Document:

Second Amended and Restated Private Shelf Agreement

 Exhibit 10.14 
  
 EXECUTION COPY 
  

  
 WATSCO, INC. 
  
 $125,000,000 
  
 SECOND AMENDED AND RESTATED 
 PRIVATE SHELF AGREEMENT 
  
 as of December 10, 2004 
  

 TABLE OF CONTENTS 
  

							
	 Paragraph

	  	Page

	1.	  	PRELIMINARY STATEMENTS.	  	1
				
	 	  	1A.	  	Authorization and Issue of Series A Notes	  	1
	 	  	1B.	  	Authorization of Issue of Shelf Notes	  	2
			
	2.	  	PURCHASE AND SALE OF NOTES	  	2
				
	 	  	2A.	  	Purchase and Sale of Issued Notes.	  	2
	 	  	2B.	  	Purchase and Sale of Shelf Notes.	  	2
	 	  	2C.	  	Issuance Period	  	3
	 	  	2D.	  	Periodic Spread Information	  	3
	 	  	2E.	  	Request for Purchase	  	4
	 	  	2F.	  	Rate Quotes	  	5
	 	  	2G.	  	Acceptance	  	5
	 	  	2H.	  	Market Disruption	  	6
	 	  	2I.	  	Facility Closings	  	6
	 	  	2J.	  	Fees	  	7
	 	  	2K.	  	Certain Floating Rate Shelf Note Provisions	  	8
			
	3.	  	CONDITIONS OF CLOSING	  	13
				
	 	  	3A.	  	Certain Documents	  	13
	 	  	3B.	  	Opinion of Purchaser’s Special Counsel	  	15
	 	  	3C.	  	Representations and Warranties; No Default	  	15
	 	  	3D.	  	Purchase Permitted by Applicable Laws	  	15
	 	  	3E.	  	Payment of Fees	  	15
	 	  	3F.	  	No Material Adverse Effect	  	15
	 	  	3G.	  	Guaranty Agreements	  	15
			
	4.	  	PREPAYMENTS	  	15
				
	 	  	4A.	  	Required Prepayments of Notes	  	16
	 	  	4B.	  	Optional Prepayments	  	16
	 	  	4C.	  	Notice of Optional Prepayment	  	16
	 	  	4D.	  	Reserved	  	17
	 	  	4E.	  	Allocation of Partial Prepayments	  	17
	 	  	4F.	  	Offer to Prepay Notes in the Event of a Change in Control	  	17
	 	  	4G.	  	Maturity; Surrender, Etc.	  	18
	 	  	4H.	  	Retirement of Notes	  	18
			
	5.	  	AFFIRMATIVE COVENANTS	  	19
				
	 	  	5A.	  	Reporting Requirements	  	19
	 	  	5B.	  	Inspection of Property	  	21
	 	  	5C.	  	Covenant to Secure Notes Equally	  	21

  

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	 	  	5D.	  	Guaranteed Obligations	  	22
	 	  	5E.	  	Maintenance of Insurance	  	22
	 	  	5F.	  	Maintenance of Legal Existence/Compliance with Law/Preservation of Property	  	22
	 	  	5G.	  	Compliance with Environmental Laws	  	23
	 	  	5H.	  	No Integration	  	23
	 	  	5I.	  	Financial Records	  	23
	 	  	5J.	  	Other Covenants	  	23
	 	  	5K.	  	Payment of Obligations	  	24
	 	  	5L.	  	Additional Subsidiaries	  	24
	 	  	5M.	  	Reserved	  	24
			
	6.	  	NEGATIVE COVENANTS	  	24
				
	 	  	6A.	  	Financial Limitation	  	25
	 	  	6B.	  	Liens, Debt and Other Restrictions	  	25
	 	  	6C.	  	Sale of Assets	  	29
	 	  	6D.	  	Subsidiary Stock and Debt	  	30
	 	  	6E.	  	Sale of Receivables	  	31
	 	  	6F.	  	ERISA	  	31
	 	  	6G.	  	Environmental Matters	  	32
	 	  	6H.	  	Specified Laws	  	32
	 	  	6I.	  	Business Activities	  	32
	 	  	6J.	  	Restricted Payments	  	32
			
	7.	  	EVENTS OF DEFAULT	  	33
				
	 	  	7A.	  	Acceleration	  	33
	 	  	7B.	  	Rescission of Acceleration	  	35
	 	  	7C.	  	Notice of Acceleration or Rescission	  	36
	 	  	7D.	  	Other Remedies	  	36
			
	8.	  	REPRESENTATIONS, COVENANTS AND WARRANTIES	  	36
				
	 	  	8A.	  	Organization	  	36
	 	  	8B.	  	Financial Statements	  	37
	 	  	8C.	  	Actions Pending	  	37
	 	  	8D.	  	Outstanding Debt	  	38
	 	  	8E.	  	Title to Properties	  	38
	 	  	8F.	  	Taxes	  	38
	 	  	8G.	  	Conflicting Agreements and Other Matters	  	38
	 	  	8H.	  	Offering of Notes	  	38
	 	  	8I.	  	Use of Proceeds	  	39
	 	  	8J.	  	ERISA	  	39
	 	  	8K.	  	Governmental Consent	  	39
	 	  	8L.	  	Environmental Compliance	  	40
	 	  	8M.	  	Disclosure	  	41
	 	  	8N.	  	Compliance with Laws and Agreements	  	41
	 	  	8O.	  	Labor Relations	  	41

  

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	 	  	8P.	  	Reserved	  	41
	 	  	8Q.	  	Solvency	  	41
	 	  	8R.	  	Senior Debt	  	42
			
	9.	  	REPRESENTATIONS OF THE PURCHASERS	  	42
	 	  	9A.	  	Nature of Purchase	  	42
	 	  	9B.	  	Source of Funds	  	42
			
	10.	  	DEFINITIONS; ACCOUNTING MATTERS	  	43
	 	  	10A.	  	Yield-Maintenance Terms	  	43
	 	  	10B.	  	Other Terms	  	44
	 	  	10C.	  	Accounting Principles, Terms and Determinations	  	62
			
	11.	  	MISCELLANEOUS	  	62
	 	  	11A.	  	Payments	  	62
	 	  	11B.	  	Expenses	  	63
	 	  	11C.	  	Consent to Amendments	  	64
	 	  	11D.	  	Form and Registration; Transfer and Exchange; Transfer Restrictions; Lost Notes	  	64
	 	  	11E.	  	Persons Deemed Owners; Participations	  	65
	 	  	11F.	  	Survival of Representations and Warranties; Entire Agreement	  	65
	 	  	11G.	  	Successors and Assigns	  	65
	 	  	11H.	  	Independence of Covenants	  	66
	 	  	11I.	  	Notices	  	66
	 	  	11J.	  	Payments Due on Non-Business Days	  	66
	 	  	11K.	  	Severability	  	66
	 	  	11L.	  	Descriptive Headings	  	67
	 	  	11M.	  	Satisfaction Requirement	  	67
	 	  	11N.	  	Governing Law; Submission to Jurisdiction	  	67
	 	  	11O.	  	Severalty of Obligations	  	67
	 	  	11P.	  	Counterparts	  	67
	 	  	11Q.	  	Rank	  	67
	 	  	11R.	  	Patriot Act Notice	  	67
	 	  	11S.	  	Binding Agreement	  	67

  

 iii 

 Purchaser Schedule 
 Information Schedule 
  
 EXHIBITS 
  

					
	Exhibit A-1	 	-	  	Form of Allonge
	Exhibit A-2	 	-	  	Form of Fixed Rate Shelf Note
	Exhibit A-3	 	-	  	Form of Floating Rate Shelf Note
	Exhibit B	 	-	  	Form of Request for Purchase
	Exhibit C	 	-	  	Form of Confirmation of Acceptance
	Exhibit D-1	 	-	  	Form of Opinion of Company Counsel
	Exhibit D-3	 	-	  	Form of Opinion of Company Counsel, Shelf Note Closing
	Exhibit E	 	-	  	Form of Guaranty Agreement

  
 SCHEDULES 
  

			
	Schedule 6B(1)	  	Permitted Liens
	Schedule 6B(2)	  	Outstanding Debt
	Schedule 6B(4)	  	Permitted Investments
	Schedule 8A	  	Subsidiaries
	Schedule 8C	  	Pending Litigation
	Schedule 8D	  	Outstanding Debt
	Schedule 8G	  	Specified Agreements
	Schedule 8L	  	Environmental Compliance
	Schedule 10B	  	Guarantors

	

  
  

 iv 

 WATSCO, INC. 
 2665 South Bayshore Drive, Suite 901 
 Coconut Grove, Florida 33133 
  
 As of December 10, 2004 
  
 The Prudential Insurance Company of America (“Prudential”)

  
 Hartford Life Insurance Company 
  
 Medica Health Plan 
  
 Pruco Life Insurance Company of New Jersey 
  
 Each Other Prudential Affiliate (as hereinafter defined) 
 which becomes bound
by certain provisions of this 
 Agreement as hereinafter provided (together with 
 Prudential, the “Purchasers”) 
  
 c/o Prudential Capital Group 
 1170 Peachtree Street, Suite 500 
 Atlanta, Georgia 30309 
  
 Ladies and Gentlemen: 
  
 The undersigned, Watsco, Inc., a Florida corporation (the
“Company”), is a party with you to that certain Private Shelf Agreement, dated as of January 31, 2000, pursuant to which the Company has issued Notes (the “2000 Agreement”) and which was amended and
restated by that certain Amended and Restated Private Shelf Agreement, dated as of October 30, 2002 (as amended, modified or supplemented from time to time the “2002 Agreement”). The Company has requested and you have agreed
(on the terms and subject to the conditions hereinafter set forth) to amend and restate the 2002 Agreement in its entirety as set forth herein. 
  
 NOW THEREFORE, in consideration of the covenants and agreements herein contained, the parties hereto hereby agree that the 2002 Agreement shall be and
hereby is amended and restated effective as of the date hereof to read in its entirety as follows: 
  
 1. PRELIMINARY STATEMENTS. 
  
 1A. Authorization and Issue of Series A Notes. The Company has authorized and issued Senior Series A Notes in the aggregate principal amount
of $30,000,000, dated February 7, 2001 to mature April 9, 2007 and bearing interest at 7.07% per annum on the unpaid balance thereof from the date thereof until the principal thereof shall have become due and payable, which were amended by an
Allonge executed in connection with the 2002 Agreement (as amended, the “Issued Series A Notes”). The Company will authorize and agree to execute a Second Allonge, in substantially the form of Exhibit A-1 (each an
“Allonge”), for each Issued Series A Note issued and outstanding as of the date hereof. The terms “Issued Series A Note” and “Issued  

 
Series A Notes” as used herein shall include each Issued Series A Note previously delivered pursuant to the 2000 Agreement, as previously
amended and further amended by such Allonge, and any such Note delivered in substitution or exchange therefor. 
  
 1B. Authorization of Issue of Shelf Notes. The Company may authorize the issue of its additional senior unsecured promissory notes
(the “Shelf Notes”) in the aggregate principal amount of up to $95,000,000, each Shelf Note to be dated the date of issue thereof, (x) in the case of each Shelf Note so issued bearing a fixed rate of interest (each, a
“Fixed Rate Shelf Note”), to mature no more than twelve years after the date of original issuance thereof and to have an average life of no more than ten years after the date of original issuance thereof or (y) in the case of
each Note so issued bearing a floating rate of interest (each, a “Floating Rate Shelf Note”), to mature no more than five years after the date of original issuance thereof and to have an average life of no more than five
years after the date of original issuance thereof, to bear interest on the unpaid balance thereof from the date thereof at the rate per annum, and to have such other particular terms, as shall be set forth, in the case of each Shelf Note so issued,
in the Confirmation of Acceptance with respect to such Shelf Note delivered pursuant to paragraph 2G, and to be substantially in the form of Exhibit A-2 attached hereto in the case of a Fixed Rate Shelf Note and Exhibit A-3 in the case of a Floating
Rate Shelf Note. The terms “Shelf Note” and “Shelf Notes” as used herein shall include each Issued Series A Note and each Shelf Note delivered pursuant to any provision of this Agreement and each Shelf
Note delivered in substitution or exchange for any such Shelf Note pursuant to any such provision. The terms “Note” and “Notes” as used herein shall include each Issued Series A Note and each Shelf
Note delivered pursuant to any provision of this Agreement and each Note delivered in substitution or exchange for any such Note pursuant to any such provision. Notes which have (i) the same final maturity, (ii) the same principal prepayment dates,
(iii) the same principal prepayment amounts (as a percentage of the original principal amount of each Note), (iv) the same interest rate option (fixed or floating), (v) the same interest rate (in the case of Fixed Rate Shelf Notes) or the same LIBOR
Rate Margin and Base Rate Margin (in the case of Floating Rate Shelf Notes), (vi) the same interest payment periods (in the case of Fixed Rate Shelf Notes) or the same Interest Periods (in the case of Floating Rate Shelf Notes) and (vii) the same
date of issuance (which, in the case of a Note issued in exchange for another Note, shall be deemed for these purposes the date on which such Note’s ultimate predecessor Note was issued), are herein called a “Series” of
Notes. 
  
 2. PURCHASE AND SALE OF NOTES.

  
 2A. Purchase and Sale of Issued Notes. On
February 7, 2001, the Company sold to you the Issued Series A Notes in the aggregate principal amount of $30,000,000. The Company hereby agrees to execute and deliver to you and, subject to the terms and conditions herein set forth, you agree to
accept from the Company, for each Issued Series A Note, an Allonge, in substantially the form of Exhibit A-1. 
  
 2B. Purchase and Sale of Shelf Notes. 
  
 2B(1) Facility; Available Facility Amount. Prudential is willing to consider, in its sole discretion and within limits which may be
authorized for purchase by Prudential and Prudential Affiliates from time to time, the purchase of Shelf Notes pursuant to this Agreement. The 

  

 2 

 
willingness of Prudential to consider such purchase of Shelf Notes is herein called the “Facility”. At any time, the aggregate
principal amount of Shelf Notes stated in paragraph 1B, minus the aggregate principal amount of Shelf Notes purchased and sold pursuant to this Agreement prior to such time, minus the aggregate principal amount of Accepted Notes (as
hereinafter defined) which have not yet been purchased and sold hereunder prior to such time is herein called the “Available Facility Amount” at such time. NOTWITHSTANDING THE WILLINGNESS OF PRUDENTIAL AND THE PRUDENTIAL
AFFILIATES TO CONSIDER PURCHASES OF SHELF NOTES, THIS AGREEMENT IS ENTERED INTO ON THE EXPRESS UNDERSTANDING THAT NEITHER PRUDENTIAL NOR ANY PRUDENTIAL AFFILIATE SHALL BE OBLIGATED TO MAKE OR ACCEPT OFFERS TO PURCHASE SHELF NOTES, OR TO QUOTE RATES,
SPREADS OR OTHER TERMS WITH RESPECT TO SPECIFIC PURCHASES OF SHELF NOTES, AND THE FACILITY SHALL IN NO WAY BE CONSTRUED AS A COMMITMENT BY PRUDENTIAL OR ANY PRUDENTIAL AFFILIATE. 
  
 2C. Issuance Period. Shelf Notes may be issued and sold pursuant to this Agreement at any time until the
earlier of 
  
 (i) December 10, 2007 (or if such
day is not a Business Day, the Business Day immediately preceding such day), 
  
 (ii) the 30th day after Prudential shall have given to the Company, or the Company shall have given to Prudential, written notice stating that it elects to terminate the issuance and sale of Shelf Notes pursuant to
this Agreement (or if such 30th day is not a Business Day, the Business Day next preceding such 30th day, 
  
 (iii) the last Closing Day after which there is no Available Facility Amount, 
  
 (iv) the termination of the Facility under paragraph 7A of
this Agreement, and 
  
 (v) the acceleration of
any Note under paragraph 7A of this Agreement. 
  
 The period
during which Shelf Notes may be issued and sold pursuant to this Agreement is herein called the “Issuance Period”. 
  
 2D. Periodic Spread Information. Not later than 9:30 A.M. (New York City local time) on a Business Day during the Issuance Period if there
is any Available Facility Amount on such Business Day, the Company may request by telecopier or telephone, and Prudential will, to the extent reasonably practicable, provide to the Company on such Business Day (or, if such request is received after
9:30 A.M. (New York City local time) on such Business Day, on the following Business Day), information (by telecopier or telephone) with respect to various spreads at which Prudential or Prudential Affiliates might be interested in purchasing Shelf
Notes of different average lives; provided, however, that the Company may not make such requests more frequently than once in every five Business Days or such other period as shall be mutually agreed to by the Company and Prudential. The
amount and content of information so provided shall be in the sole discretion of Prudential but it is the intent of Prudential to provide information which will be of use to the Company in determining whether to initiate procedures for use of the
Facility. 

  

 3 

 
Information so provided shall not constitute an offer to purchase Shelf Notes, and neither Prudential nor any Prudential Affiliate shall be obligated to
purchase Shelf Notes at the spreads specified. Information so provided shall be representative of potential interest only for the period commencing on the day such information is provided and ending on the earlier of the fifth Business Day after
such day and the first day after such day on which further spread information is provided. Prudential may suspend or terminate providing information pursuant to this paragraph 2D for any reason, including its determination that the credit quality of
the Company has declined since the date of this Agreement. 
  
 2E.
Request for Purchase. The Company may from time to time during the Issuance Period make requests for purchases of Shelf Notes (each such request being herein called a “Request for Purchase”). Each Request for Purchase shall
be made to Prudential by telecopier or overnight delivery service, and shall 
  
 (i) specify the aggregate principal amount of Shelf Notes covered thereby, which shall not be less than the lesser of (A) $10,000,000 and (B) the Available Facility Amount if such Available Facility Amount is equal to
or greater than $5,000,000 and not be greater than the Available Facility Amount at the time such Request for Purchase is made, 
  
 (ii) specify the principal amounts, final maturities (which shall be no more than 12 years from the date of issuance in the case of Fixed
Rate Shelf Notes and five years from the date of issuance in the case of Floating Rate Shelf Notes), average life (which shall be no more than 10 years from the date of issuance in the case of Fixed Rate Shelf Notes and five years from the date of
issuance in the case of Floating Rate Shelf Notes), principal prepayment dates (if any) and amounts of the Shelf Notes covered thereby, 
  
 (iii) specify whether the rate quotes are to contain fixed rates of interest or floating rates of interest and the interest payment
periods (which, in the case of Fixed Rate Shelf Notes, shall be quarterly or semi-annually in arrears) of the Shelf Notes covered thereby, 
  
 (iv) specify the use of proceeds of such Shelf Notes, 
  
 (v) specify the proposed day for the closing of the purchase and sale of such Shelf Notes, which shall be a
Business Day during the Issuance Period not less than 10 days and not more than 20 days after making such Request for Purchase, 
  
 (vi) specify the number of the account and the name and address of the depository institution to which the purchase prices of such Shelf
Notes are to be transferred on the Closing Day for such purchase and sale, 
  
 (vii) certify that the representations and warranties contained in paragraph 8 are true on and as of the date of such Request for Purchase and that there exists on the date of such Request for Purchase no Event of
Default or Default, and 
  

 4 

 (viii) specify whether the fee to be due pursuant to paragraph 2J(2) should be included
in the rate quotes Prudential may provide pursuant to paragraph 2F or will be paid separately by the Company on the Closing Day for such purchase and sale, and 
  

(ix) be substantially in the form of Exhibit B attached hereto. 
  
 Each Request for Purchase shall be in writing and shall be deemed made when received by Prudential. 
  
 2F. Rate Quotes. Not later than five Business Days after the
Company shall have given Prudential a Request for Purchase pursuant to paragraph 2E, Prudential may, but shall be under no obligation to, provide to the Company by telephone or telecopier, in each case between 9:30 A.M. and 2:00 P.M. New York City
local time (or such later time as Prudential may elect) interest rate quotes for the principal amounts, maturities, principal prepayment schedules, interest rate options (fixed or floating) and interest payment periods (in the case of Fixed Rate
Shelf Notes) of Shelf Notes specified in such Request for Purchase. Each quote shall represent the interest rate per annum (or, in the case of Floating Rate Shelf Notes, shall represent the applicable LIBOR Rate Margin and Base Rate Margin) payable
on the outstanding principal balance of such Shelf Notes at which Prudential or a Prudential Affiliate would be willing to purchase such Shelf Notes at 100% of the principal amount thereof. 
  
 2G. Acceptance. Within 30 minutes after Prudential shall have
provided any interest rate quotes pursuant to paragraph 2F or such shorter period as Prudential may specify to the Company (such period herein called the “Acceptance Window”), the Company may, subject to paragraph 2H, elect
to accept such interest rate quotes as to not less than the lesser of (A) $10,000,000 aggregate principal amount of the Shelf Notes specified in the related Request for Purchase or (B) the Available Facility Amount if such Available Facility Amount
is equal to or greater than $5,000,000. Such election shall be made by an Authorized Officer of the Company notifying Prudential by telephone or telecopier within the Acceptance Window (but not earlier than 9:30 A.M. or later than 2:00 P.M., New
York City local time) that the Company elects to accept such interest rate quotes, specifying the Shelf Notes (each such Shelf Note being herein called an “Accepted Note”) as to which such acceptance (herein called an
“Acceptance”) relates. The day the Company notifies Prudential of an Acceptance with respect to any Accepted Notes is herein called the “Acceptance Day” for such Accepted Notes. Any interest rate
quotes as to which Prudential does not receive an Acceptance within the Acceptance Window shall expire, and no purchase or sale of Shelf Notes hereunder shall be made based on such expired interest rate quotes. Subject to paragraph 2H and the other
terms and conditions hereof, the Company agrees to sell to Prudential or a Prudential Affiliate, and Prudential agrees to purchase, or to cause the purchase by a Prudential Affiliate of, the Accepted Notes at 100% of the principal amount of such
Shelf Notes. As soon as practicable following the Acceptance Day, the Company, Prudential and each Prudential Affiliate which is to purchase any such Accepted Notes will execute a confirmation of such Acceptance substantially in the form of
Exhibit C attached hereto (herein called a “Confirmation of Acceptance”). If the Company should fail to execute and return to Prudential within three Business Days following receipt thereof a Confirmation of Acceptance
with respect to any Accepted Notes, Prudential or any Prudential Affiliate may at its election at any time prior to its receipt thereof cancel the closing with respect to such Accepted Notes by so notifying the Company in writing. 
  

 5 

 2H. Market Disruption. Notwithstanding the provisions of paragraph 2G, if Prudential shall
have provided interest rate quotes pursuant to paragraph 2F and thereafter prior to the time an Acceptance with respect to such quotes shall have been notified to Prudential in accordance with paragraph 2G the domestic market for U.S. Treasury
securities or other financial instruments shall have closed or there shall have occurred a general suspension, material limitation, or significant disruption of trading in securities generally on the New York Stock Exchange or in the domestic market
for U.S. Treasury securities and other financial instruments, or, in the case of quotes with respect to Floating Rate Shelf Notes, a general suspension, material limitation or significant disruption affecting the London interbank market, then such
interest rate quotes shall expire, and no purchase or sale of Shelf Notes hereunder shall be made based on such expired interest rate quotes. If the Company thereafter notifies Prudential of the Acceptance of any such interest rate quotes, such
Acceptance shall be ineffective for all purposes of this Agreement, and Prudential shall promptly notify the Company that the provisions of this paragraph 2H are applicable with respect to such Acceptance. 
  
 2I. Facility Closings. Not later than 11:30 A.M. (New York City
local time) on the Closing Day for any Accepted Notes, the Company will deliver to each Purchaser listed in the Confirmation of Acceptance relating thereto at the offices of the Prudential Capital Group, 1170 Peachtree Street, Suite 500, Atlanta,
Georgia 30309, the Accepted Notes to be purchased by such Purchaser in the form of one or more Notes in authorized denominations as such Purchaser may request for each Series of Accepted Notes to be purchased on such Closing Day, dated such Closing
Day and registered in such Purchaser’s name (or in the name of its nominee), against payment of the purchase price thereof by transfer of immediately available funds for credit to the Company’s account specified in the Request for Purchase
of such Notes. If the Company fails to tender to any Purchaser the Accepted Notes to be purchased by such Purchaser on the scheduled Closing Day for such Accepted Notes as provided above in this paragraph 2I, or any of the conditions specified in
paragraph 3 shall not have been fulfilled by the time required on such scheduled Closing Day, the Company shall, prior to 1:00 P.M., New York City local time, on such scheduled Closing Day notify Prudential (which notification shall be deemed
received by each Purchaser) in writing whether (i) such closing is to be rescheduled (such rescheduled date to be a Business Day during the Issuance Period not less than one Business Day and not more than 10 Business Days after such scheduled
Closing Day (the “Rescheduled Closing Day”) and certify to Prudential (which certification shall be for the benefit of each Purchaser) that the Company reasonably believes that it will be able to comply with the conditions
set forth in paragraph 3 on such Rescheduled Closing Day and that the Company will pay the Delayed Delivery Fee, if applicable, in accordance with paragraph 2J(3) or (ii) such closing is to be canceled. In the event that the Company shall fail to
give such notice referred to in the preceding sentence, Prudential (on behalf of each Purchaser) may at its election, at any time after 1:00 P.M., New York City local time, on such scheduled Closing Day, notify the Company in writing that such
closing is to be canceled. Notwithstanding anything to the contrary appearing in this Agreement, the Company may elect to reschedule a closing with respect to any given Accepted Notes on not more than one occasion, unless Prudential shall have
otherwise consented in writing. 
  

 6 

 2J. Fees. 
  
 2J(1) Facility Fee. In consideration for the time, effort and expense involved in the preparation, negotiation
and execution of this Agreement, on the Amendment Closing Day, the Company will pay to Prudential in immediately available funds a nonrefundable fee (herein called the “Facility Fee”) in the amount of $30,000.00. 

 
 2J(2) Issuance Fee. The Company will pay to each Purchaser
in immediately available funds a fee (herein called the “Issuance Fee”) on each Closing Day (other than on the Amendment Closing Day) for Accepted Notes in an amount equal to 0.125% of the aggregate principal amount of Notes
sold to such Purchaser on such Closing Day. 
  
 2J(3)
Delayed Delivery Fee. If (a) the rate of interest specified in a Confirmation of Acceptance in respect of any Accepted Note is a fixed rate of interest and (b) the closing of the purchase and sale of such Accepted Note is delayed for
any reason beyond the original Closing Day for such Accepted Note, the Company will pay to the Purchaser of such Accepted Note (a) on the Cancellation Date or actual closing date of such purchase and sale and (b) if earlier, the next Business Day
following 90 days after the Acceptance Day for such Accepted Note and on each Business Day following 90 days after the prior payment hereunder, a fee (herein called the “Delayed Delivery Fee”) calculated as follows:

  
 (BEY - MMY) X DTS/360 X PA 
  
 where “BEY” means Bond Equivalent Yield, i.e., the bond equivalent
yield per annum of such Accepted Note, “MMY” means Money Market Yield, i.e., the yield per annum on a commercial paper investment of the highest quality selected by Prudential on the date Prudential receives notice of the
delay in the closing for such Accepted Note having a maturity date or dates the same as, or closest to, the Rescheduled Closing Day or Rescheduled Closing Days (a new alternative investment being selected by Prudential each time such closing is
delayed), “DTS” means Days to Settlement, i.e., the number of actual days elapsed from and including the original Closing Day with respect to such Accepted Note (in the case of the first such payment with respect to such
Accepted Note) or from and including the date of the next preceding payment (in the case of any subsequent payment of Delayed Delivery Fee with respect to such Accepted Note) to but excluding the date of such payment; and
“PA” means Principal Amount, i.e., the principal amount of the Accepted Note for which such calculation is being made. In no case shall the Delayed Delivery Fee be less than zero. If the foregoing calculation yields a
negative number or zero, no Delayed Delivery Fee shall be due. Nothing contained herein shall obligate any Purchaser to purchase any Accepted Note on any day other than the Closing Day for such Accepted Note, as the same may be rescheduled from time
to time in compliance with paragraph 2I. 
  
 2J(4)
Cancellation Fee. If (a) the rate of interest specified in a Confirmation of Acceptance in respect of any Accepted Note is a fixed rate of interest and (b) the Company at any time notifies Prudential in writing that the Company is
canceling the closing of the purchase and sale of such Accepted Note, or if Prudential notifies the Company in writing under the circumstances set forth in the last sentence of paragraph 2G or the penultimate sentence of paragraph 2I that the
closing of the purchase and sale of such Accepted Note is to be cancelled, 

  

 7 

 
or if the closing of the purchase and sale of such Accepted Note is not consummated on or prior to the last day of the Issuance Period (the date of any such
notification, or the last day of the Issuance Period, as the case may be, being herein called the “Cancellation Date”), the Company will pay the Purchasers in immediately available funds an amount (the
“Cancellation Fee”) calculated as follows: 
  
 PI X PA 
  
 where “PI” means Price Increase,
i.e., the quotient (expressed in decimals) obtained by dividing (a) the excess of the ask price (as determined by Prudential) of the Hedge Treasury Note(s) on the Cancellation Date over the bid price (as determined by Prudential) of the Hedge
Treasury Notes(s) having a maturity date the same as, or closest to, such Accepted Note, on the Acceptance Day for such Accepted Note (if the difference is a negative number or zero, no Cancellation Fee shall be due) by such bid price; and
“PA” has the meaning ascribed to it in paragraph 2J(3). The foregoing bid and ask prices shall be as reported by TradeWeb LLC (or, if such data for any reason ceases to be available through TradeWeb LLC, any publicly
available source of similar market data). Each price shall be rounded to the second decimal place. In no case shall the Cancellation Fee be less than zero. Nothing contained herein shall obligate any Purchaser to purchase any Accepted Note on any
day other than the Shelf Note Funding Date for such Accepted Note, as the same may be rescheduled from time to time in compliance with paragraph 2I. 
  
 2K. Certain Floating Rate Shelf Note Provisions. 
  

2K(1) Floating Rate Interest. 
  
 (i) Each Series of Floating Rate Shelf Notes shall evidence, at the time of issuance thereof, either a LIBOR Loan or a Base Rate Loan, as
provided in the applicable Confirmation of Acceptance (which Confirmation of Acceptance shall also specify, in the case of a LIBOR Loan, the initial Interest Period). Thereafter, in an irrevocable written notice from the Company by telecopier, U.S.
Mail or overnight delivery service received by each holder of a Note of such Series no later than 12:00 noon New York City time on the third Business Day prior to (A) the last day of each Interest Period with respect to any outstanding LIBOR Loan or
(B) the Business Day as of which the Company elects to convert a Base Rate Loan into a LIBOR Loan (except with respect to any LIBOR Loan or Base Rate Loan which is to be prepaid on such last day pursuant to paragraph 4C), the Company shall elect (a)
in the case of an outstanding LIBOR Loan, whether such outstanding LIBOR Loan is to be continued as a LIBOR Loan or converted into a Base Rate Loan and if such outstanding LIBOR Loan is to be continued as a LIBOR Loan, the applicable Interest Period
or (b) in the case of an outstanding Base Rate Loan being converted into a LIBOR Loan, the applicable Interest Period; provided that (x) at no time may more than three Interest Periods be in effect with respect to each Series of Floating Rate
Shelf Notes and (y) the Company may not select any Interest Period for any LIBOR Loan under any Series of Notes (1) that would extend beyond the maturity date of such Series of Notes, or (2) if, after giving effect to such selection the principal
amount of such LIBOR Loan would exceed the aggregate principal amount of the Notes of such Series to be outstanding after giving effect to any prepayment. Any such election by the Company with respect to any Series of Floating Rate Shelf Notes shall
apply to all Notes of such Series, on a pro rata basis in accordance with the outstanding principal amounts thereof. 
  

 8 

 (ii) If the Company fails to properly give any notice with respect to any outstanding
LIBOR Loan pursuant to paragraph 2K(1)(i) in a timely manner, the Company shall be deemed to have elected to continue such LIBOR Loan as a LIBOR Loan with an Interest Period of equivalent duration to the immediately preceding Interest Period.
Promptly after the beginning of each Interest Period, the holder of the greatest aggregate principal amount of the Notes of the applicable Series shall notify the Company of the LIBOR Rate for such Interest Period, but failure to give any such
notice shall not affect the obligations of the Company hereunder or under such Notes nor create any liability of any holder of such Notes to the Company. Each determination of the applicable interest rate on any portion of the outstanding principal
amount of the Notes for any Interest Period by the holder of the Notes of the applicable Series in accordance with this paragraph 2K(1)(ii) shall be conclusive and binding upon the Company and the holders of such Notes absent manifest error.

  
 (iii) Notwithstanding any of the foregoing
provisions of this paragraph 2K(1), if an Event of Default has occurred or is continuing at the end of any Interest Period, then the Company shall be deemed to have elected to convert such LIBOR Loan into a Base Rate Loan, and thereafter the Company
shall not have the right to maintain any Floating Rate Loan as a LIBOR Loan until there shall exist no Event of Default. 
  
 (iv) Interest on Floating Rate Shelf Notes shall (a) be payable (w) in the case of LIBOR Loans, in arrears on the last date of each
applicable Interest Period (provided that, in the case of any Interest Period in excess of three (3) months, interest shall also be payable in arrears on the date which occurs three (3) months after the first day of such Interest Period), (x)
in the case of Base Rate Loans, on the last Business Day of each calendar quarter and each date a Base Rate Loan is converted into a LIBOR Rate Loan, (y) in the case of any Floating Rate Loan, on the date of any prepayment of the Notes of such
Series (on the amount prepaid), (z) in the case of any Floating Rate Loan, at maturity of the Notes of such Series (whether by acceleration or otherwise) and after such maturity, on demand, and (b) be computed on the actual number of days elapsed in
a year of 360 days (in the case of LIBOR Loans) and in a year of 365/366 days (in the case of Base Rate Loans). 
  
 2K(2) Breakage Cost Indemnity. 
  
 (i) The Company agrees to indemnify each holder of Floating Rate Shelf Notes for, and to pay promptly to such holder upon written request,
any amounts required to compensate such holder on an after-tax basis for any losses (including lost profits or margin), costs or expenses sustained or incurred by such holder as a consequence of (a) any event (including any prepayment of Floating
Rate Shelf Notes as contemplated by paragraphs 4B or 4C or any acceleration of Floating Rate Shelf Notes in accordance with paragraph 7A) which results in (x) such holder receiving any amount on account of the principal of any LIBOR Loan prior to
the end of the Interest Period in effect therefore, (y) the conversion of a LIBOR Loan to a Base Rate Loan other than on the first day of the 

  

 9 

 
Interest Period in effect therefore, or (z) the closing of the purchase and sale of any Floating Rate Shelf Note beyond the original Closing Day specified in
the applicable Request for Purchase, or (b) any default in the making of any payment or prepayment of principal required to be made in respect of a LIBOR Loan (such amount being the “Breakage Cost Obligations”). 

 
 (ii) A certificate of any holder of Floating Rate Shelf
Notes setting forth any amount or amounts which such holder is entitled to receive pursuant to this paragraph 2K(2) shall be delivered to the Company and shall be conclusive absent manifest error. The Company agrees to pay such holder the amount
shown as due on any such certificate within five Business Days after its receipt of the same and shall have the right to notify such holder in writing of the details of any alleged manifest error whereupon the Company and such holder shall in good
faith endeavor to mutually resolve the same. 
  
 (iii) The provisions of this paragraph 2K(2) shall remain operative and in full force and effect regardless of the expiration of the term of this Agreement, the consummation of the transactions contemplated hereby, the repayment of any of
the Notes, the invalidity or unenforceability of any term or provision of this Agreement or any Note, or any investigation made by or on behalf of any holder of any Note. 
  
 2K(3) Reserve Requirement; Change in Circumstances. 
  
 (i) Notwithstanding any other provision of this Agreement,
if after the date of this Agreement any change in applicable law or regulation or in the interpretation or administration thereof by any Governmental Authority charged with the interpretation or administration thereof (whether or not having the
force of law) shall change the basis of taxation of payments to any holder of a Floating Rate Shelf Note of the principal of or interest on any Floating Rate Shelf Note or any fees, expenses or indemnities payable hereunder (other than changes in
respect of taxes imposed on the overall net income of such holder by the United States or the jurisdiction in which such holder has its principal office or by any political subdivision or taxing authority therein), or shall impose, modify or deem
applicable any reserve, special deposit or similar requirements against assets of, deposits with or for the account of or credit extended by any holder of Floating Rate Shelf Notes or shall impose on such holder or the London interbank market any
other condition affecting this Agreement or LIBOR Loans made by such holder and the result of any of the foregoing shall be to increase the cost to such holder of making or maintaining any LIBOR Loan or to reduce the amount of any payment received
or receivable by such holder hereunder or under any of the Floating Rate Shelf Notes (whether of principal, interest or otherwise) by an amount deemed by such holder to be material, then the Company agrees to pay to such holder in accordance with
clause (iii) below such additional amount or amounts as will compensate such holder for such additional costs incurred or reduction suffered. 
  
 (ii) If any holder of a Floating Rate Shelf Note shall have determined that the adoption after the date hereof of any law, rule,
regulation, agreement or guideline regarding capital adequacy, or any amendment or modification after the date hereof to or of any such law, rule, regulation, agreement or guideline (whether such law, rule, 

  

 10 

 
regulation, agreement or guideline had been originally adopted before or after the date hereof) or any change after the date hereof in the interpretation or
administration of any such law, rule, regulation, agreement or guideline by any Governmental Authority charged with the interpretation or administration thereof, or compliance by such holder with any request, guideline or directive (whether or not
having the force of law) regarding capital adequacy of any Governmental Authority or the National Association of Insurance Commissioners has or would have the effect of reducing the rate of return on such holder’s capital as a consequence of
the LIBOR Loans made pursuant hereto to a level below that which such holder could have achieved but for such applicability, adoption, change or compliance (taking into consideration such holder’s policies with respect to capital adequacy) by
an amount deemed by such holder to be material, then from time to time the Company agrees to pay to such holder such additional amount or amounts as will compensate such holder for any such reduction suffered. 
  
 (iii) A certificate of any holder of Floating Rate Shelf
Notes setting forth the amount or amounts necessary to compensate such holder as specified in clause (i) or (ii) above shall be delivered to the Company and shall be conclusive absent manifest error. The Company agrees to pay such holder the amount
shown as due on any such certificate within five Business Days after its receipt of the same and shall have the right to notify such holder in writing of the details of any alleged manifest error whereupon the Company and such holder shall in good
faith endeavor to mutually resolve the same. 
  
 (iv) Failure or delay on the part of any holder of Notes to demand compensation for any increased costs or reduction in amounts received or receivable or reduction in return on capital shall not constitute a waiver of such holder’s
right to demand such compensation with respect to such period or any other period. The protection of this paragraph 2K(3) shall be available to any such holder regardless of any possible contention of the invalidity or inapplicability of the law,
rule, regulation, agreement, guideline or other change or condition that shall have occurred or been imposed. 
  
 (v) The provisions of this paragraph 2K(3) shall remain operative and in full force and effect regardless of the occurrence of the
expiration of the term of this Agreement, the consummation of the transactions contemplated hereby, the repayment of any of the Notes, the invalidity or unenforceability of any term or provision of this Agreement or any Note, or any investigation
made by or on behalf of any holder of Notes. 
  
 2K(4)
Illegality. 
  
 (i) Notwithstanding
any other provision of this Agreement, if, after the date hereof, any change in any law or regulation or in the interpretation thereof by any Governmental Authority charged with the administration or interpretation thereof shall make it unlawful for
any holder of Floating Rate Shelf Notes to make or maintain any LIBOR Loan or to give effect to its obligations as contemplated hereby with respect to any LIBOR Loan, then (a) such holder shall promptly notify the Company in writing of such
circumstances (which notice shall be withdrawn when such holder determines that 

  

 11 

 
such circumstances no longer exist), (b) the obligation of such holder to make LIBOR Loans, to continue LIBOR Loans or to convert Base Rate Loans to LIBOR
Loans shall forthwith be canceled and, until such time as it shall no longer be unlawful for such holder to make or maintain LIBOR Loans, such holder shall then be obligated only to make or maintain Base Rate Loans and (c) such holder may require
that all LIBOR Loans made by it be converted to Base Rate Loans, in which event all such LIBOR Loans shall be automatically converted to Base Rate Loans as of the effective date of such notice as provided in clause (ii) below. 
  
 (ii) For purposes of this paragraph 2K(4), a notice to the
Company by any holder of Notes shall be effective as to each LIBOR Loan made by such holder, if lawful, on the last day of the Interest Period then applicable to such LIBOR Loan; in all other cases such notice shall be effective on the date of
receipt by the Company. If any such conversion of a LIBOR Loan occurs on a day which is not the last day of the then applicable Interest Period with respect thereto, the Company agrees to pay such holder such amounts, if any, as may be required
pursuant to paragraph 2K(2). 
  
 2K(5) Inability to
Determine Interest Rate. If on or prior to the first day of any Interest Period, the holder of the greatest aggregate principal amount of the applicable Series of Floating Rate Shelf Notes shall have determined (which determination shall be
conclusive and binding upon the Company) that, by reason of circumstances affecting the London interbank market, adequate and reasonable means do not exist for ascertaining the LIBOR Rate for such Interest Period in accordance with the definition of
“LIBOR Rate”, such holder shall give telefacsimile or telephonic notice thereof to the Company as soon as practicable thereafter. If such notice is given, (i) any LIBOR Loans of such Series or Base Rate Loans of such Series that were to
have been converted on the first day of such Interest Period to or continued as LIBOR Loans of such Series shall be converted to or continued as Base Rate Loans of such Series and (ii) unless such notice is withdrawn, any other outstanding LIBOR
Loans of such Series shall be converted, at the end of the then applicable Interest Period, to Base Rate Loans. Until such notice has been withdrawn by such holder no further LIBOR Loans shall be made or continued as such and the Company shall no
longer have the right to convert Base Rate Loans to LIBOR Loans. 
  
 2K(6) Default Rate. If any principal of or interest on any LIBOR Loan or Base Rate Loan, any Breakage Cost Obligations payment or any other amount payable hereunder or under any Floating Rate Shelf Note is not paid when due,
to the extent permitted by applicable law interest thereon at the Default Rate shall be payable from and including the due date until paid. Such interest on any such amount shall be payable on the date such amount is paid or, at the option of the
Person to whom such amount is payable, from time to time upon demand by such Person. 
  
 2K(7) Interest Rate Limitation. Notwithstanding anything herein to the contrary, if at any time the applicable interest rate, together with all fees and charges which are treated as interest under
applicable law (collectively, the “Charges”), as provided for herein or in any other document executed in connection herewith, or otherwise contracted for, charged, received, taken or reserved by any holder of a Floating Rate
Shelf Note, shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by such holder in accordance with applicable law, the rate of interest payable on such
Floating Rate Shelf Note, together with all Charges payable to such holder shall be limited to the Maximum Rate. 
  

 12 

 3. CONDITIONS OF CLOSING. The obligation of any Purchaser to purchase and pay for any other
Notes is subject to the satisfaction of (i) all of the conditions set forth in this paragraph 3 other than paragraph 3A(2) on or before the closing date, December 10, 2004 (hereinafter “Amendment Closing Day”), which closing
shall occur at the offices of King & Spalding, 1185 Avenue of the Americas, New York, New York, and (ii) all of the conditions set forth in this paragraph 3 other than paragraph 3A(1) on or before such other Closing Day for the purchase of any
Notes: 
  
 3A. Certain Documents. Such Purchaser
shall have received the following: 
  
 3A(1) Amendment
Closing Day. Such Purchaser shall have received, each dated the date of the Amendment Closing Day: 
  
 (i) This Agreement and an Allonge for each holder of Issued Series A Notes duly executed by the parties hereto; 
  
 (ii) Each Guaranty Agreement duly executed by the applicable
Guarantor; 
  
 (iii) Certified copies of the
resolutions of (A) the Board of Directors of the Company authorizing the execution and delivery of this Agreement and the issuance of the Notes, and of all documents evidencing other necessary corporate action and governmental approvals, if any,
with respect to this Agreement and the Notes and (B) the Board of Directors, Managers or Members, as applicable, of each Guarantor authorizing the execution and delivery of its Guaranty Agreement and of all documents evidencing other necessary
corporate action and governmental approvals, if any, with respect to its Guaranty Agreement; 
  
 (iv) A certificate of the Secretary or an Assistant Secretary, or manager or member, as applicable, and one other officer of (A) the
Company certifying the names and true signatures of the officers of the Company authorized to sign this Agreement and the Notes and the other documents to be delivered hereunder and (B) each Guarantor certifying the names and true signatures of the
officers of such Guarantor authorized to sign its Guaranty Agreement and the other documents to be delivered thereunder; 
  
 (v) Certified copies of the Articles of Incorporation and By-laws or the Certificate of Organization and Operating Agreement, as
applicable, of the Company and each Guarantor; 
  
 (vi) A good standing certificate for (A) the Company from the Secretary of State of Florida and (B) each Guarantor (other than Gemaire Caribe, Inc.) from the Secretary of State of the State of its formation, each dated as of a recent date
and good standing and such other evidence of the status of the Company or such Guarantor as such Purchaser may reasonably request; 
  

 13 

 (vii) A favorable opinion of Moore Van Allen, PLLC, special counsel to the Company (or
such other counsel designated by the Company and acceptable to the Purchaser(s)) satisfactory to such Purchaser and substantially in the form of Exhibit D-1 attached hereto and as to such other matters as such Purchaser may reasonably request. The
Company hereby directs each such counsel to deliver such opinion, agrees that the issuance and sale of any Notes will constitute a reconfirmation of such direction, and understands and agrees that each Purchaser receiving such an opinion will and is
hereby authorized to rely on such opinion; 
  
 (viii) [Reserved.] 
  
 (ix) Additional
documents or certificates with respect to legal matters or corporate or other proceedings related to the transactions contemplated hereby as may be reasonably requested by such Purchaser. 
  
 3A(2) Subsequent Closing Day. Such Purchaser shall have received, each dated the date of the applicable
Closing Day: 
  
 (i) Certified copies of the
resolutions of the Board of Directors of the Company authorizing the execution and delivery and the issuance of the Notes on such Closing Day, and of all documents evidencing other necessary corporate action and governmental approvals, if any, with
respect to such Notes; 
  
 (ii) A certificate of
the Secretary or an Assistant Secretary and one other officer of the Company certifying the names and true signatures of the officers of the Company authorized to sign such Notes and the other documents to be delivered hereunder; 
  
 (iii) Certified copies of the Articles of Incorporation and
By-laws of the Company or confirmation that there have been no modifications to such documents delivered on the Amendment Closing Day; 
  
 (iv) A good standing certificate for the Company from the Secretary of State of Florida dated of a recent date and good standing and such
other evidence of the status of the Company as such Purchaser may reasonably request; and 
  
 (v) A favorable opinion of Moore Van Allen, PLLC, special counsel to the Company (or such other counsel designated by the Company and
acceptable to the Purchaser(s)) satisfactory to such Purchaser and substantially in the form of Exhibit D-3 attached hereto and as to such other matters as such Purchaser may reasonably request. The Company hereby directs each such counsel to
deliver such opinion, agrees that the issuance and sale of any Notes will constitute a reconfirmation of such direction, and understands and agrees that each Purchaser receiving such an opinion will and is hereby authorized to rely on such opinion.

  
 (vi) [Reserved.] 
  

 14 

 (vii) A Private Placement number issued by Standard & Poor’s CUSIP Service
Bureau (in cooperation with the Securities Valuation Office of the National Association of Insurance Commissioners) shall have been obtained for the Notes to be purchased. 
  
 (viii) Additional documents or certificates with respect to legal matters or corporate or other proceedings
related to the transactions contemplated hereby as may be reasonably requested by such Purchaser. 
  
 3B. Opinion of Purchaser’s Special Counsel. Such Purchaser shall have received from King & Spalding or such other counsel who is
acting as special counsel for it in connection with this transaction, a favorable opinion satisfactory to such Purchaser as to such matters incident to the matters herein contemplated as it may reasonably request. 
  
 3C. Representations and Warranties; No Default. The
representations and warranties contained in paragraph 8 shall be true on and as of such Closing Day, except to the extent of changes caused by the transactions herein contemplated and for any Closing Day after the Amendment Closing Day changes since
the date of this Agreement which are disclosed in writing to Prudential and to which Prudential shall have consented in writing; there shall exist on such Closing Day no Event of Default or Default; and the Company shall have delivered to such
Purchaser an Officer’s Certificate, dated such Closing Day, to both such effects. 
  
 3D. Purchase Permitted by Applicable Laws. The purchase of and payment for the Notes to be purchased by such Purchaser on the terms and conditions herein provided (including the use of the proceeds of
such Notes by the Company) shall not violate any applicable law or governmental regulation (including, without limitation, Section 5 of the Securities Act or Regulation T, U or X of the Board of Governors of the Federal Reserve System) and shall not
subject such Purchaser to any tax (other than any income taxes arising from such Purchaser’s ownership of the Notes), penalty, liability or other onerous condition under or pursuant to any applicable law or governmental regulation, and such
Purchaser shall have received such certificates or other evidence as it may request to establish compliance with this condition. 
  
 3E. Payment of Fees. The Company shall have paid to Prudential any fees due it pursuant to or in connection with this Agreement, including
any Facility Fee due pursuant to paragraph 2J(1), any Issuance Fee due pursuant to paragraph 2J(2) and any Delayed Delivery Fee due pursuant to paragraph 2J(3) and any fees and expenses of its legal counsel. 
  
 3F. No Material Adverse Effect. Prudential shall have received
a certificate from the chief financial officer of the Company, dated the applicable Closing Day, stating that since December 31, 2003, there shall have been no change which has had or could reasonably be expected to have a Material Adverse Effect.

  
 3G. Guaranty Agreements. Each Guaranty
Agreement, on and after the date of its execution and delivery, shall remain in full force and effect, and the Company shall have delivered an Officer’s Certificate, dated such Closing Day, to such effect. 
  
 4. PREPAYMENTS. Any Notes shall be subject to required
prepayment as and to the extent provided in paragraph 4A. Any Notes shall also be subject to prepayment under the 

  

 15 

 
circumstances set forth in paragraphs 4B and 4F. Any prepayment made by the Company pursuant to any other provision of this paragraph 4 shall not reduce or
otherwise affect its obligation to make any required prepayment as specified in paragraph 4A. 
  
