Price   2015 104.250%   2016 102.125%   2017 and thereafter 100.000%      In addition, at any time prior to December 1, 2015, the Company shall be   entitled at its option on one or more occasions to redeem Securities (which includes   Additional Securities, if any) in an aggregate principal amount not to exceed 35% of the   aggregate principal amount of the Securities (which includes Additional Securities, if   any) originally issued at a redemption price (expressed as a percentage of principal   amount) of 108.500%, 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), with the net cash proceeds from one or more Qualified   Equity Offerings; provided, however, that (1) at least 65% of such aggregate principal   amount of Securities (which includes Additional Securities, if any) remains outstanding   immediately after the occurrence of each such redemption (other than Securities held,   directly or indirectly, by the Company or its Affiliates); and (2) each such redemption   occurs within 90 days after the date of the related Qualified Equity Offering.   Prior to December 1, 2015, the Company shall be entitled at its option, on   one or more occasions, to redeem all or a portion of the Securities at a redemption price   equal to 100% of the principal amount of the Securities plus the Applicable Premium as   of, and accrued and unpaid interest to, the redemption date (subject to the right of   Holders on the relevant record date to receive interest due on the relevant interest   payment date).   6. Notice of Redemption   Notice of redemption will be sent at least 30 days but not more than 60   days before the redemption date to each Holder of Securities to be redeemed at its   registered address, except that redemption notices may be sent more than 60 days prior to   the redemption date if the notice is issued in connection with a defeasance of the   Securities or a satisfaction and discharge of the Indenture.  Any inadvertent defect in the   notice of redemption, including an inadvertent failure to give notice, to any Holder   selected for redemption will not impair or affect the validity of the redemption of any   other Security redeemed in accordance with the provisions of the Indenture.  Securities in   denominations larger than $2,000 principal amount may be redeemed in part but only in   whole multiples of $1,000.  If money sufficient to pay the redemption price of and   accrued interest on all Securities (or portions thereof) to be redeemed on the redemption   date is deposited with the Paying Agent on or before the redemption date and certain   other conditions are satisfied, on and after such date interest ceases to accrue on such   Securities (or such portions thereof) called for redemption.     

 

9      7. Put Provisions   Upon a Change of Control, each Holder of Securities will have the right to   require that the Company repurchase such Holder’s Securities at a purchase price equal to   101% of the principal amount of the Securities to be repurchased plus accrued interest to   the date of repurchase (subject to the right of Holders of record on the relevant record   date to receive interest due on the related interest payment date) as provided in, and   subject to the terms of, the Indenture.   The Indenture provides that, under certain circumstances, the Company   shall be required to use the Net Available Cash from an Asset Disposition to make an   offer to Holders to purchase Securities at a purchase price of 100% of their principal   amount plus accrued but unpaid interest.   8. Guarantee   The payment by the Company of the principal of, and premium and   interest on, the Securities is fully and unconditionally guaranteed on a joint and several   senior secured basis by each of the Subsidiary Guarantors to the extent set forth in the   Indenture.    8. Security   The Securities and the Guarantees shall be secured by the Collateral on the   terms and subject to the conditions set forth in the Indenture and the Security Documents.   The Trustee and the Noteholder Collateral Agent, as the case may be, hold the Collateral   in trust for the benefit of the Trustee and the Holders, in each case pursuant to the   Security Documents and the Intercreditor Agreement. Each Holder, by accepting this   Security, consents and agrees to the terms of the Security Documents and the   Intercreditor Agreement as the same may be in effect or may be amended from time to   time in accordance with their terms and the Indenture and authorizes and directs the   Noteholder Collateral Agent to enter into the Security Documents and the Intercreditor   Agreement, and to perform its obligations and exercise its rights thereunder in   accordance therewith.   8. Denominations; Transfer; Exchange   The Securities are in registered form without coupons in denominations of   $2,000 principal amount and whole multiples of $1,000 in excess thereof.  A Holder may   transfer or exchange Securities 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 Securities selected for   redemption (except, in the case of a Security to be redeemed in part, the portion of the   Security not to be redeemed) or any Securities for a period of 15 days before a selection   of Securities to be redeemed or 15 days before an interest payment date.     

