Document:

Exhibit 10.1

 

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT

 

This FIRST AMENDMENT
EMPLOYMENT AGREEMENT (the “Amendment”) is
entered into on this 16th day of June by and between Penn
National Gaming, Inc. a corporation (the “Company”),
and John Finamore, an individual residing in Maryland (“Executive”).

 

WHEREAS, Executive and
Company are party to that certain Employment Agreement dated December 21,
2008 (the “Agreement”).  All defined terms used in this Amendment, but
not defined herein, shall have the meanings given to them in the Agreement;

 

WHEREAS, the Initial Term of
the Agreement will expire on July 1, 2010; and

 

WHEREAS, Executive and
Company desire to renew of the Agreement on the terms and conditions set forth
below.

 

NOW, THEREFORE, the parties
hereto, intending to be legally bound, hereby agree as follows:

 

ARTICLE I

AMENDMENTS

 

SECTION 1.1                 Renewal Term.  The Agreement is hereby renewed and extended
for a period of 3 years from the expiration of the Initial Term and shall
therefore terminate at the close of business on July 1, 2013, unless
earlier terminated in accordance with Section 3 of the Agreement.

 

ARTICLE II

MISCELLANEOUS

 

SECTION 2.1                 Effect of Amendment.
This Amendment shall not constitute an amendment or modification of any
provision of, or exhibit to, the Agreement not expressly referred to in this
Amendment.  Except as expressly amended
or modified in this Amendment, the provisions of the Agreement are and remain
in full force and effect.  Whenever the
Agreement is referred to herein or in any other agreement, document or
instrument, such reference shall be deemed to be to the Agreement, as amended
by this Amendment, whether or not specific reference is made to this Amendment.

 

SECTION 2.3                 Counterparts.  This Amendment may be executed by facsimile
and/or in one or more counterparts, and by the different parties hereto in
separate counterparts, each of which when executed shall be deemed to be an
original but all of which taken together shall constitute one and the same
agreement.

 

[signature page follows]

 

1

 

IN WITNESS WHEREOF, the
undersigned, intending to be legally bound, have executed this Amendment on of
the date first above written.

 

 

	
   

  	
  PENN NATIONAL
  GAMING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Timothy J. Wilmott

  
	
   

  	
  Name:

  	
  Timothy J. Wilmott

  
	
   

  	
  Title:

  	
  President and Chief
  Operating Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ John Finamore

  
	
   

  	
  John Finamore

  

 

2Exhibit 4.1

 

Execution Version

 

TRIUMPH GROUP, INC.

as Issuer

 

and

 

THE GUARANTORS PARTY HERETO

 

 

8.625%  SENIOR NOTES DUE
2018

 

 

INDENTURE

 

DATED AS OF JUNE 16, 2010

 

 

U.S. BANK NATIONAL ASSOCIATION

as Trustee

 

 

 

CROSS-REFERENCE TABLE*

 

	
  Trust Indenture

  Act Section

  	
   

  	
  Indenture

  Section

  
	
  310

  	
  (a)(1)

  	
   

  	
  7.10

  
	
   

  	
  (a)(2)

  	
   

  	
  7.10

  
	
   

  	
  (a)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(4)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(5)

  	
   

  	
  7.10

  
	
   

  	
  (b)

  	
   

  	
  7.3; 7.10

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  311

  	
  (a)

  	
   

  	
  7.11

  
	
   

  	
  (b)

  	
   

  	
  7.11

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  312

  	
  (a)

  	
   

  	
  2.5

  
	
   

  	
  (b)

  	
   

  	
  11.3

  
	
   

  	
  (c)

  	
   

  	
  11.3

  
	
  313

  	
  (a)

  	
   

  	
  7.6

  
	
   

  	
  (b)(1)

  	
   

  	
  7.6

  
	
   

  	
  (b)(2)

  	
   

  	
  7.6; 7.7

  
	
   

  	
  (c)

  	
   

  	
  7.6; 11.2

  
	
   

  	
  (d)

  	
   

  	
  7.6

  
	
  314

  	
  (a)

  	
   

  	
  4.3; 11.5

  
	
   

  	
  (b)

  	
   

  	
  N.A.

  
	
   

  	
  (c)(1)

  	
   

  	
  11.4

  
	
   

  	
  (c)(2)

  	
   

  	
  11.4

  
	
   

  	
  (c)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (d)

  	
   

  	
  N.A.

  
	
   

  	
  (e)

  	
   

  	
  11.5

  
	
   

  	
  (f)

  	
   

  	
  N.A.

  
	
  315

  	
  (a)

  	
   

  	
  7.1

  
	
   

  	
  (b)

  	
   

  	
  1.1, 7.5; 11.2

  
	
   

  	
  (c)

  	
   

  	
  7.1

  
	
   

  	
  (d)

  	
   

  	
  7.1

  
	
   

  	
  (e)

  	
   

  	
  6.11

  
	
  316

  	
  (a) (last sentence)

  	
   

  	
  2.9

  
	
   

  	
  (a)(1)(A)

  	
   

  	
  6.5

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  6.4

  
	
   

  	
  (a)(2)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  6.7

  
	
   

  	
  (c)

  	
   

  	
  2.13

  
	
  317

  	
  (a)(1)

  	
   

  	
  6.8

  

 

i

 

	
   

  	
  (a)(2)

  	
   

  	
  6.9

  
	
   

  	
  (b)

  	
   

  	
  2.3

  
	
  318

  	
  (a)

  	
   

  	
  11.1

  
	
   

  	
  (b)

  	
   

  	
  N.A.

  
	
   

  	
  (c)

  	
   

  	
  11.1

  

 

N.A.
means not applicable.

 

*              This Cross-Reference Table is not
part of the Indenture.

 

ii

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
  ARTICLE I

  
	
   

  
	
  DEFINITIONS
  AND INCORPORATION BY REFERENCE

  
	
   

  
	
  SECTION 1.1

  	
  Definitions

  	
  1

  
	
  SECTION 1.2

  	
  Other Definitions

  	
  35

  
	
  SECTION 1.3

  	
  Incorporation by Reference of Trust Indenture Act

  	
  35

  
	
  SECTION 1.4

  	
  Rules of Construction

  	
  36

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  
	
   

  
	
  THE NOTES

  
	
   

  
	
  SECTION 2.1

  	
  Form and Dating

  	
  36

  
	
  SECTION 2.2

  	
  Execution and Authentication

  	
  38

  
	
  SECTION 2.3

  	
  Registrar; Paying Agent

  	
  39

  
	
  SECTION 2.4

  	
  Paying Agent to Hold Money in Trust

  	
  39

  
	
  SECTION 2.5

  	
  Holder Lists

  	
  40

  
	
  SECTION 2.6

  	
  Book-Entry Provisions for Global Securities

  	
  40

  
	
  SECTION 2.7

  	
  Replacement Notes

  	
  44

  
	
  SECTION 2.8

  	
  Outstanding Notes

  	
  45

  
	
  SECTION 2.9

  	
  Treasury Notes

  	
  45

  
	
  SECTION 2.10

  	
  Temporary Notes

  	
  45

  
	
  SECTION 2.11

  	
  Cancellation

  	
  45

  
	
  SECTION 2.12

  	
  Defaulted Interest

  	
  46

  
	
  SECTION 2.13

  	
  Record Date

  	
  46

  
	
  SECTION 2.14

  	
  Computation of Interest

  	
  46

  
	
  SECTION 2.15

  	
  CUSIP Number

  	
  46

  
	
  SECTION 2.16

  	
  Special Transfer Provisions

  	
  47

  
	
  SECTION 2.17

  	
  Issuance of Additional Notes

  	
  48

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
   

  
	
  REDEMPTION
  AND PREPAYMENT

  
	
   

  
	
  SECTION 3.1

  	
  Notices to Trustee

  	
  49

  
	
  SECTION 3.2

  	
  Selection of Notes to Be Redeemed

  	
  50

  
	
  SECTION 3.3

  	
  Notice of Redemption

  	
  50

  
	
  SECTION 3.4

  	
  Effect of Notice of Redemption

  	
  51

  
	
  SECTION 3.5

  	
  Deposit of Redemption of Purchase Price

  	
  51

  
				

 

iii

 

	
  SECTION 3.6

  	
  Notes Redeemed in Part

  	
  52

  
	
  SECTION 3.7

  	
  Optional Redemption

  	
  52

  
	
  SECTION 3.8

  	
  Mandatory Redemption

  	
  53

  
	
  SECTION 3.9

  	
  Offer to Purchase

  	
  53

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  
	
  COVENANTS

  
	
   

  
	
  SECTION 4.1

  	
  Payment of Notes

  	
  54

  
	
  SECTION 4.2

  	
  Maintenance of Office or Agency

  	
  55

  
	
  SECTION 4.3

  	
  Provision of Financial Information

  	
  55

  
	
  SECTION 4.4

  	
  Compliance Certificate

  	
  56

  
	
  SECTION 4.5

  	
  Taxes

  	
  57

  
	
  SECTION 4.6

  	
  Stay, Extension and Usury Laws

  	
  57

  
	
  SECTION 4.7

  	
  Limitation on Restricted Payments

  	
  57

  
	
  SECTION 4.8

  	
  Limitation on Dividend and Other Payment Restrictions Affecting
  Restricted Subsidiaries

  	
  60

  
	
  SECTION 4.9

  	
  Limitation on Incurrence of Debt

  	
  63

  
	
  SECTION 4.10

  	
  Limitation on Asset Sales

  	
  63

  
	
  SECTION 4.11

  	
  Limitation on Transactions with Affiliates

  	
  65

  
	
  SECTION 4.12

  	
  Limitation on Liens

  	
  67

  
	
  SECTION 4.13

  	
  Limitation on Sale and Leaseback Transactions

  	
  67

  
	
  SECTION 4.14

  	
  Offer to Purchase upon Change of Control

  	
  68

  
	
  SECTION 4.15

  	
  Corporate Existence

  	
  69

  
	
  SECTION 4.16

  	
  Business Activities

  	
  69

  
	
  SECTION 4.17

  	
  Additional Note Guarantees

  	
  69

  
	
  SECTION 4.18

  	
  Limitation on Creation of Unrestricted Subsidiaries

  	
  70

  
	
  SECTION 4.19

  	
  Maintenance of Properties; Insurance; Books and Records

  	
  71

  
	
  SECTION 4.20

  	
  Payments for Consent

  	
  71

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  
	
   

  
	
  SUCCESSORS

  
	
   

  
	
  SECTION 5.1

  	
  Consolidation, Merger, Conveyance, Transfer or Lease

  	
  71

  
	
  SECTION 5.2

  	
  Successor Person Substituted

  	
  73

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  
	
  DEFAULTS
  AND REMEDIES

  
	
   

  
	
  SECTION 6.1

  	
  Events of Default

  	
  73

  
	
  SECTION 6.2

  	
  Acceleration

  	
  75

  
	
  SECTION 6.3

  	
  Other Remedies

  	
  76

  

 

iv

 

	
  SECTION 6.4

  	
  Waiver of Past Defaults

  	
  76

  
	
  SECTION 6.5

  	
  Control by Majority

  	
  77

  
	
  SECTION 6.6

  	
  Limitation on Suits

  	
  77

  
	
  SECTION 6.7

  	
  Rights of Holders of Notes to Receive Payment

  	
  77

  
	
  SECTION 6.8

  	
  Collection Suit by Trustee

  	
  77

  
	
  SECTION 6.9

  	
  Trustee May File Proofs of Claim

  	
  78

  
	
  SECTION 6.10

  	
  Priorities

  	
  78

  
	
  SECTION 6.11

  	
  Undertaking for Costs

  	
  79

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  
	
   

  
	
  TRUSTEE

  
	
   

  
	
  SECTION 7.1

  	
  Duties of Trustee

  	
  79

  
	
  SECTION 7.2

  	
  Rights of Trustee

  	
  80

  
	
  SECTION 7.3

  	
  Individual Rights of Trustee

  	
  82

  
	
  SECTION 7.4

  	
  Trustee’s Disclaimer

  	
  82

  
	
  SECTION 7.5

  	
  Notice of Defaults

  	
  82

  
	
  SECTION 7.6

  	
  Reports by Trustee to Holders of the Notes

  	
  82

  
	
  SECTION 7.7

  	
  Compensation and Indemnity

  	
  83

  
	
  SECTION 7.8

  	
  Replacement of Trustee

  	
  84

  
	
  SECTION 7.9

  	
  Successor Trustee by Merger, Etc.

  	
  85

  
	
  SECTION 7.10

  	
  Eligibility; Disqualification

  	
  85

  
	
  SECTION 7.11

  	
  Preferential Collection of Claims Against the Issuer

  	
  85

  
	
  SECTION 7.12

  	
  Trustee’s Application for Instructions from the Issuer

  	
  85

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  
	
   

  
	
  DEFEASANCE
  AND COVENANT DEFEASANCE

  
	
   

  
	
  SECTION 8.1

  	
  Option to Effect Defeasance or Covenant Defeasance

  	
  86

  
	
  SECTION 8.2

  	
  Defeasance and Discharge

  	
  86

  
	
  SECTION 8.3

  	
  Covenant Defeasance

  	
  88

  
	
  SECTION 8.4

  	
  Conditions to Defeasance or Covenant Defeasance

  	
  88

  
	
  SECTION 8.5

  	
  Deposited Money and Government Securities to Be Held in
  Trust; Other Miscellaneous Provisions

  	
  90

  
	
  SECTION 8.6

  	
  Repayment to Issuer

  	
  90

  
	
  SECTION 8.7

  	
  Reinstatement

  	
  91

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  
	
   

  
	
  AMENDMENT,
  SUPPLEMENT AND WAIVER

  
	
   

  
	
  SECTION 9.1

  	
  Without Consent of Holders of the Notes

  	
  91

  
	
  SECTION 9.2

  	
  With Consent of Holders of Notes

  	
  92

  

 

v

 

	
  SECTION 9.3

  	
  Compliance with TIA

  	
  93

  
	
  SECTION 9.4

  	
  Revocation and Effect of Consents

  	
  93

  
	
  SECTION 9.5

  	
  Notation on or Exchange of Notes

  	
  94

  
	
  SECTION 9.6

  	
  Trustee to Sign Amendments, Etc.

  	
  94

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  
	
   

  
	
  NOTE
  GUARANTEES

  
	
   

  
	
  SECTION 10.1

  	
  Note Guarantees

  	
  95

  
	
  SECTION 10.2

  	
  Delivery of Note Guarantee

  	
  96

  
	
  SECTION 10.3

  	
  Severability

  	
  96

  
	
  SECTION 10.4

  	
  Limitation of Guarantors’ Liability

  	
  96

  
	
  SECTION 10.5

  	
  Guarantors May Consolidate, Etc., on Certain
  Terms

  	
  97

  
	
  SECTION 10.6

  	
  Releases Following Sale of Assets

  	
  98

  
	
  SECTION 10.7

  	
  Release of a Guarantor

  	
  98

  
	
  SECTION 10.8

  	
  Benefits Acknowledged

  	
  98

  
	
  SECTION 10.9

  	
  Future Guarantors

  	
  99

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI

  
	
   

  
	
  MISCELLANEOUS

  
	
   

  
	
  SECTION 11.1

  	
  TIA Controls

  	
  99

  
	
  SECTION 11.2

  	
  Notices

  	
  99

  
	
  SECTION 11.3

  	
  Communication by Holders of Notes with Other Holders of
  Notes

  	
  100

  
	
  SECTION 11.4

  	
  Certificate and Opinion as to Conditions Precedent

  	
  100

  
	
  SECTION 11.5

  	
  Statements Required in Certificate or Opinion

  	
  101

  
	
  SECTION 11.6

  	
  Rules by Trustee and Agents

  	
  101

  
	
  SECTION 11.7

  	
  No Personal Liability of Directors, Officers, Employees,
  Stockholders and the Trustee

  	
  101

  
	
  SECTION 11.8

  	
  Governing Law

  	
  102

  
	
  SECTION 11.9

  	
  No Adverse Interpretation of Other Agreements

  	
  102

  
	
  SECTION 11.10

  	
  Successors

  	
  102

  
	
  SECTION 11.11

  	
  Severability

  	
  102

  
	
  SECTION 11.12

  	
  Counterpart Originals

  	
  102

  
	
  SECTION 11.13

  	
  Table of Contents, Headings, Etc.

  	
  102

  
	
  SECTION 11.14

  	
  Qualification of Indenture

  	
  103

  

 

EXHIBITS

 

	
  Exhibit A

  	
   

  	
  FORM OF
  8.625% SENIOR NOTE

  
	
  Exhibit B

  	
   

  	
  FORM OF
  NOTATIONAL GUARANTEE

  

 

vi

 

	
  Exhibit C

  	
   

  	
  FORM OF
  CERTIFICATE TO BE DELIVERED IN CONNECTION WITH TRANSFERS PURSUANT TO RULE
  144A

  
	
  Exhibit D

  	
   

  	
  FORM OF
  CERTIFICATE TO BE DELIVERED IN CONNECTION WITH TRANSFERS PURSUANT TO
  REGULATION S

  

 

vii

 

This
Indenture, dated as of June 16, 2010, is by and among Triumph Group, Inc.,
a Delaware corporation (the “Company” or the
“Issuer”), the Guarantors (as defined
herein), and U.S. Bank National Association, a national banking association, as
trustee (the “Trustee”).

 

Each
party agrees as follows for the benefit of the other parties and for the equal
and ratable benefit of the holders of (i) the Issuer’s 8.625% Senior Notes
due 2018 issued on the date hereof that contain the restrictive legend in Exhibit A
(the “Initial Notes”), (ii) Exchange
Notes issued in exchange for the Initial Notes pursuant to the Registration
Rights Agreement (as defined below) or pursuant to an effective registration
statement under the Securities Act (as defined below) without the restrictive
legends in Exhibit A (the “Exchange Notes”)
and (iii) Additional Notes (as defined below) issued from time to time as
either Initial Notes or Exchange Notes (each as defined below and together with
the Initial Notes and any Exchange Notes, the “Notes”).

 

ARTICLE I

 

DEFINITIONS AND
INCORPORATION BY REFERENCE

 

SECTION 1.1                                                  Definitions.

 

“Acquired Debt”  means Debt (1) of a
Person or any of its Subsidiaries existing at the time such Person becomes a
Restricted Subsidiary or (2) assumed in connection with the acquisition of
assets from such Person.  Acquired Debt
shall be deemed to have been Incurred, with respect to clause (1) of
the preceding sentence, on the date such Person becomes a Restricted Subsidiary
and, with respect to clause (2) of the preceding sentence, on the
date of consummation of such acquisition of assets.

 

“Additional
Interest”  means all
additional interest owing on the Notes pursuant to the Registration Rights
Agreement.

 

“Additional Notes” means Notes (other than
the Initial Notes) issued pursuant to Article II hereof and otherwise in
compliance with the provisions of this Indenture.

 

“Affiliate”  of any Person means any
other Person directly or indirectly controlling or controlled by or under
direct or indirect common control with such 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 that correspond to the foregoing.  For purposes of Section 4.11, any Person
directly or indirectly owning 15% or more of the outstanding Capital Interests
of the Company will be deemed an Affiliate.

 

“Agent” means any Registrar, Paying Agent
(so long as Trustee serves in such capacity) or co-registrar.

 

 

“Applicable
Premium”  means, with
respect to any Note on any applicable redemption date, the greater of:

 

(1)                                  1% of the then
outstanding principal amount of the Note; and

 

(2)                                  the excess of:

 

(a)                                  the present value at such
redemption date of (i) the Redemption Price of the Note at July 15,
2014 (such Redemption Price being set forth in the table appearing in Section 3.7(ii))
plus (ii) all required interest payments due on the Note through July 15,
2014 (excluding accrued but unpaid interest), computed using a discount rate
equal to the Treasury Rate as of such redemption date plus 50 basis points;
over

 

(b)                                 the then outstanding
principal amount of the Note.

 

“Asset Acquisition” means:

 

(a)                                  an Investment
by the Company or any Restricted Subsidiary in any other Person pursuant to
which such Person shall become a Restricted Subsidiary, or shall be merged with
or into the Company or any Restricted Subsidiary; or

 

(b)                                 the acquisition
by the Company or any Restricted Subsidiary of the assets of any Person which
constitute all or substantially all of the assets of such Person, any division
or line of business of such Person or any other properties or assets of such
Person other than in the ordinary course of business and consistent with past
practices.

 

“Asset Sale”  means any transfer,
conveyance, sale, lease or other disposition (including, without limitation,
dispositions pursuant to any consolidation or merger) by the Company or any of
its Restricted Subsidiaries to any Person (other than to the Company or one or
more of its Restricted Subsidiaries) in any single transaction or series of
transactions of:

 

(i)                                     Capital
Interests in another Person (other than directors’ qualifying shares or shares
or interests required to be held by foreign nationals pursuant to local law);
or

 

(ii)                                  any other
property or assets (other than in the normal course of business, including, as
applicable, inventory sales and any sale or other disposition of obsolete or
permanently retired equipment);

 

provided, however,  that the term “Asset Sale”
shall exclude:

 

(a)                                  any asset
disposition permitted by Section 5.1 that constitutes a disposition of all
or substantially all of the assets of the Company and its Restricted
Subsidiaries taken as a whole;

 

2

 

(b)                                 any transfer,
conveyance, sale, lease or other disposition of property or assets, the gross
proceeds of which (exclusive of indemnities) do not exceed in any one or
related series of transactions $5.0 million;

 

(c)                                  sales or other
dispositions of cash or Eligible Cash Equivalents;

 

(d)                                 sales of
interests in Unrestricted Subsidiaries;

 

(e)                                  the sale and
leaseback of any assets within 90 days of the acquisition thereof;

 

(f)                                    the disposition
of assets that, in the good faith judgment of the Company, are no longer used
or useful in the business of such entity;

 

(g)                                 a Restricted
Payment or Permitted Investment that is otherwise permitted by this Indenture;

 

(h)                                 any trade-in of
equipment in exchange for other equipment; provided that
in the good faith judgment of the Company, the Company or such Restricted
Subsidiary receives equipment having a fair market value equal to or greater than
the equipment being traded in;

 

(i)                                     the concurrent
purchase and sale or exchange of Related Business Assets or a combination of
Related Business Assets between the Company or any of its Restricted
Subsidiaries and another Person to the extent that the Related Business Assets
received by the Company or its Restricted Subsidiaries are of equivalent or
better market value than the Related Business Assets transferred;

 

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

 

(k)                                  leases or
subleases in the ordinary course of business to third persons not interfering
in any material respect with the business of the Company or any of its
Restricted Subsidiaries and otherwise in accordance with the provisions of this
Indenture;

 

(l)                                     any disposition
by a Subsidiary to the Company or by the Company or a Subsidiary to a
Restricted Subsidiary;

 

(m)                               dispositions of
accounts receivable in connection with the collection or compromise thereof in
the ordinary course of business and consistent with past practice, including,
without limitation, those under the GE/Citi Sales Arrangements or similar
arrangements;

 

(n)                                 licensing or
sublicensing of intellectual property or other general intangibles in
accordance with industry practice in the ordinary course of business;

 

3

 

(o)                                 any transfer of
accounts receivable, or a fractional undivided interest therein, by a
Receivable Subsidiary in a Qualified Receivables Transaction;

 

(p)                                 sales of
accounts receivable to a Receivable Subsidiary pursuant to a Qualified
Receivables Transaction for the Fair Market Value thereof including cash in an
amount at least equal to 75% of the Fair Market Value thereof (for the purposes
of this clause (p), Purchase Money Notes will be deemed to be cash);

 

(q)                                 foreclosures on
assets to the extent it would not otherwise result in a Default or Event of
Default; or

 

(r)                                    sales or
transfers of equipment under the Leasing Facility.

 

For
purposes of this definition, any series of related transactions that, if
effected as a single transaction, would constitute an Asset Sale shall be
deemed to be a single Asset Sale effected when the last such transaction which
is a part thereof is effected.

 

“Asset Sale Offer” means an Offer to
Purchase required to be made by the Company pursuant to Section 4.10 to
all Holders.

 

“Attributable Debt” in respect of a Sale
and Leaseback Transaction means, at the time of determination, the present
value (discounted at the rate of interest implicit in such transaction) of the
total obligations of the lessee for rental payments during the remaining term
of the lease included in such Sale and Leaseback Transaction (including any
period for which such lease has been or may be extended).

 

“Average Life” means, as of any date of
determination, with respect to any Debt, the quotient obtained by dividing
(i) the sum of the products of (x) the number of years from the date
of determination to the dates of each successive scheduled principal payment
(including any sinking fund or mandatory redemption payment requirements) of
such Debt multiplied by (y) the amount of such principal payment by
(ii) the sum of all such principal payments.

 

“Bankruptcy Law” means Title 11, U.S. Code
or any similar federal or state law for the relief of debtors.

 

“Beneficial Owner” has the meaning assigned
to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act,
except that in calculating the beneficial ownership of any particular “person,”
as such term is used in Section 13(d)(3) of the Exchange Act, such “person”
shall be deemed to have beneficial ownership of all securities that such “person”
has the right to acquire, whether such right is currently exercisable or is
exercisable only upon the occurrence of a subsequent condition.

 

“Board of Directors” means (i) with
respect to the Company or any Restricted Subsidiary, its board of directors or
any duly authorized committee thereof; (ii) with respect to a corporation,
the board of directors of such corporation or any duly authorized committee
thereof; 

 

4

 

and
(iii) with respect to any other entity, the board of directors or similar
body of the general partner or managers of such entity or any duly authorized
committee thereof.

 

“Board Resolution” means a copy of a
resolution certified by the Secretary or an Assistant Secretary of the Company
or any Restricted Subsidiary to have been duly adopted by the Board of
Directors, unless the context specifically requires that such resolution be
adopted by a majority of the disinterested directors, in which case by a
majority of such disinterested directors, and to be in full force and effect on
the date of such certification and delivered to the Trustee.

 

“Business Day” means any day other than a
Legal Holiday.

 

“Capital Interests” in any Person means any
and all shares, interests (including Preferred Interests), participations or
other equivalents in the equity interest (however designated) in such Person
and any rights (other than Debt securities convertible into an equity
interest), warrants or options to acquire an equity interest in such Person.

 

“Capital Lease Obligations” means any
obligation under a lease that is required to be capitalized for financial
reporting purposes in accordance with GAAP; and the amount of Debt 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.

 

“Carlyle” means The Carlyle Group and if applicable, each of
its respective Affiliates and funds or partnerships managed by it or its
respective Affiliates but not including, however, any portfolio companies of
any of  the foregoing,

 

“Certificated Notes” means Notes that are
in the form of Exhibit A attached hereto, other than the Global
Notes.

 

“Change of Control” means:

 

(1)                                  the Company
becomes aware of (by way of a report or any other filing pursuant to
Section 13(d) of the Exchange Act, proxy, vote, written notice or
otherwise) the acquisition by any “person” or “group” (as such terms are used
in Sections 13(d) and 14(d) of the Exchange Act), that is or
becomes the ultimate “beneficial owner” (as such term is used in
Rules 13d-3 and 13d-5 under the Exchange Act, except that for purposes of
this clause (1) such person or group shall be deemed to have “beneficial
ownership” of all shares that any such person or group 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 Voting
Interests in the Company,

 

(2)                                  during any
period of two consecutive years, individuals who at the beginning of such
period constituted the Board of Directors of the Company (together 

 

5

 

with
any new directors whose election by the Board of Directors or whose nomination
for election by the equityholders of the Company was approved by a vote of a
majority of the directors of the Company then still in office who were either
directors at the beginning of such period or whose election or nomination for
election was previously so approved) cease for any reason to constitute a
majority of the Company’s Board of Directors then in office or

 

(3)                                  the Company
sells, conveys, transfers or leases (either in one transaction or a series of
related transactions) all or substantially all of its assets to a Person other
than a Restricted Subsidiary of the Company.

 

“Code” means the Internal Revenue Code of
1986, as amended from time to time, and the regulations promulgated thereunder.

 

“Commission” means the Securities and Exchange
Commission and any successor thereto.

 

“Common Interests” of any Person means
Capital Interests in such Person that do not rank prior, as to the payment of
dividends or as to the distribution of assets upon any voluntary or involuntary
liquidation, dissolution or winding up of such Person, to Capital Interests of
any other class in such Person.

 

“Company” or “Issuer”
has the meaning set forth in the preamble hereto until a successor replaces it
in accordance with the applicable provisions of this Indenture and, thereafter,
means the successor thereto.

 

“Consolidated Cash Flow Available for Fixed Charges”
means, with respect to any Person for any period:

 

(i)                                 the sum of, without
duplication, the amounts for such period, taken as a single accounting period,
of:

 

(a)                                  Consolidated Net Income;

 

(b)                                 Consolidated Non-cash
Charges;

 

(c)                                  Consolidated Interest
Expense to the extent the same was deducted in computing Consolidated Net
Income;

 

(d)                                 Consolidated Income Tax
Expense; and

 

(e)                                  any expenses or charges related
to any equity offering, Permitted Investment, recapitalization or Debt
Incurrence permitted to be made under this Indenture (whether or not
successful) or related to this offering of the Notes; less

 

(ii)                                   the amount of extraordinary,
non-recurring or unusual gains.

 

6

 

“Consolidated Fixed Charge Coverage Ratio”
means, with respect to any Person, the ratio of the aggregate amount of
Consolidated Cash Flow Available for Fixed Charges of such Person for the four
full fiscal quarters, treated as one period, for which financial information in
respect thereof is available immediately preceding the date of the transaction
(the “Transaction Date”) giving
rise to the need to calculate the Consolidated Fixed Charge Coverage Ratio
(such four full fiscal quarter period being referred to herein as the “Four-Quarter Period”) to the aggregate
amount of Consolidated Fixed Charges of such Person for the Four-Quarter
Period.  In addition to and without
limitation of the foregoing, for purposes of this definition, “Consolidated
Cash Flow Available for Fixed Charges” and “Consolidated Fixed Charges” shall
be calculated after giving effect on a pro forma basis for the period of
such calculation, to any Asset Sales or other dispositions or Asset
Acquisitions, investments, mergers, consolidations and discontinued operations
(as determined in accordance with GAAP) and designations of any Restricted
Subsidiary to be an Unrestricted Subsidiary or any Unrestricted Subsidiary to
be a Restricted Subsidiary occurring during the Four-Quarter Period or any time
subsequent to the last day of the Four-Quarter Period and on or prior to the
Transaction Date, as if such Asset Sale or other disposition or Asset
Acquisition (including the incurrence or assumption of any such Acquired Debt),
investment, merger, consolidation, disposed operation or designation occurred
on the first day of the Four-Quarter Period. 
For purposes of this definition, pro forma calculations shall be made in
accordance with Article 11 of Regulation S-X promulgated under the
Securities Act.

 

If
the Debt which is the subject of a determination of the Consolidated Fixed
Charge Coverage Ratio is Acquired Debt, or Debt Incurred in connection with the
simultaneous acquisition of any Person, business, property or assets, or Debt
of an Unrestricted Subsidiary being designated as a Restricted Subsidiary, then
such ratio shall be determined by giving effect (on a pro forma basis, as if
the transaction had occurred at the beginning of the Four-Quarter Period) to (x) the
Incurrence of such Acquired Debt or such other Debt by the Company or any of
its Restricted Subsidiaries and (y) the inclusion, in Consolidated Cash
Flow Available for Fixed Charges, of the Consolidated Cash Flow Available for
Fixed Charges of the acquired Person, business, property or assets or
redesignated Subsidiary.

 

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

 

(a)                                 interest on outstanding Debt
determined on a fluctuating basis as of the Transaction Date and which will
continue to be so determined thereafter shall be deemed to have accrued at a
fixed rate per annum equal to the rate of interest on such Debt in effect
(taking into account any Hedging Obligations or Swap Contract applicable to
such Debt) on the Transaction Date; and

 

(b)                                 if interest on
any Debt actually incurred on the Transaction Date may optionally be determined
at an interest rate based upon a factor of a prime or similar rate, a
eurocurrency interbank offered rate, or other rates, then the interest rate in
effect (taking into account any Hedging Obligations applicable to such Debt) on
the Transaction Date will be deemed to have been in effect during the
Four-Quarter Period.

 

7

 

If
such Person or any of its Restricted Subsidiaries directly or indirectly
Guarantees Debt of a third Person, the above clause shall give effect to the
incurrence of such Guaranteed Debt as if such Person or such Subsidiary had
directly incurred or otherwise assumed such Guaranteed Debt.

 

“Consolidated Fixed Charges” means, with
respect to any Person for any period, the sum of, without duplication, the amounts
for such period of:

 

(a)                                 Consolidated Interest
Expense; and

 

(b)                                 the product of
(i) all dividends and other distributions paid or accrued during such
period in respect of Redeemable Capital Interests of such Person and its
Restricted Subsidiaries (other than dividends paid in Qualified Capital
Interests), times (ii) a
fraction, the numerator of which is one and the denominator of which is one minus the then current combined federal,
state and local statutory tax rate of such Person, expressed as a decimal.

 

“Consolidated Income Tax Expense” means,
with respect to any Person for any period, the provision for federal, state,
local and foreign income taxes of such Person and its Restricted Subsidiaries
for such period as determined on a consolidated basis in accordance with GAAP
paid or accrued during such period, including any penalties and interest
related to such taxes or arising from any tax examinations, to the extent the
same were deducted in computing Consolidated Net Income.

 

“Consolidated Interest Expense” means, with
respect to any Person for any period, without duplication, the sum of:

 

(i)                                 the total interest expense
of such Person and its Restricted Subsidiaries for such period as determined on
a consolidated basis in accordance with GAAP, including, without limitation:

 

(a)                                  any amortization of Debt
discount;

 

(b)                                 the net cost under any
Hedging Obligation or Swap Contract in respect of interest rate protection
(including any amortization of discounts);

 

(c)                                  the interest portion of any
deferred payment obligation;

 

(d)                                 all commissions, discounts
and other fees and charges owed with respect to letters of credit, bankers’
acceptances, financing activities or similar activities; and

 

(e)                                  all accrued interest;

 

8

 

(ii)                                  the interest component of
Capital Lease Obligations paid, accrued and/or scheduled to be paid or accrued
by such Person and its Restricted Subsidiaries during such period determined on
a consolidated basis in accordance with GAAP; and

 

(iii)                               all capitalized interest of
such Person and its Restricted Subsidiaries for such period;

 

less
interest income of such Person and its Restricted Subsidiaries for such period;
provided, however, that Consolidated Interest
Expense will exclude (I) the amortization or write-off of debt issuance
costs and deferred financing fees, commissions, fees and expenses,
(II) any expensing of interim loan commitment and other financing fees and
(III) any interest on the Convertible Notes to the extent not paid in
cash.

 

“Consolidated Net Income” means, with
respect to any specified Person for any period, the aggregate of the net income
of such Person and its Subsidiaries for such period, on a consolidated basis,
determined in accordance with GAAP; provided that:

 

(A)                              the net income
(but not loss) of any Person that is not a Restricted Subsidiary or that is
accounted for by the equity method of accounting shall be included only to the
extent of the amount of dividends or distributions paid in cash to the
specified Person or a Restricted Subsidiary thereof;

 

(B)                                the net income
of any Restricted Subsidiary shall be excluded to the extent that the
declaration or payment of dividends or similar distributions by that Restricted
Subsidiary of that net income is not at the date of determination permitted
without any prior governmental approval (that has not been obtained) or,
directly or indirectly, by operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule or
governmental regulation applicable to that Restricted Subsidiary or its equity
holders;

 

(C)                                the net income
of any Person acquired during the specified period for any period prior to the
date of such acquisition shall be excluded;

 

(D)                               gains or losses
on Asset Sales shall be excluded;

 

(E)                                 the cumulative
effect of a change in accounting principles shall be excluded; and

 

(F)                                 non-recurring
expenses and charges related to the Transaction shall be excluded in an amount
not to exceed $40,000,000; and

 

(G)                                notwithstanding
clause (A) above, (x) the net income (but not loss) of any
Unrestricted Subsidiary shall be excluded, whether or not distributed to the
specified Person or one of its Subsidiaries and (y) the net income (or
loss) attributable to any discontinued operations shall be excluded.