 4A. Required Prepayments of Notes. Until the Issued Series A Notes shall be paid in full, the Company shall apply to the prepayment of the Issued Series A Notes, without Yield-Maintenance Amount, the sum
of $10,000,000 on each of April 9, 2005 and April 9, 2006, and such principal amounts of the Issued Series A Notes, together with interest thereon to the payment dates, shall become due on such payment dates. The remaining unpaid principal amount of
the Issued Series A Notes, together with interest accrued thereon, shall become due on the maturity date of the Issued Series A Notes. Each other Series of Shelf Notes shall be subject to required prepayments, if any, set forth in the Notes of such
Series. 
  
 4B. Optional Prepayments.  

 
 (i) Each Issued Series A Note and Series of Fixed Rate
Shelf Notes shall be subject to prepayment, in whole at any time or from time to time in part (in integral multiples of $1,000,000 and in a minimum amount of $5,000,000), at the option of the Company, at 100% of the principal amount so prepaid plus
interest thereon to the prepayment date and the Yield-Maintenance Amount, if any, with respect to each such Note. Any partial prepayment of a Series of the Notes pursuant to this paragraph 4B(i) shall be applied in satisfaction of required payments
of principal in inverse order of their scheduled due dates. 
  
 (ii) Each Series of Floating Rate Shelf Notes shall be subject to prepayment, in whole at any time or from time to time in part (in integral multiples of $1,000,000 and in a minimum amount of $5,000,000 or, if less,
the aggregate principal amount outstanding in respect of the Notes of such Series), at the option of the Company, in an amount equal to the sum of (A) the product of the principal amount so prepaid multiplied by the Prepayment Compensation
Percentage, plus, (B) interest thereon to the prepayment date, if any, with respect to each such Note; provided, however, that if any Notes are prepaid pursuant to this paragraph 4B(ii) on any day other than the last day of the
applicable Interest Period, then such prepayment will be subject to paragraph 2C(2) and concurrently with such prepayment the Company shall pay any Breakage Cost Obligations payable thereunder. 
  
 4C. Notice of Optional Prepayment. The Company shall give the
holder of each Note of a Series to be prepaid pursuant to paragraph 4B irrevocable written notice of such prepayment not less than 10 Business Days prior to the prepayment date, specifying such prepayment date, the aggregate principal amount of the
Notes of such Series to be prepaid on such date, the principal amount of the Notes of such Series held by such holder to be prepaid on that date and that such prepayment is to be made pursuant to paragraph 4B. Notice of prepayment having been given
as aforesaid, the principal amount of the Notes specified in such notice, together with interest thereon to the prepayment date and together with the Yield-Maintenance Amount, if any, Prepayment Compensation Amount, if any, and Breakage Cost
Obligations, if any, herein provided, shall become due and payable on such prepayment date. The Company shall, on or 

  

 16 

 
before the day on which it gives written notice of any prepayment pursuant to paragraph 4B, give telephonic notice of the principal amount of the Notes to be
prepaid and the prepayment date to each Significant Holder which shall have designated a recipient for such notices in the Purchaser Schedule attached hereto or the applicable Confirmation of Acceptance or by notice in writing to the Company.

  
 4D. Reserved. 
  
 4E. Allocation of Partial Prepayments. In the case of each
prepayment of less than the entire unpaid principal amount of all outstanding Notes of any Series pursuant to paragraphs 4A or 4B, the amount to be prepaid shall be applied pro rata to all outstanding Notes of such Series (including, for the purpose
of this paragraph 4E only, all Notes prepaid or otherwise retired or purchased or otherwise acquired by the Company or any of its Subsidiaries or Affiliates other than by prepayment pursuant to paragraph 4A or 4B) according to the respective unpaid
principal amounts thereof. 
  
 4F. Offer to Prepay Notes in
the Event of a Change in Control. 
  
 4F(1) Notice
of Impending Change in Control. The Company shall give to each holder of Notes prompt written notice of any impending Change in Control for which it has received a written offer or notice. 
  
 4F(2) Notice of Occurrence of Change in Control. The Company
will, within five Business Days after any Responsible Officer has knowledge of the occurrence of any Change in Control, give written notice of such Change in Control to each holder of Notes. If a Change in Control has occurred and in connection
therewith (i) the Availability Period (as defined in the Bank Agreement), the Commitment Termination Date (as defined in the Bank Agreement), or any other similar or corresponding terms used in the Bank Agreement, is reduced or accelerated (whether
by waiver, amendment, or otherwise), (ii) any Debt under the Bank Agreement becomes due and payable or is required to be prepaid or redeemed (other than by a regularly scheduled required prepayment or redemption), purchased or defeased or (iii) any
Commitments (as defined in the Bank Agreement) under the Bank Agreement are terminated, then such notice shall contain and constitute an offer to prepay the Notes as described in paragraphs 4F(3) and 4F(5) and shall be accompanied by the certificate
described in paragraph 4F(6) hereof. 
  
 4F(3) Offer to
Prepay Notes. The offer to prepay Notes contemplated by the foregoing paragraph 4F(2) shall be an offer to prepay, in accordance with and subject to this paragraph 4F, all, but not less than all, the Notes held by each holder (in this case
only, “holder” in respect of any Note registered in the name of a nominee for a disclosed beneficial owner shall mean such beneficial owner) on a date specified in such offer (the “Proposed Prepayment Date”). Such
Proposed Prepayment Date shall be not less than 30 days and not more than 90 days after the date of such offer (if the Proposed Prepayment Date shall not be specified in such offer, the Proposed Prepayment Date shall be the 60th day after the date of such offer). 
  
 4F(4) Rejection, Acceptance. A holder of Notes may accept the offer to prepay made pursuant to this paragraph 4F by causing a notice of such
acceptance to be delivered to the Company no later than seven Business Days prior to the Proposed Prepayment Date. A failure 

  

 17 

 
by a holder of Notes to respond to an offer to prepay made pursuant to this paragraph 4F within such seven Business Day period shall be deemed to constitute
a rejection of such offer by such holder. 
  
 4F(5)
Prepayment. Prepayment of the Notes to be prepaid pursuant to this paragraph 4F shall be at 100% of the principal amount of such Notes, together with interest on such Notes accrued but unpaid to the date of prepayment and any
applicable Breakage Cost Obligations. The prepayment shall be made on the Proposed Prepayment Date. No Yield-Maintenance Amount shall be payable in connection with any prepayment under this paragraph 4F. 
  
 4F(6) Officer’s Certificate. Each offer to prepay the
Notes pursuant to this paragraph 4F shall be accompanied by a certificate, executed by a Responsible Officer of the Company and dated the date of such offer, specifying: (a) the Proposed Prepayment Date; (b) that such offer is made pursuant to this
paragraph 4F; (c) the principal amount of each Note offered to be prepaid; (d) the interest that would be due on each Note offered to be prepaid, accrued to the Proposed Prepayment Date; (e) that the conditions of paragraphs 4F(2), 4F(3), 4F(5) and
4F(6) have been fulfilled; and (f) in reasonable detail, the nature and date of the Change in Control. 
  
 4F(7) Termination of Effectiveness. Immediately upon the effectiveness of an amendment of the Bank Agreement such that a Change of Control
shall cease to constitute an “Event of Default” thereunder and not otherwise cause a prepayment or commitment reduction thereunder, the provisions of this paragraph 4F shall no longer be applicable to the Notes. 
  
 4G. Maturity; Surrender, Etc. In the case of the prepayment of
Notes pursuant to this paragraph 4, the principal amount of each Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment, together with interest on such principal amount accrued but unpaid prior to such date
and the applicable Yield-Maintenance Amount, Prepayment Compensation Amount and Breakage Cost Obligations, if any. From and after such date, unless prior thereto the Company shall fail to pay such principal amount when so due and payable, together
with the interest and the applicable Yield-Maintenance Amount, Prepayment Compensation Amount and Breakage Cost Obligations, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any Note paid or prepaid in full shall be
surrendered to the Company and canceled and the Company shall be immediately discharged from any obligation under such Notes. 
  
 4H. Retirement of Notes. The Company shall not, and shall not permit any of its Subsidiaries or Affiliates to, prepay or otherwise retire in
whole or in part prior to their stated final maturity (other than by prepayment pursuant to paragraphs 4A, 4B or 4F or upon acceleration of such final maturity pursuant to paragraph 7A), or purchase or otherwise acquire, directly or indirectly,
Notes of any Series held by any holder unless the Company or such Subsidiary or Affiliate shall have offered to prepay or otherwise retire or purchase or otherwise acquire, as the case may be, the same proportion of the aggregate principal amount of
Notes of such Series held by each other holder of Notes of such Series at the time outstanding upon the same terms and conditions. Any Notes so prepaid or otherwise retired or purchased or otherwise acquired by the Company or any of its Subsidiaries
or Affiliates shall not be deemed to be outstanding for any purpose under this Agreement, except as provided in paragraph 4E. 
  

 18 

 5. AFFIRMATIVE COVENANTS. 
  
 5A. Reporting Requirements.  
  
 5A(1) General Information. The Company covenants that it will deliver to each Significant Holder: 

 
 (i) as soon as practicable and in any event within 40
days after the end of each quarterly period (other than the fourth quarterly period) in each fiscal year, 
  
 (1) Consolidated statements of income, stockholders’ equity and cash flows for the period from the beginning of the current fiscal
year to the end of such quarterly period, and 
  
 (2) a Consolidated balance sheet as at the end of such quarterly period, 
  
 setting forth in each case in comparative form figures for the corresponding period in the preceding fiscal year, all in reasonable detail and reasonably satisfactory in form to the Required Holder(s) and certified by
an authorized financial officer of the Company as fairly presenting, in all material respects, the financial condition of the Company and its Consolidated Subsidiaries as of the end of such period and the results of their operations for the period
then ended in accordance with generally accepted accounting principles, subject to changes resulting from normal year-end adjustments and the inclusion of abbreviated footnotes; provided, however, that delivery pursuant to clause (iii) below
of copies of the Quarterly Report on Form 10-Q of the Company for such quarterly period filed with the Securities and Exchange Commission shall be deemed to satisfy the requirements of this clause (i); 
  
 (ii) as soon as practicable and in any event within 75 days
after the end of each fiscal year, 
  
 (1)
Consolidated statements of income, stockholders’ equity and cash flows for such year, and 
  
 (2) a Consolidated balance sheet as at the end of such year, 
  
 setting forth in each case in comparative form corresponding Consolidated figures from the preceding annual audit, all in
reasonable detail and reasonably satisfactory in scope to the Required Holder(s) and reported on by independent public accountants of recognized standing selected by the Company whose report shall be without limitation as to the scope of the audit
and reasonably satisfactory in substance to the Required Holder(s); provided, however, that delivery pursuant to clause (iii) below of copies of the Annual Report on Form 10-K of the Company for such year filed with the Securities and
Exchange Commission shall be deemed to satisfy the requirements of this clause (ii); 
  
 (iii) if the Company shall be publicly held, promptly upon transmission thereof, copies of all such financial statements, proxy statements, notices, certificates and reports as it shall send to its public stockholders
and copies of all registration statements 

  

 19 

 
(without exhibits) and all reports (other than any registration statement filed on Form S-8) and certificates which it files with the Securities and Exchange
Commission (or any governmental body or agency succeeding to the functions of the Securities and Exchange Commission), including without limitation the certifications of the chief executive officer and the chief financial officer described in
Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 (as amended from time to time); 
  
 (iv) promptly upon receipt thereof, a copy of each other report (including, without limitation, management letters) submitted to the
Company or any Subsidiary by independent accountants in connection with any annual, interim or special audit made by them of the books of the Company or any Subsidiary; 
  
 (v) promptly upon receipt thereof, a copy of each report, survey, study, evaluation, assessment or other
document prepared by any consultant, engineer, Environmental Authority or other Person relating to compliance by the Company or any Subsidiary with any Environmental Requirements, if the cost of remediation, repair or compliance may be reasonably
expected to exceed $250,000 in any one case or in the aggregate; 
  
 (vi) with reasonable promptness, upon the request of the holder of any Note, provide such holder, and any qualified institutional buyer designated by such holder, such financial and other information as such holder
may reasonably determine to be necessary in order to permit compliance with the information requirements of Rule 144A under the Securities Act in connection with the resale of Notes, except at such times as the Company is subject to the reporting
requirements of Section 13 or 15(d) of the Exchange Act. For the purpose of this clause (vi), the term “qualified institutional buyer” shall have the meaning specified in Rule 144A under the Securities Act; and 
  
 (vii) with reasonable promptness, such other data relating
to the business, operations, properties or financial condition of the Company or any of its Subsidiaries as a Significant Holder may reasonably request; 
  
 5A(2) Officer’s Certificates. Together with each delivery of financial statements required by clauses 5A(i) and (ii) above, the Company
will deliver to each Significant Holder an Officer’s Certificate demonstrating (with computations in reasonable detail) compliance with the provisions of paragraphs 6A, 6B(1), 6B(2), 6B(3) and 6C and stating that there exists no Event of
Default or Default, or, if any Event of Default or Default exists, specifying the nature and period of existence thereof and what action the Company has taken, is taking or proposes to take with respect thereto. 
  
 5A(3) Special Information. The Company also covenants that
immediately after any Responsible Officer obtains actual knowledge of: 
  
 (a) an Event of Default or Default; 
  
 (b) a material adverse change in the financial condition, business or operations of the Company and its Subsidiaries, taken as a whole; 
  

 20 

 (c) legal proceedings filed or commenced against, or to the knowledge of the Company,
affecting the Company and/or any Subsidiary, which reasonably could be expected to have a Material Adverse Effect or which in any manner draws into question the validity of this Agreement or the Notes; 
  
 (d) a default under any agreement or note evidencing Debt
for which the Company or any Subsidiary is liable; 
  
 (e) the occurrence of any other event that reasonably could be expected to impair the ability of the Company to meet its obligations hereunder; 
  
 (f) any (i) Environmental Liabilities, (ii) pending, threatened or anticipated Environmental Proceedings, (iii) Environmental Notices,
(iv) Environmental Judgments and Orders, or (v) Environmental Releases at, on, in, under or in any way affecting the Properties which reasonably could be expected to have a Material Adverse Effect; 
  
 (g) the occurrence of any other event that results in, or
could reasonably be expected to result in, a Material Adverse Effect; 
  
 (h) the occurrence of any ERISA Event that alone, or together with any other ERISA Events that have occurred, could reasonably be expected to result in liability of the Company and its Subsidiaries in an aggregate
amount exceeding $1,000,000; or 
  
 (i) any
change in the fiscal year of the Company or any Subsidiary, except to change the fiscal year of a Subsidiary to conform its fiscal year to that of the Company; 
  

the Company will deliver to each Significant Holder an Officer’s Certificate specifying the nature and period of existence thereof and what action the Company or
the Subsidiary has taken, is taking or proposes to take with respect thereto. 
  
 5B. Inspection of Property. The Company covenants that, at such reasonable times and upon reasonable notice and as often as a Significant Holder may reasonably request, it will permit any Person
designated by a Significant Holder in writing, at such Significant Holder’s expense unless a Default has occurred and is continuing in which case at the Company’s expense, to: 
  
 (i) visit and inspect any of the properties of the Company and any Subsidiary; 
  
 (ii) examine the corporate books and financial records of
the Company and its Subsidiaries and make copies thereof or extracts therefrom; and 
  
 (iii) discuss the affairs, finances and accounts of any of such corporations with the principal officers of the Company or any Subsidiary
and their independent public accountants. 
  
 5C. Covenant
to Secure Notes Equally. The Company covenants that if it or any Subsidiary shall create or assume any Lien upon any of its property or assets, whether now owned or hereafter acquired, other than Liens permitted by paragraph 6B(1) (unless
prior written 

  

 21 

 
consent shall have been obtained under paragraph 11C), it will make or cause to be made effective provision whereby the Notes will be secured by such Lien
equally and ratably with any and all other Debt thereby secured so long as any such other Debt shall be so secured. 
  
 5D. Guaranteed Obligations. The Company covenants that if any Person (other than the Company) Guarantees or provides collateral in any
manner for any Debt of the Company or any Subsidiary other than as permitted by paragraph 6B(1), it will simultaneously cause such Person to Guarantee or provide collateral for the Notes equally and ratably with all Debt Guaranteed or secured by
such Person for so long as such Debt is Guaranteed and pursuant to documentation in form and substance reasonably satisfactory to such holder. Subject to the foregoing, the Company shall cause each of its Subsidiaries not existing as of the date
hereof to execute and deliver a guaranty agreement, in substantially the form of the Guaranty Agreements, as soon as practicable and in any event within thirty days of the creation or acquisition of any such Subsidiary. The delivery of such guaranty
agreement shall be accompanied by such other documents as the Required Holders may reasonably request including charter, bylaws, appropriate resolutions of the Board of Directors of any such Subsidiary providing such a guaranty agreement and legal
opinions. Upon the delivery thereof, such guaranty agreement and such other documents shall constitute Related Documents hereunder. 
  
 5E. Maintenance of Insurance. The Company covenants that it and each Subsidiary will maintain, with responsible insurers, insurance with
respect to its properties and business against such casualties and contingencies (including, but not limited to, public liability, larceny, embezzlement or other criminal misappropriation) and in such amounts as is customary in the case of similarly
situated corporations engaged in the same or similar businesses. 
  
 5F. Maintenance of Legal Existence/Compliance with Law/Preservation of Property. The Company covenants that, except as permitted under paragraphs 6B(3) and 6C, it and each Subsidiary will do or cause to be done all things
necessary to, at all times: 
  
 (i) preserve,
renew and maintain in full force and effect its legal existence of the Company and its Subsidiaries and continue to engage in the same business as presently conducted or such other businesses that are reasonably related thereto; provided,
however, the Company shall not be required to preserve the legal existence of any Subsidiary if the Company reasonably determines that the preservation thereof is no longer necessary or desirable in the conduct of the business of the Company and
its Subsidiaries taken as a whole. 
  
 (ii)
comply with all laws and regulations (including, without limitation, laws and regulations relating to equal employment opportunity and employee safety) applicable to it and any Subsidiary, except where the failure to comply, either individually or
in the aggregate, could not reasonably be expected to result in a Material Adverse Effect; 
  
 (iii) maintain, preserve and protect all material licenses, certificates, permits, franchises and intellectual property of the Company and
its Subsidiaries; and 
  

 22 

 (iv) preserve all the remainder of its property used or useful in the conduct of its
business and keep the same in good repair, working order and condition excluding normal wear and tear, except where the failure to preserve such property, either individually or in the aggregate, could not reasonably be expected to have a Material
Adverse Effect. 
  
 5G. Compliance with Environmental
Laws. The Company covenants that it and each Subsidiary will, comply in a timely fashion with, or operate pursuant to valid waivers of the provisions of, all applicable Environmental Requirements, including, without limitation, the emission
of wastewater effluent, solid and hazardous waste and air emissions together with any other applicable Environmental Requirements for conducting, on a timely basis, periodic tests and monitoring for contamination of ground water, surface water, air
and land and for biological toxicity of the aforesaid, and all applicable regulations of the Environmental Protection Agency or other relevant Governmental Authority, except where the failure to comply could not reasonably be expected to have a
Material Adverse Effect. The Company agrees to indemnify and hold you, your officers, agents and employees (each an “Indemnified Person”) harmless from any loss, liability, claim or expense that you may incur or suffer as a
result of a breach by the Company or any Subsidiary, as the case may be, of this covenant other than as a result of the gross negligence or willful misconduct of such Indemnified Person. The Company shall not be deemed to have breached or violated
this paragraph 5G if the Company or any Subsidiary is challenging in good faith by appropriate proceedings diligently pursued the application or enforcement of such Environmental Requirements for which adequate reserves have been established in
accordance with generally accepted accounting principles. 
  
 5H.
No Integration. The Company covenants that it has taken and will take all necessary action so that the issuance of the Notes does not and will not require registration under the Securities Act. The Company covenants that no future
offer and sale of debt securities of the Company of any class will be made if there is a reasonable possibility that such offer and sale would, under the doctrine of “integration”, subject the issuance of the Notes to you to the
registration requirements of the Securities Act. 
  
 5I.
Financial Records. The Company covenants that it and each Subsidiary will keep proper books of record and account in which full and correct entries (in all material respects and subject to normal year end adjustments and, as to interim
statements, the absence of footnotes) will be made of the business and affairs of the Company or such Subsidiary under generally accepted accounting principles consistently applied (except for changes disclosed in the financial statements furnished
to you pursuant to paragraph 5A and concurred in by the independent public accountants referred to in paragraph 5A). 
  
 5J. Other Covenants. If (in the reasonable opinion of the Required Holders) at any time and from time to time, after the date hereof, any of
the material covenants, material representations and warranties or material events of default, or any other material term or provision (other than any term or provision relating to payment terms, interest rates or penalties) (collectively,
“Material Provisions”), contained in any document evidencing any Debt in excess of $10,000,000, or in any document, agreement or instrument from time to time entered into by the Company in respect thereof (collectively, the
“Other Debt Documents”), is more favorable to the lender or beneficiary under such Other Debt Documents than are the terms of this Agreement 

  

 23 

 
to the holders of the Notes, this Agreement shall be deemed amended to contain each more favorable Material Provision on the same basis and to the extent
that such Material Provisions are reflected in such Other Debt Documents. The Company hereby agrees to so amend this Agreement and to execute and deliver all such documents required by the Required Holder(s) to reflect such Amendment. Prior to the
execution and delivery of such documents by the Company, this Agreement shall be deemed to contain each more favorable Material Provision for purposes of determining the rights and obligations hereunder. 
  
 5K. Payment of Obligations. The Company will, and will cause
each Subsidiary to, pay and discharge at or before maturity, all of its obligations and liabilities, including without limitation: 
  
 (i) all taxes, assessments and governmental charges or levies imposed upon it or any of its property other than any taxes, assessments and
government charges or levies; and 
  
 (ii) all
claims or demands of materialmen, mechanics, carriers, warehousemen, vendors, landlords and other like Persons that, if unpaid, could reasonable be expected to result in the creation of a Lien upon any of its property: 
  
 provided, that items of the foregoing clauses (i) and (ii) need not
be paid 
  
 (1) while being actively contested in
good faith by appropriate proceedings diligently conducted and with respect to which adequate reserves or other appropriate provisions have been established and are being maintained in accordance with generally accepted accounting principles;

  
 (2) if applicable, so long as the title to,
and right to use, such property, is not materially adversely affected thereby; and 
  
 (3) the failure to make payment pending such contest could not reasonably be expected to result in a Material Adverse Effect. 

 
 5L. Additional Subsidiaries. Except as to any Subsidiary
formed by the Company after the date hereof and having assets with a total value of less than $100,000, if any additional Subsidiary is acquired or formed by the Company after the date hereof, the Company will, within thirty (30) Business Days after
such Subsidiary is acquired or formed, notify each of the Significant Holders and will cause such Subsidiary to deliver simultaneously therewith similar documents applicable to such Subsidiary required under paragraphs 3A(1)(ii), 3A(1)(iii)(B),
3A(1)(iv)(B), 3A(1)(v), 3A(1)(vi)(B), 3A(1)(vii) and 3A(1)(ix) as reasonably requested by the Required Holders. 
  
 5M. Reserved.  
  
 6. NEGATIVE COVENANTS. Unless the Required Holders otherwise agree in writing, the Company shall not, and shall not permit any Subsidiary,
to take any of the following actions or permit the occurrence or existence of any of the following events or conditions: 
  

 24 

 6A. Financial Limitation. The Company covenants that it will not permit at any time:

  
 (i) Consolidated Debt to exceed 300% of
Consolidated EBITDA calculated at the end of each fiscal quarter of the Company on a rolling four quarter basis; or 
  
 (ii) Consolidated Debt to exceed 50% of Consolidated Total Capitalization calculated at the end of each fiscal quarter of the Company; or

  
 (iii) Priority Debt to exceed 15% of
Consolidated Net Worth, calculated at the end of each fiscal quarter of the Company; or 
  
 (iv) the Interest Coverage Ratio of the Company and its Subsidiaries, as of the end of each fiscal quarter of the Company, commencing with
the fiscal quarter ended September 30, 2004, to be less than 3.00:1.00, calculated on a rolling four-quarter basis; 
  
 (v) Reserved. 
  
 (vi) Reserved. 
  
 provided, however, that if (A) the Bank Agreement is amended to increase the Consolidated Debt to Consolidated EBITDA ratio for the most recently ended four fiscal
quarter period, the Purchasers agree to amend clause (i) above so that the Consolidated Debt to Consolidated EBITDA ratio is also increased accordingly, provided, however, that the Consolidated Debt to Consolidated EBITDA ratio shall not, at
any time, exceed 375%, (B) the Bank Agreement is amended to increase the Consolidated Debt to Consolidated Total Capitalization ratio for the most recently ended four fiscal quarter period, the Purchasers agree to amend clause (ii) above so that the
Consolidated Debt to Consolidated Total Capitalization ratio is also increased accordingly, provided, however, that the Consolidated Debt to Consolidated Total Capitalization ratio shall not, at any time, exceed 62.5%, and (C) if the Bank
Agreement is amended to delete Section 6.2 thereof, the Purchasers agree to delete clause (iv) above. 
  
 6B. Liens, Debt and Other Restrictions. The Company covenants that it will not and will not permit any Subsidiary to: 
  
 6B(1) Liens. Create, assume or suffer to exist any Lien upon
any of its property or assets, whether now owned or hereafter acquired (whether or not provision is made for the equal and ratable securing of the Notes pursuant to paragraph 5C), except: 
  
 (i) Liens existing on the Amendment Closing Day and
specified on Schedule 6B(1) ); provided, that such Lien shall not apply to any other property or asset of the Company or any Subsidiary; 
  
 (ii) Liens imposed by law for taxes, assessments or charges of any Governmental Authority for claims not yet due or which are being
contested in good faith by appropriate proceedings diligently conducted and with respect to which adequate 

  

 25 

 
reserves or other appropriate provisions are being maintained in accordance with generally accepted accounting principles and which Liens do not constitute a
prior or senior lien; 
  
 (iii) statutory Liens
of landlords and Liens of carriers, warehousemen, mechanics, materialmen and other Liens imposed by law or created in the ordinary course of business and in existence less than 120 days from the date of creation thereof for amounts not yet due or
which are being contested in good faith by appropriate proceedings diligently conducted and with respect to which adequate reserves or other appropriate provisions are being maintained in accordance with generally accepted accounting principles and
which Liens do not constitute a prior or senior lien; 
  
 (iv) Liens incurred or deposits made in the ordinary course of business (including, without limitation, surety bonds and appeal bonds) in connection with workers’ compensation, taxes (and with respect to Liens, to the extent permitted
under paragraph 5K), unemployment insurance and other types of social security benefits or to secure the performance of tenders, bids, leases, contracts (other than for the repayment of Debt), statutory obligations and other similar obligations or
arising as a result of progress payments under government contracts; 
  
 (v) easements (including reciprocal easement agreements and utility agreements), rights-of-way, covenants, consents, reservations, encroachments, variations and zoning and other restrictions, charges or encumbrances
(whether or not recorded), which do not interfere materially with the ordinary conduct of the business of the Company and its Subsidiaries taken as a whole and which do not materially detract from the value of the property to which they attach or
materially impair the use thereof to the Company and its Subsidiaries taken as a whole; 
  
 (vi) any right of set off or banker’s lien (whether by common law, statute, contract or otherwise) in connection with ordinary course
of business deposit arrangements maintained by the Company or its Subsidiaries with a bank a party to the Bank Agreement or with its other banks or financial institutions so long as any such bank or other financial institution (A) shall not at any
time make loans or otherwise extend credit to the Company or any Subsidiary, (B) does not maintain accounts (for the deposit of cash or otherwise) for the benefit of the Company or any Subsidiary, (C) shall have waived in writing for the benefit of
each holder of a Note such right of setoff or banker’s lien, or (D) shall be subject to a pro rata sharing agreement in form and substance satisfactory to each Significant Holder; 
  
 (vii) any Lien renewing, extending, or refunding any outstanding obligations secured by a Lien described in
clause (i), provided (A) the principal amount secured is not increased or the weighted average life to maturity thereof reduced; (B) such Lien is not extended to any other property of the Company or its Subsidiaries; (C) the Debt secured
thereby is permitted under paragraph 6A and (D) no Default or Event of Default has occurred and is continuing; 
  

 26 

 (viii) Liens on insurance policies owned by the Company on the lives of its officers
securing policy loans obtained from the insurers under such policies, provided that (A) the aggregate amount borrowed on each policy shall not exceed the loan value thereof and (B) the Company shall not incur any liability to repay any such
loan; 
  
 (ix) additional Liens securing Priority
Debt permitted by paragraph 6A(iii); 
  
 (x) any
Lien arising out of any Securitization Transaction permitted by Paragraph 6C(vi); and 
  
 (xi) judgment and attachment liens not giving rise to an Event of Default or Liens created by or existing from any litigation or legal
proceeding that are currently being contested in good faith by appropriate proceedings diligently conducted and with respect to which adequate reserves are being maintained in accordance with generally accepted accounting principles. 

  
 For purposes of this paragraph, the entry by the Company or any of its
Subsidiaries into a true lease or true bailment arrangement which contains a provision purporting to grant a lien in the event that such arrangement is determined not to constitute a true lease or true bailment and the filing of a precautionary UCC
financing statement in connection therewith shall not constitute the creation, incurrence, assumption or sufference of a Lien unless, under applicable law, such arrangement is determined not to constitute a true lease or true bailment arrangement
and a security interest or other interest in or lien on property or assets of the Company or its Subsidiaries has in fact been granted or deemed to have been granted. 
  
 6B(2) Debt. Create, incur, assume or suffer to exist any Debt, except: 
  
 (i) Debt represented by this Agreement or any of the Related
Documents; 
  
 (ii) Debt existing on the
Amendment Closing Day as set forth on Schedule 6B(2) and refinancings or replacements thereof in an amount not to exceed (A) in the case of the Bank Agreement, $150,000,000 and (B) in all other cases, the principal amount specified on such Schedule;

  
 (iii) Debt of any Subsidiary owing to the
Company or any other Subsidiary of the Company; 
  
 (iv) Debt represented by endorsement of negotiable instruments for collection in the ordinary course of business; 
  
 (v) additional Debt of the Company or any Subsidiary (whether Secured or Unsecured) incurred in the ordinary course of business as
conducted on the date hereof; 
  
 (vi) Reserved;

  
 (vii) Debt in respect of any Securitization
Transaction permitted by Paragraph 6C(vi); 
  

 27 

 (viii) Debt in respect of obligations under Hedging Agreements under the Bank Agreement;

  
 (ix) other Debt incurred after the Amendment
Closing Date in an aggregate principal amount not to exceed $200,000,000 at any time outstanding. 
  
 Notwithstanding the foregoing exceptions to the prohibition against incurring or maintaining Debt, the Company shall not permit at any time, prior to or after the incurrence thereof, the aggregate outstanding amount
of Debt to exceed the limitations of paragraph 6A hereof or incur any Debt if a Default or Event of Default has occurred and is continuing. 
  
 6B(3) Merger or Consolidation. Merge, consolidate or exchange shares with any other Person, except that: 
  
 (i) any Subsidiary may merge or consolidate with the Company
or any other Subsidiary; 
  
 (ii) the Company may
merge or consolidate with any other corporation (including a Subsidiary) provided (A) the Company is the surviving corporation or limited liability company, and (B) immediately after giving effect to such transaction, no Default or Event of
Default shall occur or exist; 
  
 (iii) any
Subsidiary may merge or consolidate with any other corporation or limited liability company provided (A) such Subsidiary is the surviving corporation, and (B) immediately after giving effect to such transaction, no Default or Event of Default
shall occur or exist; and 
  
 (iv) Dunhill may
merge or consolidated with any other Person in connection with a transaction permitted by paragraph 6C(iii). 
  
 6B(4) Investments. Make or permit to remain outstanding any Investments except any of the following: 
  
 (i) securities of any Person acquired in an Acquisition
provided that such Person shall become a Guarantor at the time of, or promptly after, such Acquisition; 
  
 (ii) Eligible Securities; 
  
 (iii) Investments existing on the Amendment Closing Day and specified in Schedule 6B(4); 
  
 (iv) accounts receivable arising and trade credit granted in
the ordinary course of business and any securities or other assets received in satisfaction or partial satisfaction thereof in connection with accounts of financially troubled Persons to the extent reasonably necessary in order to prevent or limit
loss; 
  
 (v) Investments in the Company and in
Subsidiaries which are Guarantors; 
  

 28 

 (vi) additional investments in other Persons, provided that (A) the aggregate
costs incurred in making such investments (reduced by cash dividends or other cash payments received on or in consideration of such investments) shall not exceed $60,000,000 in the aggregate at any time and (B) prior to and immediately after giving
effect to such investment, no Default or Event of Default shall exist and be continuing; 
  
 (vii) loans and advances between or among the Company and the Guarantors permitted by paragraph 6B(2)(iii); 
  
 (viii) travel and entertainment advances made to employees
of the Company or any of its Subsidiaries in the ordinary course of business; 
  
 (ix) Investments consisting of ownership interests in another Person resulting from the dispositions or mergers permitted under paragraphs 6C(iii) or 6B(3); and 
  
 (x) notes of purchasers of Dunhill. 
  
 6B(5) Transactions with Related Party. Except as permitted in
paragraph 6B(3) and 6B(4), effect any transaction with any Affiliate or Subsidiary by which any asset or services of the Company or a Subsidiary of the Company is transferred to such Affiliate or Subsidiary, or from such Affiliate or Subsidiary or
enter into any other transaction with an Affiliate or Subsidiary, on terms more favorable than would be reasonably expected to be given in a similar transaction with an unrelated entity. 
  
 6C. Sale of Assets. The Company will not, and will not permit any Subsidiary to, Dispose of any property or
assets (including the Capital Stock of a Subsidiary), except: 
  
 (i) inventory in the ordinary course of business; 
  
 (ii) any Subsidiary may Dispose of its assets to the Company or a wholly­owned Subsidiary; 
  
 (iii) the sale or other disposition of all or substantially
all of the Capital Stock or assets of Dunhill for no less than Fair Market Value, as reasonably determined by the Board of Directors of the Company (upon which event, all of the Required Holders, at the request and expense of the Company, will
execute such documents as shall be acceptable to the Required Holders and its counsel releasing the Guaranty Agreement of Dunhill); 
  
 (iv) the Disposition of Eligible Securities in the ordinary course of management of the investment portfolio of the Company and its
Subsidiaries; 
  
 (v) Dispositions of property
that is substantially worn, damaged, obsolete or in the judgment of the Company, no longer best used or useful in its business or that of any Subsidiary; 
  
 (vi) the sale or other disposition of such assets in connection with any Securitization Transaction in an aggregate amount not to exceed
$100,000,000 at any time during the term of this Agreement; 
  

 29 

 (vii) the Company or any Subsidiary may Dispose of its assets (whether or not leased
back) so long as, immediately after giving effect to such proposed Disposition: 
  
 (A) the consideration for such assets represents the Fair Market Value of such assets at the time of such Disposition; and 
  
 (B) (1) the net book value of all assets so Disposed of by
the Company and its Subsidiaries (other than pursuant to clause (iv)) does not constitute a Substantial Part of the Consolidated assets or (2) the proceeds of such Disposition are reinvested in a similar business or assets within 12 months of such
Disposition; and 
  
 (C) no Default or Event of
Default shall exist; 
  
 (viii) the sale, without
recourse, other than for misrepresentation, by any Subsidiary of accounts receivable having a value, net of all allowances and discounts, not to exceed during any fiscal year of the Company an aggregate dollar value of $25,000,000 for all such
sales, which receivables shall be payable by Persons who are not United States citizens or organized and existing under the laws of the United States or a state or territory thereof; and 
  
 (ix) the sale or other disposition of such assets in an aggregate amount not to exceed $50,000,000 in any
fiscal year of the Company; 
  
 provided, however, that if the Bank
Agreement is amended to delete Section 7.6(e) or Section 7.6(f) thereof, respectively, the Purchasers agree to delete the corresponding clause (viii) or (ix) above, as the case may be. 
  
 For purposes of this paragraph 6C: 
  

(i) “Dispose” means the sale, lease, transfer or other disposition of property of the Company or any of its
Subsidiaries, and “Disposition” and “Disposed of” has a corresponding meaning to Dispose; 
  
 (ii) Calculation of net book value. The net book value of any assets shall be determined as of the respective date of
Disposition of those assets; and 
  
 (iii)
Sales of less than all the stock of a Subsidiary. In the case of the sale or issuance of the stock of a Subsidiary, the amount of Consolidated Assets contributed by the stock Disposed of shall be assumed to be the percentage of
outstanding stock sold or to be sold. 
  
 6D. Subsidiary
Stock and Debt. The Company will not: 
  
 (i) directly or indirectly sell, assign, pledge or otherwise dispose of any Debt of or any shares of stock of (or warrants, rights or options to acquire stock of) any Subsidiary except to a wholly­owned Subsidiary and except as
permitted pursuant to paragraph 6C; 
  

 30 

 (ii) permit any Subsidiary directly or indirectly to sell, assign, pledge or otherwise
dispose of any Debt of the Company or any other Subsidiary, or any shares of stock of (or warrants, rights or options to acquire stock of) any other Subsidiary, except to the Company or a wholly­owned Subsidiary and except as permitted pursuant
to paragraph 6C; 
  
 (iii) permit any Subsidiary
directly or indirectly to issue or sell any shares of its stock (or warrants, rights or options to acquire its stock) except to the Company or a wholly­owned Subsidiary and except as permitted pursuant to paragraph 6B(3) and 6C; 
  
 (iv) permit any Subsidiary to enter into or otherwise be
bound by or subject to any contract or agreement (including, without limitation, any provision of its certificate or articles of incorporation or bylaws) that restricts its ability to pay dividends or other distributions on account of its stock
except for such restrictions set forth in the Bank Agreement, so long as such restrictions do not prohibit or restrict any Subsidiary’s ability to pay dividends or other distributions on account of its stock to the Company or another
Subsidiary; 
  
 (v) permit any Subsidiary to
create, incur, assume or maintain any Debt except as permitted by paragraph 6B(2); or 
  
 (vi) permit any Guarantor to make any payments under any Subsidiary Guarantee Agreement (as defined in the Bank Agreement) unless the
holders of Notes receive a pro rata payment pursuant to the Guaranty Agreement. 
  
 6E. Sale of Receivables. The Company covenants that it will not, and will not permit any Subsidiary to, sell (with or without recourse), or discount or otherwise sell for less than the face value
thereof, any of its Receivables other than in connection with a sale in accordance with paragraph 6C(vi). 
  
 6F. ERISA. The Company covenants that it will not, nor permit any Subsidiary to: 
  
 (i) terminate or withdraw from any Plan (other than a
Multiemployer Plan) resulting in the incurrence of any material liability to the Pension Benefit Guaranty Corporation; 
  
 (ii) engage in or permit any Person to engage in any prohibited transaction (as defined in Section 4975 of the Code) involving any Plan
(other than a Multiemployer Plan) which would subject the Company or any Subsidiary to any material tax, penalty or other liability; 
  
 (iii) incur or suffer to exist any material accumulated funding deficiency (as defined in Section 302 of ERISA and Section 412 of the
Code), whether or not waived, involving any Plan (other than a Multiemployer Plan); or 
  
 (iv) allow or suffer to exist any risk or condition which presents a risk of incurring a material liability to the Pension Benefit
Guaranty Corporation. 
  

 31 

 6G. Environmental Matters. The Company covenants that it will not, and will not permit any
Third Party to, use, produce, manufacture, process, generate, store, dispose of, manage at, or ship or transport to or from the Properties any Hazardous Materials except for Hazardous Materials used, produced, released or managed in the ordinary
course of business in compliance with all applicable Environmental Requirements except where the failure to do so could not reasonably be expected to have a Material Adverse Effect and except for Hazardous Materials released in amounts which do not
require remediation pursuant to applicable Environmental Requirements or if remediation is required, such remediation could not reasonably be expected to have a Material Adverse Effect. 
  
 6H. Specified Laws. Neither the Company nor any agent acting on its behalf will take any action which could
reasonably be expected to cause this Agreement or the Notes to violate Regulation T or any other regulation of the Board of Governors of the Federal Reserve System or to violate the Exchange Act, in any case as in effect now or as the same may
hereafter be in effect. 
  
 6I. Business Activities.
Neither the Company nor any of its Subsidiaries will engage directly or indirectly (whether through subsidiaries or otherwise) in any type of business other than the businesses conducted by the Company or such Subsidiary on the date hereof and in
related businesses. 
  
 6J. Restricted Payments. The
Company will not, and will not permit its Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any dividend on any class of its stock, or make any payment on account of, or set apart assets for a sinking or other
analogous fund for, the purchase, redemption, retirement, defeasance or other acquisition of, any shares of common stock or Debt subordinated to the obligations of the Company under this Agreement, the Notes or any other Related Document or any
options, warrants, or other rights to purchase such common stock or such Debt, whether now or hereafter outstanding (each, a “Restricted Payment”), except for (a) dividends payable by the Company solely in shares of any class
of its common stock, (b) Restricted Payments made by any Subsidiary to the Company or to a Guarantor, (c) dividends paid by any Subsidiary to Company or to another Subsidiary that is its direct parent and (d) cash dividends paid on, and cash
redemptions of, the common stock of the Company provided, that (i) no Default or Event of Default has occurred and is continuing at the time such dividend is paid or redemption is made, and (ii) the aggregate amount of all such Restricted
Payments made by the Company in any fiscal year commencing after December 31, 2003 does not exceed the sum of (A) $100,000,000.00 in the aggregate at any time during the Availability Period plus (B) fifty percent (50%) of Consolidated Net
Income (if greater than $0) earned during the immediately preceding fiscal year, and further, provided, if such Restricted Payments in any fiscal year are less than permitted in such fiscal year, the excess permitted amount for such fiscal
year may be carried forward to the next succeeding fiscal year; provided, however, that if the Bank Agreement is terminated or amended with respect to Section 7.5 thereof, this paragraph 6J shall be deemed to be automatically deleted or
amended, as the case may be, accordingly and the Purchasers agree to execute and deliver documents to delete or amend this paragraph 6J accordingly. 
  

 32 

 7. EVENTS OF DEFAULT. 
  
 7A. Acceleration. If any of the following events shall occur and be continuing for any reason whatsoever (and
whether such occurrence shall be voluntary or involuntary or come about or be effected by operation of law or otherwise): 
  
 (i) the Company defaults in the payment of any principal of, or Yield- Maintenance Amount, Prepayment Compensation Amount or Breakage Cost
Obligations payable with respect to, any Note when the same shall become due, either by the terms thereof or otherwise as herein provided; or 
  
 (ii) the Company defaults in the payment of any interest on any Note for more than 5 days after the date due; or 
  
 (iii) the Company or any Subsidiary defaults (whether as
primary obligor or as guarantor or other surety) in any payment of principal of or premium or interest on any other obligation for money borrowed (or any Capitalized Lease Obligation, any obligation under a conditional sale or other title retention
agreement, any obligation issued or assumed as full or partial payment for property whether or not secured by a purchase money mortgage or any obligation under notes payable or drafts accepted representing extensions of credit) beyond any period of
grace provided with respect thereto, or the Company or any Subsidiary fails to perform or observe any other agreement, term or condition contained in any agreement under which any such obligation is created (or if any other event thereunder or under
any such agreement shall occur and be continuing) and the effect of such failure or other event is to cause, or to permit the holder or holders of such obligation (or a trustee on behalf of such holder or holders) to cause, such obligation to become
due (or to be repurchased by the Company or any Subsidiary) prior to any stated maturity, provided that the aggregate amount of all obligations as to which any default shall occur and be continuing or any such a failure or other event
permitting acceleration (or resale to such Company or any such Subsidiary) shall occur and be continuing exceeds $10,000,000; or 
  
 (iv) any representation or warranty made by the Company herein or by the Company or any of its officers in any writing furnished in
connection with or pursuant to this Agreement shall be false in any material respect on the date as of which made; or 
  
 (v) the Company fails to perform or observe any agreement contained in paragraphs 5D or 5J or 6; or 
  
 (vi) the Company fails to perform or observe any other
agreement, term or condition contained herein and such failure shall not be remedied within 30 days after the occurrence thereof; or 
  
 (vii) the Company or any Subsidiary makes an assignment for the benefit of creditors or is generally not paying its debts as such debts
become due; or 
  

 33 

 (viii) any decree or order for relief in respect of the Company or any Subsidiary is
entered under any bankruptcy, reorganization, compromise, arrangement, insolvency, readjustment of debt, dissolution or liquidation or similar law, whether now or hereafter in effect (herein called the “Bankruptcy Law”), of
any jurisdiction; or 
  
 (ix) the Company or any
Subsidiary petitions or applies to any tribunal for, or consents to, the appointment of, or taking possession by, a trustee, receiver, custodian, liquidator or similar official of the Company or any Subsidiary, or of any substantial part of the
assets of the Company or any Subsidiary, or commences a voluntary case under the Bankruptcy Law of the United States or any proceedings (other than proceedings for the voluntary liquidation and dissolution of a Subsidiary) relating to the Company or
any Subsidiary under the Bankruptcy Law of any other jurisdiction; or 
  
 (x) any such petition or application is filed, or any such proceedings are commenced, against the Company or any Subsidiary and the Company or such Subsidiary by any act indicates its approval thereof, consent thereto
or acquiescence therein, or an order, judgment or decree is entered appointing any such trustee, receiver, custodian, liquidator or similar official, or approving the petition in any such proceedings, and such order, judgment or decree remains
unstayed and in effect for more than 60 days; or 
  
 (xi) any judgment or order for the payment of money where the amount not covered by insurance exceeds $1,000,000 individually or in the aggregate shall be rendered against the Company or any Subsidiary, and either (i) enforcement
proceedings shall have been commenced by any creditor upon such judgment or order or (ii) there shall be a period of thirty (30) consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or
otherwise, shall not be in effect; or 
  
 (xii)
any order, judgment or decree is entered in any proceedings against the Company or any Subsidiary decreeing a split-up of the Company or such Subsidiary which requires the divestiture of assets representing a substantial part, or the divestiture of
the stock of a Subsidiary whose assets represent a substantial part, of the consolidated assets of the Company and its Subsidiaries (determined in accordance with generally accepted accounting principles) or which requires the divestiture of assets,
or stock of a Subsidiary, which shall have contributed a substantial part of the consolidated net income of the Company and its Subsidiaries (determined in accordance with generally accepted accounting principles) for any of the three fiscal years
then most recently ended, and such order, judgment or decree remains unstayed and in effect for more than 60 days; or 
  
 (xiii) the Company or any ERISA Affiliate, in its capacity as an employer under a Multiemployer Plan, makes a complete or partial
withdrawal from such Multiemployer Plan resulting in the incurrence by such withdrawing employer of a withdrawal liability in an amount exceeding $1,000,000; or 
  

(xiv) the Company or any Guarantor or any other Person shall disavow or attempt to terminate any or all of the Guaranty Agreements or
any or all of the Guaranty Agreements shall cease to be in full force and effect in whole or in part for any reason whatsoever; or 
  
  

 34 

 (xv) the Company or any of its Subsidiaries shall default in the performance or
observance of any term, condition or provision of any Material Agreement that results in, or could reasonably be expected to result in, a Material Adverse Effect; or 
  
 (xvi) any non-monetary judgment or order shall be rendered against the Company or any Subsidiary that could
reasonably be expected to have a Material Adverse Effect, and there shall be a period of thirty (30) consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect;

  
 then: 
  
 (a) if such event is an Event of Default specified in clause (i) or (ii) of this paragraph 7A, any holder
(other than the Company or any of its Subsidiaries) of any Note may at its option during the continuance of such Event of Default, by notice in writing to the Company, terminate the Facility and/or declare all of the Notes held by such holder to be,
and all of the Notes held by such holder shall thereupon be and become, immediately due and payable at par together with interest accrued thereon, without presentment, demand, protest or notice of any kind, all of which are hereby waived by the
Company, 
  
 (b) if such event is an Event of
Default specified in clause (viii), (ix) or (x) of this paragraph 7A with respect to the Company, the Facility shall automatically terminate and all of the Notes at the time outstanding shall automatically become immediately due and payable together
with interest accrued thereon and together with the Yield-Maintenance Amount, if any, the Prepayment Compensation Amount, if any, and Breakage Cost Obligations, if any, with respect to each Note, without presentment, demand, protest or notice of any
kind, all of which are hereby waived by the Company, and 
  
 (c) with respect to any event constituting an Event of Default, the Required Holder(s) of the Notes of any Series may at its or their option during the continuance of such Event of Default, by notice in writing to the
Company, terminate the Facility and/or declare all of the Notes of such Series to be, and all of the Notes of such Series shall thereupon be and become, immediately due and payable together with interest accrued thereon and together with the
Yield-Maintenance Amount, if any, the Prepayment Compensation Amount, if any, and Breakage Cost Obligations, if any, with respect to each Note of such Series, without presentment, demand, protest or notice of any kind, all of which are hereby waived
by the Company. 
  
 7B. Rescission of Acceleration.
At any time after any or all of the Notes of any Series shall have been declared immediately due and payable pursuant to paragraph 7A, the Required Holder(s) of the Notes of such Series may, by notice in writing to the Company, rescind and annul
such declaration and its consequences if: 
  

 35 

 (i) the Company shall have paid all overdue interest on the Notes of such Series, the
principal of and Yield-Maintenance Amount, if any, Prepayment Compensation Amount, if any, and Breakage Cost Obligations, if any, payable with respect to any Notes of such Series which have become due otherwise than by reason of such declaration,
and interest on such overdue interest and overdue principal, Yield-Maintenance Amount, Prepayment Compensation Amount and Breakage Cost Obligations at the rate specified in the Notes of such Series, 
  
 (ii) the Company shall not have paid any amounts which have
become due solely by reason of such declaration, 
  
 (iii) all Events of Default and Defaults, other than non-payment of amounts which have become due solely by reason of such declaration, shall have been cured or waived pursuant to paragraph 11C, and 
  
 (iv) no judgment or decree shall have been entered for the
payment of any amounts due pursuant to the Notes of such Series or this Agreement. 
  