 

10      9. Persons Deemed Owners   The registered Holder of this Security may be treated as the owner of it for   all purposes.   10. Unclaimed Money   If money for the payment of principal or interest remains unclaimed for   two years, the Trustee or Paying Agent shall pay the money back to the Company at its   request 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.   11. Discharge and Defeasance   Subject to certain conditions, the Company at any time shall be entitled to   terminate some or all of its and the Subsidiary Guarantors’ obligations under the   Securities, the Indenture and the Security Documents if the Company deposits with the   Trustee money or U.S. Government Obligations for the payment of principal and interest   on the Securities to redemption or maturity, as the case may be.   12. Amendment; Waiver   Subject to certain exceptions set forth in the Indenture, (a) the Indenture,   the Intercreditor Agreement, the Security Documents and the Securities may be amended   with the written consent of the Holders of at least a majority in principal amount   outstanding of the Securities and (b) any default or noncompliance with any provision   may be waived with the written consent of the Holders of a majority in principal amount   outstanding of the Securities.  Subject to certain exceptions set forth in the Indenture,   without the consent of any Holder, the Company, the Subsidiary Guarantors and the   Trustee shall be entitled to amend the Indenture, the Intercreditor Agreement, the   Security Documents or the Securities to cure any ambiguity, omission, defect or   inconsistency, or to comply with Article 5 of the Indenture, or to provide for   uncertificated Securities in addition to or in place of certificated Securities, or to add   Guarantees with respect to the Securities, including Subsidiary Guarantees, or to secure   the Securities or to add collateral, or to add additional covenants or surrender rights and   powers conferred on the Company or the Subsidiary Guarantors or to make any change   that does not adversely affect the rights of any Holder, or to comply with any requirement   of the SEC in connection with qualifying the Indenture under the TIA, or to conform the   text of the Indenture, the Intercreditor Agreement, the Securities, any Subsidiary   Guarantee or any Security Document to any provision of the “Description of the notes” in   the Offering Memorandum to the extent that such provision in the “Description of the   notes” was intended to be a verbatim recitation of a provision of the Indenture, the   Intercreditor Agreement, the Securities, such Subsidiary Guarantee or such Security   Document, or to make amendments to provisions of the Indenture relating to the transfer   and legending of the Securities.     

 

11      13. Defaults and Remedies   Under the Indenture, Events of Default include: (a) default for 30 days in   payment of interest on the Securities; (b) default in payment of principal on the Securities   at maturity, upon redemption, upon acceleration or otherwise, or failure by the Company   to redeem or purchase Securities when required; (c) failure by the Company or any   Subsidiary Guarantor to comply with other agreements in the Indenture or the Securities,   in certain cases subject to notice and lapse of time; (d) certain accelerations (including   failure to pay within any grace period after final maturity) of other Indebtedness of the   Company, any Subsidiary Guarantor or any Significant Subsidiary if the amount   accelerated (or so unpaid) exceeds $20 million; (e) certain events of bankruptcy or   insolvency with respect to the Company and the Significant Subsidiaries; (f) certain   judgments or decrees for the payment of money in excess of $20 million; (g) certain   defaults with respect to Subsidiary Guarantees; and (h) certain defaults relating to the   Collateral under the Security Documents. If an Event of Default occurs and is continuing,   the Trustee or the Holders of at least 25% in principal amount of the Securities may   declare all the Securities to be due and payable immediately.  Certain events of   bankruptcy or insolvency are Events of Default which will result in the Securities being   due and payable immediately upon the occurrence of such Events of Default.   Holders may not enforce the Indenture or the Securities except as provided   in the Indenture.  The Trustee may refuse to enforce the Indenture or the Securities unless   it receives indemnity or security satisfactory to it.  Subject to certain limitations, Holders   of a majority in principal amount of the Securities may direct the Trustee in its exercise   of any trust or power.  The Trustee may withhold from Holders notice of any continuing   Default (except a Default in payment of principal or interest) if it determines that   withholding notice is in the interest of the Holders.   14. Trustee Dealings with the Company   Subject to certain limitations imposed by the Act,  the Trustee under the   Indenture, in its individual or any other capacity, may become the owner or pledgee of   Securities 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.   15. No Recourse Against Others   A director, officer, employee or stockholder, as such, of the Company or   any Subsidiary Guarantor shall not have any liability for any obligations of the Company   under the Securities or the Indenture or for any claim based on, in respect of or by reason   of such obligations or their creation.  By accepting a Security, each Holder waives and   releases all such liability.  The waiver and release are part of the consideration for the   issue of the Securities.     