 

9

 

“Consolidated Non-cash Charges” means, with
respect to any Person for any period, the aggregate depreciation, amortization
(including amortization of goodwill, other intangibles, deferred financing
fees, debt issuance costs, commissions, fees and expenses) and non-cash charges
and non-cash expenses of such Person and its Restricted Subsidiaries,
including, without limitation, non-cash charges and non-cash expenses related
to stock-based compensation, asset impairments or writedowns, reducing
Consolidated Net Income of such Person and its Restricted Subsidiaries for such
period, determined on a consolidated basis in accordance with GAAP (excluding
any such charges constituting an extraordinary item or loss or any charge which
requires an accrual of or a reserve for cash charges for any future period).

 

“Convertible Notes” means the 2.625% convertible senior
subordinated notes due 2026 issued by the Company on September 18, 2006
and governed by the indenture dated as of September 18, 2006 between the
Company and The Bank of New York Trust Company, N.A. as trustee.

 

“Corporate Trust Office of the Trustee” shall be at the
address of the Trustee specified in Section 11.2 hereof or such other
address as to which the Trustee may give notice to the Company.

 

“Credit Agreement” means collectively, (1) the
Company’s senior secured term loan B credit facility, dated the Issue Date, by
and among the Company, the guarantors named therein and Royal Bank of Canada,
as administrative agent, and the other agents and lenders named therein,
providing for term loan borrowings and (2) the Company’s Revolving Credit
Agreement, dated May 10, 2010, by and among the Company, the guarantors
named therein and PNC Bank, National Association, as administrative agent, and
the other agents and lenders named therein, providing for revolving credit
borrowings, including, in each of case (1) and (2), all related notes,
letters of credit, collateral documents, Guarantees, and any other related
agreements and instruments executed and delivered in connection therewith, in
each case as further amended, modified, supplemented, restated, refinanced,
refunded or replaced in whole or in part from time to time including by or
pursuant to any agreement or instrument that extends the maturity of any Debt thereunder,
or increases the amount of available borrowings thereunder (provided that such increase in borrowings is permitted under
clause (i) or (xiv) of the definition of the term “Permitted Debt”),
or adds Subsidiaries of the Company as additional borrowers or guarantors
thereunder, in each case with respect to such agreements or any successor or
replacement agreements and whether by the same or any other agent, lender,
group of lenders, purchasers or debt holders.

 

“Credit Facilities” means (i) the
Credit Agreement, as amended, restated, supplemented, waived, replaced (whether
or not upon termination, and whether with the original lenders or otherwise),
restructured, repaid, refunded, refinanced or otherwise modified from time to
time, including any agreement or indenture extending the maturity thereof,
refinancing, replacing or otherwise restructuring all or any portion of the
Debt under such agreements or any successor or replacement agreement or
agreements or increasing the amount loaned or issued thereunder or altering the
maturity thereof, (ii) any Qualified Receivables Transaction and (iii) whether
or not the agreements referred to in clauses (i) and (ii) remain
outstanding, one or more debt facilities, 

 

10

 

commercial
paper facilities or Debt Issuances with banks, investment banks, insurance
companies, mutual funds, other institutional lenders, institutional investors
or any of the foregoing providing for revolving credit loans, term loans,
notes, bonds, indentures, debentures, receivables financing (including through
the sale of receivables to such lenders, other financiers or to special purpose
entities formed to borrow from (or sell such receivables to) such lenders or
other financiers against such receivables), letters of credit, bankers’
acceptances, other borrowings or Debt Issuances, in each case, as amended,
restated, modified, renewed, extended, refunded, replaced or refinanced (in
each case, without limitation as to amount), in whole or in part, from time to
time (including through one or more Debt Issuances) and any agreements and
related documents governing Debt or Obligations incurred to refinance amounts
then outstanding or permitted to be outstanding, whether or not with the
original administrative agent, lenders, investment banks, insurance companies,
mutual funds, other institutional lenders, institutional investors or any of
the foregoing and whether provided under the original agreement, indenture or
other documentation relating thereto.

 

“Debt” means at any time (without
duplication), with respect to any Person, whether recourse is to all or a
portion of the assets of such Person, or non-recourse, the following: (i) all
indebtedness of such Person for money borrowed or for the deferred purchase
price of property, excluding any trade payables or other current liabilities
incurred in the normal course of business; (ii) all obligations of such
Person evidenced by bonds, debentures, notes, or other similar instruments; (iii) all
reimbursement obligations of such Person with respect to letters of credit,
bankers’ acceptances or similar facilities (excluding obligations in respect of
letters of credit or bankers’ acceptances issued in respect of trade payables)
issued for the account of such Person; provided that
such obligations shall not constitute Debt except to the extent drawn and not
repaid within five Business Days; (iv) all indebtedness created or arising
under any conditional sale or other title retention agreement with respect to
property or assets acquired by such Person; (v) all Capital Lease
Obligations of such Person; (vi) the maximum fixed redemption or
repurchase price of Redeemable Capital Interests in such Person at the time of
determination; (vii) the liquidation amount or liquidation preference of
any Preferred Interests issued by a Restricted Subsidiary that is not a
Subsidiary Guarantor; (viii) any Swap Contracts and Hedging Obligations of
such Person at the time of determination; (ix) Attributable Debt with
respect to any Sale and Leaseback Transaction to which such Person is a party;
and (x) all obligations of the types referred to in clauses (i) through
(ix) of this definition of another Person, the payment of which, in either
case, (A) such Person has Guaranteed or (B) is secured by (or the
holder of such Debt or the recipient of such dividends or other distributions
has an existing right, whether contingent or otherwise, to be secured by) any
Lien upon the property or other assets of such Person, even though such Person has
not assumed or become liable for the payment of such Debt. For purposes of the
foregoing: (a) the maximum fixed repurchase price of any Redeemable
Capital Interests that do not have a fixed repurchase price shall be calculated
in accordance with the terms of such Redeemable Capital Interests as if such
Redeemable Capital Interests were repurchased on any date on which Debt shall
be required to be determined pursuant to this Indenture; provided,
however, that, if such Redeemable Capital Interests are not then
permitted to be repurchased, the repurchase price shall be the book value of
such Redeemable Capital Interests; (b) the amount outstanding at any time
of any Debt issued with original issue discount 

 

11

 

is
the principal amount of such Debt less the remaining unamortized portion of the
original issue discount of such Debt at such time as determined in conformity
with GAAP, but such Debt shall be deemed Incurred only as of the date of
original issuance thereof; (c) the amount of any Debt described in clause (viii) is
the net amount payable (after giving effect to permitted set-off) if such Swap
Contracts or Hedging Obligations are terminated at that time due to default of
such Person; (d) the amount of any Debt described in clause (x)(A) above
shall be the maximum liability under any such Guarantee; (e) the amount of
any Debt described in clause (x)(B) above shall be the lesser of (I) the
maximum amount of the obligations so secured and (II) the Fair Market
Value of such property or other assets; (f) interest, fees, premium, and
expenses and additional payments, if any, will not constitute Debt; and (g) to
the extent not otherwise included in this definition, the Receivables
Transaction Amount outstanding relating to any Qualified Receivables
Transaction shall be deemed to constitute Debt and, in any Qualified
Receivables Transaction structured as a transfer of accounts receivable and
related assets, such Debt shall be deemed to constitute Debt of the originator
of such accounts receivable and related assets.

 

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

 

“Debt Issuances” means, with respect to the Company or any
Subsidiary Guarantor, one or more issuances after the Issue Date of Debt
evidenced by notes, debentures, bonds or other similar securities or
instruments.

 

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

 

“Depositary” means, with respect to the
Notes issuable or issued in whole or in part in global form, the Person
specified in Section 2.3 hereof as the Depositary with respect to the
Notes, until a successor shall have been appointed and become such pursuant to Section 2.6
hereof, and, thereafter, “Depositary” shall mean or include such successor.

 

“DTC” means The Depository Trust Company.

 

“Eligible Bank” means a bank or trust
company (i) that is organized and existing under the laws of the United
States of America or Canada, or any state, territory, province or possession
thereof, (ii) that, as of the time of the making or acquisition of an
Investment in such bank or trust company, has combined capital and surplus in
excess of $500.0 million and (iii) the senior Debt of which is rated
at least “A-2” by Moody’s or at least “A” by S&P.

 

“Eligible Cash Equivalents” means any of
the following Investments: 
(i) securities issued or directly and fully guaranteed or insured
by the United States or any agency or instrumentality thereof (provided that the full faith and credit of
the United States is pledged in support thereof) maturing not more than one
year after the date of acquisition; (ii) time deposits 

 

12

 

in
and certificates of deposit of any Eligible Bank, provided that such Investments have a maturity date not more
than two years after date of acquisition and that the Average Life of all such
Investments is one year or less from the respective dates of acquisition;
(iii) repurchase obligations with a term of not more than 180 days
for underlying securities of the types described in clause (i) above
entered into with any Eligible Bank; (iv) direct obligations issued by any
state of the United States or any political subdivision or public
instrumentality thereof, provided that
such Investments mature, or are subject to tender at the option of the holder
thereof, within 365 days after the date of acquisition and, at the time of
acquisition, have a rating of at least A from S&P or A-2 from Moody’s (or
an equivalent rating by any other nationally recognized rating agency);
(v) commercial paper of any Person other than an Affiliate of the Company
and other than structured investment vehicles, provided
that such Investments have one of the two highest ratings obtainable
from either S&P or Moody’s and mature within 180 days after the date
of acquisition; (vi) overnight and demand deposits in and bankers’
acceptances of any Eligible Bank and demand deposits in any bank or trust
company to the extent insured by the Federal Deposit Insurance Corporation
against the Bank Insurance Fund; (vii) money market funds substantially
all of the assets of which comprise Investments of the types described in
clauses (i) through (vi); and (viii) instruments equivalent to
those referred to in clauses (i) through (vi) above or funds
equivalent to those referred to in clause (vii) above denominated in
Euros or any other foreign currency comparable in credit quality and tender to
those referred to in such clauses and customarily used by corporations for cash
management purposes in jurisdictions outside the United States to the extent
reasonably required in connection with any business conducted by any Restricted
Subsidiary organized in such jurisdiction, all as determined in good faith by
the Company.

 

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

 

“Exchange Notes” has the meaning set forth
in the Preamble.

 

“Exchange Offer” means an offer that may be
made by the Issuer pursuant to the Registration Rights Agreement to exchange
Notes bearing the Restricted Notes Legend for the Exchange Notes.

 

“Existing Receivables Facility” means the receivables
purchase agreement dated as of August 7, 2008, as amended from time to
time, among Triumph Receivables, LLC, as seller, the Company, as servicer, the
various purchaser groups from time to time party thereto, and PNC Bank,
National Association as administrator, together with all related notes, letters
of credit, collateral documents, Guarantees, and any other related agreements
and instruments executed and delivered in connection therewith (including
without limitation the purchase and sale agreement dated August 7, 2008,
as amended from time to time, among the Company, individually and as servicer,
Triumph Receivables, LLC and the other Subsidiaries party thereto), in each
case as further amended, modified, supplemented, restated, refinanced, refunded
or replaced in whole or in part from time to time including by or pursuant to
any agreement or instrument that extends the maturity of any Debt thereunder,
or increases the amount of available borrowings thereunder (provided that such increase in borrowings is permitted under
clause (i) or (xiv) of the definition of the term “Permitted Debt”),
or adds Subsidiaries of the Company as 

 

13

 

additional
sellers, originators, borrowers or guarantors thereunder, in each case with
respect to such agreement or any successor or replacement agreement and whether
by the same or any other agent, lender, group of lenders, purchasers or debt
holders.

 

“Expiration Date” has the meaning set forth
in the definition of “Offer to Purchase.”

 

“Fair Market Value” means, with respect to
the consideration received or paid in any transaction or series of
transactions, the fair market value thereof as determined in good faith by the
Company.

 

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

 

“GAAP” means generally accepted accounting
principles in the United States, consistently applied, as set forth in (i) the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants, (ii) statements and
pronouncements of the Financial Accounting Standards Board, and (iii) such
other statements by such other entity as may be approved by a significant
segment of the accounting profession of the United States, as they are in
effect as of the Reference Date.

 

“Global Note Legend” means the legend
identified as such in Section 2.6(e)(ii) hereto.

 

“Global Notes” means the Notes in global
form and registered in the name of the Depositary or its nominee that are in
the form of Exhibit A attached hereto.

 

“GE/Citi Sales Arrangements” means the several receivables
sales agreements between certain Subsidiaries of the Company and Citibank, N.A.
or General Electric Capital Corporation, dated between June 2004 and December 2006.

 

“Guarantee” means, as applied to any Debt
of another Person, (i) a guarantee (other than by endorsement of
negotiable instruments for collection in the normal course of business), direct
or indirect, in any manner, of any part or all of such Debt, (ii) any
direct or indirect obligation, contingent or otherwise, of a Person
guaranteeing or having the effect of guaranteeing the Debt of any other Person
in any manner and (iii) an agreement of a Person, direct or indirect,
contingent or otherwise, the practical effect of which is to assure in any way
the payment (or payment of damages in the event of non-payment) of all or any
part of such Debt of another Person (and “Guaranteed” and
“Guaranteeing” shall have meanings that
correspond to the foregoing).

 

“Guarantor” means any Person who Guarantees
the Notes in accordance with the provisions of this Indenture and their
respective successors and assigns.

 

“Hedging Obligations” of any Person means
the obligations of such Person pursuant to any interest rate agreement,
currency agreement or commodity agreement entered into in the ordinary course
of the Company’s business.

 

14

 

“Holder” means a Person in whose name a
Note is registered in the Note Register.

 

“Incur” means, with respect to any Debt or
other obligation of any Person, to create, issue, incur (by conversion,
exchange or otherwise), assume, Guarantee or otherwise become liable in respect
of such Debt or other obligation or the recording, as required pursuant to GAAP
or otherwise, of any such Debt or other obligation on the balance sheet of such
Person; provided, however, that a change in GAAP or an
interpretation thereunder that results in an obligation of such Person that
exists at such time becoming Debt shall not be deemed an Incurrence of such
Debt.  Debt otherwise Incurred by a
Person before it becomes a Subsidiary of the Company shall be deemed to be
Incurred at the time at which such Person becomes a Subsidiary of the
Company.  “Incurrence,” “Incurred,”
“Incurrable” and “Incurring” shall have meanings that
correspond to the foregoing.  A Guarantee
by the Company or a Restricted Subsidiary of Debt Incurred by the Company or a
Restricted Subsidiary, as applicable, shall not be a separate Incurrence of
Debt.  In addition, the following shall
not be deemed a separate Incurrence of Debt:

 

(1)           amortization of Debt
discount or 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 Debt of the same
instrument or the payment of regularly scheduled dividends on Capital Interests
in the form of additional Capital Interests of the same class and with the same
terms;

 

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

 

(4)           unrealized losses or
charges in respect of Hedging Obligations and Swap Contracts, in each case, not
entered into for speculative purposes.

 

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

 

“Initial Purchasers” means RBC Capital
Markets Corporation and UBS Securities LLC and such other initial purchasers
party to the Purchase Agreement entered into in connection with the sale of the
Notes dated June 8, 2010.

 

“Investment” by any Person means any direct
or indirect loan, advance (or other extension of credit) or capital
contribution to (by means of any transfer of cash or other property or assets
to another Person or any other payments for property or services for the
account or use of another Person) another Person, including, without
limitation, the following:  (i) the
purchase or acquisition of any Capital Interest or other evidence of beneficial
ownership in another Person; (ii) the purchase, acquisition or Guarantee
of the Debt of another Person; and (iii) the purchase or acquisition of
the business or assets of another Person substantially as an entirety but shall
exclude:  (a) accounts receivable
and other extensions of trade credit in accordance with the 

 

15

 

Company’s
customary practices; (b) the acquisition of property and assets from
suppliers and other vendors in the normal course of business; and
(c) prepaid expenses and workers’ compensation, utility, lease and similar
deposits, in the normal course of business.

 

“Issue Date” means June 16, 2010, the
date of original issuance of the Notes.

 

“Issuer” or “Company” means Triumph Group, Inc. and any Successor
Entity.

 

“Leasing Facility” means the master lease agreement dated as
of March 18, 2009 by and between Triumph Structures - Los Angeles, Inc.,
as lessee, and Banc of America Leasing & Capital, LLC, as lessor,
together with all related notes, letters of credit, collateral documents,
Guarantees, and any other related agreements and instruments executed and
delivered in connection therewith, in each case as further amended, modified,
supplemented, restated, refinanced, refunded or replaced in whole or in part
from time to time including by or pursuant to any agreement or instrument that
extends the maturity of any Debt thereunder, or increases the amount of
available borrowings thereunder (provided that
such increase in borrowings is permitted under clause (i), (x) or (xiv) of
the definition of the term “Permitted Debt”), or adds Subsidiaries of the
Company as additional borrowers or guarantors thereunder, in each case with
respect to such agreement or any successor or replacement agreement and whether
by the same or any other agent, lender, group of lenders, purchasers or debt
holders.

 

“Legal Holiday” means a Saturday, a Sunday
or a day on which banking institutions in The City of New York, the city in
which the principal Corporate Trust Office of the Trustee is located or at a
place of payment are authorized or required by law, regulation or executive
order to remain closed.  If a payment
date in a place of payment is a Legal Holiday, payment shall be made at that
place on the next succeeding day that is not a Legal Holiday, and no interest
shall accrue for the intervening period.

 

“Lien” means, with respect to any property
or other asset, any mortgage, deed of trust, deed to secure debt, pledge,
hypothecation, assignment, deposit arrangement, security interest, lien
(statutory or otherwise), charge, easement, encumbrance, preference, priority
or other security agreement or preferential arrangement of any kind or nature
whatsoever on or with respect to such property or other asset (including,
without limitation, any conditional sale or other title retention agreement
having substantially the same economic effect as any of the foregoing).

 

“Moody’s” means Moody’s Investors Service, Inc.
and any successor to its rating agency business.

 

“Net Cash Proceeds” means, with respect to
Asset Sales of any Person, cash and Eligible Cash Equivalents received, net
of:  (i) all reasonable
out-of-pocket costs and expenses of such Person incurred in connection with
such a sale, including, without limitation, all legal, accounting, title and
recording tax expenses, commissions and other fees and expenses incurred and
all federal, state, foreign and local taxes arising in connection with such an
Asset Sale that are paid or required to be accrued as a liability under GAAP by
such Person; (ii) all payments 

 

16

 

made
by such Person on any Debt that is secured by such properties or other assets
in accordance with the terms of any Lien upon or with respect to such properties
or other assets or that must, by the terms of such Lien or such Debt or in
order to obtain a necessary consent to such transaction or by applicable law,
be repaid to any other Person (other than the Company or a Restricted
Subsidiary thereof) in connection with such Asset Sale; and (iii) all
contractually required distributions and other payments made to minority
interest holders in Restricted Subsidiaries of such Person as a result of such
transaction; provided, however, that:  (a) in the event that any consideration
for an Asset Sale (which would otherwise constitute Net Cash Proceeds) is
required by (I) contract to be held in escrow pending determination of
whether a purchase price adjustment will be made or (II) GAAP to be
reserved against other liabilities in connection with such Asset Sale, such
consideration (or any portion thereof) shall become Net Cash Proceeds only at
such time as it is released to such Person from escrow or otherwise; and
(b) any non-cash consideration received in connection with any
transaction, which is subsequently converted to cash, shall become Net Cash
Proceeds only at such time as it is so converted.

 

“Non-Recourse Receivable Subsidiary Indebtedness”
has the meaning set forth in the definition of “Receivable Subsidiary” and
shall, for the avoidance of doubt, include Debt under the Existing Receivables
Facility.

 

“Note Custodian” means the Trustee when
serving as custodian for the Depositary with respect to the Global Notes, or
any successor entity thereto.

 

“Note Guarantee” means the Guarantee of
each Guarantor of the Notes.

 

“Notes” has the meaning set forth in the
preamble to this Indenture.

 

“Obligations” means, with respect to any
Debt, 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
(including reimbursement obligations with respect to letters of credit and
banker’s acceptances), damages and other liabilities, and Guarantees of payment
of such principal, interest, penalties, fees, indemnifications, reimbursements,
damages and other liabilities, payable under the documentation governing such
Debt.

 

“Offer” has the meaning set forth in the
definition of “Offer to Purchase.”

 

“Offer to Purchase” means a written offer
(the “Offer”) sent by the Company
electronically or by first class mail, postage prepaid, to each Holder at his
address appearing in the Note Register on the date of the Offer, offering to
purchase up to the aggregate principal amount of Notes set forth in such Offer
at the purchase price set forth in such Offer (as determined pursuant to this
Indenture).  Unless otherwise required by
applicable law, the offer shall specify an expiration date (the “Expiration Date”) of the Offer to Purchase
which shall be, subject to any contrary requirements of applicable law, not
less than 30 days or more than 

 

17

 

60 days
after the date of mailing of such Offer and a settlement date (the “Purchase Date”) for purchase of Notes
within five Business Days after the Expiration Date.  The Company shall notify the Trustee at least
15 days (or such shorter period as is acceptable to the Trustee) prior to
the mailing of the Offer of the Company’s obligation to make an Offer to
Purchase, and the Offer shall be mailed by the Company or, at the Company’s
request, by the Trustee in the name and at the expense of the Company.  The Offer shall contain all instructions and
materials necessary to enable such Holders to tender Notes pursuant to the
Offer to Purchase.  The Offer shall also
state:

 

(1)           the Section of
this Indenture pursuant to which the Offer to Purchase is being made;

 

(2)           the Expiration Date
and the Purchase Date;

 

(3)           the aggregate
principal amount of the outstanding Notes offered to be purchased pursuant to
the Offer to Purchase (including, if less than 100%, the manner by which such
amount has been determined pursuant to Indenture covenants requiring the Offer
to Purchase) (the “Purchase Amount”);

 

(4)           the purchase price
to be paid by the Company for each Note accepted for payment (as specified
pursuant to this Indenture) (the “Purchase Price”);

 

(5)           that the Holder may
tender all or any portion of the Notes registered in the name of such Holder
and that any portion of a Note tendered must be tendered in a minimum amount of
$2,000 principal amount (and integral multiples of $1,000 in excess thereof);

 

(6)           the place or places
where Notes are to be surrendered for tender pursuant to the Offer to Purchase,
if applicable;

 

(7)           that, unless the
Company defaults in making such purchase, any Note accepted for purchase
pursuant to the Offer to Purchase will cease to accrue interest on and after
the Purchase Date, but that any Note not tendered or tendered but not purchased
by the Company pursuant to the Offer to Purchase will continue to accrue
interest at the same rate;

 

(8)           that, on the
Purchase Date, the Purchase Price will become due and payable upon each Note
accepted for payment pursuant to the Offer to Purchase;

 

(9)           that each Holder
electing to tender a Note pursuant to the Offer to Purchase will be required to
surrender such Note or cause such Note to be surrendered at the place or places
set forth in the Offer prior to the close of business on the Expiration Date
(such Note being, if the Company or the Trustee so requires, duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the
Company and 

 

18

 

the
Trustee duly executed by, the Holder thereof or his attorney duly authorized in
writing);

 

(10)         that Holders will be
entitled to withdraw all or any portion of Notes tendered if the Company (or
its paying agent) receives, not later than the close of business on the
Expiration Date, a facsimile transmission or letter setting forth the name of
the Holder, the aggregate principal amount of the Notes the Holder tendered,
the certificate number of the Note the Holder tendered and a statement that
such Holder is withdrawing all or a portion of his tender;

 

(11)         that that if less
than all of such holder’s Notes are tendered for purchase, such Holder will be
issued new Notes, such new Notes will be equal in principal amount to the
unpurchased portion of the Notes surrendered and the unpurchased portion of the
Notes must be equal to $2,000 or an integral multiple of $1,000 in excess of
$2,000; and

 

(12)        if
applicable, that, in the case of any Holder whose Note is purchased only in
part, the Company shall execute, and the Trustee shall authenticate and deliver
to the Holder of such Note without service charge, a new Note or Notes, of any
authorized denomination as requested by such Holder, in the aggregate principal
amount equal to and in exchange for the unpurchased portion of the aggregate
principal amount of the Notes so tendered.

 

“Offering Memorandum” means the offering memorandum dated June 8,
2010 relating to the offer and sale of the Notes.

 

“Officer” means, with respect to any
Person, the Chairman of the Board, the Chief Executive Officer, the President,
the Chief Operating Officer, the Chief Financial Officer, the Treasurer, any
Assistant Treasurer, the Controller, the Secretary, any Assistant Secretary or
any Vice-President of such Person.

 

“Officer’s Certificate” means a certificate
signed by the principal executive officer, the principal financial officer or
the principal accounting officer of the Company or such Guarantor, as
applicable.

 

“Opinion of Counsel” means an opinion from
legal counsel who is reasonably acceptable to the Trustee, and which opinion
shall be addressed to the Trustee in its capacity as such, and shall comply
with any applicable provisions herein. 
The counsel may be an employee of or counsel to the Company or any
Subsidiary of the Company.

 

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

 

“Paying Agent” means any Person authorized
by the Issuer to pay the principal of, premium, if any, or interest on, or
redemption, purchase, retirement, defeasance, covenant defeasance or similar
payment with respect to, any Notes on behalf of the Issuer.

 

19

 

 

“Performance Guaranty” means the performance guaranty dated
as of August 7, 2008, as amended from time to time, by the Company, as
performance guarantor, in favor of PNC Bank, National Association for the
benefit of the various purchaser groups pursuant to the Existing Receivables
Facility.

 

“Permitted Business” means any business
similar in nature to any business conducted by the Company and the Restricted
Subsidiaries on the Issue Date and any business reasonably ancillary,
incidental, complementary or related to, or a reasonable extension, development
or expansion of, the business conducted by the Company and the Restricted
Subsidiaries on the Issue Date, in each case, as determined in good faith by
the Company.

 

“Permitted Debt” means

 

(i)            Debt Incurred pursuant to any Credit Facilities in
an aggregate principal amount at any one time outstanding not to exceed
$1,175.0 million minus any amount used to permanently repay such Obligations
(or permanently reduce commitments with respect thereto), provided that such
repayment is made pursuant to Section 4.10;

 

(ii)           Debt under the Notes issued on the Issue Date (and
any Exchange Notes pursuant to the Registration Rights Agreement) and
contribution, indemnification and reimbursement obligations owed by the Company
or any Guarantor to any of the other of them in respect of amounts paid or
payable on such Notes;

 

(iii)          Guarantees of the Notes (and any Exchange Notes
issued pursuant to the Registration Rights Agreement);

 

(iv)          Debt of the Company or any Restricted Subsidiary
outstanding on the Issue Date (other than Debt described in clauses (i), (ii) or
(iii) above), including without limitation Debt under the Leasing
Facility, the Company’s 8% Senior Subordinated Notes due 2017, the Convertible
Notes and the Performance Guaranty under the Existing Receivables Facility;

 

(v)           intercompany Debt between the Company and a
Restricted Subsidiary or between Restricted Subsidiaries, provided
that if for any reason such Debt ceases to be held by the Company or a
Restricted Subsidiary, as applicable, such Debt shall cease to be Permitted
Debt under this clause (v) and shall be deemed Incurred as Debt of the
Company or a Restricted Subsidiary, as applicable, for purposes of the
Indenture;

 

(vi)          Guarantees Incurred by the Company of Debt of a
Restricted Subsidiary otherwise permitted to be incurred under this Indenture; provided that such Guarantees are subordinated to the Notes
to the same extent as the Debt being Guaranteed if such Debt is a Subordinated
Obligation;

 

(vii)         Guarantees by any Restricted Subsidiary of Debt of
the Company or any Restricted Subsidiary, including Guarantees by any
Restricted Subsidiary of Debt under

 

20

 

the Credit Facilities otherwise permitted to be incurred under this
Indenture; provided that such Guarantees are
subordinated to the Notes to the same extent as the Debt being Guaranteed if
such Debt is a Subordinated Obligation;

 

(viii)        Debt incurred in respect of workers’ compensation
claims and self-insurance obligations, and, for the avoidance of doubt,
indemnity, bid, performance, warranty, release, appeal, surety and similar
bonds, letters of credit for operating purposes and completion Guarantees
provided or incurred (including Guarantees thereof) by the Company or a
Restricted Subsidiary in the ordinary course of business;

 

(ix)           Debt under Swap Contracts and Hedging Obligations,
in each case, not entered into for speculative purposes;

 

(x)            Debt of the
Company or any Restricted Subsidiary pursuant to Capital Lease Obligations and
Purchase Money Debt, provided that
the aggregate principal amount of such Debt outstanding at any time may not
exceed $100.0 million in the aggregate;

 

(xi)           Debt arising from agreements of the Company or a
Restricted Subsidiary providing for indemnification, contribution, earnout,
adjustment of purchase price or similar obligations, in each case, incurred or
assumed in connection with the acquisition or disposition of any business,
assets or Capital Interests of a Restricted Subsidiary otherwise permitted
under this Indenture;

 

(xii)          the issuance by any of the Company’s Restricted
Subsidiaries to the Company or to any of its Restricted Subsidiaries of shares
of Preferred Interests; provided,
however, that:

 

(a)           any subsequent issuance or transfer of Capital
Interests that results in any such Preferred Interests being held by a Person
other than the Company or a Restricted Subsidiary; and

 

(b)           any sale or other transfer of any such Preferred
Interests to a Person that is not either the Company or a Restricted
Subsidiary;

 

shall
be deemed, in each case, to constitute an issuance of such Preferred Interests
by such Restricted Subsidiary that was not permitted by this clause (xii);

 

(xiii)         Debt arising from the honoring by a bank or other
financial institution of a check, draft or similar instrument drawn against
insufficient funds in the ordinary course of business; provided, however,
that such Debt is extinguished within five Business Days of Incurrence;

 

(xiv)        Debt of the Company or any Restricted Subsidiary not
otherwise permitted pursuant to this definition, in an aggregate principal
amount not to exceed $25.0 million at any time outstanding;

 

21

 

(xv)         promissory notes, other than those issued to
evidence Debt otherwise permitted hereunder, in an aggregate principal amount
not to exceed $6.0 million;

 

(xvi)        Debt arising under the GE/Citi Sales Arrangements;

 

(xvii)       Purchase Money Notes Incurred by any Receivable
Subsidiary that is a Restricted Subsidiary in a Qualified Receivables
Transaction and Non-Recourse Receivable Subsidiary Indebtedness;

 

(xviii)      Refinancing Debt in respect of Debt Incurred
pursuant to the first paragraph of Section 4.9 or pursuant to clauses
(ii), (iii) or (iv) above

 

(xix)         Debt which (A) is contemplated by clause (x)(B) of
the definition of “Debt” and (B) could be secured with a Lien pursuant to
clause (q) of the definition of “Permitted Liens”;
and

 

(xx)          Standard Securitization Undertakings.

 

“Permitted
Investments” means:

 

(a)           Investments in
existence on the Issue Date;

 

(b)           Investments
required pursuant to any agreement or obligation of the Company or a Restricted
Subsidiary, in effect on the Issue Date, to make such Investments;

 

(c)           Investments in
cash and Eligible Cash Equivalents;

 

(d)           Investments in
property and other assets, owned or used by the Company or any Restricted
Subsidiary in the normal course of business;

 

(e)           Investments by
the Company or any of its Restricted Subsidiaries in the Company or any
Restricted Subsidiary;

 

(f)            Investments by
the Company or any Restricted Subsidiary in a Person, if as a result of such
Investment (A) such Person becomes a Restricted Subsidiary or
(B) such Person is merged, consolidated or amalgamated with or into, or
transfers or conveys substantially all of its assets to, or is liquidated or
wound-up into, the Company or a Restricted Subsidiary;

 

(g)           Swap Contracts
and Hedging Obligations, in each case, not entered into for speculative
purposes;

 

(h)           receivables owing
to the Company or any of its Subsidiaries and advances to suppliers, in each
case if created, acquired or made in the ordinary course of business and
payable or dischargeable in accordance with customary trade terms;

 

22

 

(i)            Investments
received in settlement of obligations owed to the Company or any Restricted
Subsidiary and as a result of bankruptcy or insolvency proceedings or upon the
foreclosure or enforcement of any Lien in favor of the Company or any
Restricted Subsidiary;

 

(j)            Investments in
joint ventures not in excess of $20.0 million in the aggregate at any one time
outstanding;

 

(k)           Investments by
the Company or any Restricted Subsidiary not otherwise permitted under this
definition, in an aggregate amount not to exceed $50.0 million at any one
time outstanding;

 

(l)            loans and
advances (including for travel and relocation) to employees in an amount not to
exceed $2.5 million in the aggregate at any one time outstanding;

 

(m)          Investments the
payment for which consists solely of Capital Interests (excluding Redeemable
Capital Interests) of the Company;

 

(n)           any Investment
in any Person to the extent such Investment represents the non-cash portion of
the consideration received in connection with an Asset Sale consummated in
compliance with Section 4.10 or any other disposition of property not
constituting an Asset Sale;

 

(o)           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 and consistent with past practice;

 

(p)           Guarantees by
the Company or any Restricted Subsidiary of Debt of the Company or a Restricted
Subsidiary (other than a Receivable Subsidiary) otherwise permitted by Section 4.9;
and

 

(q)           any Investment
by the Company or any Restricted Subsidiary in a Receivable Subsidiary or any
Investment by a Receivable Subsidiary in any other Person in connection with a
Qualified Receivables Transaction, so long as any Investment in a Receivable
Subsidiary is in consideration of a Purchase Money Note or an Investment in
Capital Interests.

 

“Permitted Liens” means:

 

(a)           Liens on the
assets of the Company, any Guarantor or any Receivable Subsidiary which secure
Obligations incurred under Credit Facilities in an aggregate principal amount
not to exceed the greater of (i) $1,175.0 million and (ii) the
Secured Debt Cap;

 

(b)           Liens in favor
of the Company or any Restricted Subsidiary;

 

23

 

(c)           Liens on
property of a Person existing at the time such Person is merged with or into or
consolidated with the Company or any Restricted Subsidiary of the Company, provided that such Liens were not incurred in contemplation
of or in connection with such merger or consolidation and do not extend to any
assets other than those of the Person merged into or consolidated with the
Company or the Restricted Subsidiary;

 

(d)           Liens on
property existing at the time of acquisition thereof by the Company or any
Restricted Subsidiary of the Company, provided that
such Liens were not incurred in contemplation of or in connection with such
acquisition and do not extend to any property other than the property so
acquired by the Company or the Restricted Subsidiary;

 

(e)           Liens existing
on the Issue Date;

 

(f)            pledges or
deposits by such Person under workmen’s compensation laws, unemployment
insurance laws or similar legislation, or good faith deposits in connection
with bids, tenders, contracts (other than for the payment of Debt) 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 or customs duties or for the
payment of rent, in each case Incurred in the ordinary course of business;

 

(g)           Liens imposed
by law, including carriers’, warehousemen’s and mechanics’ materialmen’s and
repairmen’s Liens, in each case for sums not yet due or being contested in good
faith by appropriate proceedings if a reserve or other appropriate provisions,
if any, as shall be required by GAAP shall have been made in respect thereof;

 

(h)           Liens for
taxes, assessments or other governmental charges not yet subject to penalties
for non-payment or which are being contested in good faith by appropriate
proceedings provided that appropriate reserves required pursuant to GAAP have
been made in respect thereof;

 

(i)            Liens in favor
of issuers of surety or performance bonds or letters of credit or bankers’
acceptances 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 secure Debt;

 

(j)            Liens securing
Swap Contracts and Hedging Obligations, in each case, not entered into for
speculative purposes;

 

(k)           Liens relating
to banker’s liens, rights of set-off or similar rights and remedies as to
deposit accounts or other funds maintained with a depositary institution;
provided that:

 

24

 

(i)            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

 

(ii)           such deposit account is not established by the
Company or any Restricted Subsidiary for the purpose of providing collateral to
the depository institution;

 

(l)            any Lien
resulting from the deposit of money or other cash equivalents or other evidence
of indebtedness in trust for the purpose of defeasing Debt of the Company or
any Restricted Subsidiary; provided that
the incurrence of Debt and such defeasance or satisfaction and discharge are
not prohibited by the Indenture;

 

(m)          Liens securing
Obligations in respect of Debt (including Capital Lease Obligations and
Purchase Money Debt) permitted by clause (x) of the definition of “Permitted
Debt” covering only the assets acquired, constructed, improved or developed
with, or secured by, such Debt;

 

(n)           Liens incurred
in the ordinary course of business of the Company or any Restricted Subsidiary
of the Company with respect to obligations that do not exceed $10.0 million at
any one time outstanding;

 

(o)           Liens securing
Obligations in respect of (a) Debt permitted by clause (xiv) of the
definition of “Permitted Debt” (and any Guarantee thereof) and (b) Debt of
Subsidiaries other than Subsidiary Guarantors; provided, in the case of clause
(b), that such Liens attach only to assets of Restricted Subsidiaries other
than Subsidiary Guarantors;

 

(p)           Liens securing
Debt permitted by clause (xv) of the definition of “Permitted Debt”

 

(q)           Liens on
Capital Interests of an Unrestricted Subsidiary that secure Debt or other
obligations of such Unrestricted Subsidiary;

 

(r)            Liens securing
Obligations in respect of Refinancing Debt; provided that
any such Lien covers only the assets that secure the Debt being refinanced;

 

(s)           leases,
subleases, survey exceptions, 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 properties 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 impair the use of such properties in the operation of the
business of the Company and its Subsidiaries;

 

25

 

(t)            Liens on assets
transferred to a Receivable Subsidiary or on assets of a Receivable Subsidiary,
in either case incurred in connection with a Qualified Receivables Transaction;

 

(u)           Liens arising
under the GE/Citi Sales Arrangements;

 

(v)           Liens arising
from Uniform Commercial Code financing statement filings regarding operating
leases entered into by the Company and the Restricted Subsidiaries in the
ordinary course of business; and

 

(w)          judgment and
attachment Liens not giving rise to an Event of Default and notices of lis
pendens and associated rights related to litigation being contested in good
faith by appropriate proceedings and for which adequate reserves have been
made.