 No such rescission or annulment shall extend to or affect any subsequent Event of Default or Default or impair any right arising therefrom. 
  
 7C. Notice of Acceleration or Rescission. Whenever any Note shall be declared immediately due and payable pursuant to paragraph 7A or any
such declaration shall be rescinded and annulled pursuant to paragraph 7B, the Company shall forthwith give written notice thereof to the holder of each Note of each Series at the time outstanding. 
  
 7D. Other Remedies. If any Event of Default or Default shall
occur and be continuing, the holder of any Note may proceed to protect and enforce its rights under this Agreement and such Note by exercising such remedies as are available to such holder in respect thereof under applicable law, either by suit in
equity or by action at law, or both, whether for specific performance of any covenant or other agreement contained in this Agreement or in aid of the exercise of any power granted in this Agreement. No remedy conferred in this Agreement upon the
holder of any Note is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in addition to every other remedy conferred herein or now or hereafter existing at law or in equity or by statute or
otherwise. 
  
 8. REPRESENTATIONS, COVENANTS AND
WARRANTIES. The Company represents, covenants and warrants as follows (all references to “Subsidiary” and “Subsidiaries” in this paragraph 8 shall be deemed omitted if the Company has no
Subsidiaries at the time the representations herein are made or repeated): 
  
 8A. Organization. 
  
 (i) The Company is a corporation duly organized and existing in good standing under the laws of the State of Florida, and each Subsidiary is duly organized and existing in good standing under the laws of the
jurisdiction in which it is organized. Schedule 8A hereto is an accurate and complete list of all Subsidiaries as of the 

  

 36 

 
Amendment Closing Day, including the chief executive office, the principal place of business, the jurisdiction of incorporation and ownership of all such
Subsidiaries. The Company and each Subsidiary has the corporate or limited liability company power to own its respective properties and to carry on its respective businesses as now being conducted and is duly qualified and authorized to do business
in each other jurisdiction in which the character of its respective properties or the nature of its respective businesses require such qualification or authorization except where the failure to be so qualified or authorized could not reasonably be
expected to have a Material Adverse Effect. 
  
 (ii) No Subsidiary is a party to, or otherwise subject to, any legal restriction or any agreement restricting the ability of such Subsidiary to pay dividends out of profits or make other similar distributions of profits to the Company or
any of its Subsidiaries that owns outstanding shares of Capital Stock or similar equity interests of such Subsidiary. 
  
 8B. Financial Statements. The Company has furnished you with the following financial statements, identified by a principal financial officer
of the Company: 
  
 (i) a Consolidated balance
sheet as at the last day of the fiscal year in each of the years 2002 to 2003, inclusive, a Consolidated statement of income, stockholders’ equity and cash flows for each such year, all reported on by Ernst & Young, LLP, independent
certified public accountants; and 
  
 (ii) a
Consolidated balance sheet as at September 30, 2004 and Consolidated statements of income, stockholders’ equity and cash flows for the nine-month period ended on each such date, prepared by the Company. 
  
 Those financial statements (including any related schedules and/or notes) fairly present in
all material respects (subject, as to interim statements, to the absence of footnotes or to changes resulting from normal year-end adjustments) the financial condition of the Company and have been prepared in accordance with generally accepted
accounting principles consistently applied throughout the periods involved and show all liabilities, direct and contingent, of the Company and its Subsidiaries required to be shown in accordance with such principles. The balance sheets fairly
present, in all material respects, the Consolidated financial condition of the Company and its Subsidiaries as at the dates thereof, and the statements of income, stockholders’ equity and cash flows fairly present, in all material respects, the
Consolidated results of the operations of the Company and its Subsidiaries, the changes in the Company’s stockholders’ equity and their Consolidated cash flows for the periods indicated. Since December 31, 2003, there have been no changes
with respect to the Company and its Subsidiaries which have had or could reasonably be expected to have, singly or in the aggregate, a Material Adverse Effect. 
  

8C. Actions Pending. Except as set forth on Schedule 8C hereto, there is no action, suit, investigation or proceeding pending or, to the
knowledge of the Company, threatened against or affecting the Company or any of its Subsidiaries, or any properties or rights of the Company or any of its Subsidiaries, by or before any court, arbitrator or administrative or governmental body (i) as
to which there is a reasonable possibility of an adverse determination that could reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect or (ii) which in any manner draws into question the validity or
enforceability of this Agreement or any of the Notes. 
  

 37 

 8D. Outstanding Debt. Neither the Company nor any of its Subsidiaries has outstanding any
Debt except as permitted by paragraphs 6A and 6B(2). There exists no default under the provisions of any instrument evidencing such Debt or of any agreement relating thereto. Schedule 8D hereto (as such Schedule 8D may have been modified from time
to time by written supplements thereto delivered by the Company to Prudential) is an accurate and complete list of Debt of the Company and its Subsidiaries on the applicable Closing Day. 
  
 8E. Title to Properties. The Company has and each of its Subsidiaries has good and indefeasible title to its
respective real properties (other than properties which it leases) and good title to all of its other respective properties and assets, including the properties and assets reflected in the most recent audited balance sheet referred to in paragraph
8B (other than properties and assets disposed of in the ordinary course of business), subject to no Lien of any kind except Liens permitted by paragraph 6B(1). All leases necessary in any material respect for the conduct of the respective businesses
of the Company and its Subsidiaries are valid and subsisting and are in full force and effect. 
  
 8F. Taxes. The Company has filed and each of its Subsidiaries has filed all federal, state and other income tax returns which, to the best knowledge of the chief financial officer of the Company and its
Subsidiaries, are required to be filed, and each has paid all taxes as shown on such returns and on all assessments received by it to the extent that such taxes have become due, except such taxes as are being contested in good faith by appropriate
proceedings for which adequate reserves have been established in accordance with generally accepted accounting principles. 
  
 8G. Conflicting Agreements and Other Matters. Neither the Company nor any of its Subsidiaries is a party to any contract or agreement or
subject to any charter or other corporate restriction which materially and adversely affects its business, property or assets, condition (financial or otherwise) or operations. Neither the execution nor delivery of this Agreement or the Notes, nor
the offering, issuance and sale of the Notes, nor fulfillment of nor compliance with the terms and provisions hereof and of the Notes will conflict with, or result in a breach of the terms, conditions or provisions of, or constitute a default under,
or result in any violation of, or result in the creation of any Lien upon any of the properties or assets of the Company or any of its Subsidiaries pursuant to, the charter or by-laws of the Company or any of its Subsidiaries, any award of any
arbitrator or any agreement (including any agreement with stockholders), instrument, order, judgment, decree, statute, law, rule or regulation to which the Company or any of its Subsidiaries is subject. Neither the Company nor any of its
Subsidiaries is a party to, or otherwise subject to any provision contained in, any instrument evidencing Debt of the Company or such Subsidiary, any agreement relating thereto or any other contract or agreement (including its charter) which limits
the amount of, or otherwise imposes restrictions on the incurring of, Debt of the Company or such Subsidiary of the type and in the amount to be evidenced by the Notes except as set forth in the agreements listed in Schedule 8G hereto. 

 
 8H. Offering of Notes. Neither the Company nor any agent
acting on its behalf has, directly or indirectly, offered the Notes or any similar security of the Company for sale to, or 

  

 38 

 
solicited any offers to buy the Notes or any similar security of the Company from, or otherwise approached or negotiated with respect thereto with, any
Person other than institutional investors, and neither the Company nor any agent acting on its behalf has taken or will take any action which would subject the issuance or sale of the Notes to the provisions of Section 5 of the Securities Act or to
the provisions of any securities or Blue Sky law of any applicable jurisdiction. The Company hereby represents and warrants to you that, within the preceding twelve months, neither the Company nor any other Person acting on behalf of the Company has
offered or sold to any Person (other than accredited investors) any Notes, or any securities of the same or a similar class as the Notes, or any other substantially similar securities of the Company. 
  
 8I. Use of Proceeds. None of the proceeds of the sale of any
Notes will be used, directly or indirectly, for the purpose, whether immediate, incidental or ultimate, of purchasing or carrying any “margin stock” as defined in Regulation U or X (12 C.F.R. Parts 221 and 224) of the Board of Governors of
the Federal Reserve System (herein called “margin stock”) or for the purpose of maintaining, reducing or retiring any Debt which was originally incurred to purchase or carry any stock that is then currently a margin stock or for any other
purpose which might constitute the purchase of such Notes a “purpose credit” within the meaning of such Regulation U, unless the Company shall have delivered to the Purchaser which is purchasing such Notes, on the Closing Day for such
Notes, an opinion of counsel satisfactory to such Purchaser stating that the purchase of such Notes does not constitute a violation of such Regulation U. Neither the Company nor any agent acting on its behalf has taken or will take any action which
might cause this Agreement or the Notes to violate Regulation U, Regulation T or any other regulation of the Board of Governors of the Federal Reserve System or to violate the Exchange Act, in each case as in effect now or as the same may hereafter
be in effect. None of the proceeds of the sale of the Notes has been or will be used to finance a Hostile Tender Offer. 
  
 8J. ERISA. No accumulated funding deficiency (as defined in Section 302 of ERISA and Section 412 of the Code), whether or not waived, exists
with respect to any Plan (other than a Multiemployer Plan). No liability to the Pension Benefit Guaranty Corporation has been or is expected by the Company or any ERISA Affiliate to be incurred with respect to any Plan (other than a Multiemployer
Plan) by the Company, any Subsidiary or any ERISA Affiliate which could reasonably be expected to result in a Material Adverse Effect. Neither the Company, any Subsidiary nor any ERISA Affiliate has incurred or presently expects to incur any
withdrawal liability under Title IV of ERISA with respect to any Multiemployer Plan which could reasonably be expected to result in a Material Adverse Effect. The execution and delivery of this Agreement and the issuance and sale of the Notes will
be exempt from or will not involve any transaction which is subject to the prohibitions of Section 406 of ERISA and will not involve any transaction in connection with which a penalty could be imposed under Section 502(i) of ERISA or a tax could be
imposed pursuant to Section 4975 of the Code. The representation by the Company in the next preceding sentence is made in reliance upon and subject to the accuracy of the representation of each Purchaser in paragraph 9B as to the source of funds to
be used by it to purchase any Notes. 
  
 8K. Governmental
Consent. Neither the nature of the Company or of any Subsidiary, nor any of their respective businesses or properties, nor any relationship between the Company or any Subsidiary and any other Person, nor any circumstance in connection with
the offering, 

  

 39 

 
issuance, sale or delivery of the Notes is such as to require any authorization, consent, approval, exemption or any action by or notice to or filing with
any court or administrative or governmental body (other than routine filings after the Closing Day for any Notes with the Securities and Exchange Commission and/or state Blue Sky authorities) in connection with the execution and delivery of this
Agreement, the offering, issuance, sale or delivery of the Notes or fulfillment of or compliance with the terms and provisions hereof or of the Notes. 
  
 8L. Environmental Compliance. 
  
 (i) The Company and its Subsidiaries and all of their respective Properties have complied at all times (during such period of time the
Company or its Subsidiaries have owned or operated each such Property) and in all respects with all Environmental Requirements where failure to comply could reasonably be expected to have a Material Adverse Effect. 
  
 (ii) Except as set forth in Schedule 8L, neither the Company
nor any of its Subsidiaries (i) has failed to comply with any Environmental Requirement or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Requirement that could reasonably be expected to
have, either individually or in the aggregate, a Material Adverse Effect, (ii) is subject to any Environmental Liability or Environmental Requirement that could reasonably be expected to have, either individually or in the aggregate, a Material
Adverse Effect, (iii) has received notice of any claim with respect to any Environmental Liability that could reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect or (iv) knows of any basis for any
Environmental Liability that could reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect. 
  
 (iii) Except as set forth in Schedule 8L, neither the Company nor any Subsidiary has been designated as a potentially responsible party
under CERCLA or under any state statute similar to CERCLA. None of the Properties has been identified on any current or proposed National Priorities List under 40 C.F.R. § 300 or any list arising from a state statute similar to CERCLA. None of
the Properties has been identified on any CERCLIS list. 
  
 (iv) No Hazardous Materials have been or are being used, produced, manufactured, processed, generated, stored, disposed of, released, managed at or shipped or transported to or from the Properties (during such period of time the Company or
its Subsidiaries have owned or operated each such Property) or, to the actual knowledge of the Company, are otherwise present at, on, in or under the Properties or, to the actual knowledge of the Company, at or from any adjacent site or facility,
except for Hazardous Materials used, produced, manufactured, processed, generated, stored, disposed of, released and managed in the ordinary course of the Company’s and any Subsidiary’s business in compliance with all applicable
Environmental Requirements and except for Hazardous Materials present in amounts which have not required and do not require remediation, pursuant to applicable law or regulation, or if remediation is required, such remediation could not reasonably
be expected to have, either individually or in the aggregate, a Material Adverse Effect. 
  

 40 

 (v) The Company and each Subsidiary have procured all permits necessary under
Environmental Requirements for the conduct of their respective businesses or is otherwise in compliance with all applicable Environmental Requirements, except to the extent the failure to do so would not reasonably expected to have, either
individually or in the aggregate, a Material Adverse Effect. 
  
 8M. Disclosure. Neither this Agreement nor any other document, certificate or statement furnished to any Purchaser by or on behalf of the Company in connection herewith contains any untrue statement of a material fact or omits
to state a material fact necessary in order to make the statements contained herein and therein not misleading. There is no fact peculiar to the Company or any of its Subsidiaries which materially adversely affects or in the future may (so far as
the Company can now reasonably foresee) materially adversely affect the business, property or assets, condition (financial or otherwise) or operations of the Company or any of its Subsidiaries and which has not been set forth in this Agreement. The
Company has disclosed to the Purchasers all agreements, instruments, and corporate or other restrictions to which the Company or any of its Subsidiaries is subject, and all other matters known to any of them, that, individually or in the aggregate,
could reasonably be expected to result in a Material Adverse Effect. 
  
 8N. Compliance with Laws and Agreements. The Company and each Subsidiary is in compliance with (a) all applicable laws, rules, regulations and orders of any Governmental Authority, and (b) all indentures, agreements or other
instruments binding upon it or its properties, except where non-compliance, either singly or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. 
  
 8O. Labor Relations. There are no strikes, lockouts or other material labor disputes or grievances against the
Company or any of its Subsidiaries, or, to the Company’s knowledge, threatened against or affecting the Company or any of its Subsidiaries, and no significant unfair labor practice, charges or grievances are pending against the Company or any
of its Subsidiaries, or to the Company’s knowledge, threatened against any of them before any Governmental Authority. All payments due from the Company or any of its Subsidiaries pursuant to the provisions of any collective bargaining agreement
have been paid or accrued as a liability on the books of the Company or any such Subsidiary, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect. 
  
 8P. Reserved.  
  
 8Q. Solvency. Each of the Company and its Subsidiaries is
Solvent and, in executing the Related Documents and consummating the transactions contemplated thereby, neither the Company or any of its Subsidiaries intends to hinder, delay or defraud either present or future creditors or other Persons to which
one or more of them is or will become indebted. 
  

 41 

 8R. Senior Debt. The obligations of the Company and its Subsidiaries under this
Agreement, the Notes and the other Related Documents constitute senior debt for purposes of all subordinated debt facilities, if any. 
  
 9. REPRESENTATIONS OF THE PURCHASERS. 
  
 Each Purchaser represents as follows: 
  
 9A. Nature of Purchase. Such Purchaser has acquired the Issued Series A Notes and will acquire any Shelf Notes purchased from the Company
pursuant to this Agreement for investment for its own account, not as a nominee or agent, and not with a view to, or for resale in connection with, any distribution thereof within the meaning of the Securities Act, provided that the
disposition of such Purchaser’s property shall at all times be and remain within its control. 
  
 9B. Source of Funds. You represent that at least one of the following statements is an accurate representation as to each source of funds (a
“Source”) to be used by you to pay the purchase price of the Notes to be purchased by you hereunder: 
  
 (a) the Source constitutes assets allocated to your “insurance company general account” (as such term is defined under Section V
of the United States Department of Labor’s Prohibited Transaction Exemption (“PTE”) 95-60), and as of the date of the purchase of the Notes, you satisfy all of the applicable requirements for relief under Sections I and
IV of PTE 95-60; or 
  
 (b) if you are an
insurance company, the Source does not include assets allocated to any separate account maintained by you in which any employee benefit plan (or its related trust) has any interest, other than a separate account that is maintained solely in
connection with your fixed contractual obligations under which the amounts payable, or credited, to such plan and to any participant or beneficiary of such plan (including any annuitant) are not affected in any manner by the investment performance
of the separate account; or 
  
 (c) the Source is
either (i) an insurance company pooled separate account, within the meaning PTE 90-1 (issued January 29, 1990), or (ii) a bank collective investment fund, within the meaning of the PTE 91-38 (issued July 12, 1991) and, except as you have disclosed
to the Company in writing pursuant to this clause (c), no employee benefit plan or group of plans maintained by the same employer or employee organization beneficially owns more than 10% of all assets allocated to such pooled separate account or
collective investment fund; or 
  
 (d) the Source
constitutes asset of an “investment fund” (within the meaning of Part V of the QPAM Exemption) managed by a “qualified professional asset manager” or “QPAM” (within the meaning of Part V of the QPAM Exemption), no
employee benefit plan’s assets that are included in such investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Section V(c)(1)
of the QPAM Exemption) of such employer or by the same employee organization and managed by such QPAM, exceed 

  

 42 

 
20% of the total client assets managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are satisfied, neither the QPAM nor a person
controlling or controlled by the QPAM (applying the definition of “control” in Section V(e) of the QPAM Exemption) owns a 5% or more interest in the company and (i) the identity of such QPAM and (ii) the names of all employee benefit plans
whose assets are included in such investment fund have been disclosed to the Company in writing pursuant to clause (c); or 
  
 (e) the Source is a governmental plan; or 
  
 (f) the Source is one or more employee benefit plans, or a separate account or trust fund comprised of one or more employee benefit plans,
each of which has been identified to the Company in writing pursuant to this clause (f); or 
  
 (g) the Source does not include assets of any employee benefit plan, other than a plan exempt from the coverage of ERISA. 
  
 As used in this paragraph 9B, the terms “employee benefit plan”,
“governmental plan”, “party in interest” and “separate account” shall have the respective meanings assigned to such terms in Section 3 of ERISA. 
  
 10. DEFINITIONS; ACCOUNTING MATTERS. For the purpose of this
Agreement, the terms defined in paragraphs 10A and 10B (or within the text of any other paragraph) shall have the respective meanings specified therein and all accounting matters shall be subject to determination as provided in paragraph 10C.

  
 10A. Yield-Maintenance Terms. 
  
 “Called Principal” shall mean, with respect to any
Note, the principal of such Note that is to be prepaid pursuant to paragraphs 4B or 4F or is declared to be immediately due and payable pursuant to paragraph 7A, as the context requires. 
  
 “Designated Spread” shall mean .50 of 1%. 
  
 “Discounted Value” shall mean, with respect to the
Called Principal of any Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in
accordance with accepted financial practice and at a discount factor (as converted to reflect the periodic basis on which interest on such Note is payable, if payable other than on a semi-annual basis) equal to the Reinvestment Yield with respect to
such Called Principal. 
  
 “Reinvestment
Yield” shall mean, with respect to the Called Principal of any Note, the Designated Spread over the yield to maturity implied by (i) the yields reported as of 10:00 a.m. (New York City local time) on the Business Day next preceding the
Settlement Date with respect to such Called Principal for actively traded U.S. Treasury securities having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date on the Treasury 

  

 43 

 
Yield Monitor page of Standard & Poor’s MMS – Treasury Market Insight (or, if Standard & Poor’s shall cease to report such yields in
MMS – Treasury Market Insight or shall cease to be Prudential Capital Group’s customary source of information for calculating yield-maintenance amounts on privately placed notes, then such source as is then Prudential Capital Group’s
customary source of such information), or if such yields shall not be reported as of such time or the yields reported as of such time shall not be ascertainable, (ii) the Treasury Constant Maturity Series yields reported, for the latest day for
which such yields shall have been so reported as of the Business Day next preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15(519) (or any comparable successor publication) for actively
traded U.S. Treasury securities having a constant maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date. Such implied yield shall be determined, if necessary, by (a) converting U.S. Treasury bill quotations
to bond equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between yields reported for various maturities. The Reinvestment Yield shall be rounded to that number of decimal places as appears in the coupon
of the applicable Note. 
  
 “Remaining Average
Life” shall mean, with respect to the Called Principal of any Note, the number of years (calculated to the nearest one-twelfth year) obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by
multiplying (a) each Remaining Scheduled Payment of such Called Principal (but not of interest thereon) by (b) the number of years (calculated to the nearest one-twelfth year) which will elapse between the Settlement Date with respect to such Called
Principal and the scheduled due date of such Remaining Scheduled Payment. 
  
 “Remaining Scheduled Payments” shall mean, with respect to the Called Principal of any Note, all payments of such Called Principal and interest thereon that would be due on or after the
Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date. 
  
 “Settlement Date” shall mean, with respect to the Called Principal of any Note, the date on which such Called Principal is to be
prepaid pursuant to paragraph 4 or is declared to be immediately due and payable pursuant to paragraph 7A, as the context requires. 
  
 “Yield-Maintenance Amount” shall mean, with respect to any Fixed Rate Shelf Note, an amount equal to the excess, if any, of the
Discounted Value of the Called Principal of such Note over the sum of (i) such Called Principal plus (ii) interest accrued thereon as of (including interest due on) the Settlement Date with respect to such Called Principal. The Yield-Maintenance
Amount shall in no event be less than zero. For the avoidance of doubt, no Yield-Maintenance Amount shall be payable in connection with any Floating Rate Shelf Note. 
  
 10B. Other Terms. 
  
 “Acceptance” shall have the meaning specified in paragraph 2G. 
  
 “Acceptance Day” shall have the meaning specified in paragraph 2G. 
  
 “Acceptance Window” shall have the
meaning specified in paragraph 2G. 
  

 44 

 “Accepted Note” shall have the meaning specified in paragraph 2G. 
  
 “Acquisition” shall mean the acquisition of (i) a
controlling equity interest in another Person (including the purchase of an option, warrant or convertible or similar type security to acquire such a controlling interest at the time it becomes exercisable by the holder thereof), whether by purchase
of such equity interest or upon exercise of an option or warrant for, or conversion of securities into, such equity interest, or (ii) assets of another Person which constitute all or substantially all of the assets of such Person or of a line or
lines of business conducted by such Person. 
  
 “Act” shall mean the USA PATRIOT Act (Pub.L. No. 107-56, 115 Stat. 272 (2001)). 
  
 “Affiliate” shall mean any Person (i) which directly or indirectly through one or more intermediaries controls, or is controlled
by, or is under common control with the Company; or (ii) which beneficially owns or holds 5% or more of the aggregate voting rights for all of Company’s classes or outstanding Voting Stock (or in the case of a Person which is not a corporation,
5% or more of the aggregate voting rights of such Person) of the Company, or 5% or more of any class of the outstanding Voting Stock (or in the case of a Person which is not a corporation, 5% or more of the aggregate voting rights of such Person) of
which is beneficially owned or held by the Company. The term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of
voting stock, by contract or otherwise. 
  
 “Amendment
Closing Day” shall have the meaning specified in paragraph 3. 
  
 “Authorized Officer” shall mean (i) in the case of the Company, its chief executive officer, its president and chief operating officer, its chief financial officer, any vice president of the
Company designated as an “Authorized Officer” of the Company in the Information Schedule attached hereto or any vice president of the Company designated as an “Authorized Officer” of the Company for the purpose of this Agreement
in an Officer’s Certificate executed by the Company’s chief executive officer or chief financial officer and delivered to Prudential, and (ii) in the case of Prudential, any officer of Prudential designated as its “Authorized
Officer” in the Information Schedule or any officer of Prudential designated as its “Authorized Officer” for the purpose of this Agreement in a certificate executed by one of its Authorized Officers. Any action taken under this
Agreement on behalf of the Company by any individual who on or after the date of this Agreement shall have been an Authorized Officer of the Company and whom Prudential reasonably in good faith believes to be an Authorized Officer of the Company at
the time of such action shall be binding on the Company even though such individual shall have ceased to be an Authorized Officer of the Company, and any action taken under this Agreement on behalf of Prudential by any individual who on or after the
date of this Agreement shall have been an Authorized Officer of Prudential and whom the Company reasonably in good faith believes to be an Authorized Officer of Prudential at the time of such action shall be binding on Prudential even though such
individual shall have ceased to be an Authorized Officer of Prudential. 
  
 “Available Facility Amount” shall have the meaning specified in paragraph 2B. 
  

 45 

 “Bank Agreement” shall mean the Revolving Credit Agreement, dated as of December
10, 2004, among the Company, the lenders party thereto and SunTrust Bank, as Administrative Agent, as it may be amended, modified or supplemented, or replaced or refinanced, from time to time. 
  
 “Bankruptcy Law” shall have the meaning specified in
clause (viii) of paragraph 7A. 
  
 “Base
Rate” shall mean, for any day and for each Floating Rate Loan that bears interest at the Base Rate, the higher of (i) the per annum floating rate established by The Bank of New York (New York, NY) as its “prime rate”
for domestic (United States) commercial loans in effect on such day and (ii) the per annum floating rate equal to one-half of one percent (0.50%) in excess of the Federal Funds Rate. The Bank of New York’s prime rate is a rate set by The Bank
of New York based upon various factors, including The Bank of New York’s costs and desired return, general economic conditions and other factors, and is neither directly tied to an external rate of interest or index nor necessarily the lowest
or best rate of interest actually charged at any given time to any customer or particular class of customers for any particular credit extension. Without notice to the Company or any other Person, The Bank of New York’s “prime rate”
shall change automatically from time to time, based upon publicly announced changes in such rate, with each such change to become effective as of the beginning of business on the day on which any such change is publicly announced. 
  
 “Base Rate Loan” shall mean the amount outstanding
from time to time under any Floating Rate Shelf Note that bears interest at the Base Rate. 
  
 “Base Rate Margin” shall mean, with respect to Base Rate Loans under any Series of Floating Rate Shelf Notes, the margin, specified in the Notes of such Series with respect to Base Rate Loans,
which is to be added to the Base Rate applicable from time to time to such Base Rate Loans. 
  
 “Breakage Cost Obligations” shall have the meaning specified in clause (i) of paragraph 2K(2). 
  
 “Business Day” shall mean any day other than (i) a Saturday or a Sunday, (ii) a day on which commercial banks in States of New
York and Florida are required or authorized to be closed and (iii) for purposes of paragraph 2E hereof only, a day on which Prudential is not open for business. 
  

“Cancellation Date” shall have the meaning specified in paragraph 2J(4). 
  
 “Cancellation Fee” shall have the meaning specified
in paragraph 2J(4). 
  
 “Capital Stock”
shall mean (a) in the case of a corporation, capital stock, (b) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of capital stock, (c) in the case of a
partnership, partnership interests (whether general or limited), (d) in the case of a limited liability company, membership interests and (e) any other interest or participation that confers on a Person the right to receive a share of the profits
and losses of, or distributions of assets of, the issuing Person. 
  

 46 

 “Capitalized Lease Obligation” shall mean any rental obligation which, under
generally accepted accounting principles, is or will be required to be capitalized on the books of the Company or any Subsidiary, taken at the amount thereof accounted for as indebtedness (net of interest expenses) in accordance with such
principles. 
  
 “CERCLA” shall mean the
Comprehensive Environmental Response, Compensation and Liability Act. 
  
 “CERCLIS” shall mean the Comprehensive Environmental Response, Compensation and Liability Inventory System established pursuant to CERCLA. 
  
 “Change in Control” shall mean, at any time: 
  
 (a) with respect to the Company: 
  
 (i) any “person” or “group” (each as
used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) other than Albert Nahmad, Alna Capital Associates or a trust or other entity controlled by either of them or one of their Affiliates (each an “Existing Control
Group”) either (A) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of Voting Stock of the Company (or securities convertible into or exchangeable for such Voting Stock)
representing forty percent (40%) or more of the combined voting power of all Voting Stock of the Company (on a fully diluted basis) or (B) otherwise has the ability, directly or indirectly, to elect a majority of the board of directors of the
Company (provided, that if an event described in this clause (i) shall occur solely by reason of the death of one or more members of the Existing Control Group, then a “Change of Control” shall not be deemed to have occurred so long
as the Voting Stock of the decedent is owned of record by the estate or immediate family of such decedent); 
  
 (ii) during any period of up to twenty-four (24) consecutive months, commencing on the Amendment Closing Day, individuals who at the
beginning of such twenty-four (24)-month period were directors of the Company shall cease for any reason (other than the death, disability or retirement of a director or of an officer of the Company that is serving as a director at such time so long
as another officer of the Company replaces such Person as a director) to constitute a majority of the board of directors of the Company; or 
  
 (iii) any Person or two or more Persons acting in concert other than the Existing Control Group shall have acquired by contract or
otherwise, or shall have consummated a contract or arrangement that results in its or their acquisition of the power to exercise, directly or indirectly, a controlling influence on the management or policies of the Company; or 
  
 (iv) with respect to any Major Subsidiary, 
  

 47 

 (1) the Company shall cease to own, directly or indirectly, at least 100% of the Voting
Stock of each currently existing Major Subsidiary or any other Subsidiary that is or becomes a Major Subsidiary after the date hereof; or 
  
 (vii) any Person or two or more Persons acting in concert other than the Company shall have acquired by contract or otherwise, or shall
have consummated a contract or arrangement that results in its or their acquisition of the power to exercise, directly or indirectly, a controlling influence on the management or policies of such Major Subsidiary. 
  
 “Closing Day” shall mean with respect to any Accepted
Note, the Business Day specified for the closing of the purchase and sale of such Accepted Note in the Request for Purchase of such Accepted Note, provided that (i) if the Company and the Purchaser which is obligated to purchase such Accepted
Note agree on an earlier Business Day for such closing, the “Closing Day” for such Accepted Note shall be such earlier Business Day, and (ii) if the closing of the purchase and sale of such Accepted Note is rescheduled pursuant to
paragraph 2I, the Closing Day for such Accepted Note, for all purposes of this Agreement except references to “original Closing Day” in paragraph 2J(3), shall mean the Rescheduled Closing Day with respect to such Accepted Note. 

 
 “Code” shall mean the Internal Revenue Code of
1986, as amended from time to time, and the rules and regulations promulgated thereunder from time to time. 
  
 “Confirmation of Acceptance” shall have the meaning specified in paragraph 2G. 
  
 “Consolidated” shall mean, with respect to any item
of financial information, the item of financial information for the Company and its Subsidiaries consolidated in accordance with generally accepted accounting principles. 
  
 “Consolidated Debt” shall mean, as of any date of determination, without duplication, all Debt of
the Company and its Subsidiaries (other than as described in subsection (j) under the definition of “Debt” herein), determined on a consolidated basis in accordance with generally accepted accounting principles. For purposes of determining
“Consolidated Debt,” the principal amount of any Synthetic Lease Obligation shall be deemed to be the amount that would be reflected on the balance sheet of the Company and its Subsidiaries if such Synthetic Lease Obligation were
characterized as a capital lease rather than an operating lease. 
  
 “Consolidated EBIT” shall mean, for the Company and its Subsidiaries for any period ending on the date of computation thereof, an amount equal to the sum of (a) Consolidated Net Income for such period plus (b)
to the extent deducted in determining Consolidated Net Income for such period, (i) Consolidated Interest Expense, (ii) income tax expense and (iii) a non-cash charge resulting from a potential impairment of Dunhill’s goodwill; provided,
however, that with respect to an acquisition that is accounted for as a “purchase”, for the period of four full consecutive fiscal quarters of the Company ending next following the date of such acquisition, “Consolidated
EBIT” shall include the results of operations of the Person or assets so acquired, which amounts shall be determined on a historical pro forma basis as if such acquisition had been consummated as a “pooling of interests”.

  

 48 

 “Consolidated EBITDA” shall mean, for the Company and its Subsidiaries for any
period ending on the date of computation thereof, an amount equal to the sum of (a) Consolidated Net Income for such period plus (b) to the extent deducted in determining Consolidated Net Income for such period, (i) Consolidated Interest
Expense, (ii) income tax expense, (iii) depreciation and amortization and (iv) a non-cash charge resulting from a potential impairment of Dunhill’s goodwill; provided, however, that with respect to an acquisition that is accounted for as
a “purchase”, for the period of four full consecutive fiscal quarters of the Company ending next following the date of such acquisition, “Consolidated EBITDA” shall include the results of operations of the Person or
assets so acquired, which amounts shall be determined on a historical pro forma basis as if such acquisition had been consummated as a “pooling of interests”. 
  
 “Consolidated Interest Expense” shall mean, for the Company and its Subsidiaries for any period
ending on the date of computation thereof, determined on a consolidated basis in accordance with generally accepted accounting principles, the sum of (a) total cash interest expense, including without limitation, the interest component of any
payments in respect of Capitalized Lease Obligations during such period (whether or not actually paid during such period) plus (b) the net amount payable (or minus the net amount receivable) under Hedging Agreements during such period
(whether or not actually paid or received during such period). 
  
 “Consolidated Net Income” shall mean, for any period, the net income (or loss) of the Company and its Subsidiaries for such period determined on a consolidated basis in accordance with generally accepted accounting
principles, but excluding therefrom (to the extent otherwise included therein) (a) any extraordinary gains or losses, (b) any gains attributable to write-ups of assets, (c) any equity interest of the Company or any Subsidiary in the unremitted
earnings of any Person that is not a Subsidiary and (d) any income (or loss) of any Person accrued prior to the date it becomes a Subsidiary or is merged into or consolidated with the Company or any Subsidiary on the date that such Person’s
assets are acquired by the Company or any Subsidiary. 
  
 “Consolidated Net Worth” shall mean, as of any date, (a) the total assets of the Company and its Subsidiaries that would be reflected on the Company’s consolidated balance sheet as of such date prepared in
accordance with generally accepted accounting principles, after eliminating (i) all amounts properly attributable to minority interests, if any, in the stock and surplus of Subsidiaries, (ii) a non-cash charge resulting from a potential impairment
of Dunhill’s goodwill, minus (b) the total liabilities of the Company and its Subsidiaries that would be reflected on the Company’s consolidated balance sheet as of such date prepared in accordance with generally accepted accounting
principles. 
  
 “Consolidated Total
Assets” shall mean, for the Company and its Subsidiaries for any period ending on the date of computation thereof, determined on a consolidated basis in accordance with generally accepted account principles, the aggregate book value of
the assets of the Company and its Subsidiaries for such period. 
  

 49 

 “Consolidated Total Capitalization” shall mean, at any time, the sum of (i)
Consolidated Debt at such time plus (ii) Consolidated Net Worth at such time. 
  
 “Consolidated Total Revenues” shall mean, for the Company and its Subsidiaries for any period ending on the date of computation thereof, determined on a consolidated basis in accordance with
generally accepted accounting principles, the total revenues of the Company and its Subsidiaries for such period. 
  
 “Debt” with respect to any Person means, at any time, without duplication, 
  
 (a) its liabilities for borrowed money; 
  
 (b) its liabilities for the deferred purchase price of
property or services other than trade payables incurred in the ordinary course of business; provided, that trade payables overdue by more than one hundred twenty (120) days shall be included in this definition except to the extent that any of
such trade payables are being disputed in good faith and by appropriate measures); 
  
 (c) all liabilities created or arising under any conditional sale or other title retention agreement(s) relating to property acquired by
such Person; 
  
 (d) its Capitalized Lease
Obligations; 
  
 (e) all liabilities, contingent
or otherwise, in respect of letters of credit, acceptances or similar extensions of credit; 
  
 (f) all liabilities for borrowed money secured by any Lien with respect to any property owned by such Person (whether or not it has
assumed or otherwise become liable for such liabilities); 
  
 (g) any Guaranty of such Person with respect to liabilities of a type described in any of clauses (a) through (f) hereof; 
  
 (h) all liabilities, contingent or otherwise, to purchase, redeem, retire or otherwise acquire for value any common stock of such Person;

  
 (i) Off-Balance Sheet Liabilities;

  
 (j) liabilities under any Hedging Agreements;
and 
  
 (k) all Securitization Transactions.

  
 Debt of any Person shall include the Debt of any other entity (including any
partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Debt provide
that such Person is not liable therefor. 
  

 50 

 “Default Rate” shall mean, with respect to each Series of Floating Rate Loans, a
rate that is 2.00% over the rate of interest otherwise applicable to such Series in effect from time to time. 
  
 “Delayed Delivery Fee” shall have the meaning specified in paragraph 2J(3). 
  
 “Dunhill” shall mean Dunhill Staffing Systems, Inc.,
a Delaware corporation and its Subsidiaries, Dunhill Temporary Systems, Inc., a New York corporation, and Dunhill Personnel Systems of New Jersey, Inc., a New Jersey corporation, each of which is a Subsidiary as of the Amendment Closing Date.

  
 “Eligible Securities” shall mean the
following obligations and any other obligations previously approved in writing by the Required Holders: 
  
 (a) Government Securities; 
  
 (b) certificates of deposits, bankers’ acceptances and time deposits maturing within 180 days from the date of acquisition thereof
and issued or guaranteed by or place with, and money market deposit accounts issued or offered by, any domestic office of any commercial bank organized under the laws of the United States or of any state thereof which has a combined capital surplus
and undivided profits of not less than $500,000,000; 
  
 (c) fully collateralized repurchase agreements with a term of not more than thirty (30) days for securities described in clause (a) above and entered into with a financial institution satisfying the criteria described in clause (b) above;

  
 (d) commercial paper having the highest
rating, at the time of acquisition thereof, of S&P or Moody’s and in either case maturing within six (6) months from the date of acquisition thereof; 
  

(e) shares of mutual funds which invest solely in any one or more of the obligations described in clauses (a) through (d) above;

  
 (f) debt securities with a maturity of no
greater than 365 days and rated at least “A-” by S&P or at least “A3” by Moody’s; and 
  
 (g) subject to the limitation set forth in paragraph 6H, other debt or equity securities which are listed on a national securities
exchange or freely traded in the over-the-counter market so long as the cost of such securities does not exceed in the aggregate $5,000,000. 
  
 “Environmental Authority” shall mean any foreign, federal, state, local or regional government that exercises any duly authorized
form of jurisdiction or authority under any Environmental Requirement. 
  
 “Environmental Judgments and Orders” shall mean all judgments, decrees or orders arising from or in any way associated with any Environmental Requirements, whether or not entered upon consent or written agreements
with an Environmental Authority or other duly authorized entity arising from or in any way associated with any Environmental Requirement, whether or not incorporated in a judgment, degree or order. 
  

 51 

 “Environmental Liabilities” shall mean any liabilities, contingent or otherwise
(including any liability for damages, costs of environmental investigation and remediation, costs of administrative oversight, fines, natural resource damages, penalties or indemnities), of the Company or any Subsidiary directly or indirectly
resulting from or based upon (a) any actual or alleged violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) any actual or alleged exposure to any
Hazardous Materials, (d) the Release or threatened Release of any Hazardous Materials or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing. 

 
 “Environmental Notices” shall mean any written
communication from any Environmental Authority stating possible or alleged noncompliance with or possible or alleged liability under any Environmental Requirement, including without limitation any complaints, citations, demands or requests from any
Environmental Authority for correction of any purported violation of any Environmental Requirements or any investigation concerning any purported violation of any Environmental Requirements. Environmental Notices also shall mean (i) any written
communication from any other Person threatening litigation or administrative proceedings against or involving the Company relating to alleged violation of any Environmental Requirements and (ii) any complaint, petition or similar documents filed by
any other Person commencing litigation or administrative proceedings against or involving the Company relating to alleged violation of any Environmental Requirements. 
  
 “Environmental Proceedings” shall mean any judicial or administrative proceedings arising from or in
any way associated with any Environmental Requirement. 
  
 “Environmental Releases” shall mean releases (as defined in CERCLA or under any applicable state or local environmental law or regulation) of Hazardous Materials. Environmental Releases does not include releases for
which no remediation or reporting is required by applicable Environmental Requirements and which do not present a danger to health, safety or the environment. 
  

“Environmental Requirements” shall mean any applicable local, state or federal law, rule, regulation, permit, order, decision,
determination or requirement relating in any way to Hazardous Materials or to health, safety or the environment. 
  
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. 
  
 “ERISA Affiliate” shall mean any corporation which is
a member of the same controlled group of corporations as the Company within the meaning of Section 414(b) of the Code, or any trade or business which is under common control with the Company within the meaning of section 414(c) of the Code.

  

 52 

 “ERISA Event” shall mean (a) any “reportable event”, as defined in
Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day notice period is waived); (b) the existence with respect to any Plan of an “accumulated funding deficiency” (as
defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application for a waiver of the minimum funding standard with respect to any
Plan; (d) the incurrence by the Company or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by the Company or any ERISA Affiliate from the PBGC or a plan administrator
appointed by the PBGC of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the Company or any of its ERISA Affiliates of any liability with respect to the
withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the Company or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Company or any ERISA Affiliate of any notice, concerning
the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA. 
  
 “Event of Default” shall mean any of the events specified in paragraph 7A, provided that
there has been satisfied any requirement in connection with such event for the giving of notice, or the lapse of time, or the happening of any further condition, event or act, and “Default” shall mean any of such events, whether or not any
such requirement has been satisfied. 
  
 “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended. 
  
 “Facility” shall have the meaning specified in paragraph 2B. 
  
 “Facility Fee” shall have the meaning specified in paragraph 2J(1). 
  
 “Fair Market Value” shall mean, at any time, the sale value of property that would be realized in an
arm’s-length sale at such time between an informed and willing buyer, and an informed and willing seller, under no compulsion to buy or sell, respectively. 
  

“Federal Funds Rate” shall mean, for any day, the rate set forth in the weekly statistical release designated as H.15(519), or
any successor publication, published by the Federal Reserve Board (including any such successor, “H.15(519)”) for such day opposite the caption “Federal Funds (Effective).” If on any relevant day such rate is not yet published in
H.15(519), the rate for such day will be the rate set forth in the daily statistical release designated as the Composite 3:30 p.m. Quotations for U.S. Governmental Securities, or any successor publication, published by the Federal Reserve Bank of
New York (including any such successor, the “Composite 3:30 p.m. Quotation”) for such day under caption “Federal Funds Effective Rate.” If on any relevant day the appropriate rate for such day is not yet published in either
H.15(519) or the Composite 3:30 p.m. Quotation, the rate for such day will be the arithmetic mean of the rates for the last transaction in overnight Federal funds arranged prior to 9:00 a.m. (New York City local time) on that day by each of three
leading brokers of federal funds transactions in New York City selected by the holder of the greatest aggregate principal amount of the Notes of the applicable Series of Notes. 
  

 53 

 “Governmental Authority” shall mean any Federal, state, municipal, local,
national or other governmental department, commission, board, bureau, court, agency or instrumentality or political subdivision thereof or any entity or officer exercising executive, legislative, judicial, regulatory or administrative functions of
or pertaining to any government or any court, in each case whether associated with a State of the United States, the United States, or a foreign entity or government. 
  
 “Government Securities” shall mean direct obligations of, or obligations the timely payment of
principal and interest on which are fully and unconditionally guaranteed by, the United States of America (or by any agency thereof to the extent such obligations are backed by the full faith and credit of the United States), in each case maturing
within one year from the date of acquisition thereof. 
  
 “Guarantors” shall mean, collectively, the Subsidiaries of the Company listed on Schedule 10B and any Subsidiary that becomes a Guarantor in accordance with paragraph 5D hereof. 
  
 “Guaranty” or “Guarantee”
shall mean, with respect to any Person, any obligation (except the endorsement in the ordinary course of business of negotiable instruments for deposit or collection) of such Person guaranteeing or in effect guaranteeing any indebtedness, dividend
or other obligation of any other Person in any manner, whether directly or indirectly, including (without limitation) obligations incurred through an agreement, contingent or otherwise, by such Person: 
  
 (i) to purchase such indebtedness or obligation or any
property constituting security therefor; 
  
 (ii)
to advance or supply funds for the purchase or payment of such indebtedness or obligation, or to maintain any working capital or other balance sheet condition or any income statement condition of any Person or otherwise to advance or make available
funds for the purchase or payment of such indebtedness or obligation; 
  
 (iii) to lease properties or to purchase properties or services primarily for the purpose of assuring the owner of such indebtedness or obligation of the ability of any other Person to make payment of the indebtedness
or obligation; or 
  
 (iv) otherwise to assure
the owner of such indebtedness or obligation against loss in respect thereof. 
  
 In any computation of the indebtedness or other liabilities of the obligor under any Guaranty, the indebtedness or other obligations that are the subject of such Guaranty shall be assumed to be direct obligations of such obligor.

  
 “Guaranty Agreement” shall mean any
one of the Guaranty Agreements. 
  
 “Guaranty
Agreements” shall mean collectively, each Guaranty Agreement, in substantially the form of Exhibit E hereto, dated as of the date hereof (in the case of the 

  

 54 

 
Guarantors listed on Schedule 10(B) or dated the date upon which a Subsidiary of the Company becomes a Guarantor in accordance with paragraph 5D, executed
and delivered by each Guarantor in each case in connection with this Agreement, as such Guaranty Agreement may be amended, restated modified or supplemented from time to time in accordance with its terms. 
  
 “Hazardous Materials” shall mean (a) hazardous waste
as defined in the Resource Conservation and Recovery Act of 1976, or in any applicable federal, state or local law or regulation, (b) hazardous substances, as defined in CERCLA, or in any applicable state or local law or regulation, (c) gasoline, or
any other petroleum product or by-product, (d) toxic substances, as defined in the Toxic Substances Control Act of 1976, or in any applicable federal, state or local law or regulation or (e) insecticides, fungicides, or rodenticides, as defined in
the Federal Insecticide, Fungicide, and Rodenticide Act of 1975, or in any applicable federal, state or local law or regulation, as each such Act, statute or regulation may be amended from time to time. 
  
 “Hedge Treasury Note(s)” shall mean, with respect to
any Accepted Note, the United States Treasury Note or Notes whose duration (as determined by Prudential) most closely matches the duration of such Accepted Note. 
  
 “Hedging Agreements” shall mean interest rate swap, cap or collar agreements, interest rate future
or option contracts, currency swap agreements, currency future or option contracts, foreign exchange agreements, commodity agreements and other similar agreements or arrangements designed to protect against fluctuations in interest rates, currency
values or commodity values. 
  
 “Hostile Tender
Offer” shall mean, with respect to the use of proceeds of any Note, any offer to purchase, or any purchase of, shares of capital stock of any corporation or equity interests in any other entity, or securities convertible into or
representing the beneficial ownership of, or rights to acquire, any such shares or equity interests, if such shares, equity interests, securities or rights are of a class which is publicly traded on any securities exchange or in any over-the-counter
market, other than purchases of such shares, equity interest, securities or rights representing less than 5% of the equity interests or beneficial ownership of such corporation or other entity for portfolio investment purposes, and such offer or
purchase has not been duly approved by the board of directors of such corporation or the equivalent governing body of such other entity prior to the date on which the Company makes the Request for Purchase of such Note. 
  
 “including” shall mean, unless the context clearly
requires otherwise, “including without limitation”. 
  
 “Institutional Investors” shall mean (i) any bank, savings bank, savings and loan association or insurance company, (ii) any pension plan or portfolio or investment fund managed or administered by any bank, savings
bank, savings and loan association or insurance company, (iii) any investment company owned by any bank, savings bank, savings and loan association or insurance company, the majority of the shares of the capital stock of which are traded on a
national securities exchange or in the National Association of Securities Dealers automated quotation system, or (iv) any investment banking company. 
  

 55 

 “Intangibles” shall mean goodwill, patents, trademarks, trade names, organization
expense, licenses, franchises, exploration permits and import and export permits and other like intangibles, determined in accordance with generally accepted accounting principles. 
  
 “Interest Coverage Ratio” shall mean as of any date of determination with respect to the Company,
the ratio of (a) Consolidated EBIT as of such date to (b) Consolidated Interest Expense as of such date. 
  
 “Interest Period” shall mean, as to any LIBOR Loan, the period commencing on the date such LIBOR Loan is made or, in the case of a
continuation of an existing LIBOR Loan as a LIBOR Loan or a conversion of an existing Base Rate Loan into a LIBOR Loan, on the last day of the immediately preceding Interest Period applicable thereto, and ending on the numerically corresponding day
(or, if there is no numerically corresponding day, on the last day) in the calendar month that is one, two, three or six months (as the Company may elect or be deemed to elect as provided herein or as otherwise provided herein) thereafter;
provided, however, that, if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar
month, in which case such Interest Period shall end on the next preceding Business Day. Interest shall accrue from and including the first day of an Interest Period to but excluding the earlier of (a) the last day of such Interest Period or (b) the
day on which the applicable LIBOR Loan is repaid or prepaid in full. 
  
 “Investment” shall mean, when used with respect to any Person, any direct or indirect advance, loan or other extension of credit or capital contribution by such Person (by means of transfers of property to others or
payments for property or services for the account or use of others, or otherwise) to any other Person, or any direct or indirect purchase or other acquisition or beneficial ownership by such Person of, or of a beneficial interest in, Capital Stock,
partnership interests, bonds, notes, debentures or other securities issued by any other Person or the assumption of any liability of any other Person. 
  
 “Issuance Fee” shall have the meaning specified in paragraph 2J(2). 
  
 “Issuance Period” shall have the meaning specified in paragraph 2C. 
  
 “Issued Series A Note” shall have the meaning
specified in paragraph 1A. 
  
 “LIBOR
Loan” shall mean an amount outstanding from time to time under any Floating Rate Shelf Note that bears interest at the LIBOR Rate. 
  