 

12      16. Authentication   This Security shall not be valid until an authorized signatory of the Trustee   (or an authenticating agent) manually signs the certificate of authentication on the other   side of this Security.   17. 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   entireties), 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).   18. CUSIP Numbers   Pursuant to a recommendation promulgated by the Committee on Uniform   Security Identification Procedures the Company has caused CUSIP numbers to be printed   on the Securities and has directed the Trustee to use CUSIP numbers in notices of   redemption as a convenience to Holders.  No representation is made as to the accuracy of   such numbers either as printed on the Securities or as contained in any notice of   redemption and reliance may be placed only on the other identification numbers placed   thereon.   19. Holders’ Compliance with Registration Rights Agreement   Each Holder of a Security, by acceptance hereof, acknowledges and agrees   to the provisions of the Registration Rights Agreement, including the obligations of the   Holders with respect to a registration and the indemnification of the Company to the   extent provided therein.   20. Governing Law   THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED   IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.   The Company will 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 Security in   larger type.  Requests may be made to:   U.S. Concrete, Inc.     331 N. Main St.     Euless, TX 76039     Attention:  General Counsel and Chief Financial Officer     

 

13      ASSIGNMENT FORM   To assign this Security, fill in the form below:   I or we assign and transfer this Security 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 Security on the books of the   Company.  The agent may substitute another to act for him.      ________________________________________________________________________   Date:  Your Signature:   ________________________________________________________________________      Sign exactly as your name appears on the other side of this Security.   In connection with any transfer of any of the Securities evidenced by this certificate   occurring prior to the expiration of [In the case of Rule 144A Notes: the one-year period   after the later of the date of original issuance of such Securities and the last date, if any,   on which such Securities were owned by the Company or any Affiliate of the   Company][In the case of Regulation S Notes: the 40-day period after the later of the   original issue date and the date on which such Securities were first offered to persons   other than Distributors (as defined in Rule 902 of Regulation S) in reliance on Regulation   S], the undersigned confirms that such Securities are being transferred in accordance with   its terms:   CHECK ONE BOX BELOW    to the Company; or   (1)  pursuant to an effective registration statement under the Securities   Act of 1933; or   (2)  inside the United States to a “qualified institutional buyer” (as   defined in Rule 144A under the Securities Act of 1933) that   purchases for its own account or for the account of a qualified   institutional buyer to whom notice is given that such transfer is   being made in reliance on Rule 144A, in each case pursuant to and   in compliance with Rule 144A under the Securities Act of 1933; or     

 

14      (3)  outside the United States in an offshore transaction within the   meaning of Regulation S under the Securities Act in compliance   with Rule 904 under the Securities Act of 1933; or   (4)  pursuant to the exemption from registration provided by Rule 144   under the Securities Act of 1933; or   (5)  to an institutional “accredited investor” (as defined in Rule   501(a)(1),(2),(3) or (7) under the Securities Act of 1933) that has   furnished to the Trustee a signed letter containing certain   representations and agreements.   Unless one of the boxes is checked, the Trustee will refuse to register any of the   Securities evidenced by this certificate in the name of any Person other than the   registered holder thereof; provided, however, that if box (4) is checked, the   Trustee shall be entitled to require, prior to registering any such transfer of the   Securities, such legal opinions, certifications and other information as the   Company has reasonably requested to confirm that such transfer is being made   pursuant to an exemption from, or in a transaction not subject to, the registration   requirements of the Securities Act of 1933, such as the exemption provided by   Rule 144 under such Act.         Signature      Signature Guarantee:          Signature must be guaranteed Signature      Signatures must be guaranteed by an “eligible guarantor institution” meeting the   requirements of the Registrar, which requirements include membership or participation in   the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature   guarantee program” as may be determined by the Registrar in addition to, or in   substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as   amended.     