 

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

 

“Preferred Interests,” as applied to the
Capital Interests in any Person, means Capital Interests in such Person of any
class or classes (however designated) that rank prior, as to the payment of
dividends or as to the distribution of assets upon any voluntary or involuntary
liquidation, dissolution or winding up of such Person, to shares of Common
Interests in such Person.

 

“Purchase Agreement” means the purchase
agreement dated June 8, 2010 by and among the Company, the Initial
Purchasers and the Guarantors named therein.

 

“Purchase Amount” has the meaning set forth
in the definition of “Offer to Purchase.”

 

“Purchase Date” has the meaning set forth
in the definition of “Offer to Purchase.”

 

“Purchase Money Debt” means Debt

 

(i)            Incurred to finance the purchase or construction
(including additions and improvements thereto) of any assets (other than
Capital Interests) of such Person or any Restricted Subsidiary; and

 

(ii)           that is secured by a Lien on such assets where the
lender’s sole security is to the assets so purchased or constructed; and

 

in
either case that does not exceed 100% of the cost and to the extent the
purchase or construction prices for such assets are or should be included in “addition
to property, plant or equipment” in accordance with GAAP.

 

“Purchase Money Note” means a promissory
note of a Receivable Subsidiary to the Company or any Restricted Subsidiary,
which note must be repaid from cash available to the

 

26

 

Receivable
Subsidiary, other than amounts required to be established as reserves pursuant
to agreements, amounts paid to investors in respect of interest, principal and
other amounts owing to such investors and amounts paid in connection with the
purchase of newly generated receivables. 
The repayment of a Purchase Money Note may be subordinated to the
repayment of other liabilities of the Receivable Subsidiary on terms determined
in good faith by the Company to be substantially consistent with market
practice in connection with Qualified Receivables Transactions.

 

“Purchase Price” has the meaning set forth
in the definition of “Offer to Purchase.”

 

“Qualified Capital Interests” in any Person
means a class of Capital Interests other than Redeemable Capital Interests.

 

“Qualified Equity Offering” means
(i) an underwritten public equity offering of Qualified Capital Interests
pursuant to an effective registration statement under the Securities Act
yielding gross proceeds to either of the Company, or any direct or indirect
parent company of the Company, of at least $50.0 million or (ii) a
private equity offering of Qualified Capital Interests of the Company, or any
direct or indirect parent company of the Company other than (x) any such
public or private sale to an entity that is an Affiliate of the Company and
(y) any public offerings registered on Form S-8; provided that, in the case of an offering
or sale by a direct or indirect parent company of the Company, such parent
company contributes to the capital of the Company the portion of the Net Cash
Proceeds of such offering or sale necessary to pay the aggregate
Redemption Price (plus accrued interest to the redemption date) of the
Notes to be redeemed pursuant to Section 3.7.

 

“Qualified Receivables Transaction” means
any transaction or series of transactions entered into by the Company or any of
its Restricted Subsidiaries pursuant to which the Company or such Restricted
Subsidiary transfers to (a) a Receivable Subsidiary (in the case of a
transfer by the Company or any of its Restricted Subsidiaries) or (b) any
other Person (in the case of a transfer by a Receivable Subsidiary), or grants
a security interest in, any accounts receivable (whether now existing or
arising in the future) of the Company or any of its Restricted Subsidiaries,
and any assets related thereto, including, without limitation, all collateral
securing such accounts receivable, all contracts and all Guarantees or other
obligations in respect of such accounts receivable, proceeds of such accounts
receivable and other assets which are customarily transferred or in respect of
which security interests are customarily granted in connection with an accounts
receivable financing transaction; provided such
transaction is on market terms as determined in good faith by the Company at
the time the Company or such Restricted Subsidiary enters into such
transaction.  For the avoidance of doubt,
on the Issue Date, the Existing Receivables Facility shall qualify as a
Qualified Receivables Transaction.

 

“Receivable Subsidiary” means a Subsidiary
of the Company:

 

(1)           that is formed
solely for the purpose of, and that engages in no activities other than
activities in connection with, financing accounts receivable of the Company
and/or its Restricted Subsidiaries;

 

27

 

(2)           that is
designated by the Board of Directors as a Receivable Subsidiary pursuant to an
Officer’s Certificate that is delivered to the Trustee;

 

(3)           that is either
(a) a Restricted Subsidiary or (b) an Unrestricted Subsidiary designated
in accordance with Section 4.18;

 

(4)           no portion of
the Debt or any other obligation (contingent or otherwise) of which (a) is
at any time Guaranteed by the Company or any Restricted Subsidiary (excluding
Guarantees of obligations (other than any Guarantee of Debt) pursuant to
Standard Securitization Undertakings), (b) is at any time recourse to or
obligates the Company or any Restricted Subsidiary in any way, other than
pursuant to Standard Securitization Undertakings, or (c) subjects any
asset of the Company or any other Restricted Subsidiary of the Company,
directly or indirectly, contingently or otherwise, to the satisfaction thereof,
other than pursuant to Standard Securitization Undertakings (such Debt, “Non-Recourse Receivable Subsidiary  Indebtedness”);

 

(5)           with which
neither the Company nor any Restricted Subsidiary has any material contract,
agreement, arrangement or understanding other than (a) contracts,
agreements, arrangements and understandings entered into in the ordinary course
of business on terms no less favorable to the Company or such Restricted
Subsidiary than those that might be obtained at the time from Persons that are
not Affiliates of the Company in connection with a Qualified Receivables
Transaction as determined in good faith by the Board of Directors of the
Company, (b) fees payable in the ordinary course of business in connection
with servicing accounts receivable in connection with such a Qualified
Receivables Transaction as determined in good faith by the Board of Directors
of the Company and (c) any Purchase Money Note issued by such Receivable
Subsidiary to the Company or a Restricted Subsidiary; and

 

(6)           with respect to
which neither the Company nor any other Restricted Subsidiary has any
obligation (a) to subscribe for additional shares of Capital Interests
therein or make any additional capital contribution or similar payment or
transfer thereto except in connection with a Qualified Receivables Transaction
or (b) to maintain or preserve the solvency or any balance sheet term,
financial condition, level of income or results of operations thereof.

 

For
the avoidance of doubt, on the Issue Date, Triumph Receivables, LLC shall
qualify as a Receivable Subsidiary.

 

“Receivables Transaction Amount” means, (a) with respect
to any Qualified Receivables Transaction entered into by the Company or a
Restricted Subsidiary and structured as a sale of receivables and related
assets by the Company or such Restricted Subsidiary rather than a secured loan
to the Company or such Restricted Subsidiary, the amount of obligations
outstanding under the legal documents entered into as part of such Qualified
Receivables Transaction on any date of determination that would be
characterized as principal if such Qualified Receivables Transaction were
structured as a secured lending transaction rather than as

 

28

 

a sale and (b) with respect to any
Qualified Receivables Transaction entered into by the Company or a Restricted
Subsidiary and structured as a secured loan to the Company or such Restricted
Subsidiary, the principal amount of such loan.

 

“Redeemable Capital Interests” in any
Person means any equity security of such Person that by its terms (or by terms
of any security into which it is convertible or for which it is exchangeable),
or otherwise (including the passage of time or the happening of an event), is
required to be redeemed (other than in exchange for Qualified Capital
Interests), is redeemable (other than in exchange for Qualified Capital
Interests) at the option of the holder thereof in whole or in part (including
by operation of a sinking fund), or is convertible or exchangeable for Debt of
such Person at the option of the holder thereof, in whole or in part, at any
time prior to the Stated Maturity of the Notes; provided that only the portion of such equity security which
is required to be redeemed, is so convertible or exchangeable or is so
redeemable at the option of the holder thereof before such date will be deemed
to be Redeemable Capital Interests. 
Notwithstanding the preceding sentence, any equity security that would
constitute Redeemable Capital Interests solely because the holders of the
equity security have the right to require the Company to repurchase such equity
security upon the occurrence of a change of control or an asset sale will not
constitute Redeemable Capital Interests if the terms of such equity security
provide that the Company may not repurchase or redeem any such equity security
pursuant to such provisions unless such repurchase or redemption complies with Section 4.7.  The amount of Redeemable Capital Interests
deemed to be outstanding at any time for purposes of this Indenture will be the
maximum amount that the Company and its Restricted Subsidiaries may become
obligated to pay upon the maturity of, or pursuant to any mandatory redemption
provisions of, such Redeemable Capital Interests or portion thereof, exclusive
of accrued dividends.

 

“Redemption Price,” when used with respect
to any Note to be redeemed, means the price at which it is to be redeemed
pursuant to this Indenture.

 

“Reference Date” means October 1, 2009.

 

“Refinancing Debt” means Debt that refunds,
refinances, renews, replaces or extends any Debt permitted to be Incurred by
the Company or any Restricted Subsidiary pursuant to the terms of this
Indenture, whether involving the same or any other lender or creditor or group
of lenders or creditors, but only to the extent that

 

(i)            the Refinancing Debt is subordinated to the Notes or
the Note Guarantees, as applicable, to at least the same extent as the Debt
being refunded, refinanced or extended, if such Debt was subordinated to the
Notes,

 

(ii)           the Refinancing Debt is scheduled to mature either
(a) no earlier than the Debt being refunded, refinanced or extended or
(b) at least 91 days after the maturity date of the Notes,

 

29

 

(iii)          the Refinancing Debt has an Average Life at the time
such Refinancing Debt is Incurred that is equal to or greater than the Average
Life of the Debt being refunded, refinanced, renewed, replaced or extended,

 

(iv)          such Refinancing Debt is in an aggregate principal
amount that is less than or equal to the sum of (a) the aggregate
principal or accreted amount (in the case of any Debt issued with original
issue discount, as such) then outstanding under the Debt being refunded,
refinanced, renewed, replaced or extended, (b) the amount of accrued and
unpaid interest, if any, on such Debt being refinanced and any reasonably
determined premium necessary to accomplish any such refinancing and
(c) the amount of reasonable and customary fees, expenses and costs
related to the Incurrence of such Refinancing Debt, and

 

(v)           such Refinancing Debt is Incurred by the same Person
(or its successor) that initially Incurred the Debt being refunded, refinanced,
renewed, replaced or extended, except that the Company may Incur Refinancing
Debt to refund, refinance, renew, replace or extend Debt of any Restricted
Subsidiary of the Company.

 

“Registration Rights Agreement” means the
Registration Rights Agreement, dated as of the Issue Date, among the Company,
the Guarantors and the Initial Purchasers.

 

“Related Business Assets” means assets
(other than cash or Eligible Cash Equivalents) used or useful in a Permitted
Business, provided that any
assets received by the Company or a Restricted Subsidiary in exchange for
assets transferred by the Company or a Restricted Subsidiary shall not be
deemed to be Related Business Assets if they consist of securities of a Person,
unless upon receipt of the securities of such Person, such Person would become
a Restricted Subsidiary.

 

“Responsible Officer” means, when used with
respect to the Trustee, any officer within the corporate trust department of
the Trustee, including any vice president, assistant vice president, assistant
secretary, assistant treasurer, trust officer or any other officer of the
Trustee who customarily performs functions similar to those performed by the
Persons who at the time shall be such officers, respectively, or to whom any
corporate trust matter is referred because of such Person’s knowledge of and
familiarity with the particular subject and who shall have direct
responsibility for the administration of this Indenture.

 

“Restricted Global Note” means a Global Note that is a
Restricted Note.

 

“Restricted Note” has the meaning set forth in Rule 144(a)(3) under
the Securities Act for the term “restricted securities”; provided, however,
that the Trustee shall be entitled to request and conclusively rely upon an
Opinion of Counsel with respect to whether any Note is a Restricted Note.  Restricted Notes are required to bear the
Restricted Notes Legend.

 

“Restricted Notes Legend” means the legend
identified as such in Section 2.6(e)(i) hereto.

 

30

 

“Restricted Payment” is defined to mean any
of the following:

 

(a)           any dividend or
other distribution declared and paid on the Capital Interests in the Company or
on the Capital Interests in any Restricted Subsidiary of the Company that are
held by, or declared and paid to, any Person other than the Company or a
Restricted Subsidiary of the Company, other than

 

(i)            dividends, distributions or
payments made solely in Qualified Capital Interests in the Company and

 

(ii)           dividends or distributions
payable to the Company or a Restricted Subsidiary of the Company or to other
holders of Capital Interests of a Restricted Subsidiary on a pro rata basis;

 

(b)           any payment
made by the Company or any of its Restricted Subsidiaries to purchase, redeem,
acquire or retire any Capital Interests in the Company (including the
conversion into, or exchange for, Debt of any Capital Interests) other than any
such Capital Interests owned by the Company or any Restricted Subsidiary (other
than a payment made solely in Qualified Capital Interests in the Company);

 

(c)           any payment
made by the Company or any of its Restricted Subsidiaries (other than a payment
made solely in Qualified Capital Interests in the Company) to redeem,
repurchase, defease (including an in substance or legal defeasance) or
otherwise acquire or retire for value (including pursuant to mandatory
repurchase covenants), prior to any scheduled maturity, scheduled sinking fund
or mandatory redemption payment, Debt of the Company or any Guarantor that is
subordinate in right of payment to the Notes or Note Guarantees (excluding any
Debt owed to the Company or any Restricted Subsidiary); except payments of
principal and interest in anticipation of satisfying a sinking fund obligation,
principal installment or final maturity, in each case, within one year of the
due date thereof;

 

(d)           any Investment
by the Company or a Restricted Subsidiary in any Person, other than a Permitted
Investment; and

 

(e)           any designation
of a Restricted Subsidiary as an Unrestricted Subsidiary.

 

“Restricted Subsidiary” means any
Subsidiary that has not been designated as an “Unrestricted Subsidiary” in
accordance with this Indenture.  For the
avoidance of doubt, Triumph Receivables, LLC, Triumph Group Charitable
Foundation, Triumph Interiors, Ltd., Saygrove Actuation & Motion
Control Limited and Airframe Spares & Logistics GmbH will be
Unrestricted Subsidiaries on the Issue Date.

 

“S&P” means Standard & Poor’s,
a division of The McGraw-Hill Companies, Inc., and any successor to its
rating agency business.

 

31

 

“Sale and Leaseback Transaction” means any
direct or indirect arrangement pursuant to which property is sold or
transferred by the Company or a Restricted Subsidiary and is thereafter leased
back as a capital lease by the Company or a Restricted Subsidiary.

 

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

 

“Secured Debt”
means (i) any Debt secured by a Lien and (ii) any Debt of a
Restricted Subsidiary that is not a Guarantor Incurred pursuant to Section 4.9.

 

“Secured Debt
Cap” means, as of any date of determination, an amount of Secured
Debt (including the outstanding Receivables Transaction Amount relating to
Qualified Receivables Transactions) equal to the greatest principal amount of
Secured Debt that could have been Incurred on such date so long as the Company’s
Secured Leverage Ratio for its most recently ended Four-Quarter Period would
not have been in excess of 3.0 to 1.0.

 

“Secured
Leverage Ratio” means, as of any date of determination (the “Determination
Date”), the ratio of (a) the aggregate principal amount of Secured Debt of
the Company and its Restricted Subsidiaries on the Determination Date
(excluding any Hedging Obligations or Swap Contracts, in each case, not entered
into for speculative purposes but including the outstanding Receivables Transaction
Amount relating to Qualified Receivables Transactions) to (b) Consolidated
Cash Flow Available for Fixed Charges for the most recently ended Four-Quarter
Period for which internal financial statements are available prior to the
Determination Date (the “Reference Period”).  For purposes of making the computation
referred to above, the Secured Leverage Ratio shall be calculated, if
applicable, on a pro forma basis in respect of clauses (a) and (b) thereof
as are appropriate and consistent with the pro forma adjustments set forth in
the definition of Consolidated Fixed Charge Coverage Ratio.

 

“Significant Subsidiary” has the meaning
set forth in Rule 1-02 of Regulation S-X under the Securities Act and
Exchange Act, but shall not include any Unrestricted Subsidiary.

 

“Standard Securitization Undertakings”
means representations, warranties, covenants and indemnities entered into by
the Company or any Restricted Subsidiary which are reasonably customary in an
accounts receivable securitization transaction as determined in good faith by
the Company, including Guarantees by the Company or any Restricted Subsidiary
of any of the foregoing obligations of the Company or a Restricted Subsidiary.

 

“Stated Maturity,” when used with respect
to (i) any Note or any installment of interest thereon, means the date
specified in such Note as the fixed date on which the principal amount of such
Note or such installment of interest is due and payable and (ii) any other
Debt or any installment of interest thereon, means the date specified in the
instrument governing such Debt as the fixed date on which the principal of such
Debt or such installment of interest is due and payable.

 

32

 

“Subordinated Obligations” means any Debt of the
Company or any Guarantor that is subordinate or junior in right of payment to
the Notes or the Note Guarantees pursuant to a written agreement to that
effect.

 

“Subsidiary” means, with respect to any
Person, any corporation, limited or general partnership, trust, association or
other business entity of which more than 50% of the total voting power of
shares of the Voting Interests is at the time owned, 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.

 

“Subsidiary Guarantor” means each
Subsidiary of the Company that is a Guarantor.

 

“Successor Entity” means a corporation or other entity that
succeeds to and continues the business of Triumph Group, Inc.

 

“Swap Contract” means (a) any and all
rate swap transactions, basis swaps, credit derivative transactions, forward
rate transactions, commodity swaps, commodity options, forward commodity
contracts, equity or equity index swaps or options, bond or bond price or bond
index swaps or options or forward bond or forward bond price or forward bond
index transactions, interest rate options, forward foreign exchange
transactions, cap transactions, floor transactions, collar transactions,
currency swap transactions, cross-currency rate swap transactions, currency
options, spot contracts, or any other similar transactions or any combination
of any of the foregoing (including, without limitation, any fuel price caps and
fuel price collar or floor agreements and similar agreements or arrangements
designed to protect against or manage fluctuations in fuel prices and any
options to enter into any of the foregoing), whether or not any such
transaction is governed by or subject to any master agreement, and (b) any
and all transactions of any kind, and the related confirmations, which are
subject to the terms and conditions of, or governed by, any form of master
agreement published by the International Swaps and Derivatives Association, Inc.,
any International Foreign Exchange Master Agreement, or any other master
agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such
obligations or liabilities under any Master Agreement.

 

“TIA” means the Trust Indenture Act of 1939
(15 U.S. Code §§ 77aaa-77bbbb), as amended, as in effect on the date hereof.

 

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

 

“Transactions” has the meaning given such term in the
Offering Memorandum.

 

33

 

“Treasury Rate” means the yield to maturity
at the time of computation of United States Treasury securities with a constant
maturity (as compiled and published in the most recent Federal Reserve
Statistical Release H.15 (519) which has become publicly available at least two
Business Days prior to the date fixed for prepayment (or, if such Statistical
Release is no longer published, any publicly available source for similar
market data)) most nearly equal to the then remaining term of the Notes to July 15,
2014; provided, however, that if
the then remaining term of the Notes to July 15, 2014 is not equal to the
constant maturity of a United States Treasury security for which a weekly
average yield is given, the Treasury Rate shall be obtained by linear
interpolation (calculated to the nearest one-twelfth of a year) from the weekly
average yields of United States Treasury securities for which such yields are
given, except that, if the then remaining term of the Notes to July 15,
2014 is less than one year, the weekly average yield on actually traded United
States Treasury securities adjusted to a constant maturity of one year shall be
used.

 

“Trustee” has the meaning set forth in the
preamble to this Indenture until a successor replaces it in accordance with the
applicable provisions of this Indenture and, thereafter, means the successor.

 

“U.S. Government Obligations” means securities that are (a) direct
obligations of the United States of America for the timely payment of which its
full faith and credit is pledged or (b) obligations of a Person controlled
or supervised by and acting as an agency or instrumentality of the United
States of America the timely payment of which is unconditionally guaranteed as
a full faith and credit obligation of the United States of America, which, in
either case, are not callable or redeemable at the option of the issuer
thereof, and shall also include a depositary receipt issued by a bank (as
defined in Section 3(a)(2) of the Securities Act), as custodian with
respect to any such U.S. Government Obligations or a specific payment of
principal of or interest on any such U.S. Government Obligations held by such
custodian for the account of the holder of such depositary receipt; provided
that (except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depositary receipt from
any amount received by the custodian in respect of the U.S. Government Obligations
or the specific payment of principal of or interest on the U.S. Government
Obligations evidenced by such depositary receipt.

 

“Unrestricted Global Note” means a Global Note that is an
Unrestricted Note.

 

“Unrestricted Notes” means one or more Notes that do not and
are not required to bear the Restricted Notes Legend including, without
limitation, the Exchange Notes and any Notes registered under the Securities
Act pursuant to and in accordance with the Registration Rights Agreement.

 

“Unrestricted Subsidiary” means:

 

(1)           any Subsidiary
designated as such herein or, after the Issue Date, by the Board of Directors
pursuant to Section 4.18 in an Officer’s Certificate; and

 

34

 

(2)           any Subsidiary
of an Unrestricted Subsidiary.

 

“Voting Interests” means, with respect to
any Person, securities of any class or classes of Capital Interests in such
Person entitling the holders thereof generally to vote on the election of
members of the Board of Directors or comparable body of such Person.

 

SECTION 1.2                                                  Other
Definitions.

 

	
  Term

  	
   

  	
  Defined in Section

  	
   

  
	
  “Affiliate Transaction”

  	
   

  	
  4.11

  	
   

  
	
  “Agent Members”

  	
   

  	
  2.6

  	
   

  
	
  “Change of Control Offer”

  	
   

  	
  4.14

  	
   

  
	
  “covenant defeasance”

  	
   

  	
  8.3

  	
   

  
	
  “defeasance”

  	
   

  	
  8.2

  	
   

  
	
  “Discharge”

  	
   

  	
  8.2

  	
   

  
	
  “Event of Default”

  	
   

  	
  6.1

  	
   

  
	
  “Excess Proceeds”

  	
   

  	
  4.10

  	
   

  
	
  “Expiration Date”

  	
   

  	
  3.9

  	
   

  
	
  “legal defeasance”

  	
   

  	
  8.2

  	
   

  
	
  “Note Register”

  	
   

  	
  2.3

  	
   

  
	
  “Offer Amount”

  	
   

  	
  3.9

  	
   

  
	
  “Purchase Date”

  	
   

  	
  3.9

  	
   

  
	
  “QIB”

  	
   

  	
  2.1

  	
   

  
	
  “QIB Global Note”

  	
   

  	
  2.1

  	
   

  
	
  “redemption date”

  	
   

  	
  3.1

  	
   

  
	
  “Registrar”

  	
   

  	
  2.3

  	
   

  
	
  “Regulation S”

  	
   

  	
  2.1

  	
   

  
	
  “Regulation S Global Note”

  	
   

  	
  2.1

  	
   

  
	
  “Rule 144A”

  	
   

  	
  2.1

  	
   

  
	
  “Surviving Entity”

  	
   

  	
  5.1

  	
   

  

 

SECTION 1.3                                                  Incorporation
by Reference of Trust Indenture Act.

 

Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated
by reference in, and made a part of, this Indenture.

 

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

 

“obligor” on the Notes means the Issuer,
the Guarantors and any successor obligor upon the Notes.

 

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

 

35

 

SECTION 1.4                                                       Rules of
Construction.

 

Unless
the context otherwise requires:

 

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

 

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

 

(3)           “or” is not exclusive;

 

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

 

(5)           unless otherwise specified,
any reference to a Section or an Article refers to such Section or
Article of this Indenture;

 

(6)           provisions apply to
successive events and transactions;

 

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

 

(8)           for the avoidance of doubt,
any references to “interest” shall include any Additional Interest that may be
payable.

 

ARTICLE II

 

THE NOTES

 

SECTION 2.1                                                  Form and
Dating.

 

(a)           The Notes and the Trustee’s certificate of
authentication shall be substantially in the form of Exhibit A
attached hereto.  The Notes may have
notations, legends or endorsements required by law, stock exchange rule or
usage.  Each Note shall be dated the date
of its authentication.  The Notes
initially shall be issued only in denominations of $2,000 and any integral
multiple of $1,000 in excess thereof.

 

The
terms and provisions contained in the Notes shall constitute, and are hereby
expressly made, a part of this Indenture and the Issuer, the Guarantors and the
Trustee, by their execution and delivery of this Indenture, expressly agree to
such terms and provisions and to be bound thereby.  However, to the extent any provision of any
Note conflicts with the express provisions of this Indenture, the provisions of
this Indenture shall govern and be controlling.

 

36

 

The
Notes shall be issued initially in the form of one or more Global Notes
substantially in the form attached as Exhibit A hereto and shall be
deposited on behalf of the purchasers of the Notes represented thereby with the
Trustee as Note Custodian, and registered in the name of the Depositary or a
nominee of the Depositary, duly executed by the Issuer and authenticated by the
Trustee as hereinafter provided.

 

Each
Global Note shall represent such of the outstanding Notes as shall be specified
therein and each shall provide that it shall represent the aggregate amount of
outstanding Notes from time to time endorsed thereon and that the aggregate
amount of outstanding Notes represented thereby may from time to time be
reduced or increased, as appropriate, to reflect exchanges, redemptions and
transfers of interests.  Any endorsement
of a Global Note to reflect the amount of any increase or decrease in the
amount of outstanding Notes represented thereby shall be made by the Trustee or
the Note Custodian, at the direction of the Trustee, in accordance with
instructions given by the Holder thereof as required by Section 2.6
hereof.

 

Except
as set forth in Section 2.6 hereof, the Global Notes may be transferred,
in whole and not in part, only to another nominee of the Depositary or to a
successor of the Depositary or its nominee.

 

(b)           The Initial Notes are being issued by the Issuer
only (i) to “qualified institutional buyers” (as defined in Rule 144A
under the Securities Act (“Rule 144A”))
(“QIBs”) and (ii) in reliance on
Regulation S under the Securities Act (“Regulation S”).  After such initial offers, Initial Notes
that are Restricted Notes may be transferred to QIBs, in reliance on Rule 144A,
outside the United States pursuant to Regulation S or to the Company, in
accordance with certain transfer restrictions. 
Initial Notes that are offered in reliance on Rule 144A shall be
issued in the form of one or more permanent Global Notes substantially in the
form set forth in Exhibit A (the “QIB Global
Note”) deposited with the Trustee, as Note Custodian, duly executed
by the Company and authenticated by the Trustee as hereinafter provided.  Initial Notes that are offered in offshore
transactions in reliance on Regulation S shall be issued in the form of one or
more Global Notes substantially in the form set forth in Exhibit A
(the “Regulation S Global Note”) deposited
with the Trustee, as Note Custodian, duly executed by the Company and
authenticated by the Trustee as hereinafter provided.  The QIB Global Note and the Regulation S
Global Note shall each be issued with separate CUSIP numbers.  The aggregate principal amount of each Global
Note may from time to time be increased or decreased by adjustments made on the
records of the Trustee, as Note Custodian. 
Transfers of Notes between QIBs and to or by purchasers pursuant to
Regulation S shall be represented by appropriate increases and decreases to the
respective amounts of the appropriate Global Notes, as more fully provided in Section 2.16.

 

(c)           Section 2.1(b) shall apply only to Global
Notes deposited with or on behalf of the Depositary.

 

The
Issuer shall execute and the Trustee shall, in accordance with Section 2.1(b) and
this Section 2.1(c), authenticate and deliver the Global Notes that (i) shall
be registered in the name of the Depositary or the nominee of the Depositary
and (ii) shall be delivered by the Trustee to

 

37

 

the Depositary or pursuant to the Depositary’s
instructions or held by the Trustee as Note Custodian.

 

Participants
shall have no rights either under this Indenture with respect to any Global
Note held on their behalf by the Depositary or by the Note Custodian or under
such Global Note, and the Depositary may be treated by the Issuer, the Trustee and
any agent of the Issuer or the Trustee as the absolute owner of such Global
Note for all purposes whatsoever. 
Notwithstanding the foregoing, nothing herein shall prevent the Issuer,
the Trustee or any Agent or other agent of the Issuer or the Trustee from
giving effect to any written certification, proxy or other authorization
furnished by the Depositary or impair, as between the Depositary and its
Participants, the operation of customary practices of such Depositary governing
the exercise of the rights of an owner of a beneficial interest in any Global
Note.

 

The
Trustee shall have no responsibility or obligation to any Holder, any member of
(or a participant in) DTC or any other Person with respect to the accuracy of
the records of DTC (or its nominee) or of any participant or member thereof,
with respect to any ownership interest in the Notes or with respect to the
delivery of any notice (including any notice of redemption) or the payment of
any amount or delivery of any Notes (or other security or property) under or
with respect to the Notes.  The Trustee
may rely (and shall be fully protected in relying) upon information furnished
by DTC with respect to its members, participants and any Beneficial Owners in
the Notes.

 

(d)           Notes issued in certificated form, including Global
Notes, shall be substantially in the form of Exhibit A attached
hereto.

 

SECTION 2.2                                                  Execution and
Authentication.

 

An
Officer shall sign the Notes for the Issuer by manual or facsimile signature.

 

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

 

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

 

The
Trustee shall, upon a written order of the Issuer signed by one Officer
directing the Trustee to authenticate and deliver the Notes and certifying that
all conditions precedent to the issuance of the Notes contained herein have
been complied with, authenticate Notes for original issue up to the aggregate
principal amount stated in paragraph 4 of the Notes.  The aggregate principal amount of Notes
outstanding at any time may not exceed such amount except as provided in
Section 2.17 hereof.

 

The
Trustee may appoint an authenticating agent reasonably acceptable to the Issuer
to authenticate Notes.  Unless limited by
the terms of such appointment, an authenticating agent

 

38

 

may authenticate Notes whenever the Trustee
may do so.  Each reference in this
Indenture to authentication by the Trustee includes authentication by such
agent.  An authenticating agent has the
same rights as an Agent to deal with Holders or the Issuer or an Affiliate of
the Issuer.

 

SECTION 2.3                                                  Registrar;
Paying Agent.

 

The
Issuer shall maintain (i) an office or agency where Notes may be presented
for registration of transfer or for exchange (“Registrar”)
and (ii) an office or agency where Notes may be presented for payment to a
Paying Agent.  The Registrar shall keep a
register of the Notes (the “Note Register”)
and of their transfer and exchange.  The
Issuer may appoint one or more co-registrars and one or more additional paying
agents; provided, however,
that at all times there shall be only one Note Register.  The term “Registrar” includes any
co-registrar and the term “Paying Agent” includes any additional paying
agent.  The Issuer may change any Paying
Agent or Registrar without notice to any Holder.  The Issuer shall notify the Trustee in
writing of the name and address of any Agent not a party to this
Indenture.  The Issuer or any of its
Restricted Subsidiaries may act as Paying Agent or Registrar.

 

The
Issuer shall notify the Trustee and the Holders of the name and address of any
Agent not a party to this Indenture.  The
Issuer or any Guarantor may act as Paying Agent or Registrar.  The Issuer shall enter into an appropriate
agency agreement with any Agent not a party to this Indenture, which shall
incorporate the provisions of Section 317(b) of the TIA.  The agreement shall implement the provisions
of this Indenture that relate to such Agent. 
The Issuer shall notify the Trustee of the name and address of any such
Agent.

 

The
Issuer initially appoints the Trustee to act as the Registrar and Paying Agent
and initially appoints the Corporate Trust Office of the Trustee as the office
or agency of the Company for such purposes and as the office or agency of the
Company where notices  and demands to or
upon the Issuer in respect of the Notes and this Indenture may be served and
the Trustee as the agent of the Issuer to receive such notices and demands.

 

The
Issuer initially appoints DTC to act as the Depositary with respect to the
Global Notes.

 

SECTION 2.4                                                  Paying Agent to
Hold Money in Trust.

 

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

 

39

 

money held by it as Paying Agent.  Upon the occurrence of events specified in Section 6.1(7) hereof,
the Trustee shall serve as Paying Agent for the Notes.

 

SECTION 2.5                                                       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 all Holders and
shall otherwise comply with TIA § 312(a). 
If the Trustee is not the Registrar, the Issuer shall furnish, or cause
the Registrar to furnish, to the Trustee at least seven (7) 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 the Holders, including the
aggregate principal amount of the Notes held by each Holder thereof, and the
Issuer shall otherwise comply with TIA § 312(a).

 

SECTION 2.6                                                       Book-Entry
Provisions for Global Securities.

 

(a)           Each Global Note constituting a Restricted Note
shall (i) be registered in the name of the Depositary for such Global
Notes or the nominee of such Depositary, (ii) be delivered to the Trustee
as Note Custodian and (iii) bear legends as required by Section 2.6(e).

 

Members
of, or participants in, the Depositary (“Agent Members”)
shall have no rights under this Indenture with respect to any Global Note held
on their behalf by the Depositary, or the Trustee as its custodian, or under
the Global Note, and the Depositary may be treated by the Company, the Trustee
and any agent of the Company or the Trustee as the absolute owner of such
Global Note for 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
Depositary or impair, as between the Depositary and its Agent Members, the
operation of customary practices governing the exercise of the rights of a
Holder of any Note.

 

(b)           Transfers of a Global Note shall be limited to
transfers of such Global Note in whole, but not in part, to the Depositary, its
successors or their respective nominees. 
Interests of Beneficial Owners (or the requesting Beneficial Owners in
the case of clause (ii) immediately below) in a Global Note may be
transferred in accordance with Section 2.16 and the rules and
procedures of the Depositary.  In
addition, Certificated Notes shall be transferred to all Beneficial Owners in
exchange for their beneficial interests if (i) the Depositary notifies the
Company that it is unwilling or unable to continue as Depositary for the Global
Notes or the Depositary ceases to be a “clearing agency” registered under the
Exchange Act and a successor depositary is not appointed by the Company within
ninety (90) days of such notice or (ii) an Event of Default shall have
occurred and is continuing and the Registrar shall have received a request from
the Depositary in a Global Note to issue such Certificated Notes.