 “LIBOR Rate” shall mean, for any Interest Period for each LIBOR Loan for such Interest Period: 
  
 (i) the interest rate per annum (rounded upwards, if
necessary, to the next higher 1/100th of 1%) for deposits in U.S. Dollars, for a period of time comparable to such Interest Period, as reported by the British Bankers’ Association as of 11:00 a.m. London time on the day that is two Business
Days prior to the first day of such Interest Period; or 
  

 56 

 (ii) if such rate ceases to be reported in accordance with the above clause (i) or is
unavailable, the average (rounded upward to the nearest whole multiple of 1/16 of 1% per annum, if such average is not such a multiple) of the rate per annum quoted by each of the Reference Banks at approximately 11:00 A.M. (New York City) on
the first day of such Interest Period for loans in U.S. dollars to major banks in the London interbank eurodollar market for a period equal to such Interest Period, commencing on the first day of such Interest Period, and in an amount comparable to
the aggregate outstanding principal amount of the applicable LIBOR Loan. 
  
 As used in this definition, “Reference Banks” shall mean three major banks in the London interbank market selected by the holder of the greatest aggregate principal amount of the Notes of the
applicable Series. 
  
 “LIBOR Rate Margin”
shall mean, with respect to LIBOR Loans under any Series of Floating Rate Shelf Notes, the margin, specified in the Notes of such Series with respect to LIBOR Loans, which is to be added to any applicable LIBOR Rate for such LIBOR Rate Loans.

  
 “Lien” shall mean any interest in
property securing any obligation owed to, or a claim by, a Person other than the owner of the property, whether such interest is based on the common law, statute or contract, and including but not limited to the lien or security interest arising
from a mortgage, encumbrance, pledge, security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes except a Lien granted for precautionary purposes with respect to a true lease or other true
bailment. Subject to the foregoing, for the purposes of this Agreement, the Company and any Subsidiary shall be deemed to be the owner of any property which it has acquired or holds subject to a conditional sale agreement, financing lease, or other
arrangement pursuant to which title to the property has been retained by or vested in some other Person for security purposes. 
  
 “Major Subsidiary” shall mean, collectively, (a) Baker Distributing Company LLC, a Delaware limited liability company, Gemaire
Distributors LLC, a Delaware limited liability company, HBA Distributors LLC, a Delaware limited liability company, Heating & Cooling Supply LLC, a California limited liability company, and Three States Supply Company LLC, a Tennessee limited
liability company, and (b) any other direct or indirect Subsidiary of the Company having at any time: (i) assets in an amount equal to at least 10% of the Consolidated Total Assets of the Company and its Subsidiaries determined as of the last day of
the most recent fiscal quarter of the Company as reflected in the Company’s most recent financial statements required by paragraphs 5A(1)(i) or (ii); or (ii) revenues or net income in an amount equal to at least 10% of the Consolidated Total
Revenues or Consolidated Net Income of the Company and its Subsidiaries for the 12-month period ending on the last day of the most recent fiscal quarter of the Company as reflected in the Company’s most recent financial statements required by
paragraphs 5A(1)(i) or (ii). 
  
 “Material Adverse
Effect” shall mean, with respect to any event, act, condition or occurrence of whatever nature (including any adverse determination in any litigation, arbitration, or governmental investigation or proceeding), whether singly or in
conjunction with any other event or events, act or acts, condition or conditions, occurrence or occurrences whether or not related, a material adverse change in, or a material adverse effect on, (a) the business, results of 

  

 57 

 
operations, financial condition, assets, liabilities or prospects of the Company and of the Company and its Subsidiaries, taken as a whole, (b) the ability
of the Company and its Subsidiaries to perform any of their respective obligations under this Agreement, the Note or any other Related Document, (c) the rights and remedies of the Purchasers under this Agreement, the Notes or any other Related
Document or (d) the legality, validity or enforceability of any of the Related Documents. 
  
 “Material Agreement” shall mean any agreement filed pursuant to Item 601(b)(10) of Regulation S-K with the Company’s most recent Annual Report on Form 10-K. 
  
 “Material Debt” shall mean Debt (other than the
Notes) or obligations in respect of one or more Hedging Agreements, to a single Person and such Person’s Affiliates of an aggregate principal amount exceeding $10,000,000. For purposes of determining “Material Debt,” the
“principal amount” of the obligations of the Company or any Subsidiary in respect to any Hedging Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Company or such Subsidiary
would be required to pay if such Hedging Agreement were terminated at such time. 
  
 “Moody’s” shall mean Moody’s Investors Service, Inc. or any successor thereto. 
  
 “Material Provision” shall have the meaning specified in paragraph 5J. 
  
 “Multiemployer Plan” shall mean any Plan which is a
“multiemployer plan” (as such term is defined in Section 4001(a)(3) of ERISA. 
  
 “Notes” shall have the meaning specified in paragraph 1. 
  
 “OFAC” shall mean the U.S. Department of Treasury’s Office of Foreign Assets Control. 
  
 “Off-Balance Sheet Liabilities” of any Person shall
mean (a) any repurchase obligation or liability of such Person with respect to accounts or notes receivable sold by such Person, (b) any liability of such Person under any sale and leaseback transactions which do not create a liability on the
balance sheet of such Person, (c) any Synthetic Lease Obligation or (d) any obligation arising with respect to any other transaction which is the functional equivalent of or takes the place of borrowing but which does not constitute a liability on
the balance sheet of such Person. 
  
 “Officer’s
Certificate” shall mean a certificate signed in the name of the Company by its President, one of its Vice Presidents or its Treasurer. 
  
 “Person” shall mean and include an individual, a partnership, a joint venture, limited liability company, a corporation, a trust,
an unincorporated organization and a government or any department or agency thereof. 
  
 “Plan” shall mean any employee pension benefit plan (as such term is defined in Section 3 of ERISA) which is or has been established or maintained, or to which contributions are or have been
made, by the Company or any ERISA Affiliate. 
  

 58 

 “Prepayment Compensation Amount” shall mean, with respect to any prepayment of
all or any portion of any Series of the Floating Rate Shelf Notes, the portion of the prepayment amount in excess of par. 
  
 “Prepayment Compensation Percentage” shall mean, for Floating Rate Shelf Notes, (i) 2% of any principal prepaid on any Series of
Notes on or prior to the first anniversary of the Closing Day for such Series of Notes, (ii) 1% of any principal prepaid on any Series of Notes after the first anniversary, but on or prior to the second anniversary, of the Closing Day for such
Series of Notes and (iii) 0% thereafter, unless the Confirmation of Acceptance with respect to the Notes of such Series specifies a different Prepayment Compensation Percentage in which case it shall mean, with respect to each Note of such Series,
the Prepayment Compensation Percentage so specified. 
  
 “Priority Debt” shall mean with respect to any Person, at any time, without duplication, the sum of 
  
 (i) Debt of each Subsidiary (other than (a) Debt described in clause (vii) of paragraph 6B(2), (b) Debt held by the Company, any Guarantor
or another wholly-owned Subsidiary, or (c) Debt of any Subsidiary which constitutes Debt of such Subsidiary because it is a Guaranty of Debt of the Company); and 
  
 (ii) Debt of such Subsidiary secured by any Lien other than a Lien described in clauses (ii), (iii) or (v)
of paragraph 6B(1). 
  
 “Properties” shall
mean all real property owned, leased or otherwise used or occupied by the Company or any Subsidiary, wherever located. 
  
 “Proposed Prepayment Date” shall have the meaning specified in paragraph 4F(3). 
  
 “Prudential” shall mean The Prudential Insurance
Company of America. 
  
 “Prudential
Affiliate” shall mean (i) any corporation or other entity controlling, controlled by, or under common control with, Prudential and (ii) any managed account or investment fund which is managed by Prudential or a Prudential Affiliate
described in clause (i) of this definition. For purposes of this definition the terms “control”, “controlling” and “controlled” shall mean the ownership, directly or through subsidiaries, of a majority of a
corporation’s or other entity’s Voting Stock or equivalent voting securities or interests. 
  
 “Purchasers” shall mean with respect to any Accepted Notes, Prudential and/or the Prudential Affiliate(s), which are purchasing
such Accepted Notes. 
  
 “QPAM Exemption”
shall mean Prohibited Transaction Class Exemption 84-14 issued by the United States Department of Labor. 
  
 “Receivables” shall mean accounts receivable (including, without limitation, all rights to payment created or arising from the
sales of goods, leases of goods or the rendition of services, no matter how evidenced and whether or not earned by performance). 
  

 59 

 “Related Documents” shall mean this Agreement, any Note, each Guaranty Agreement
and any document or instrument executed in connection with any of the foregoing. 
  
 “Request for Purchase” shall have the meaning specified in paragraph 2E. 
  
 “Required Holder(s)” shall mean the holder or holders of at least 66-2/3% of the aggregate principal amount of the Notes or of a
Series of Notes, as the context may require, from time to time outstanding. 
  
 “Rescheduled Closing Day” shall have the meaning specified in paragraph 2I. 
  
 “Responsible Officer” shall mean the chief executive officer, chief operating officer, chief financial officer or chief accounting
officer of the Company, general counsel of the Company or any other officer of the Company involved principally in its financial administration or its controllership function. 
  
 “Restricted Payments”shall have the meaning specified in paragraph 6J. 
  
 “S&P” shall mean Standard & Poor’s
Rating Group or any successor thereto. 
  
 “Securities
Act” shall mean the Securities Act of 1933, as amended. 
  
 “Securitization Transaction” shall mean (a) any transfer by the Company or any Subsidiary of Receivables or interests therein and all collateral securing such Receivables, all contracts and contract rights and all
guarantees or other obligations in respect of such Receivables, all other assets that are customarily transferred or in respect of which security interests are customarily granted in connection with asset securitization transactions involving such
Receivables and all proceeds of any of the foregoing (i) to a trust, partnership, corporation or other entity (other than the Company or a Subsidiary other than a SPE Subsidiary), which transfer is funded in whole or in part, directly or indirectly,
by the incurrence or issuance by the transferee or any successor transferee of indebtedness or other securities that are to receive payments from, or that represent interests in, the cash flow derived from such Receivables or interests in
Receivables, or (ii) directly to one or more investors or other purchasers (other than the Company or any Subsidiary), or (b) any transaction in which the Company or a Subsidiary incurs Debt or other obligations secured by Liens on Receivables. The
“amount” or “principal amount” of any Securitization Transaction shall be deemed at any time to be (x) in the case of a transaction described in clause (a) of the preceding sentence, the aggregate principal or stated amount of
the Debt or other securities referred to in such clause or, if there shall be no such principal or stated amount, the uncollected amount of the Receivables transferred pursuant to such Securitization Transaction net of any such Receivables that have
been written off as uncollectible, and (y) in the case of a transaction described in clause (b) of the preceding sentence, the aggregate outstanding principal amount of the Debt secured by Liens on the subject Receivables. 
  
 “Series” shall have the meaning specified in
paragraph 1. 
  
 “Shelf Note(s)” shall
have the meaning specified in paragraph 1B. 
  

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 “Significant Holder” shall mean (i) Prudential, so long as Prudential or any
Prudential Affiliate shall hold (or be committed under this Agreement to purchase) any Note, or (ii) any other holder of at least 10% of the aggregate principal amount of the Notes of any Series from time to time outstanding. 
  
 “Solvent” or “Solvency” shall
mean, with respect to any Person as of a particular date, that on such date (a) such Person is able to realize upon its assets and pay its debts and other liabilities, contingent obligations and other commitments as they mature in the normal course
of business, (b) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay as such debts and liabilities mature in their ordinary course, (c) such Person is not engaged in
a business or a transaction, and is not about to engage in a business or a transaction, for which such Person’s properties and assets would constitute unreasonably small capital after giving due consideration to the prevailing practice in the
industry in which such Person is engaged or is to engage, (d) the fair value of the properties and assets of such Person is greater than the total amount of liabilities, including, without limitation, contingent liabilities, of such Person and (e)
the present fair saleable value of the properties and assets of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured. In computing the amount of
contingent liabilities at any time, it is intended that such liabilities will be computed at the amount that, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an
actual or matured liability. 
  
 “SPE
Subsidiary” shall mean any Subsidiary formed solely for the purpose of, and that engages only in, one or more Securitization Transactions. 
  
 “Subsidiary” shall mean, with respect to any Person (the “parent”), any corporation, partnership, joint
venture, limited liability company, association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with
generally accepted accounting principles as of such date, as well as any other corporation, partnership, joint venture, limited liability company, association or other entity (a) of which securities or other ownership interests representing more
than fifty percent (50%) of the equity or more than fifty percent (50%) of the ordinary voting power, or in the case of a partnership, more than fifty percent (50%) of the general partnership interests are, as of such date, owned, Controlled or
held, or (b) that is, as of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent. Unless otherwise indicated, all references to “Subsidiary”
hereunder shall mean a Subsidiary of the Company. 
  
 “Substantial Part” shall mean, with respect to any transfer, assets which (i)(A) together with all other assets disposed of in the same fiscal year constitute 10% or more of Consolidated Total Assets determined as of
the end of the immediately preceding fiscal year or (B) have contributed 10% or more of Consolidated Net Income for any of the three most recently completed fiscal years and (ii) from the date hereof the aggregate book value or, if higher, Fair
Market Value of all Disposed assets exceed 25% of Consolidated Total Assets. 
  
 “Synthetic Lease” shall mean a lease transaction under which the parties intend that (a) the lease will be treated as an “operating lease” by the lessee pursuant to Statement of
Financial Accounting Standards No. 13, as amended, and (b) the lessee will be entitled to various tax and other benefits ordinarily available to owners (as opposed to lessees) of like property. 
  

 61 

 “Synthetic Lease Obligations” shall mean, with respect to any Person, the sum of
(a) all remaining rental obligations of such Person as lessee under Synthetic Leases that are attributable to principal and, without duplication, (b) all rental and purchase price payment obligations of such Person under such Synthetic Leases
assuming such Person exercises the option to purchase the lease property at the end of the lease term. 
  
 “Third Party” shall mean all lessees, sublessees, licensees and other users of the Properties, excluding those users of the
Properties in the ordinary course of the Company’s business (consistent with its practices on the Amendment Closing Day) and on a temporary basis. 
  
 “Transferee” shall mean any direct or indirect transferee of all or any part of any Note purchased by any Purchaser under this
Agreement. 
  
 “Voting Stock” shall mean,
with respect to any Person, Capital Stock issued by such Person the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even
though the right to vote has been suspended by the happening of such a contingency. 
  
 10C. Accounting Principles, Terms and Determinations. All references in this Agreement to “generally accepted accounting principles” shall be deemed to refer to generally accepted accounting
principles in effect in the United States at the time of application thereof. Unless otherwise specified herein, all accounting terms used herein shall be interpreted, all determinations with respect to accounting matters hereunder shall be made,
and all unaudited financial statements and certificates and reports as to financial matters required to be furnished hereunder shall be prepared, in accordance with generally accepted accounting principles applied on a basis consistent with the most
recent audited financial statements delivered pursuant to clause (ii) of paragraph 5A or, if no such statements have been so delivered, the most recent audited financial statements referred to in clause (i) of paragraph 8B. 
  
 11. MISCELLANEOUS. 
  
 11A. Payments. The Company agrees that, so long as any
Purchaser shall hold any Note, it will make payments of principal of, interest on, any Yield-Maintenance Amount, any Prepayment Compensation Amount and any Breakage Cost Obligations payable with respect to, such Note, which comply with the terms of
this Agreement, by wire transfer of immediately available funds for credit (not later than 12:00 noon, New York City local time, on the date due) to (i) the account or accounts of such Purchaser specified in the Confirmation of Acceptance with
respect to such Note in the case of any Shelf Note or (ii) such other account or accounts in the United States as such Purchaser may from time to time designate in writing, notwithstanding any contrary provision herein or in any Note with respect to
the place of payment. Each Purchaser agrees that, before disposing of any Note, it will make a notation thereon (or on a schedule attached thereto) of all principal payments previously made thereon and of the date to which interest thereon has been
paid. The Company agrees to afford the benefits of this paragraph 11A to any Transferee which shall have made the same agreement as the Purchasers have made in this paragraph 11A. 
  

 62 

 11B. Expenses. The Company agrees, whether or not the transactions contemplated hereby
shall be consummated, to pay, and save Prudential, each Purchaser and any Transferee harmless against liability for the payment of, all out-of-pocket expenses arising in connection with such transactions, including: 
  
 (i) all taxes (together in each case with interest and
penalties, if any), other than state, federal, local or foreign income taxes, intangible taxes, or franchise taxes, including without limitation, all stamp, recording and other similar taxes, which may be payable with respect to the execution and
delivery of this Agreement or the execution, delivery or acquisition of any Note; 
  
 (ii) all document production and duplication charges and the fees and expenses of any special counsel engaged by the Purchasers in
connection with this Agreement, the transactions contemplated hereby and any subsequent proposed modification of, or proposed consent under, this Agreement, whether or not such proposed modification shall be effected or proposed consent granted;
provided, however, that in connection with the fees and expenses of legal counsel of the Purchasers incurred prior to the Amendment Closing Day, the Purchasers shall agree to use the Facility Fee paid by the Company under paragraph 2J(1) to
pay all or a portion of such fees and expenses; 
  
 (iii) the costs and expenses, including fees and expenses of legal counsel incurred by you, any other Purchaser or any Transferee in connection with the restructuring, refinancing or “work out” of this Agreement or the Notes or
the transactions contemplated hereby or thereby or in enforcing (or determining whether or how to enforce) any rights under this Agreement or the Notes or in responding to any subpoena or other legal process or informal investigative demand issued
in connection with this Agreement or the Notes or the transactions contemplated hereby or by reason of your or any Transferee’s having acquired any Note, including without limitation costs and expenses incurred in any bankruptcy case; and

  
 (iv) any civil penalty or fine assessed by
OFAC against you, any other Purchaser or any Transferee and all reasonable costs and expenses (including counsel fees and disbursements) incurred in connection with defense thereof, as a result of the purchase of the Notes or the acceptance of
payments under the Related Documents. 
  
 Notwithstanding the foregoing, the
Company shall not be liable for any counsel fees incurred by any Purchaser or Transferee arising in connection with a transfer in the ordinary course of any Note or portion thereof or interest therein by Prudential or any other Purchaser to any
Transferee. The obligations of the Company under this paragraph 11B shall survive the transfer of any Note or portion thereof or interest therein by any Purchaser or any Transferee and the payment of any Note. 
  

 63 

 11C. Consent to Amendments. This Agreement may be amended, and the Company may take any
action herein prohibited, or omit to perform any act herein required to be performed by it, if the Company shall obtain the written consent to such amendment, action or omission to act, of the Required Holder(s) of the Notes of each Series except
that, (i) with the written consent of the holders of all Notes of a particular Series, and if an Event of Default shall have occurred and be continuing, of the holders of all Notes of all Series, at the time outstanding (and not without such written
consents), the Notes of such Series may be amended or the provisions thereof waived to change the maturity thereof, to change or affect the principal thereof, or to change or affect the rate or time of payment of interest on or any Yield-Maintenance
Amount, any Prepayment Compensation Amount or any Breakage Cost Obligations payable with respect to the Notes of such Series, (ii) without the written consent of the holder or holders of all Notes at the time outstanding, no amendment to or waiver
of the provisions of this Agreement shall change or affect the provisions of paragraph 7A or this paragraph 11C insofar as such provisions relate to proportions of the principal amount of the Notes of any Series, or the rights of any individual
holder of Notes, required with respect to any declaration of Notes to be due and payable or with respect to any consent, amendment, waiver or declaration, (iii) with the written consent of Prudential (and not without the written consent of
Prudential) the provisions of paragraph 2 may be amended or waived (except insofar as any such amendment or waiver would affect any rights or obligations with respect to the purchase and sale of Notes which shall have become Accepted Notes prior to
such amendment or waiver), and (iv) with the written consent of all of the Purchasers which shall have become obligated to purchase Accepted Notes of any Series (and not without the written consent of all such Purchasers), any of the provisions of
paragraphs 2 and 3 may be amended or waived insofar as such amendment or waiver would affect only rights or obligations with respect to the purchase and sale of the Accepted Notes of such Series or the terms and provisions of such Accepted Notes.
Each holder of any Note at the time or thereafter outstanding shall be bound by any consent authorized by this paragraph 11C, whether or not such Note shall have been marked to indicate such consent, but any Notes issued thereafter may bear a
notation referring to any such consent. No course of dealing between the Company and the holder of any Note nor any delay in exercising any rights hereunder or under any Note shall operate as a waiver of any rights of any holder of such Note. As
used herein and in the Notes, the term “this Agreement” and references thereto shall mean this Agreement as it may from time to time be amended or supplemented. Prior to its effectiveness, any amendment, waiver or consent shall be in
writing and executed by the Company and the Required Holders or the holders of all Notes, as applicable. 
  
 11D. Form and Registration; Transfer and Exchange; Transfer Restrictions; Lost Notes. 
  
 11D(1) Form and Registration. The Notes are issuable as
registered notes without coupons in denominations of at least $1,000,000, except as may be necessary to reflect any principal amount not evenly divisible by $1,000,000. The Company shall keep at its principal office a register in which the Company
shall provide for the registration of Notes and of transfers of Notes. Upon surrender for registration of transfer of any Note at the principal office of the Company, the Company shall, at its expense, execute and deliver one or more new Notes of
like tenor and of a like aggregate principal amount, registered in the name of such transferee or transferees. 
  

 64 

 11D(2) Transfer and Exchange of Notes. At the option of the holder of any Note, such Note
may be exchanged for other Notes of like tenor and of any authorized denominations, of a like aggregate principal amount, upon surrender of the Note to be exchanged at the principal office of the Company. Whenever any Notes are so surrendered for
exchange, the Company shall, at its expense, execute and deliver the Notes which the holder making the exchange is entitled to receive. Each installment of principal payable on each installment date upon each new Note issued upon any such transfer
or exchange shall be in the same proportion to the unpaid principal amount of such new Note as the installment of principal payable on such date on the Note surrendered for registration of transfer or exchange bore to the unpaid principal amount of
such Note. No reference need be made in any such new Note to any installment or installments of principal previously due and paid upon the Note surrendered for registration of transfer or exchange. Every Note surrendered for registration of transfer
or exchange shall be duly endorsed, or be accompanied by a written instrument of transfer duly executed, by the holder of such Note or such holder’s attorney duly authorized in writing. Any Note or Notes issued in exchange for any Note or upon
transfer thereof shall carry the rights to unpaid interest and interest to accrue which were carried by the Note so exchanged or transferred, so that neither gain nor loss of interest shall result from any such transfer or exchange. 
  
 11D(3) Lost Notes. Upon receipt of written notice from the
holder of any Note of the loss, theft, destruction or mutilation of such Note and, in the case of any such loss, theft or destruction, upon receipt of such holder’s unsecured indemnity agreement, in form and substance reasonably satisfactory to
the Company, or in the case of any such mutilation upon surrender and cancellation of such Note, the Company will make and deliver a new Note, of like tenor, in lieu of the lost, stolen, destroyed or mutilated Note. 
  
 11E. Persons Deemed Owners; Participations. Prior to due
presentment for registration of transfer, the Company may treat the Person in whose name any Note is registered as the owner and holder of such Note for the purpose of receiving payment of principal of and interest on, and any Yield-Maintenance
Amount, any Prepayment Compensation Amount or any Breakage Costs Obligations payable with respect to, such Note and for all other purposes whatsoever, whether or not such Note shall be overdue, and the Company shall not be affected by notice to the
contrary. Subject to the preceding sentence, the holder of any Note may from time to time grant participations in all or any part of such Note to any Person on such terms and conditions as may be determined by such holder in its sole and absolute
discretion. 
  
 11F. Survival of Representations and
Warranties; Entire Agreement. All representations and warranties contained herein or made in writing by or on behalf of the Company in connection herewith shall survive the execution and delivery of this Agreement and the Notes, the transfer
by any Purchaser of any Note or portion thereof or interest therein and the payment of any Note, and may be relied upon by any Transferee, regardless of any investigation made at any time by or on behalf of any Purchaser or any Transferee. Subject
to the preceding sentence, this Agreement and the Notes embody the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and supersede all prior agreements and understandings relating to such subject
matter. 
  
 11G. Successors and Assigns. All
covenants and other agreements in this Agreement contained by or on behalf of any of the parties hereto shall bind and inure to the benefit of the respective successors and assigns of the parties hereto (including, without limitation, any
Transferee) whether so expressed or not. 
  

 65 

 11H. Independence of Covenants. All covenants hereunder shall be given independent effect
so that if a particular action or condition is prohibited by any one of such covenants, the fact that it would be permitted by an exception to, or otherwise be in compliance within the limitations of, another covenant shall not avoid the occurrence
of a Default or Event of Default if such action is taken or such condition exists. 
  
 11I. Notices. All written communications provided for hereunder (other than communications provided for under paragraph 2) shall be sent by first class mail or nationwide overnight delivery service (with
charges prepaid) and (i) if to any Purchaser, addressed as specified for such communications in the Purchaser Schedule attached to the applicable Confirmation of Acceptance (in the case of any Shelf Notes) or at such other address as any such
Purchaser shall have specified to the Company in writing, (ii) if to any other holder of any Note, addressed to it at such address as it shall have specified in writing to the Company or, if any such holder shall not have so specified an address,
then addressed to such holder in care of the last holder of such Note which shall have so specified an address to the Company and (iii) if to the Company, addressed to it at 2665 South Bayshore Drive, Suite 901, Coconut Grove, Florida 33133,
Attention: Ana Menendez, telephone 305­714-4115, telecopy 305­858­6898, provided, however, that any such communication to the Company may also, at the option of the Person sending such communication, be delivered by any other
means either to the Company at its address specified above or to any Authorized Officer of the Company. Any communication pursuant to paragraph 2 shall be made by the method specified for such communication in paragraph 2, and shall be effective to
create any rights or obligations under this Agreement only if, in the case of a telephone communication, an Authorized Officer of the party conveying the information and of the party receiving the information are parties to the telephone call, and
in the case of a telecopier communication, the communication is signed by an Authorized Officer of the party conveying the information, addressed to the attention of an Authorized Officer of the party receiving the information, and in fact received
at the telecopier terminal the number of which is listed for the party receiving the communication in the Information Schedule or at such other telecopier terminal as the party receiving the information shall have specified in writing to the party
sending such information. 
  
 11J. Payments Due on
Non-Business Days. Anything in this Agreement or the Notes to the contrary notwithstanding, any payment of principal of or interest on, or Yield-Maintenance Amount, Prepayment Compensation Amount or Breakage Cost Obligations payable with
respect to, any Note that is due on a date other than a Business Day shall be made on the next succeeding Business Day. If the date for any payment is extended to the next succeeding Business Day by reason of the preceding sentence, the period of
such extension shall be included in the computation of the interest payable on such Business Day. 
  
 11K. Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction. 
  

 66 

 11L. Descriptive Headings. The descriptive headings of the several paragraphs of this
Agreement are inserted for convenience only and do not constitute a part of this Agreement. 
  
 11M. Satisfaction Requirement. If any agreement, certificate or other writing, or any action taken or to be taken, is by the terms of this Agreement required to be satisfactory to any Purchaser, to any
holder of Notes or to the Required Holder(s), the determination of such satisfaction shall be made by such Purchaser, such holder or the Required Holder(s), as the case may be, in the sole and exclusive judgment (exercised in good faith) of the
Person or Persons making such determination. 
  
 11N.
Governing Law; Submission to Jurisdiction. This Agreement shall be construed and enforced in accordance with, and the rights of the Parties shall be governed by, the Internal Law of the State of New York. THE COMPANY HEREBY SUBMITS
TO THE JURISDICTION OF THE SUPREME COURT OF THE STATE OF NEW YORK LOCATED IN NEW YORK COUNTY, NEW YORK AND THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND IRREVOCABLY AGREES THAT, SUBJECT TO THE SOLE AND ABSOLUTE ELECTION
OF THE REQUIRED HOLDER(S) AND TO THE EXTENT PERMITTED BY APPLICABLE LAW, ALL ACTIONS OR PROCEEDINGS RELATING TO THIS AGREEMENT OR THE NOTES SHALL BE LITIGATED IN SUCH COURTS, AND THE COMPANY WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED ON IMPROPER
VENUE OR FORUM NON CONVENIENS TO THE CONDUCT OF ANY PROCEEDING IN ANY SUCH COURTS. 
  
 11O. Severalty of Obligations. The sales of Notes to the Purchasers are to be several sales, and the obligations of Prudential and the Purchasers under this Agreement are several obligations. No failure
by Prudential or any Purchaser to perform its obligations under this Agreement shall relieve Prudential, any other Purchaser or the Company of any of its obligations hereunder, and neither Prudential nor any Purchaser shall be responsible for the
obligations of, or any action taken or omitted by, any other such Person hereunder. 
  
 11P. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument. 
  
 11Q. Rank. The parties hereto, for their own benefit and not
for the benefit or for the purpose of creating any duty, obligation or liability to any other Person, expressly designate that the right to payment of the Notes shall be pari passu to the Bank Agreement in right of payment and performance.

  
 11R. Patriot Act Notice. Each Purchaser subject
to the Act hereby notifies the Company that pursuant to the requirements of the Act, it is required to obtain, verify and record information that identifies the Company, which information includes the name and address of the Company and other
information that will allow such Purchaser to identify the Company in accordance with the Act. 
  
 11S. Binding Agreement. When this Agreement is executed and delivered by the Company and Prudential, it shall become a binding agreement between the Company and 

  

 67 

 
Prudential. This Agreement shall also inure to the benefit of each Purchaser which shall have executed and delivered a Confirmation of Acceptance, and each
such Purchaser shall be bound by this Agreement to the extent provided in such Confirmation of Acceptance. 
  

			
	Very truly yours,
	
	WATSCO, INC.
		
	By:	 	  

	Name:	 	 
	Title:	 	 

  

 68 

			
	The foregoing Agreement is hereby accepted as of the date first above written.

			
	
	 THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

		
	By:	 	  

	Name:	 	Billy Greer
	Title:	 	Vice President
	
	 PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

		
	By:	 	  

	Name:	 	Billy Greer
	Title:	 	Assistant Vice President
	
	HARTFORD LIFE INSURANCE COMPANY
		
	By:	 	 Prudential Private Placement Investors, L.P., as Investment Advisor

		
	By:	 	 Prudential Private Placement Investors, Inc., General Partner

		
	By:	 	  

	Name:	 	Billy Greer
	Title:	 	Vice President
	
	MEDICA HEALTH PLAN
		
	By:	 	 Prudential Private Placement Investors, L.P., as Investment Advisor

		
	By:	 	 Prudential Private Placement Investors, Inc., General Partner

		
	By:	 	  

	Name:	 	Billy Greer
	Title:	 	Vice President

  

 69 

 EXHIBIT A-1 
  
 [FORM OF ALLONGE] 
  
 SECOND ALLONGE 
 to SENIOR NOTE 
  
 Attached and affixed to, and made a part of, that certain Senior Note dated
February 7, 2001 executed by Watsco, Inc. (the “Company”), in favor of
                                        
        , as amended by that certain Allonge to Senior Note dated October 30, 2002 (the “Note”). 
  
 The Company confirms, renews and restates its obligations pursuant to the terms of the Note; provided that (i) the
third paragraph of such Note is amended by inserting after the words “dated as of October 30, 2002” the words “and a Second Amended and Restated Private Shelf Agreement, dated as of December 10, 2004”. 
  
 Except as expressly provided above, the Note is not modified or amended in
any respect and remains in full, force and effect. 
  
 IN WITNESS
WHEREOF, intending to be legally bound, the Company has caused this Second Allonge to be executed and delivered on this      day of December, 2004. 
  

			
	WATSCO, INC.
		
	By:	 	  

	Title:	 	 

  

			
	Acknowledged and agreed:
	
	[INSERT NOTEHOLDER]
		
	By:	 	  

	Title:	 	 

 EXHIBIT A-2 
  
 [FORM OF FIXED RATE SHELF NOTE] 
  
 THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE OFFERED OR SOLD IN VIOLATION OF SUCH ACT. 
  
 WATSCO, INC. 
  
 SENIOR SERIES
             NOTE 
  
 No.  
 ORIGINAL PRINCIPAL AMOUNT: 
 ORIGINAL
ISSUE DATE: 
 INTEREST RATE: 
 INTEREST PAYMENT DATES:

 FINAL MATURITY DATE: 
 PRINCIPAL PREPAYMENT DATES AND AMOUNTS:

  
 FOR VALUE RECEIVED, the undersigned, WATSCO, INC.
(herein called the “Company”), a corporation organized and existing under the laws of the State of Florida, hereby promises to pay to
                    , or registered assigns, the principal sum of
                     DOLLARS [on the Final Maturity Date specified above] [, payable on the Principal Prepayment Dates and in the amounts
specified above, and on the Final Maturity Date specified above in an amount equal to the unpaid balance of the principal hereof,] with interest (computed on the basis of a 360-day year—30-day month) (a) on the unpaid balance thereof at the
Interest Rate per annum specified above, payable on each Interest Payment Date specified above and on the Final Maturity Date specified above, commencing with the Interest Payment Date next succeeding the date hereof, until the principal hereof
shall have become due and payable, and (b) on any overdue payment (including any overdue prepayment) of principal, any overdue payment of Yield-Maintenance Amount and any overdue payment of interest, payable on each Interest Payment Date as
aforesaid (or, at the option of the registered holder hereof, on demand), at a rate per annum from time to time equal to the greater of (i) 2% over the Interest Rate specified above or (ii) 2% over the rate of interest publicly announced by Bank of
New York from time to time in New York City as its Prime Rate. 
  
 Payments of principal, Yield-Maintenance Amount, if any, and interest are to be made at the main office of Bank of New York in New York City or at such other place as the holder hereof shall designate to the Company in writing, in lawful
money of the United States of America. 

 This Note is one of a series of Senior Notes (herein called the “Notes”)
issued pursuant to a Second Amended and Restated Private Shelf Agreement, dated as of December 10, 2004 (as amended, modified or supplemented from time to time, the “Agreement”), between the Company and The Prudential
Insurance Company of America and each Prudential Affiliate (as defined in the Agreement) which becomes party thereto and is entitled to the benefits thereof. 
  
 This Note is subject to optional prepayment, in whole or from time to time in part, on the terms specified in the Agreement. 
  
 This Note is a registered Note and, as provided in the Agreement, upon
surrender of this Note for registration of transfer, duly endorsed, or accompanied by a written instrument of transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized in writing, a new Note for the then
outstanding principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the
purpose of receiving payment and for all other purposes, and the Company shall not be affected by any notice to the contrary. 
  
 In case an Event of Default shall occur and be continuing, the principal of this Note may be declared or otherwise become due and payable in the manner
and with the effect provided in the Agreement. 
  
 The Company and
any and all endorsers, guarantors and sureties severally waive demand, presentment for payment, notice of dishonor or default, notice of intent to accelerate, notice of acceleration (to the extent set forth in the Agreement), protest and diligence
in collecting. 
  
 Should any debt represented by this Note be
collected at law or in equity, or in bankruptcy or other proceedings, or should this Note be placed in the hands of attorneys for collection, the Company agrees to pay, in addition to the principal, Yield-Maintenance Amount, if any, and interest due
and payable hereon, all costs of collecting or attempting to collect this Note, including attorneys’ fees and expenses (including those incurred in connection with any appeal). 
  
 Capitalized terms used and not otherwise defined herein shall have the meanings (if any) provided in the Agreement.

  

 A-2-2 

 THIS NOTE IS INTENDED TO BE PERFORMED IN THE STATE OF NEW YORK AND SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE INTERNAL LAW OF SUCH STATE. As provided in paragraph 11N of the Agreement, the Company submits to the jurisdiction of the Supreme Court of the State of New York located in New York County, New York and the United States District
Court for the Southern District of New York in any action or proceeding relating to this Note. 
  

			
	WATSCO, INC.
		
	By:	 	  

	Title:	 	 

  

 A-2-3 

 EXHIBIT A-3 
  
 [FORM OF FLOATING RATE SHELF NOTE] 
  
 THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OF THE UNITED STATES OF AMERICA AND MAY NOT BE TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR AN EXEMPTION THEREFROM UNDER SUCH ACT, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH EXEMPTION IS REQUIRED BY LAW. 
  
 WATSCO, INC. 
  
 SENIOR SERIES      NOTE 
  
 No.                      
 ORIGINAL PRINCIPAL AMOUNT: 
 ORIGINAL ISSUE DATE: 
 LIBOR RATE MARGIN: 
 BASE RATE MARGIN: 
 FINAL MATURITY DATE: 
 PRINCIPAL PREPAYMENT DATES AND AMOUNTS: 
 PPN: 
  
 FOR VALUE RECEIVED, the undersigned, WATSCO, INC., a corporation organized under the laws of Florida (herein called the “Company”), hereby promises to pay to
                    , or registered assigns, the principal sum of
                     DOLLARS [on the Final Maturity Date specified above][, payable on the Principal Prepayment Dates and in the amounts
specified above, and on the Final Maturity Date specified above in an amount equal to the unpaid balance of the principal hereof,] with interest (a) on the unpaid balance thereof at the interest rate per annum computed on the basis contained in
paragraph 2 of the Agreement (hereinafter defined) on the unpaid balance thereof; during each Interest Period, at a rate per annum equal to the LIBOR Rate in respect of such Interest Period plus the LIBOR Rate Margin (or the Base Rate plus the Base
Rate Margin, if applicable), payable in the manner specified by, and in accordance with the terms of, the Agreement (hereinafter defined) and (b) on any overdue payment (including any overdue prepayment) of principal, any overdue payment of
Prepayment Compensation Amount, any overdue payment of Breakage Cost Obligations, and any overdue payment of interest at a rate per annum from time to time equal to the Default Rate, payable at the time specified in the Agreement (hereinafter
defined). 
  
 Payments of principal, Prepayment Compensation
Amount, if any, Breakage Cost Obligations, if any, and interest are to be made at the main office of The Bank of New York in New York City or at such other place as the holder hereof shall designate to the Company in writing, in lawful money of the
United States of America. 

 This Note is one of a series of Senior Notes (herein called the “Note”) issued
pursuant to a Second Amended and Restated Private Shelf Agreement, dated as of December 10, 2004 (as it may be amended, modified or supplemented from time to time, the “Agreement”), among the Company, on the one hand, and The
Prudential Insurance Company of America and each Prudential Affiliate which becomes a party thereto, on the other hand, and is entitled to the benefits thereof. All capitalized terms not defined herein shall have the meanings ascribed to them in the
Agreement. 
  
 This Note is subject to optional prepayment, in
whole or from time to time in part, on the terms specified in the Agreement. 
  
 This Note is a registered Note and, as provided in the Agreement, upon surrender of this Note for registration of transfer, duly endorsed, or accompanied by a written instrument of transfer duly executed, by the
registered holder hereof or such holder’s attorney duly authorized in writing, a new Note for the then outstanding principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of
transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company shall not be affected by any notice to the contrary. 
  
 In case an Event of Default, as defined in the Agreement, shall occur and be
continuing, the principal of this Note may be declared or otherwise become due and payable in the manner and with the effect provided in the Agreement. 
  
 The Company and any and all endorsers, guarantors and sureties severally waive demand, presentment for payment, notice of dishonor or default, notice of
intent to accelerate, notice of acceleration (to the extent set forth in the Agreement), protest and diligence in collecting. 
  
 Should any debt represented by this Note be collected at law or in equity, or in bankruptcy or other proceedings, or should this Note be placed in the
hands of attorneys for collection, the Company agrees to pay, in addition to the principal, Prepayment Compensation Amount, if any, Breakage Cost Obligations, if any, and interest due and payable hereon, all costs of collecting or attempting to
collect this Note, including attorneys’ fees and expenses (including those incurred in connection with any appeal). 
  
 Capitalized terms used and not otherwise defined herein shall have the meanings (if any) provided in the Agreement. 
  
 THIS NOTE IS INTENDED TO BE PERFORMED IN THE STATE OF NEW YORK AND SHALL
BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAW OF SUCH STATE. As provided in paragraph 11N of the Agreement, the Company submits to the jurisdiction of the Supreme Court of the State of New York located in New York County, New York and the
United States District Court for the Southern District of New York in any action or proceeding relating to this Note. 
  

 A-3-2 

			
	WATSCO, INC.
		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 A-3-3 

 EXHIBIT B 
  
 [FORM OF REQUEST FOR PURCHASE] 
  
 WATSCO, INC. 
  
 Reference is made to the Second Amended and Restated Private Shelf Agreement, dated as of December 10, 2004 (as it may be amended, modified or
supplemented from time to time, the “Agreement”) among Watsco, Inc. (the “Company”), on the one hand, and The Prudential Insurance Company of America and each Prudential Affiliate which becomes a party
thereto, on the other hand. Capitalized terms used and not otherwise defined herein shall have the respective meanings specified in the Agreement. 
  
 Pursuant to paragraph 2D of the Agreement, the Company hereby makes the following Request for Purchase: 
  

	 	1.	Aggregate principal amount of 

	 	    	the Notes covered hereby 

	 	    	(the “Notes”)                      $1 

  

	 	2.	Individual specifications of the Notes: 

  

									
	 Principal
 Amount
	  	 Final
 Maturity
 Date2
	  	 Principal
 Prepayment
 Dates and
 Amounts3
	  	 Interest
 Rate
 Option4
	  	 Interest
 Payment
 Period5

  
  

	 	3.	Use of proceeds of the Notes: 

  

	 	4.	Proposed day for the closing of the purchase and sale of the Notes: 

	1	Minimum principal amount of $10,000,000. 

	2	Fixed Rate Shelf Note final maturity not to exceed 12 years; Floating Rate Shelf Note final maturity not to exceed 5 years. 

	3	Fixed Rate Shelf Note average life not to exceed 10 years; Floating Rate Shelf Note average life not to exceed 5 years. 

	4	Specify fixed or floating. 

	5	For Fixed Rate Shelf Notes, specify quarterly or semi-annually. For Floating Rate Shelf Notes, specify the initial Interest Period. 

	 	5.	The purchase price of the Notes is to be transferred to: 

  

			
	 Name, Address
 and ABA Routing
 Number of Bank

	 	 Number of
 Account

  
  

	 	6.	[Except as otherwise set forth in Exhibit A attached hereto, the] Company certifies that: 

  
 (a) the representations and warranties contained in paragraph 8 of the Agreement are true on and as of the date of this
Request for Purchase except to the extent of changes caused by the transactions contemplated in the Agreement; and 
  
 (b) there exists on the date of this Request for Purchase no Event of Default or Default and, after giving effect to the issuance of Notes on the proposed
Closing Date, no Event of Default or Default shall have occurred and be continuing. 
  

	 	7.	The Issuance Fee to be paid pursuant to the Agreement will be paid by the Company on the closing date. 

  
 Dated: 
  

			
	WATSCO, INC.
		
	By:	 	  

	Name:	 	 
	Title:	 	 

  

 B-2 

 EXHIBIT C 
  
 [FORM OF CONFIRMATION OF ACCEPTANCE] 
  
 WATSCO, INC. 
  
 Reference is made to the Second Amended and Restated Private Shelf Agreement, dated as of December 10, 2004 (as it may be amended, modified or
supplemented from time to time, the “Agreement”) among Watsco, Inc. (the “Company”), on the one hand, and The Prudential Insurance Company of America (“Prudential”) and each
Prudential Affiliate which becomes a party thereto, on the other hand. All terms used herein that are defined in the Agreement have the respective meanings specified in the Agreement. 
  
 Prudential or the Prudential Affiliate which is named below as a Purchaser of Notes hereby makes the representations as to
such Notes set forth in paragraph 9 of the Agreement, and agrees to be bound by the provisions of the Agreement, including without limitation, those contained in paragraphs 2G and 2I of the Agreement relating to the purchase and sale of such Notes
and by the provisions of the penultimate sentence of paragraph 11A, paragraph 11N and paragraph 11Q of the Agreement. 
  
 Pursuant to paragraph 2G of the Agreement, an Acceptance with respect to the following Accepted Notes is hereby confirmed: 
  

	I.	Accepted Notes: Aggregate principal amount $                    

  

					
	(A)	  	(a)	  	Name of Purchaser:
	 	  	(b)	  	Principal amount:
	 	  	(c)	  	Final maturity date:
	 	  	(d)	  	Principal prepayment dates and amounts:
	 	  	(e)	  	Interest rate option1:
	 	  	(f)	  	Interest rate/spread2:
	 	  	(g)	  	Interest payment period3:
	 	  	(h)	  	 Payment and notice instructions: As set forth on attached Purchaser Schedule
  

	 	  	(B)	  	(a)    Name of Purchaser:
	 	  	 	  	(b)    Principal amount:
	 	  	 	  	(c)    Final maturity date:
	 	  	 	  	(d)    Principal prepayment dates and amounts:
	 	  	 	  	 

	1	Specify fixed or floating. 

	2	For Fixed Rate Shelf Notes, specify interest rate. For Floating Rate Shelf Notes, specify LIBOR Rate Margin and Base Rate Margin. 

	3	For Fixed Rate Shelf Notes, specify quarterly or semi-annually. For Floating Rate Shelf Notes, specify the initial Interest Period and whether the initial loan will
be a LIBOR Loan or a Base Rate Loan. 

					
	 	  	 	  	(e)    Interest rate option:
	 	  	 	  	(f)    Interest rate/spread:
	 	  	 	  	(g)    Interest payment period:
	 	  	 	  	(h)    Payment and notice instructions: As set forth on attached Purchaser Schedule

  
 [(C), (D)..... same
information as above.] 
  

	II.	Closing Day: 

  

					
	Dated:	 	WATSCO, INC.
			
	 	 	By:	 	  

	 	 	Title:	 	 
		
	 	 	 [THE PRUDENTIAL INSURANCE
COMPANY OF AMERICA]

			
	 	 	By:	 	  

	 	 	 	 	Vice President
		
	 	 	[PRUDENTIAL AFFILIATE]
			
	 	 	By:	 	  

	 	 	 	 	Vice President

  

 C-2 

 EXHIBIT D-1 
  
 [FORM OF OPINION OF COMPANY’S COUNSEL] 
  
 [Letterhead of Moore Van Allen] 
  
 [Date of Closing] 
  
 The Prudential Insurance Company of America 
 c/o Prudential Capital Group 
 1170 Peachtree Street, Suite 500 
 Atlanta, Georgia 30309 
  
 Ladies and Gentlemen: 
  
 We have acted as special counsel for Watsco, Inc. (the “Company”) in connection with the Second
Amended and Restated Private Shelf Agreement, dated as of December     , 2004 (the “Agreement”) between the Company and The Prudential Insurance Company of America and each Prudential Affiliate
which becomes a party thereto and each of the Subsidiaries (each a “Guarantor”) in connection with its Second Amended and Restated Guaranty Agreement dated as of December     , 2004 (each a
“Guaranty Agreement”). Capitalized terms used and not otherwise defined herein shall have the meanings provided in the Agreement. This letter is being delivered to you in satisfaction of the condition set forth in paragraph
3A(1)(vii) of the Agreement and with the understanding you are purchasing the Notes in reliance on the opinions expressed herein. 
  
 In this connection, we have examined such certificates of public officials, certificates of officers of the Company and the Guarantors and copies
certified to our satisfaction of corporate documents and records of the Company and the Guarantors and of other papers, and have made such other investigations, as we have deemed relevant and necessary as a basis for our opinion hereinafter set
forth. We have relied upon such certificates of public officials and of officers of the Company with respect to the accuracy of material factual matters contained therein which were not independently established. With respect to the opinion
expressed in paragraph 3 below, we have also relied upon the representation made by you in paragraph 9A of the Agreement. 
  
 Based on the foregoing, it is our opinion that: 
  
 1. The Company and its Subsidiaries have the corporate power to carry on their respective businesses as now being conducted. Each Subsidiary specified on
the attached Schedule is a corporation or limited liability company validly existing in good standing under the laws of its jurisdiction of formation. 

 2. The Agreement and the Allonge have been duly authorized by all requisite corporate action and duly
executed and delivered by authorized officers of the Company, and are valid obligations of the Company, legally binding upon and enforceable against the Company in accordance with their respective terms, except as such enforceability may be limited
by (a) bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights generally and (b) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity
or at law).  
  
 3. Each Guaranty Agreement has been duly
authorized by all requisite corporate or limited liability company action and duly executed and delivered by authorized officers of the Guarantor a party thereto, and are valid obligations of such Guarantor, legally binding upon and enforceable
against such Guarantor in accordance with its terms, except as such enforceability may be limited by (a) bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights generally and (b) general
principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 
  
 4. The execution and delivery of the Agreement, the Allonge and each Guaranty Agreement and fulfillment of and compliance with the provisions of the
Agreement, the Allonge or such Guaranty Agreement, as the case may be, do not conflict with, or result in a breach of the terms, conditions or provisions of, or constitute a default under, or result in any violation of, or result in the creation of
any Lien upon any of the properties or assets of the Company or any Guarantor a party thereto pursuant to, or require any authorization, consent, approval, exemption, or other action by or notice to or filing with any court, administrative or
governmental body or other Person (other than routine filings after the date hereof with the Securities and Exchange Commission and/or state Blue Sky authorities) pursuant to, the charter or by-laws or other applicable organizational documents of
the Company or any Guarantor, any applicable law (including any securities or Blue Sky law), statute, rule or regulation or (insofar as is known to us after having made due inquiry with respect thereto) any agreement (including, without limitation,
any agreement listed in Schedule 8G to the Agreement), instrument, order, judgment or decree to which such the Company or any Guarantor is a party or otherwise subject. 
  
 Each of King & Spalding and any Transferee may rely on this opinion. 
  
 Very truly yours, 
  

 D-1-2 

 EXHIBIT D-2 
  
 [Reserved] 

 EXHIBIT D-3 
  
 [FORM OF OPINION OF COMPANY’S COUNSEL] 
  
 [Letterhead of Moore Van Allen] 
  
 [Date of Closing] 
  
 [Name(s) and address(es) of 
 Purchaser(s)] 
  
 Ladies and Gentlemen: 
  
 We have acted as special counsel for Watsco, Inc. (the “Company”) in connection with the Second
Amended and Restated Private Shelf Agreement, dated as of December         , 2004 (the “Agreement”) between the Company, on the one hand, and The Prudential Insurance
Company of America and each Prudential Affiliate which becomes a party thereto, on the other hand, pursuant to which the Company has issued to you today Senior Series          Notes of the Company in
the aggregate principal amount of $                 (the “Notes”). Capitalized terms used and not otherwise defined herein shall have the
meanings provided in the Agreement. This letter is being delivered to you in satisfaction of the condition set forth in paragraph 3A(2)(v) of the Agreement and with the understanding that you are purchasing the Notes in reliance on the opinions
expressed herein. 
  