 

15      TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED.   The undersigned represents and warrants that it is purchasing this Security   for its own account or an account with respect to which it exercises sole investment   discretion and that it and any such account is a “qualified institutional buyer” within the   meaning of Rule 144A under the Securities Act of 1933, and is aware that the sale to it is   being made in reliance on Rule 144A and acknowledges that it has received such   information regarding the Company as the undersigned has requested pursuant to   Rule 144A or has determined not to request such information and that it is aware that the   transferor is relying upon the undersigned’s foregoing representations in order to claim   the exemption from registration provided by Rule 144A.      Dated:      Notice: To be executed by   an executive officer        

 

16      [TO BE ATTACHED TO GLOBAL SECURITIES]      SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY      The following increases or decreases in this Global Security have been made:      Date of   Exchange   Amount of decrease in   Principal  amount of this   Global Security   Amount of increase in   Principal amount of this   Global Security   Principal amount of this   Global Security following   such decrease or increase   Signature of authorized   officer of Trustee or   Securities Custodian        

 

17      OPTION OF HOLDER TO ELECT PURCHASE   If you want to elect to have this Security purchased by the Company   pursuant to Section 4.06 or 4.09 of the Indenture, check the box:     If you want to elect to have only part of this Security purchased by the   Company pursuant to Section 4.06 or 4.09 of the Indenture, state the amount in principal   amount:  $      Dated:  Your Signature:    (Sign exactly as your name appears on the other side of this Security.)         Signature Guarantee:   (Signature must be guaranteed)      Signatures must be guaranteed by an “eligible guarantor institution” meeting the   requirements of the Registrar, which requirements include membership or participation in   the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature   guarantee program” as may be determined by the Registrar in addition to, or in   substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as   amended.           

 

18      EXHIBIT A   [FORM OF FACE OF EXCHANGE SECURITY] */      [Global Securities Legend]   UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED   REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK   CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS   AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND   ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR   SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED   REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.,   OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED   REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE   HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL   INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN   INTEREST HEREIN.   TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED   TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO   A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND   TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED   TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET   FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.          */ [If the Security is to be issued in global form add the Global Securities Legend from   Exhibit 1 to Appendix A and the attachment from such Exhibit 1 captioned “[TO BE   ATTACHED TO GLOBAL SECURITIES] - SCHEDULE OF INCREASES OR   DECREASES IN GLOBAL SECURITY”.]       

 

19      No.              $           8.500% Senior Secured Notes Due 2018   U.S. Concrete, Inc., a Delaware corporation, promises to pay to   _______________, or registered assigns, the principal sum of _______________ Dollars   on December 1, 2018[, as such amount may be increased or decreased as set forth on the   Schedule of Increases or Decreases in Global Security attached hereto].      Interest Payment Dates:  June 1 and December 1.   Record Dates:  May 15 and November 15.   Additional provisions of this Security are set forth on the other side of this   Security.   Dated:    U.S. CONCRETE, INC.   By      Name:   Title:      By      Name:   Title:         TRUSTEE’S CERTIFICATE OF   AUTHENTICATION    U.S. BANK NATIONAL ASSOCIATIONas Trustee, certifies  that this is one of the Securities referred    

 

20      to in the Indenture.   By      Authorized Signatory        

 

21      [FORM OF REVERSE SIDE OF EXCHANGE SECURITY]   8.500% Senior Secured Note Due 2018    Capitalized terms used herein and not defined herein have the meanings ascribed   thereto in the Indenture.      1. Interest   U.S. Concrete, Inc., a Delaware 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 Security at the rate   per annum shown above; provided, however, that if a Registration Default (as defined in   the Registration Rights Agreement) occurs, additional interest will accrue on this Security   at a rate of 0.25% per annum (increasing by an additional 0.25% per annum after each   consecutive 90-day period that occurs after the date on which such Registration Default   occurs up to an aggregate maximum additional interest rate of 1.00% per annum) from   and including the date on which any such Registration Default shall occur to but   excluding the date on which all Registration Defaults have been cured. The Company   will pay interest semiannually on June 1 and December 1 of each year, commencing June   1, 2014.  Interest on the Securities will accrue from the most recent date to which interest   has been paid or, if no interest has been paid, from November 22, 2013.  Interest will be   computed on the basis of a 360-day year of twelve 30-day months.  The Company will   pay interest on overdue principal at the rate borne by this Security plus 1.0% per annum,   and it will pay interest on overdue installments of interest at the same rate to the extent   lawful.   2. Method of Payment   The Company will pay interest on the Securities (except defaulted interest)   to the Persons who are registered holders of Securities at the close of business on the May   15 or November 15 next preceding the interest payment date even if Securities are   canceled after the record date and on or before the interest payment date.  Holders must   surrender Securities to a Paying Agent to collect principal payments.  The Company will   pay principal and interest in money of the United States that at the time of payment is   legal tender for payment of public and private debts.  Payments in respect of the   Securities represented by a Global Security (including principal, premium and interest)   will be made by wire transfer of immediately available funds to the accounts specified by   the Depository.  The Company will make all payments in respect of a certificated   Security (including principal, premium and interest) by mailing a check to the registered   address of each Holder thereof; provided, however, that payments on a certificated   Security will be made by wire transfer to a U.S. dollar account maintained by the payee   with a bank in the United States if such Holder elects payment by wire transfer by giving   written notice to the Trustee or the Paying Agent to such effect designating such account   no later than 30 days immediately preceding the relevant due date for payment (or such   other date as the Trustee may accept in its discretion).     