 

(c)           In connection with the transfer of the entire Global
Note to beneficial owners pursuant to clause (b) of this Section, such
Global Note shall be deemed to be surrendered to the Trustee for cancellation,
and the Company shall execute, and the Trustee shall authenticate and

 

40

 

deliver, to each Beneficial Owner identified
by the Depositary in exchange for its beneficial interest in such Global Note
an equal aggregate principal amount of Certificated Notes of authorized
denominations.

 

(d)           The registered holder of a Global Note may grant
proxies and otherwise authorize any person, including Agent Members and persons
that may hold interest through Agent Members, to take any action which a Holder
is entitled to take under this Indenture or the Notes.

 

(e)           Legends.  The following legends shall appear on the
face of all Global Notes and Certificated Notes issued under this Indenture
unless specifically stated otherwise in the applicable provisions of this
Indenture:

 

(i)            Private Placement Legend.

 

(1)           Unless and until (x) a
Note is exchanged for an Exchange Note or sold in connection with an effective
shelf registration statement pursuant to the Registration Rights Agreement or (y) the
Company determines and there is delivered to the Trustee an Opinion of Counsel
reasonably satisfactory to the Trustee and a letter of representation of the
Company reasonably satisfactory to the Trustee to the effect that the following
legend and the related restrictions on transfer are not required in order to
maintain compliance with the provisions of the Securities Act, each Global Note
and each Certificated Note (and all Notes issued in exchange therefor or
substitution therefor) shall bear the legend in substantially the following
form:

 

“THE SECURITY (OR ITS
PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT
FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), AND THE SECURITY EVIDENCED HEREBY MAY NOT
BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION
OR AN APPLICABLE EXEMPTION THEREFROM. 
EACH PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT
THE SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5
OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.  THE HOLDER OF THE SECURITY EVIDENCED HEREBY
AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) SUCH SECURITY MAY BE
RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (i) (a) TO A PERSON WHO
IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (b) IN
A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (c) OUTSIDE
THE UNITED STATES TO A NON-U.S. PERSON IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 904 UNDER THE SECURITIES ACT, OR (d) IN ACCORDANCE
WITH ANOTHER

 

41

 

EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF
COUNSEL IF THE COMPANY SO REQUESTS), (ii) TO THE COMPANY, OR (iii) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE IN ACCORDANCE
WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY
OTHER APPLICABLE JURISDICTION, AND (B) THE HOLDER WILL, AND EACH
SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER FROM IT OF THE SECURITY
EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN CLAUSE (A) ABOVE.  NO REPRESENTATION CAN BE MADE AS TO THE
AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE 144 FOR RESALE OF THE SECURITY
EVIDENCED HEREBY.”

 

(ii)           Global Note Legend.  Each Global Note, whether or not an Exchange
Note, Restricted Global Note or Unrestricted Global Note, shall bear a legend
in substantially the following form:

 

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS
DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE
BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON
UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH
NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.6(e)(iv) OF
THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT
NOT IN PART PURSUANT TO SECTION 2.6(b) OF THE INDENTURE, (III) THIS
GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11
OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A
SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE ISSUER.  UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR
IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY
OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR
A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. 
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY (“DTC”) TO THE ISSUER 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 MAY BE
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE

 

42

 

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.”

 

(iii)          Each Global Note shall bear
the Global Note Legend on the face thereof.

 

(iv)          At such time as all
beneficial interests in Global Notes have been exchanged for Certificated
Notes, redeemed, repurchased or cancelled, all Global Notes shall be returned
to or retained and cancelled by the Trustee in accordance with Section 2.11
hereof.  At any time prior to such
cancellation, if any beneficial interest in a Global Note is exchanged for
Certificated Notes, redeemed, repurchased or cancelled, the principal amount of
Notes represented by such Global Note shall be reduced accordingly and an
endorsement shall be made on such Global Note, by the Trustee or the Note
Custodian, at the direction of the Trustee, to reflect such reduction.

 

(f)            General Provisions Relating to Transfers and
Exchanges.

 

(i)            To permit registrations of
transfers and exchanges, the Issuer shall execute and the Trustee shall
authenticate Global Notes and Certificated Notes at the Registrar’s request.

 

(ii)           No service charge shall be
made to a Holder for any registration of transfer or exchange, but the Issuer
may require payment of a sum sufficient to cover any stamp or transfer tax or
similar governmental charge payable in connection therewith (other than any
such stamp or transfer taxes or similar governmental charge payable upon exchange
or transfer pursuant to Sections 2.2, 2.10, 3.6, 4.10, 4.14 and 9.5 hereto).

 

(iii)          All Global Notes and
Certificated Notes issued upon any registration of transfer or exchange of
Global Notes or Certificated Notes shall be the valid obligations of the
Issuer, evidencing the same debt, and entitled to the same benefits under this
Indenture, as the Global Notes or Certificated Notes surrendered upon such
registration of transfer or exchange.

 

(iv)          The Registrar shall not be
required (A) to issue, to register the transfer of or to exchange Notes
during a period beginning at the opening of fifteen (15) days before the day of
any selection of Notes for redemption under Section 3.2 hereof and ending
at the close of business on the day of selection, (B) to register the
transfer of or to exchange any Note so selected for redemption in whole or in
part, except the unredeemed portion of any Note being redeemed in part, or (C) to
register the transfer of or to exchange a Note between a record date and the
next succeeding interest payment date.

 

(v)           [Reserved].

 

43

 

(vi)          Prior to due presentment for
the registration of a transfer of any Note, the Trustee, any Agent, the
Guarantors and the Issuer may deem and treat the Person in whose name any Note
is registered as the absolute owner of such Note for the purpose of receiving
payment of principal of and interest on such Notes and for all other purposes
whatsoever, whether or not such Note is overdue, and none of the any Guarantor,
the Trustee, any Agent or the Issuer shall be affected by notice to the
contrary.

 

(vii)         The Trustee shall
authenticate Global Notes and Certificated Notes in accordance with the
provisions of Section 2.2 hereof. 
Except as provided in Section 2.6(b), neither the Trustee nor the
Registrar shall authenticate or deliver any Certificated Note in exchange for a
Global Note.

 

(viii)        Each Holder agrees to
provide reasonable indemnity to the Issuer and the Trustee against any
liability that may result from the transfer, exchange or assignment of such
Holder’s Note in violation of any provision of this Indenture and/or applicable
United States federal or state securities law.

 

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

 

(x)            Affiliates of the Company
are prohibited from taking beneficial interest in one or more Restricted Global
Notes.

 

SECTION 2.7                                                       Replacement
Notes.

 

If
any mutilated Note is surrendered to the Trustee, or the Issuer and the Trustee
receive evidence to their satisfaction of the destruction, loss or theft of any
Note, the Issuer shall issue and the Trustee, upon the written order of the
Issuer signed by an Officer of the Issuer, shall authenticate a replacement
Note if the Trustee’s requirements are met. 
If required by the Trustee or the Issuer, an indemnity bond must be
supplied by the Holder that is sufficient in the judgment of the Trustee and
the Issuer to protect the Issuer, the Trustee, any Agent and any authenticating
agent from any loss that any of them may suffer if a Note is replaced.  The Issuer and the Trustee may charge for
their expenses in replacing a Note.

 

Every
replacement Note is an additional obligation of the Issuer and shall be
entitled to all of the benefits of this Indenture equally and proportionately
with all other Notes duly issued hereunder.

 

44

 

SECTION 2.8                                                       Outstanding
Notes.

 

The
Notes outstanding at any time are all the Notes authenticated by the Trustee
except for those cancelled by it, those delivered to it for cancellation, those
reductions in the interest in a Global Note effected by the Trustee in
accordance with the provisions hereof, and those described in this Section 2.8
as not outstanding.  Except as set forth
in Section 2.9 hereof, a Note does not cease to be outstanding because the
Issuer or an Affiliate of the Issuer holds the Note.

 

If
a Note is replaced pursuant to Section 2.7 hereof, it ceases to be outstanding
unless the Trustee receives proof satisfactory to it that the replaced Note is
held by a bona fide purchaser.

 

If
the principal amount of any Note is considered paid under Section 4.1
hereof, it ceases to be outstanding and interest on it ceases to accrue.

 

If
the Paying Agent (other than the Issuer, a Subsidiary or an Affiliate of any
thereof) holds, on a redemption date or maturity date, money sufficient to pay
all principal and interest payable on that date with respect to the Notes
payable on that date, then on and after that date such Notes shall be deemed to
be no longer outstanding and shall cease to accrue interest.

 

SECTION 2.9                                                       Treasury Notes.

 

In
determining whether the Holders of the required aggregate principal amount of
Notes have concurred in any direction, waiver or consent, Notes owned by the
Issuer or by any Affiliate of the Issuer shall be considered as though not
outstanding, except that for the purposes of determining whether the Trustee
shall be protected in relying on any such direction, waiver or consent, only
Notes shown on the register as being owned shall be so disregarded.  Notwithstanding the foregoing, Notes that are
to be acquired by the Issuer or an Affiliate of the Issuer pursuant to an
exchange offer, tender offer or other agreement shall not be deemed to be owned
by such entity until legal title to such Notes passes to such entity.

 

SECTION 2.10                                                 Temporary Notes.

 

Until
Certificated Notes are ready for delivery, the Issuer may prepare and the
Trustee shall authenticate temporary Notes upon a written order of the Issuer
signed by an Officer of the Issuer. 
Temporary Notes shall be substantially in the form of Certificated Notes
but may have variations that the Issuer considers appropriate for temporary
Notes.  Without unreasonable delay, the
Issuer shall prepare and the Trustee shall upon receipt of a written order of
the Issuer signed by an Officer authenticate Certificated Notes in exchange for
temporary Notes.

 

Holders
of temporary Notes shall be entitled to all of the benefits of this Indenture.

 

SECTION 2.11                                                 Cancellation.

 

The
Issuer at any time may deliver to the Trustee for cancellation any Notes
previously authenticated and delivered hereunder or which the Issuer may have
acquired in any manner whatsoever, and all Notes so delivered shall be promptly
cancelled by the Trustee.  All Notes

 

45

 

surrendered for registration of transfer,
exchange or payment, if surrendered to any Person other than the Trustee, shall
be delivered to the Trustee.  The Trustee
and no one else shall cancel all Notes surrendered for registration of
transfer, exchange, payment, replacement or cancellation.  Subject to Section 2.7 hereof, the
Issuer may not issue new Notes to replace Notes that they have redeemed or paid
or that have been delivered to the Trustee for cancellation.  All cancelled Notes held by the Trustee shall
be disposed of in accordance with its customary practice, and certification of
their disposal delivered to the Issuer, unless by a written order, signed by an
Officer of the Issuer, the Issuer shall direct that cancelled Notes be returned
to it.

 

SECTION 2.12                                                 Defaulted
Interest.

 

If
the Issuer defaults in a payment of interest on the Notes, it shall pay the
defaulted interest then borne by the Notes in any lawful manner plus, to the
extent lawful, interest payable on the defaulted interest, to the Persons who
are Holders on a subsequent special record date, which date shall be at the
earliest practicable date but in all events at least five (5) Business
Days prior to the payment date, in each case at the rate provided in the Notes
and in Section 4.1 hereof.  The
Issuer shall fix or cause to be fixed each such special record date and payment
date and shall promptly thereafter notify the Trustee of any such date.  At least fifteen (15) days before the special
record date, the Issuer (or the Trustee, in the name and at the expense of the
Issuer) shall deliver or cause to be delivered to Holders a notice that states
the special record date, the related payment date and the amount of such
interest to be paid.

 

SECTION 2.13                                                 Record Date.

 

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

 

SECTION 2.14                                                 Computation of
Interest.

 

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

 

SECTION 2.15                                                 CUSIP Number.

 

The
Issuer in issuing the Notes may use a “CUSIP” and/or ISIN or other similar
number, and if it does so, the Company may use the CUSIP and/or ISIN or other
similar number in notices of redemption or exchange as a convenience to
Holders; provided that any such notice may state
that no representation is made as to the correctness or accuracy of the CUSIP
and/or ISIN or other similar number printed in the notice or on the Notes and
that reliance may be placed only on the other identification numbers printed on
the Notes.  The Issuer shall promptly
notify the Trustee of any change in the CUSIP and/or ISIN or other similar
number.

 

46

 

SECTION 2.16                                                 Special
Transfer Provisions.

 

Unless
and until (i) a Restricted Note is exchanged for an Exchange Note or sold
in connection with an effective shelf registration statement pursuant to the
Registration Rights Agreement or (ii) the Restricted Notes Legend is no
longer required pursuant to Section 2.6(e), the following provisions shall
apply:

 

(a)                                  Transfers to QIBs.  The following provisions shall apply with
respect to the registration of any proposed transfer of a Restricted Note
(other than pursuant to Regulation S):

 

(i)                                     The Registrar
shall register the transfer of a Restricted Note by a Holder to a QIB if such
transfer is being made by a proposed transferor who has provided the Registrar
with (a) an appropriately completed certificate of transfer in the form
attached to the Note and (b) a letter substantially in the form set forth
in Exhibit C hereto.

 

(ii)                                  If the proposed
transferee is an Agent Member and the Restricted Note to be transferred
consists of an interest in the Regulation S Global Note, upon receipt by the
Registrar of (x) the items required by paragraph (i) above and (y) instructions
given in accordance with the Depositary’s and the Registrar’s procedures
therefor, the Registrar shall reflect on its books and records the date and an
increase in the principal amount of the QIB Global Note in an amount equal to
the principal amount of the beneficial interest in the Regulation S Global Note
to be so transferred, and the Registrar shall reflect on its books and records
the date and an appropriate decrease in the principal amount of such Regulation
S Global Note.

 

(b)                                 Transfers Pursuant to
Regulation S.  The
following provisions shall apply with respect to registration of any proposed
transfer of a Restricted Note pursuant to Regulation S:

 

(i)                                     The Registrar
shall register any proposed transfer of a Restricted Note pursuant to
Regulation S by a Holder upon receipt of (a) an appropriately completed
certificate of transfer in the form attached to the Note and (b) a letter
substantially in the form set forth in Exhibit D hereto from the
proposed transferor.

 

(ii)                                  If the proposed
transferee is an Agent Member holding a beneficial interest in a QIB Global
Note and the Restricted Note to be transferred consists of an interest in a QIB
Global Note, upon receipt by the Registrar of (x) the letter, if any,
required by paragraph (i) above and (y) instructions in accordance
with the Depositary’s and the Registrar’s procedures therefor, the Registrar
shall reflect on its books and records the date and an increase in the
principal amount of the Regulation S Global Note in an amount equal to the
principal amount of the beneficial interest in the QIB Global Note to be
transferred, and the Registrar shall reflect on its books and records the date
and an appropriate decrease in the principal amount of the QIB Global Note.

 

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

 

47

 

order
in accordance with Section 2.2, the Trustee shall authenticate, one or
more Global Notes not bearing the Restricted Notes Legend in an aggregate
principal amount equal to the principal amount of the beneficial interests in
the Global Notes that are Restricted Notes tendered for acceptance in
accordance with the Exchange Offer and accepted for exchange in the Exchange
Offer.  Concurrently with the issuance of
such Global Notes, the Registrar shall cause the aggregate principal amount of
the applicable Restricted Notes to be reduced accordingly, and the Registrar
shall deliver to the Persons designated by the Holders of Restricted Notes so
accepted Global Notes not bearing the Restricted Notes Legend in the appropriate
principal amount.

 

(d)                                 Restricted Notes Legend.  Upon the transfer, exchange or replacement of
Unrestricted Notes, the Registrar shall deliver Unrestricted Notes that do not
bear the Restricted Notes Legend.  Upon
the transfer, exchange or replacement of Restricted Notes, the Registrar shall
deliver only Restricted Notes that bear the Restricted Notes Legend unless the
Restricted Notes Legend is no longer required by Section 2.6(e), or the
Company determines and there is delivered to the Trustee an Opinion of Counsel
reasonably satisfactory to the Trustee and a letter of representation of the
Issuer reasonably satisfactory to the Trustee to the effect that neither such
legend nor the related restrictions on transfer are required or appropriate in order
to ensure that subsequent transfers of the Notes are effected in compliance
with the Securities Act.

 

(e)                                  General.  By its acceptance of any Note bearing the
Restricted Notes Legend, each Holder of such a Note acknowledges receipt of a
Restricted Note with restrictions on transfer of such Note set forth in this
Indenture and in the Restricted Notes Legend and agrees that it shall transfer
such Note only as provided in this Indenture until such time as the Restricted
Note Legend is no longer required pursuant to Section 2.6(e) and such
Holder transfers such a Restricted Note to an Unrestricted Note. The Registrar
shall not register a transfer of any Note unless such transfer complies with
the restrictions on transfer of such Note set forth in this Indenture. In
connection with any transfer of Notes, each Holder agrees by its acceptance of
the Notes to furnish the Registrar or the Company such certifications, legal
opinions or other information as either of them may reasonably require to
confirm that such transfer is being made pursuant to an exemption from, or a
transaction not subject to, the registration requirements of the Securities Act
until such time as the Restricted Note Legend is no longer required pursuant to
Section 2.6(e) and such Holder transfers such a Restricted Note to an
Unrestricted Note; provided that the Registrar shall not be required to
determine (but may rely on a determination made by the Company with respect to)
the sufficiency of any such certifications, legal opinions or other information.

 

The
Registrar shall retain copies of all letters, notices and other written
communications received pursuant to this Section 2.16.

 

SECTION 2.17                                                 Issuance of
Additional Notes.

 

The
Company shall be entitled to issue Additional Notes under this Indenture that
shall have identical terms as the Initial Notes, other than with respect to the
date of issuance, issue price, amount of interest payable on the first interest
payment date applicable thereto and any customary escrow provisions (and, if
such Additional Notes shall be issued in the form of 

 

48

 

Restricted
Notes, other than with respect to transfer restrictions, any Registration
Rights Agreement and additional interest with respect thereto); provided that such issuance is not prohibited by the terms
of this Indenture, including Section 4.9. 
The Initial Notes and any Additional Notes and all Exchange Notes shall
be treated as a single class for all purposes under this Indenture.

 

With
respect to any Additional Notes, the Company shall set forth in a resolution of
its Board of Directors and in an Officer’s Certificate, a copy of each of which
shall be delivered to the Trustee, the following information:

 

(1)                                  the aggregate
principal amount of such Additional Notes to be authenticated and delivered
pursuant to this Indenture;

 

(2)                                  the issue
price, the issue date, the CUSIP number of such Additional Notes, the first
interest payment date and the amount of interest payable on such first interest
payment date applicable thereto and the date from which interest shall accrue;
and

 

(3)                                  whether such
Additional Notes shall be Restricted Notes.

 

ARTICLE III

 

REDEMPTION AND PREPAYMENT

 

SECTION 3.1                                                       Notices to
Trustee.

 

If
the Issuer elects to redeem Notes pursuant to the optional redemption
provisions of Section 3.7 hereof, it shall furnish to the Trustee, at
least forty-five (45) days (or such shorter period as is acceptable to the
Trustee) before a date fixed for redemption (the “redemption date”),
an Officer’s Certificate setting forth (i) the section of this Indenture
pursuant to which the redemption shall occur, (ii) the redemption date, (iii) the
principal amount of Notes to be redeemed and (iv) the Redemption Price.

 

If
the Issuer is required to make an Offer to Purchase pursuant to Section 4.10
or 4.14 hereof, it shall furnish to the Trustee, at least forty-five (45) days
(or such shorter period as is acceptable to the Trustee) before the scheduled
purchase date, an Officer’s Certificate setting forth (i) the section of
this Indenture pursuant to which the offer to purchase shall occur, (ii) the
terms of the offer, (iii) the principal amount of Notes to be purchased, (iv) the
purchase price and (v) the purchase date and further setting forth a
statement to the effect that (a) the Issuer or one of its Subsidiaries has
effected an Asset Sale and there are Excess Proceeds aggregating more than
$10.0 million or (b) a Change of Control has occurred, as applicable.

 

49

 

SECTION 3.2                                                       Selection of
Notes to Be Redeemed.

 

If
less than all of the Notes are to be redeemed at any time, the Trustee shall
select the Notes to be redeemed among the Holders in compliance with the
requirements of the principal national securities exchange, if any, on which
the Notes are listed or, if the Notes are not so listed, on a pro rata basis, by lot or by such method as the Trustee
shall deem fair and appropriate (and in a manner that complies with applicable
requirements of the Depositary); provided that
no Notes of $2,000 or less shall be redeemed in part.  If any Note is to be redeemed in part only,
the notice of redemption that relates to such Note shall state the portion of
the principal amount thereof to be redeemed. 
A new Note in principal amount equal to the unredeemed portion of the
original Note, if any, will be issued in the name of the Holder thereof upon
cancellation of the original Note.  On
and after the redemption date, interest ceases to accrue on Notes or portions
of them called for redemption.  The
Trustee shall make the selection from the Notes outstanding and not previously
called for redemption and shall promptly notify the Issuer in writing of the
Notes selected for redemption.  The
Trustee may select for redemption portions (equal to $1,000 or any integral
multiple thereof) of the principal of the Notes that have denominations larger
than $2,000.

 

SECTION 3.3                                                       Notice of
Redemption.

 

Subject
to the provisions of Section 3.9, at least 30 days but not more than 60
days before a redemption date, the Issuer shall send or cause to be sent by
electronic transmission (to the extent permitted by applicable procedures or
regulations) or by first class mail, a notice of redemption to each Holder
whose Notes are to be redeemed at its registered address.

 

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

 

(1)                                  the redemption
date;

 

(2)                                  the Redemption
Price;

 

(3)                                  if any Note is
being redeemed in part, the portion of the principal amount of such Notes to be
redeemed and that, after the redemption date, upon surrender of such Note, a
new Note or Notes in principal amount equal to the unredeemed portion shall be
issued upon cancellation of the original Note;

 

(4)                                  the name,
telephone number and address of the Paying Agent;

 

(5)                                  that Notes
called for redemption must be surrendered to the Paying Agent to collect the
Redemption Price;

 

(6)                                  that, unless
the Issuer defaults in making such redemption payment, interest, if any, on
Notes called for redemption ceases to accrue on and after the redemption date;

 

50

 

(7)                                  the paragraph
of the Notes and/or Section of this Indenture pursuant to which the Notes
called for redemption are being redeemed; and

 

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

 

At
the Issuer’s request, the Trustee shall give the notice of redemption in the
Issuer’s name and at the Issuer’s expense; provided, however, that the Issuer shall have delivered to the Trustee
at least 45 days prior to the redemption date (or such shorter period as is
acceptable to the Trustee), an Officer’s Certificate requesting that the
Trustee give such notice and setting forth the information to be stated in the
notices as provided in the preceding paragraph. 
The notice sent in the manner herein provided shall be conclusively
presumed to have been duly given whether or not a Holder receives such notice.  In any case, failure to give such notice by
electronic transmission or by mail or any defect in the notice to the Holder of
any Note shall not affect the validity of the proceeding for the redemption of
any other Note.

 

SECTION 3.4                                                       Effect of
Notice of Redemption.

 

Once
notice of redemption is sent in accordance with Section 3.3 hereof, Notes
called for redemption become irrevocably due and payable on the redemption date
at the Redemption Price plus accrued and unpaid interest, if any, to such
date.  A notice of redemption may not be
conditional.

 

SECTION 3.5                                                       Deposit of
Redemption of Purchase Price.

 

On
or before 10:00 a.m. (New York City time) on each redemption date or the
date on which Notes must be accepted for purchase pursuant to Section 4.10
or 4.14, the Issuer shall deposit with the Trustee or with the Paying Agent
(other than the Issuer or an Affiliate of the Issuer) money sufficient to pay
the Redemption Price of and accrued and unpaid interest, if any, on all Notes
to be redeemed or purchased on that date. 
The Trustee or the Paying Agent shall promptly return to the Issuer any
money deposited with the Trustee or the Paying Agent by the Issuer in excess of
the amounts necessary to pay the Redemption Price of (including any applicable
premium), and accrued interest, if any, on, all Notes to be redeemed or
purchased.

 

If
Notes called for redemption or tendered in an Asset Sale Offer or a Change of
Control Offer are paid or if Issuer has deposited with the Trustee or Paying
Agent money sufficient to pay the redemption or purchase price of, and unpaid
and accrued interest, if any, on, all Notes to be redeemed or purchased, on and
after the redemption or purchase date, interest, if any, shall cease to accrue
on the Notes or the portions of Notes called for redemption or tendered and not
withdrawn in an Asset Sale Offer or a Change of Control Offer (regardless of
whether certificates for such securities are actually surrendered).  If a Note is redeemed or purchased on or
after an interest record date but on or prior to the related interest payment
date, then any accrued and unpaid interest, if any, shall be paid to the Person
in whose name such Note was registered at the close of business on such record
date.  If any Note called for redemption
shall not be so paid upon surrender for redemption because of the failure of
the Issuer to comply with 

 

51

 

the
preceding paragraph, interest shall be paid on the unpaid principal from the
redemption or purchase date until such principal is paid, and to the extent
lawful on any interest not paid on such unpaid principal, in each case, at the
rate provided in the Notes and in Section 4.1 hereof.

 

SECTION 3.6                                                       Notes Redeemed
in Part.

 

Upon
surrender of a Note that is redeemed in part, the Issuer shall issue and, upon
the written request of an Officer of the Issuer, the Trustee shall authenticate
for the Holder at the expense of the Issuer a new Note equal in principal
amount to the unredeemed portion of the Note surrendered.

 

SECTION 3.7                                                       Optional
Redemption.

 

(i)                                     The Notes may
be redeemed, in whole or in part, at any time prior to July 15, 2014, at
the option of the Company upon not less than 30 nor more than 60 days’ prior
notice sent electronically (to the extent permitted by applicable procedures or
regulations) or by first-class mail to each Holder’s registered address, at a
Redemption Price equal to 100% of the principal amount of the Notes redeemed
plus the Applicable Premium as of, and accrued and unpaid interest, if any, to,
the applicable redemption date (subject to the right of holders of record on
the relevant record date to receive interest due on the relevant interest
payment date).

 

(ii)                                  The Notes are
subject to redemption, at the option of the Issuer, in whole or in part, at any
time on or after July 15, 2014, upon not less than 30 nor more than 60
days’ notice at the following Redemption Prices (expressed as percentages of
the principal amount to be redeemed) set forth below, plus accrued and unpaid
interest, if any, to, but not including, the redemption date (subject to the
right of Holders of record on the relevant regular record date to receive
interest due on an interest payment date that is on or prior to the redemption
date), if redeemed during the 12-month period beginning July 15 of the
years indicated:

 

	
  Year

  	
   

  	
  Redemption Price

  	
   

  
	
  2014

  	
   

  	
  104.313

  	
  %

  
	
  2015

  	
   

  	
  102.156

  	
  %

  
	
  2016 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(iii)                               In addition to
the optional redemption of the Notes in accordance with the provisions of the
preceding paragraph, prior to July 15, 2013 the Issuer may, at its option,
with the net proceeds of one or more Qualified Equity Offerings, redeem up to
35% of the aggregate principal amount of the outstanding Notes (including
Additional Notes) at a Redemption Price equal to 108.625% of the principal
amount thereof, together with accrued and unpaid interest thereon, if any, to,
but not including, the date of redemption (subject to the right of registered
Holders of the Notes on a relevant record date to receive interest due on a
relevant interest payment date); provided that
at least 65% of the principal amount of Notes (including Additional Notes)
issued under the Indenture 

 

52

 

remains outstanding immediately after the occurrence
of any such redemption (excluding Notes held by the Company or its
Subsidiaries) and that any such redemption occurs within 90 days following the
closing of any such Qualified Equity Offering.

 

(iv)                              The Issuer may,
at any time and from time to time, purchase Notes in the open market or
otherwise, subject to compliance with this Indenture and compliance with all
applicable securities laws.

 

SECTION 3.8                                                       Mandatory
Redemption.

 

The
Issuer shall not be required to make mandatory redemption or sinking fund
payments with respect to the Notes.

 

SECTION 3.9                                                       Offer to
Purchase.

 

In
the event that the Issuer shall be required to commence an Offer to Purchase
pursuant to an Asset Sale Offer or a Change of Control Offer, the Issuer shall
follow the procedures specified below.

 

Unless
otherwise required by applicable law, an Offer to Purchase shall specify an
expiration date (the “Expiration Date”)
of the Offer to Purchase, which shall be, subject to any contrary requirements
of applicable law, not less than 30 days or more than 60 days after the date of
delivering of such Offer, and a settlement date (the “Purchase
Date”) for purchase of Notes within five Business Days after the
Expiration Date.  On the Purchase Date,
the Company shall purchase the aggregate principal amount of Notes required to
be purchased pursuant to Section 4.10 hereof or Section 4.14 hereof
(the “Offer Amount”), or if less than the
Offer Amount has been tendered, all Notes tendered in response to the Offer to
Purchase.  Payment for any Notes so
purchased shall be made in the same manner as interest payments are made.  If the Purchase Date is on or after the
interest record date and on or before the related interest payment date, any
accrued and unpaid interest, if any, shall be paid to the Person in whose name
a Note is registered at the close of business on such record date, and no
additional interest, if any, shall be payable to the Holders who tender Notes
pursuant to the Offer to Purchase.  The
Company shall notify the Trustee at least 15 days (or such shorter period as is
acceptable to the Trustee in its sole discretion) prior to the delivering of
the Offer of the Company’s obligation to make an Offer to Purchase, and the
Offer shall be sent electronically (to the extent permitted by applicable
procedures) or mailed by the Company or, at the Company’s request, by the
Trustee in the name and at the expense of the Company.  The Offer shall contain all instructions and
materials necessary to enable such Holders to tender Notes pursuant to the
Offer to Purchase.

 

On
or before 10:00 a.m. (New York City time) on each Purchase Date, the
Issuer shall irrevocably deposit with the Trustee or Paying Agent (other than
the Issuer or an Affiliate of the Issuer) in immediately available funds the
aggregate purchase price equal to the Offer Amount, together with accrued and
unpaid interest, if any, thereon, to be held for payment in accordance with the
terms of this Section 3.9.  On the
Purchase Date, the Issuer shall, to the extent lawful, (i) accept for
payment, on a pro rata basis to the extent
necessary, the Offer Amount of Notes or 

 

53

 

portions
thereof tendered pursuant to the Offer to Purchase, or if less than the Offer
Amount has been tendered, all Notes tendered, (ii) deliver or cause the
Paying Agent or depositary, as the case may be, to deliver to the Trustee Notes
so accepted and (iii) deliver to the Trustee an Officer’s Certificate
stating that such Notes or portions thereof were accepted for payment by the
Issuer in accordance with the terms of this Section 3.9.  The Issuer, the Depositary or the Paying
Agent, as the case may be, shall promptly (but in any case not later than three
(3) Business Days after the Purchase Date) mail or deliver to each
tendering Holder an amount equal to the purchase price of the Notes tendered by
such Holder and accepted by the Issuer for purchase, plus any accrued and
unpaid interest, if any, thereon, and the Issuer shall promptly issue a new
Note, and the Trustee, at the written request of the Issuer, shall authenticate
and mail or deliver at the expense of the Issuer such new Note to such Holder,
equal in principal amount to any unpurchased portion of such Holder’s Notes
surrendered; provided that each such new Note will
be in a principal amount of $2,000 or any integral multiple of $1,000 in excess
thereof.  Any Note not so accepted shall
be promptly mailed or delivered by the Issuer to the Holder thereof.  The Issuer shall publicly announce in a
newspaper of general circulation or in a press release provided to a nationally
recognized financial wire service the results of the Offer to Purchase on the
Purchase Date.

 

The
Issuer shall comply with the requirements of any applicable securities laws and
any regulations thereunder to the extent such laws and regulations are applicable
in connection with the repurchase of the Notes as a result of an Asset Sale
Offer or a Change of Control Offer.  To
the extent that the provisions of any securities laws or regulations conflict
with Sections 3.9, 4.10 or 4.14 of this Indenture, the Company will comply with
the applicable securities laws and regulations and will be deemed to have
complied with its obligations under Section 3.9, 4.10 or 4.14, as
applicable, by virtue of such compliance.

 

Other
than as specifically provided in this Section 3.9, any purchase pursuant
to this Section 3.9 shall be made pursuant to the provisions of Sections
3.1 through 3.6 hereof.

 

ARTICLE IV

 

COVENANTS

 

SECTION 4.1                                                       Payment of
Notes.

 

(a)                                  The Issuer shall pay or
cause to be paid the principal of, premium, if any, and interest on the Notes
on the dates and in the manner provided in the Notes.  Principal, premium, if any, and interest
shall be considered paid for all purposes hereunder on the date the Paying
Agent, if other than the Issuer or a Subsidiary thereof, holds, as of 10:00 a.m.
(New York City time), money deposited by the Issuer in immediately available
funds and designated for and sufficient to pay all such principal, premium, if
any, and interest then due.

 

54

 

(b)                                 The Issuer shall pay
interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal at the rate equal to 1% per annum in
excess of the then applicable interest rate on the Notes to the extent lawful;
it shall pay interest (including post-petition interest in any proceeding under
any Bankruptcy Law) on overdue installments of interest (without regard to any
applicable grace period) at the same rate to the extent lawful.

 

SECTION 4.2                                                       Maintenance of
Office or Agency.

 

The
Issuer shall maintain an office or agency (which may be an office of the
Trustee or an affiliate of the Trustee or Registrar) where Notes may be
surrendered for registration of transfer or for exchange and where notices and
demands to or upon the Issuer in respect of the Notes and this Indenture may be
served.  The Issuer shall give prompt
written notice to the Trustee of the location, and any change in the location,
of such office or agency.  The Issuer
hereby designates the Corporate Trust Office of the Trustee as one such office
or agency of the Issuer in accordance with Section 2.3 hereof.  If at any time the Issuer shall fail to
maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office of the Trustee and
the Company hereby appoints the Trustee its agent to receive all such
presentations, surrenders, notices and demands.

 

The
Issuer may also from time to time designate one or more other offices or
agencies where the Notes may be presented or surrendered for any or all such
purposes and may from time to time rescind such designations.  The Issuer shall give prompt written notice
to the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency.

 

The
Issuer hereby designates the Corporate Trust Office of the Trustee as one such
office or agency of the Issuer in accordance with Section 2.3 hereof.

 

SECTION 4.3                                                       Provision of
Financial Information.

 

Whether
or not required by the Commission, so long as any Notes are outstanding, the
Company will furnish to the Holders of Notes, or file electronically with the
Commission through the Commission’s Electronic Data Gathering, Analysis and
Retrieval System (or any successor system), within the time periods specified
in the Commission’s rules and regulations:

 

(1)                                  all quarterly
and annual financial information that would be required to be contained in a
filing with the Commission on Forms 10-Q and 10-K if the Company were
required to file such Forms, including a “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” and, with respect to the
annual information only, a report on the annual financial statements by the
Company’s certified independent accountants; and

 

(2)                                  all current
reports that would be required to be filed with the Commission on Form 8-K
if the Company were required to file such reports.

 

55

 

In
addition, whether or not required by the Commission, the Company will file a
copy of all of the information and reports referred to in clauses (1) and (2) above
with the Commission for public availability within the time periods specified
in the Commission’s rules and regulations (unless the Commission will not
accept such a filing) and make such information available to prospective
investors.  If the Commission will not
accept the Company’s filings for any reason, the Company will post the reports
referred to in the preceding paragraph on its website within the time periods
that would apply if the Company were required to file those reports with the
Commission.

 

In
addition, the Company and the Subsidiary Guarantors have agreed that, for so
long as any Notes remain outstanding, they will furnish to the Holders and to
prospective investors, upon their request, the information required to be
delivered pursuant to Rule 144A(d)(4) under the Securities Act.

 

If
the Company has designated any of its Subsidiaries as 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.

 

SECTION 4.4                                                       Compliance
Certificate.