 In this connection, we have examined such
certificates of public officials, certificates of officers of the Company and copies certified to our satisfaction of corporate documents and records of the Company and of other papers, and have made such other investigations, as we have deemed
relevant and necessary as a basis for our opinion hereinafter set forth. We have relied upon such certificates of public officials and of officers of the Company with respect to the accuracy of material factual matters contained therein which were
not independently established. With respect to the opinion expressed in paragraph 3 below, we have also relied upon the representation made by [each of] you in paragraph 9A of the Agreement. 
  
 Based on the foregoing, it is our opinion that: 
  
 1. Each Subsidiary specified on the attached Schedule is a corporation or
limited liability company validly existing in good standing under the laws of its jurisdiction of formation. The Company and its Subsidiaries have the corporate or limited liability company power to carry on their respective businesses as now being
conducted. 
  
 2. The Notes have been duly authorized by all
requisite corporate or limited liability company action and duly executed and delivered by authorized officers of the Company, and are 

 
valid obligations of the Company, legally binding upon and enforceable against the Company in accordance with their respective terms, except as such
enforceability may be limited by (a) bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights generally and (b) general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law). [Enforceability opinion will assume that NY and NC law are the same.] 
  
 3. It is not necessary in connection with the offering, issuance, sale and delivery of the Notes under the circumstances contemplated by the Agreement to
register the Notes under the Securities Act or to qualify an indenture in respect of the Notes under the Trust Indenture Act of 1939, as amended. 
  
 4. The extension, arranging and obtaining of the credit represented by the Notes do not result in any violation of regulation T, U or X of the Board of
Governors of the Federal Reserve System. 
  
 5. The execution and
delivery of the Notes, the offering, issuance and sale of the Notes and fulfillment of and compliance with the respective provisions of the Agreement and the Notes do not conflict with, or result in a breach of the terms, conditions or provisions
of, or constitute a default under, or result in any violation of, or result in the creation of any Lien upon any of the properties or assets of the Company or any of its Subsidiaries pursuant to, or require any authorization, consent, approval,
exemption, or other action by or notice to or filing with any court, administrative or governmental body or other Person (other than routine filings after the date hereof with the Securities and Exchange Commission and/or state Blue Sky authorities)
pursuant to, the charter or by-laws or other applicable organizational documents of the Company or any of its Subsidiaries, any applicable law (including any securities or Blue Sky law), statute, rule or regulation or (insofar as is known to us
after having made due inquiry with respect thereto) any agreement (including, without limitation, any agreement listed in Schedule 8G to the Agreement), instrument, order, judgment or decree to which the Company or any of its Subsidiaries is a party
or otherwise subject. 
  
 Each of King & Spalding and any
Transferee may rely on this opinion. 
  
 Very truly yours,

  

 D-3-2 

 EXHIBIT D-4 
  
 [Reserved] 
  
 [SUBJECT TO REVIEW AND APPROVAL OF MVA OPINION] 

 EXHIBIT E 
  
 [NAME OF SUBSIDIARY] 
  
 THIS SECOND AMENDED and RESTATED GUARANTY AGREEMENT dated as of December     , 2004 by [Name of Subsidiary] (the
“Guarantor”) in favor of The Prudential Insurance Company of America and each Prudential Affiliate, together with any of their affiliates or successors or assigns (collectively, the “Note Purchasers”
and individually, a “Note Purchaser”). 
  
 WHEREAS, pursuant to that certain Private Shelf Agreement, dated as of January 31, 2000 (as amended and in effect on the date hereof, the “2000 Agreement”), among Watsco, Inc.
(“Parent”) and the Note Purchasers, the Note Purchasers have purchased senior unsecured promissory notes in the aggregate principal amount of $30,000,000 (collectively, the “Series A Notes”).

  
 WHEREAS, in connection with the 2000 Agreement, the
Guarantor and certain other subsidiaries of Parent, as guarantors, executed and delivered, among other things, that certain Guaranty Agreement dated as of January 30, 2000 (the “2000 Guaranty”). 
  
 WHEREAS, pursuant to that certain Amended and Restated Private Shelf
Agreement dated as of October 30, 2002 (the “2002 Agreement”) among Parent and the Note Purchasers, Parent authorized the issuance of its shelf notes in the aggregate principal amount of up to $125,000,000 and the Guarantor
amended and restated the 2000 Guaranty pursuant to an Amended and Restated Guaranty Agreement dated as of October 30, 2002 (as amended, modified or otherwise supplemented prior to the date hereof, the “2002 Guaranty”).

  
 WHEREAS, Parent and the Note Purchasers are amending
and restating the 2002 Agreement pursuant to that certain Second Amended and Restated Private Shelf Agreement dated as of December 10, 2004 (as amended, modified or otherwise supplemented from time to time, the “Note
Agreement”) among Parent and the Note Purchasers, pursuant to which, among other things, Parent is authorizing the issuance of its shelf notes in the aggregate principal amount of up to $125,000,000 (such notes, together with the Series
A Notes, collectively referred to herein as the “Notes”). 
  
 WHEREAS, it is a condition to the execution of the Note Agreement that the Guarantor amend and restate the 2002 Guaranty as provided herein, whereby the Guarantor shall continue to guarantee, among other
things, the payment when due of all principal, interest and other amounts that shall be at any time payable by Parent under the Note Agreement, the Notes and the Related Documents (defined herein). 
  
 WHEREAS, the Guarantor and Parent are collectively engaged in, among
other things, the business of distributing HVAC and related equipment. 

 WHEREAS, the Guarantor has benefited from the financing provided by the Note Purchasers to Parent
pursuant to the 2002 Agreement and will continue to benefit from the financing provided pursuant to the Note Agreement as the continued success of the business operations of Guarantor is directly dependent upon the ability of Parent to obtain
adequate financing for its business operations and the expansion of such business operations. 
  
 WHEREAS, the Guarantor intends that (a) the provisions of the 2002 Guaranty be hereby superseded and replaced by the provisions hereof; and (b) by entering into and performing its obligations hereunder, the
Guarantor shall continue to guarantee, without interruption or impairment of any kind, the Obligations (as defined herein). 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Guarantor, the Guarantor
hereby agrees that the 2002 Guaranty is amended and restated in its entirety as follows: 
  
 Section 1. Guaranty; Security. 
  
 (a) The Guarantor hereby absolutely and unconditionally guarantees the due and punctual payment and performance of: (i) the principal of, and accrued interest on, the Notes when due (whether at stated maturity, by
acceleration or otherwise), (ii) all other monetary and nonmonetary obligations of the Parent owed to the Note Purchasers under the Note Agreement, any Note and any other agreement, document, guarantee or instrument executed in connection therewith
(“Related Documents”) including all fees, charges (including, without limitation, any Yield-Maintenance Amount, Prepayment Compensation Amount and Breakage Cost Obligations) and other amounts payable by the Parent to the Note
Purchasers thereunder, (iii) the due and punctual performance of covenants, agreements, obligations and liabilities of the Company and Subsidiaries under or pursuant to the Note Agreement and the other Related Documents, and (iv) any and all
extensions, renewals, modifications or substitutions of the foregoing (the items set forth in clauses (i) through (iv) hereunder are collectively referred to herein as the “Obligations”); provided, however, that the
liability of the Guarantor hereunder shall not exceed at any time the Maximum Amount (as hereinafter defined) for the Guarantor. The “Maximum Amount” shall mean the greater of (i) 95% of (a) the fair salable value of the
assets of the Guarantor as of the date hereof minus (b) the total liabilities of the Guarantor (including contingent liabilities but excluding liabilities of the Guarantor under this Guaranty Agreement) on the date hereof; and (ii) 95% of (x) the
fair salable value of the assets of the Guarantor from time to time minus (y) the total liabilities of the Guarantor (including contingent liabilities but excluding liabilities of the Guarantor under this Guaranty Agreement) at such time to the
extent permitted by applicable law. 
  
 (b) Each of the Guarantors
authorizes each of the Note Purchasers to (a) take and hold such security, if any, for payment of this Guaranty Agreement and the Obligations as may be required by the Agreement, and exchange, enforce, waive and release any such security, (b) apply
such security and direct the order or manner of sale thereof as they in their sole discretion may determine and (c) release or substitute any one or more endorsees, other guarantors or other obligors. 
  

 E-2 

 Section 2. Guaranty of Payment and Not of Collection. This Guaranty Agreement shall be a
guaranty of payment and not of collection. The Note Purchasers shall not be obliged before enforcing this Guaranty Agreement against the Guarantor: (a) to take any action in any court against the Parent or any other guarantor of the Obligations or
otherwise take any action to enforce the rights and remedies of the Note Purchasers under the Note Agreement or the Notes or any other Related Documents, (b) to make any claim in a liquidation or bankruptcy of the Parent or any other guarantor of
the Obligations or (c) to make demand of the Parent or any other guarantor of the Obligations or to enforce or seek to enforce any collateral or other security held by the Collateral Agent or any other Person securing or otherwise in respect of the
Obligations. The Guarantor agrees that it shall be liable hereunder notwithstanding (x) the dissolution or liquidation, or the merger, consolidation or other change until the Obligations have been indefeasibly paid in full in form of the Parent or
any other guarantor of the Obligations, (y) any defect, limitation or insufficiency in the borrowing powers of the Parent or in the exercise thereof or (z) the invalidity, illegality or unenforceability of the Note Agreement, the Notes or any other
Related Documents. 
  
 Section 3. No Discharge. The
Guarantor shall not be discharged from its obligations hereunder by any concession, waiver or arrangement granted to or made with the Parent or by anything done or omitted which but for this provision might operate to so discharge the Guarantor from
its obligations hereunder or by any invalidity, unenforceability, limitation, release or the lapse of any collateral security granted to the Note Purchasers or on behalf of the Note Purchasers by the Parent or any other Person to secure any of the
Obligations. The Note Purchasers may, at their election, foreclose on any security held by one or more of them by one or more judicial or nonjudicial sales, accept an assignment of any such security in lieu of foreclosure, compromise or
adjust any part of the Obligations, make any other accommodation with the Company or any other guarantor, without affecting or impairing in any way the liability of any Guarantor hereunder except to the extent the Obligations have been fully,
finally and indefeasibly paid in cash. Pursuant to applicable law, each Guarantor waives any defense arising out of any such election even though such election operates, pursuant to applicable law, to impair or to extinguish any right of
reimbursement or subrogation or other right or remedy of such Guarantor against the Company or any other Guarantor or guarantor, as the case may be, or any security. 
  
 Section 4. Action with respect to Obligations. Each Note Purchaser may, at any time and from time to time,
without the consent of the Guarantor under this Guaranty Agreement, and without discharging the Guarantor from its obligations hereunder: (a) purchase Shelf Notes under the Note Agreement; (b) change the manner, place or terms of payment, or change
or extend the time of payment of, or renew or alter the Obligations in any manner; (c) sell, exchange, release or otherwise deal with all or any part of any collateral security at any time granted, pledged or mortgaged by the Parent or any other
Person to secure the Obligations; (d) release anyone liable in any manner for the payment or collection of the Obligations; (e) amend or otherwise alter the terms of the Note Agreement, the Notes or any other Related Document; (f) exercise, or
refrain from exercising, any rights against the Parent or any other Person (including any other guarantor of the Obligations); and (g) apply any sum, by whomsoever paid or however realized, to the Obligations in such order as the Note Purchasers
shall elect. 
  

 E-3 

 Section 5. Waiver. The Guarantor hereby waives notice of acceptance hereof or any
presentment, demand, protest or notice of any kind under this Guaranty Agreement and any other act or thing or omission or delay to do any other act or thing which might in any manner or to any extent vary the risk of the Guarantor under this
Guaranty Agreement or which might otherwise operate as a discharge of the Guarantor under this Guaranty Agreement. 
  
 Section 6. Inability to Accelerate Note. If an Event of Default shall have occurred and be continuing and the Note Purchasers or the holder
of any of the Obligations is prevented from demanding or accelerating payment thereof by reason of any automatic stay or otherwise, the Note Purchasers or such holder shall be entitled to receive hereunder from the Guarantor, upon demand therefor,
the sums which would have otherwise been due had such acceleration occurred. 
  
 Section 7. Reinstatement of Obligations. The Guarantor further confirms that this Guaranty Agreement shall continue to be effective or be reinstated, as the case may be, if at any time payment of any of
the Obligations is rescinded or must otherwise be restored by the Note Purchasers upon the bankruptcy or reorganization of any or all of the Parent or the Guarantor or otherwise. 
  
 Section 8. Waiver of Subrogation. The Guarantor hereby waives, until the Obligations have been indefeasibly
paid in full, to the fullest extent any and all claims the Guarantor may have against Parent arising out of any payment by the Guarantor of any of the Obligations pursuant to this Guaranty Agreement, including, but not limited to, all such claims of
the Guarantor arising out of any right of subrogation, indemnity, reimbursement, contribution, exoneration, payment or other claim, cause of action, right or remedy, whether such claim arises at law, in equity, or out of any written or oral
agreement between the Guarantor and Parent or otherwise. The waivers set forth herein in this Section 8 may not be revoked by the Guarantor without the prior written consent of the Note Purchasers. In furtherance of the foregoing and not in
limitation of any other right that the Note Purchasers has at law or in equity against any Guarantor by virtue hereof, upon the failure of the Company or any Subsidiary to pay any Obligation when and as the same shall become due, whether at
maturity, by acceleration, after notice of prepayment or otherwise, each Guarantor hereby promises to and will forthwith pay, or cause to be paid, to the Note Purchasers in cash the amount of such unpaid Obligations. Upon payment by any Guarantor of
any sums to the Note Purchasers, all rights of such Guarantor against the Company arising as a result thereof by way of right of subrogation, contribution, reimbursement indemnity or otherwise shall in all respects be subordinate and junior in right
of payment to the prior indefeasible payment in full in cash of all of the Obligations. In addition, any indebtedness of the Company now or hereafter held by any Guarantor is hereby subordinated in right of payment to the prior payment in full in
cash of the Obligations. If any amount shall erroneously be paid to any Guarantor after the occurrence and during the continuance of a Default on account of (i) such subrogation, contribution, reimbursement, indemnity or similar right or (ii) any
such indebtedness of the Company, such amount shall be held in trust for the benefit of the Note Purchasers and shall forthwith be paid to be credited against the payment of the Obligations, whether matured or unmatured, in accordance with the terms
of the Related Documents. 
  

 E-4 

 Section 9. Payments Free and Clear. All sums payable by the Guarantor hereunder, whether of
principal, interest, fees, expenses, premiums or otherwise, shall be paid in full, without set-off or counterclaim or any deduction or withholding whatsoever, or, in the event that the Guarantor is required by law to make any such deduction or
withholding, the Guarantor shall pay to the Note Purchasers such additional amount as will result in the receipt by the Note Purchasers of the full amount payable hereunder. 
  
 Section 10. Solvency. As of the date hereof and after giving effect to the guaranty contemplated hereunder (a)
the amount of the “present fair salable value” of the assets of the Guarantor will, as of such date, exceed the amount of all “liabilities of the Guarantor, contingent or otherwise,” as of such date, as such quoted terms are
determined in accordance with applicable federal and state laws governing determinations of the solvency of debtors, (b) the present fair salable value of the assets of the Guarantor will, as of the date hereof, be greater than the amount that will
be required to pay the liability of the Guarantor, on its debts as such debts become absolute and matured, (c) the Guarantor will not have, as of the date hereof, an unreasonably small amount of capital with which to conduct its business, and (d)
the Guarantor will be able to pay its debts as they mature. For purposes of this Section “debt” means “liability or a claim”, and “claim” means any (x) right to payment, whether or not such a right is reduced to
judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured; or (y) right to an equitable remedy for breach of performance if such breach gives rise to a right to payment,
whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured or unmatured, disputed, undisputed, secured or unsecured. 
  
 Section 11. GOVERNING LAW/JURISDICTION. This Guaranty Agreement shall be construed and enforced in accordance with, and the rights of the
parties shall be governed by, the laws of the State of New York. THE GUARANTOR HEREBY SUBMITS TO THE JURISDICTION OF THE SUPREME COURT OF THE STATE OF NEW YORK LOCATED IN NEW YORK COUNTY, NEW YORK AND THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK, AND IRREVOCABLY AGREES THAT, SUBJECT TO THE SOLE AND ABSOLUTE ELECTION OF THE REQUIRED HOLDERS, ALL ACTIONS OR PROCEEDINGS RELATING TO THIS GUARANTY AGREEMENT OR THE NOTES OR ANY OTHER RELATED DOCUMENT SHALL BE
LITIGATED IN SUCH COURTS, AND THE GUARANTOR WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED ON IMPROPER VENUE OR FORUM NON CONVENIENS TO THE CONDUCT OF ANY PROCEEDING IN ANY SUCH COURT. 
  
 Section 12. Note Accounts. The Note Purchasers shall maintain books and accounts setting forth the amounts of
principal, interest and other sums paid and payable with respect to the Notes, the Note Agreement and the Obligations, and in the case of any dispute relating to any amounts outstanding with respect to any of the Obligations, the entries in such
account shall be binding upon the Guarantor absent manifest error. 
  
 Section 13. Waiver of Remedies. No delay or failure on the part of the Note Purchasers in the exercise of any right or remedy shall operate as a waiver thereof, and no single or partial exercise by the Note Purchasers of any
right or remedy shall preclude other or further exercise thereof or the exercise of any other right or remedy. 
  

 E-5 

 Section 14. Bankruptcy of Guarantor. In case of bankruptcy of the Guarantor, the Guarantor
authorizes and directs the court, any trustee or the debtor-in-possession to deliver to the Note Purchasers a sufficient amount of property or money claimed as exempt or otherwise outside the estate of the Guarantor to pay or satisfy any outstanding
Obligations. 
  
 Section 15. Successors and Assigns.
Each reference herein to the Note Purchasers shall be deemed to include each Note Purchaser’s successors and assigns (including, but not by way of limitation, any subsequent holder or Transferee of any Notes or the Obligations) in whose favor
the provisions of this Guaranty Agreement shall also inure, and each reference herein to the Guarantor shall be deemed to include the Guarantor’s successors and assigns, upon whom this Guaranty Agreement shall also be binding,, except that no
Guarantor shall have the right to assign its rights or obligations hereunder or any interest herein (and any such attempted assignment shall be void). 
  
 Section 16. Amendments. This Guaranty Agreement may not be amended or waived except in a writing signed by the Required Holders and the
Guarantor. 
  
 Section 17. Payments. All payments
made by the Guarantor pursuant to this Guaranty Agreement shall be made in the lawful currency of the United States, in immediately available funds to the account of the Note Purchasers and as identified in the Purchaser Schedule to the Note
Agreement, not later than 11:00 a.m. New York time on the date one Business Day after demand therefor. All notices or demands to the Guarantor shall be in writing and shall be telecopied, mailed or hand delivered to the address for the Guarantor set
forth below. 
  
 Section 18. Severability.

  
 (a) All covenants, agreements representations and warranties
made by the Guarantors herein and in the certificates or other instruments prepared or delivered in connection with or pursuant to this Guaranty Agreement or the other Related Documents shall be considered to have been relied upon by the Note
Purchasers and shall survive the purchase by the Note Purchasers of the Notes regardless of any investigation made by any of them or on their behalf, and shall continue in full force and effect as long as the principal of or any accrued interest on
any Note or any other fee or amount payable under the Note Agreement or any other Related Document is outstanding and unpaid and as long as the Note Agreement has not been terminated. 
  
 (b) In the event one or more of the provisions contained in this Guaranty Agreement or in any other Related Document should
be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby (it being understood that the
invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction). The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 
  

 E-6 

 Section 19. Headings. Section headings used in this Guaranty Agreement are for convenience
only and shall not affect the construction of this Guaranty Agreement. 
  
 Section 20. Definitions. Terms used herein and not defined herein have their respective defined meanings as set forth in the Note Agreement. 
  
 Section 21. Information. Each Guarantor assumes all responsibility for being and keeping itself
informed of the Company’s financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Obligations and the nature, scope and extent of the risks that such Guarantor assumes and incurs hereunder, and
agrees that none of the Note Purchasers will have any duty to advise any of the Guarantors of information known to it or any of them regarding such circumstances or risks. 
  
 Section 22. Representations and Warranties. Each Guarantor represents and warrants as to itself
that all representations and warranties relating to it (as a Subsidiary of the Company) contained in the Note Agreement are true and correct. 
  
 Section 23. Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS GUARANTY AGREEMENT OR THE OTHER RELATED DOCUMENTS. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT AND THE OTHER RELATED DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 23. 
  
 IN WITNESS WHEREOF, the Guarantor has duly executed and delivered this Guaranty Agreement as of the date and year first written above. 

 

			
	[NAME OF SUBSIDIARY]
		
	 By:
	 	  

	 Name:
	 	 
	Title:	 	 
	  
 Address for
Notices:

	
	 c/o Watsco, Inc.

	 2665 South Bayshore Drive, Suite 901

	 Coconut Grove, Florida 33133

	 Attention:

	 Telephone:

  

 E-7Indenture dated February 9, 2005

 Exhibit 4.7 
  
 EXECUTION COPY 
  

  
 TIME WARNER TELECOM HOLDINGS INC.,

  
                                        
           Company 
  
 TIME WARNER TELECOM INC., 
  
                                        
                         Parent Guarantor 
  
 THE SUBSIDIARY GUARANTORS PARTIES HERETO 
  
 and 
  
 WELLS FARGO BANK, NATIONAL ASSOCIATION, 
  
                                        
       Trustee 
  

  
 Indenture 
  
 Dated as of February 9, 2005 
  

  
 9-1/4% Senior Notes due 2014 
  

  

  
 CROSS-REFERENCE TABLE

  

			
	 TIA Sections

	  	Indenture Sections

	 § 310(a)(1)
	  	7.10
	 (a)(2)
	  	7.10
	 (b)
	  	7.03; 7.08
	 § 311(a)
	  	7.03
	 (b)
	  	7.03
	 § 312(a)
	  	2.04
	 (b)
	  	12.02
	 (c)
	  	12.02
	 § 313(a)
	  	7.06
	 (b)(2)
	  	7.07
	 (c)
	  	7.05; 7.06; 11.02
	 (d)
	  	7.06
	 § 314(a)
	  	7.05; 11.02
	 (a)(4)
	  	4.17; 11.02
	 (c)(1)
	  	11.03
	 (c)(2)
	  	11.03
	 (e)
	  	4.17; 11.04
	 § 315(a)
	  	7.02
	 (b)
	  	7.05; 11.02
	 (c)
	  	7.02
	 (d)
	  	7.02
	 (e)
	  	6.11
	 § 316(a)(1)(A)
	  	6.05
	 (a)(1)(B)
	  	6.04
	 (b)
	  	6.07
	 (c)
	  	9.03
	 § 317(a)(1)
	  	6.08
	 (a)(2)
	  	6.09
	 (b)
	  	2.04
	 § 318(a)
	  	11.01
	 (c)
	  	11.01

  

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

  

  
 TABLE OF CONTENTS 

 

					
	 	 	 	  	Page

	ARTICLE ONE	  	 
	DEFINITIONS AND INCORPORATION BY REFERENCE	  	 
			
	 SECTION 1.01.
	 	 Definitions
	  	1
	 SECTION 1.02.
	 	 Incorporation by Reference of Trust Indenture Act
	  	21
	 SECTION 1.03.
	 	 Rules of Construction
	  	21
	
	ARTICLE TWO
	THE NOTES
			
	 SECTION 2.01.
	 	 Form and Dating
	  	22
	 SECTION 2.02.
	 	 Restrictive Legends
	  	23
	 SECTION 2.03.
	 	 Execution, Authentication and Denominations
	  	25
	 SECTION 2.04.
	 	 Registrar and Paying Agent
	  	25
	 SECTION 2.05.
	 	 Paying Agent to Hold Money in Trust
	  	26
	 SECTION 2.06.
	 	 Transfer and Exchange
	  	27
	 SECTION 2.07.
	 	 Book-Entry Provisions for Global Notes
	  	27
	 SECTION 2.08.
	 	 Special Transfer Provisions
	  	29
	 SECTION 2.09.
	 	 Replacement Notes
	  	32
	 SECTION 2.10.
	 	 Outstanding Notes
	  	33
	 SECTION 2.11.
	 	 Temporary Notes
	  	33
	 SECTION 2.12.
	 	 Cancellation
	  	33
	 SECTION 2.13.
	 	 CUSIP Numbers
	  	34
	 SECTION 2.14.
	 	 Defaulted Interest
	  	34
	 SECTION 2.15.
	 	 Issuance of Additional Notes
	  	34
	
	ARTICLE THREE
	REDEMPTION
			
	 SECTION 3.01.
	 	 Right of Redemption
	  	34
	 SECTION 3.02.
	 	 Notices to Trustee
	  	35
	 SECTION 3.03.
	 	 Selection of Notes to Be Redeemed
	  	35
	 SECTION 3.04.
	 	 Notice of Redemption
	  	35
	 SECTION 3.05.
	 	 Effect of Notice of Redemption
	  	36
	 SECTION 3.06.
	 	 Deposit of Redemption Price
	  	37
	 SECTION 3.07.
	 	 Payment of Notes Called for Redemption
	  	37
	 SECTION 3.08.
	 	 Notes Redeemed in Part
	  	37
	
	ARTICLE FOUR
	COVENANTS
			
	 SECTION 4.01.
	 	 Payment of Notes
	  	37
	 SECTION 4.02.
	 	 Maintenance of Office or Agency
	  	37
	 SECTION 4.03.
	 	 Limitation on Indebtedness
	  	38

 Note: The Table of Contents shall not for any purpose
be deemed to be a part of the Indenture. 
  

					
			
	 SECTION 4.04.
	 	 Limitation on Restricted Payments
	  	41
	 SECTION 4.05.
	 	 Limitation on Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries
	  	44
	 SECTION 4.06.
	 	 Limitation on the Issuance and Sale of Capital Stock of Restricted Subsidiaries
	  	45
	 SECTION 4.07.
	 	 Limitation on Issuances of Guarantees by Restricted Subsidiaries
	  	45
	 SECTION 4.08.
	 	 Limitation on Transactions with Stockholders and Affiliates
	  	46
	 SECTION 4.09.
	 	 Limitation on Liens
	  	47
	 SECTION 4.10.
	 	 Limitation on Sale-Leaseback Transactions
	  	47
	 SECTION 4.11.
	 	 Limitation on Asset Sales
	  	47
	 SECTION 4.12.
	 	 Repurchase of Notes upon a Change of Control
	  	49
	 SECTION 4.13.
	 	 Existence
	  	49
	 SECTION 4.14.
	 	 Payment of Taxes and Other Claims
	  	49
	 SECTION 4.15.
	 	 Maintenance of Properties and Insurance
	  	49
	 SECTION 4.16.
	 	 Notice of Defaults
	  	50
	 SECTION 4.17.
	 	 Compliance Certificates
	  	50
	 SECTION 4.18.
	 	 Commission Reports and Reports to Holders
	  	50
	 SECTION 4.19.
	 	 Waiver of Stay, Extension or Usury Laws
	  	51
	 SECTION 4.20.
	 	 Future Subsidiary Guarantors
	  	51
	
	ARTICLE FIVE
	SUCCESSOR CORPORATION
			
	 SECTION 5.01.
	 	 When Company and the Parent Guarantor May Merge, Etc.
	  	51
	 SECTION 5.02.
	 	 Successor Substituted
	  	52
	
	ARTICLE SIX
	DEFAULT AND REMEDIES
			
	 SECTION 6.01.
	 	 Events of Default
	  	52
	 SECTION 6.02.
	 	 Acceleration
	  	54
	 SECTION 6.03.
	 	 Other Remedies
	  	55
	 SECTION 6.04.
	 	 Waiver of Past Defaults
	  	55
	 SECTION 6.05.
	 	 Control by Majority
	  	55
	 SECTION 6.06.
	 	 Limitation on Suits
	  	55
	 SECTION 6.07.
	 	 Rights of Holders to Receive Payment
	  	56
	 SECTION 6.08.
	 	 Collection Suit by Trustee
	  	56
	 SECTION 6.09.
	 	 Trustee May File Proofs of Claim
	  	56
	 SECTION 6.10.
	 	 Priorities
	  	57
	 SECTION 6.11.
	 	 Undertaking for Costs
	  	57
	 SECTION 6.12.
	 	 Restoration of Rights and Remedies
	  	57
	 SECTION 6.13.
	 	 Rights and Remedies Cumulative
	  	57
	 SECTION 6.14.
	 	 Delay or Omission Not Waiver
	  	58

  

					
	ARTICLE SEVEN
	TRUSTEE
			
	 SECTION 7.01.
	 	 General
	  	58
	 SECTION 7.02.
	 	 Certain Rights of Trustee
	  	58
	 SECTION 7.03.
	 	 Individual Rights of Trustee
	  	59
	 SECTION 7.04.
	 	 Trustee’s Disclaimer
	  	59
	 SECTION 7.05.
	 	 Notice of Default
	  	59
	 SECTION 7.06.
	 	 Reports by Trustee to Holders
	  	60
	 SECTION 7.07.
	 	 Compensation and Indemnity
	  	60
	 SECTION 7.08.
	 	 Replacement of Trustee
	  	61
	 SECTION 7.09.
	 	 Successor Trustee by Merger, Etc.
	  	62
	 SECTION 7.10.
	 	 Eligibility
	  	62
	 SECTION 7.11.
	 	 Money Held in Trust
	  	62
	
	ARTICLE EIGHT
	DISCHARGE OF INDENTURE
			
	 SECTION 8.01.
	 	 Termination of Company’s Obligations
	  	62
	 SECTION 8.02.
	 	 Defeasance and Discharge of Indenture
	  	63
	 SECTION 8.03.
	 	 Defeasance of Certain Obligations
	  	65
	 SECTION 8.04.
	 	 Application of Trust Money
	  	66
	 SECTION 8.05.
	 	 Repayment to Company
	  	66
	 SECTION 8.06.
	 	 Reinstatement
	  	67
	
	ARTICLE NINE
	AMENDMENTS, SUPPLEMENTS AND WAIVERS
			
	 SECTION 9.01.
	 	 Without Consent of Holders
	  	67
	 SECTION 9.02.
	 	 With Consent of Holders
	  	67
	 SECTION 9.03.
	 	 Revocation and Effect of Consent
	  	68
	 SECTION 9.04.
	 	 Notation on or Exchange of Notes
	  	69
	 SECTION 9.05.
	 	 Trustee to Sign Amendments, Etc
	  	69
	 SECTION 9.06.
	 	 Conformity with Trust Indenture Act
	  	69
	
	ARTICLE TEN
	NOTE GUARANTEES
	 SECTION 10.01.
	 	 Note Guarantees
	  	70
	 SECTION 10.02.
	 	 Limitation on Guarantor Liability
	  	71
	 SECTION 10.03.
	 	 Execution and Delivery of Note Guarantees
	  	71
	 SECTION 10.04.
	 	 Release of Subsidiary Guarantor
	  	72
	
	ARTICLE ELEVEN
	MISCELLANEOUS
			
	 SECTION 11.01.
	 	 Trust Indenture Act of 1939
	  	72
	 SECTION 11.02.
	 	 Notices
	  	73

  

					
	 SECTION 11.03.
	 	 Certificate and Opinion as to Conditions Precedent
	  	74
	 SECTION 11.04.
	 	 Statements Required in Certificate or Opinion
	  	74
	 SECTION 11.05.
	 	 Acts of Holders
	  	74
	 SECTION 11.06.
	 	 Rules by Trustee, Paying Agent or Registrar
	  	76
	 SECTION 11.07.
	 	 Payment Date Other Than a Business Day
	  	76
	 SECTION 11.08.
	 	 Governing Law
	  	76
	 SECTION 11.09.
	 	 No Adverse Interpretation of Other Agreements
	  	76
	 SECTION 11.10.
	 	 No Recourse Against Others
	  	76
	 SECTION 11.11.
	 	 Successors
	  	76
	 SECTION 11.12.
	 	 Duplicate Originals
	  	77
	 SECTION 11.13.
	 	 Separability
	  	77
	 SECTION 11.14.
	 	 Table of Contents, Headings, Etc.
	  	77

  

					
	 EXHIBIT A
	  	 Form of Note
	  	A-1
	 EXHIBIT B
	  	 Form of Certificate
	  	B-1
	 EXHIBIT C
	  	 Form of Certificate to Be Delivered in Connection with Transfers to Non-QIB Accredited Investors
	  	C-1
	 EXHIBIT D
	  	 Form of Certificate to Be Delivered in Connection with Transfers Pursuant to Regulation S
	  	D-1

  

 INDENTURE, dated as of February 9, 2005, among TIME WARNER TELECOM HOLDINGS INC., a Delaware corporation
(the “Company”), TIME WARNER TELECOM INC. (the “Parent Guarantor”), the Subsidiary Guarantors (as defined herein) parties hereto and WELLS FARGO BANK, NATIONAL ASSOCIATION, as trustee (the
“Trustee”). 
  
 RECITALS 
  
 The Company has duly authorized the execution and delivery of this Indenture
to provide for the issuance initially of up to $200 million aggregate principal amount of its 9-1/4 % Senior Notes due 2014 (the “Notes”) issuable as provided in this Indenture. All things necessary to make this Indenture a valid
agreement of the Company, in accordance with its terms, have been done, and the Company has done all things necessary to make the Notes, when executed by the Company and authenticated and delivered by the Trustee hereunder and duly issued by the
Company, valid obligations of the Company as hereinafter provided. 
  
 AND THIS INDENTURE FURTHER WITNESSETH 
  
 For and in
consideration of the premises and the purchase of the Notes by the Holders thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all Holders, as follows. 
  
 ARTICLE ONE 
 DEFINITIONS AND INCORPORATION BY REFERENCE 
  
 SECTION 1.01. Definitions. 
  
 “2011 Indenture” means the indenture, dated as of February 20, 2004, among the Company, the Guarantors and the Trustee and pursuant to which the
2011 Notes are issued, as amended and supplemented as of the date hereof. 
  
 “2011 Notes” means the Second Priority Senior Secured Floating Rate Notes due February 15, 2011 now or hereafter issued by the Company pursuant to the terms of the 2011 Indenture. 
  
 “2014 Indenture” means the indenture, dated as of February 20,
2004, among the Company, the Guarantors and the Trustee and pursuant to which the 2014 Notes are issued, as amended and supplemented as of the date hereof. 
  
 “2014 Notes” means the 9 1/4% Senior Notes due February 15, 2014 now or hereafter issued by the Company pursuant to the terms of the 2014
Indenture. 
  
 “Acquired Indebtedness” means
Indebtedness of a Person existing at the time such Person becomes a Restricted Subsidiary or assumed in connection with an Asset Acquisition by a Restricted Subsidiary and not Incurred in connection with, or in anticipation of, such Person becoming
a Restricted Subsidiary or such Asset Acquisition; provided that Indebtedness of such Person which is redeemed, defeased, retired or otherwise repaid at the time of or immediately upon consummation of the transactions by which such Person
becomes a Restricted Subsidiary or such Asset Acquisition shall not be Acquired Indebtedness. 
  

 “Adjusted Consolidated Net Income” means, for any period, aggregate net income (or loss) of any
Person and its Restricted Subsidiaries for such period determined in conformity with GAAP; provided that the following items shall be excluded in computing Adjusted Consolidated Net Income (without duplication): (i) the net income (or loss)
of any Person that is not a Restricted Subsidiary, except (x) with respect to net income, to the extent of the amount of dividends or other distributions actually paid to such Person or any of its Restricted Subsidiaries by such other Person during
such period and (y) with respect to net losses, to the extent of the amount of Investments made by such Person or any of its Restricted Subsidiaries in such other Person during such other period; (ii) solely for the purposes of calculating the
amount of Restricted Payments that may be made pursuant to clause (C) of Section 4.04(a) (and in such case, except to the extent includable pursuant to clause (i) above), the net income (or loss) of any other Person accrued prior to the date it
becomes a Restricted Subsidiary or is merged into or consolidated with such Person or any of its Restricted Subsidiaries or all or substantially all of the property and assets of such other Person are acquired by such Person or any of its Restricted
Subsidiaries; (iii) the net income of any Restricted Subsidiary to the extent that the declaration or payment of dividends or similar distributions by such Restricted Subsidiary of such net income is not at the time permitted by the operation of the
terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to such Restricted Subsidiary; (iv) any gains or losses (on an after-tax basis) attributable to Asset Sales; (v) solely
for purposes of calculating the amount of Restricted Payments that may be made pursuant to clause (C) of Section 4.04(a), any amount paid or accrued as dividends (other than dividends to the extent paid or payable in shares of Capital Stock (other
than Disqualified Stock) of such Person) on Preferred Stock of such Person or any Restricted Subsidiary owned by Persons other than such Person and any of its Restricted Subsidiaries; (vi) all extraordinary gains and extraordinary losses; and (vii)
any compensation expense paid or payable solely with Capital Stock (other than Disqualified Stock) of such Person or any options, warrants or other rights to acquire Capital Stock (other than Disqualified Stock). 
  
 “Adjusted Consolidated Net Tangible Assets” means the total amount
of assets of the Parent Guarantor and its Restricted Subsidiaries (less applicable depreciation, amortization and other valuation reserves), except to the extent resulting from write-ups of capital assets (excluding write-ups in connection with
accounting for acquisitions in conformity with GAAP), after deducting therefrom (i) all current liabilities of the Parent Guarantor and its Restricted Subsidiaries (excluding intercompany items), and (ii) all goodwill, trade names, trademarks,
patents, unamortized debt discount and expense and other like intangibles, all as set forth on the most recent quarterly or annual consolidated balance sheet of the Parent Guarantor and its Restricted Subsidiaries, prepared in conformity with GAAP
and filed with the Commission or provided to the Trustee pursuant to Section 4.18. 
  
 “Adjusted Net Cash Proceeds” has the meaning provided in Section 4.11. 
  
 “Affiliate” means, as applied to any Person, any other Person directly or indirectly controlling, controlled by, or under direct or indirect
common control with, such Person. For purposes of this definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled by” and “under common control with”), as applied to any
Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the 

  

 2 

 
management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise. 
  
 “Agent” means any Registrar, co-Registrar, Paying Agent,
authenticating agent or agent for service of notices and demands. 
  
 “Agent Members” has the meaning provided in Section 2.07. 
  
 “Asset Acquisition” means (i) an investment by the Company, the Parent Guarantor or any Restricted Subsidiary in any other Person pursuant to which such Person shall become a Restricted Subsidiary or shall
be merged into or consolidated with the Company, the Parent Guarantor or any Restricted Subsidiary; provided that such Person’s primary business is related, ancillary or complementary to the businesses of the Company, the Parent
Guarantor and the Restricted Subsidiaries on the date of such investment or (ii) an acquisition by the Company, the Parent Guarantor or any Restricted Subsidiary of the property and assets of any Person other than the Company, the Parent Guarantor
or any Restricted Subsidiary that constitute substantially all of a division or line of business of such Person; provided that the property and assets acquired are related, ancillary or complementary to the businesses of the Company, the
Parent Guarantor and the Restricted Subsidiaries on the date of such acquisition. 
  
 “Asset Disposition” means the sale or other disposition by the Company, the Parent Guarantor or any Restricted Subsidiary (other than to the Parent Guarantor, the Company or another Restricted Subsidiary) of
(i) all or substantially all of the Capital Stock of any Restricted Subsidiary or (ii) all or substantially all of the assets that constitute a division or line of business of the Company or any of the other Restricted Subsidiaries. 
  
 “Asset Sale” means any sale, transfer or other disposition
(including by way of merger, consolidation or sale-leaseback transaction) in one transaction or a series of related transactions by the Company, the Parent Guarantor or any Restricted Subsidiary to any Person other than the Company or any other
Restricted Subsidiary of (i) all or any of the Capital Stock of any Restricted Subsidiary, (ii) all or substantially all of the property and assets of an operating unit or business of the Company, the Parent Guarantor or any Restricted Subsidiary;
or (iii) any other property and assets (other than the Capital Stock or other Investment in an Unrestricted Subsidiary) of the Company, the Parent Guarantor or any Restricted Subsidiary outside the ordinary course of business of the Company, the
Parent Guarantor or such Restricted Subsidiary and, in each case, that is not governed by the provisions of this Indenture applicable to mergers, consolidations and sales of all or substantially all of the assets of the Company or the Parent
Guarantor; provided, however, that “Asset Sale” shall not include (a) sales or other dispositions of inventory, receivables and other current assets, (b) sales, transfers or other dispositions of assets constituting a Restricted
Payment permitted to be made under Section 4.04, (c) sales, transfers or other dispositions of assets with a fair market value (as certified in an Officers’ Certificate) not in excess of $20 million in any transaction or series of related
transactions, or (d) sales or other dispositions of assets for consideration at least equal to the fair market value of the assets sold or disposed of, to the extent that the consideration received would constitute property, assets or securities of
the kind described in clause (i)(B) of Section 4.11(b). 
  

 3 

 “Average Life” means, at any date of determination with respect to any Indebtedness, the
quotient obtained by dividing (i) the sum of the products of (a) the number of years from such date of determination to the dates of each successive scheduled principal payment of such Indebtedness and (b) the amount of such principal payment by
(ii) the sum of all such principal payments. 
  
 “Board of
Directors” means the Board of Directors of the Company, the Parent Guarantor or any Subsidiary Guarantor, as applicable. 
  
 “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company, the Parent Guarantor or any
Subsidiary Guarantor, as applicable, to have been duly adopted by the Board of 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 except a Saturday, Sunday or other day
on which commercial banks in The City of New York, or in the city of the Corporate Trust Office of the Trustee, are authorized by law to close. 
  
 “Capital Stock” means, with respect to any Person, any and all shares, interests, participations or other equivalents (however designated,
whether voting or non-voting) in equity of such Person, whether outstanding on the Closing Date or issued thereafter, including, without limitation, all Common Stock and Preferred Stock. 
  
 “Capitalized Lease” means, as applied to any Person, any lease of any property (whether real, personal or mixed)
of which the discounted present value of the rental obligations of such Person as lessee, in conformity with GAAP, is required to be capitalized on the balance sheet of such Person. 
  
 “Capitalized Lease Obligations” means the discounted present value of the rental obligations under a Capitalized
Lease. 
  
 “Change of Control” means such time as (i)
(A) the Former Parent Companies as a group cease to have the ability to elect a majority of the members of the Board of Directors of the Parent Guarantor (other than the chief executive officer and independent directors of the Parent Guarantor;
provided, however, that independent directors shall be included in calculating whether the foregoing majority requirement is satisfied if the Directors nominated by the Former Parent Companies do not constitute a majority of the
committee that selects the Board of Directors’ nominees for independent directors) and (B) a “Person” or “group” (within the meaning of Sections 13(d) and 14(d)(2) of the Exchange Act) (other than the Former Parent
Companies) has become the ultimate “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of more than 50% of the total voting power of the Voting Stock of the Parent Guarantor on a fully diluted basis or (ii) individuals who
on February 20, 2004 constitute the Board of Directors of the Parent Guarantor (together with any new Directors whose election by such Board of Directors or whose nomination by such Board of Directors for election by the Parent Guarantor’s
stockholders or members, as the case may be, was approved by a vote of at least two-thirds of the members of such Board of Directors then in office who either were members of such Board of Directors on February 20, 2004 or whose election or
nomination for 

  

 4 

 
election was previously so approved) cease for any reason to constitute a majority of the members of such Board of Directors then in office; or (iii) the
Company shall cease to be a Subsidiary of the Parent Guarantor. 
  
 “Change of Control Triggering Event” means the occurrence of both a Change of Control and a Rating Decline. 
  
 “Closing Date” means the date on which the Notes are originally issued under this Indenture. 
  
 “Commission” means the Securities and Exchange Commission, as from
time to time constituted, created under the Exchange Act or, if at any time after the execution of this instrument such Commission is not existing and performing the duties now assigned to it under the TIA, then the body performing such duties at
such time. 
  
 “Common Stock” means, with respect to any
Person, such Person’s equity other than Preferred Stock of such Person, whether outstanding on the Closing Date or issued thereafter, including, without limitation, all series and classes of such common stock, including any and all shares,
interests, participations or other equivalents (however designated, whether voting or non-voting) thereof. 
  
 “Company” means Time Warner Telecom Holdings Inc. 
  
 “Company Order” means a written request or order signed in the name of the Company (i) by its Chairman, a Vice Chairman, its President or a Vice
President and (ii) by its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary and delivered to the Trustee; provided, however, that such written request or order may be signed by any two of the officers or
directors listed in clause (i) above in lieu of being signed by one of such officers or directors listed in such clause (i) and one of the officers listed in clause (ii) above. 
  
 “Consolidated EBITDA” means, for any period and with respect to any Person, Adjusted Consolidated Net Income for
such Person for such period (x) plus, to the extent such amount was deducted in calculating such Adjusted Consolidated Net Income, (i) Consolidated Interest Expense, (ii) income taxes (other than income taxes (either positive or negative)
attributable to extraordinary and non-recurring gains or losses or sales of assets), (iii) depreciation expense, (iv) amortization expense and (v) all other non-cash items reducing Adjusted Consolidated Net Income (other than items that will require
cash payments and for which an accrual or reserve is, or is required by GAAP to be, made), less all non-cash items increasing Adjusted Consolidated Net Income, all as determined on a consolidated basis for such Person and its Restricted Subsidiaries
in conformity with GAAP, and (y) solely for purposes of calculating the amount of Restricted Payments that may be made pursuant to clause (C) of Section 4.04(a), less (to the extent not otherwise reduced in accordance with GAAP) the aggregate amount
of deposits made by such Person and its Restricted Subsidiaries after the Existing High Yield Closing Date in connection with proposed Asset Acquisitions that are forfeited by such Person or any of its Restricted Subsidiaries; provided that,
if any Restricted Subsidiary is not a Wholly Owned Restricted Subsidiary, Consolidated EBITDA shall be reduced (to the extent not otherwise reduced in accordance with GAAP) by an amount equal to 

  

 5 

 
(A) the amount of the Adjusted Consolidated Net Income attributable to such Restricted Subsidiary multiplied by (B) the percentage ownership interest in the
income of such Restricted Subsidiary not owned on the last day of such period by such Person or any of its Restricted Subsidiaries. 
  
 “Consolidated Interest Expense” means, for any period and with respect to any Person, the aggregate amount of interest in respect of
Indebtedness (including, without limitation, amortization of original issue discount on any Indebtedness and the interest portion of any deferred payment obligation, calculated in accordance with the effective interest method of accounting; all
commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing; the net costs associated with Interest Rate Agreements; and interest on Indebtedness that is Guaranteed or secured by
such Person or any of its Restricted Subsidiaries) and all but the principal component of rentals in respect of Capitalized Lease Obligations, in each case, that is paid, accrued or scheduled to be paid or to be accrued by such Person and its
Restricted Subsidiaries during such period; excluding, however, (i) in calculating Consolidated EBITDA, any amount of such interest of any Restricted Subsidiary if the net income of such Restricted Subsidiary is excluded in the calculation of
Adjusted Consolidated Net Income pursuant to clause (iii) of the definition thereof (but only in the same proportion as the net income of such Restricted Subsidiary is excluded from the calculation of Adjusted Consolidated Net Income pursuant to
clause (iii) of the definition thereof) and (ii) any premiums, fees and expenses (and any amortization thereof) payable in connection with the offering of the Notes, all as determined on a consolidated basis (without taking into account Unrestricted
Subsidiaries) in conformity with GAAP. 
  
 “Consolidated
Leverage Ratio” means, on any Transaction Date and with respect to any Person, the ratio of (i) the aggregate amount of Indebtedness of such Person and its Restricted Subsidiaries on a consolidated basis outstanding on such Transaction Date to
(ii) the aggregate amount of Consolidated EBITDA for such Person and its Restricted Subsidiaries for the then most recent four fiscal quarters for which financial statements of such Person (or in the case of the Company, the Parent Guarantor) have
been filed with the Commission or provided to the Trustee pursuant to Section 4.18 (such four fiscal quarter period being the “Four Quarter Period”); provided that, in making the foregoing calculation, (A) pro forma effect
shall be given to any Indebtedness to be Incurred or repaid on the Transaction Date; (B) pro forma effect shall be given to Asset Dispositions and Asset Acquisitions (including giving pro forma effect to the application of proceeds of any Asset
Disposition) that occur from the beginning of the Four Quarter Period through the Transaction Date (the “Reference Period”), as if they had occurred and such proceeds had been applied on the first day of such Reference Period; and
(C) pro forma effect shall be given to asset dispositions and asset acquisitions (including giving pro forma effect to the application of proceeds of any asset disposition) that have been made by any Person that has become a Restricted Subsidiary or
has been merged with or into such Person or any Restricted Subsidiary during such Reference Period and that would have constituted Asset Dispositions or Asset Acquisitions had such transactions occurred when such Person was a Restricted Subsidiary
as if such asset dispositions or asset acquisitions were Asset Dispositions or Asset Acquisitions that occurred on the first day of such Reference Period; provided that to the extent that clause (B) or (C) of this sentence requires that pro
forma effect be given to an Asset Acquisition or Asset Disposition, such pro forma calculation shall be based upon the four full fiscal quarters immediately preceding the Transaction Date of the Person, or division or line 

  

 6 

 
of business of the Person, that is acquired or disposed of for which financial information is available. 
  
 “Corporate Trust Office” means the office of the Trustee at which
the corporate trust business of the Trustee shall, at any particular time, be principally administered, which office is, at the date of this Indenture, located at N9303-120, Sixth Street and Marquette Avenue, Minneapolis, Minnesota 55479.

  
 “Credit Agreements” means credit agreements, vendor
financings or similar facilities or other evidences of indebtedness of the Company, the Parent Guarantor and any Restricted Subsidiary for the Incurrence of Indebtedness, including letters of credit and any related notes, guarantees, collateral
documents, instruments and agreements executed in connection therewith, as the same may be amended, supplemented, modified or restated from time to time. 
  