 

22      3. Paying Agent and Registrar   Initially, U.S. Bank National Association, a national banking corporation   (the “Trustee”), will act as Paying Agent and Registrar.  The Company may appoint and   change any Paying Agent, Registrar or co-registrar without notice.  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 Securities under an Indenture dated as of   November 22, 2013 (as such may be amended or supplemented from time to time, the   “Indenture”), among the Company, the Subsidiary Guarantors, the Trustee and the   Noteholder Collateral Agent.  The terms of the Securities include those stated in the   Indenture and those made part of the Indenture by reference to the TIA.  The Securities   are subject to all such terms, and Holders are referred to the Indenture and the TIA for a   statement of those terms. To the extent any provision of this Security conflicts with   express provisions of the Indenture, the provisions of the Indenture shall govern and be   controlling.   The Securities are senior secured obligations of the Company.  The   Company shall be entitled, subject to its compliance with Section 4.03 of the Indenture,   to issue Additional Securities pursuant to Section 2.13 of the Indenture.  The Initial   Securities issued on the Issue Date, any Additional Securities and all Exchange Securities   issued in exchange therefor will be treated as a single class for all purposes under the   Indenture.  The Indenture contains covenants that, among other things, limit the ability of   the Company and its Subsidiaries to incur additional Indebtedness, including Guarantees;   pay dividends or distributions on, or redeem or repurchase Capital Stock; make   Investments; engage in transactions with Affiliates; create Liens on assets; transfer or sell   assets; restrict dividends or other payments by Subsidiaries; consolidate, merge or   transfer all or substantially all of its assets and the assets of its Subsidiaries; and engage   in sale/leaseback transactions.  These covenants are subject to important exceptions and   qualifications.   5. Optional Redemption   Except as set forth below, the Company shall not be entitled to redeem the   Securities.   On and after December 1, 2015, the Company shall be entitled at its   option, on one or more occasions, to redeem all or a portion of the Securities, at the   redemption prices (expressed in percentages of principal amount on the redemption date),   plus accrued 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 12-month period commencing on December 1 of the years set forth   below:        

 

23      Period   Redemption   Price   2015 104.250%   2016 102.125%   2017 and thereafter 100.000%      In addition, at any time prior to December 1, 2015, the Company shall be   entitled at its option on one or more occasions to redeem Securities (which includes   Additional Securities, if any) in an aggregate principal amount not to exceed 35% of the   aggregate principal amount of the Securities (which includes Additional Securities, if   any) originally issued at a redemption price (expressed as a percentage of principal   amount) of 108.500%, 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), with the net cash proceeds from one or more Qualified   Equity Offerings; provided, however, that (1) at least 65% of such aggregate principal   amount of Securities (which includes Additional Securities, if any) remains outstanding   immediately after the occurrence of each such redemption (other than Securities held,   directly or indirectly, by the Company or its Affiliates); and (2) each such redemption   occurs within 90 days after the date of the related Qualified Equity Offering.   Prior to December 1, 2015, the Company shall be entitled at its option, on   one or more occasions, to redeem all or a portion of the Securities at a redemption price   equal to 100% of the principal amount of the Securities plus the Applicable Premium as   of, and accrued and unpaid interest to, the redemption date (subject to the right of   Holders on the relevant record date to receive interest due on the relevant interest   payment date).   6. Notice of Redemption   Notice of redemption will be sent at least 30 days but not more than 60   days before the redemption date to each Holder of Securities to be redeemed at its   registered address, except that redemption notices may be sent more than 60 days prior to   the redemption date if the notice is issued in connection with a defeasance of the   Securities or a satisfaction and discharge of the Indenture.  Any inadvertent defect in the   notice of redemption, including an inadvertent failure to give notice, to any Holder   selected for redemption will not impair or affect the validity of the redemption of any   other Security redeemed in accordance with the provisions of the Indenture.  Securities in   denominations larger than $2,000 principal amount may be redeemed in part but only in   whole multiples of $1,000.  If money sufficient to pay the redemption price of and   accrued interest on all Securities (or portions thereof) to be redeemed on the redemption   date is deposited with the Paying Agent on or before the redemption date and certain   other conditions are satisfied, on and after such date interest ceases to accrue on such   Securities (or such portions thereof) called for redemption.     