 

The
Company shall deliver to the Trustee, within 120 days after the end of each
fiscal year, an Officer’s Certificate stating that a review of the activities
of the Company and its Subsidiaries during the preceding fiscal year has been
made under the supervision of the signing Officer with a view to determining
whether each has kept, observed, performed and fulfilled its obligations under
this Indenture (including, with respect to any Restricted Payments made during such
year, the basis upon which the calculations required by Section 4.7 hereof
were computed, which calculations may be based upon the Company’s latest
available financial statements), and further stating, as to the Officer signing
such certificate, that, to his or her knowledge, each entity is not in default
in the performance or observance of any of the terms, provisions and conditions
of this Indenture (or, if a Default or Event of Default shall have occurred,
describing all such Defaults or Events of Default of which he or she may have
knowledge and what action the Company is taking or proposes to take with
respect thereto) and that, to his or her knowledge, no event has occurred and
remains in existence by reason of which payments on account of the principal
of, premium, if any, or interest on the Notes is prohibited or if such event
has occurred, a description of the event and what action the Company is taking
or proposes to take with respect thereto.

 

The
Company shall, so long as any of the Notes are outstanding, deliver to the
Trustee, forthwith upon (and in any event no later than five Business Days
after) becoming aware of any Default or Event of Default, an Officer’s
Certificate specifying such Default or Event of Default and what action the
Company is taking or proposes to take with respect thereto.

 

56

 

 

SECTION 4.5                                                       Taxes.

 

The
Company shall pay, and shall cause each of its Subsidiaries to pay, prior to
delinquency all material taxes, assessments and governmental levies, except
such as are contested in good faith and by appropriate proceedings and with respect
to which appropriate reserves have been taken in accordance with GAAP or where
the failure to effect such payment is not adverse in any material respect to
the Holders of the Notes.

 

SECTION 4.6                                                       Stay, Extension
and Usury Laws.

 

The
Company covenants (to the extent that it may lawfully do so) that it shall not
at any time insist upon, plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay, extension or usury law wherever enacted, now
or at any time hereafter in force, that may affect the covenants or the
performance of this Indenture; and the Company and each of the Guarantors (to
the extent that it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law, and covenants that it shall not, by resort to any
such law, hinder, delay or impede the execution of any power herein granted to
the Trustee, but shall suffer and permit the execution of every such power as
though no such law has been enacted.

 

SECTION 4.7                                                       Limitation on
Restricted Payments.

 

The
Company will not, and will not permit any of its Restricted Subsidiaries to,
directly or indirectly, make any Restricted Payment unless, at the time of and
after giving effect to the proposed Restricted Payment:

 

(a)                                  no Default or Event of
Default shall have occurred and be continuing or will occur as a consequence
thereof;

 

(b)                                 after giving effect to such
Restricted Payment on a pro forma basis, the Company would be permitted to
Incur at least $1.00 of additional Debt pursuant to the provisions described in
the first paragraph under Section 4.9; and

 

(c)                                  after giving effect to such
Restricted Payment on a pro forma basis, the aggregate amount expended or
declared for all Restricted Payments made on or after the Reference Date
(excluding Restricted Payments permitted by clauses (ii), (iii), (iv), (v),
(vi), (vii), (viii), (ix), (xi), (xii), and (xiii) of the next succeeding
paragraph) shall not exceed the sum (without duplication) of:

 

(1)                                  50% of the Consolidated Net
Income (or, if Consolidated Net Income shall be a deficit, minus 100% of such
deficit) of the Company accrued on a cumulative basis during the period (taken
as one accounting period) from the Reference Date and ending on the last day of
the fiscal quarter immediately preceding the date of such proposed Restricted
Payment, plus

 

57

 

(2) 100% of the aggregate net proceeds
(including the Fair Market Value of property other than cash) received by the
Company subsequent to the Reference Date either (i) as a contribution to
its common equity capital or (ii) from the issuance and sale (other than
to a Subsidiary) of its Qualified Capital Interests (excluding any Qualified
Capital Interests issued in connection with the Company’s acquisition of Vought
Aircraft Industries, Inc.), including Qualified Capital Interests issued
upon the conversion or exchange of Debt or Redeemable Capital Interests of the
Company, and from the exercise of options, warrants or other rights to purchase
such Qualified Capital Interests (other than, in each case, Capital Interests
or Debt sold to a Subsidiary of the Company), plus

 

(3)                              100% of the net reduction in
Investments (other than Permitted Investments), made by the Company or any
Restricted Subsidiary subsequent to the Reference Date, in any Person,
resulting from (i) payments of interest on Debt, dividends, repayments of
loans or advances or any sale or disposition of such Investments (but only to
the extent such items are not included in the calculation of Consolidated Net
Income), or (ii) the redesignation of an Unrestricted Subsidiary as a
Restricted Subsidiary (or the causing of a Person that is not a Subsidiary to
become a Restricted Subsidiary), not to exceed in the case of any Person the
amount of Investments previously made by the Company or any Restricted
Subsidiary in such Person subsequent to the Reference Date.

 

Notwithstanding
the foregoing provisions, the Company and its Restricted Subsidiaries may take
the following actions, provided that,
at the time of and after giving effect to the proposed Restricted Payment, no
Default or Event of Default shall have occurred and be continuing or will occur
as a consequence thereof:

 

(i)                                     the payment of
any dividend on Capital Interests in the Company or a Restricted Subsidiary or
the consummation of any irrevocable redemption within 60 days after declaration
thereof or the giving of such irrevocable notice, as applicable, if, at the
declaration date or notice thereof, such payment was permitted by the foregoing
provisions of this Section 4.7;

 

(ii)                                  the purchase,
repurchase, redemption, defeasance or other acquisition or retirement of any
Capital Interests of the Company by conversion into, or by or in exchange for,
Qualified Capital Interests, or out of Net Cash Proceeds of the substantially
concurrent sale (other than to a Subsidiary of the Company) of Qualified
Capital Interests of the Company; provided, however,
that the Net Cash Proceeds from such sale of Qualifying Capital Interests will
be excluded from clause (c)(2) of the preceding paragraph to the extent
applied to any such purchase, repurchase, redemption, defeasance or other
acquisition or retirement;

 

(iii)                               the redemption,
defeasance, repurchase or acquisition or retirement for value of any Debt of
the Company or a Guarantor that is subordinate in right of payment to the Notes
or the applicable Note Guarantee out of the Net Cash Proceeds of a 

 

58

 

substantially concurrent issue and sale (other than
to a Subsidiary of the Company) of (x) new Refinancing Debt of the Company
or such Guarantor, as the case may be, Incurred in accordance with this
Indenture or (y) Qualified Capital Interests of the Company;

 

(iv)                              the purchase,
redemption, retirement or other acquisition for value of Capital Interests in
the Company or any direct or indirect parent of the Company (or any payments to
a direct or indirect parent company of the Company for the purposes of
permitting any such repurchase) held by directors, employees, former directors
or former employees of the Company or any Restricted Subsidiary (or their
estates or beneficiaries under their estates) upon death, disability,
retirement or termination of employment or alteration of employment status or
pursuant to the terms of any agreement under which such Capital Interests were
issued; provided that the
aggregate cash consideration paid for such purchase, redemption, retirement or
other acquisition of such Capital Interests does not exceed $2.5 million
in any calendar year; provided, further, that any unused amounts in any
calendar year may be carried forward to one or more future periods subject to a
maximum aggregate amount of repurchases made pursuant to this clause (iv) not
to exceed $5.0 million in any calendar year; provided, however,
that such amount in any calendar year may be increased by an amount not to
exceed (A) the cash proceeds received by the Company or any of its
Restricted Subsidiaries from the sale of Qualified Capital Interests of the
Company or any direct or indirect parent company of the Company (to the extent
contributed to the Company) to employees of the Company and its Restricted
Subsidiaries that occurs after the Issue Date; provided,
however, that the amount of such
cash proceeds utilized for any such repurchase, retirement, other acquisition
or dividend will not increase the amount available for Restricted Payments
under clause (c) of the first paragraph of this Section 4.7;
plus (B) the cash proceeds of key man life insurance policies received by
the Company and its Restricted Subsidiaries after the Issue Date (provided, however,
that the Company may elect to apply all or any portion of the aggregate
increase contemplated by the proviso of this clause (iv) in any
calendar year and, to the extent any payment described under this clause (iv) is
made by delivery of Debt and not in cash, such payment shall be deemed to occur
only when, and to the extent, the obligor on such Debt makes payments with
respect to such Debt);

 

(v)                                 repurchase of
Capital Interests deemed to occur upon the exercise of stock options, warrants
or other convertible or exchangeable securities or the vesting of restricted
stock units;

 

(vi)                              the extension
of credit that constitutes intercompany Debt, the Incurrence of which was
permitted pursuant to Section 4.9 and pursuant to clauses (v) and (xii) of
the definition of “Permitted Debt”;

 

(vii)                           cash payment,
in lieu of issuance of fractional shares in connection with the exercise of
warrants, options or other securities convertible into or exchangeable for the
Capital Interests of the Company or a Restricted Subsidiary;

 

59

 

(viii)                        the declaration
and payment of dividends to holders of any class or series of Redeemable
Capital Interests of the Company or any Restricted Subsidiary issued or
Incurred in compliance with Section 4.9 to the extent such dividends are
included in the definition of “Consolidated Fixed Charges”;

 

(ix)                                the purchase,
repurchase, redemption, defeasance or other acquisition or retirement for value
of any Subordinated Obligation (i) at a purchase price not greater than
101% of the principal amount of such Subordinated Obligation in the event of a
change of control in accordance with provisions similar to those of Section 4.14
or (ii) at a purchase price not greater than 100% of the principal amount
thereof in accordance with provisions similar to those of Section 4.10; provided that, prior to or simultaneously with such
purchase, repurchase, redemption, defeasance or other acquisition or
retirement, the Company has made the Offer to Purchase upon a Change of Control
or Offer to Purchase to the extent provided in this Indenture with respect to
the Notes and has completed the repurchase or redemption of all Notes validly
tendered for payment in connection with such Offer to Purchase;

 

(x)                                   the payment of
regular cash quarterly dividends on the Company’s common stock not to exceed
$10.0 million in any calendar year;

 

(xi)                                other
Restricted Payments not in excess of $50.0 million in the aggregate since the
Reference Date;

 

(xii)                             any
refinancing, redemption, repayment, defeasance or purchase of the Convertible
Notes;

 

(xiii)                          any payments
made in connection with the Transactions pursuant to any agreements or
documents related to the Transactions described in the Offering Memorandum
(without giving effect to subsequent amendments, waivers or other modifications
to such agreements or documents).

 

If
the Company makes a Restricted Payment which, at the time of the making of such
Restricted Payment, in the good faith determination of the Company, would be
permitted under the requirements of this Indenture, such Restricted Payment
shall be deemed to have been made in compliance with this Indenture
notwithstanding any subsequent adjustment made in good faith to the Company’s
financial statements affecting Consolidated Net Income.

 

SECTION 4.8                                                       Limitation on
Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries.

 

The
Company will not, and will not permit any of its Restricted Subsidiaries to,
directly or indirectly, cause or suffer to exist or become effective or enter
into any encumbrance or restriction (other than pursuant to this Indenture or
any law, rule, regulation or order) on the ability of any Restricted Subsidiary
to (i) pay dividends or make any other distributions on its Capital
Interests to the Company or any Restricted Subsidiary or pay any Debt owed to
the 

 

60

 

Company
or any Restricted Subsidiary, (ii) make loans or advances to the Company
or any Restricted Subsidiary or (iii) transfer any of its property or
assets to the Company or any Restricted Subsidiary.

 

However,
the preceding restrictions will not apply to the following encumbrances or
restrictions existing under or by reason of:

 

(a)                                  any encumbrance or
restriction in existence on the Issue Date, including those under the Credit
Agreement, the Existing Receivables Facility or the Leasing Facility and any
amendments, modifications, restatements, renewals, increases, supplements,
refundings, replacements or refinancings thereof; provided
that the amendments, modifications, restatements, renewals, increases,
supplements, refundings, replacements or refinancings, in the good faith
judgment of the Company, are no more restrictive in any material respect, taken
as a whole, with respect to such dividend or other payment restrictions, than
those contained in these agreements on the Issue Date or refinancings thereof;

 

(b)                                 any encumbrance or
restriction which exists with respect to an acquired property in existence at
the time of such acquisition pursuant to an agreement, so long as the
encumbrances or restrictions in any such agreement relate solely to the
property so acquired (and are not or were not created in anticipation of or in
connection with the acquisition thereof);

 

(c)                                  any encumbrance or
restriction which exists with respect to a Person that becomes a Restricted
Subsidiary or merges with or into a Restricted Subsidiary of the Company on or
after the Issue Date, which is in existence at the time such Person becomes a
Restricted Subsidiary, but not created in connection with or in anticipation of
such Person becoming a Restricted Subsidiary, and which is not applicable to
any Person or the property or assets of any Person other than such Person or
the property or assets of such Person becoming a Restricted Subsidiary;

 

(d)                                 any encumbrance or
restriction pursuant to an agreement effecting a permitted renewal, refunding,
replacement, refinancing or extension of Debt Incurred pursuant to an agreement
containing any encumbrance or restriction referred to in the foregoing clauses (a)
through (c), so long as the encumbrances and restrictions contained in any such
refinancing agreement are no less favorable in any material respect to the
Holders than the encumbrances and restrictions contained in the agreements
governing the Debt being renewed, refunded, replaced, refinanced or extended in
the good faith judgment of the Company;

 

(e)                                  customary provisions
restricting subletting or assignment of any lease, contract, or license of the
Company or any Restricted Subsidiary or provisions in agreements that restrict
the assignment of such agreement or any rights thereunder;

 

(f)                                    any encumbrance or
restriction by reason of applicable law, rule, regulation or order;

 

61

 

(g)                                 any encumbrance or
restriction under this Indenture, the Notes and the Note Guarantees;

 

(h)                                 any encumbrance or
restriction under a contract for the sale or other disposition of assets or
Capital Interests, including, without limitation, any agreement for the sale or
other disposition of a Subsidiary, that restricts distributions of the
applicable assets or Capital Interests to be sold, or of any assets of a
Subsidiary to be sold, pending such sale or other disposition;

 

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

 

(j)                                     customary provisions with
respect to the disposition or distribution of assets or property in joint
venture agreements, asset sale agreements, stock sale agreements, sale
leaseback agreements and other similar agreements;

 

(k)                                  any restriction with respect
to the Company or a Restricted Subsidiary (or any of its property or assets)
imposed by customary provisions in Hedging Obligations or Swap Contracts, in
each case, not entered into for speculative purposes;

 

(l)                                     Purchase Money Debt and
Capital Lease Obligations permitted under this Indenture for property acquired
in the ordinary course of business that impose restrictions on that property so
acquired of the nature described in clause (iii) of the first paragraph of
this Section 4.8;

 

(m)                               Liens securing Debt
otherwise permitted to be incurred under this Indenture, including pursuant to Section 4.12,
that limit the right of the debtor to dispose of the assets subject to such
Liens;

 

(n)                                 any Non-Recourse Receivable
Subsidiary Indebtedness or other contractual requirements of a Receivable
Subsidiary that is a Restricted Subsidiary in connection with a Qualified
Receivables Transaction; provided that
such restrictions apply only to such Receivable Subsidiary or the receivables
and related assets described in the definition of Qualified Receivables
Transaction which are subject to such Qualified Receivables Transaction; and

 

(o)                                 any other agreement
governing Debt entered into after the Issue Date that contains encumbrances and
restrictions that are not materially more restrictive with respect to any
Restricted Subsidiary than those in effect on the Issue Date with respect to
that Restricted Subsidiary pursuant to agreements in effect on the Issue Date.

 

Nothing
contained in this Section 4.8 shall prevent the Company or any Restricted
Subsidiary from (i) creating, incurring, assuming or suffering to exist
any Liens otherwise permitted under Section 4.12 or (ii) restricting
the sale or other disposition of property or assets of the Company or any of
its Restricted Subsidiaries that secure Debt of the Company or any of its
Restricted Subsidiaries Incurred in accordance with Section 4.9 and Section 4.12.

 

62

 

SECTION 4.9                                                       Limitation on
Incurrence of Debt.

 

The
Company will not, and will not permit any of its Restricted Subsidiaries to, Incur
any Debt (including Acquired Debt); provided that
the Company and any of its Restricted Subsidiaries may Incur Debt (including
Acquired Debt) if, immediately after giving effect to the Incurrence of such
Debt and the receipt and application of the proceeds therefrom, (a) the
Consolidated Fixed Charge Coverage Ratio of the Company and its Restricted
Subsidiaries, determined on a pro forma basis as if any such Debt (including
any other Debt being Incurred contemporaneously), and any other Debt Incurred
since the beginning of the Four-Quarter Period (as defined below), had been
Incurred and the proceeds thereof had been applied at the beginning of the
Four-Quarter Period, and any other Debt repaid since the beginning of the
Four-Quarter Period had been repaid at the beginning of the Four-Quarter
Period, would be greater than 2.25:1 and (b) no Default or Event of
Default shall have occurred and be continuing at the time or as a consequence
of the Incurrence of such Debt; provided further,
that Restricted Subsidiaries that are not Guarantors may not Incur any Debt
pursuant to this paragraph if the Secured Leverage Ratio of the Company and its
Restricted Subsidiaries, determined on a pro forma basis as if any such Debt
(including any other Debt being Incurred contemporaneously), and any other Debt
Incurred since the beginning of the Four-Quarter Period (as defined below) had
been Incurred and the proceeds thereof had been applied at the beginning of the
Four-Quarter Period, and any other Debt repaid since the beginning of the
Four-Quarter Period had been repaid at the beginning of the Four-Quarter
Period, would be greater than 3.0:1.

 

Notwithstanding
the immediately preceding paragraph, the Company and its Restricted
Subsidiaries may Incur Permitted Debt.

 

For
purposes of determining any particular amount of Debt under this Section 4.9,
Guarantees or obligations with respect to letters of credit supporting Debt
otherwise included in the determination of such particular amount shall not be
included. For purposes of determining compliance with this Section 4.9, in
the event that an item of Debt meets the criteria of more than one of the types
of Debt described above, including categories of Permitted Debt and under part (a) in
the first paragraph of this Section 4.9, the Company, in its sole
discretion, shall classify, and from time to time may reclassify, all or any
portion of such item of Debt, provided that
Debt Incurred under the Credit Facilities on the Issue Date shall at all times
be treated as Incurred pursuant to clause (i) of the definition of “Permitted
Debt”.  The accrual of interest, the
accretion or amortization of original issue discount and the payment of
interest on Debt in the form of additional Debt or payment of dividends on
Capital Interests in the forms of additional shares of Capital Interests with
the same terms will not be deemed to be an Incurrence of Debt or issuance of
Capital Interests for purposes of this Section 4.9.

 

SECTION 4.10                                                 Limitation on
Asset Sales.

 

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

 

63

 

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

 

(2)                                  at least 75% of
the consideration received in the Asset Sale by the Company or such Restricted
Subsidiary is in the form of cash or Eligible Cash Equivalents.  For purposes of this provision, each of the
following will be deemed to be cash:

 

(a)                                  any liabilities, as shown on
the most recent consolidated balance sheet of the Company or any Restricted
Subsidiary (other than contingent liabilities and liabilities that are by their
terms subordinated to the Notes or any Note Guarantee) that are assumed by the
transferee of any such assets pursuant to a customary assignment and assumption
agreement that releases the Company or such Restricted Subsidiary from further
liability; and

 

(b)                                 any securities, notes or
other obligations received by the Company or any such Restricted Subsidiary
from such transferee that are converted by the Company or such Restricted
Subsidiary into cash within 180 days of their receipt to the extent of the cash
received in that conversion.

 

Within
360 days after the receipt of any Net Cash Proceeds from an Asset Sale, the
Company (or the applicable Restricted Subsidiary, as the case may be) may apply
such Net Cash Proceeds at its option:

 

(1)                                            to prepay,
repay, redeem or purchase any secured Debt (other than Subordinated
Obligations) of the Company or any Restricted Subsidiary and cause such Debt to
be permanently retired and the related commitment (if any) to be permanently
reduced in an amount equal to the principal amount so prepaid, repaid, redeemed
or repurchased;

 

(2)                                            to prepay,
repay, redeem or purchase any unsecured Debt (other than Subordinated
Obligations) of the Company or any Restricted Subsidiary and cause such Debt to
be permanently retired and the related commitment (if any) to be permanently
reduced in an amount equal to the principal amount so prepaid, repaid, redeemed
or repurchased; provided that to the extent the
Company repays any such Debt, the Company shall equally and ratably repay the
Notes as provided in Section 3.7, through open-market purchases (to the
extent such purchases are at or above 100% of the principal amount thereof) or
by making an Offer to Purchase (in accordance with the procedures relating to
Asset Sales set forth in this Section 4.10) to all Holders of Notes to
purchase their Notes at 100% of the principal amount thereof, plus accrued but
unpaid interest to the date of purchase;

 

(3)                                            to acquire all
or substantially all of the assets of, or any Capital Interests of, another
Permitted Business, if, after giving effect to any such acquisition of Capital
Interests, the Permitted Business is or becomes a Restricted Subsidiary of the
Company;

 

64

 

(4)                                            to make a
capital expenditure in or that is used or useful (as determined in the good
faith judgment of the Company) in a Permitted Business or to make expenditures
for maintenance, repair or improvement of existing properties and assets in
accordance with the provisions of the Indenture;

 

(5)                                            to acquire
other assets that are not classified as current assets under GAAP and that are
used or useful (as determined in the good faith judgment of the Company) in a
Permitted Business; or

 

(6)                                            any combination
of the foregoing.

 

Any
Net Cash Proceeds from Asset Sales that are not applied or invested as provided
in the preceding paragraph of this Section 4.10 will constitute “Excess Proceeds.” 
When the aggregate amount of Excess Proceeds exceeds $10.0 million, the
Company will, within 30 days, make an Offer to Purchase to all Holders of Notes
(on a pro rata basis to each series of Notes),
and to all holders of other Debt ranking pari passu with
the Notes containing provisions similar to those set forth in this Indenture
with respect to assets sales, in an amount equal to the Excess Proceeds.  The offer price in any Offer to Purchase will
be equal to 100% of the principal amount plus accrued and unpaid interest to
the date of purchase, and will be payable in cash.  If any Excess Proceeds remain after
consummation of an Offer to Purchase, the Company may use those funds for any
purpose not otherwise prohibited by this Indenture and they will no longer
constitute Excess Proceeds.  If the
aggregate principal amount of Notes and other pari
passu Debt tendered into such Offer to
Purchase exceeds the amount of Excess Proceeds, the Trustee will select the
Notes to be purchased on a pro rata basis
among each series.  Upon completion of
each Offer to Purchase, the amount of Excess Proceeds will be reset at zero.

 

Pending
the final application of any Net Cash Proceeds pursuant to this covenant, such
Net Cash Proceeds may be applied temporarily to reduce Indebtedness outstanding
under a revolving credit facility or may otherwise be invested in any manner
not prohibited by the Indenture.

 

The
Company will comply with the requirements of Rule 14e-1 under the Exchange
Act and any other applicable securities laws and regulations thereunder to the
extent those laws and regulations are applicable in connection with each
repurchase of Notes pursuant to an Offer to Purchase.  To the extent that the provisions of any
securities laws or regulations conflict with the Asset Sale provisions of this
Indenture, the Company will comply with the applicable securities laws and
regulations and will be deemed to have complied with its obligations under the
Asset Sale provisions of this Indenture by virtue of such compliance.

 

SECTION 4.11                                                 Limitation on
Transactions with Affiliates.

 

The
Company will not, and will not permit any of its Restricted Subsidiaries to,
directly or indirectly, make any payment to, or sell, lease, transfer or
otherwise dispose of any of its properties or assets to, or purchase any
property or assets from, or enter into or make or amend any transaction or
series of related transactions, contract, agreement, loan, advance or Guarantee

 

65

 

with,
or for the benefit of, any Affiliate of the Company (each of the foregoing, an “Affiliate Transaction”), unless:

 

(i)                                     such Affiliate
Transaction is on terms that are not materially less favorable to the Company
or the relevant Subsidiary than those that could reasonably have been obtained
in a comparable arm’s length transaction by the Company or such Subsidiary with
a Person who is not an Affiliate;

 

(ii)                                  with respect to
any Affiliate Transaction or series of related Affiliate Transactions involving
aggregate consideration in excess of $5.0 million, the Company delivers to the
Trustee a resolution adopted in good faith by the majority of the Board of
Directors of the Company approving such Affiliate Transaction and set forth in
an Officer’s Certificate certifying that such Affiliate Transaction complies
with clause (i) above; and

 

(iii)                               with respect to
any Affiliate Transaction or series of related Affiliate Transactions involving
aggregate consideration in excess of $15.0 million, the Company must obtain and
deliver to the Trustee a written opinion of a nationally recognized investment
banking, accounting or appraisal firm (an “Independent Financial
Advisor”) stating that the transaction is fair to the Company or
such Restricted Subsidiary, as the case may be, from a financial point of view.

 

The
foregoing limitation does not limit, and shall not apply to:

 

(1)                                  Restricted
Payments that are permitted by the provisions of this Indenture pursuant to Section 4.7
and Investments permitted pursuant to the definition of Permitted Investments
(other than pursuant to clause (f) of such definition);

 

(2)                                  the payment of
reasonable and customary fees and indemnities and other benefits to members of
the Board of Directors of the Company or a Restricted Subsidiary who are
outside directors;

 

(3)                                  the payment of
reasonable and customary compensation and other benefits (including retirement,
health, option, deferred compensation and other benefit plans) and indemnities
to officers and employees of the Company or any Restricted Subsidiary as
determined by the Board of Directors thereof in good faith;

 

(4)                                  transactions
between or among the Company and/or its Restricted Subsidiaries;

 

(5)                                  any agreement
or arrangement as in effect on the Issue Date and any amendment, modification
thereto so long as such amendment or modification is not more disadvantageous
to the Holders of the Notes in any material respect, including, without
limitation, (i) transactions with Triumph Receivables, LLC in connection
with the Existing Receivables Facility and (ii) transactions with Carlyle
as set forth in Note 15 to 

 

66

 

the Interim Unaudited Condensed Consolidated
Financial Statements of Vought Aircraft Industries, Inc. for the quarter ended
March 28, 2010, incorporated by reference in the Offering Memorandum from
Vought Aircraft Industries, Inc.’s Quarterly Report on Form 10-Q for
the quarterly period ended March 28, 2010.

 

(6)                                  any
contribution of capital to the Company;

 

(7)                                  transactions
permitted by, and complying with, Section 5.1;

 

(8)                                  any transaction
with a joint venture, partnership, limited liability company or other entity
(other than an Unrestricted Subsidiary) that would constitute an Affiliate
Transaction solely because the Company or a Restricted Subsidiary owns an
equity interest in such joint venture, partnership, limited liability company
or other entity;

 

(9)                                  transactions
with customers, clients, suppliers or purchasers or sellers of goods or
services, in each case, in the ordinary course of business and consistent with
past practice and on terms that are not materially less favorable to the
Company or such Restricted Subsidiary, as the case may be, as determined in
good faith by the Company, than those that could be obtained in a comparable
arm’s length transaction with a Person that is not an Affiliate of the Company;
and

 

(10)                            transactions
effected as part of a Qualified Receivables Transaction.

 

SECTION 4.12                                                 Limitation on
Liens.

 

The
Company will not, and will not permit any of its Restricted Subsidiaries to
create, incur, assume or otherwise cause or suffer to exist or become effective
any Lien of any kind securing Debt (other than Permitted Liens) upon any of
their property or assets, now owned or hereafter acquired, unless all payments
due under the Indenture and the Notes are secured on an equal and ratable basis
with the obligations so secured (or in the case of Subordinated Obligations,
prior or senior thereto, with the same relative priority as the Notes shall have
with respect to such Subordinated Obligations) until such time as such
obligations are no longer secured by a Lien. 
For purposes of this Section 4.12, the Receivables Transaction
Amount relating to any Qualified Receivables Transaction shall be deemed to be
Debt secured by a Lien on the applicable accounts receivable and related assets
and such accounts receivable and related assets shall be deemed to be assets of
the originator thereof.

 

SECTION 4.13                                                 Limitation on
Sale and Leaseback Transactions.

 

The
Company will not, and will not permit any of its Restricted Subsidiaries to,
enter into any Sale and Leaseback Transaction unless:

 

(i)                                     the
consideration received in such Sale and Leaseback Transaction is at least equal
to the Fair Market Value of the property sold

 

67

 

 

(ii)                                  prior to and
after giving effect to the Attributable Debt in respect of such Sale and
Leaseback Transaction, the Company and such Restricted Subsidiary comply with Section 4.9,
and

 

(iii)                               at or after
such time the Company and such Restricted Subsidiary also comply with Section 4.10.

 

SECTION 4.14                                                 Offer to
Purchase upon Change of Control.

 

Upon
the occurrence of a Change of Control, the Issuer will make an Offer to
Purchase (the “Change of Control Offer”) all of
the outstanding Notes at a Purchase Price in cash equal to 101% of the
principal amount tendered, together with accrued interest, if any, to but not
including the Purchase Date (the “Change of Control Payment”),
provided, that if the Company has
exercised its right to redeem all of the Notes pursuant to Section 3.7
prior to the time the Company would be required to make a Change of Control
Offer, the Company shall not be required to make a Change of Control
Offer.  For purposes of the foregoing, an
Offer to Purchase shall be deemed to have been made if (i) within 60 days
following the date of the consummation of a transaction or series of
transactions that constitutes a Change of Control, the Issuer commences an
Offer to Purchase all outstanding Notes at the Purchase Price and (ii) all
Notes properly tendered pursuant to the Offer to Purchase are purchased on the
terms of such Offer to Purchase.

 

The
Change of Control provisions described above will be applicable whether or not
any other provisions of this Indenture are applicable.  Except as described above with respect to a
Change of Control, this Indenture does not contain provisions that permit the
Holders to require that the Issuer repurchase or redeem the Notes in the event
of a takeover, recapitalization or similar transaction.

 

In
the event that at the time of a Change of Control the terms of the Credit
Agreement restrict or prohibit the repurchase of Notes as contemplated herein,
then prior to the electronic delivery or mailing of the Offer to Purchase
required in connection with a Change of Control but in any event within 30 days
following any Change of Control, the Company shall (i) repay in full all
Debt under the applicable Credit Agreement or, if doing so will allow the
purchase of Notes, offer to repay in full all such Debt and repay such Debt of
each lender who has accepted such offer, or (ii) obtain the requisite
consent under the Credit Agreement to permit the repurchase of the Notes as
provided in the Indenture.

 

The
Issuer will not be required to make a Change of Control Offer if (i) a
third party makes such Change of Control Offer in the manner, at the times and
otherwise in compliance with the requirements set forth herein
contemporaneously with or upon a Change of Control and purchases all Notes
validly tendered and not withdrawn under such Change of Control Offer or (ii) a
notice of redemption has been given pursuant to Section 3.7.

 

To
the extent that the provisions of any securities laws or regulations conflict
with the Change of Control provisions of this Indenture, the Issuer will comply
with the applicable 

 

68

 

securities
laws and regulations and will not be deemed to have breached their obligations
under the Change of Control provisions of this Indenture by virtue of such conflict.

 

In
addition, an Offer to Purchase may be made in advance of a Change of Control,
conditional upon the occurrence of such Change of Control, if a definitive
agreement is in place for the Change of Control at the time of launching the
Offer to Purchase.

 

SECTION 4.15                                                 Corporate
Existence.

 

Subject
to Section 4.14 and Article V hereof, as the case may be, the Company
shall do or cause to be done all things necessary to preserve and keep in full
force and effect its corporate existence and the corporate, partnership,
limited liability company or other existence of each of its Subsidiaries in
accordance with the respective organizational documents (as the same may be
amended from time to time) of the Company or any such Subsidiary and the rights
(charter and statutory), licenses and franchises of the Company and its
Subsidiaries; provided that the Company shall
not be required to preserve any such right, license or franchise, or the
corporate, partnership or other existence of any of its Subsidiaries, if the
Board of Directors of the Company shall determine that the preservation thereof
is no longer desirable in the conduct of the business of the Company and its
Subsidiaries, taken as a whole, and that the loss thereof is not adverse in any
material respect to the Holders.

 

SECTION 4.16                                                 Business
Activities.

 

The
Issuer will not, and will not permit any Restricted Subsidiary to, engage in
any business other than a Permitted Business.

 

SECTION 4.17                                                 Additional Note
Guarantees.

 

On
the Issue Date, each of the Guarantors will Guarantee the Notes in the manner
and on the terms set forth in Article X hereof.

 

After
the Issue Date, the Company will cause each of its domestic Restricted
Subsidiaries (other than any domestic Restricted Subsidiary that is a
Receivables Subsidiary) that (1) is a borrower under any Credit Facility
or (2) Guarantees any Debt of the Company or any of its domestic
Restricted Subsidiaries incurred under any Credit Facility to Guarantee the
Notes.

 

Each
Note Guarantee will be limited to an amount not to exceed the maximum amount
that can be Guaranteed by that Restricted Subsidiary without rendering the
Guarantee, as it relates to such Restricted Subsidiary, voidable under
applicable law relating to fraudulent conveyance or fraudulent transfer or
similar laws affecting the rights of creditors generally.

 

Each
Guarantee will be released pursuant to Section 10.6 and 10.7.

 

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SECTION 4.18                                                 Limitation on
Creation of Unrestricted Subsidiaries.

 

Triumph
Receivables, LLC, Triumph Group Charitable Foundation, Triumph Interiors, Ltd,
Saygrove Actuation & Motion Control Limited and Airframe Spares &
Logistics GmbH will be Unrestricted Subsidiaries on the Issue Date. After the
Issue Date, the Company may designate any other Subsidiary of the Company to be
an “Unrestricted Subsidiary” as provided below, in which event such Subsidiary
and each other Person that is then or thereafter becomes a Subsidiary of such
Subsidiary will be deemed to be an Unrestricted Subsidiary.

 

The
Company may designate any Subsidiary (including any newly acquired or newly
formed Subsidiary or a Person becoming a Subsidiary through merger or
consolidation or Investment therein) to be an Unrestricted Subsidiary after the
Issue Date only if:

 

(i)                                     neither the
Company nor any of its Restricted Subsidiaries:

 

(A)                              provides credit
support for, or Guarantee of, any Debt of such Subsidiary or any Subsidiary of
such Subsidiary (including any undertaking, agreement or instrument evidencing
such Debt, but excluding, in the case of a Receivable Subsidiary, any Standard
Securitization Undertakings);

 

(B)                            is directly or
indirectly liable for any Debt of such Subsidiary or any Subsidiary of such
Subsidiary (except, in the case of a Receivable Subsidiary any Standard
Securitization Undertakings); or

 

(C)                                has any direct
or indirect obligation to maintain or preserve such Person’s financial
condition or to cause such Person to achieve any specified levels of operating
results, including by way of subscription for additional Capital Interests of
such Person;

 

(ii)                                  such Subsidiary
does not own any Capital Interests of, or own or hold any Lien on any property
of, any Restricted Subsidiary of the Company; and

 

(iii)                               either:

 

(x)                                   the Subsidiary
to be so designated has total assets of $1,000 or less; or

 

(y)                                 the Company
could make a Restricted Payment at the time of designation in an amount equal
to the greater of the Fair Market Value or net book value of such Subsidiary
pursuant to Section 4.7 (and such amount is thereafter treated as a
Restricted Payment for the purpose of calculating the amount available for
Restricted Payments thereunder).

 

An
Unrestricted Subsidiary may be designated as a Restricted Subsidiary if (i) all
the Debt of such Unrestricted Subsidiary could be Incurred pursuant to Section 4.9
and (ii) all the Liens on the property and assets of such Unrestricted
Subsidiary could be incurred pursuant to Section 4.12.

 

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SECTION 4.19                                                 Maintenance of
Properties; Insurance; Books and Records.