 “Currency Agreement” means any foreign exchange contract, currency swap agreement or other similar agreement or arrangement. 
  
 “Default” means any event that is, or after notice or passage of
time or both would be, an Event of Default. 
  
 “Depositary” means The Depository Trust Company, its nominees, and their respective successors. 
  
 “Director” means a Director on the Board of Directors of the Company, the Parent Guarantor or any Subsidiary Guarantor, as applicable.

  
 “Disqualified Stock” means any class or series of
Capital Stock of any Person that by its terms or otherwise is (i) required to be redeemed prior to the Stated Maturity of the Notes, (ii) redeemable at the option of the holder of such class or series of Capital Stock at any time prior to the Stated
Maturity of the Notes or (iii) convertible into or exchangeable for Capital Stock referred to in clause (i) or (ii) above or Indebtedness having a scheduled maturity prior to the Stated Maturity of the Notes; provided that any Capital Stock
that would not constitute Disqualified Stock but for provisions thereof giving holders thereof the right to require such Person to repurchase or redeem such Capital Stock upon the occurrence of an “asset sale” or “change of
control” occurring prior to the Stated Maturity of the Notes shall not constitute Disqualified Stock if the “asset sale” or “change of control” provisions applicable to such Capital Stock are no more favorable to the holders
of such Capital Stock than the provisions contained in Section 4.11 and Section 4.12 and such Capital Stock, or the agreements or instruments governing the redemption rights thereof, specifically provides that such Person will not repurchase or
redeem any such stock pursuant to such provision prior to the Company’s repurchase of such Notes as are required to be repurchased pursuant to Section 4.11 and Section 4.12. 
  
 “Domestic Restricted Subsidiary” means any Restricted Subsidiary other than (a) a Foreign Restricted Subsidiary or
(b) a Subsidiary of a Foreign Restricted Subsidiary. 
  

 7 

 “Equity Offering” means an offering of Common Stock of the Parent Guarantor for cash pursuant
to an effective registration statement under the Securities Act or an exemption from the registration requirements contained therein. 
  
 “Excess Proceeds” has the meaning provided in Section 4.11. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Exchange Notes” means additional 2014 Notes and the related
additional Guarantees, as defined in the 2014 Indenture, to be issued by the Company and the Guarantors, respectively, under the 2014 Indenture, which shall be registered under the Securities Act and identical to and treated as the same class as the
outstanding 2014 Notes and related Guarantees, as defined in the 2014 Indenture, and shall be offered to Holders of Notes in exchange for Notes pursuant to the Notes Registration Rights Agreement and this Indenture. 
  
 “Existing High Yield Closing Date” means July 21, 1998. 

 
 “fair market value” means the price that would be paid in an
arm’s-length transaction between an informed and willing seller under no compulsion to sell and an informed and willing buyer under no compulsion to buy, as determined in good faith by the Board of Directors, whose determination shall be
conclusive if evidenced by a Board Resolution; provided that for purposes of clause (viii) of Section 4.03(b), (x) the fair market value of any security registered under the Exchange Act shall be the average of the closing prices, regular
way, of such security for the 20 consecutive trading days immediately preceding the sale of Capital Stock and (y) in the event the aggregate fair market value of any other property (other than cash or cash equivalents) received by the Company or the
Parent Guarantor, as applicable, exceeds $15 million, the fair market value of such property shall be determined by a nationally recognized investment banking firm and set forth in their written opinion which shall be delivered to the Trustee.

  
 “Foreign Restricted Subsidiaries” means any
Restricted Subsidiary which is not organized under the laws of the United States of America or any State thereof or the District of Columbia. 
  
 “Former Parent Companies” means Time Warner Inc., Advance/Newhouse Partnership and the Affiliates of each of the foregoing. 
  
 “GAAP” means generally accepted accounting principles in the United
States of America as in effect as of February 20, 2004, including, without limitation, those set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as approved by a significant segment of the accounting profession. All ratios and computations contained or referred to in this Indenture
shall be computed in conformity with GAAP applied on a consistent basis, except that calculations made for purposes of determining compliance with the terms of the covenants and with other provisions of this Indenture shall be made without giving
effect to (i) the amortization of any expenses incurred in connection with the offering of the Notes and (ii) except as otherwise 

  

 8 

 
provided, the amortization of any amounts required or permitted by Accounting Principles Board Opinion Nos. 16 and 17 or Financial Accounting Standards Board
Nos. 141 and 142. 
  
 “Global Notes” has the meaning
provided in Section 2.01. 
  
 “Guarantee” means any
obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Indebtedness of any other Person and, without limiting the generality of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such
Person (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness of such other Person (whether arising by virtue of partnership arrangements, or by agreements to keep-well, to purchase assets, goods,
securities or services (unless such purchase arrangements are on arm’s-length terms and are entered into in the ordinary course of business), to take-or-pay, or to maintain financial statement conditions or otherwise) or (ii) entered into for
purposes of assuring in any other manner the obligee of such Indebtedness of the payment thereof or to protect such obligee against loss in respect thereof (in whole or in part); provided that the term “Guarantee” shall not include
endorsements for collection or deposit in the ordinary course of business. The term “Guarantee” used as a verb has a corresponding meaning. 
  
 “Guarantors” means the Parent Guarantor and the Subsidiary Guarantors. 
  
 “Holder” or “Noteholder” means the registered holder of any Note. 
  
 “Incur” means, with respect to any Indebtedness, to incur, create,
issue, assume, Guarantee or otherwise become liable for or with respect to, or become responsible for, the payment of, contingently or otherwise, such Indebtedness, including an “Incurrence” of Acquired Indebtedness; provided that
neither the accrual of interest nor the accretion of original issue discount shall be considered an Incurrence of Indebtedness. 
  
 “Indebtedness” means, with respect to any Person at any date of determination (without duplication), (i) all indebtedness of such Person for
borrowed money, (ii) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (iii) all obligations of such Person in respect of letters of credit or other similar instruments (including reimbursement
obligations with respect thereto, but excluding obligations with respect to letters of credit (including trade letters of credit) securing obligations (other than obligations described in (i) or (ii) above or (v), (vi) or (vii) below) entered into
in the ordinary course of business of such Person to the extent such letters of credit are not drawn upon or, if drawn upon, to the extent such drawing is reimbursed no later than the third Business Day following receipt by such Person of a demand
for reimbursement), (iv) all obligations of such Person to pay the deferred and unpaid purchase price of property or services, which purchase price is due more than six months after the date of placing such property in service or taking delivery and
title thereto or the completion of such services, except Trade Payables, (v) all Capitalized Lease Obligations of such Person, (vi) all Indebtedness of other Persons secured by a Lien on any asset of such Person, whether or not such Indebtedness is
assumed by such Person; provided that the amount of such Indebtedness shall be the lesser of (A) the fair market value of such asset at such date of determination and (B) the amount of such Indebtedness, (vii) all Indebtedness of other
Persons Guaranteed by such Person to the extent such Indebtedness is Guaranteed by such Person, (viii) to the extent not otherwise included in this definition, obligations under Currency 

  

 9 

 
Agreements and Interest Rate Agreements and (ix) Indebtedness or obligations of a Person for cash management services benefiting such Person. The amount of
Indebtedness of any Person at any date shall be the outstanding balance at such date of all unconditional obligations as described above and, with respect to contingent obligations, the maximum liability upon the occurrence of the contingency giving
rise to the obligation, provided (A) that the amount outstanding at any time of any Indebtedness issued with original issue discount is the face amount of such Indebtedness less the remaining unamortized portion of the original issue discount
of such Indebtedness at the time of its issuance as determined in conformity with GAAP, (B) that money borrowed and set aside at the time of the Incurrence of any Indebtedness in order to prefund the payment of the interest on such Indebtedness
shall not be deemed to be “Indebtedness” so long as such money is held to secure the payment of such interest and (C) that Indebtedness shall not include any liability for federal, state, local or other taxes. 
  
 “Indenture” means this Indenture as originally executed or as it
may be amended or supplemented from time to time by one or more indentures supplemental to this Indenture entered into pursuant to the applicable provisions of this Indenture. 
  
 “Institutional Accredited Investor” means an institution that is an “accredited investor” as that term
is defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act. 
  
 “Interest Payment Date” means each semiannual interest payment date on February 15 and August 15 of each year, commencing February 15, 2005. 
  

“Interest Rate Agreement” means any interest rate protection agreement, interest rate future agreement, interest rate option agreement,
interest rate swap agreement, interest rate cap agreement, interest rate collar agreement, interest rate hedge agreement, option or future contract or other similar agreement or arrangement. 
  
 “Investment” in any Person means any direct or indirect advance,
loan or other extension of credit (including, without limitation, by way of Guarantee or similar arrangement; but excluding advances to customers in the ordinary course of business that are, in conformity with GAAP, recorded as accounts receivable
on the balance sheet of the Company, the Parent Guarantor or any Restricted Subsidiary) or capital contribution to (by means of any transfer of cash or other property to others or any payment for property or services for the account or use of
others), or any purchase or acquisition of Capital Stock, bonds, notes, debentures or other similar instruments issued by, such Person and shall include (i) the designation of a Restricted Subsidiary as an Unrestricted Subsidiary and (ii) the fair
market value of the Capital Stock (or any other Investment), held by the Company, the Parent Guarantor or any Restricted Subsidiary, of (or in) any Person that has ceased to be a Restricted Subsidiary, including without limitation, by reason of any
transaction permitted by clause (iii) of Section 4.06; provided that the fair market value of the Investment remaining in any Person that has ceased to be a Restricted Subsidiary shall not exceed the aggregate amount of Investments previously
made in such Person valued at the time such Investments were made less the net reduction of such Investments. For purposes of the definition of “Unrestricted Subsidiary” and Section 4.04, (i) “Investment” shall include the fair
market value of the assets (net of liabilities (other than liabilities to the Company, the Parent Guarantor or any Restricted Subsidiary)) of any Restricted Subsidiary at the time that such Restricted Subsidiary is designated an Unrestricted
Subsidiary, (ii) the fair market value of 

  

 10 

 
the assets (net of liabilities (other than liabilities to the Company, the Parent Guarantor or any Restricted Subsidiary)) of any Unrestricted Subsidiary at
the time that such Unrestricted Subsidiary is designated a Restricted Subsidiary shall be considered a reduction in outstanding Investments and (iii) any property transferred to or from an Unrestricted Subsidiary shall be valued at its fair market
value at the time of such transfer. 
  
 “Lenders” means,
at any time, the parties to any Credit Agreement then holding or beneficially owning (or committed to provide) bonds, loans, letters of credit or other extensions of credit that constitute (or when provided will constitute) Priority Lien Debt
outstanding under such Credit Agreement. 
  
 “Lien”
means any mortgage, pledge, security interest, encumbrance, lien or charge of any kind (including, without limitation, any conditional sale or other title retention agreement or lease in the nature thereof or any agreement to give any security
interest). 
  
 “liquidated damages” means any additional
interest on the Notes that shall be due and payable pursuant to the terms of the Notes Registration Rights Agreement. 
  
 “Moody’s” means Moody’s Investors Service, Inc. and its successors. 
  
 “Net Cash Proceeds” means, (a) with respect to any Asset Sale, the proceeds of such Asset Sale in the form of cash
or cash equivalents, including payments in respect of deferred payment obligations (to the extent corresponding to the principal, but not interest, component thereof) when received in the form of cash or cash equivalents (except to the extent such
obligations are financed or sold with recourse to the Company, the Parent Guarantor or any Restricted Subsidiary) and proceeds from the conversion of other property received when converted to cash or cash equivalents, net of (i) brokerage
commissions and other fees and expenses (including fees and expenses of counsel and investment bankers) related to such Asset Sale, (ii) provisions for all taxes (whether or not such taxes will actually be paid or are payable) as a result of such
Asset Sale without regard to the consolidated results of operations of the Parent Guarantor and its Restricted Subsidiaries, taken as a whole, (iii) payments made to repay Indebtedness or any other obligation outstanding at the time of such Asset
Sale that either (A) is secured by a Lien on the property or assets sold or (B) is required to be paid as a result of such sale and (iv) appropriate amounts to be provided by the Company, the Parent Guarantor or any Restricted Subsidiary as a
reserve against any liabilities associated with such Asset Sale, including, without limitation, pension and other post-employment benefit liabilities, liabilities related to environmental matters and liabilities under any indemnification obligations
associated with such Asset Sale, all as determined in conformity with GAAP and (b) with respect to any issuance or sale of Capital Stock, the proceeds of such issuance or sale in the form of cash or cash equivalents, including payments in respect of
deferred payment obligations (to the extent corresponding to the principal, but not interest, component thereof) when received in the form of cash or cash equivalents (except to the extent such obligations are financed or sold with recourse to the
Company, the Parent Guarantor or any Restricted Subsidiary) and proceeds from the conversion of other property received when converted to cash or cash equivalents, net of attorneys’ fees, accountants’ fees, underwriters’ or initial
purchasers’ fees, discounts or 

  

 11 

 
commissions and brokerage, consultant and other fees incurred in connection with such issuance or sale and net of taxes paid or payable as a result thereof.

  
 “Non-U.S. Person” means a Person who is not a
“U.S. person,” as defined in Regulation S. 
  
 “Note Guarantee” means the Parent Guarantee and the Subsidiary Guarantee. 
  
 “Notes” means any of the securities, as defined in the first paragraph of the recitals hereof, that are authenticated and delivered under this Indenture. For all purposes of this Indenture, the term
“Notes” shall include the Notes initially issued on the Closing Date and any other Notes issued after the Closing Date under this Indenture other than the Exchange Notes issued under the 2014 Indenture. For purposes of this Indenture, all
Notes shall vote together as one series of Notes under this Indenture. 
  
 “Notes Registration Rights Agreement” means the Notes Registration Rights Agreement, dated February 9, 2005, among the Company, the Guarantors, Morgan Stanley & Co. Incorporated, Lehman Brothers Inc. and Wachovia Capital
Markets, LLC and certain permitted assigns specified therein. 
  
 “Obligor” means a Person obligated as an issuer or guarantor of the Notes. 
  
 “Offer to Purchase” means an offer to purchase Notes by the Company from the Holders commenced by mailing a notice to the Trustee and each Holder stating: (i) the covenant pursuant to which the offer is
being made and that all Notes validly tendered will be accepted for payment on a pro rata basis; (ii) the purchase price and the date of purchase (which shall be a Business Day no earlier than 30 days nor later than 60 days from the date such notice
is mailed) (the “Payment Date”); (iii) that any Note not tendered will continue to accrue interest pursuant to its terms; (iv) that, unless the Company defaults in the payment of the purchase price, any Note accepted for payment pursuant
to the Offer to Purchase shall cease to accrue interest on and after the Payment Date; (v) that Holders electing to have a Note purchased pursuant to the Offer to Purchase will be required to surrender the Note, together with the form entitled
“Option of the Holder to Elect Purchase” on the reverse side of the Note completed, to the Paying Agent at the address specified in the notice prior to the close of business on the Business Day immediately preceding the Payment Date; (vi)
that Holders will be entitled to withdraw their election if the Paying Agent receives, not later than the close of business on the third Business Day immediately preceding the Payment Date, a telegram, facsimile transmission or letter setting forth
the name of such Holder, the principal amount of Notes delivered for purchase and a statement that such Holder is withdrawing his election to have such Notes purchased; (vii) that Holders whose Notes are being purchased only in part will be issued
new Notes equal in principal amount to the unpurchased portion of the Notes surrendered; provided that each Note purchased and each new Note issued shall be in a principal amount of $1,000 or an integral multiple thereof; and (viii) in the
event of an Offer to Purchase as a result of the occurrence of a Change of Control Triggering Event exclusively, the circumstances and relevant facts regarding such Change of Control Triggering Event, including information with respect to pro forma
historical income, cash flow and capitalization, after giving effect to the Change of Control Triggering Event. On the Payment Date, the Company shall (i) accept for payment on a pro rata 

  

 12 

 
basis Notes or portions thereof tendered pursuant to an Offer to Purchase; (ii) deposit with the Paying Agent money sufficient to pay the purchase price of
all Notes or portions thereof so accepted; and (iii) deliver, or cause to be delivered, to the Trustee all Notes or portions thereof so accepted together with an Officers’ Certificate specifying the Notes or portions thereof accepted for
payment by the Company. The Paying Agent shall promptly mail to the Holders of Notes so accepted payment in an amount equal to the purchase price, and the Trustee shall promptly authenticate and mail to such Holders a new Note equal in principal
amount to any unpurchased portion of the Note surrendered; provided that each Note purchased and each new Note issued shall be in a principal amount of $1,000 or an integral multiple thereof. The Company will publicly announce the results of
an Offer to Purchase as soon as practicable after the Payment Date. The Trustee shall act as the Paying Agent for an Offer to Purchase. The Company will comply with Rule 14e-1 under the Exchange Act and any other securities laws and regulations
thereunder to the extent such laws and regulations are applicable, in the event that the Company is required to repurchase Notes pursuant to an Offer to Purchase. 
  
 “Officer” means, with respect to the Company or the Parent Guarantor, as the case may be, (i) the Chairman of the
Board, the Chief Executive Officer, the President, any Vice President or the Chief Financial Officer, and (ii) the Treasurer or any Assistant Treasurer, or the Secretary or any Assistant Secretary. 
  
 “Officers’ Certificate” means a certificate signed by one
Officer listed in clause (i) of the definition thereof and one Officer listed in clause (ii) of the definition thereof or two Officers listed in clause (i) of the definition thereof. Each Officers’ Certificate (other than certificates provided
pursuant to TIA Section 314(a)(4)) shall include the statements provided for in Section 11.04. 
  
 “Offshore Global Note” has the meaning provided in Section 2.01. 
  
 “Offshore Physical Note” has the meaning provided in Section 2.01. 
  
 “Opinion of Counsel” means a written opinion signed by legal counsel, who may be an employee of or counsel to the
Company, that meets the requirements of Section 11.04 hereof. 
  
 “Parent Guarantee” means the Guarantee by the Parent Guarantor of the Company’s obligations under this Indenture pursuant to Article Ten. 
  
 “Paying Agent” has the meaning provided in Section 2.04, except that, for the purposes of Article Eight, the
Paying Agent shall not be the Company or a Subsidiary of the Company or an Affiliate of any of them. The term “Paying Agent” includes any additional Paying Agent. 
  
 “Payment Date” has the meaning provided in the definition of Offer to Purchase. 
  
 “Permanent Offshore Global Note” has the meaning provided in
Section 2.01. 
  
 “Permitted Investment” means (i) an
Investment in the Company, the Parent Guarantor or a Restricted Subsidiary or a Person which will, upon the making of such 

  

 13 

 
Investment, become a Restricted Subsidiary or be merged or consolidated with or into, or transfer or convey all or substantially all its assets to, the
Company, the Parent Guarantor or a Restricted Subsidiary; provided that such Person’s primary business is related, ancillary or complementary to the businesses of the Company, the Parent Guarantor and the Restricted Subsidiaries on the
date of such Investment; (ii) Temporary Cash Investments; (iii) payroll, travel and similar advances to cover matters that are expected at the time of such advances ultimately to be treated as expenses in accordance with GAAP; (iv) stock,
obligations or securities received in settlement of Indebtedness Incurred in the ordinary course of business, upon foreclosure of a Lien created in the ordinary course of business or in satisfaction of judgments, including in connection with a
bankruptcy proceeding; (v) Investments in prepaid expenses, negotiable instruments held for collection and lease, utility and workers’ compensation, performance and other similar deposits; (vi) Interest Rate Agreements and Currency Agreements
designed solely to protect the Company, the Parent Guarantor or any Restricted Subsidiary against fluctuations in interest rates or foreign currency exchange rates; (vii) loans or advances to officers or employees of the Company, the Parent
Guarantor or any Restricted Subsidiary that do not in the aggregate exceed $2 million at any time outstanding; and (viii) Investments in any Person that is engaged in the telecommunications business and that is not an Affiliate or a Related Person
of the Company or the Parent Guarantor. 
  
 “Permitted
Liens” means (i) Liens to secure Indebtedness permitted under clauses (i) and (xi) of Section 4.03(b); (ii) Liens for taxes, assessments, governmental charges or claims that are being contested in good faith by appropriate legal proceedings
promptly instituted and diligently conducted and for which a reserve or other appropriate provision, if any, as shall be required in conformity with GAAP shall have been made; (iii) statutory and common law Liens of landlords and carriers,
warehousemen, mechanics, suppliers, materialmen, repairmen or other similar Liens arising in the ordinary course of business and with respect to amounts not yet delinquent or being contested in good faith by appropriate legal proceedings promptly
instituted and diligently conducted and for which a reserve or other appropriate provision, if any, as shall be required in conformity with GAAP shall have been made; (iv) Liens incurred or deposits made in the ordinary course of business in
connection with workers’ compensation, unemployment insurance and other types of social security; (v) Liens incurred or deposits made to secure the performance of tenders, bids, leases, statutory or regulatory obligations, bankers’
acceptances, surety and appeal bonds, government contracts, performance and return-of-money bonds and other obligations of a similar nature incurred in the ordinary course of business (exclusive of obligations for the payment of borrowed money);
(vi) easements, rights-of-way, municipal and zoning ordinances and similar charges, encumbrances, title defects or other irregularities that do not materially interfere with the business of the Company, the Parent Guarantor and the Restricted
Subsidiaries, taken as a whole; (vii) Liens (including extensions and renewals thereof) upon real or personal property acquired after February 20, 2004; provided, however, that (a) such Lien is created solely for the purpose of
securing Indebtedness Incurred, in accordance with Section 4.03, to finance the cost (including the cost of design, development, acquisition, construction, installation, improvement, transportation or integration and all transaction costs related to
the foregoing) of the item of property or assets subject thereto and such Lien is created prior to, at the time of or within six months after the later of the acquisition, the completion of construction or the commencement of full operation of such
property, (b) the principal amount of the Indebtedness secured by such Lien does not exceed 100% of such cost and (c) any such Lien shall not extend to or cover any property or assets other than such item of 

  

 14 

 
property or assets and any improvements on such item; (viii) leases or subleases granted to others that do not materially interfere with the ordinary course
of business of the Company, the Parent Guarantor and the Restricted Subsidiaries, taken as a whole; (ix) Liens encumbering property or assets under construction arising from progress or partial payments by a customer of the Company, the Parent
Guarantor or the Restricted Subsidiaries relating to such property or assets; (x) any interest or title of a lessor in the property subject to any Capitalized Lease or operating lease; (xi) Liens arising from filing Uniform Commercial Code financing
statements regarding leases; (xii) Liens on property of, or on shares of Capital Stock or Indebtedness of, any Person existing at the time such Person becomes, or becomes a part of, any Restricted Subsidiary; provided that such Liens do not
extend to or cover any property or assets of the Company, the Parent Guarantor or any Restricted Subsidiary other than the property or assets acquired; (xiii) Liens in favor of the Company, the Parent Guarantor or any Restricted Subsidiary; (xiv)
Liens arising from the rendering of a final judgment or order against the Company, the Parent Guarantor or any Restricted Subsidiary that does not give rise to an Event of Default; (xv) Liens securing reimbursement obligations with respect to
letters of credit that encumber documents and other property relating to such letters of credit and the products and proceeds thereof; (xvi) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs
duties in connection with the importation of goods; (xvii) Liens encumbering customary initial deposits and margin deposits, and other Liens that are within the general parameters customary in the industry and incurred in the ordinary course of
business, in each case, securing Indebtedness under Interest Rate Agreements and Currency Agreements and forward contracts, options, future contracts, futures options or similar agreements or arrangements designed solely to protect the Company, the
Parent Guarantor or any Restricted Subsidiary from fluctuations in interest rates or foreign currency exchange rates; (xviii) Liens arising out of conditional sale, title retention, consignment or similar arrangements for the sale of goods entered
into by the Company, the Parent Guarantor or any Restricted Subsidiary in the ordinary course of business in accordance with the past practices of the Company, the Parent Guarantor and such Restricted Subsidiary, as applicable, prior to February 20,
2004; (xix) Liens on or sales of receivables; (xx) Liens created for the benefit of, or to secure, the Notes, the Parent Guarantee, the Subsidiary Guarantees, the 2014 Notes, the 2011 Notes, the “Parent Guarantee” under Article Ten of the
2014 Indenture and the 2011 Indenture, as applicable, or the “Subsidiary Guarantees” under Article Ten of the 2014 Indenture and the 2011 Indenture, as applicable (including Liens resulting from the defeasance of the obligations of the
Obligors with respect to the Notes or the obligations of the “Obligors” under the 2014 Indenture and the 2011 Indenture with respect to the 2014 Notes and the 2011 Notes, as applicable; (xxi) Liens that secure Indebtedness with an
aggregate principal amount not in excess of $10 million at any time outstanding; (xxii) Liens existing on February 20, 2004; (xxiii) Liens securing Indebtedness which is Incurred to refinance secured Indebtedness which is permitted to be Incurred
under clause (iii) of Section 4.03(b); provided, however, that such Liens do not extend to or cover any property or assets of the Company, the Parent Guarantor or any Restricted Subsidiary other than the property or assets securing the
Indebtedness being refinanced; (xxiv) Liens on the Capital Stock of, or any property or assets of, a Restricted Subsidiary securing Indebtedness of such Restricted Subsidiary permitted under Section 4.03; and (xxv) Liens on any assets of the
Company, the Parent Guarantor or any Restricted Subsidiary provided that effective provision shall have been made for all the Notes and all other amounts due under this Indenture to be directly secured equally and ratably with (or, if the obligation
or liability to be secured by 

  

 15 

 
such Lien is subordinated in right of payment to the Notes, prior to) the obligation or liability secured by such Liens. 
  
 “Person” means an individual, a corporation, a partnership, a
limited liability company, an association, a trust or any other entity or organization, including a government or political subdivision or an agency or instrumentality thereof. 
  
 “Physical Notes” has the meaning provided in Section 2.01. 
  
 “Preferred Stock” means, with respect to any Person, Capital Stock
issued by such Person that is entitled to preference or priority over one or more series or classes of other capital stock issued by such Person upon any distribution of such Person’s property and assets, whether by dividend or upon
liquidation. 
  
 “principal” of a debt security,
including the Notes, means the principal amount due on the Stated Maturity as shown on such debt security. 
  
 “Private Placement Legend” means the legend initially set forth on the Notes in the form set forth in Section 2.02. 
  
 “QIB” means a “qualified institutional buyer” as defined
in Rule 144A. 
  
 “Rating Agency” means any
internationally recognized rating agency other than S&P or Moody’s. 
  
 “Rating Categories” means (a) with respect to S&P, any of the following categories: BB, B, CCC, CC, C and D (or equivalent successor categories); (b) with respect to Moody’s, any of the following
categories: Ba, B, Caa, Ca, C and D (or equivalent successor categories); and (c) the equivalent of any such category of S&P or Moody’s used by another Rating Agency. In determining whether the rating of the Notes has decreased by one or
more gradations, gradations within Rating Categories (+ and - for S&P; 1, 2 and 3 for Moody’s; or the equivalent gradations for another Rating Agency) shall be taken into account (e.g., with respect to S&P, a decline in a rating
from BB+ to BB, as well as from BB- to B+, will constitute a decrease of one gradation). 
  
 “Rating Decline” means (i) a decrease of one or more gradations (including gradations within Rating Categories as well as between Rating Categories) in the rating of the Notes by both Moody’s and
S&P or (ii) a withdrawal of the rating of the Notes by Moody’s and S&P, in each case, directly as a result of a Change of Control; provided, however, that such decrease or withdrawal occurs on, or within 45 days following,
the date of public notice of the occurrence of a Change of Control or of the intention by the Company, the Parent Guarantor or a stockholder of the Company or the Parent Guarantor, as applicable, to effect a Change of Control, which period shall be
extended so long as the rating of the Notes relating to the Change of Control as noted by the Rating Agency is under publicly announced consideration for downgrade by the applicable Rating Agency. 
  
 “Redemption Date” means, when used with respect to any Note to be
redeemed, the date fixed for such redemption by or pursuant to this Indenture. 
  

 16 

 “Redemption Price” means, when used with respect to any Note to be redeemed, the price at which
such Note is to be redeemed pursuant to this Indenture. 
  
 “Registrar” has the meaning provided in Section 2.04. 
  
 “Registration Statement” means the Registration Statement as defined and described in the Notes Registration Rights Agreement. 
  
 “Regular Record Date” for the interest payable on any Interest Payment Date means the February 1 or August 1
(whether or not a Business Day), as the case may be, next preceding such Interest Payment Date, or in the case of the initial Interest Payment Date, to Holders of record at the close of business on the Closing Date. 
  
 “Regulation S” means Regulation S under the Securities Act.

  
 “Related Person” means, as applied to any Person,
any other Person directly or indirectly owning (a) 10% or more of the outstanding Common Stock of such Person (or, in the case of a Person that is not a corporation, 10% or more of the outstanding equity interest in such Person) or (b) 10% or more
of the combined outstanding voting power of the Voting Stock of such Person, and all Affiliates of any such other Person. 
  
 “Responsible Officer,” when used with respect to the Trustee, means any officer of the Trustee with direct responsibility for the administration
of this Indenture and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his or her knowledge of and familiarity with the particular subject. 
  
 “Restricted Payments” has the meaning provided in Section 4.04.

  
 “Restricted Subsidiary” means any Subsidiary of the
Company or the Parent Guarantor other than an Unrestricted Subsidiary. 
  
 “Rule 144A” means Rule 144A under the Securities Act. 
  
 “Securities Act” means the Securities Act of 1933, as amended. 
  
 “Security Register” has the meaning provided in Section 2.04. 
  
 “Shelf Registration Statement” means the Shelf Registration Statement as defined in the Notes Registration Rights
Agreement. 
  
 “Significant Subsidiary” means, at any
date of determination, any Restricted Subsidiary that, together with its Subsidiaries, (i) for the most recent fiscal year of the Parent Guarantor, accounted for more than 10% of the consolidated revenues of the Parent Guarantor and its Restricted
Subsidiaries or (ii) as of the end of such fiscal year, was the owner of more than 10% of the consolidated assets of the Parent Guarantor and its Restricted Subsidiaries, all as set forth on the most recently available consolidated financial
statements of the Parent Guarantor for such fiscal year. 
  

 17 

 “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, and its successors. 
  
 “Specified Date”
means any Redemption Date, any Payment Date for an Offer to Purchase or any date on which the Notes first become due and payable after an Event of Default. 
  
 “Stated Maturity” means, (i) with respect to the any debt securities, the date specified in such debt securities as the fixed date on which the
final installment of principal of such debt securities is due and payable, and (ii) with respect to any scheduled installment of principal of or interest on any debt securities, the date specified in such debt securities as the fixed date on which
such installment is due and payable. 
  
 “Strategic
Subordinated Indebtedness” means Indebtedness of the Company or the Parent Guarantor Incurred to finance the acquisition of a Person engaged in a business that is related, ancillary or complementary to the business conducted by the Company, the
Parent Guarantor or any Restricted Subsidiary, which Indebtedness by its terms, or by the terms of any agreement or instrument pursuant to which such Indebtedness is Incurred, (i) is expressly made subordinate in right of payment to the Notes or the
Parent Guarantee, as applicable, and (ii) in the case of Indebtedness incurred by the Company, provides that no payment of principal, premium or interest on, or any other payment with respect to, such Indebtedness may be made prior to the payment in
full of all of the Company’s obligations under the Notes; provided that such Indebtedness may provide for and be repaid at any time from the proceeds of the sale of Capital Stock of the Company or the Parent Guarantor (other than
Disqualified Stock) or other Indebtedness of the Company or the Parent Guarantor which by its terms, or by the terms of any agreement or instrument pursuant to which such other Indebtedness is Incurred, meets clauses (i) and (ii) above after the
Incurrence of such Indebtedness. 
  
 “Subsidiary” means,
with respect to any Person, any corporation, association or other business entity of which more than 50% of the voting power of the outstanding Voting Stock is owned, directly or indirectly, by such Person and/or one or more other Subsidiaries of
such Person. 
  
 “Subsidiary Guarantee” means the
Guarantee by each Subsidiary Guarantor of the Company’s obligations under this Indenture pursuant to Article Ten. 
  
 “Subsidiary Guarantor” means each Domestic Restricted Subsidiary (other than the Company) and any other Person that becomes a Subsidiary
Guarantor pursuant to Section 4.20; provided, however, that the following Subsidiaries shall not be Subsidiary Guarantors: 
  
 (1) Subsidiaries, whether now existing or hereafter formed, for which proper regulatory approvals for the incurrence of obligations under
the related Subsidiary Guarantees have not been or cannot be obtained; 
  
 (2) Subsidiaries, in the aggregate, whose assets are less than 5% of the consolidated assets of the Parent Guarantor and its consolidated Subsidiaries (including the Company) as shown on the most recent consolidated
financial statements of the Parent Guarantor; and 
  

 18 

 (3) Subsidiaries whose capital stock or substantially all of whose assets have been
permissively disposed of under the terms of the “Priority Lien Documents” (as defined in Section 1.01 of the 2011 Indenture). 
  
 “Temporary Cash Investment” means any of the following: (i) direct obligations of the United States of America or any agency thereof or
obligations fully and unconditionally guaranteed by the United States of America or any agency thereof, (ii) time deposit accounts, certificates of deposit and money market deposits maturing within one year of the date of acquisition thereof issued
by a bank or trust company which is organized under the laws of the United States of America, any state thereof or any foreign country recognized by the United States of America, and which bank or trust company has capital, surplus and undivided
profits aggregating in excess of $500 million (or the foreign currency equivalent thereof) and has outstanding debt which is rated “A” (or such similar equivalent rating) or higher by at least one nationally recognized statistical rating
organization (as defined in Rule 436 under the Securities Act) or any money market fund sponsored by a registered broker dealer or mutual fund distributor, (iii) repurchase obligations with a term of not more than 30 days for underlying securities
of the types described in clause (i) above entered into with a bank meeting the qualifications described in clause (ii) above, (iv) commercial paper, maturing not more than one year after the date of acquisition, issued by a corporation (other than
an Affiliate of the Parent Guarantor) organized and in existence under the laws of the United States of America, any state thereof or any foreign country recognized by the United States of America with a rating at the time as of which any Investment
therein is made of “P-1” (or higher) according to Moody’s or “A-1” (or higher) according to S&P, (v) securities with maturities of six months or less from the date of acquisition issued or fully and unconditionally
guaranteed by any state, commonwealth or territory of the United States of America, or by any political subdivision or taxing authority thereof, and rated at least “A” by S&P or Moody’s, (vi) corporate debt securities with
maturities of eighteen months or less from the date of acquisition and with a rating at the time as of which any Investment therein is made of “A3” (or higher) according to Moody’s or “A-” (or higher) according to S&P;
(vii) securities with maturities of six months or less from the date of acquisition backed by standby letters of credit issued by any commercial bank organized under the laws of the United States or any state thereof and having a combined capital
and surplus of not less than $500 million; and (viii) money market funds sponsored by a registered broker dealer or mutual fund distributor at least 95% of the assets of which are invested in the foregoing. 
  
 “Temporary Offshore Global Note” has the meaning provided in
Section 2.01. 
  
 “TIA” or “Trust Indenture
Act” means the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb), as in effect on the date this Indenture was executed, except as provided in Section 9.06; provided, however, that, in the event the Trust
Indenture Act of 1939 is amended after such date, “Trust Indenture Act” or “TIA” means, to the extent required by any such amendment, the Trust Indenture Act of 1939 as so amended. 
  
 “Trade Payables” means, with respect to any Person, any accounts
payable or any other Indebtedness or monetary obligation to trade creditors created, assumed or Guaranteed by such Person or any of its Subsidiaries arising in the ordinary course of business in connection with the acquisition of goods or services.

  

 19 

 “Transaction Date” means, with respect to the Incurrence of any Indebtedness by the Parent
Guarantor or the Company, the date such Indebtedness is to be Incurred and, with respect to any Restricted Payment, the date such Restricted Payment is to be made. 
  
 “Trustee” means the party named as such in the first paragraph of this Indenture until a successor replaces it in
accordance with the provisions of Article Seven of this Indenture and thereafter means such successor. 
  
 “United States Bankruptcy Code” means the Bankruptcy Reform Act of 1978, as amended and as codified in Title 11 of the United States Code, as
amended from time to time hereafter, or any successor federal bankruptcy law. 
  
 “Unrestricted Subsidiary” means (i) any Subsidiary of the Company or the Parent Guarantor (other than a Subsidiary that is the Company) that at the time of determination shall be designated an Unrestricted
Subsidiary by the Board of Directors of the Company or the Parent Guarantor, as applicable, in the manner provided below; and (ii) any Subsidiary of an Unrestricted Subsidiary. The Board of Directors of the Company or the Parent Guarantor may
designate any Restricted Subsidiary (including any newly acquired or newly formed Subsidiary but excluding, in the case of any such designation by the Parent Guarantor, the Company) of the Company or the Parent Guarantor, as applicable, to be an
Unrestricted Subsidiary unless such Subsidiary owns any Capital Stock of, or owns or holds any Lien on any property of, the Company or the Parent Guarantor, as applicable, or any Restricted Subsidiary of the Company or the Parent Guarantor, as
applicable; provided, however, that (A) any Guarantee by the Company or the Parent Guarantor or any Restricted Subsidiary of any Indebtedness of the Subsidiary being so designated shall be deemed an “Incurrence” of such
Indebtedness and an “Investment” by the Company, Parent Guarantor or such Restricted Subsidiary at the time of such designation; (B) either (i) the Subsidiary to be so designated has total assets of $1,000 or less or (ii) if such
Subsidiary has assets greater than $1,000, such designation would be permitted under Section 4.04 and (C) if applicable, the Incurrence of Indebtedness and the Investment referred to in clause (A) of this proviso would be permitted under Section
4.03 and Section 4.04. The Board of Directors of the Company or the Parent Guarantor may designate any Unrestricted Subsidiary of the Company or the Parent Guarantor, as applicable, to be a Restricted Subsidiary; provided, however,
that (1) no Default or Event of Default shall have occurred and be continuing at the time of or after giving effect to such designation and (2) all Liens and Indebtedness of such Unrestricted Subsidiary outstanding immediately after such designation
would, if Incurred at such time, have been permitted to be Incurred (and shall be deemed to have been Incurred) for all purposes of this Indenture. Any such designation by the Board of Directors of the Company or the Parent Guarantor shall be
evidenced to the Trustee by promptly filing with the Trustee a copy of the Board Resolution giving effect to such designation and an Officers’ Certificate certifying that such designation complied with the foregoing provisions. 
  
 “U.S. Global Note” has the meaning provided in Section 2.01.

  
 “U.S. Government Obligations” means securities that
are (i) direct obligations of the United States of America for the payment of which its full faith and credit is pledged or (ii) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of
America the payment of which is unconditionally guaranteed as a full 

  

 20 

 
faith and credit obligation by the United States of America, which, in either case, are not callable or redeemable at the option of the issuer thereof at any
time prior to the Stated Maturity of the Notes, and shall also include a depository receipt issued by a bank or trust company as custodian with respect to any such U.S. Government Obligation or a specific payment of interest on or principal of any
such U.S. Government Obligation held by such custodian for the account of the holder of a depository receipt; provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the
holder of such depository receipt from any amount received by the custodian in respect of such U.S. Government Obligation or the specific payment of interest on or principal of such U.S. Government Obligation evidenced by such depository receipt.

  
 “U.S. Physical Notes” has the meaning provided in
Section 2.01. 
  
 “Voting Stock” means, with respect to
any Person, Capital Stock of any class or kind ordinarily having the power to vote for the election of directors, managers or other voting members of the governing body of such Person. 
  
 “Wholly Owned” means, with respect to any Subsidiary of any Person, the ownership of all of the outstanding
Capital Stock of such Subsidiary (other than any director’s qualifying shares or Investments by foreign nationals mandated by applicable law) by such Person or one or more Wholly Owned Subsidiaries of such Person or any combination thereof.

  
 SECTION 1.02. 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 terms used in this Indenture have the following meanings: 
  
 “indenture securities” means the Notes; 
  
 “indenture security holder” means a Holder or a Noteholder;

  
 “indenture to be qualified” means this Indenture;

  
 “indenture trustee” or “institutional
trustee” means the Trustee; and 
  
 All other TIA terms used
in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by a rule of the Commission and not otherwise defined herein have the meanings assigned to them therein. 
  
 SECTION 1.03. Rules of Construction. Unless the context otherwise
requires: 
  
 (i) a term has the meaning assigned to it;

  
 (ii) an accounting term not otherwise defined has the meaning
assigned to it in accordance with GAAP; 
  
 (iii) “or”
is not exclusive; 
  

 21 

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

 
 (v) provisions apply to successive events and transactions; 
  
 (vi) “herein,” “hereof” and other words of similar import
refer to this Indenture as a whole and not to any particular Article, Section or other subdivision; 
  
 (vii) all ratios and computations based on GAAP contained in this Indenture shall be computed in accordance with the definition of GAAP set forth in
Section 1.01; and 
  
 (viii) all references to Sections or
Articles and other subdivisions refer to Sections or Articles and other subdivisions of this Indenture unless otherwise indicated. 
  
 ARTICLE TWO 
 THE NOTES 
  
 SECTION 2.01. Form and Dating. The Notes and the Trustee’s
certificate of authentication shall be substantially in the form annexed hereto as Exhibit A with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture. The Notes may have
notations, legends or endorsements required by law, stock exchange agreements to which the Company is subject or usage. The Company shall approve the form of the Notes and any notation, legend or endorsement on the Notes. Each Note shall be dated
the date of its authentication. 
  
 The terms and provisions
contained in the form of the Notes annexed hereto as Exhibit A shall constitute, and are hereby expressly made, a part of this Indenture. To the extent applicable, the Company and the Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound thereby. 
  
 Notes offered and sold in reliance on Rule 144A shall be issued initially in the form of one or more permanent global Notes in registered form, substantially in the form set forth in Exhibit A (collectively, the “U.S. Global
Notes”), deposited with the Trustee, as custodian for the Depositary, duly executed by the Company and authenticated by the Trustee as hereinafter provided. The aggregate principal amount of the U.S. Global Notes may from time to time be
increased or decreased by adjustments made on the records of the Trustee, as custodian for the Depositary or its nominee, as hereinafter provided. 
  
 Notes offered and sold in offshore transactions in reliance on Regulation S shall be issued initially in the form of one or more temporary Global Notes in
registered form substantially in the form set forth in Exhibit A (the “Temporary Offshore Global Notes”) deposited with the Trustee, as custodian for the Depositary, duly executed by the Company and authenticated by the Trustee as
hereinafter provided. On or after March 21, 2005, upon receipt by the Trustee and the Company of a certificate substantially in the form of Exhibit B hereto, one or more permanent Global Notes in registered form substantially in the form set forth
in Exhibit A (the “Permanent Offshore Global Notes”; and together with the Temporary Offshore Global Notes, the “Offshore Global Notes”) duly executed by the Company and authenticated by the 

  

 22 

 
Trustee as hereinafter provided shall be deposited with the Trustee, as custodian for the Depositary, and the Registrar shall reflect on its books and
records the date and a decrease in the principal amount of the Temporary Offshore Global Notes in an amount equal to the principal amount of the beneficial interest in the Temporary Offshore Global Notes transferred. 
  
 Notes offered and sold in reliance on Regulation D under the Securities Act
shall be issued in the form of permanent certificated Notes in registered form in substantially the form set forth in Exhibit A (the “U.S. Physical Notes”). Notes issued pursuant to Section 2.07 in exchange for interests in the
Offshore Global Note shall be in the form of permanent certificated Notes in registered form substantially in the form set forth in Exhibit A (the “Offshore Physical Notes”). 
  
 The Offshore Physical Notes and U.S. Physical Notes are sometimes
collectively herein referred to as the “Physical Notes”. The U.S. Global Notes and the Offshore Global Notes are sometimes referred to herein as the “Global Notes”. 
  
 The definitive Notes shall be typed, printed, lithographed or engraved or
produced by any combination of these methods or may be produced in any other manner permitted by the rules of any securities exchange on which the Notes may be listed, all as determined by the Officers executing such Notes, as evidenced by their
execution of such Notes. 
  
 SECTION 2.02. Restrictive
Legends. Unless and until a Note is exchanged for an Exchange Note or sold in connection with an effective Registration Statement pursuant to the Notes Registration Rights Agreement, the U.S. Global Notes, Temporary Offshore Global Notes and
each U.S. Physical Note shall bear the following legend on the face thereof: 
  
 “THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHIN THE
UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS, EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE HOLDER (1) REPRESENTS THAT (A) IT IS A “QUALIFIED
INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) (A “QIB”), (B) IT IS NOT A U.S. PERSON, IS NOT ACQUIRING THIS NOTE FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON AND IS ACQUIRING THIS NOTE IN AN OFFSHORE
TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT OR (C) IT IS AN INSTITUTIONAL “ACCREDITED INVESTOR” (AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT) (AN “IAI”),
(2) AGREES THAT IT WILL NOT, WITHIN THE TIME PERIOD REFERRED TO UNDER RULE 144(k) (TAKING INTO ACCOUNT THE PROVISIONS OF RULE 144(d) UNDER THE SECURITIES ACT, IF APPLICABLE) UNDER THE SECURITIES ACT AS IN EFFECT ON THE DATE OF THE TRANSFER OF THIS
NOTE, RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO TIME WARNER TELECOM 

  

 23 

 
HOLDINGS INC. OR ANY SUBSIDIARY THEREOF, (B) TO A PERSON WHOM THE HOLDER REASONABLY BELIEVES IS A QIB PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QIB IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT, (D) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE
SECURITIES ACT (IF AVAILABLE), (E) TO AN IAI THAT, PRIOR TO SUCH TRANSFER, FURNISHES TO THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE REGISTRATION OF TRANSFER OF THIS NOTE (THE FORM OF WHICH LETTER CAN
BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF NOTES AT THE TIME OF TRANSFER OF LESS THAN $250,000, AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE
SECURITIES ACT OR (F) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, AND (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE OR AN
INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN CONNECTION WITH ANY TRANSFER OF THIS NOTE OR ANY INTEREST HEREIN WITHIN THE TIME PERIOD REFERRED TO ABOVE, THE HOLDER MUST CHECK THE APPROPRIATE BOX SET FORTH ON
THE REVERSE HEREOF RELATING TO THE MANNER OF SUCH TRANSFER AND SUBMIT THIS CERTIFICATE TO THE TRUSTEE. AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANINGS GIVEN TO THEM
BY RULE 902 OF REGULATION S UNDER THE SECURITIES ACT. THE INDENTURE CONTAINS A PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE IN VIOLATION OF THE FOREGOING RESTRICTIONS”. 
  
 Each Global Note shall also bear the following legend on the face thereof:

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

  

 24 

 
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY
OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
 TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTION 2.08 OF THE INDENTURE.” 
  
 SECTION 2.03. Execution, Authentication and Denominations. Subject to
Article Four and applicable law, the aggregate principal amount of Notes which may be authenticated and delivered under this Indenture is unlimited. The Notes shall be executed by an Officer of the Company. The signature of these Officers on the
Notes may be by facsimile or manual signature in the name and on behalf of the Company. 
  
 If an Officer whose signature is on a Note no longer holds that office at the time the Trustee or authenticating agent authenticates the Note, the Note shall be valid nevertheless. 
  
 A Note shall not be valid until the Trustee or authenticating agent manually
signs the certificate of authentication on the Note. The signature shall be conclusive evidence that the Note has been authenticated under this Indenture. 
  
 At any time and from time to time after the execution of this Indenture, the Trustee or an authenticating agent shall upon receipt of a Company Order
authenticate for original issue Global Notes in the aggregate principal amount specified in such Company Order; provided that the Trustee shall be entitled to receive an Officers’ Certificate and an Opinion of Counsel of the Company in
connection with such authentication of Notes. Such Company Order shall specify the amount of Global Notes to be authenticated and the date on which the original issue of Notes is to be authenticated and, in case of an issuance of Notes pursuant to
Section 2.15, shall certify that such issuance is in compliance with Article Four. 
  
 The Trustee may appoint an authenticating agent to authenticate Notes. An authenticating agent may authenticate Notes whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee
includes authentication by such authenticating agent. An authenticating agent has the same rights as an Agent to deal with the Company or an Affiliate of the Company. 
  
 The Notes shall be issuable only in registered form without coupons and only in denominations of $1,000 in principal amount
or any integral multiple thereof. 
  
 SECTION 2.04. Registrar
and Paying Agent. The Company shall maintain an office or agency where Notes may be presented for registration of transfer or for exchange (the “Registrar”), an office or agency where Notes may be presented for payment (the
“Paying Agent”) and an office or agency where notices and demands to or upon the Company in respect 

  

 25 

 
of the Notes and this Indenture may be served, which shall be in the Borough of Manhattan, The City of New York. The Company shall cause the Registrar to
keep a register of the Notes and of their transfer and exchange (the “Security Register”). The Security Register shall be in written form or any other form capable of being converted into written form within a reasonable time. The
Company may have one or more co-Registrars and one or more additional Paying Agents. 
  
 The Company shall enter into an appropriate agency agreement with any Agent not a party to this Indenture. The agreement shall implement the provisions of this Indenture that relate to such Agent. The Company shall
give prompt written notice to the Trustee of the name and address of any such Agent and any change in the address of such Agent. If the Company fails to maintain a Registrar, Paying Agent and/or agent for service of notices and demands, the Trustee
shall act as such Registrar, Paying Agent and/or agent for service of notices and demands. The Company may remove any Agent upon written notice to such Agent and the Trustee; provided that no such removal shall become effective until (i) the
acceptance of an appointment by a successor Agent to such Agent as evidenced by an appropriate agency agreement entered into by the Company and such successor Agent and delivered to the Trustee or (ii) notification to the Trustee that the Trustee
shall serve as such Agent until the appointment of a successor Agent in accordance with clause (i) of this proviso. The Company or any Affiliate of the Company may act as Paying Agent, Registrar or co-Registrar, and/or agent for service of notice
and demands. 
  