 

24      7. Put Provisions   Upon a Change of Control, each Holder of Securities will have the right to   require that the Company repurchase such Holder’s Securities at a purchase price equal to   101% of the principal amount of the Securities to be repurchased plus accrued interest to   the date of repurchase (subject to the right of Holders of record on the relevant record   date to receive interest due on the related interest payment date) as provided in, and   subject to the terms of, the Indenture.   The Indenture provides that, under certain circumstances, the Company   shall be required to use the Net Available Cash from an Asset Disposition to make an   offer to Holders to purchase Securities at a purchase price of 100% of their principal   amount plus accrued but unpaid interest.   8. Guarantee   The payment by the Company of the principal of, and premium and   interest on, the Securities is fully and unconditionally guaranteed on a joint and several   senior secured basis by each of the Subsidiary Guarantors to the extent set forth in the   Indenture.    8. Security   The Securities and the Guarantees shall be secured by the Collateral on the   terms and subject to the conditions set forth in the Indenture and the Security Documents.   The Trustee and the Noteholder Collateral Agent, as the case may be, hold the Collateral   in trust for the benefit of the Trustee and the Holders, in each case pursuant to the   Security Documents and the Intercreditor Agreement. Each Holder, by accepting this   Security, consents and agrees to the terms of the Security Documents and the   Intercreditor Agreement as the same may be in effect or may be amended from time to   time in accordance with their terms and the Indenture and authorizes and directs the   Noteholder Collateral Agent to enter into the Security Documents and the Intercreditor   Agreement, and to perform its obligations and exercise its rights thereunder in   accordance therewith.   8. Denominations; Transfer; Exchange   The Securities are in registered form without coupons in denominations of   $2,000 principal amount and whole multiples of $1,000 in excess thereof.  A Holder may   transfer or exchange Securities 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 Securities selected for   redemption (except, in the case of a Security to be redeemed in part, the portion of the   Security not to be redeemed) or any Securities for a period of 15 days before a selection   of Securities to be redeemed or 15 days before an interest payment date.     

 

25      9. Persons Deemed Owners   The registered Holder of this Security may be treated as the owner of it for   all purposes.   10. Unclaimed Money   If money for the payment of principal or interest remains unclaimed for   two years, the Trustee or Paying Agent shall pay the money back to the Company at its   request 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.   11. Discharge and Defeasance   Subject to certain conditions, the Company at any time shall be entitled to   terminate some or all of its and the Subsidiary Guarantors’ obligations under the   Securities, the Indenture and the Security Documents if the Company deposits with the   Trustee money or U.S. Government Obligations for the payment of principal and interest   on the Securities to redemption or maturity, as the case may be.   12. Amendment; Waiver   Subject to certain exceptions set forth in the Indenture, (a) the Indenture,   the Intercreditor Agreement, the Security Documents and the Securities may be amended   with the written consent of the Holders of at least a majority in principal amount   outstanding of the Securities and (b) any default or noncompliance with any provision   may be waived with the written consent of the Holders of a majority in principal amount   outstanding of the Securities.  Subject to certain exceptions set forth in the Indenture,   without the consent of any Holder, the Company, the Subsidiary Guarantors and the   Trustee shall be entitled to amend the Indenture, the Intercreditor Agreement, the   Security Documents or the Securities to cure any ambiguity, omission, defect or   inconsistency, or to comply with Article 5 of the Indenture, or to provide for   uncertificated Securities in addition to or in place of certificated Securities, or to add   Guarantees with respect to the Securities, including Subsidiary Guarantees, or to secure   the Securities or to add Collateral, or to add additional covenants or surrender rights and   powers conferred on the Company or the Subsidiary Guarantors or to make any change   that does not adversely affect the rights of any Holder, or to comply with any requirement   of the SEC in connection with qualifying the Indenture under the TIA, or to conform the   text of the Indenture, the Intercreditor Agreement, the Securities, any Subsidiary   Guarantee or any Security Document to any provision of the “Description of the notes” in   the Offering Memorandum to the extent that such provision in the “Description of the   notes” was intended to be a verbatim recitation of a provision of the Indenture, the   Intercreditor Agreement, the Securities, such Subsidiary Guarantee or such Security   Document, or to make amendments to provisions of the Indenture relating to the transfer   and legending of the Securities.     