 

(a)                                  Subject to, and in
compliance with, the provisions of Article X, the Issuer shall cause all
material properties used or useful in the conduct of its business or the
business of any of the Guarantors to be maintained and kept in good operating
condition, repair and working order (ordinary wear and tear and casualty loss
excepted) and supplied with all necessary equipment and shall cause to be made
all necessary repairs, renewals, replacements, betterments and improvements
thereto; provided that the Issuer shall not be
obligated to make such repairs, renewals, replacements, betterments and
improvements that would not result in a material adverse effect on the ability
of the Issuer and the Guarantors to satisfy their obligations under the Notes,
the Guarantees and this Indenture.

 

(b)                                 The Issuer shall maintain,
and shall cause the Guarantors to maintain, insurance with responsible carriers
against such risks and in such amounts, and with such deductibles, retentions,
self-insured amounts and co-insurance provisions, as are customarily carried by
similar businesses or similar size in the locations which such business is
conducted, including property and casualty loss, workers’ compensation and
interruption of business insurance.

 

(c)                                  The Issuer shall, and shall
cause each Guarantor to, keep proper books of record and account, in which full
and correct entries shall be made of all financial transactions of the Issuer
and each of the Guarantors, in accordance with GAAP.

 

SECTION 4.20                                                 Payments for
Consent.

 

The
Company will not, and will not permit any of its Restricted Subsidiaries to,
directly or indirectly, pay or cause to be paid any consideration to or for the
benefit of any Holder of Notes for or as an inducement to any consent, waiver
or amendment of any of the terms or provisions of this Indenture or the Notes
unless such consideration is offered to be paid and is paid to all Holders of
the Notes that consent, waive or agree to amend in the time frame set forth in
the solicitation documents relating to such consent, waiver or agreement.

 

ARTICLE V

 

SUCCESSORS

 

SECTION 5.1                                                       Consolidation,
Merger, Conveyance, Transfer or Lease.

 

The
Company will not in any transaction or series of transactions, consolidate with
or merge into any other Person (other than a merger of a Restricted Subsidiary
into the Company in which the Company is the continuing Person), or sell,
assign, convey, transfer, lease or otherwise dispose of all or substantially
all of the assets of the Company and its Restricted Subsidiaries (determined on
a consolidated basis), taken as a whole, to any other Person, unless:

 

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(i)                                     either:  (a) the Company shall be the continuing
Person or (b) the Person (if other than the Company) formed by such
consolidation or into which the Company is merged, or the Person that acquires,
by sale, assignment, conveyance, transfer, lease or other disposition, all or
substantially all of the property and assets of the Company (such Person, the “Surviving Entity”), (1) shall be a corporation,
partnership, limited liability company or similar entity organized and validly
existing under the laws of the United States, any political subdivision thereof
or any state thereof or the District of Columbia and (2) shall expressly
assume, by a supplemental indenture, the due and punctual payment of all
amounts due in respect of the principal of (and premium, if any) and interest
on all the Notes and the performance of the covenants and obligations of the
Company under this Indenture and the Registration Rights Agreement; provided that at any time the Company or its Successor
Entity is not a corporation, there shall be a co-issuer of the Notes that is a
corporation;

 

(ii)                                  immediately
after giving effect to such transaction or series of transactions on a pro  forma basis
(including, without limitation, any Debt Incurred in connection with or in
respect of such transaction or series of transactions), no Default or Event of
Default shall have occurred and be continuing or would result therefrom;

 

(iii)                               immediately
after giving effect to any such transaction or series of transactions on a pro  forma basis
(including, without limitation, any Debt Incurred in connection with or in
respect of such transaction or series of transactions) as if such transaction
or series of transactions had occurred on the first day of the determination
period, the Company (or the Surviving Entity if the Company is not continuing)
could Incur $1.00 of additional Debt under the provisions described in the
first paragraph of Section 4.9; and

 

(iv)                              the Company
delivers, or causes to be delivered, to the Trustee, in form satisfactory to
the Trustee, an Officer’s Certificate and an Opinion of Counsel, each stating
that such consolidation, merger, sale, conveyance, assignment, transfer, lease
or other disposition complies with the requirements of this Indenture.

 

Notwithstanding
the foregoing, failure to satisfy the requirements of the preceding clauses (ii) and
(iii) will not prohibit:

 

(a)                                  a merger
between the Company and a Restricted Subsidiary that is a wholly owned
Subsidiary of the Company; or

 

(b)                                 a merger
between the Company and an Affiliate incorporated solely for the purpose of
converting the Company into a Person organized under the laws of the United
States or any political subdivision or state thereof (other than its
then-current state of organization) or for the purpose of changing its form of
organization; so long as, in each case, the amount of Debt of the Company and
its Restricted Subsidiaries is not increased thereby.

 

72

 

For
all purposes of this Indenture and the Notes, Subsidiaries of any Surviving
Entity will, upon such transaction or series of transactions, become Restricted
Subsidiaries or Unrestricted Subsidiaries as provided pursuant to this
Indenture and all Debt, and all Liens on property or assets, of the Surviving
Entity and its Subsidiaries that was not Debt, or were not Liens on property or
assets, of the Company and its Subsidiaries immediately prior to such
transaction or series of transactions shall be deemed to have been Incurred
upon such transaction or series of transactions.

 

Upon
any transaction or series of transactions that are of the type described in,
and are effected in accordance with, the conditions described in the
immediately preceding paragraphs, the Surviving Entity (if other than the
Company) shall succeed to, and be substituted for, and may exercise every right
and power of, the Company, under this Indenture with the same effect as if such
Surviving Entity had been named as the Company therein; and when a Surviving
Entity duly assumes all of the obligations and covenants of the Company
pursuant to the Indenture and the Notes, except in the case of a lease of all
or substantially all of the Company’s assets, the predecessor Person shall be
relieved of all such obligations.

 

SECTION 5.2                                                       Successor
Person Substituted.

 

Upon
any consolidation or merger, or any sale, assignment, conveyance, transfer,
lease or other disposition of all or substantially all of the assets of the
Company in accordance with Section 5.1 hereof, the successor corporation
formed by such consolidation or into or with which the Company (and, if
necessary, any co-issuer) is merged or to which such sale, assignment,
conveyance, transfer, lease or other disposition is made shall succeed to, and
be substituted for (so that from and after the date of such consolidation,
merger, sale, lease, conveyance or other disposition, the provisions of this
Indenture referring to the “Company” shall refer instead to the successor
corporation and not to the Company), and shall exercise every right and power
of, the Company under this Indenture with the same effect as if such successor
Person had been named as the Company herein; provided,
however, that in the event of a transfer
or lease, the predecessor shall not be released from the payment of principal
and interest or other obligations on the Notes.

 

ARTICLE VI

 

DEFAULTS AND REMEDIES

 

SECTION 6.1                                                       Events of
Default.

 

Each
of the following constitutes an “Event of Default”:

 

(1)                                  default in the
payment in respect of the principal of (or premium, if any, on) any Note when
due and payable (whether at Stated Maturity or upon repurchase, acceleration,
optional redemption or otherwise);

 

73

 

(2)                                  default in the
payment of any interest upon any Note when it becomes due and payable, and
continuance of such default for a period of 30 days;

 

(3)                                  except as
permitted by this Indenture, any Note Guarantee of any Significant Subsidiary
required to be a Guarantor pursuant to this Indenture (or any group of
Restricted Subsidiaries required to be Guarantors pursuant to this Indenture
that, taken together, would constitute a Significant Subsidiary) shall for any
reason cease to be, or it shall be asserted by any Guarantor or the Company not
to be, in full force and effect and enforceable in accordance with its terms;

 

(4)                                  default in the
performance, or breach, of any covenant or agreement (including the Company’s
obligations pursuant to Section 4.14) of the Company or any Guarantor in
this Indenture (other than a covenant or agreement a default in whose
performance or whose breach is addressed in clauses (1), (2), or (3) 
above), and continuance of such default or breach for a period of 60 days after
written notice thereof has been given to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least 25% in aggregate principal
amount of the outstanding Notes;

 

(5)                                  a default or
defaults under any bonds, debentures, notes or other evidences of Debt (other
than the Notes) by the Company or any Restricted Subsidiary having,
individually or in the aggregate, a principal or similar amount outstanding of
at least $25.0 million, whether such Debt now exists or shall hereafter be
created, which default or defaults (A) shall have resulted in the
acceleration of the maturity of such Debt prior to its express maturity or (B) shall
constitute a failure to pay principal of at least $25.0 million on such Debt
when due and payable after the expiration of any applicable grace period with
respect thereto;

 

(6)                                  the entry
against the Company or any Restricted Subsidiary that is a Significant
Subsidiary of a final judgment or final judgments for the payment of money in
an aggregate amount in excess of $25.0 million, by a court or courts of
competent jurisdiction, which judgments remain undischarged, unwaived,
unstayed, unbonded or unsatisfied for a period of 60 consecutive days; or

 

(7)                                  (i) the
Company, any Restricted Subsidiary that is a Significant Subsidiary or any
group of Restricted Subsidiaries that, taken as a whole, would constitute a
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 all or substantially all of its property,

 

74

 

(d)                                 makes a general assignment
for the benefit of its creditors, or

 

(e)                                  generally is not paying its
debts as they become due; or

 

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

 

(a)                                  is for relief against the
Company or any Restricted Subsidiary that is a Significant Subsidiary or any
group of Restricted Subsidiaries that, taken together, would constitute a
Significant Subsidiary, in an involuntary case;

 

(b)                                 appoints a custodian of the
Company or any Restricted Subsidiary that is a Significant Subsidiary or any
group of Restricted Subsidiaries that, taken together, would constitute a
Significant Subsidiary or for all or substantially all of the property of the
Company or any of its Restricted Subsidiaries; or

 

(c)                                  orders the liquidation of
the Company or any Restricted Subsidiary that is a Significant Subsidiary or
any group of Restricted Subsidiaries that, taken together, would constitute a
Significant Subsidiary

 

and the order or decree remains unstayed and in
effect for 60 consecutive days.

 

SECTION 6.2                                                       Acceleration.

 

If
an Event of Default (other than an Event of Default specified in clause (7) of
Section 6.1 with respect to the Company) occurs and is continuing, then
and in every such case the Trustee or the Holders of not less than 25% in
aggregate principal amount of the outstanding Notes may declare the principal
of the Notes and any accrued interest on the Notes to be due and payable
immediately by a notice in writing to the Company (and to the Trustee if given
by Holders); provided, however,
that after such acceleration, but before a judgment or decree based on
acceleration, the Holders of a majority in aggregate principal amount of the
outstanding Notes may, under certain circumstances, rescind and annul such
acceleration if all Events of Default (other than the nonpayment of accelerated
principal of, premium, if any, or interest on the Notes) have been cured or
waived as provided in this Indenture.

 

In
the event of a declaration of acceleration of the Notes solely because an Event
of Default described in clause (5) of Section 6.1 has occurred and is
continuing, the declaration of acceleration of the Notes shall be automatically
rescinded and annulled if the event of default or payment default triggering
such Event of Default pursuant to clause (5) of Section 6.1 shall be
remedied or cured by the Company or a Restricted Subsidiary of the Company or
waived by the holders of the relevant Debt within 20 Business Days after the
declaration of acceleration with respect thereto and if the rescission and
annulment of the acceleration of the Notes would not conflict with any judgment
or decree of a court of competent jurisdiction obtained by the Trustee for the
payment of amounts due on the Notes.

 

75

 

If
an Event of Default specified in clause (7) of Section 6.1 occurs
with respect to the Company, the principal of and any accrued interest on the
Notes then outstanding shall ipso facto become immediately due and payable
without any declaration or other act on the part of the Trustee or any
Holder.  The Trustee may withhold from
Holders notice of any Default (except Default in payment of principal of,
premium, if any, and interest) if the Trustee determines that withholding
notice is in the best interests of the Holders.

 

No
Holder of any Note will have any right to institute any proceeding with respect
to this Indenture or for any remedy thereunder, unless such Holder shall have
previously given to the Trustee written notice of a continuing Event of Default
and unless also the Holders of at least 25% in aggregate principal amount of
the outstanding Notes shall have made written request to the Trustee, and
provided indemnity reasonably satisfactory to the Trustee, to institute such
proceeding as Trustee, and the Trustee shall not have received from the Holders
of a majority in aggregate principal amount of the outstanding Notes a
direction inconsistent with such request and shall have failed to institute
such proceeding within 60 days.  Such
limitations do not apply, however, to a suit instituted by a Holder of a Note
directly (as opposed to through the Trustee) for enforcement of payment of the
principal of (and premium, if any) or interest on such Note on or after the
respective due dates expressed in such Note.

 

SECTION 6.3                                                       Other Remedies.

 

If
an Event of Default occurs and is continuing, the Trustee may pursue any
available remedy to collect the payment of principal, premium, if any, interest
on the Notes or to enforce the performance of any provision of the Notes or
this Indenture.

 

The
Trustee may maintain a proceeding even if it does not possess any of the Notes
or does not produce any of them in the proceeding.  A delay or omission by the Trustee or any
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.  All remedies
are cumulative to the extent permitted by law.

 

Pursuant
to Section 4.4, the Company is required to deliver to the Trustee annually
a statement regarding compliance with this Indenture, and the Company is
required upon (and in any event no later than five Business Days after)
becoming aware of any Default or Event of Default, to deliver to the Trustee a
statement specifying such Default or Event of Default.

 

SECTION 6.4                                                       Waiver of Past
Defaults.

 

The
Holders of a majority in aggregate principal amount of the Notes then
outstanding by notice to the Trustee may on behalf of the Holders of all of the
Notes waive any existing Default or Event of Default and its consequences under
this Indenture except a continuing Default or Event of Default in the payment
of interest on, or the principal of, the Notes (other than as a result of an
acceleration), which shall require the consent of all of the Holders of the
Notes then outstanding.

 

76

 

 

SECTION 6.5                  Control by Majority.

 

The
Holders of a majority in aggregate principal amount of the then outstanding
Notes may direct the time, method and place of conducting any proceeding for
exercising any remedy available to the Trustee or exercising any trust power
conferred on it.  However, (i) the
Trustee may refuse to follow any direction that conflicts with law or this
Indenture, that the Trustee determines may be unduly prejudicial to the rights
of other Holders or that may involve the Trustee in personal liability, and (ii) the
Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

 

SECTION 6.6                  Limitation on Suits.

 

A
Holder may pursue a remedy with respect to this Indenture or the Notes only if:

 

(a)           the Holder gives to the Trustee written notice of a
continuing Event of Default or the Trustee receives such notice from the
Company;

 

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

 

(c)           such Holder or Holders offer and, if requested,
provide to the Trustee indemnity or security reasonably satisfactory to the
Trustee against any loss, liability or expense which might be incurred by it in
compliance with such request or directive;

 

(d)           the Trustee does not comply with the request within
60 days after receipt of the request and the offer and, if requested, the
provision of such indemnity or security; and

 

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

 

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

 

SECTION 6.7                  Rights of Holders of Notes
to Receive Payment.

 

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

 

SECTION 6.8                  Collection Suit by Trustee.

 

If
an Event of Default specified in Section 6.1(1) or (2) hereof
occurs and is continuing, the Trustee is authorized to recover judgment in its
own name and as trustee of an express trust 

 

77

 

against
the Issuer for the whole amount of principal of, premium and interest remaining
unpaid on the Notes and interest on overdue principal and, to the extent
lawful, interest and such further amount as shall be sufficient to cover the costs
and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.

 

SECTION 6.9                  Trustee May File Proofs
of Claim.

 

The
Trustee is authorized to file such proofs of claim and other papers or
documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel) and the
Holders allowed in any judicial proceedings relative to the Issuer (or any
other obligor upon the Notes), its creditors or its property and shall be
entitled and empowered to collect, receive and distribute any money or other
securities or property payable or deliverable upon the conversion or exchange
of the Notes or on any such claims and any custodian in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee, and in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due to it
for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.7
hereof.  To the extent that the payment
of any such compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due the Trustee under Section 7.7
hereof out of the estate in any such proceeding, shall be denied for any
reason, payment of the same shall be secured by a lien on, and shall be paid
out of, any and all distributions, dividends, money, securities and other
properties that the Holders may be entitled to receive in such proceeding
whether in liquidation or under any plan of reorganization or arrangement or
otherwise.  Nothing herein contained
shall be deemed to authorize the Trustee to authorize or consent to or accept
or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Notes or the rights of any Holder, or
to authorize the Trustee to vote in respect of the claim of any Holder in any
such proceeding.

 

SECTION 6.10                Priorities.

 

Any
money collected by the Trustee pursuant to this Article VI and any money
or other property distributable in respect of the Company’s obligations under
this Indenture after an Event of Default shall be applied in the following
order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money on account of principal (or premium, if any) or
interest, if any, upon presentation of the Notes and the notation thereon of
the payment if only partially paid and upon surrender thereof if fully paid:

 

First:  to the
Trustee (including any predecessor Trustee), its agents and attorneys for
amounts due under Section 7.7 hereof, including payment of all reasonable
compensation, expense and liabilities incurred, and all advances made, by the
Trustee and the costs and expenses of collection;

 

78

 

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

 

Third:  to the
Issuer or to such party as a court of competent jurisdiction shall direct.

 

The
Trustee may fix a record date and payment date for any payment to Holders
pursuant to this Section 6.10.

 

SECTION 6.11                Undertaking for Costs.

 

In
any suit for the enforcement of any right or remedy under this Indenture or in
any suit against the Trustee for any action taken or omitted by it as a
Trustee, a court in its discretion may require the filing by any party litigant
in the suit of an undertaking to pay the costs of the suit, and the court in
its discretion may assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in the suit, having due regard to the merits
and good faith of the claims or defenses made by the party litigant.  This Section 6.11 does not apply to a
suit by the Trustee, a suit by a Holder pursuant to Section 6.7 hereof, or
a suit by Holders of more than 10% in principal amount of the then outstanding
Notes.

 

ARTICLE VII

 

TRUSTEE

 

SECTION 7.1                  Duties of Trustee.

 

(a)           If an Event of Default has occurred and is
continuing, the Trustee shall exercise such of the rights and powers vested in
it by this Indenture, and 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 his or her own affairs.

 

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

 

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

 

(ii)           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 be under a duty to examine the certificates 

 

79

 

and opinions specifically
required to be furnished to it to determine whether or not they conform to the
requirements of this Indenture (but need not confirm or investigate the
accuracy of mathematical calculations or other facts or conclusions stated
therein).

 

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

 

(i)            this paragraph does not
limit the effect of paragraphs (b) or (e) of this Section 7.1;

 

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

 

(iii)          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 6.5 hereof.

 

(d)           Whether or not therein expressly so provided, every
provision of this Indenture that in any way relates to the Trustee is subject
to paragraphs (a), (b), (c), (e) and (f) of this Section 7.1.

 

(e)           No provision of this Indenture shall require the
Trustee to expend or risk its own funds or incur any liability.  The Trustee shall be under no obligation to
exercise any of its rights and powers under this Indenture at the request of
any Holder, unless such Holder shall have offered to the Trustee security and
indemnity satisfactory to it against any loss, liability or expense.

 

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

 

(g)           The Trustee shall not be charged with knowledge of
any Event of Default unless either (1) a Responsible Officer shall have
actual knowledge of such Event of Default or (2) written notice of such
Event of Default shall have been received by a Responsible Officer in
accordance with the provisions of this Indenture.

 

SECTION 7.2                  Rights of Trustee.

 

(a)           The Trustee, as Trustee and acting in each of its
capacities hereunder, may conclusively rely and shall be fully protected in
acting or refraining from acting 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 any such document.

 

80

 

(b)           Before the Trustee acts or refrains from acting, it
may require an Officer’s Certificate or an Opinion of Counsel or both.  The Trustee shall not be liable for any
action it takes or omits to take in good faith in reliance on such Officer’s
Certificate or Opinion of Counsel.  The
Trustee may consult with counsel of the Trustee’s own choosing and the Trustee
shall be fully protected from liability in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance on the advice
or opinion of such counsel or on any Opinion of Counsel.

 

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

 

(d)           The Trustee shall not be liable for any action it
takes or omits to take in good faith that it believes to be authorized or
within the rights or powers conferred upon it by this Indenture.  Any request or direction of the Issuer
mentioned herein shall be sufficiently evidenced by an Officer’s Certificate
and any resolution of the Board of Directors may be sufficiently evidenced by a
Board Resolution.  Whenever in the
administration of this Indenture the Trustee shall deem it desirable that a
matter be proved or established prior to taking, suffering or omitting any
action hereunder, the Trustee (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, conclusively rely
upon an Officer’s Certificate.

 

(e)           Unless otherwise specifically provided in this
Indenture, any demand, request, direction or notice from the Company or a
Guarantor shall be sufficient if signed by an Officer of the Company or such
Guarantor.

 

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

 

(g)           The Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness or other paper or
documents, but the Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee
shall determine to make such further inquiry or investigation, it shall be
entitled to examine during normal business hours the books, records and
premises of the Company or any Guarantor, personally or by agent or attorney at
the sole cost of the Company, and shall incur no liability or additional
liability of any kind by reason of such inquiry or investigation.

 

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

 

81

 

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

 

SECTION 7.3                  Individual Rights of Trustee.

 

The
Trustee in its individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Issuer or any Affiliate of the Issuer
with the same rights it would have if it were not Trustee.  However, in the event that the Trustee
acquires any conflicting interest as defined in Section 310(b) of the
TIA, it must eliminate such conflict within 90 days, apply to the Commission
for permission to continue as Trustee or resign.  Any Agent may do the same with like rights
and duties.  The Trustee is also subject
to Sections 7.10 and 7.11 hereof.

 

SECTION 7.4                  Trustee’s Disclaimer.

 

The
Trustee shall not be responsible for and makes no representation as to the
validity or adequacy of this Indenture or the Notes, and it shall not be
accountable for the Issuer’s use of the proceeds from the Notes or any money
paid to the Issuer’s or upon the Issuer’s direction under any provision of this
Indenture, it shall not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee, and it shall not be
responsible for any statement or recital herein or any statement in the Notes,
any statement or recital in any document in connection with the sale of the
Notes or pursuant to this Indenture other than its certificate of
authentication on the Notes.

 

SECTION 7.5                  Notice of Defaults.

 

If
a Default occurs and is continuing and if it is actually known to a Responsible
Officer of the Trustee, the Trustee shall send electronically or mail to
Holders a notice of the Default within 90 days after it occurs.  Except in the case of a Default in payment of
principal of, premium, if any, or interest on any Note, the Trustee may withhold
the notice if and so long as the Trustee in good faith determines that
withholding the notice is in the interests of the Holders.

 

SECTION 7.6                  Reports by Trustee to
Holders of the Notes.

 

Within
60 days after each February 1 beginning with the February 1, 2011,
and for so long as Notes remain outstanding, the Trustee shall send to the
Holders a brief report dated as of such reporting date that complies with TIA §
313(a) (but if no event described in TIA § 313(a) has occurred within
the twelve months preceding the reporting date, no report need be
transmitted).  The Trustee also shall
comply with TIA § 313(b).  The Trustee
shall also transmit by mail all reports as required by TIA § 313(c).

 

82

 

A
copy of each report at the time of its delivery to the Holders shall be mailed
or delivered to the Company and filed with the Commission and each stock
exchange on which the Company has informed the Trustee in writing the Notes are
listed in accordance with TIA § 313(d). 
The Company shall promptly notify the Trustee when the Notes are listed
on any stock exchange and of any delisting thereof.

 

SECTION 7.7                  Compensation and Indemnity.

 

The
Issuer shall pay to the Trustee from time to time compensation for its acceptance
of this Indenture and services hereunder as the parties will agree from time to
time.  The Trustee’s compensation shall
not be limited by any law on compensation of a trustee of an express
trust.  The Issuer shall reimburse the
Trustee promptly upon request for all reasonable out-of-pocket disbursements,
advances and expenses incurred or made by it in addition to the compensation
for its services.  Such expenses shall
include, but not limited to, the reasonable compensation, disbursements and
expenses of the Trustee’s agents and counsel.

 

The
Issuer and the Guarantors, jointly and severally, shall indemnify the Trustee
(which for purposes of this Section 7.7 shall include its officers,
directors, employees and agents) against any and all claims, damage, losses,
liabilities or expenses (including reasonable attorneys’ fees) incurred by it
arising out of or in connection with the acceptance or administration of its
duties under this Indenture, including the costs and expenses of enforcing this
Indenture against the Issuer (including this Section 7.7) and defending
itself against any claim (whether asserted by the Issuer or any Holder or any
other Person) or liability in connection with the exercise or performance of
any of its powers or duties hereunder except to the extent any such loss,
claim, damage, liability or expense may be attributable to its negligence,
willful misconduct or bad faith.  The
Trustee shall notify the Issuer promptly of any claim for which it may seek
indemnity.  Failure by the Trustee to so
notify the Issuer shall not relieve the Issuer of its obligations
hereunder.  The Trustee may have separate
counsel and the Issuer shall pay the reasonable fees and expenses of one such
counsel.  The Issuer need not pay for any
settlement made without its consent, which consent shall not be unreasonably
withheld.  Under no circumstances shall
the Trustee be liable for any consequential or punitive damages of any kind.

 

The
obligations of the Issuer and the Guarantors under this Section 7.7 shall
survive the satisfaction and discharge or termination for any reason of this
Indenture or the resignation or removal of the Trustee.

 

To
secure the Issuer’s and the Guarantors’ obligations in this Section 7.7,
the Trustee shall have a Lien prior to the Notes on all money or property held
or collected by the Trustee, except that held in trust to pay principal or
interest, if any, on particular Notes. 
Such Lien shall survive the satisfaction and discharge or termination for
any reason of this Indenture and the resignation or removal of the Trustee.

 

The
Trustee shall comply with the provisions of TIA § 313(b)(2) to the
extent applicable.

 

83

 

In
addition, and without prejudice to the rights provided to the Trustee under any
of the provisions of this Indenture, when the Trustee incurs expenses or
renders services after an Event of Default specified in Section 6.1(7
hereof occurs, the expenses and the compensation for the services (including
the fees and expenses of its agents and counsel) are intended to constitute
expenses of administration under any Bankruptcy Law.

 

“Trustee”
for the purposes of this Section 7.7 shall include any predecessor Trustee
and the Trustee in each of its capacities hereunder and each agent, custodian
and other person employed to act hereunder; provided, however, that the negligence, willful misconduct or bad
faith of any Trustee hereunder shall not affect the rights of any other Trustee
hereunder.

 

SECTION 7.8                  Replacement of Trustee.

 

A
resignation or removal of the Trustee and appointment of a successor Trustee
shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section 7.8.

 

The
Trustee may resign at any time and be discharged from the trust hereby created
by so notifying the Issuer in writing. 
The Holders of a majority in principal amount of the then outstanding
Notes may remove the Trustee by so notifying the Trustee and the Issuer in
writing.  The Issuer may remove the
Trustee if:

 

(a)           the Trustee fails to comply with Section 7.10
hereof;

 

(b)           the Trustee is adjudged a bankrupt or an insolvent
or an order for relief is entered with respect to the Trustee under any
Bankruptcy Law;

 

(c)           a Custodian or public officer takes charge of the
Trustee or its property; or

 

(d)           the Trustee becomes incapable of acting.

 

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

 

A
successor Trustee shall deliver a written acceptance of its appointment to the
retiring Trustee and to the Issuer. 
Promptly after that, the retiring Trustee shall transfer all property
held by it as Trustee to the successor Trustee, subject to the lien provided in
Section 7.7 hereof, the resignation or removal of the retiring Trustee
shall become effective, and the successor Trustee shall have all the rights,
powers and duties of the Trustee under this Indenture.  A successor Trustee shall deliver notice of
its succession to each Holder.

 

If
a successor Trustee does not take office within 60 days after the retiring
Trustee resigns or is removed, the retiring Trustee, the Issuer or the Holders
of at least 10% in aggregate 

 

84

 

principal
amount of all outstanding Notes may petition any court of competent
jurisdiction for the appointment of a successor Trustee.

 

If
the Trustee fails to comply with Section 7.10 hereof, any Holder may
petition any court of competent jurisdiction for the removal of the Trustee and
the appointment of a successor Trustee.

 

Notwithstanding
replacement of the Trustee pursuant to this Section 7.8, the Issuer’s
obligations under Section 7.7 hereof shall continue for the benefit of the
retiring Trustee.

 

SECTION 7.9                  Successor Trustee by Merger, Etc.

 

If
the Trustee or any Agent consolidates, merges or converts into, or transfers
all or substantially all of its corporate trust business to, another Person,
the successor Person without any further act shall be the successor Trustee or
any Agent, as applicable.

 

SECTION 7.10                Eligibility;
Disqualification.

 

There
shall at all times be a Trustee hereunder that is a corporation organized and
doing business under the laws of the United States of America or of any state
thereof that is authorized under such laws to exercise corporate trustee power
and that is subject to supervision or examination by federal or state
authorities.  The Trustee together with
its affiliates shall at all times have a combined capital and surplus of at
least $50.0 million as set forth in its most recent annual report of condition.

 

This
Indenture shall always have a Trustee who satisfies the requirements of TIA
§§ 310(a)(l), (2) and (5).  If
this Indenture becomes qualified under the TIA, the Trustee shall be subject to
TIA § 310(b) including the provision in § 310(b)(1); provided 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 Issuer or the Guarantors are outstanding if the requirements for
exclusion set forth in TIA § 310(b)(1) are met.

 

SECTION 7.11                Preferential Collection of
Claims Against the Issuer.

 

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

 

SECTION 7.12                Trustee’s Application for
Instructions from the Issuer.

 

Any
application by the Trustee for written instructions from the Issuer may, at the
option of the Trustee, set forth in writing any action proposed to be taken or
omitted by the Trustee under this Indenture and the date on and/or after which
such action shall be taken or such omission shall be effective.  The Trustee shall not be liable for any
action taken by, or omission of, the Trustee in accordance with a proposal
included in such application on or after the date specified in such application
(which date shall not be less than twenty Business Days after the 

 

85

 

date
any officer of the Issuer actually receives such application, unless any such
officer shall have consented in writing to any earlier date) unless prior to
taking any such action (or the effective date in the case of an omission), the
Trustee shall have received written instructions in response to such
application specifying the action to be taken or omitted.

 

ARTICLE VIII

 

DEFEASANCE AND COVENANT
DEFEASANCE

 

SECTION 8.1                  Option to Effect Defeasance
or Covenant Defeasance.

 

The
Issuer may, at the option of its Board of Directors evidenced by a Board
Resolution set forth in an Officer’s Certificate, at any time, elect to have
either Section 8.2 or 8.3 hereof applied to all outstanding Notes upon
compliance with the conditions set forth below in this Article VIII.

 

SECTION 8.2                  Defeasance and Discharge.

 

Upon
the Issuer’s exercise under Section 8.1 hereof of the option applicable to
this Section 8.2, the Issuer shall, subject to the satisfaction of the
conditions set forth in Section 8.4 hereof, be deemed to have been
discharged from its obligations with respect to all outstanding Notes on the
date the conditions set forth below are satisfied (hereinafter, “defeasance”).  For
this purpose, defeasance means that the Issuer shall be deemed to have paid and
discharged the entire Debt represented by the outstanding Notes, which shall
thereafter be deemed to be “outstanding” only for the purposes of Section 8.5
hereof and the other Sections of this Indenture referred to in (a) and (b) below,
and to have satisfied all of its other obligations under such Notes and this
Indenture (and the Trustee, on demand of and at the expense of the Issuer,
shall execute proper instruments acknowledging the same), except for the
following provisions which shall survive until otherwise terminated or
discharged hereunder:  (a) the
rights of Holders of outstanding Notes to receive payments in respect of the
principal of, premium, if any, and interest, if any, on such Notes when such
payments are due from the trust referred to in Section 8.4(l); (b) the
Issuer’s obligations with respect to such Notes under Sections 2.2, 2.3, 2.4,
2.5, 2.6, 2.7, 2.10 and 4.2 hereof; (c) the rights, powers, trusts, benefits
and immunities of the Trustee, including without limitation thereunder, under Section 7.7,
8.5 and 8.7 hereof and the Issuer’s obligations in connection therewith; (d) the
Company’s rights pursuant to Section 3.7; and (e) the provisions of
this Article VIII.  Subject to
compliance with this Article VIII, the Issuer may exercise its option
under this Section 8.2 notwithstanding the prior exercise of its option
under Section 8.3 hereof.

 

86

 

The
Issuer and the Guarantors may terminate their respective obligations under the
Indenture (a “Discharge”) when:

 

(1)           either:  (A) all Notes that have been
authenticated and delivered have been delivered to the Trustee for
cancellation, or (B) all such Notes not theretofore delivered to the
Trustee for cancellation (i) have become due and payable or (ii) will
become due and payable within one year or are to be called for redemption
within one year under irrevocable arrangements satisfactory to the Trustee for
the giving of notice of redemption by the Trustee in the name, and at the
expense, of the Company, and the Company has irrevocably deposited or caused to
be deposited with the Trustee immediately available funds or U.S. Government
Obligations in an amount sufficient to pay and discharge the entire
indebtedness on the Notes, not theretofore delivered to the Trustee for
cancellation, for principal of, premium, if any, and interest to the Stated
Maturity or date of redemption;

 

(2)           the Issuer has paid or
caused to be paid all other sums then due and payable under this Indenture by
the Issuer;

 

(3)           the deposit will not result
in a breach or violation of, or constitute a default under, any other
instrument to which the Issuer or any Guarantor is a party or by which the
Issuer or any Guarantor is bound;

 

(4)           the Issuer has delivered
irrevocable instructions to the Trustee under this Indenture to apply the
deposited money toward the payment of the Notes at maturity or on the
redemption date, as the case may be; and

 

(5)           the Issuer has delivered to
the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating
that all conditions precedent under this Indenture relating to the Discharge
have been complied with.

 

The Issuer may elect, at its option, to have its obligations discharged
with respect to the outstanding Notes (“legal defeasance”).  Such defeasance means that the Issuer will be
deemed to have paid and discharged the entire indebtedness represented by the
outstanding Notes, except for:

 

(1)           the rights of Holders of
such Notes to receive payments in respect of the principal of and any premium
and interest on such Notes when payments are due,

 

(2)           the Issuer’s obligations
with respect to such Notes concerning issuing temporary Notes, registration of
Notes, mutilated, destroyed, lost or stolen Notes and the maintenance of an
office or agency for payment and money for security payments held in trust,

 

(3)           the rights, powers, trusts,
duties and immunities of the Trustee,

 

(4)           the Company’s right of
optional redemption, and

 

87

 

(5)           the legal defeasance
provisions of this Indenture.

 

If
the Issuer exercises its legal defeasance option, the Subsidiary Guarantees in
effect at such time will terminate.

 

SECTION 8.3                  Covenant Defeasance.

 

Upon
the Issuer’s exercise under Section 8.1 hereof of the option applicable to
this Section 8.3, the Issuer shall, subject to the satisfaction of the
conditions set forth in Section 8.4 hereof, be released from its obligations
under the covenants contained in Sections 4.3, 4.4, 4.7, 4.8, 4.9, 4.10, 4.11,
4.12, 4.13, 4.14, 4.16, 4.17, 4.18 and 5.1 hereof with respect to the
outstanding Notes on and after the date the conditions set forth below are
satisfied (hereinafter, “covenant defeasance”),
and the Notes shall thereafter be deemed not “outstanding” for the purposes of
any direction, waiver, consent or declaration or act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall
continue to be deemed “outstanding” for all other purposes hereunder (it being
understood that such Notes shall not be deemed outstanding for accounting
purposes).  For this purpose, covenant
defeasance means that, with respect to the outstanding Notes, the Issuer or any
of its Subsidiaries may omit to comply with and shall have no liability in
respect of any term, condition or limitation set forth in any such covenant,
whether directly or indirectly, by reason of any reference elsewhere herein to
any such covenant or by reason of any reference in any such covenant to any
other provision herein or in any other document and such omission to comply
shall not constitute a Default or an Event of Default under Section 6.1
hereof, but, except as specified above, the remainder of this Indenture and
such Notes shall be unaffected thereby. 
In addition, upon the Issuer’s exercise under Section 8.1 hereof of
the option applicable to this Section 8.3, subject to the satisfaction of
the conditions set forth in Section 8.4 hereof, Section 6.1(4) hereof
shall not constitute an Event of Default.