 The Company initially appoints the Trustee as
Registrar, Paying Agent, and agent for service of notice and demands. The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Holders and shall otherwise comply
with TIA § 312(a). If the Trustee is not the Registrar, the Company shall furnish to the Trustee as of each Regular Record Date and at such other times as the Trustee may reasonably request the names and addresses of Holders as they appear in
the Security Register, including the aggregate principal amount of Notes held by each Holder. At the option of the Company, payment of principal and interest may be made by check mailed to the address of the Holders as such address appears in the
Security Register. 
  
 SECTION 2.05. Paying Agent to Hold Money
in Trust. Not later than 11:00 a.m. (New York City time) on each due date of the principal, premium, if any, and interest on any Notes, the Company shall deposit with the Paying Agent money in immediately available funds sufficient to pay such
principal, premium, if any, and interest so becoming due. The Company shall require each Paying Agent other than the Trustee to agree in writing that such 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 of, premium, if any, and interest on the Notes (whether such money has been paid to it by the Company or any other obligor on the Notes), and such Paying Agent shall promptly notify the Trustee of any
default by the Company (or any other obligor on the Notes) in making any such payment. The Company at any time may require a Paying Agent to pay all money held by it to the Trustee and account for any funds disbursed, and the Trustee may at any time
during the continuance of any payment default, upon written request to a Paying Agent, require such Paying Agent to pay all money held by it to the Trustee and to account for any funds disbursed. Upon doing so, the Paying Agent shall have no further
liability for the money so paid over to the Trustee. If the Company or any Affiliate of the Company acts as Paying Agent, it will, on or before each due date of any principal of, premium, 

  

 26 

 
if any, or interest on the Notes, segregate and hold in a separate trust fund for the benefit of the Holders a sum of money sufficient to pay such principal,
premium, if any, or interest so becoming due until such sum of money shall be paid to such Holders or otherwise disposed of as provided in this Indenture, and will promptly notify the Trustee of its action or failure to act. 
  
 SECTION 2.06. Transfer and Exchange. A Holder may transfer a Note only
by written application to the Registrar stating the name of the proposed transferee and otherwise complying with the terms of this Indenture. No such registration of transfer shall be effected until, and such transferee shall succeed to the rights
of a Holder only upon, final acceptance and registration of the transfer by the Registrar in the Security Register. Prior to the registration of any transfer by a Holder as provided herein, the Company, the Trustee, and any agent of the Company
shall treat the person in whose name the Note is registered as the owner thereof for all purposes whether or not the Note shall be overdue, and neither the Company, the Trustee, nor any such agent shall be affected by notice to the contrary.
Furthermore, any Holder of a Global Note shall, by acceptance of such Global Note, agree that transfers of beneficial interests in such Global Note may be effected only through a book entry system maintained by the Holder of such Global Note (or its
agent) and that ownership of a beneficial interest in the Note shall be required to be reflected in a book entry. When Notes are presented to the Registrar or a co-Registrar with a request to register the transfer or to exchange them for an equal
principal amount of Notes of other authorized denominations (including an exchange of Notes for Exchange Notes), the Registrar shall register the transfer or make the exchange as requested if its requirements for such transactions are met (including
that such Notes are duly endorsed or accompanied by a written instrument of transfer in form satisfactory to the Trustee and Registrar duly executed by the Holder thereof or by an attorney who is authorized in writing to act on behalf of the
Holder); provided that no exchanges of Notes for Exchange Notes shall occur until a Registration Statement shall have been declared effective by the Commission and that any Notes that are exchanged for Exchange Notes shall be cancelled by the
Trustee. To permit registrations of transfers and exchanges, the Company shall execute and the Trustee shall authenticate Notes at the Registrar’s request. No service charge shall be made for any registration of transfer or exchange or
redemption of the Notes, but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer taxes or other similar governmental charge
payable upon exchanges pursuant to Section 2.11, 3.08 or 9.04). 
  
 The Registrar shall not be required (i) to issue, register the transfer of or exchange any Note during a period beginning at the opening of business 15 days before the day of the mailing of a notice of redemption of Notes selected for
redemption under Section 3.03 and ending at the close of business on the day of such mailing, or (ii) to register the transfer of or exchange any Note so selected for redemption in whole or in part, except the unredeemed portion of any Note being
redeemed in part. 
  
 SECTION 2.07. Book-Entry Provisions for
Global Notes. (a) The U.S. Global Note and Offshore Global Note initially 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 custodian for such
Depositary and (iii) bear legends as set forth in Section 2.02. 
  

 27 

 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 in a Global Note may be transferred in accordance with the rules and procedures of the Depositary and the provisions of
Section 2.08. In addition, U.S. Physical Notes and Offshore Physical Notes shall be transferred to all beneficial owners in exchange for their beneficial interests in the U.S. Global Note or the Offshore Global Note, respectively, (i) (A) if the
Depositary notifies the Company that it is unwilling or unable to continue as Depositary for the U.S. Global Note or the Offshore Global Note, as the case may be, and a successor depositary is not appointed by the Company within 90 days of such
notice, or (B) the Depositary has ceased to be a clearing agency registered under the Exchange Act, (ii) the Company, at its option, notifies the Trustee in writing that it elects to cause the issuance of U.S. Physical Notes and Offshore Physical
Notes, (iii) if an Event of Default has occurred and is continuing and the Registrar has received a request therefor from the Depositary or (iv) in accordance with the rules and procedures of the Depositary and the provisions of Section 2.08.

  
 (c) Any beneficial interest in one of the Global Notes that is
transferred to a person who takes delivery in the form of an interest in the other Global Note will, upon transfer, cease to be an interest in such Global Note and become an interest in the other Global Note and, accordingly, will thereafter be
subject to all transfer restrictions, if any, and other procedures applicable to beneficial interests in such other Global Note for as long as it remains such an interest. 
  
 (d) In connection with any transfer of a portion of the beneficial interests in the U.S. Global Note or Permanent Offshore
Global Note to beneficial owners pursuant to paragraph (b) of this Section, the Registrar shall reflect on its books and records the date and a decrease in the principal amount of the U.S. Global Note or Permanent Offshore Global Note in an amount
equal to the principal amount of the beneficial interest in the U.S. Global Note or Permanent Offshore Global Note to be transferred, and the Company shall execute, and the Trustee shall authenticate and deliver, one or more U.S. Physical Notes or
Offshore Physical Notes, as the case may be, of like tenor and amount. 
  
 (e) In connection with the transfer of the entire U.S. Global Note or Offshore Global Note to beneficial owners pursuant to paragraph (b) of this Section, the U.S. Global Note or Offshore Global Note, as the case may be, shall be deemed to
be surrendered to the Trustee for cancellation, and the Company shall execute, and the Trustee shall authenticate and make available for delivery, to each beneficial owner identified by the Depositary in exchange for its beneficial interest in the
U.S. Global Note or Offshore Global Note, as the case may be, an equal 

  

 28 

 
aggregate principal amount of U.S. Physical Notes or Offshore Physical Notes, as the case may be, of authorized denominations. 
  
 (f) Any U.S. Physical Note delivered in exchange for an interest in the U.S.
Global Note pursuant to paragraph (b), (d) or (e) of this Section shall, except as otherwise provided by paragraph (f) of Section 2.08, bear the legend regarding transfer restrictions applicable to the U.S. Physical Note set forth in Section 2.02.

  
 (g) Any Offshore Physical Note delivered in exchange for an
interest in the Temporary Offshore Global Note pursuant to paragraph (b), (d) or (e) of this Section shall, except as otherwise provided by paragraph (f) of Section 2.08, bear the legend regarding transfer restrictions set forth in Section 2.02.

  
 (h) The registered holder of a Global Note may grant proxies
and otherwise authorize any person, including Agent Members and persons that may hold interests through Agent Members, to take any action which a Holder is entitled to take under this Indenture or the Notes. 
  
 SECTION 2.08. Special Transfer Provisions. Unless and until a Note is
exchanged for an Exchange Note or sold in connection with an effective Registration Statement pursuant to the Notes Registration Rights Agreement, the following provisions shall apply: 
  
 (a) Transfers to Non-QIB Institutional Accredited Investors. The following provisions shall apply
with respect to the registration of any proposed transfer of a Note to any Institutional Accredited Investor which is not a QIB (excluding Non-U.S. Persons): 
  

(i) The Registrar shall register the transfer of any Note, whether or not such Note bears the Private Placement Legend, if (x) the
requested transfer is after the time period referred to in Rule 144(k) (taking into account the provisions of Rule 144(d) under the Securities Act, if applicable) under the Securities Act or (y) the proposed transferee has delivered to the Registrar
(A) a certificate substantially in the form of Exhibit C hereto and (B) if the aggregate principal amount of the Notes at the time of transfer is less than $250,000, an opinion of counsel acceptable to the Company that such transfer is in compliance
with the Securities Act. 
  
 (ii) If the proposed
transferor is an Agent Member holding a beneficial interest in the U.S. Global Note, upon receipt by the Registrar of (x) the documents, if any, required by paragraph (i) and (y) instructions given in accordance with the Depositary’s and the
Registrar’s procedures, the Registrar shall reflect on its books and records the date and a decrease in the principal amount at maturity of the U.S. Global Note in an amount equal to the principal amount at maturity of the beneficial interest
in the U.S. Global Note to be transferred, and the Company shall execute, and the Trustee shall authenticate and make available for delivery, one or more U.S. Physical Certificates of like tenor and amount. 
  

 29 

 (b) Transfers to QIBs. The following provisions shall apply with respect to the
registration of any proposed transfer of a U.S. Physical Note or an interest in the U.S. Global Note to a QIB (excluding Non-U.S. Persons): 
  
 (i) If the Note to be transferred consists of (x) U.S. Physical Notes, the Registrar shall register the transfer if such transfer is being
made by a proposed transferor who has checked the box provided for on the form of Note stating, or has otherwise advised the Company and the Registrar in writing, that the sale has been made in compliance with the provisions of Rule 144A to a
transferee who has signed the certification provided for on the form of Note stating, or has otherwise advised the Company and the Registrar in writing, that it is purchasing the 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 QIB within the meaning of 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 it 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 its foregoing representations in order to claim the exemption from registration provided
by Rule 144A or (y) an interest in the U.S. Global Note, the transfer of such interest may be effected only through the book entry system maintained by the Depositary. 
  
 (ii) If the proposed transferee is an Agent Member, and the Note to be transferred consists of U.S. Physical
Notes, upon receipt by the Registrar of the documents referred to in clause (i) and instructions given in accordance with the Depositary’s and the Registrar’s procedures, the Registrar shall reflect on its books and records the date and an
increase in the principal amount at maturity of the U.S. Global Note in an amount equal to the principal amount at maturity of the U.S. Physical Notes, to be transferred, and the Trustee shall cancel the U.S. Physical Note so transferred.

  
 (c) Transfers of Interests in the
Temporary Offshore Global Note. The following provisions shall apply with respect to registration of any proposed transfer of interests in the Temporary Offshore Global Note: 
  
 (i) The Registrar shall register the transfer of any Note (x) if the proposed transferee is a Non-U.S.
Person and the proposed transferor has delivered to the Registrar a certificate substantially in the form of Exhibit D hereto or (y) if the proposed transferee is a QIB and the proposed transferor has checked the box provided for on the form of Note
stating, or has otherwise advised the Company and the Registrar in writing, that the sale has been made in compliance with the provisions of Rule 144A to a transferee who has signed the certification provided for on the form of Note stating, or has
otherwise advised the Company and the Registrar in writing, that it is purchasing the 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 QIB within the meaning
of Rule 144A, and is aware that the sale to it is being made in reliance on Rule 144A and acknowledges 

  

 30 

 
that it has received such information regarding the Company as it 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 its foregoing representations in order to claim the exemption from registration provided by Rule 144A. 
  
 (ii) If the proposed transferee is an Agent Member, upon receipt by the Registrar of the documents referred to in clause (i)(y) above and
instructions given in accordance with the Depositary’s and the Registrar’s procedures, the Registrar shall reflect on its books and records the date and an increase in the principal amount at maturity of the U.S. Global Note, in an amount
equal to the principal amount at maturity of the Temporary Offshore Global Note to be transferred, and the Trustee shall decrease the amount of the Temporary Offshore Global Note in such an amount. 
  
 (d) Transfers of Interests in the Permanent Offshore
Global Note or Unlegended Offshore Physical Notes. The following provisions shall apply with respect to any transfer of interests in the Permanent Offshore Global Note or unlegended Offshore Physical Notes. The Registrar shall register the
transfer of any such Note without requiring any additional certification. 
  
 (e) Transfers to Non-U.S. Persons at Any Time. The following provisions shall apply with respect to any transfer of a Note to a Non-U.S. Person: 
  
 (i) Prior to March 21, 2005, the Registrar shall register any proposed transfer of a Note to a Non-U.S.
Person upon receipt of a certificate substantially in the form of Exhibit D hereto from the proposed transferor. 
  
 (ii) On and after March 21, 2005, the Registrar shall register any proposed transfer to any Non-U.S. Person if the Note to be transferred
is a U.S. Physical Note or an interest in the U.S. Global Note, upon receipt of a certificate substantially in the form of Exhibit D from the proposed transferor. 
  
 (iii) (a) If the proposed transferor is an Agent Member holding a beneficial interest in the U.S. Global
Note, upon receipt by the Registrar of (x) the documents, if any, required by paragraph (ii) and (y) instructions in accordance with the Depositary’s and the Registrar’s procedures, the Registrar shall reflect on its books and records the
date and a decrease in the principal amount at maturity of the U.S. Global Note in an amount equal to the principal amount at maturity of the beneficial interest in the U.S. Global Note to be transferred, and (b) if the proposed transferee is an
Agent Member, upon receipt by the Registrar of instructions given in accordance with the Depositary’s and the Registrar’s procedures, the Registrar shall reflect on its books and records the date and an increase in the principal amount at
maturity of the Offshore Global Note in an amount equal to the principal amount at maturity of the U.S. Physical Notes or the U.S. Global Note, as the case may be, to be transferred, and the Trustee shall cancel the Physical Note, if any, so
transferred or decrease the amount of the U.S. Global Note. 
  

 31 

 (f) Private Placement Legend. Upon the registration of transfer, exchange or
replacement of Notes not bearing the Private Placement Legend, the Registrar shall deliver Notes that do not bear the Private Placement Legend. Upon the registration of transfer, exchange or replacement of Notes bearing the Private Placement Legend,
the Registrar shall deliver only Notes that bear the Private Placement Legend unless either (i) the circumstances contemplated by the second sentence of the fourth paragraph of Section 2.01 or paragraphs (a)(i)(x) or (e)(ii) of this Section 2.08
exist or (ii) there is delivered to the Registrar an Opinion of Counsel reasonably satisfactory to the Company and the Trustee to the effect that neither such legend nor the related restrictions transfer are required in order to maintain compliance
with the provisions of the Securities Act. 
  
 (g) General. By its acceptance of any Note bearing the Private Placement Legend, each Holder of such a Note acknowledges the restrictions on transfer of such Note set forth in this Indenture and in the Private Placement Legend and
agrees that it will transfer such Note only as provided in this Indenture. 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; 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 Section 2.07 or this Section 2.08. The
Company shall have the right to inspect and make copies of all such letters, notices or other written communications at any reasonable time upon the giving of reasonable written notice to the Registrar. 
  
 SECTION 2.09. Replacement Notes. If a mutilated Note is surrendered to
the Trustee or if the Holder claims that the Note has been lost, destroyed or wrongfully taken, then, in the absence of notice to the Company or the Trustee that such Note has been acquired by a protected purchaser, the Company shall issue and the
Trustee shall authenticate a replacement Note of like tenor and principal amount and bearing a number not contemporaneously outstanding; provided that the requirements of this Section 2.09 are met. If required by the Trustee or the Company,
an indemnity bond must be furnished that is sufficient in the judgment of both the Trustee and the Company to protect the Company, the Trustee or any Agent from any loss that any of them may suffer if a Note is replaced. The Company may charge such
Holder for its expenses and the expenses of the Trustee in replacing a Note. In case any such mutilated, lost, destroyed or wrongfully taken Note has become or is about to become due and payable, the Company in its discretion may pay such Note
instead of issuing a new Note in replacement thereof. 
  
 Every replacement Note is an additional obligation of the Company and shall be entitled to the benefits of this Indenture. 
  

 32 

 The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights
and remedies against the Company and the Trustee with respect to the replacement or payment of mutilated, destroyed, lost or wrongfully taken Notes. 
  
 SECTION 2.10. Outstanding Notes. Notes outstanding at any time are all Notes that have been authenticated by the Trustee except for those cancelled
by it, those delivered to it for cancellation and those described in this Section 2.10 as not outstanding. 
  
 If a Note is replaced pursuant to Section 2.09, it ceases to be outstanding unless and until the Trustee and the Company receive proof satisfactory to
them that the replaced Note is held by a protected purchaser. 
  
 If the Paying Agent (other than the Company or an Affiliate of the Company) holds on a maturity date or Redemption Date money sufficient to pay Notes payable on that date, then on and after that date such Notes cease to be outstanding and
interest on them shall cease to accrue. 
  
 A Note does not cease
to be outstanding because the Company or one of its Affiliates holds such Note, provided, however, that in determining whether the Holders of the requisite principal amount of the outstanding Notes have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, Notes owned by the Company or any other obligor upon the Notes or any Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be outstanding, except
that, in determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Notes which the Trustee has actual knowledge to be so owned shall be so disregarded.
Notes so owned which have been pledged in good faith may be regarded as outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Notes and that the pledgee is not the Company
or any other obligor upon the Notes or any Affiliate of the Company or of such other obligor. 
  
 SECTION 2.11. Temporary Notes. Until definitive Notes are ready for delivery, the Company may prepare and execute and the Trustee shall authenticate temporary Notes. Temporary Notes shall be substantially in
the form of definitive Notes but may have insertions, substitutions, omissions and other variations determined to be appropriate by the Officers executing the temporary Notes, as evidenced by their execution of such temporary Notes. If temporary
Notes are issued, the Company will cause definitive Notes to be prepared without unreasonable delay. After the preparation of definitive Notes, the temporary Notes shall be exchangeable for definitive Notes upon surrender of the temporary Notes at
the office or agency of the Company designated for such purpose pursuant to Section 4.02, without charge to the Holder. Upon surrender for cancellation of any one or more temporary Notes the Company shall execute and the Trustee shall authenticate
and deliver in exchange therefor a like principal amount of definitive Notes of authorized denominations. Until so exchanged, the temporary Notes shall be entitled to the same benefits under this Indenture as definitive Notes. 
  
 SECTION 2.12. Cancellation. The Company at any time may deliver to the
Trustee for cancellation any Notes previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and may deliver to the Trustee 

  

 33 

 
for cancellation any Notes previously authenticated hereunder which the Company has not issued and sold. The Registrar and the Paying Agent shall forward to
the Trustee any Notes surrendered to them for registration of transfer, exchange or payment. The Trustee (and no one else) shall cancel all Notes surrendered for registration of transfer, exchange, payment, replacement or cancellation and shall
dispose of them in accordance with its normal procedure. 
  
 SECTION 2.13. CUSIP Numbers. The Company in issuing the Notes may use a “CUSIP” number (if then generally in use), and the Company and the Trustee shall use such “CUSIP” number in notices of redemption or exchange
as a convenience to Holders; provided that any such notice shall state that no representation is made as to the correctness of such CUSIP number either as printed on the Notes or as contained in any notice of redemption or exchange and that
reliance may be placed only on the other identification numbers printed on the Notes; and provided further that failure to use CUSIP numbers in any notice of redemption or exchange shall not affect the validity or sufficiency of such
notice. The Company shall promptly notify the Trustee of any change in “CUSIP” number for the Notes. 
  
 SECTION 2.14. Defaulted Interest. If the Company defaults in a payment of interest on the Notes, it shall pay, or shall deposit with the Paying
Agent money in immediately available funds sufficient to pay, the defaulted interest, plus (to the extent lawful) any interest payable on the defaulted interest, to the Persons who are Holders on a subsequent special record date. A special record
date, as used in this Section 2.14 with respect to the payment of any defaulted interest, shall mean the 15th day next preceding the date fixed by the Company for the payment of defaulted interest, whether or not such day is a Business Day. At least
15 days before the subsequent special record date, the Company shall mail to each Holder and to the Trustee a notice that states the subsequent special record date, the payment date and the amount of defaulted interest to be paid. 
  
 SECTION 2.15. Issuance of Additional Notes. The Company may, subject
to Article Four of this Indenture and applicable law, issue additional Notes under this Indenture. The Notes issued on the Closing Date and any additional Notes subsequently issued under this Indenture shall be treated as a single class for all
purposes under this Indenture. 
  
 ARTICLE THREE 
 REDEMPTION 
  
 SECTION 3.01. Right of Redemption. (a) The Notes are redeemable, at the Company’s option, in whole or in part, at any time or from time to
time, on or after February 15, 2009 and prior to maturity, upon not less than 30 nor more than 60 days’ prior notice mailed by first-class mail to each Holder’s last address, as it appears in the Security Register, at the following
Redemption Prices (expressed in percentages of principal amount), plus accrued and unpaid interest, if any, and liquidated damages, if any, to the Redemption Date (subject to the right of Holders of record on the relevant Regular Record Date that is
on or prior to the Redemption Date to receive interest due on an Interest Payment Date), if redeemed during the 12-month period commencing on February 15 of the following years: 
  

				
	 Year

	  	Redemption Price

	 
	 2009
	  	104.625	%
	 2010
	  	103.083	%
	 2011
	  	101.542	%
	 2012 and thereafter
	  	100.000	%

  

 34 

 (b) In addition, at any time prior to February 15, 2007, the Company may, at its option, redeem up to 35%
of the aggregate principal amount of the Notes with the net proceeds of one or more Equity Offerings, at any time or from time to time, at a Redemption Price (expressed as a percentage of principal amount) of 109.250% of their principal amount, plus
accrued and unpaid interest, if any, and liquidated damages, if any, to the Redemption Date (subject to the rights of Holders of record on the relevant Regular Record Date that is on or prior to the Redemption Date to receive interest due on an
Interest Payment Date); provided that (i) at least 65% of the aggregate principal amount of Notes originally issued on the Closing Date remains outstanding after each such redemption and (ii) notice of such redemption is mailed within 90 days
after the closing of the related Equity Offering. 
  
 SECTION
3.02. Notices to Trustee. If the Company elects to redeem Notes pursuant to Section 3.01(a) or (b), it shall notify the Trustee in writing of the Redemption Date and the principal amount of Notes to be redeemed and the clause of this
Indenture pursuant to which redemption shall occur. 
  
 The
Company shall give each notice provided for in this Section 3.02 in an Officers’ Certificate at least 45 days before the Redemption Date (unless a shorter period shall be satisfactory to the Trustee). 
  
 SECTION 3.03. 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 in compliance with the requirements, as certified to it by the Company, of the principal national securities exchange, if any, on which the Notes are listed
or, if the Notes are not listed on a national securities exchange or automated quotation system, by lot or by such other method as the Trustee in its sole discretion shall deem fair and appropriate; provided that no Note of $1,000 in
principal amount or less shall be redeemed in part. 
  
 The
Trustee shall make the selection from the Notes outstanding and not previously called for redemption. Notes in denominations of $1,000 in principal amount may only be redeemed in whole. The Trustee may select for redemption portions (equal to $1,000
in principal amount or any integral multiple thereof) of Notes that have denominations larger than $1,000 in principal amount. Provisions of this Indenture that apply to Notes called for redemption also apply to portions of Notes called for
redemption. The Trustee shall notify the Company and the Registrar promptly in writing of the Notes or portions of Notes to be called for redemption. 
  
 SECTION 3.04. Notice of Redemption. With respect to any redemption of Notes pursuant to Section 3.01, at least 30 days but not more than 60 days
before a Redemption 

  

 35 

 
Date, the Company shall mail a notice of redemption by first-class mail to each Holder whose Notes are to be redeemed. 
  
 The notice shall identify the Notes to be redeemed and shall state:

  
 (i) the Redemption Date; 
  
 (ii) the Redemption Price; 
  
 (iii) the name and address of the Paying Agent; 

 
 (iv) that Notes called for redemption must be surrendered
to the Paying Agent in order to collect the Redemption Price; 
  
 (v) that, unless the Company defaults in making the redemption payment, interest on Notes called for redemption ceases to accrue on and after the Redemption Date and the only remaining right of the Holders is to
receive payment of the Redemption Price plus accrued and unpaid interest to the Redemption Date upon surrender of the Notes to the Paying Agent; 
  
 (vi) that, if any Note is being redeemed in part, the portion of the principal amount (equal to $1,000 in principal amount or any integral
multiple thereof) of such Note to be redeemed and that, on and after the Redemption Date, upon surrender of such Note, a new Note or Notes in principal amount equal to the unredeemed portion thereof will be issued upon cancellation of the original
Note; and 
  
 (vii) that, if any Note contains a
CUSIP number as provided in Section 2.13, no representation is being made as to the correctness of the CUSIP number either as printed on the Notes or as contained in the notice of redemption and that reliance may be placed only on the other
identification numbers printed on the Notes. 
  
 At the
Company’s request (which request may be revoked by the Company at any time prior to the time at which the Trustee shall have given such notice to the Holders), made in writing to the Trustee at least 45 days (or such shorter period as shall be
satisfactory to the Trustee) before a Redemption Date, the Trustee shall give the notice of redemption in the name and at the expense of the Company. If, however, the Company gives such notice to the Holders, the Company shall concurrently deliver
to the Trustee an Officers’ Certificate stating that such notice has been given. 
  
 SECTION 3.05. Effect of Notice of Redemption. Once notice of redemption is mailed, Notes called for redemption become due and payable on the Redemption Date and at the Redemption Price. Upon surrender of any
Notes to the Paying Agent, such Notes shall be paid at the Redemption Price, plus accrued and unpaid interest, if any, to the Redemption Date. 
  
 Notice of redemption shall be deemed to be given when mailed, whether or not the Holder receives the notice. In any event, failure to give such notice, or
any defect therein, shall not affect the validity of the proceedings for the redemption of Notes held by Holders to whom such notice was properly given. 
  

 36 

 SECTION 3.06. Deposit of Redemption Price. On or prior to any Redemption Date, the Company shall
deposit with the Paying Agent (or, if the Company is acting as the Paying Agent, shall segregate and hold in trust as provided in Section 2.05) money sufficient to pay the Redemption Price of and accrued and unpaid interest on all Notes to be
redeemed on that date other than Notes or portions thereof called for redemption on that date that have been delivered by the Company to the Trustee for cancellation. 
  
 SECTION 3.07. Payment of Notes Called for Redemption. If notice of redemption has been given in the manner provided
above, the Notes or portion of Notes specified in such notice to be redeemed shall become due and payable on the Redemption Date at the Redemption Price stated therein, together with accrued and unpaid interest to such Redemption Date, and on and
after such date (unless the Company shall default in the payment of such Notes at the Redemption Price and accrued and unpaid interest to the Redemption Date, in which case the principal, until paid, shall bear interest from the Redemption Date at
the rate prescribed in the Notes), such Notes shall cease to accrue interest. Upon surrender of any Note for redemption in accordance with a notice of redemption, such Note shall be paid and redeemed by the Company at the Redemption Price, together
with accrued and unpaid interest, if any, to the Redemption Date; provided that installments of interest whose Stated Maturity is on or prior to the Redemption Date shall be payable to the Holders registered as such at the close of business
on the relevant Regular Record Date. 
  
 SECTION 3.08. Notes
Redeemed in Part. Upon surrender of any Note that is redeemed in part, the Company shall execute and the Trustee shall authenticate and deliver to the Holder without service charge, a new Note equal in principal amount to the unredeemed portion
of such surrendered Note. 
  
 ARTICLE FOUR 
 COVENANTS 
  
 SECTION 4.01. Payment of Notes. The Company shall pay the principal of, premium, if any, and interest on the Notes on the dates and in the manner
provided in the Notes and this Indenture. An installment of principal, premium, if any, or interest shall be considered paid on the date due if the Trustee or Paying Agent (other than the Company, a Subsidiary of the Company, or any Affiliate of any
of them) holds on that date money designated for and sufficient to pay the installment. If the Company or any Affiliate of the Company acts as Paying Agent, an installment of principal, premium, if any, or interest shall be considered paid on the
due date if the entity acting as Paying Agent complies with the last sentence of Section 2.05. As provided in Section 6.09, upon any bankruptcy or reorganization procedure relative to the Company, the Trustee shall serve as the Paying Agent, if any,
for the Notes. 
  
 The Company shall pay interest on overdue
principal and premium, if any, and interest on overdue installments of interest, to the extent lawful, at the rate per annum specified in the Notes. 
  
 SECTION 4.02. Maintenance of Office or Agency. The Company shall maintain in the Borough of Manhattan, The City of New York, or Minneapolis,
Minnesota an office or agency where Notes may be surrendered for registration of transfer or exchange or for 

  

 37 

 
presentation for payment and where notices and demands to or upon the Company in respect of the Notes and this Indenture may be served. The Company shall
give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency. If at any time the Company 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 address of the Trustee set forth in Section 11.02. 
  
 The Company 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; provided that no such designation or rescission shall in any manner relieve the Company of its obligation to maintain an office or agency in the Borough of Manhattan, The City of
New York, or Minneapolis, Minnesota for such purposes. The Company 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 Company hereby initially designates the Corporate Trust Office of the
Trustee as such office of the Company in accordance with Section 2.04. 
  
 SECTION 4.03. Limitation on Indebtedness. (a) The Company and the Parent Guarantor jointly and severally agree that the Company and the Parent Guarantor shall not, and shall not permit any Restricted Subsidiary of either the Company
or the Parent Guarantor to, Incur any Indebtedness (other than the Notes issued on the Closing Date, and any notes exchanged therefor under this Indenture, and any other Indebtedness existing on February 20, 2004); provided that the Company
or the Parent Guarantor may Incur Indebtedness if, after giving effect to the Incurrence of such Indebtedness and the receipt and application of the proceeds therefrom (i) in the case of the Parent Guarantor incurring Indebtedness, the Consolidated
Leverage Ratio of the Parent Guarantor would be greater than zero and less than 6.0:1, and (ii) in the case of the Company incurring Indebtedness, the Consolidated Leverage Ratio of the Company would be greater than zero and less than 4.5:1.

  
 (b) Notwithstanding the foregoing, the Company, Parent
Guarantor and any Restricted Subsidiary (except as specified below) may Incur each and all of the following: (i) Indebtedness incurred under Credit Agreements outstanding at any time in an aggregate principal amount not to exceed $300 million; (ii)
Indebtedness owed (A) to the Company or the Parent Guarantor evidenced by a promissory note or (B) to any Restricted Subsidiary; provided, however, that any event which results in any such Restricted Subsidiary ceasing to be a
Restricted Subsidiary or any subsequent transfer of such Indebtedness (other than to the Company, Parent Guarantor or another Restricted Subsidiary) shall be deemed, in each case, to constitute an Incurrence of such Indebtedness not permitted by
this clause (ii); (iii) Indebtedness issued in exchange for, or the net proceeds of which are used to refinance or refund, then outstanding Indebtedness (other than Indebtedness Incurred under clause (i), (ii), (iv), (viii), (ix) or (xii) of this
paragraph (b)) and any refinancings thereof in an amount not to exceed the amount so refinanced or refunded (plus premiums, accrued interest, fees and expenses); provided, however, that Indebtedness the proceeds of which are used to
refinance or refund the Notes or Indebtedness that is pari passu with, or subordinated in right of payment to, the Notes shall only be permitted under this clause (iii) if (A) in case the Notes, the Parent Guarantee or any Subsidiary
Guarantee are refinanced in part or the Indebtedness to be refinanced is pari passu 

  

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with the Notes, the Parent Guarantee or any Subsidiary Guarantee, such new Indebtedness, by its terms or by the terms of any agreement or instrument pursuant
to which such new Indebtedness is outstanding, is expressly made pari passu with, or subordinate in right of payment to, the remaining Notes, the Parent Guarantee or such Subsidiary Guarantee, as applicable; (B) in case the Indebtedness to be
refinanced is subordinated in right of payment to the Notes, the Parent Guarantee or any Subsidiary Guarantee, such new Indebtedness, by its terms or by the terms of any agreement or instrument pursuant to which such new Indebtedness is issued or
remains outstanding, is expressly made subordinate in right of payment to the Notes, the Parent Guarantee or such Subsidiary Guarantee, as applicable, at least to the extent that the Indebtedness to be refinanced is subordinated to the Notes, the
Parent Guarantee or such Subsidiary Guarantee, as applicable; and (C) such new Indebtedness, determined as of the date of Incurrence of such new Indebtedness, does not mature prior to the Stated Maturity of the Indebtedness to be refinanced or
refunded, and the Average Life of such new Indebtedness is at least equal to the remaining Average Life of the Indebtedness to be refinanced or refunded; and provided further that in no event may (I) Indebtedness of the Parent Guarantor be
refinanced by means of any Indebtedness of any of its Restricted Subsidiaries pursuant to this clause (iii) or (II) Indebtedness of the Company be refinanced by means of any Indebtedness of any of its Restricted Subsidiaries pursuant to this clause
(iii); (iv) Indebtedness (A) in respect of performance, surety or appeal bonds provided in the ordinary course of business, (B) under Currency Agreements and Interest Rate Agreements; provided that such agreements (I) are designed solely to
protect the Company, the Parent Guarantor or the Restricted Subsidiaries of either against fluctuations in foreign currency exchange rates or interest rates and (II) do not increase the Indebtedness of the obligor outstanding at any time other than
as a result of fluctuations in foreign currency exchange rates or interest rates or by reason of fees, indemnities and compensation payable thereunder, and (C) arising from agreements providing for indemnification, adjustment of purchase price or
similar obligations, or from Guarantees or letters of credit, surety bonds or performance bonds securing any obligations of the Company or the Parent Guarantor or any of the Restricted Subsidiaries of either pursuant to such agreements, in any case
Incurred in connection with the disposition of any business, assets or Restricted Subsidiary (other than Guarantees of Indebtedness Incurred by any Person acquiring all or any portion of such business, assets or Restricted Subsidiary for the purpose
of financing such acquisition), in a principal amount not to exceed the gross proceeds actually received by the Company, the Parent Guarantor or any Restricted Subsidiary, as applicable, in connection with such disposition; (v) Indebtedness of the
Company or the Parent Guarantor, and Guarantees thereof, to the extent the net proceeds thereof are promptly (A) used to purchase Notes, the 2014 Notes or 2011 Notes tendered in an Offer to Purchase or an “Offer to Purchase” as defined in
the 2014 Indenture or 2011 Indenture, as applicable, made as a result of a Change of Control Triggering Event or (B) deposited to defease the Notes pursuant to Article Eight or the 2014 Notes or the 2011 Notes pursuant to Article Eight of the 2014
Indenture or the 2011 Indenture, as applicable; (vi) Guarantees of the Notes, the 2014 Notes and the 2011 Notes including the Parent Guarantee and the Subsidiary Guarantees and Guarantees of Indebtedness of the Parent Guarantor or the Company by the
Parent Guarantor, the Company or any Restricted Subsidiary; provided that the Guarantee by any Restricted Subsidiary of such Indebtedness (other than the Notes, the 2014 Notes and the 2011 Notes) is permitted by and made in accordance with
Section 4.07; (vii) Indebtedness Incurred to finance or refinance the cost (including the cost of design, development, acquisition, construction, installation, improvement, transportation or integration 

  

 39 

 
and all transaction costs related to the foregoing) to acquire equipment, inventory or network assets (including acquisitions by way of Capitalized Lease and
acquisitions of the Capital Stock of a Person that becomes a Restricted Subsidiary to the extent of the fair market value of the equipment, inventory or network assets so acquired plus goodwill associated therewith) by the Company, the Parent
Guarantor or a Restricted Subsidiary after February 20, 2004; provided, however, that the aggregate principal amount of such Indebtedness outstanding at any time may not exceed $150 million; (viii) Indebtedness of the Company or the
Parent Guarantor not to exceed, at any one time outstanding, (A) the Net Cash Proceeds received by the Company or the Parent Guarantor after the Existing High Yield Closing Date from the issuance and sale of its Capital Stock (other than
Disqualified Stock) to a Person that is not the Parent Guarantor or a Subsidiary of the Parent Guarantor, to the extent (I) such Net Cash Proceeds have not been used pursuant to clause (C)(2) of Section 4.04(a) or clause (iii), (iv), (vi) or (vii)
of Section 4.04(b) to make a Restricted Payment and (II) if such Net Cash Proceeds are used to consummate a transaction pursuant to which the Company or the Parent Guarantor, as applicable, Incurs Acquired Indebtedness, the amount of such Net Cash
Proceeds exceeds one-half of the amount of Acquired Indebtedness so Incurred and (B) 80% of the fair market value of property (other than cash and cash equivalents) received by the Company or the Parent Guarantor, as applicable, after the Existing
High Yield Closing Date from the sale of its Capital Stock (other than Disqualified Stock) to a Person that is not the Parent Guarantor or a Subsidiary of the Parent Guarantor, to the extent (I) such sale of Capital Stock has not been used pursuant
to clause (C)(2) of Section 4.04(a) or clause (iii), (iv), (vi) or (vii) of Section 4.04(b) to make a Restricted Payment and (II) if such Capital Stock is used to consummate a transaction pursuant to which the Company or the Parent Guarantor, as
applicable, Incurs Acquired Indebtedness, 80% of the fair market value of the property received exceeds one-half of the amount of Acquired Indebtedness so Incurred; provided that such Indebtedness does not mature prior to the Stated Maturity
of the Notes and has an Average Life longer than the Notes; (ix) Acquired Indebtedness; (x) Strategic Subordinated Indebtedness; (xi) Indebtedness or related obligations of the Company, the Parent Guarantor or any Restricted Subsidiary under (A)
Currency Agreements, Interest Rate Agreements or cash management or similar treasury or custodial arrangements with any Lender or an affiliate of a Lender or (B) Currency Agreements, Interest Rate Agreements (up to a maximum of $25 million at any
one time outstanding measured by termination value) or cash management or similar treasury or custodial arrangements with any Person that is not a Lender or an affiliate of any Lender; and (xii) subordinated Indebtedness of the Company or the Parent
Guarantor (in addition to Indebtedness permitted under clauses (i) through (xi) above) in an aggregate principal amount outstanding at any time not to exceed $200 million, less any amount of such Indebtedness permanently repaid as provided under
Section 4.11. 
  
 (c) Notwithstanding any other provision of this
Section 4.03, the maximum amount of Indebtedness that the Company, the Parent Guarantor or a Restricted Subsidiary may Incur pursuant to this Section 4.03 shall not be deemed to be exceeded, with respect to any outstanding Indebtedness due solely to
the result of fluctuations in the exchange rates of currencies. 
  
 (d) For purposes of determining any particular amount of Indebtedness under this Section 4.03, (1) Guarantees, Liens or obligations with respect to letters of credit supporting Indebtedness otherwise included in the determination of such
particular amount shall not be included and (2) any Liens granted pursuant to clause (xxv) of the definition of Permitted Liens 

  

 40 

 
shall not be treated as Indebtedness. For purposes of determining compliance with this Section 4.03, in the event that an item of Indebtedness meets the
criteria of more than one of the types of Indebtedness described in the above clauses, the Company or the Parent Guarantor, as applicable, in its sole discretion, shall classify, and from time to time may reclassify, such item of Indebtedness and
only be required to include the amount and type of such Indebtedness in one of such clauses. 
  
 (e) For purposes of determining compliance with any Dollar-denominated restriction on the Incurrence of Indebtedness denominated in a foreign currency, the Dollar-equivalent principal amount of such Indebtedness
Incurred pursuant thereto shall be calculated based on the relevant currency exchange rate in effect on the date that such Indebtedness was Incurred, provided that (x) the Dollar-equivalent principal amount of any such Indebtedness
outstanding on the Closing Date shall be calculated based on the relevant currency exchange rate in effect on the Closing Date and (y) if such Indebtedness is Incurred to refinance other Indebtedness denominated in a foreign currency, and such
refinancing would cause the applicable Dollar-denominated restriction to be exceeded if calculated at the relevant currency exchange rate in effect on the date of such refinancing, such Dollar-denominated restriction shall be deemed not to have been
exceeded so long as the principal amount of such refinancing Indebtedness, converted into the currency in which the Indebtedness being refinanced is denominated at the currency exchange rate in effect on the date of such refinancing, does not exceed
the principal amount of such Indebtedness being refinanced (plus premiums, accrued interest, fees and expenses). The principal amount of any Indebtedness Incurred to refinance other Indebtedness, if Incurred in a different currency from the
Indebtedness being refinanced, shall be calculated based on the foreign currency exchange rate applicable to the currencies in which such respective Indebtedness is denominated that is in effect on the date of such refinancing. 
  
 (f) The Company and the Parent Guarantor jointly and severally agree that
neither the Company nor the Parent Guarantor nor any Subsidiary Guarantor shall incur any Indebtedness that pursuant to its terms is subordinate or junior in right of payment to any Indebtedness unless such Indebtedness is subordinated in right of
payment to the Notes, the Parent Guarantee or the relevant Subsidiary Guarantee, as applicable, to the same extent; provided that Indebtedness will not be considered subordinate or junior in right of payment to any other Indebtedness solely
by virtue of being unsecured or secured to a greater or lesser extent or with greater or lower priority. 
  
 SECTION 4.04. Limitation on Restricted Payments. (a) The Company and the Parent Guarantor jointly and severally agree that the Company and the
Parent Guarantor shall not, and shall not permit any Restricted Subsidiary of either the Company or the Parent Guarantor to, directly or indirectly, (i) declare or pay any dividend or make any distribution on or with respect to its Capital Stock
(other than (x) dividends or distributions payable solely in shares of the Company’s or the Parent Guarantor’s Capital Stock (other than Disqualified Stock) or in options, warrants or other rights to acquire shares of such Capital Stock
(other than Disqualified Stock) and (y) pro rata dividends or distributions on Common Stock of Restricted Subsidiaries held by minority stockholders) held by Persons other than the Company, the Parent Guarantor or any Restricted Subsidiary, (ii)
purchase, redeem, retire or otherwise acquire for value any shares of Capital Stock of (x) the Parent Guarantor or an Unrestricted Subsidiary 

  

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(including options, warrants or other rights to acquire such shares of Capital Stock) held by any Person or (y) a Restricted Subsidiary (including options,
warrants or other rights to acquire such shares of Capital Stock) held by any Affiliate of the Parent Guarantor (other than a Wholly Owned Restricted Subsidiary) or any holder (or any Affiliate of such holder) of 5% or more of the Capital Stock of
the Parent Guarantor, (iii) make any voluntary or optional principal payment, or voluntary or optional redemption, repurchase, defeasance, or other acquisition or retirement for value, of any Indebtedness that is subordinated in right of payment to
the Notes, the Parent Guarantee or any Subsidiary Guarantee; or (iv) make any Investment, other than a Permitted Investment, in any Person (such payments or any other actions described in clauses (i) through (iv) above being collectively referred to
as “Restricted Payments”) if, at the time of, and after giving effect to, the proposed Restricted Payment: (A) a Default or Event of Default shall have occurred and be continuing, (B) the Parent Guarantor could not Incur at least
$1.00 of Indebtedness under clause (i) of Section 4.03(a) or (C) the aggregate amount of all Restricted Payments (the amount, if other than in cash, to be determined in good faith by the Board of Directors, whose determination shall be conclusive
and evidenced by a Board Resolution) made after the Existing High Yield Closing Date shall exceed the sum of (1) the amount by which Consolidated EBITDA of the Parent Guarantor exceeds 150% of Consolidated Interest Expense of the Parent Guarantor,
in each case, determined on a cumulative basis during the period (taken as one accounting period) beginning on the first day of the fiscal quarter immediately following the Existing High Yield Closing Date and ending on the last day of the last
fiscal quarter preceding the Transaction Date for which reports have been filed with the Commission or provided to the Trustee pursuant to Section 4.18, plus (2) the aggregate Net Cash Proceeds and the fair market value of all non-cash
proceeds received by the Company or the Parent Guarantor after the Existing High Yield Closing Date from the issuance and sale permitted by this Indenture of its Capital Stock (other than Disqualified Stock) to a Person who is not a Subsidiary of
the Company or the Parent Guarantor, including an issuance or sale permitted by this Indenture of Indebtedness of the Company or the Parent Guarantor for cash subsequent to the Existing High Yield Closing Date upon the conversion of such
Indebtedness into Capital Stock (other than Disqualified Stock) of the Company or the Parent Guarantor, or from the issuance to a Person who is not a Subsidiary of the Company or the Parent Guarantor of any options, warrants or other rights to
acquire Capital Stock of the Company or the Parent Guarantor (in each case, exclusive of any Disqualified Stock or any options, warrants or other rights that are redeemable at the option of the holder, or are required to be redeemed, prior to the
Stated Maturity of the Notes), in each case except to the extent such Net Cash Proceeds and non-cash proceeds are used to Incur Indebtedness pursuant to clause (viii) of Section 4.03(b), plus (3) an amount equal to the net reduction in
Investments (other than reductions in Permitted Investments) in any Person resulting from payments of interest on Indebtedness, dividends, repayments of loans or advances, or other transfers of assets, in each case to the Company, the Parent
Guarantor or any Restricted Subsidiary or from the Net Cash Proceeds from the sale of any such Investment (except, in each case, to the extent any such payment or proceeds are included in the calculation of Adjusted Consolidated Net Income), or from
redesignations of Unrestricted Subsidiaries as Restricted Subsidiaries (valued in each case as provided in the definition of “Investments”), not to exceed, in each case, the amount of Investments previously made by the Company, the
Parent Guarantor or any Restricted Subsidiary in such Person or Unrestricted Subsidiary. 
  

 42 

 (b) The foregoing provision shall not be violated by reason of: (i) the payment of any dividend within 60
days after the date of declaration thereof if, at said date of declaration, such payment would comply with the foregoing paragraph (a); (ii) the redemption, repurchase, defeasance or other acquisition or retirement for value of Indebtedness that is
subordinated in right of payment to the Notes, the Parent Guarantee or any Subsidiary Guarantee, including premium, if any, and accrued and unpaid interest, with the proceeds of, or in exchange for, Indebtedness Incurred under clauses (iii) and
(xii) of Section 4.03(b); (iii) the repurchase, redemption or other acquisition of Capital Stock of the Parent Guarantor or an Unrestricted Subsidiary (or options, warrants or other rights to acquire such Capital Stock) in exchange for, or out of
the proceeds of a substantially concurrent offering of, shares of Capital Stock (other than Disqualified Stock) of the Parent Guarantor (or options, warrants or other rights to acquire such Capital Stock); (iv) the making of any principal payment or
the repurchase, redemption, retirement, defeasance or other acquisition for value of any Indebtedness which is subordinated in right of payment to the Notes, the Parent Guarantee or any Subsidiary Guarantee, in exchange for, or out of the proceeds
of a substantially concurrent sale of, shares of the Capital Stock (other than Disqualified Stock) of the Company or the Parent Guarantor, as applicable (or options, warrants or other rights to acquire such Capital Stock); (v) payments or
distributions to dissenting stockholders pursuant to applicable law, pursuant to or in connection with a consolidation, merger or transfer of assets that complies with the provisions of this Indenture applicable to mergers, consolidations and
transfers of all or substantially all of the property and assets of the Company or the Parent Guarantor; (vi) Investments in any Person the primary business of which is related, ancillary or complementary to the business of the Company, the Parent
Guarantor and the Restricted Subsidiaries on the date of such Investments; provided that the aggregate amount of Investments made pursuant to this clause (vi) does not exceed the sum of (a) $20 million plus (b) the amount of Net Cash Proceeds
and the fair market value of all non-cash proceeds received by the Company or the Parent Guarantor after the Existing High Yield Closing Date from the sale of its Capital Stock (other than Disqualified Stock) to a Person who is not a Subsidiary of
the Company or the Parent Guarantor, except to the extent such Net Cash Proceeds and non-cash proceeds are used to Incur Indebtedness pursuant to clause (viii) of Section 4.03(b) or to make Restricted Payments pursuant to clause (C)(2) of paragraph
(a), or clauses (iii), (iv) or (vii) of this paragraph (b), of this Section 4.04, plus (c) the net reduction in Investments made pursuant to this clause (vi) resulting from distributions on or repayments of such Investments or from the Net Cash
Proceeds or non-cash proceeds from the sale of any such Investment (except in each case to the extent any such payment or proceeds is included in the calculation of Adjusted Consolidated Net Income) or from such Person becoming a Restricted
Subsidiary (valued in each case as provided in the definition of “Investments”), provided, however, that the net reduction in any Investment shall not exceed the amount of such Investment; (vii) Investments acquired in
exchange for Capital Stock (other than Disqualified Stock) of the Parent Guarantor or the Company (except to the extent such acquired property has been used to make Restricted Payments pursuant to clause (C)(2) of paragraph (a) of this Section 4.04
to make a Restricted Payment); (viii) other Restricted Payments in an aggregate amount not to exceed $25 million; and (ix) the repurchase, redemption or other acquisition of Capital Stock of the Company or the Parent Guarantor (or options, warrants
or other rights to acquire such Capital Stock) from Persons who are or were formerly directors, officers or employees of the Company, the Parent Guarantor or any Restricted Subsidiary, provided, however, that the aggregate amount of
all such repurchases made in any calendar year pursuant to this clause (ix) 

  

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shall not exceed $2.0 million; provided that, except in the case of clauses (i) and (iii) of this paragraph (b), no Default or Event of Default shall
have occurred and be continuing or occur as a consequence of the actions or payments set forth therein. 
  
 (c) Each Restricted Payment permitted pursuant to the preceding paragraph (b) (other than the Restricted Payment referred to in clause (ii) thereof, an
exchange of Capital Stock for Capital Stock or Indebtedness referred to in clause (iii) or (iv) thereof and an Investment referred to in clause (vi) or (vii) thereof), and the Net Cash Proceeds and the fair market value of all non-cash proceeds from
any issuance of Capital Stock referred to in clauses (iii), (iv), (vi) and (vii), shall be included in calculating whether the conditions of clause (C) of paragraph (a) of this Section 4.04 have been met with respect to any subsequent Restricted
Payments. In the event the proceeds of an issuance of Capital Stock of the Company or the Parent Guarantor are used for the redemption, repurchase or other acquisition of the Notes, or Indebtedness that is pari passu with the Notes, then the
Net Cash Proceeds of such issuance shall be included in clause (C) of paragraph (a) of this Section 4.04 only to the extent such proceeds are not used for such redemption, repurchase or other acquisition of Indebtedness. 
  