 

26      13. Defaults and Remedies   Under the Indenture, Events of Default include: (a) default for 30 days in   payment of interest on the Securities; (b) default in payment of principal on the Securities   at maturity, upon redemption, upon acceleration or otherwise, or failure by the Company   to redeem or purchase Securities when required; (c) failure by the Company or any   Subsidiary Guarantor to comply with other agreements in the Indenture or the Securities,   in certain cases subject to notice and lapse of time; (d) certain accelerations (including   failure to pay within any grace period after final maturity) of other Indebtedness of the   Company, any Subsidiary Guarantor or any Significant Subsidiary if the amount   accelerated (or so unpaid) exceeds $20 million; (e) certain events of bankruptcy or   insolvency with respect to the Company and the Significant Subsidiaries; (f) certain   judgments or decrees for the payment of money in excess of $20 million; (g) certain   defaults with respect to Subsidiary Guarantees; and (h) certain defaults relating to the   Collateral under the Security Documents. If an Event of Default occurs and is continuing,   the Trustee or the Holders of at least 25% in principal amount of the Securities may   declare all the Securities to be due and payable immediately.  Certain events of   bankruptcy or insolvency are Events of Default which will result in the Securities being   due and payable immediately upon the occurrence of such Events of Default.   Holders may not enforce the Indenture or the Securities except as provided   in the Indenture.  The Trustee may refuse to enforce the Indenture or the Securities unless   it receives indemnity or security satisfactory to it.  Subject to certain limitations, Holders   of a majority in principal amount of the Securities may direct the Trustee in its exercise   of any trust or power.  The Trustee may withhold from Holders notice of any continuing   Default (except a Default in payment of principal or interest) if it determines that   withholding notice is in the interest of the Holders.   14. Trustee Dealings with the Company   Subject to certain limitations imposed by the Act,  the Trustee under the   Indenture, in its individual or any other capacity, may become the owner or pledgee of   Securities 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.   15. No Recourse Against Others   A director, officer, employee or stockholder, as such, of the Company or   any Subsidiary Guarantor shall not have any liability for any obligations of the Company   under the Securities or the Indenture or for any claim based on, in respect of or by reason   of such obligations or their creation.  By accepting a Security, each Holder waives and   releases all such liability.  The waiver and release are part of the consideration for the   issue of the Securities.     

 

27      16. Authentication   This Security shall not be valid until an authorized signatory of the Trustee   (or an authenticating agent) manually signs the certificate of authentication on the other   side of this Security.   17. 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   entireties), 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).   18. CUSIP Numbers   Pursuant to a recommendation promulgated by the Committee on Uniform   Security Identification Procedures the Company has caused CUSIP numbers to be printed   on the Securities and has directed the Trustee to use CUSIP numbers in notices of   redemption as a convenience to Holders.  No representation is made as to the accuracy of   such numbers either as printed on the Securities or as contained in any notice of   redemption and reliance may be placed only on the other identification numbers placed   thereon.   19. Holders’ Compliance with Registration Rights Agreement   Each Holder of a Security, by acceptance hereof, acknowledges and agrees   to the provisions of the Registration Rights Agreement, including the obligations of the   Holders with respect to a registration and the indemnification of the Company to the   extent provided therein.   20. Governing Law   THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED   IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.   The Company will 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 Security in   larger type.  Requests may be made to:   U.S. Concrete, Inc.     331 N. Main St.     Euless, TX 76039     Attention:  General Counsel and Chief Financial Officer        

 

28         ASSIGNMENT FORM   To assign this Security, fill in the form below:   I or we assign and transfer this Security 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 Security on the books of the   Company.  The agent may substitute another to act for him.         Date:  Your Signature:         Sign exactly as your name appears on the other side of this Security.        