 

SECTION 8.4                  Conditions to Defeasance or
Covenant Defeasance.

 

The
following shall be the conditions to the application of either Section 8.2
or 8.3 hereof to the outstanding Notes:

 

In
order to exercise either legal defeasance or covenant defeasance with respect
to outstanding Notes:

 

(1)           the Issuer must irrevocably
have deposited or caused to be deposited with the Trustee as trust funds in
trust for the purpose of making the following payments, specifically pledged as
security for, and dedicated solely to the benefits of the Holders of such
Notes:  (A) money in an amount, or (B) U.S.
government obligations which through the scheduled payment of principal and
interest in respect thereof in accordance with their terms will provide, not
later than the due date of any payment, money in an amount or (C) a
combination thereof, in each case sufficient without reinvestment, in the
opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, to pay
and discharge, and which shall be applied by the Trustee to pay and discharge,
the entire indebtedness in respect of the 

 

88

 

principal of and premium, if
any, and interest on such Notes on the Stated Maturity thereof or (if the
Issuer has made irrevocable arrangements satisfactory to the Trustee for the
giving of notice of redemption by the Trustee in the name and at the expense of
the Issuer) the redemption date thereof, as the case may be, in accordance with
the terms of this Indenture and such Notes;

 

(2)           in the case of legal
defeasance, the Issuer shall have delivered to the Trustee an Opinion of
Counsel stating that (A) the Issuer 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 United States
federal income tax law, in either case (A) or (B) to the effect that,
and based thereon such opinion shall confirm that, the Holders of such Notes
will not recognize gain or loss for United States federal income tax purposes
as a result of the deposit, defeasance and discharge to be effected with
respect to such Notes and will be subject to United States federal income tax
on the same amount, in the same manner and at the same times as would be the
case if such deposit, defeasance and discharge were not to occur;

 

(3)           in the case of covenant
defeasance, the Issuer shall have delivered to the Trustee an Opinion of
Counsel to the effect that the Holders of such outstanding Notes will not
recognize gain or loss for United States federal income tax purposes as a
result of the deposit and covenant defeasance to be effected with respect to
such Notes and will be subject to United States federal income tax on the same
amount, in the same manner and at the same times as would be the case if such
deposit and covenant defeasance were not to occur;

 

(4)           no Default or Event of Default
with respect to the outstanding Notes shall have occurred and be continuing at
the time of such deposit after giving effect thereto (other than a Default or
Event of Default resulting from the borrowing of funds to be applied to such
deposit and the grant of any Lien to secure such borrowing);

 

(5)           such legal defeasance or
covenant defeasance shall not cause the Trustee to have a conflicting interest
within the meaning of the TIA (assuming all Notes are in default within the
meaning of the TIA);

 

(6)           such legal defeasance or
covenant defeasance shall not result in a breach or violation of, or constitute
a default under, any material agreement or material instrument (other than this
Indenture) to which the Company is a party or by which the Company is bound;
and

 

(7)           the Company shall have
delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel,
each stating that all conditions precedent with respect to such legal
defeasance or covenant defeasance have been complied with.

 

In
connection with a Discharge, in the event the Issuer becomes insolvent within
the applicable preference period after the date of deposit, monies held for the
payment of the Notes 

 

89

 

may
be part of the bankruptcy estate of the Issuer, disbursement of such monies may
be subject to the automatic stay of the Bankruptcy Code and monies disbursed to
Holders may be subject to disgorgement in favor of the Issuer’s estate.  Similar results may apply upon the insolvency
of the Issuer during the applicable preference period following the deposit of
monies in connection with defeasance.

 

SECTION 8.5                  Deposited Money and
Government Securities to Be Held in Trust; Other Miscellaneous Provisions.

 

Subject
to Section 8.6 hereof, all money and non-callable U.S. government
obligations (including the proceeds thereof) deposited with the Trustee (or
other qualifying trustee, collectively for purposes of this Section 8.5,
the “Trustee”) pursuant to Section 8.4
hereof in respect of the outstanding Notes shall be held in trust, shall not be
invested, and applied by the Trustee, in accordance with the provisions of such
Notes and this Indenture, to the payment, either directly or through any Paying
Agent (including the Company or any Subsidiary acting as Paying Agent) as the
Trustee may determine, to the Holders of such Notes of all sums due and to
become due thereon in respect of principal, premium, if any, and interest, but
such money need not be segregated from other funds except to the extent
required by law.

 

The
Issuer shall pay and indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against the cash or non-callable U.S. government
obligations deposited pursuant to Section 8.4 hereof or the principal and
interest received in respect thereof other than any such tax, fee or other
charge which by law is for the account of the Holders of the outstanding Notes.

 

Anything
in this Article VIII to the contrary notwithstanding, the Trustee shall
deliver or pay to the Issuer from time to time upon the written request of the
Issuer and be relieved of all liability with respect to any money or
non-callable U.S. government obligations held by it as provided in Section 8.4
hereof which, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to
the Trustee (which may be the opinion delivered under Section 8.4(1) hereof),
are in excess of the amount thereof that would then be required to be deposited
to effect an equivalent legal defeasance or covenant defeasance.

 

SECTION 8.6                  Repayment to Issuer.

 

Any
money deposited with the Trustee or any Paying Agent, or then held by the
Issuer, in trust for the payment of the principal of, premium, if any, or interest,
if any, on any Note and remaining unclaimed for one year after such principal
and premium, if any, or interest has become due and payable shall be paid to
the Issuer on its written request or (if then held by the Issuer) shall be
discharged from such trust; and the Holder of such Note shall thereafter, as an
unsecured general creditor, look only to the Issuer for payment thereof, and
all liability of the Trustee or such Paying Agent with respect to such trust
money, and all liability of the Issuer as trustee thereof, shall thereupon
cease; provided, however,
that the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Issuer cause to be 

 

90

 

published
once, in The  New York Times
and The Wall Street Journal (national
edition), notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such
notification or publication, any unclaimed balance of such money then remaining
shall be repaid to the Issuer.

 

SECTION 8.7                  Reinstatement.

 

If
the Trustee or Paying Agent is unable to apply any United States dollars or
non-callable U.S. government obligations in accordance with Section 8.2 or
8.3 hereof, as the case may be, by reason of any order or judgment of any court
or governmental authority enjoining, restraining or otherwise prohibiting such
application, then the obligations of the Issuer under this Indenture and the
Notes shall be revived and reinstated as though no deposit had occurred
pursuant to Section 8.2 or 8.3 hereof until such time as the Trustee or
Paying Agent is permitted to apply all such money in accordance with Section 8.2
or 8.3 hereof, as the case may be; provided, however, that, if the Issuer makes any payment of principal
of, premium, if any, or interest on any Note following the reinstatement of its
obligations, the Issuer shall be subrogated to the rights of the Holders of
such Notes to receive such payment `from the money held by the Trustee or
Paying Agent.

 

ARTICLE IX

 

AMENDMENT, SUPPLEMENT AND
WAIVER

 

SECTION 9.1                  Without Consent of Holders
of the Notes.

 

Notwithstanding
Section 9.2 of this Indenture, without the consent of any Holders, the
Issuer, the Guarantors and the Trustee, at any time and from time to time, may
enter into one or more indentures supplemental to this Indenture for any of the
following purposes:

 

(1)           to evidence the succession
of another Person to the Company and the assumption by any such Successor
Entity of the covenants of the Company in this Indenture, the Note Guarantees
and the Notes;

 

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

 

(3)           to add additional Events of
Default;

 

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

 

(5)           to evidence and provide for
the acceptance of appointment under this Indenture by a successor Trustee;

 

91

 

(6)           to provide for or confirm
the issuance of Additional Notes in accordance with the terms of this
Indenture;

 

(7)           to add a Guarantor or to
release a Guarantor in accordance with the terms of this Indenture;

 

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

 

(9)           to make any other provisions
with respect to matters or questions arising under this Indenture; provided that such actions pursuant to this clause (9) shall
not adversely affect the interests of the Holders in any material respect, as
determined in good faith by the Board of Directors of the Company;

 

(10)         to conform the text of this
Indenture or the Notes to any provision of the “Description of Notes” in the
Offering Memorandum to the extent that the Trustee has received an Officer’s
Certificate stating that such text constitutes an unintended conflict with the
description of the corresponding provision in the “Description of Notes”;

 

(11)         to effect or maintain the
qualification of the Indenture under the TIA.

 

(12)         to secure the Notes; or

 

(13)         to provide for the issuance
of exchange securities which shall have terms substantially identical in all
respects to the Notes (except that the transfer restrictions contained in the
Notes shall be modified or eliminated as appropriate) and which shall be
treated, together with any outstanding Notes, as a single class of securities.

 

SECTION 9.2                  With Consent of Holders of
Notes.

 

With
the consent of the Holders of not less than a majority in aggregate principal
amount of the outstanding Notes (including consents obtained in connection with
a purchase of, or tender offer or exchange offer for, Notes), the Issuer, the
Guarantors and the Trustee may enter into an indenture or indentures
supplemental to this Indenture for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture
or the Notes or of modifying in any manner the rights of the Holders of the
Notes under this Indenture, including the definitions herein; provided, however, that
no such supplemental indenture shall, without the consent of the Holder of each
outstanding Note affected thereby:

 

(1)           change the Stated Maturity
of any Note or of any installment of interest on any Note, or reduce the amount
payable in respect of the principal thereof or the rate of interest thereon or
any premium payable thereon, or reduce the amount that would be due and payable
on acceleration of the maturity thereof, or change the place of payment where,
or the coin or currency in which, any Note or any premium or interest thereon
is payable, or impair the right to institute suit for the enforcement of any
such payment on or after the Stated Maturity thereof, or change the date on
which any Notes may be subject to redemption or reduce the Redemption Price
therefor;

 

92

 

(2)           reduce the percentage in
aggregate principal amount of the outstanding Notes, the consent of whose
Holders is required for any such supplemental indenture, or the consent of
whose Holders is required for any waiver (of compliance with certain provisions
of this Indenture or certain defaults hereunder and their consequences)
provided for in this Indenture;

 

(3)           modify the obligations of
the Company to make Offers to Purchase upon a Change of Control or from the
Excess Proceeds of Asset Sales if such modification is made after the time that
the Company is required to make an Offer to Purchase in connection with a
Change of Control or Asset Sale;

 

(4)           modify or change any
provision of this Indenture affecting the ranking of the Notes or any Note
Guarantee in a manner adverse to the Holders of the Notes;

 

(5)           modify any of the provisions
of this paragraph or provisions relating to waiver of defaults or certain
covenants, except to increase any such percentage required for such actions or
to provide that certain other provisions of this Indenture cannot be modified
or waived without the consent of the Holder of each outstanding Note affected
thereby; or

 

(6)           release any Note Guarantees
required to be maintained under this Indenture (other than in accordance with
the terms of this Indenture).

 

The
Holders of not less than a majority in aggregate principal amount of the
outstanding Notes may on behalf of the Holders of all the Notes waive any past
default under this Indenture and its consequences, except a default:

 

(1)           in any payment
in respect of the principal of (or premium, if any) or interest on any Notes
(including any Note which is required to have been purchased pursuant to an
Offer to Purchase which has been made by the Issuer); or

 

(2)           in respect of a
covenant or provision hereof which under this Indenture cannot be modified or
amended without the consent of the Holder of each outstanding Note affected, each
of which, for the avoidance of doubt, shall require the consent of all the
Holders of the Notes outstanding.

 

SECTION 9.3                  Compliance with TIA.

 

Every
amendment or supplement to this Indenture or the Notes shall be set forth in an
amended or supplemental indenture that complies with the TIA as then in effect.

 

SECTION 9.4                  Revocation and Effect of
Consents.

 

Until
an amendment, supplement or waiver becomes effective, a consent to it by a
Holder of a Note is a continuing consent by the Holder and every subsequent
Holder of that Note or portion of the Note that evidences the same debt as the
consenting Holder’s Note, even if 

 

93

 

notation
of the consent is not made on the Note. 
However, any such Holder or subsequent Holder may revoke the consent as
to its Note if the Trustee receives written notice of revocation before the
date the waiver, supplement or amendment becomes effective.  When an amendment, supplement or waiver
becomes effective in accordance with its terms, it thereafter binds every
Holder.

 

The
Issuer may, but shall not be obligated to, fix a record date for determining
which Holders consent to such amendment, supplement or waiver.  If the Issuer fixes a record date, the record
date shall be fixed at (i) the later of 30 days prior to the first
solicitation of such consent or the date of the most recent list of Holders
furnished for the Trustee prior to such solicitation pursuant to Section 2.5
hereof or (ii) such other date as the Issuer shall designate.

 

SECTION 9.5                  Notation on or Exchange of
Notes.

 

The
Trustee may place an appropriate notation about an amendment, supplement or
waiver on any Note thereafter authenticated. 
The Issuer in exchange for all Notes may issue and the Trustee shall
authenticate new Notes that reflect the amendment, supplement or waiver.

 

Failure
to make the appropriate notation or issue a new Note shall not affect the
validity and effect of such amendment, supplement or waiver.

 

After
any amendment, supplement or waiver becomes effective, the Company shall mail
to Holders a notice briefly describing such amendment, supplement or
waiver.  The failure to give such notice
shall not affect the validity and effect of such amendment, supplement or
waiver.

 

SECTION 9.6                  Trustee to Sign Amendments, Etc.

 

The
Trustee shall sign any amended or supplemental indenture authorized pursuant to
this Article IX if the amendment or supplement does not adversely affect
the rights, duties, liabilities or immunities of the Trustee.  The Issuer and the Guarantors may not sign an
amendment or supplemental indenture until their respective Boards of Directors
approve it.  In signing or refusing to
sign any amendment or supplemental indenture the Trustee shall be entitled to
receive and (subject to Section 7.1 hereof) shall be fully protected in
relying upon an Officer’s Certificate and an Opinion of Counsel stating that
the execution of such amendment or supplemental indenture is authorized or
permitted by this Indenture, that all conditions precedent thereto have been
met or waived, that such amendment or supplemental indenture is not
inconsistent herewith, and that it will be valid and binding upon the Issuer in
accordance with its terms.

 

94

 

ARTICLE X

 

NOTE GUARANTEES

 

SECTION 10.1                Note Guarantees.

 

(a)           Each Guarantor hereby jointly and severally, fully,
unconditionally and irrevocably guarantees the Notes and obligations of the
Issuer hereunder and thereunder, and guarantees to each Holder of a Note authenticated
and delivered by the Trustee and to the Trustee and its successors and assigns,
on behalf of such Holder, that:  (i) the
principal of and premium, if any and interest on the Notes shall be paid in
full when due, whether at Stated Maturity, by acceleration, call for redemption
or otherwise (including, without limitation, the amount that would become due
but for the operation of the automatic stay under Section 362(a) of
the Bankruptcy Code), together with interest on the overdue principal, if any,
and interest on any overdue interest, to the extent lawful, and all other
obligations of the Issuer to the Holders or the Trustee hereunder or thereunder
shall be paid in full or performed, all in accordance with the terms hereof and
thereof; and (ii) in case of any extension of time of payment or renewal
of any Notes or of any such other obligations, the same shall be paid in full
when due or performed in accordance with the terms of the extension or renewal,
whether at Stated Maturity, by acceleration or otherwise.  Each of the Note Guarantees shall be a
guarantee of payment and not of collection.

 

(b)           Each Guarantor hereby agrees that its obligations
hereunder shall be unconditional, irrespective of the validity, regularity or
enforceability of the Notes or this Indenture, the absence of any action to
enforce the same, any waiver or consent by any Holder with respect to any
provisions hereof or thereof, the recovery of any judgment against the Company,
any action to enforce the same or any other circumstance which might otherwise
constitute a legal or equitable discharge or defense of a Guarantor.

 

(c)           Each Guarantor hereby waives the benefits of
diligence, presentment, demand for payment, filing of claims with a court in
the event of insolvency or bankruptcy of the Company, any right to require a
proceeding first against the Company or any other Person, protest, notice and
all demands whatsoever and covenants that the Note Guarantee of such Guarantor
shall not be discharged as to any Note except by complete performance of the
obligations contained in such Note and such Note Guarantee or as provided for
in this Indenture.  Each of the
Guarantors hereby agrees that, in the event of a default in payment of
principal or premium, if any or interest on such Note, whether at its Stated
Maturity, by acceleration, call for redemption, purchase or otherwise, legal
proceedings may be instituted by the Trustee on behalf of, or by, the Holder of
such Note, subject to the terms and conditions set forth in this Indenture,
directly against each of the Guarantors to enforce such Guarantor’s Note
Guarantee without first proceeding against the Company or any other
Guarantor.  Each Guarantor agrees that
if, after the occurrence and during the continuance of an Event of Default, the
Trustee or any of the Holders are prevented by applicable law from exercising
their respective rights to accelerate the maturity of the Notes, to collect
interest on the Notes, or to enforce or exercise any other right or remedy with
respect to 

 

95

 

the Notes, such Guarantor shall pay to the Trustee
for the account of the Holders, upon demand therefor, the amount that would
otherwise have been due and payable had such rights and remedies been permitted
to be exercised by the Trustee or any of the Holders.

 

(d)           If any Holder or the Trustee is required by any
court or otherwise to return to the Issuer or any Guarantor, or any custodian,
trustee, liquidator or other similar official acting in relation to the Issuer
or any Guarantor, any amount paid by any of them to the Trustee or such Holder,
the Note Guarantee of each of the Guarantors, to the extent theretofore
discharged, shall be reinstated in full force and effect.  This paragraph (d) shall remain effective
notwithstanding any contrary action which may be taken by the Trustee or any
Holder in reliance upon such amount required to be returned.  This paragraph (d) shall survive the
termination of this Indenture.

 

(e)           Each Guarantor further agrees that, as between each
Guarantor, on the one hand, and the Holders and the Trustee, on the other hand,
(x) the maturity of the obligations guaranteed hereby may be accelerated
as provided in Article VI hereof for the purposes of the Note Guarantee of
such Guarantor, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the obligations guaranteed hereby,
and (y) in the event of any acceleration of such obligations as provided
in Article VI hereof, such obligations (whether or not due and payable)
shall forthwith become due and payable by each Guarantor for the purpose of the
Note Guarantee of such Guarantor.

 

SECTION 10.2                Delivery of Note Guarantee.

 

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

 

SECTION 10.3                Severability.

 

In
case any provision of any Note Guarantee shall be invalid, illegal or
unenforceable, the validity, legality, and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

 

SECTION 10.4                Limitation of Guarantors’
Liability.

 

Each
Guarantor and by its acceptance of Notes, each Holder, confirms that it is the
intention of all such parties that the Note Guarantee of such Guarantor not
constitute a fraudulent transfer or conveyance for purposes of the Federal
Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent
Transfer Act or any similar federal or state law relating to fraudulent
transfer or conveyance.  To effectuate
the foregoing intention, the Trustee, the Holders and Guarantors hereby
irrevocably agree that the obligations of such Guarantor under its Note Guarantee
shall be limited to the maximum amount that will not, after giving effect to
all other contingent and fixed liabilities of such Guarantor and after giving
effect to any collections from, rights to receive contribution from or payments
made by or on behalf of any other 

 

96

 

Guarantor
in respect of the obligations of such other Guarantor under its Note Guarantee,
result in the obligations of such Guarantor under its Note Guarantee
constituting a fraudulent transfer or conveyance.

 

SECTION 10.5                Guarantors May Consolidate, Etc.,
on Certain Terms.

 

Except
as otherwise provided in Section 10.6, a Guarantor may not sell or
otherwise dispose of all or substantially all of its assets, or consolidate
with or merge with or into (whether or not such Guarantor is the surviving
Person) another Person unless:

 

(1)           immediately after giving
effect to such transactions, no Default or Event of Default exists; and

 

(2)           either:

 

(A)          the Person acquiring the
property in any such sale or disposition or the Person formed by or surviving
any such consolidation or merger assumes all the obligations of that Guarantor
under this Indenture pursuant to a supplemental indenture satisfactory to the
Trustee; or

 

(B)           the Net Cash Proceeds of any
such sale or other disposition of a Guarantor are applied in accordance with
the provisions of Section 4.10 hereof; and

 

(3)           the Company delivers, or
causes to be delivered, to the Trustee an Officer’s Certificate and an Opinion
of Counsel, each stating that such sale, other disposition, consolidation or
merger complies with the requirements of this Indenture.

 

In
case of any such consolidation, merger, sale or conveyance and upon the
assumption by the successor Person, by supplemental indenture, executed and
delivered to the Trustee and satisfactory in form to the Trustee, of the Note
Guarantee and the due and punctual performance of all of the covenants and
conditions of this Indenture to be performed by the Guarantor, such successor
Person shall succeed to and be substituted for the Guarantor with the same
effect as if it had been named herein as a Guarantor.  All the Note Guarantees so issued shall in
all respects have the same legal rank and benefit under this Indenture as the
Note Guarantees theretofore and thereafter issued in accordance with the terms
of this Indenture as though all such Note Guarantees had been issued at the
date of the execution hereof.

 

Except
as set forth in Articles IV and V hereof, and notwithstanding clauses (1) and
(2) above, nothing contained in this Indenture or in any of the Notes
shall prevent any consolidation or merger of a Guarantor with or into the
Issuer or another Guarantor, or shall prevent any sale or conveyance of the
property of a Guarantor as an entirety or substantially as an entirety to the
Issuer or another Guarantor.

 

97

 

SECTION 10.6                                                 Releases
Following Sale of Assets.

 

Any
Guarantor shall be released and relieved of any obligations under this Note
Guarantee, in connection with (1) any sale or other transfer or
disposition by the Issuer or any Subsidiary of the Issuer of all or
substantially all of the assets of that Guarantor (including by way of merger
or consolidation) to a Person that is not (either immediately before or
immediately after giving effect to such transaction) an Affiliate of the
Issuer, if the Issuer or the Guarantor applies the Net Cash Proceeds of that
sale or other disposition in accordance with the provisions of Section 4.10
hereof;  (2) any sale or other
transfer or disposition of all of the Capital Interests in any Guarantor by the
Issuer or any Subsidiary of the Issuer to a Person that is not (either
immediately before or immediately after giving effect to such transaction) an
Affiliate of the Issuer, if the Issuer applies the Net Cash Proceeds of that
sale in accordance with the provisions of Section 4.10 hereof; (3) the
occurrence of any other transaction permissible under this Indenture pursuant
to which such Guarantor ceases to be a Subsidiary or (4) the release of a
Guarantor of its guarantee obligations in respect of the Credit
Facilities.  At the request of the
Issuer, the Issuer, such Guarantor and the Trustee shall execute a supplemental
indenture evidencing such release and discharge; provided
that in connection with any such supplemental indenture, the Issuer shall
deliver an Officer’s Certificate to the Trustee certifying that the conditions
to such release and discharge, including without limitation Section 4.10
(if applicable) hereof, have been satisfied, and the Trustee shall execute any
documents reasonably requested by the Issuer to evidence such release and
discharge.

 

Any
Guarantor not released from its obligations under this Note Guarantee shall
remain liable for the full amount of principal of and interest on the Notes and
for the other obligations of any Guarantor under this Indenture as provided in
this Article X.

 

SECTION 10.7                                                 Release of a
Guarantor.

 

Any
Guarantor that is designated by the Board of Directors of the Company as an
Unrestricted Subsidiary in accordance with the terms of this Indenture shall,
at such time, be deemed automatically and unconditionally released and
discharged of its obligations under its Note Guarantee without any further
action on the part of the Trustee or any Holder.  The Trustee shall deliver an appropriate
instrument evidencing such release upon receipt of the Company’s request for
such release accompanied by an Officer’s Certificate certifying as to the
compliance with this Section 10.7. 
Any Guarantor not so released shall remain liable for the full amount of
principal of and interest on the Notes as provided in its Note Guarantee.

 

SECTION 10.8                                                 Benefits
Acknowledged.

 

Each
Guarantor acknowledges that it will receive direct and indirect benefits from
the financing arrangements contemplated by this Indenture and that its
guarantee and waivers pursuant to its Note Guarantee are knowingly made in
contemplation of such benefits.

 

98

 

SECTION 10.9                                                 Future
Guarantors.

 

Each
Person that is required to become a Guarantor after the Issue Date pursuant to Section 4.17
shall promptly execute and deliver to the Trustee a supplemental indenture
pursuant to which such Person shall become a Guarantor. Concurrently with the
execution and delivery of such supplemental indenture, the Company shall
deliver to the Trustee an Opinion of Counsel and an Officer’s Certificate to
the effect that such supplemental indenture has been duly authorized, executed
and delivered by such Person and that, subject to the application of
bankruptcy, insolvency, moratorium, fraudulent conveyance or transfer and other
similar laws relating to creditors’ rights generally and to the principles of
equity, whether considered in a proceeding at law or in equity, the Guarantee
of such Guarantor is a legal, valid and binding obligation of such Guarantor,
enforceable against such Guarantor in accordance with its terms and/or to such
other matters as the Trustee may reasonably request.

 

ARTICLE XI

 

MISCELLANEOUS

 

SECTION 11.1                                                 TIA Controls.

 

If
any provision of this Indenture limits, qualifies or conflicts with the duties
imposed by TIA § 318(c), the imposed duties shall control.

 

SECTION 11.2                                                 Notices.

 

Any
notice or communication by the Issuer, any Guarantor or the Trustee to the
others is duly given if in writing and delivered in Person or mailed by first
class mail (registered or certified, return receipt requested), telecopier or
overnight air courier guaranteeing next day delivery, to the others address:

 

If
to the Issuer or any Guarantor:

 

Triumph
Group, Inc.

1550
Liberty Ridge Drive

Wayne,
PA  19087

Facsimile:  (610) 251-1555

Attention:  General Counsel

 

With
a copy to:

 

Wachtell,
Lipton, Rosen & Katz

51 West 52nd Street

New York, New York  10019

Facsimile:  (212) 403-2109

Attention:  Joshua A. Feltman

 

99

 

If
to the Trustee:

 

U.S.
Bank National Association

Corporate Trust Services

Two Liberty Place

50 South 16th Street, Suite 2000

Mail Station: EX-PA-WBSP

Philadelphia, PA  19102

Facsimile:  (215) 761-9412

Attention:  George J. Rayzis

 

The
Issuer, the Guarantors and the Trustee, by notice to the others, may designate
additional or different addresses for subsequent notices or communications.

 

All
notices and communications (other than those sent to Holders and the Trustee)
shall be deemed to have been duly given: 
at the time delivered by hand, if personally delivered; five Business
Days after being deposited in the mail, postage prepaid, if mailed; when
receipt acknowledged, if telecopied; and the next Business Day after timely
delivery to the courier, if sent by overnight air courier promising next
Business Day delivery.

 

Any
notice or communication to a Holder shall be sent electronically or mailed by
first class mail or by overnight air courier promising next Business Day
delivery to its address shown on the register kept by the Registrar.  Any notice or communication shall also be so
sent to any Person described in TIA § 313(c), to the extent required by
the TIA.  Failure to send 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 or delivered in the manner provided above
within the time prescribed, it is duly given, whether or not the addressee
receives it, except in the case of notices or communications given to the
Trustee, which shall be effective only upon actual receipt.

 

If
the Issuer mails or delivers a notice or communication to Holders, it shall
mail or deliver a copy to the Trustee and each Agent at the same time.

 

SECTION 11.3                                                 Communication
by Holders of Notes with Other Holders of Notes.

 

Holders
may communicate pursuant to TIA § 312(b) with other Holders with
respect to their rights under this Indenture or the Notes.  The Issuer, the Guarantor, the Trustee, the
Registrar and anyone else shall have the protection of TIA § 312(c).

 

SECTION 11.4                                                 Certificate and
Opinion as to Conditions Precedent.

 

Upon
any request or application by the Issuer to the Trustee to take any action
under this Indenture (other than the initial issuance of the Notes), the Issuer
shall furnish to the Trustee upon request:

 

100

 

(a)           an
Officer’s Certificate (which shall include the statements set forth in Section 11.5
hereof) stating that, in the opinion of the signers, all conditions precedent
and covenants, if any, provided for in this Indenture relating to the proposed
action have been complied with; and

 

(b)           an
Opinion of Counsel (which shall include the statements set forth in Section 11.5
hereof) stating that, in the opinion of such counsel, all such conditions
precedent and covenants have been complied with.

 

SECTION 11.5                                                 Statements
Required in Certificate or Opinion.

 

Each
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture (other than a certificate provided pursuant to
TIA § 314(a)(4)) shall comply with the provisions of TIA § 314(e) and
shall include:

 

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

 

(b)           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;

 

(c)           a
statement that, in the opinion of such Person, he or she 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

 

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

 

SECTION 11.6                                                 Rules by
Trustee and Agents.

 

The
Trustee may make reasonable rules for action by or at a meeting of
Holders.  The Registrar or Paying Agent
may make reasonable rules and set reasonable requirements for its functions.

 

SECTION 11.7                                                 No Personal
Liability of Directors, Officers, Employees, Stockholders and the Trustee.

 

No
director, officer, employee, stockholder, general or limited partner or
incorporator, past, present or future, of the Company or any of its Subsidiaries,
as such or in such capacity, shall have any personal liability for any
obligations of the Issuer under the Notes, any Note Guarantee or this Indenture
by reason of his, her or its status as such director, officer, employee,
stockholder, general or limited partner or incorporator.

 

No
recourse may, to the full extent permitted by applicable law, be taken,
directly or indirectly, with respect to the obligations of the Company or the
Guarantors on the Notes or under this Indenture or any related documents, any
certificate or other writing delivered in connection therewith, against
(i) the Trustee in its individual capacity, or (ii) any partner,
owner, 

 

101

 

beneficiary,
agent, officer, director, employee, agent, successor or assign of the Trustee,
each in its individual capacity, or (iii) any holder of equity in the
Trustee.  Each Holder of Notes by
accepting a Note waives and releases all such liability.  The waiver and release are part of the
consideration for the issuance of the Notes.

 

SECTION 11.8                                                 Governing Law.

 

THE
LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS
INDENTURE, THE NOTES AND THE NOTE GUARANTEES, IF ANY.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO
TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
INDENTURE, THE NOTES, THE NOTE GUARANTEES OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

 

SECTION 11.9                                                 No Adverse
Interpretation of Other Agreements.

 

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

 

SECTION 11.10                                           Successors.

 

All
agreements of the Issuer and the Guarantors in this Indenture and the Notes and
the Note Guarantees, as applicable, shall bind their respective successors and
assigns.  All agreements of the Trustee
in this Indenture shall bind its successors and assigns.

 

SECTION 11.11                                           Severability.

 

In
case any provision in this Indenture or in the Notes shall be invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

 

SECTION 11.12                                           Counterpart
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.

 

SECTION 11.13                                           Table of
Contents, Headings, Etc.

 

The
Table of Contents, Cross-Reference Table and headings of the Articles and
Sections of this Indenture have been inserted for convenience of reference
only, are not to be considered a part of this Indenture and shall in no way modify
or restrict any of the terms or provisions hereof.

 

102

 

SECTION 11.14                                           Qualification
of Indenture.

 

The Issuer and the Guarantors shall qualify this
Indenture under the TIA in accordance with the terms and conditions of the
Registration Rights Agreement and shall pay all reasonable costs and expenses
(including attorneys’ fees and expenses for the Issuer, the Guarantors and the
Trustee) incurred in connection therewith, including, but not limited to, costs
and expenses of qualification of this Indenture and the Notes and printing this
Indenture and the Notes.  The Trustee
shall be entitled to receive from the Issuer and the Guarantors any such
Officer’s Certificates, Opinions of Counsel or other documentation as it may
reasonably request in connection with any such qualification of this Indenture
under the TIA.

 

[Signatures on following page]

 

103

 

 

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

 

	
   

  	
  TRIUMPH
  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s
  M. David Kornblatt

  
	
   

  	
   

  	
  Name:

  	
  M.
  David Kornblatt

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President, Chief

  
	
   

  	
   

  	
   

  	
  Financial
  Officer and Treasurer

  

 

[Indenture]

 

 

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

 

 

	
   

  	
  AIRFRAME
  SPARES AND LOGISTICS, LLC 

  CBA ACQUISITION, LLC

  
	
   

  	
  HT
  PARTS, L.L.C.

  
	
   

  	
  KILROY
  STEEL, INC.

  
	
   

  	
  KILROY
  STRUCTURAL STEEL CO.

  
	
   

  	
  LAMAR
  ELECTRO-AIR CORPORATION MEXMIL CHINA, LLC

  
	
   

  	
  THE MEXMIL HOLDING COMPANY LLC

  
	
   

  	
  THE
  TRIUMPH GROUP OPERATIONS, INC. 

  
	
   

  	
  TRIUMPH ACCESSORY SERVICES — GRAND
  PRAIRIE, INC.

  
	
   

  	
  TRIUMPH ACTUATION SYSTEMS — CONNECTICUT, LLC

  
	
   

  	
  TRIUMPH
  ACTUATION SYSTEMS - VALENCIA, INC.

  
	
   

  	
  TRIUMPH
  ACTUATION SYSTEMS, LLC 

  
	
   

  	
  TRIUMPH AEROSPACE SYSTEMS — NEWPORT
  NEWS, INC.

  
	
   

  	
  TRIUMPH
  AEROSPACE SYSTEMS - WICHITA, INC.

  
	
   

  	
  TRIUMPH
  AEROSPACE SYSTEMS GROUP, INC.

  
	
   

  	
  TRIUMPH
  AFTERMARKET SERVICES GROUP, INC.

  
	
   

  	
  TRIUMPH
  AIRBORNE STRUCTURES, INC. 

  
	
   

  	
  TRIUMPH
  AVIATION, INC.

  
	
   

  	
  TRIUMPH
  COMPOSITE SYSTEMS, INC. 

  
	
   

  	
  TRIUMPH
  CONTROLS, LLC

  
	
   

  	
  TRIUMPH
  ENGINEERED SOLUTIONS, INC. 

  
	
   

  	
  TRIUMPH
  ENGINEERING SERVICES, INC. 

  
	
   

  	
  TRIUMPH
  FABRICATIONS — FORT WORTH, INC.

  
	
   

  	
  TRIUMPH
  FABRICATIONS — HOT SPRINGS, INC.

  
	
   

  	
  TRIUMPH
  FABRICATIONS — ORANGEBURG, INC.

  
	
   

  	
  TRIUMPH
  FABRICATIONS - SAN DIEGO, INC. 

  
	
   

  	
  TRIUMPH
  FABRICATIONS — ST. LOUIS, INC. 

  
	
   

  	
  TRIUMPH
  GEAR SYSTEMS — MACOMB, INC. 

  
	
   

  	
  TRIUMPH
  GEAR SYSTEMS, INC.

  

 

[Indenture]

 

 

	
   

  	
  TRIUMPH
  GROUP ACQUISITION HOLDINGS, INC.

  
	
   

  	
  TRIUMPH
  GROUP HOLDINGS — MEXICO, LLC 

  
	
   

  	
  TRIUMPH
  GROUP INVESTMENT — MEXICO, LLC

  
	
   

  	
  TRIUMPH
  GROUP REAL ESTATE — MEXICO, LCC

  
	
   

  	
  TRIUMPH
  INSTRUMENTS — BURBANK, INC. 

  
	
   

  	
  TRIUMPH
  INSTRUMENTS, INC.

  
	
   

  	
  TRIUMPH
  INSULATION SYSTEMS, LLC 

  
	
   

  	
  TRIUMPH
  INTERIORS, LLC

  
	
   

  	
  TRIUMPH
  INVESTMENT HOLDINGS, INC. 

  
	
   

  	
  TRIUMPH
  METALS COMPANY

  
	
   

  	
  TRIUMPH
  PRECISION CASTINGS CO. 

  
	
   

  	
  TRIUMPH
  PRECISION, INC.

  
	
   

  	
  TRIUMPH
  PROCESSING, INC.

  
	
   

  	
  TRIUMPH
  STRUCTURES — EAST TEXAS, INC. 

  
	
   

  	
  TRIUMPH
  STRUCTURES — KANSAS CITY, INC.

  
	
   

  	
  TRIUMPH
  STRUCTURES — LONG ISLAND, LLC

  
	
   

  	
  TRIUMPH
  STRUCTURES — LOS ANGELES, INC.

  
	
   

  	
  TRIUMPH
  STRUCTURES — WICHITA, INC. 

  
	
   

  	
  TRIUMPH
  THERMAL SYSTEMS, INC. 

  
	
   

  	
  TRIUMPH
  TURBINE SERVICES, INC.

  
	
   

  	
  as
  Guarantors

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  M. David Kornblatt

  
	
   

  	
   

  	
  Name:

  	
  M.
  David Kornblatt

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NU-TECH
  BRANDS, INC.

  
	
   

  	
  TRIUMPH
  BRANDS, INC.

  
	
   

  	
  TRIUMPH
  GROUP ACQUISITION CORP. 

  
	
   

  	
  as
  Guarantors

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  M. David Kornblatt

  
	
   

  	
   

  	
  Name:

  	
  M.
  David Kornblatt

  
	
   

  	
   

  	
  Title:

  	
  President
  and Treasurer

  

 

[Indenture]

 

 

	
   

  	
  TRIUMPH
  AEROSTRUCTURES, LLC (f/k/a

  
	
   

  	
  VOUGHT
  AIRCRAFT INDUSTRIES, INC.)

  
	
   

  	
  as
  Guarantor

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Richard C. Ill

  
	
   

  	
  Name:

  	
  Richard
  C. Ill

  
	
   

  	
  Title:

  	
  Chairman

  
	
   

  	
   

  	
   

  
	
   

  	
  VAC
  INDUSTRIES, INC.

  
	
   

  	
  VOUGHT
  COMMERCIAL AIRCRAFT COMPANY

  
	
   

  	
  CONTOUR
  AEROSPACE CORPORATION

  
	
   

  	
  as
  Guarantors

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  M. David Kornblatt

  
	
   

  	
  Name:

  	
  M.
  David Kornblatt

  
	
   

  	
  Title:

  	
  Vice
  President and Treasurer

  

 

[Indenture]

 

 

	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION,

  
	
   

  	
  as
  Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  George J. Rayzis

  
	
   

  	
   

  	
  Name:
  George J. Rayzis

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

[Indenture]

 

 

EXHIBIT A

 

FORM OF 8.625% SENIOR NOTE

 

(Face of Note)

8.625% Senior Notes due 2018

 

[Global Notes Legend]

 

[Insert the Global Note
Legend, if applicable, pursuant to the provisions of the Indenture]

 

[Restricted Notes Legend]

 

[Insert the Restricted Notes
Legend, if applicable, pursuant to the provisions of the Indenture]

 

A-1

 

 

 

 

 

TRIUMPH GROUP, INC.

8.625% SENIOR NOTES DUE 2018

 

	
  No.      

  	
   

  	
  144A
  CUSIP: 896818 AE1

  
	
   

  	
   

  	
  144A
  ISIN: US896818AE15

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  REG
  S CUSIP: U8968G AB0

  
	
   

  	
   

  	
  REG
  S ISIN: USU8968GAB06

  

 

Triumph
Group, Inc. promises to pay to Cede & Co., or registered assigns,
the principal sum of
              Dollars
($          ) on July 15,
2018.

 

Interest
Payment Dates:  July 15 and January 15,
beginning January 15, 2011

 

Record
Dates:  July 1 and January 1

 

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

 

Unless the certificate of authentication hereon has been executed by
the Trustee referred to on the reverse hereof by manual or facsimile signature,
this Note shall not be entitled to any benefits under the Indenture referred to
on the reverse hereof or be valid or obligatory for any purpose.

 

A-2

 

In WITNESS HEREOF, the
Issuer has caused this instrument to be duly executed.

 

Dated [           ],
20[  ]

 

 

	
   

  	
  TRIUMPH
  GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-3

 

TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

This
is one of the Notes

referred
to in the within-mentioned Indenture:

Dated:  [        
], 20[  ]

 

U.S. BANK NATIONAL ASSOCIATION,

as Trustee

 

 

	
  By:

  	
   

  	
   

  
	
  Authorized Signatory

  	
   

  

 

A-4

 

(Reverse of Note)

8.625% Senior Notes due 2018

TRIUMPH GROUP, INC.

 

Capitalized
terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

 

(1)           Interest.

 

(a)           Triumph Group, Inc., a Delaware
corporation, or its successor (together, “Triumph”),
promises to pay interest on the principal amount of this Note (the “Notes”) at a fixed rate. 
Triumph will pay interest in United States dollars (except as otherwise
provided herein) semiannually in arrears on July 15 and January 15,
of each year, commencing on January 15, 2011 or, if any such day is not a
Business Day, on the next succeeding Business Day (each an “Interest  Payment Date”).  Interest on the Notes shall accrue from the
most recent date to which interest has been paid or, if no interest has been
paid, from and including June 16, 2010; provided
that if there is no existing Default or Event of Default in the payment of
interest, and if this Note is authenticated between a record date referred to
on the face hereof and the next succeeding Interest Payment Date (but after January 15,
2011), interest shall accrue from such next succeeding Interest Payment Date,
except in the case of the original issuance of the Notes, in which case
interest shall accrue from the date of authentication.  Triumph shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
principal at the rate equal to 1% per annum in
excess of the then applicable interest rate on the Notes to the extent lawful;
it shall pay interest (including post-petition interest in any proceeding under
any Bankruptcy Law) on overdue installments of interest (without regard to any
applicable grace period) at the same rate to the extent lawful.  Interest shall be computed on the basis of a
360-day year comprised of twelve 30-day months. 
The interest rate on the Notes will in no event be higher than the
maximum rate permitted by New York law as the same may be modified by United
States law of general application.

 

[(b)          Registration Rights Agreement.  The Holder of this Note is entitled to the
benefits of a Registration Rights Agreement, dated as of June 16, 2010,
among the Issuer, the Guarantors party thereto and the Initial Purchasers.](1)

 

(2)           Method of Payment.  Triumph will pay interest on the Notes
(except defaulted interest) on the applicable Interest Payment Date to the
Persons who are registered Holders of the Notes at the close of business on the
July 1 and January 1 preceding the Interest Payment Date, even if
such Notes are cancelled after such record date and on or before such Interest
Payment 

 

(1)           To
be included only in the Initial Notes on the Issue Date and any Additional
Notes that bear the Restricted Note Legend.

 

A-5

 

Date,
except as provided in Section 2.12 of the Indenture with respect to
defaulted interest.  The Notes shall be
payable as to principal, premium and interest at the office or agency of
Triumph maintained for such purpose within or without the City and State of New
York, or, at the option of Triumph, payment of interest may be made by check
mailed to the Holders at their addresses set forth in the register of Holders; provided that payment by wire transfer of immediately
available funds shall be required with respect to principal of, premium, if
any, and interest on, all Global Notes and all other Notes the Holders of which
shall have provided written wire transfer instructions to Triumph and the
Paying Agent.  Such payment shall be in
such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts.

 

Any
payments of principal of and interest on this Note prior to Stated Maturity
shall be binding upon all future Holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange hereof or in lieu
hereof, whether or not noted hereon.  The
amount due and payable at the maturity of this Note shall be payable only upon
presentation and surrender of this Note at an office of the Trustee or the
Trustee’s agent appointed for such purposes.

 

(3)           Paying Agent and Registrar.  Initially, U.S. Bank National Association,
the Trustee under the Indenture, shall act as Paying Agent and Registrar.  Triumph may change any Paying Agent or
Registrar without notice to any Holder. 
Triumph or any of its Restricted Subsidiaries may act in any such
capacity.

 

(4)           Indenture.  Triumph issued the Notes under an Indenture,
dated as of June 16, 2010 (the “Indenture”),
among Triumph, the Guarantors and the Trustee. 
The terms of the Notes include those stated in the Indenture and those
made a part of the Indenture by reference to the Trust Indenture Act of 1939,
as amended (15 U.S. Code §§ 77aaa-77bbbb) (the “TIA”).  To the extent the provisions of this Note are
inconsistent with the provisions of the Indenture, the Indenture shall
govern.  The Notes are subject to all
such terms, and Holders are referred to the Indenture and such Act for a
statement of such terms.  The Notes
issued on the Issue Date are senior unsecured Obligations of Triumph limited to
$350,000,000 in aggregate principal amount, plus amounts, if any, sufficient to
pay premium and interest on outstanding Notes as set forth in Paragraph 2
hereof.  The Indenture permits the
issuance of Additional Notes subject to compliance with certain conditions.

 

The
payment of principal and interest on the Notes is unconditionally guaranteed on
a senior basis by the Guarantors.

 

(5)           Optional Redemption.

 

(a)           The Notes may be redeemed, in whole
or in part, at any time prior to July 15, 2014, at the option of Triumph,
upon not less than 30 nor more than 60 days’ prior notice sent electronically
or mailed by first-class mail to each Holder’s registered address, at a
Redemption Price equal to 100% of the principal amount of the Notes redeemed
plus the Applicable Premium as of, and accrued and unpaid interest, if any, to,
the applicable redemption date (subject to the 

 

A-6

 

right
of holders of record on the relevant record date to receive interest due on the
relevant interest payment date).

 

(b)           The Notes are subject to redemption,
at the option of Triumph, in whole or in part, at any time on or after July 15,
2014, upon not less than 30 nor more than 60 days’ notice at the following
Redemption Prices (expressed as percentages of the principal amount to be
redeemed) set forth below, plus accrued and unpaid interest, if any, to, but
not including, the redemption date (subject to the right of Holders of record
on the relevant regular record date to receive interest due on an interest
payment date that is on or prior to the redemption date), if redeemed during
the 12-month period beginning July 15, of the years indicated:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2014

  	
   

  	
  104.313

  	
  %

  
	
  2015

  	
   

  	
  102.156

  	
  %

  
	
  2016 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(c)           In addition to the optional
redemption of the Notes in accordance with the provisions of the preceding
paragraph, prior to July 15, 2013, Triumph may, with the net proceeds of
one or more Qualified Equity Offerings, redeem up to 35% of the aggregate
principal amount of the outstanding Notes (including Additional Notes) at a
Redemption Price equal to 108.625% of the principal amount of thereof, together
with accrued and unpaid interest thereon, if any, to the date of redemption; provided that at least 65% of the principal amount of Notes
then outstanding (including Additional Notes) remains outstanding immediately
after the occurrence of any such redemption (excluding Notes held by Triumph or
its Subsidiaries) and that any such redemption occurs within 90 days following
the closing of any such Qualified Equity Offering.

 

(6)           Mandatory Redemption.  Triumph shall not be required to make
mandatory redemption or sinking fund payments with respect to the Notes.

 

(7)           Repurchase at Option of Holder.

 

(a)           Upon the occurrence of a Change of
Control, unless Triumph has exercised its right to redeem all of the Notes
pursuant to Section 3.7 of the Indenture, Triumph will make an Offer to
Purchase for all of the outstanding Notes at a purchase price in cash equal to
101% of the principal amount tendered, together with accrued interest, if any,
to but not including the date of purchase. 
Within 60 days following any Change of Control, Triumph will mail or
deliver a notice to each Holder describing the transaction or transactions that
constitute the Change of Control setting forth the procedures governing the
Offer to Purchase required by the Indenture.

 

(b)           Upon the occurrence of certain Asset
Sales, Triumph may be required to offer to purchase the Notes.

 

(c)           Holders of the Notes that are the
subject of an Offer to Purchase will receive notice of an Offer to Purchase
pursuant to an Asset Sale or a Change of Control from Triumph 

 

A-7

 

prior
to any related Purchase Date and may elect to have such Notes purchased by
completing the form titled “Option of Holder to Elect Purchase” appearing
below.

 

(8)           Notice of Redemption.  Notice of redemption shall be delivered at
least 30 days but not more than 60 days before the redemption date to each
Holder whose Notes are to be redeemed at its registered address.  Notes in denominations larger than $2,000 may
be redeemed in part but only in a minimum amount of $2,000 principal amount
(and integral multiples of $1,000 in excess thereof), unless all of the Notes
held by a Holder are to be redeemed.  On
and after the redemption date, interest ceases to accrue on the Notes or
portions hereof called for redemption.

 

(9)           Denominations, Transfer, Exchange.  The Notes are in registered form without
coupons in initial denominations of $2,000 and any integral multiple of $1,000
in excess thereof.  The transfer of the
Notes may be registered and the Notes may be exchanged as provided in the
Indenture.  The Registrar and the Trustee
may require a Holder, among other things, to furnish appropriate endorsements
and transfer documents and Triumph may require a Holder to pay any taxes and
fees required by law or permitted by the Indenture.  Triumph need not exchange or register the
transfer of any Note or portion of a Note selected for redemption, except for
the unredeemed portion of any Note being redeemed in part.  Also, it need not exchange or register the
transfer of any Notes for a period of 15 days before a selection of Notes to be
redeemed or during the period between a record date and the corresponding
Interest Payment Date.

 

(10)         Persons Deemed Owners.  The registered holder of a Note may be
treated as its owner for all purposes.

 

(11)         Amendment, Supplement and Waiver.  Subject to the following paragraphs, the
Indenture and the Notes may be amended or supplemented with the consent of the
Holders of at least a majority in aggregate principal amount of the then
outstanding Notes, including, without limitation, consents obtained in
connection with a purchase of or tender offer or exchange offer for Notes, and
any existing Default or Event of Default or compliance with any provision of
the Indenture or the Notes may be waived with the consent of the Holders of a
majority in aggregate principal amount of the then outstanding Notes, including
consents obtained in connection with a tender offer or exchange offer for the
Notes.

 

Without
the consent of any Holders, Triumph, the Guarantors and the Trustee, at any
time and from time to time, may enter into one or more indentures supplemental
to the Indenture for any of the following purposes:

 

(1)           to evidence the
succession of another Person to Triumph and the assumption by any such
Successor Entity of the covenants of Triumph in the Indenture, the Note Guarantees
and the Notes;

 

(2)           to add to the
covenants of Triumph for the benefit of the Holders, or to surrender any right
or power herein conferred upon Triumph;

 

A-8

 

(3)           to add additional
Events of Default;

 

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

 

(5)           to evidence and
provide for the acceptance of appointment under the Indenture by a successor
Trustee;

 

(6)           to provide for or
confirm the issuance of Additional Notes in accordance with the terms of the
Indenture;

 

(7)           to add a Guarantor
or to release a Guarantor in accordance with the Indenture;

 

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

 

(9)           to make any other
provisions with respect to matters or questions arising under the Indenture; provided that such actions pursuant to this clause (9) shall
not adversely affect the interests of the Holders in any material respect, as
determined in good faith by the Board of Directors of Triumph;

 

(10)         to conform the text
of the Indenture or the Notes to any provision of the “Description of Notes” in
the Offering Memorandum to the extent that the Trustee has received an Officer’s
Certificate stating that such text constitutes an unintended conflict with the
description of the corresponding provision in the “Description of Notes”;

 

(11)         to effect or maintain
the qualification of the Indenture under the TIA.

 

(12)         to secure the Notes;
or

 

(13)         to provide for the
issuance of exchange securities which shall have terms substantially identical
in all respects to the Notes (except that the transfer restrictions contained
in the Notes shall be modified or eliminated as appropriate) and which shall be
treated, together with any outstanding Notes, as a single class of securities.

 

With
the consent of the Holders of not less than a majority in aggregate principal
amount of the outstanding Notes (including consents obtained in connection with
a purchase of, or tender offer or exchange offer for, Notes), Triumph, the
Guarantors and the Trustee may enter into an indenture or indentures
supplemental to the Indenture for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of the Indenture or
the Notes or of modifying in any manner the rights of the Holders of the Notes
under the Indenture, including the definitions therein; provided,
however, that no such supplemental
indenture shall, without the consent of the Holder of each outstanding Note
affected thereby:

 

(1)           change the Stated
Maturity of any Note or of any installment of interest on any Note, or reduce
the amount payable in respect of the principal thereof or the rate of 

 

A-9

 

interest
thereon or any premium payable thereon, or reduce the amount that would be due
and payable on acceleration of the maturity thereof, or change the place of
payment where, or the coin or currency in which, any Note or any premium or
interest thereon is payable, or impair the right to institute suit for the
enforcement of any such payment on or after the Stated Maturity thereof, or
change the date on which any Notes may be subject to redemption or reduce the
Redemption Price therefor,

 

(2)           reduce the
percentage in aggregate principal amount of the outstanding Notes, the consent
of whose Holders is required for any such supplemental indenture, or the
consent of whose Holders is required for any waiver (of compliance with certain
provisions of the Indenture or certain defaults thereunder and their
consequences) provided for in the Indenture,

 

(3)           modify the
obligations of Triumph to make Offers to Purchase upon a Change of Control or
from the Excess Proceeds of Asset Sales if such modification is made after the
time that the Company is required to make an Offer to Purchase in connection
with a Change of Control or such Asset Sale,

 

(4)           modify or change any
provision of the Indenture affecting the ranking of the Notes or any Note
Guarantee in a manner adverse to the Holders of the Notes,

 

(5)           modify any of the
provisions of this paragraph or provisions relating to waiver of defaults or
certain covenants, except to increase any such percentage required for such
actions or to provide that certain other provisions of the Indenture cannot be
modified or waived without the consent of the Holder of each outstanding Note
affected thereby, or

 

(6)           release any Note
Guarantees required to be maintained under the Indenture (other than in
accordance with the terms of the Indenture).

 

The
Holders of not less than a majority in aggregate principal amount of the
outstanding Notes may on behalf of the Holders of all the Notes waive any past
default under the Indenture and its consequences, except a default:

 

(1)           in any payment in
respect of the principal of (or premium, if any) or interest on any Notes
(including any Note which is required to have been purchased pursuant to an
Offer to Purchase which has been made by the Issuer), or

 

(2)           in respect of a
covenant or provision hereof which under the Indenture cannot be modified or
amended without the consent of the Holder of each outstanding Note affected,
each of which, for the avoidance of doubt, shall require the consent of all the
Holders of the Notes outstanding.

 

A-10

 

(12)         Defaults and Remedies.  Events of Default include:

 

(1)           default in the
payment in respect of the principal of (or premium, if any, on) any Note when
due and payable (whether at Stated Maturity or upon repurchase, acceleration,
optional redemption or otherwise);

 

(2)           default in the
payment of any interest upon any Note when it becomes due and payable, and
continuance of such default for a period of 30 days;

 

(3)           except as permitted
by the Indenture, any Note Guarantee of any Significant Subsidiary required to
be a Guarantor pursuant to the Indenture (or any group of Restricted
Subsidiaries required to be Guarantors pursuant to the Indenture that, taken
together, would constitute a Significant Subsidiary), shall for any reason
cease to be, or it shall be asserted by any Guarantor or Triumph not to be, in
full force and effect and enforceable in accordance with its terms;

 

(4)           default in the
performance, or breach, of any covenant or agreement (including the Company’s
obligations pursuant to Section 4.14 of the Indenture) of Triumph or any
Guarantor in the Indenture (other than a covenant or agreement a default in
whose performance or whose breach is addressed in clauses (1), (2) or (3) above),
and continuance of such default or breach for a period of 60 days after written
notice thereof has been given to Triumph by the Trustee or to Triumph and the
Trustee by the Holders of at least 25% in aggregate principal amount of the
outstanding Notes;

 

(5)           a default or
defaults under any bonds, debentures, notes or other evidences of Debt (other
than the Notes) by Triumph or any Restricted Subsidiary having, individually or
in the aggregate, a principal or similar amount outstanding of at least $25.0
million, whether such Debt now exists or shall hereafter be created, which
default or defaults (A) shall have resulted in the acceleration of the
maturity of such Debt prior to its express maturity or (B) shall
constitute a failure to pay principal of at least $25.0 million on such Debt
when due and payable after the expiration of any applicable grace period with
respect thereto;

 

(6)           the entry against
Triumph or any Restricted Subsidiary that is a Significant Subsidiary of a
final judgment or final judgments for the payment of money in an aggregate
amount in excess of $25.0 million, by a court or courts of competent
jurisdiction, which judgments remain undischarged, unwaived, unstayed, unbonded
or unsatisfied for a period of 60 consecutive days; or

 

(7)           (i) Triumph, any Restricted Subsidiary that is a
Significant Subsidiary or any group of Restricted Subsidiaries that, taken as a
whole, would constitute a Significant Subsidiary, pursuant to or within the
meaning of any Bankruptcy Law:

 

(a)           commences
a voluntary case,

 

A-11

 

 

 

(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 all or substantially all of its
property,

 

(d)           makes
a general assignment for the benefit of its creditors, or

 

(e)           generally
is not paying its debts as they become due; or

 

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

 

(a)           is
for relief against Triumph or any Restricted Subsidiary that is a Significant
Subsidiary or any group of Restricted Subsidiaries that, taken together, would
constitute a Significant Subsidiary, in an involuntary case;

 

(b)           appoints
a custodian of Triumph or any Restricted Subsidiary that is a Significant
Subsidiary or any group of Restricted Subsidiaries that, taken together, would
constitute a Significant Subsidiary or for all or substantially all of the
property of Triumph or any of its Restricted Subsidiaries; or

 

(c)           orders
the liquidation of Triumph or any Restricted Subsidiary that is a Significant
Subsidiary or any group of Restricted Subsidiaries that, taken together, would
constitute a Significant Subsidiary;

 

and the order or decree
remains unstayed and in effect for 60 consecutive days.

 

If
an Event of Default (other than an Event of Default specified in clause (7) above
with respect to Triumph) occurs and is continuing, then and in every such case
the Trustee or the Holders of not less than 25% in aggregate principal amount
of the outstanding Notes may declare the principal of the Notes and any accrued
interest on the Notes to be due and payable immediately by a notice in writing
to Triumph (and to the Trustee if given by Holders); provided,
however, that after such acceleration,
but before a judgment or decree based on acceleration, the Holders of a
majority in aggregate principal amount of the outstanding Notes may, under
certain circumstances, rescind and annul such acceleration if all Events of
Default, (other than the nonpayment of accelerated principal, premium, if any,
of or interest on the Notes) have been cured or waived as provided in the
Indenture.

 

In
the event of a declaration of acceleration of the Notes solely because an Event
of Default described in clause (5) above has occurred and is continuing,
the declaration of acceleration of the Notes shall be automatically rescinded
and annulled if the event of default or payment default triggering such Event
of Default pursuant to clause (5) shall be remedied or cured by Triumph or
a Restricted Subsidiary of Triumph or waived by the holders of the relevant
Debt within 20 Business Days after the declaration of acceleration with respect
thereto and if the rescission and annulment of the acceleration of the Notes
would not conflict with any judgment

 

A-12

 

or
decree of a court of competent jurisdiction obtained by the Trustee for the
payment of amounts due on the Notes.

 

If
an Event of Default specified in clause (7) above occurs with respect to
Triumph, the principal of and any accrued interest on the Notes then
outstanding shall ipso facto become immediately due and payable without any
declaration or other act on the part of the Trustee or any Holder.  For further information as to waiver of defaults,
see Article IX of the Indenture. 
The Trustee may withhold from Holders notice of any Default (except
Default in payment of principal of, premium, if any, and interest) if the
Trustee determines that withholding notice is in the best interest of the
Holders.

 

No
Holder of any Note will have any right to institute any proceeding with respect
to the Indenture or for any remedy thereunder, unless such Holder shall have
previously given to the Trustee written notice of a continuing Event of Default
and unless also the Holders of at least 25% in aggregate principal amount of
the outstanding Notes shall have made written request to the Trustee, and
provided indemnity reasonably satisfactory to the Trustee, to institute such
proceeding as Trustee, and the Trustee shall not have received from the Holders
of a majority in aggregate principal amount of the outstanding Notes a
direction inconsistent with such request and shall have failed to institute
such proceeding within 60 days.  Such
limitations do not apply, however, to a suit instituted by a Holder of a Note
directly (as opposed to through the Trustee) for enforcement of payment of the
principal of (and premium, if any) or interest on such Note on or after the
respective due dates expressed in such Note.

 

Triumph
will be required to furnish to the Trustee annually a statement as to the
performance of certain obligations under the Indenture and as to any default in
such performance.  Triumph also is
required to notify the Trustee within five Business days after it becomes aware
of the occurrence of any Default or Event of Default.

 

(13)         Trustee Dealings with Triumph.  The Trustee, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for
Triumph, the Guarantors or their respective Affiliates, and may otherwise deal
with Triumph, the Guarantors or their respective Affiliates, as if it were not
the Trustee.

 

(14)         No Recourse Against Others.  No director, officer, employee, stockholder,
general or limited partner or incorporator, past, present or future, of
Triumph, the Guarantors or any of their respective Subsidiaries, as such or in
such capacity, shall have any personal liability for any obligations of Triumph
under the Notes, any Note Guarantee or the Indenture by reason of his, her or
its status as such director, officer, employee, stockholder, general or limited
partner or incorporator.

 

No
recourse may, to the full extent permitted by applicable law, be taken,
directly or indirectly, with respect to the obligations of Triumph or the
Guarantors on the Notes or under the Indenture or any related documents, any
certificate or other writing delivered in connection therewith, against
(i) the Trustee in its individual capacity, or (ii) any partner,
owner, beneficiary,

 

A-13

 

agent,
officer, director, employee, agent, successor or assign of the Trustee, each in
its individual capacity, or (iii) any holder of equity in the Trustee.

 

Each
Holder of Notes by accepting a Note waives and releases all such liability.  The waiver and release are part of the
consideration for the issuance of the Notes.

 

(15)         Authentication.  This Note shall not be valid until
authenticated by the manual or facsimile signature of the Trustee or an
authenticating agent.

 

(16)         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 right of survivorship and not as tenants in common),
CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

(17)         CUSIP, ISIN Numbers.  Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Issuer has
caused CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP, ISIN
or other similar numbers in notices of redemption as a convenience to the
Holders.  No representation is made as to
the accuracy of such numbers either as printed on the Notes or as contained in
any notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.

 

(18)         THE LAW OF THE STATE OF NEW YORK SHALL
GOVERN AND BE USED TO CONSTRUE THIS INDENTURE, THE NOTES AND THE NOTE
GUARANTEES, IF ANY.  EACH OF THE
PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THE INDENTURE, THE NOTES, THE NOTE GUARANTEES OR
THE TRANSACTIONS CONTEMPLATED HEREBY

 

Triumph
shall furnish to any Holder upon written request and without charge a copy of
the Indenture.  Requests may be made to:

 

Triumph
Group, Inc.

1550 Liberty Ridge Drive

Wayne, PA  19087

Attention:  General Counsel

 

A-14

 

ASSIGNMENT FORM

 

To
assign this Note, fill in the form below: 
(I) or (we) assign and transfer this Note to

 

	
   

  	
   

  

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

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

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

 

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

 

	
  Date:

  	
   

  	
   

  

 

 

	
   

  	
  Your
  Signature:

  	
   

  
	
   

  	
  (Sign
  exactly as your name appears on the face of this Note)

  

 

 

	
  Signature
  guarantee:

  	
   

  	
   

  

 

(Signature
must be guaranteed by a participant in a recognized signature guarantee
medallion program)

 

A-15

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If
you want to elect to have this Note purchased by Triumph pursuant to 4.10
(Asset Sale) or 4.14 (Change of Control) of the Indenture, check the box below:

 

	
   

  	
  o
  Section 4.10

  	
   

  	
  o
  Section 4.14

  

 

If
you want to elect to have only part of the Note purchased by Triumph pursuant
to Section 4.10 or 4.14 of the Indenture, state the amount you elect to
have purchased:

 

$                                 

 

	
  Date:

  	
   

  	
   

  	
  Your
  Signature:

  	
   

  
	
   

  	
  (Sign
  exactly as your name appears on the Note)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Tax
  Identification Number:

  	
   

  
	
   

  	
   

  
	
  Signature
  guarantee:

  	
   

  	
   

  	
   

  
								

 

(Signature
must be guaranteed by a participant in a recognized signature guarantee
medallion program)

 

A-16

 

CERTIFICATE TO BE DELIVERED UPON

EXCHANGE OR REGISTRATION

OF RESTRICTED NOTES

 

Triumph
Group, Inc.

1550 Liberty Ridge Drive

Wayne, PA  19087

Attention:  General Counsel

 

U.S.
Bank National Association 

Corporate Trust Services

Two Liberty Place

50 South 16th Street, Suite 2000

Mail Station: EX-PA-WBSP

Philadelphia, PA  19102

Facsimile:  (215) 761-9412

Attention:  George J. Rayzis

 

	
  Re:

  	
  Triumph
  Group, Inc. 8.625% Senior Notes due 2018

  
	
   

  	
  CUSIP
  # 896818 AE1 or U8968G AB0

  	
   

  

 

Reference
is hereby made to that certain Indenture dated June 16, 2010 (the “Indenture”) among Triumph Group, Inc. (“Triumph”), the Guarantors party thereto and U.S. Bank
National Association, as trustee (the “Trustee”).  Capitalized terms used but not defined herein
shall have the meanings set forth in the Indenture.

 

This
certificate relates to $               
principal amount of Notes held in (check applicable space)
               
book-entry or                
definitive form by the undersigned.

 

The
undersigned
                                    
(transferor) (check one box below):

 

o            hereby requests the Registrar to
deliver in exchange for its beneficial interest in the Global Note held by the
Depositary a Note or Notes in definitive, registered form of authorized
denominations and an aggregate principal amount equal to its beneficial
interest in such Global Note (or the portion thereof indicated above), in
accordance with Section 2.6 of the Indenture;

 

o            hereby requests the Trustee to
exchange or register the transfer of a Note or Notes to
                         
(transferee).

 

In
connection with any transfer of any of the Notes evidenced by this certificate
occurring prior to the expiration of the periods referred to in Rule 144(d) under
the Securities Act of 1933, as amended, the undersigned confirms that such
Notes are being transferred in accordance with its terms:

 

A-17

 

CHECK
ONE BOX BELOW:

 

(1)           o            to Triumph or any of its
subsidiaries, subject to Section 2.6 of the Indenture; or

 

(2)           o            inside the United States to a “qualified
institutional buyer” (as defined in Rule 144A under the Securities Act of
1933, as amended) 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 under the Securities Act of 1933, as
amended, in each case pursuant to and in compliance with Rule 144A
thereunder; or

 

(3)           o            outside the United States in an
offshore transaction within the meaning of Regulation S under the Securities
Act of 1933, as amended, in compliance with Rule 904 thereunder; or

 

(4)           o            pursuant to an effective
registration statement under the Securities Act of 1933, as amended.

 

A-18

 

Unless
one of the boxes is checked, the Registrar will refuse to register any of the
Notes evidenced by this certificate in the name of any person other than the
registered holder thereof.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  	
   

  	
   

  
	
  (Signature
  must be guaranteed by a participant in a recognized signature guarantee
  medallion program)

  	
   

  	
   

  
				

 

TO
BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED.

 

The
undersigned represents and warrants that it is purchasing this Note for its own
account or an account with respect to which it exercises sole investment
discretion and that it and any such account is a “qualified institutional buyer”
within the meaning of Rule 144A under the Securities Act of 1933, as
amended (“Rule 144A”), and is aware that the
sale to it is being made in reliance on Rule 144A and acknowledges that it
has received such information regarding the Company as 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.

 

	
   

  	
   

  	
   

  	
  [Name
  of Transferee]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  NOTICE:
  To be executed by an executive officer

  	
   

  

 

A-19

 

SCHEDULE A

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

 

The
following exchanges of a part of this Global Note for other 8.625% Senior Notes
have been made:

 

	
  Date of Exchange

  	
   

  	
  Amount of 

  Decrease in 

  Principal Amount

  of this Global Note

  	
   

  	
  Amount of 

  Increase in 

  Principal Amount

  of this Global Note

  	
   

  	
  Principal Amount

  of this Global Note

  Following Such

  Decrease (or 

  Increase)

  	
   

  	
  Signature of 

  Authorized Officer

  of Trustee or Note

  Custodian

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-20

 

 

EXHIBIT B

 

[FORM OF CERTIFICATE TO BE DELIVERED

IN CONNECTION WITH TRANSFERS PURSUANT TO RULE 144A]

 

Triumph
Group, Inc.

1550 Liberty Ridge Drive

Wayne, PA  19087

Attention:  General Counsel

 

U.S.
Bank National Association 

Corporate Trust Services

Two Liberty Place

50 South 16th Street, Suite 2000

Mail Station: EX-PA-WBSP

Philadelphia, PA  19102

Facsimile:  (215) 761-9412

Attention:  George J. Rayzis

 

Re:                               Triumph Group, Inc.
8.625% Senior Notes due 2018 (the “Notes”)

 

Ladies
and Gentlemen:

 

In
connection with our proposed sale of
$                
aggregate principal amount at maturity of the Notes, we hereby certify that
such transfer is being effected pursuant to and in accordance with Rule 144A
(“Rule 144A”) under the United States Securities Act of 1933, as amended
(the “Securities Act”), and, accordingly, we hereby further certify that the
Notes are being transferred to a person that we reasonably believe is
purchasing the Notes for its own account, or for one or more accounts with
respect to which such person exercises sole investment discretion, and such
person and each such account is a “qualified institutional buyer” within the
meaning of Rule 144A in a transaction meeting the requirements of Rule 144A
and such Notes are being transferred in compliance with any applicable blue sky
securities laws of any state of the United States.

 

You
and Triumph Group, Inc. are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry
with respect to the matters covered hereby.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Name
  of Transferor]

  

 

B-1

 

	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized
  Signature

  

 

B-2

 

	
   

  	
  Signature
  guarantee:

  	
   

  

 

(Signature must be guaranteed by a participant in a recognized
signature guarantee medallion program)

 

B-3

 

EXHIBIT C

 

[FORM OF CERTIFICATE TO BE DELIVERED

IN CONNECTION WITH TRANSFERS

PURSUANT TO REGULATION S]

 

Triumph
Group, Inc.

1550 Liberty Ridge Drive

Wayne, PA  19087

Attention:  General Counsel

 

U.S.
Bank National Association

Corporate Trust Services

Two Liberty Place

50 South 16th Street, Suite 2000

Mail Station: EX-PA-WBSP

Philadelphia, PA  19102

Facsimile:  (215) 761-9412

Attention:  George J. Rayzis

 

Re:                               Triumph Group, Inc.
8.625% Senior Notes due 2018 (the “Notes”)

 

Ladies
and Gentlemen:

 

In
connection with our proposed sale of
$                
aggregate principal amount of the Notes, we confirm that such sale has been
effected pursuant to and in accordance with Regulation S under the U.S.
Securities Act of 1933, as amended (the “Securities Act”), and, accordingly, we
represent that:

 

(1)           the offer of the
Notes was not made to a person in the United States;

 

(2)           either (a) at
the time the buy order was originated, the transferee was outside the United
States or we and any person acting on our behalf reasonably believed that the
transferee was outside the United States or (b) the transaction was
executed in, on or through the facilities of a designated off-shore securities
market and neither we nor any person acting on our behalf knows that the
transaction has been pre-arranged with a buyer in the United States;

 

(3)           no directed selling
efforts have been made in the United States in contravention of the
requirements of Rule 903(b) or Rule 904(b) of Regulation S,
as applicable; and

 

(4)           the transaction is
not part of a plan or scheme to evade the registration requirements of the
Securities Act.

 

C-1

 

In
addition, if the sale is made during a restricted period and the provisions of Rule 903(b) or
Rule 904(b) of Regulation S are applicable thereto, we confirm that
such sale has been made in accordance with the applicable provisions of Rule 903(b) or
Rule 904(b), as the case may be.

 

C-2

 

Triumph
Group, Inc. and you are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry
with respect to the matters covered hereby. 
Terms used in this certificate have the meanings set forth in Regulation
S.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Name
  of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized
  Signature

  

 

	
  Signature
  guarantee:

  	
   

  	
   

  

 

(Signature
must be guaranteed by a participant in a recognized signature guarantee
medallion program)

 

C-3

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