 

29      [TO BE ATTACHED TO GLOBAL SECURITIES]      SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY      The following increases or decreases in this Global Security have been made:      Date of   Exchange   Amount of decrease in   Principal  amount of this   Global Security   Amount of increase in   Principal amount of this   Global Security   Principal amount of this   Global Security following   such decrease or increase   Signature of authorized   officer of Trustee or   Securities Custodian     

 

      OPTION OF HOLDER TO ELECT PURCHASE   If you want to elect to have this Security purchased by the Company   pursuant to Section 4.06 or 4.09 of the Indenture, check the box:     If you want to elect to have only part of this Security purchased by the   Company pursuant to Section 4.06 or 4.09  of the Indenture, state the amount in principal   amount:  $      Dated:  Your Signature:    (Sign exactly as your name appears on the other side of this Security.)         Signature Guarantee:   (Signature must be guaranteed)      Signatures must be guaranteed by an “eligible guarantor institution” meeting the   requirements of the Registrar, which requirements include membership or participation in   the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature   guarantee program” as may be determined by the Registrar in addition to, or in   substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as   amended.        

 

      EXHIBIT 2 to Rule 144A/REGULATION S APPENDIX      Form of   Transferee Letter of Representation      U.S. Concrete, Inc.   In care of   U.S. Bank National Association   333 Commerce Street, Suite 800   Nashville, Tennessee 37201   Attention of Corporate Trust Department – U.S. Concrete      Ladies and Gentlemen:   This certificate is delivered to request a transfer of $[     ] principal amount of the   8.500% Senior Secured Notes due 2018 (the “Securities”) of U.S. Concrete, Inc. (the   “Company”).   Upon transfer, the Securities would be registered in the name of the new   beneficial owner as follows:   Name:________________________   Address:______________________   Taxpayer ID Number:____________   The undersigned represents and warrants to you that:   1.  We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2),   (3) or (7) under the Securities Act of 1933, as amended (the “Securities Act”)),   purchasing for our own account or for the account of such an institutional “accredited   investor” at least $250,000 principal amount of the Securities, and we are acquiring the   Securities not with a view to, or for offer or sale in connection with, any distribution in   violation of the Securities Act.  We 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 Securities, and we invest in or purchase securities similar to the Securities in the   normal course of our business.  We, and any accounts for which we are acting, are each   able to bear the economic risk of our or its investment.     

 

2      2.  We understand that the Securities have not been registered under the Securities   Act and, unless so registered, may not be sold except as permitted in the following   sentence.  We agree on our own behalf and on behalf of any investor account for which   we are purchasing Securities to offer, sell or otherwise transfer such Securities prior to   the date that is two years after the later of the date of original issue and the last date on   which the Company or any affiliate of the Company was the owner of such Securities (or   any predecessor thereto) (the “Resale Restriction Termination Date”) only (i) to the   Company, (ii) in the United States to a person whom the seller reasonably believes is a   qualified institutional buyer in a transaction meeting the requirements of Rule 144A,   (iii) to an institutional “accredited investor” within the meaning of Rule 501(a)(1), (2),   (3) or (7) under the Securities Act that is an institutional accredited investor purchasing   for its own account or for the account of an institutional accredited investor, in each case   in a minimum principal amount of the Securities of $250,000,  (iv) outside the United   States in a transaction complying with the provisions of Rule 904 under the Securities   Act, (v) pursuant to an exemption from registration under the Securities Act provided by   Rule 144 (if available) or (vi) pursuant to an effective registration statement under the   Securities Act, in each of cases (i) through (vi) subject to any requirement of law that the   disposition of our property or the property of such investor account or accounts be at all   times within our or their control and in compliance with any applicable state securities   laws.  The foregoing restrictions on resale will not apply subsequent to the Resale   Restriction Termination Date.  If any resale or other transfer of the Securities is proposed   to be made pursuant to clause (iii) above prior to the Resale Restriction Termination   Date, the transferor shall deliver a letter from the transferee substantially in the form of   this letter to the Company and the Trustee, which shall provide, among other things, that   the transferee is an institutional “accredited investor” within the meaning of   Rule 501(a)(1), (2), (3) or (7) under the Securities Act and that it is acquiring such   Securities for investment purposes and not for distribution in violation of the Securities   Act.  Each purchaser acknowledges that the Company and the Trustee reserve the right   prior to the offer, sale or other transfer prior to the Resale Restriction Termination Date   of the Securities pursuant to clause (iii), (iv) or (v) above to require the delivery of an   opinion of counsel, certifications or other information satisfactory to the Company and   the Trustee.   TRANSFEREE:_________________,       by:__________________

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