 SECTION 4.05. Limitation on Dividend and Other Payment Restrictions
Affecting Restricted Subsidiaries. (a) The Company shall not, and shall not permit any Restricted Subsidiary to, create or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction of any kind on the
ability of any Restricted Subsidiary to (i) pay dividends or make any other distributions permitted by applicable law on any Capital Stock of such Restricted Subsidiary owned by the Company or any other Restricted Subsidiary, (ii) pay any
Indebtedness owed to the Company or any other Restricted Subsidiary, (iii) make loans or advances to the Company or any other Restricted Subsidiary or (iv) transfer any of its property or assets to the Company or any other Restricted Subsidiary.

  
 (b) The provisions of Section 4.05(a) shall not restrict any
encumbrances or restrictions: (i) existing on February 20, 2004 or any other agreements in effect on February 20, 2004, and any extensions, refinancings, renewals or replacements of such agreements; provided that the encumbrances and
restrictions in any such extensions, refinancings, renewals or replacements are no less favorable in any material respect to the Holders than those encumbrances or restrictions that are then in effect and that are being extended, refinanced, renewed
or replaced; (ii) existing under or by reason of applicable law or required by any regulatory authority having jurisdiction over the Company or any Restricted Subsidiary; (iii) existing with respect to any Person or the property or assets of such
Person acquired by the Company or any Restricted Subsidiary, existing at the time of such acquisition and not incurred in contemplation thereof, which encumbrances or restrictions are not applicable to any Person or the property or assets of any
Person other than such Person or the property or assets of such Person so acquired, and any extensions, renewals or replacements of such encumbrances or restrictions; provided, however, that the encumbrances and restrictions in any
such extensions, renewals or replacements are no less favorable in any material respect to the Holders than those encumbrances or restrictions that are then in effect and that are being extended, renewed or replaced; (iv) in the case of clause (iv)
of paragraph (a) of this Section 4.05, (A) that restrict in a customary manner the subletting, assignment or transfer of any property or asset that is a lease, license, conveyance or contract or similar property or asset, (B) existing by virtue of
any transfer of, agreement to transfer, option or right with respect to, or Lien on, any property or assets of the 

  

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Company or any Restricted Subsidiary not otherwise prohibited by this Indenture or (C) arising or agreed to in the ordinary course of business, not relating
to any Indebtedness, and that do not, individually or in the aggregate, reduce the value of property or assets of the Company or any Restricted Subsidiary in any manner material to the Company or any Restricted Subsidiary; (v) with respect to a
Restricted Subsidiary and imposed pursuant to an agreement that has been entered into for the sale or disposition of all or substantially all of the Capital Stock of, or property and assets of, such Restricted Subsidiary; or (vi) contained in the
terms of any Indebtedness or any agreement pursuant to which such Indebtedness was issued if (A) the encumbrance or restriction either (1) applies only in the event of a payment default or non-compliance with respect to a financial covenant
contained in such Indebtedness or agreement or (2) is contained in a Credit Agreement, (B) the encumbrance or restriction is not materially more disadvantageous to the Holders of the Notes than is customary in comparable financings (as determined by
the Company) and (C) the Company determines on the date of the Incurrence of such Indebtedness that any such encumbrance or restriction would not be expected to materially impair the Company’s ability to make principal or interest payments on
the Notes. Nothing contained in this Section 4.05 shall prevent the Company or any Restricted Subsidiary from (1) creating, incurring, assuming or suffering to exist any Liens otherwise permitted in Section 4.09 or (2) restricting the sale or other
disposition of property or assets of the Company or any of its Restricted Subsidiaries that secure Indebtedness of the Company or any of its Restricted Subsidiaries. 
  
 SECTION 4.06. Limitation on the Issuance and Sale of Capital Stock of Restricted Subsidiaries. The Company and the
Parent Guarantor jointly and severally agree that the Company and the Parent Guarantor shall not sell, and shall not permit any Restricted Subsidiary of either the Company or the Parent Guarantor, directly or indirectly, to issue or sell, any shares
of Capital Stock of a Restricted Subsidiary (including options, warrants or other rights to purchase shares of such Capital Stock) except (i) to the Company, the Parent Guarantor or a Wholly Owned Restricted Subsidiary; (ii) issuances of
director’s qualifying shares or sales to foreign nationals of shares of Capital Stock of foreign Restricted Subsidiaries, to the extent required by applicable law; (iii) if, immediately after giving effect to such issuance or sale, such
Restricted Subsidiary would no longer constitute a Restricted Subsidiary and any Investment in such Person remaining after giving effect to such issuance or sale would have been permitted to be made under Section 4.04 if made on the date of such
issuance or sale; or (iv) issuances or sales of Common Stock of a Restricted Subsidiary; provided, however, that the Company or such Restricted Subsidiary applies the Net Cash Proceeds, if any, of any such sale in compliance with
Section 4.11. 
  
 SECTION 4.07. Limitation on Issuances of
Guarantees by Restricted Subsidiaries. (a) The Company and the Parent Guarantor jointly and severally agree that the Company and the Parent Guarantor shall not permit any Restricted Subsidiary of either the Company or the Parent Guarantor,
directly or indirectly, to Guarantee any Indebtedness of the Parent Guarantor which is pari passu with or subordinate in right of payment to the Parent Guarantee or to Guarantee any of the Company’s Indebtedness which is pari
passu with or subordinate in right of payment to the Notes (any such Indebtedness being the “Guaranteed Indebtedness”), unless (i) such Restricted Subsidiary simultaneously executes and delivers a supplemental indenture to this
Indenture providing for a Subsidiary Guarantee of payment of the Notes by such Restricted Subsidiary, (ii) such Restricted Subsidiary waives and will not in any 

  

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manner whatsoever claim or take the benefit or advantage of, any rights of reimbursement, indemnity or subrogation or any other rights against the Company or
the Parent Guarantor or any Restricted Subsidiary as a result of any payment by such Restricted Subsidiary under its Subsidiary Guarantee; provided that this paragraph shall not be applicable to any Guarantee of any Restricted Subsidiary that
existed at the time such Person became a Restricted Subsidiary and was not Incurred in connection with, or in contemplation of, such Person becoming a Restricted Subsidiary or to any Guarantee of any Prospective Subsidiary Guarantor of the 2014
Notes; and (iii) if the Guaranteed Indebtedness is Indebtedness of the Parent Guarantor, the Company would have been permitted to Incur such Guaranteed Indebtedness pursuant to clause (ii) of Section 4.03(a). If the Guaranteed Indebtedness is (A)
pari passu with the Notes or the Parent Guarantee, as applicable, then the Guarantee of such Guaranteed Indebtedness shall be pari passu with, or subordinated to, the Subsidiary Guarantee or (B) subordinated to the Notes or the Parent
Guarantee, then the Guarantee of such Guaranteed Indebtedness shall be subordinated to the Subsidiary Guarantee at least to the extent that the Guaranteed Indebtedness is subordinated to the Notes. 
  
 (b) Notwithstanding the provisions of paragraph (a) of this Section 4.07, any
Subsidiary Guarantee by a Restricted Subsidiary may provide by its terms that it shall be automatically and unconditionally released and discharged upon (i) any sale, exchange or transfer, to any Person not an Affiliate of the Company or the Parent
Guarantor, of all of the Company’s, the Parent Guarantor’s and each Restricted Subsidiary’s Capital Stock in, or all or substantially all the assets of, such Restricted Subsidiary (which sale, exchange or transfer is not prohibited by
this Indenture) or (ii) the release or discharge of the Guarantee which resulted in the creation of such Subsidiary Guarantee, except a discharge or release by or as a result of payment under such Guarantee. 
  
 SECTION 4.08. Limitation on Transactions with Stockholders and
Affiliates. The Company and the Parent Guarantor jointly and severally agree that the Company and the Parent Guarantor shall not, and shall not permit any Restricted Subsidiary of either the Company or the Parent Guarantor to, directly or
indirectly, enter into, renew or extend any transaction (including, without limitation, the purchase, sale, lease or exchange of property or assets, or the rendering of any service) with a Related Person or with any Affiliate of the Company, the
Parent Guarantor or any Restricted Subsidiary, except upon fair and reasonable terms no less favorable to the Company, the Parent Guarantor or such Restricted Subsidiary than could be obtained, at the time of such transaction or, if such transaction
is pursuant to a written agreement, at the time of the execution of the agreement providing therefor, in a comparable arm’s-length transaction with a Person that is not such a Related Person or an Affiliate. 
  
 The foregoing limitation does not limit, and shall not apply to (i)
transactions (A) approved by a majority of the disinterested members of the Board of Directors or (B) for which the Company, the Parent Guarantor or a Restricted Subsidiary delivers to the Trustee a written opinion of a nationally recognized
investment banking firm stating that the transaction is fair to the Company, the Parent Guarantor or such Restricted Subsidiary from a financial point of view; (ii) any transaction solely between the Company or the Parent Guarantor and any Wholly
Owned Restricted Subsidiary or solely between Wholly Owned Restricted Subsidiaries; (iii) the payment of reasonable and customary regular fees to directors of the Company or the Parent Guarantor who are not employees of the Company or the Parent
Guarantor; (iv) any transaction 

  

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with respect to the lease or sharing or other use of cable or fiber lines, equipment, transmission capacity, right-of-way or other access rights, between the
Company, the Parent Guarantor or any Restricted Subsidiary and any other Person; provided that such transaction is on terms that (A) are consistent with past practice of the Company, the Parent Guarantor or such Restricted Subsidiary and (B)
are no less favorable, taken as a whole, to the Company, the Parent Guarantor or the relevant Restricted Subsidiary than those that could have been obtained in a comparable transaction by the Company, the Parent Guarantor or such Restricted
Subsidiary with an unrelated Person (or, in the event that there are no comparable transactions involving unrelated Persons to apply for comparative purposes, is otherwise on terms that, taken as a whole, the Company or the Parent Guarantor, as
applicable, has determined to be fair to the Company or the Parent Guarantor or the relevant Restricted Subsidiary) or (v) any Restricted Payments not prohibited by Section 4.04. Notwithstanding the foregoing, any transaction or series of related
transactions covered by the first paragraph of this Section 4.08 and not covered by clauses (ii) through (v) of this paragraph, the aggregate amount of which exceeds $20 million in value, must be determined to be fair in the manner provided for in
clause (i)(A) or (B) above. 
  
 SECTION 4.09. Limitation on
Liens. The Company and the Parent Guarantor jointly and severally agree that the Company and the Parent Guarantor shall not, and shall not permit any Restricted Subsidiary of either the Company or the Parent Guarantor to, create, incur, assume
or suffer to exist any Lien on any of its assets or properties of any character (including, without limitation, licenses), or any shares of Capital Stock or Indebtedness of any Restricted Subsidiary, except Permitted Liens. 
  
 SECTION 4.10. Limitation on Sale-Leaseback Transactions. The Company
and the Parent Guarantor jointly and severally agree that the Company and the Parent Guarantor shall not, and shall not permit any Restricted Subsidiary of either the Company or the Parent Guarantor to, enter into any sale-leaseback transaction
involving any of its assets or properties whether now owned or hereafter acquired, whereby the Company, the Parent Guarantor or a Restricted Subsidiary sells or transfers such assets or properties and then or thereafter leases such assets or
properties or any part thereof or any other assets or properties which the Company, the Parent Guarantor or such Restricted Subsidiary, as the case may be, intends to use for substantially the same purpose or purposes as the assets or properties
sold or transferred. 
  
 The foregoing restriction shall not apply
to any sale-leaseback transaction if (i) the lease is for a period, including renewal rights, of not in excess of three years; (ii) the lease secures or relates to industrial revenue or pollution control bonds; (iii) the transaction is solely
between the Company or the Parent Guarantor and any Wholly Owned Restricted Subsidiary or solely between Wholly Owned Restricted Subsidiaries; or (iv) the Company, the Parent Guarantor or such Restricted Subsidiary applies an amount not less than
the net proceeds received from such sale in compliance with Section 4.11. 
  
 SECTION 4.11. Limitation on Asset Sales. (a) The Company and the Parent Guarantor jointly and severally agree that the Company and the Parent Guarantor shall not, and shall not permit any Restricted Subsidiary
of either the Company or the Parent Guarantor to, consummate any Asset Sale, unless (i) the consideration received by the Company, the Parent Guarantor or the Restricted Subsidiary is at least equal to the fair market value of the assets sold or
disposed of and (ii) at least 75% of the consideration received consists of cash, Temporary 

  

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Cash Investments or the assumption of Indebtedness of the Parent Guarantor (other than Indebtedness that is subordinated to the Parent Guarantee), the
Company (other than Indebtedness that is subordinated to the Notes) or a Restricted Subsidiary (other than Indebtedness that is subordinated to the relevant Subsidiary Guarantee) and unconditional release of the Company, the Parent Guarantor or the
Restricted Subsidiary from all liability on the Indebtedness assumed; provided, however, that this clause (ii) shall not apply to long-term assignments of capacity in a telecommunications network. 
  
 (b) In the event and to the extent that the Net Cash Proceeds received by the
Company, the Parent Guarantor or any Restricted Subsidiary from one or more Asset Sales occurring on or after February 20, 2004 in any period of 12 consecutive months exceed 10% of Adjusted Consolidated Net Tangible Assets (determined as of the date
closest to the commencement of such 12-month period for which a consolidated balance sheet of the Parent Guarantor and its Subsidiaries has been filed with the Commission pursuant to Section 4.18), then the Company and the Parent Guarantor shall or
shall cause the relevant Restricted Subsidiary to (i) within 12 months after the date Net Cash Proceeds so received exceed 10% of Adjusted Consolidated Net Tangible Assets (A) apply an amount equal to such excess Net Cash Proceeds less any amounts
invested within 6 months prior to such Asset Sale in property or assets of a nature or type or that are used in a business (or in a company having property and assets of a nature or type, or engaged in a business) similar or related to the nature or
type of the property and assets of, or the business of, the Company, the Parent Guarantor and its Restricted Subsidiaries on the date of such Asset Sale (the “Adjusted Net Cash Proceeds”) to permanently repay unsubordinated
Indebtedness of the Parent Guarantor, the Company or any Restricted Subsidiary providing a Subsidiary Guarantee, in each case, owing to a Person other than the Company, the Parent Guarantor or any Restricted Subsidiaries or (B) invest an equal
amount, or the amount of Adjusted Net Cash Proceeds not so applied pursuant to clause (A) (or enter into a definitive agreement committing to so invest within 12 months after the date of such agreement), in property or assets (other than current
assets) of a nature or type or that are used in a business (or in a company having property and assets of a nature or type, or engaged in a business) similar or related to the nature or type of the property and assets of, or the business of, the
Company, the Parent Guarantor and the Restricted Subsidiaries existing on the date of such investment (as determined in good faith by the Board of Directors, whose determination shall be conclusive and evidenced by a Board Resolution) and (ii) apply
(no later than the end of the 12-month period referred to in clause (i)) such excess Adjusted Net Cash Proceeds (to the extent not applied pursuant to clause (i)) as provided in paragraph (c) of this Section 4.11. The amount of such excess Adjusted
Net Cash Proceeds required to be applied (or to be committed to be applied) during such 12-month period as set forth in clause (i) of the preceding sentence and not applied as so required by the end of such period shall constitute “Excess
Proceeds.” 
  
 (c) If, as of the first day of any
calendar month, the aggregate amount of Excess Proceeds not theretofore subject to an Offer to Purchase pursuant to this Section 4.11 totals at least $20 million, the Company shall commence, not later than the fifteenth Business Day of such month,
and consummate an Offer to Purchase from the Holders on a pro rata basis an aggregate principal amount of Notes and to the extent permitted or required by the terms thereof, any other Indebtedness of the Company or the Parent Guarantor that is
pari passu with the Notes or the Parent Guarantee (including, without limitation, the 2014 Notes and the 2011 Notes), equal to the Excess Proceeds on such date, at a purchase price equal to 100% of the 

  

 48 

 
principal amount of the Notes and such other Indebtedness, if applicable, on the relevant Payment Date, plus, in each case, accrued interest (if any) to the
Payment Date. If any Excess Proceeds remain after consummation of an Offer to Purchase, the Company may use those Excess Proceeds for any purpose not otherwise prohibited by this Indenture. If the aggregate principal amount of notes and other
pari passu Indebtedness tendered in response to such Offer to Purchase exceeds the amount of Excess Proceeds, the trustee will select the notes and such other pari passu Indebtedness to be purchased on a pro rata basis. Upon completion
of the Offer to Purchase, the amount of Excess Proceeds will be reset to zero. 
  
 SECTION 4.12. Repurchase of Notes upon a Change of Control. The Company shall commence, within 30 days of the occurrence of a Change of Control Triggering Event, and consummate an Offer to Purchase for all
Notes then outstanding, at a purchase price equal to 101% of the principal amount thereof on the relevant Payment Date, plus accrued interest (if any) to the Payment Date. 
  
 SECTION 4.13. Existence. Subject to Articles Four and Five of this Indenture, the Company and the Parent Guarantor
jointly and severally agree that the Company and the Parent Guarantor shall do or cause to be done all things necessary to preserve and keep in full force and effect their respective existences and the existence of each of their Restricted
Subsidiaries in accordance with the respective organizational documents of the Company, the Parent Guarantor and each Restricted Subsidiary and the rights (whether pursuant to charter, partnership certificate, agreement, statute or otherwise),
licenses and franchises of the Company, the Parent Guarantor and each Restricted Subsidiary; provided that neither the Company nor the Parent Guarantor shall be required to preserve any such right, license or franchise, or the existence of
any Restricted Subsidiary, if the maintenance or preservation thereof is no longer desirable in the conduct of the business of the Company, the Parent Guarantor and their Restricted Subsidiaries taken as a whole. 
  
 SECTION 4.14. Payment of Taxes and Other Claims. The Company and the
Parent Guarantor jointly and severally agree that the Company and the Parent Guarantor shall pay or discharge and shall cause each of their Restricted Subsidiaries to pay or discharge, or cause to be paid or discharged, before the same shall become
delinquent (i) all material taxes, assessments and governmental charges levied or imposed upon (a) the Company, the Parent Guarantor or any such Restricted Subsidiary, (b) the income or profits of the Company, the Parent Guarantor or any such
Restricted Subsidiary which is a corporation or (c) the property of the Company, the Parent Guarantor or any such Restricted Subsidiary and (ii) all material lawful claims for labor, materials and supplies that, if unpaid, might by law become a lien
upon the property of the Company, the Parent Guarantor or any such Restricted Subsidiary; provided that neither the Company nor the Parent Guarantor shall be required to pay or discharge, or cause to be paid or discharged, any such tax,
assessment, charge or claim the amount, applicability or validity of which is being contested in good faith by appropriate proceedings and for which adequate reserves have been established. 
  
 SECTION 4.15. Maintenance of Properties and Insurance. The Company and
the Parent Guarantor jointly and severally agree that the Company and the Parent Guarantor shall cause all properties used or useful in the conduct of their business or the business of any of the Restricted Subsidiaries to be maintained and kept in
good condition, repair and working order 

  

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and supplied with all necessary equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all
as in the judgment of the Company and the Parent Guarantor may be necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times; provided that nothing in this Section 4.15 shall
prevent the Company, the Parent Guarantor or any Restricted Subsidiary from discontinuing the use, operation or maintenance of any of such properties or disposing of any of them, if such discontinuance or disposal is, in the judgment of the Company,
the Parent Guarantor or such Restricted Subsidiary having managerial responsibility for any such property, desirable in the conduct of the business of the Company, the Parent Guarantor or such Restricted Subsidiary. 
  
 The Company and the Parent Guarantor jointly and severally agree that the
Company and the Parent Guarantor shall provide or cause to be provided, for themselves and the Restricted Subsidiaries, insurance (including appropriate self-insurance) against loss or damage of the kinds customarily insured against by corporations
similarly situated and owning like properties with reputable insurers or with the government of the United States of America, or an agency or instrumentality thereof, in such amounts, with such deductibles and by such methods as the Company and the
Parent Guarantor in good faith shall determine to be reasonable and appropriate in the circumstances. 
  
 SECTION 4.16. Notice of Defaults. In the event that any Officer of the Company or the Parent Guarantor becomes aware of any Default or Event of
Default, the Company or the Parent Guarantor, as applicable, shall promptly deliver to the Trustee an Officers’ Certificate specifying such Default or Event of Default. 
  
 SECTION 4.17. Compliance Certificates. The Parent Guarantor shall deliver to the Trustee, within 90 days after the
end of each fiscal year, an Officers’ Certificate stating whether or not the signers know of any Default or Event of Default that occurred during such fiscal year and, that a review has been conducted of the activities of each of the Company,
the Parent Guarantor and the Restricted Subsidiaries and the Company’s, the Parent Guarantor’s and the Restricted Subsidiaries’ performance under this Indenture and that the Company, the Parent Guarantor and the Restricted
Subsidiaries have complied with all conditions and covenants under this Indenture. If any of the Officers of the Parent Guarantor signing such certificate has knowledge of such a Default or Event of Default, the certificate shall describe any such
Default or Event of Default and its status. 
  
 SECTION 4.18.
Commission Reports and Reports to Holders. The Parent Guarantor shall file with the Commission all such reports and other information required by Section 13(a) or 15(d) under the Exchange Act, regardless of whether such Sections of the
Exchange Act are applicable to the Parent Guarantor. The Parent Guarantor shall supply the Trustee and each Holder or shall supply to the Trustee for forwarding to each such Holder, at such Holder’s request and without cost to such Holder,
copies of such reports and other information within 15 days after the date it would have been required to file such reports or other information with the Commission had it been subject to such Sections; provided, however, that the
copies of such reports mailed to Holders may omit exhibits which the Company shall supply to any Holder at such Holder’s request. The Parent Guarantor also shall comply with the other provisions of TIA Section 314(a). 
  

 50 

 SECTION 4.19. Waiver of Stay, Extension or Usury Laws. The Company covenants (to the extent that
it may lawfully do so) that it shall not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law or any usury law or other law that would prohibit or forgive the Company
from paying all or any portion of the principal of, premium, if any, or interest on the Notes as contemplated herein, wherever enacted, now or at any time hereafter in force, or that may affect the covenants or the performance of this Indenture; and
(to the extent that it may lawfully do so) the Company hereby expressly waives all benefit or advantage of any such law and covenant that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer
and permit the execution of every such power as though no such law had been enacted. 
  
 SECTION 4.20. Future Subsidiary Guarantors. The Company and the Parent Guarantor jointly and severally agree to cause each Person that becomes a Domestic Restricted Subsidiary of the Company or the Parent
Guarantor following the Closing Date (and is eligible to be a Subsidiary Guarantor pursuant to the definition thereof) and any other entity that Guarantees any Indebtedness of the Company or the Parent Guarantor or any Domestic Restricted
Subsidiaries of the Company or the Parent Guarantor to execute and deliver to the trustee supplemental indentures pursuant to which such Domestic Restricted Subsidiary or other entity shall guarantee the payment and performance of the Notes at the
time such Person becomes a Domestic Restricted Subsidiary or Guarantees any such Indebtedness, as applicable. 
  
 ARTICLE FIVE 
 SUCCESSOR CORPORATION 
  
 SECTION 5.01. When Company and the Parent Guarantor May Merge,
Etc. The Company and the Parent Guarantor jointly and severally agree that neither the Company nor the Parent Guarantor shall consolidate with, merge with or into, or sell, convey, transfer, lease or otherwise dispose of all or
substantially all of its property and assets (as an entirety or substantially an entirety in one transaction or a series of related transactions) to, any Person or permit any Person to merge with or into the Company or the Parent Guarantor, as
applicable, unless: (i) the Company or the Parent Guarantor, as applicable, shall be the continuing Person, or the Person (if other than the Company or the Parent Guarantor, as applicable) formed by such consolidation or into which the Company or
the Parent Guarantor, as applicable, is merged or that acquired or leased such property and assets of the Company or the Parent Guarantor, as applicable, shall be a corporation organized and validly existing under the laws of the United States of
America or any jurisdiction thereof and shall expressly assume, by a supplemental indenture, executed and delivered to the Trustee, all of the obligations of the Company or the Parent Guarantor, as applicable, on all of the Notes or the Parent
Guarantee, as applicable, and under this Indenture; (ii) immediately after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing; (iii) immediately after giving effect to such transaction on a pro
forma basis the Company or the Parent Guarantor, as applicable, or any Person becoming the successor obligor of the Notes, as the case may be, could Incur at least $1.00 of Indebtedness under Section 4.03(a); provided that this clause (iii)
shall not apply to (x) a consolidation, merger or sale of all (but not less than all) of the assets of the Company or the Parent Guarantor, as applicable, if all Liens and Indebtedness of the Company or the Parent Guarantor, as applicable, or any
Person becoming the successor obligor on the Notes, as the case 

  

 51 

 
may be, and their Restricted Subsidiaries outstanding immediately after such transaction would, if Incurred at such time, have been permitted to be Incurred
(and all such Liens and Indebtedness, other than Liens and Indebtedness of the Company or the Parent Guarantor, as applicable, and their Restricted Subsidiaries outstanding immediately prior to the transaction, shall be deemed to have been Incurred)
for all purposes of this Indenture or (y) a consolidation, merger or sale of all or substantially all of the assets of the Company or the Parent Guarantor, as applicable, if immediately after giving effect to such transaction on a pro forma basis,
the Company or the Parent Guarantor, as applicable, or any Person becoming the successor obligor on the Notes shall have a Consolidated Leverage Ratio equal to or less than the Consolidated Leverage Ratio of the Company or the Parent Guarantor, as
applicable, immediately prior to such transaction; and (iv) the Company or the Parent Guarantor, as applicable, delivers to the Trustee an Officers’ Certificate (attaching the arithmetic computations to demonstrate compliance with clause (iii)
above) and an Opinion of Counsel, in each case stating that such consolidation, merger or transfer and such supplemental indenture complies with this provision and that all conditions precedent provided for herein relating to such transaction have
been complied with; provided, however, that clause (iii) above does not apply if, in the good faith determination of the Board of Directors of the Company or the Parent Guarantor, as applicable, whose determination shall be evidenced
by a Board Resolution, the principal purpose of such transaction is to change the state of incorporation of the Company or the Parent Guarantor, as applicable; and provided further that any such transaction shall not have as one of its
purposes the evasion of the foregoing limitations. In addition, clause (iii) shall not apply to any consolidation, merger, sale, conveyance, transfer, lease or other disposition of assets between or among the Company, the Parent Guarantor and any
Restricted Subsidiaries. 
  
 SECTION 5.02. Successor
Substituted. Upon any consolidation or merger, or any sale, conveyance, transfer, lease or other disposition of all or substantially all of the property and assets of the Company or the Parent Guarantor, as applicable, in accordance with Section
5.01 of this Indenture, the successor Person formed by such consolidation or into which the Company or the Parent Guarantor, as applicable, is merged or to which such sale, conveyance, transfer, lease or other disposition is made shall succeed to,
and be substituted for, and may exercise every right and power of, the Company under this Indenture or of the Parent Guarantor under the Parent Guarantee, with the same effect as if such successor Person had been named as the Company or the Parent
Guarantor, as applicable, herein; provided that the Company or the Parent Guarantor, as applicable, shall not be released from their obligations or covenants under this Indenture, including with respect to the payment of the principal of,
premium, if any, or interest on the Notes in the case of: (i) a sale, transfer, assignment, conveyance or other disposition (unless such sale, transfer, assignment, conveyance or other disposition is of all the assets of the Company or the Parent
Guarantor, as applicable, as an entirety or virtually as an entirety) or (ii) a lease. 
  
 ARTICLE SIX 
 DEFAULT AND REMEDIES 
  
 SECTION 6.01. Events of Default. Any of the following events shall constitute an “Event of Default”
hereunder: 
  
 (a) default in the payment of
principal of (or premium, if any, on) any Note when the same becomes due and payable at maturity, upon acceleration, redemption or otherwise; 
  

 52 

 (b) default in the payment of interest on any Note when the same becomes due and payable,
and such default continues for a period of 30 days; 
  
 (c) default in the performance or breach of the provisions of this Indenture applicable to mergers, consolidations and transfers of all or substantially all of the assets of the Company, the Parent Guarantor or the Restricted Subsidiaries
or the failure to make or consummate an Offer to Purchase in accordance with Section 4.11 or Section 4.12; 
  
 (d) the Company or the Parent Guarantor defaults in the performance of or breaches any other covenant or agreement of the Company or the
Parent Guarantor, as applicable, in this Indenture or under the Notes (other than a default specified in clause (a), (b) or (c) above), and such default or breach continues for a period of 30 consecutive days after written notice by the Trustee to
the Company or by the Holders of 25% or more in aggregate principal amount of the Notes to the Company and the Trustee; 
  
 (e) there occurs with respect to any issue or issues of Indebtedness of the Company, the Parent Guarantor or any Significant Subsidiary
having an outstanding principal amount of $20 million or more in the aggregate for all such issues of all such Persons, whether such Indebtedness now exists or shall hereafter be created, (A) an event of default that has caused the holder thereof to
declare such Indebtedness to be due and payable prior to its Stated Maturity and such Indebtedness has not been discharged in full or such acceleration has not been rescinded or annulled within 30 days of such acceleration and/or (B) the failure to
make a principal payment at the final (but not any interim) fixed maturity and such defaulted payment shall not have been made, waived or extended within 30 days of such payment default; 
  
 (f) any final judgment or order (not covered by insurance) for the payment of money in excess of $20 million
in the aggregate for all such final judgments or orders against all such Persons (treating any deductibles, self-insurance or retention as not so covered) shall be rendered against the Company, the Parent Guarantor or any Significant Subsidiary and
shall not be paid or discharged, and there shall be any period of 30 consecutive days following entry of the final judgment or order that causes the aggregate amount for all such final judgments or orders outstanding and not paid or discharged
against all such Persons to exceed $20 million during which a stay of enforcement of such final judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; 
  
 (g) a court having jurisdiction in the premises enters a decree or order for (A) relief in respect of the
Company, the Parent Guarantor or any Significant Subsidiary in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, (B) appointment of a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official of the Parent Guarantor, the Company or any 

  

 53 

 
Significant Subsidiary or for all or substantially all of the property and assets of the Company, the Parent Guarantor or any Significant Subsidiary or (C)
the winding up or liquidation of the affairs of the Company, the Parent Guarantor or any Significant Subsidiary and, in each case, such decree or order shall remain unstayed and in effect for a period of 30 consecutive days; 
  
 (h) the Company, the Parent Guarantor or any Significant
Subsidiary (A) commences a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or consents to the entry of an order for relief in an involuntary case under any such law, (B) consents to the
appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Company, the Parent Guarantor or any Significant Subsidiary or for all or substantially all of the property and
assets of the Company, the Parent Guarantor or any Significant Subsidiary or (C) effects any general assignment for the benefit of creditors; or 
  
 (i) (A) Subsidiary Guarantees provided by Subsidiary Guarantors that individually or together would constitute a Significant Subsidiary
cease to be in full force and effect (other than in accordance with the terms of such Subsidiary Guarantees or the terms of this Indenture) or any Subsidiary Guarantor denies or disaffirms its obligations under its Subsidiary Guarantee; or (B) the
Parent Guarantee ceases to be in full force and effect or the Parent Guarantor denies or disaffirms its obligations under the Parent Guarantee. 
  
 SECTION 6.02. Acceleration. If an Event of Default (other than an Event of Default specified in clause (g) or (h) of Section 6.01 that occurs with
respect to the Company, the Parent Guarantor or a Subsidiary Guarantor) occurs and is continuing under this Indenture, the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes then outstanding, by written notice to the
Company (and to the Trustee if such notice is given by the Holders), may, and the Trustee at the request of such Holders shall, declare the principal of, premium, if any, and accrued interest on the Notes to be immediately due and payable. Upon a
declaration of acceleration, such principal, premium, if any, and accrued interest shall be immediately due and payable. In the event of a declaration of acceleration because an Event of Default set forth in clause (e) of Section 6.01 has occurred
and is continuing, such declaration of acceleration shall be automatically rescinded and annulled if the event of default triggering such Event of Default pursuant to clause (e) shall be remedied or cured by the Company, the Parent Guarantor or the
relevant Significant Subsidiary or waived by the holders of the relevant Indebtedness within 60 days after the declaration of acceleration with respect thereto. If an Event of Default specified in clause (g) or (h) of Section 6.01 occurs with
respect to the Company, the Parent Guarantor or a Subsidiary Guarantor, the principal of, premium, if any, and accrued interest on the Notes then outstanding shall ipso facto become and be immediately due and payable without any declaration
or other act on the part of the Trustee or any Holder. 
  
 At any
time after such declaration of acceleration, but before a judgment or decree for the payment of the money due has been obtained by the Trustee, the Holders of at least a majority in principal amount of the outstanding Notes, by written notice to the
Company and to the Trustee, may waive all past Defaults and rescind and annul a declaration of acceleration and 

  

 54 

 
its consequences if (a) all existing Events of Default, other than the non-payment of the principal of, premium, if any, and accrued interest on the Notes
that have become due solely by such declaration of acceleration, have been cured or waived and (b) the rescission would not conflict with any judgment or decree of a court of competent jurisdiction. 
  
 SECTION 6.03. Other Remedies. If an Event of Default occurs and is
continuing, the Trustee may, and at the direction of the Holders of at least a majority in aggregate principal amount of the outstanding Notes shall, pursue any available remedy by proceeding at law or in equity to collect the payment of principal
of, premium, if any, or interest on the Notes or to enforce the performance of any provision of the Notes or this Indenture. 
  
 The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not produce any of them in the proceeding. 
  
 SECTION 6.04. Waiver of Past Defaults. Subject to Sections 6.02, 6.07
and 9.02, the Holders of at least a majority in aggregate principal amount of the outstanding Notes, by notice to the Trustee, may waive an existing Default or Event of Default and its consequences, except a Default in the payment of principal of,
premium, if any, or interest on any Note as specified in clause (a) or (b) of Section 6.01 or in respect of a covenant or provision of this Indenture which cannot be modified or amended without the consent of the Holder of each outstanding Note
affected. Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default
or Event of Default or impair any right consequent thereto. 
  
 SECTION 6.05. Control by Majority. The Holders of at least a majority in aggregate principal amount of the outstanding Notes may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee
or exercising any trust or power conferred on the Trustee; provided that the Trustee may refuse to follow any direction that conflicts with law or this Indenture, that may involve the Trustee in personal liability, or that the Trustee
determines in good faith may be unduly prejudicial to the rights of Holders of Notes not joining in the giving of such direction; and provided further that the Trustee may take any other action it deems proper that is not inconsistent with
any such direction received from Holders of Notes. 
  
 SECTION
6.06. Limitation on Suits. A Holder may not institute any proceeding, judicial or otherwise, with respect to this Indenture or the Notes, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless: 

 
 (i) the Holder has previously given the Trustee written
notice of a continuing Event of Default; 
  
 (ii)
the Holders of at least 25% in aggregate principal amount of outstanding Notes shall have made a written request to the Trustee to pursue such remedy; 
  
 (iii) such Holder or Holders offer the Trustee indemnity reasonably satisfactory to the Trustee against any costs, liability or expense;

  

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 (iv) the Trustee does not comply with the request within 60 days after receipt of the
request and the offer of indemnity; and 
  
 (v)
during such 60-day period, the Holders of a majority in aggregate principal amount of the outstanding Notes do not give the Trustee a direction that is inconsistent with the request. 
  
 For purposes of Section 6.05 of this Indenture and this Section 6.06, the Trustee shall comply with TIA Section 316(a) in
making any determination of whether the Holders of the required aggregate principal amount of outstanding Notes have concurred in any request or direction of the Trustee to pursue any remedy available to the Trustee or the Holders with respect to
this Indenture or the Notes or otherwise under the law. 
  
 A
Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a preference or priority over such other Holder. 
  
 SECTION 6.07. Rights of Holders to Receive Payment. Notwithstanding any other provision of this Indenture, the right of any Holder of a Note to
receive payment of the principal of, premium, if any, or interest on, such Note or to bring suit for the enforcement of any such payment, on or after the due date expressed in the Notes, shall not be impaired or affected without the consent of such
Holder. 
  
 SECTION 6.08. Collection Suit by Trustee. If an
Event of Default in payment of principal, premium or interest specified in clause (a), (b) or (c) of Section 6.01 occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust against the Company or
any other obligor of the Notes for the whole amount of principal, premium, if any, and accrued interest remaining unpaid, together with interest on overdue principal, premium, if any, and, to the extent that payment of such interest is lawful,
interest on overdue installments of interest, in each case at the rate specified in the Notes, 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, and any amounts due to the Trustee under Section 7.07. 
  
 SECTION 6.09. Trustee May File Proofs of Claim. The Trustee may file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07) and the
Holders allowed in any judicial proceedings relative to the Company (or any other obligor of the Notes), their creditors or their property and shall be entitled and empowered to collect and receive any monies, securities or other property payable or
deliverable upon conversion or exchange of the Notes or upon any such claims and to distribute the same, and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official 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 7.07. Nothing herein contained shall be 

  

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deemed to empower 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 thereof, or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding. 
  
 SECTION 6.10. Priorities. If the Trustee collects any money pursuant to this Article Six, it shall pay out the money
in the following order: 
  
 First: to the Trustee
for all amounts due under Section 7.07; 
  
 Second: to Holders for amounts then due and unpaid for principal of, premium, if any, and interest on the Notes in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any
kind, according to the amounts due and payable on such Notes for principal, premium, if any, and interest, respectively; and 
  
 Third: to the Company or any other obligors of the Notes, as their interests may appear, or as a court of competent jurisdiction may
direct. 
  
 The Trustee, upon prior written notice to the Company,
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 Trustee, a court in its discretion may require any party litigant in such suit to file 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 6.07, or a suit by Holders of more than 10% in principal amount of the outstanding Notes. 
  
 SECTION 6.12. Restoration of Rights and Remedies. If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under
this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then, and in every such case, subject to any determination in such proceeding, the Company, the
Trustee and the Holders shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Company, Trustee and the Holders shall continue as though no such proceeding had been instituted.

  
 SECTION 6.13. Rights and Remedies Cumulative. Except as
otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or wrongfully taken Notes in Section 2.06, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive
of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The
assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. 
  

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 SECTION 6.14. Delay or Omission Not Waiver. No delay or omission of the Trustee or of any Holder
to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article Six or by law to
the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case may be. 
  

ARTICLE SEVEN 
 TRUSTEE 
  
 SECTION 7.01. General. The duties and responsibilities of the Trustee
shall be as provided by the TIA and as set forth herein. Notwithstanding the foregoing, no provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of
its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. Whether or
not herein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Article Seven. 
  
 SECTION 7.02. Certain Rights of Trustee. Subject to TIA Sections
315(a) through (d): 
  
 (i) the Trustee may rely,
and shall be protected in acting or refraining from acting, upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or
document believed by it to be genuine and to have been signed or presented by the proper person; 
  
 (ii) before the Trustee acts or refrains from acting, it may require an Officers’ Certificate or an Opinion of Counsel, which shall
conform to Section 11.04. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such certificate or opinion; 
  
 (iii) 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 by it hereunder; 
  
 (iv) 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 or indemnity against the costs, expenses and liabilities that might be incurred by it in compliance with such request or direction; 
  
 (v) 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 its
rights or powers, provided that the Trustee’s conduct does not constitute gross negligence or bad faith; 
  

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 (vi) 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, rely upon an Officers’
Certificate; 
  
 (vii) 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 document, 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 the books, records and premises of the Company personally or by agent or attorney; 
  
 (viii) any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Order and any resolution of
the Board of Directors may be sufficiently evidenced by a Board Resolution; 
  
 (ix) the Trustee may consult with counsel and the written advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by
it hereunder in good faith and in reliance thereon; 
  
 (x) the Trustee shall not be charged with knowledge of any Default or Event of Default with respect to the Notes unless either (1) a Responsible Officer of the Trustee assigned to the Corporate Trust Department of the Trustee (or any
successor division or department of the Trustee) shall have actual knowledge of such Default or Event of Default or (2) written notice of such Default or Event of Default shall have been given to the Trustee by the Company or any other obligor on
the Notes or by any Holder of the Notes; and 
  
 (xi) the Trustee shall not be liable for any action taken, suffered or omitted by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture. 
  
 SECTION 7.03. Individual Rights of Trustee. The Trustee, in its
individual or any other capacity, may become the owner or pledgee of Notes and may otherwise deal with the Company or their respective Affiliates with the same rights it would have if it were not the Trustee. Any Agent may do the same with like
rights. However, the Trustee is subject to TIA Sections 310(b) and 311. 
  
 SECTION 7.04. Trustee’s Disclaimer. The Trustee (i) makes no representation as to the validity or adequacy of this Indenture or the Notes, (ii) shall not be accountable for the Company’s use or application of the proceeds
from the Notes and (iii) shall not be responsible for any statement in the Notes other than its certificate of authentication. 
  
 SECTION 7.05. Notice of Default. If any Default or any Event of Default occurs and is continuing and if such Default or Event of Default is known
to the Trustee, the 

  

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Trustee shall mail to each Holder in the manner and to the extent provided in TIA Section 313(c) notice of the Default or Event of Default within 45 days
after it occurs, unless such Default or Event of Default has been cured or waived; provided, however, that, except in the case of a default in the payment of the principal of, premium, if any, or interest on any Note, the Trustee shall
be protected in withholding such notice if and so long as the board of directors, the executive committee or a trust committee of directors and/or Responsible Officers of the Trustee in good faith determine that the withholding of such notice is in
the interest of the Holders. 
  
 SECTION 7.06. Reports by
Trustee to Holders. Within 60 days after each May 1, beginning with May 1, 2005, the Trustee shall mail to each Holder as provided in TIA Section 313(c) a brief report dated as of such May 1, if required by TIA Section 313(a). 
  
 A copy of each report at the time of its mailing to the Holders of Notes
shall be mailed to the Company and filed with the Commission and each stock exchange on which the Notes are listed in accordance with TIA Section 313(d). The Company shall promptly notify the Trustee when the Notes are listed on any stock exchange
or of any delisting thereof. 
  
 SECTION 7.07. Compensation and
Indemnity. The Company shall pay to the Trustee such compensation as shall be agreed upon in writing for its services hereunder. The compensation of the Trustee shall not be limited by any law on compensation of a trustee of an express trust.
The Company shall reimburse the Trustee upon request for all reasonable disbursements, expenses and advances incurred or made by the Trustee without negligence or bad faith on its part. Such expenses shall include the reasonable compensation and
expenses of the Trustee’s agents and counsel. 
  
 The Company
and the Guarantors shall, jointly and severally, indemnify the Trustee for, and hold it harmless against, any loss or liability or expense incurred by it without gross negligence or bad faith on its part in connection with the acceptance or
administration of this Indenture and its duties under this Indenture and the Notes, including the costs and expenses of defending itself against any claim or liability and of complying with any process served upon it or any of its officers in
connection with the exercise or performance of any of its powers or duties under this Indenture and the Notes. The Trustee shall notify the Company promptly of any claim for which it may seek indemnity. Failure by the Trustee to so notify the
Company shall not relieve the Company of its obligations hereunder, unless the Company or any Guarantor is materially prejudiced thereby. The Company shall defend the claim and the Trustee shall cooperate in the defense. Unless otherwise set forth
herein, the Trustee may have separate counsel and the Company shall pay the reasonable fees and expenses of such counsel. Neither the Company nor any Guarantor shall be required to pay for any settlement made without their consent, which consent
shall not be unreasonably withheld. Neither the Company nor any Guarantor shall be required to reimburse any expense or indemnity against loss or liability incurred by the Trustee through gross negligence or bad faith. 
  
 To secure the Company’s payment obligations in this Section 7.07, the
Trustee shall have a lien prior to the Notes on all money or property held or collected by the Trustee, in its capacity as Trustee, except money or property held in trust to pay principal of, premium, if any, and interest on particular Notes.

  

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 If the Trustee incurs expenses or renders services after the occurrence of an Event of Default specified
in clause (g) or (h) of Section 6.01, the expenses and the compensation for the services will be intended to constitute expenses of administration under Title 11 of the United States Bankruptcy Code or any applicable federal or state law for the
relief of debtors. 
  
 The provisions of this Section 7.07 shall
survive the resignation or removal of the Trustee and the termination of this Indenture. 
  
 The Trustee shall comply with the provisions of TIA Section 313(b)(2) to the extent applicable. 
  
 SECTION 7.08. 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 7.08. 
  
 The Trustee may resign at any time by so notifying the Company in writing at least 30 days prior to the date of the proposed resignation. The Holders of a majority in principal amount of the outstanding Notes may
remove the Trustee by so notifying the Trustee in writing and may appoint a successor Trustee with the consent of the Company. The Company may remove the Trustee if: (i) the Trustee is no longer eligible under Section 7.10; (ii) the Trustee is
adjudged a bankrupt or an insolvent; (iii) a receiver or other public officer takes charge of the Trustee or its property; or (iv) 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 Company shall
promptly appoint a successor Trustee. Within one year after the successor Trustee takes office, the Holders of a majority in principal amount of the outstanding Notes may appoint a successor Trustee to replace the successor Trustee appointed by the
Company. If the successor Trustee does not deliver its written acceptance required by the next succeeding paragraph of this Section 7.08 within 30 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company or the
Holders of a majority in principal amount of the outstanding Notes may, at the expense of the Company, petition any court of competent jurisdiction for the appointment of a successor Trustee. 
  
 A successor Trustee shall deliver a written acceptance of its appointment to
the retiring Trustee and to the Company. Immediately after the delivery of such written acceptance, subject to the lien provided in Section 7.07, (i) the retiring Trustee shall transfer all property held by it as Trustee to the successor Trustee,
(ii) the resignation or removal of the retiring Trustee shall become effective and (iii) the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. A successor Trustee shall mail notice of its succession
to each Holder. No successor Trustee shall accept its appointment unless at the time of such acceptance such successor Trustee shall be qualified and eligible under this Article. 
  
 If the Trustee is no longer eligible under Section 7.10 or shall fail to comply with TIA Section 310(b), any Holder who
satisfies the requirements of TIA Section 310(b) may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. If at any time the Trustee shall cease to be eligible in accordance with

  

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the provisions of this Section 7.08, the Trustee shall resign immediately in the manner and with the effect provided in this Section. 
  
 The Company shall give notice of any resignation and any removal of the
Trustee and each appointment of a successor Trustee to all Holders. Each notice shall include the name of the successor Trustee and the address of its Corporate Trust Office. 
  
 Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the Company’s obligation under Section 7.07
shall continue for the benefit of the retiring Trustee. 
  
 SECTION 7.09. Successor Trustee by Merger, Etc. If the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust business to, another corporation or national banking association,
the resulting, surviving or transferee corporation or national banking association without any further act shall be the successor Trustee with the same effect as if the successor Trustee had been named as the Trustee herein, provided such
corporation shall be otherwise qualified and eligible under this Article. 
  
 SECTION 7.10. Eligibility. This Indenture shall always have a Trustee who satisfies the requirements of TIA Section 310(a)(1). The Trustee shall have a combined capital and surplus of at least $50 million as
set forth in its most recent published annual report of condition that is subject to the requirements of applicable federal or state supervising or examining authority. If at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section, the Trustee shall resign immediately in the manner and with the effect specified in this Article. 
  
 SECTION 7.11. Money Held in Trust. The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in
writing with the Company. 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 under Article Eight of this Indenture. 
  
 ARTICLE EIGHT 
 DISCHARGE OF INDENTURE 
  
 SECTION 8.01. Termination of Company’s Obligations. Except as otherwise provided in this Section 8.01, the Company may terminate its obligations under the Notes and this Indenture if: 
  
 (i) all Notes previously authenticated and delivered (other
than destroyed, lost or stolen Notes that have been replaced or Notes that are paid pursuant to Section 4.01 or Notes for whose payment money or securities have theretofore been held in trust and thereafter repaid to the Company, as provided in
Section 8.05) have been delivered to the Trustee (A) for cancellation and the Company has paid all sums payable by them hereunder or (B) in exchange for Exchange Notes issued pursuant to Article Two and the 2014 Indenture; or 
  
 (ii) (A) the Notes mature within one year or all of them are
to be called for redemption within one year under arrangements satisfactory to the Trustee for giving the 

  

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notice of redemption, (B) the Company irrevocably deposits in trust with the Trustee during such one-year period, under the terms of an irrevocable trust
agreement in form and substance satisfactory to the Trustee, as trust funds solely for the benefit of the Holders for that purpose, money or U.S. Government Obligations sufficient (in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the Trustee), without consideration of any reinvestment of any interest thereon, to pay principal, premium, if, any, and interest on the Notes to maturity or redemption, as the
case may be, and to pay all other sums payable by it hereunder, (C) no Default or Event of Default with respect to the Notes shall have occurred and be continuing on the date of such deposit, (D) such deposit will not result in a breach or violation
of, or constitute a default under, this Indenture or any other agreement or instrument to which the Company is a party or by which they are bound and (E) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, in each case stating that all conditions precedent provided for herein relating to the satisfaction and discharge of this Indenture have been complied with. 
  
 With respect to the foregoing clause (i), the Company’s obligations under Section 7.07 shall survive. With respect to
the foregoing clause (ii), the Company’s obligations in Sections 2.02, 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 2.09, 2.14, 4.01, 4.02, 7.07, 7.08, 8.04, 8.05 and 8.06 shall survive until the Notes are no longer outstanding. Thereafter, only the
Company’s obligations in Sections 7.07, 8.04, 8.05 and 8.06 shall survive. After any such irrevocable deposit, the Trustee upon request shall acknowledge in writing the discharge of the Company’s obligations under the Notes and this
Indenture except for those surviving obligations specified above. 
  
 SECTION 8.02. Defeasance and Discharge of Indenture. The Obligors will be deemed to have paid and will be discharged from any and all obligations in respect of the Notes on the 123rd day after the date of the deposit referred to in
clause (A) of this Section 8.02, and the provisions of this Indenture will no longer be in effect with respect to the Notes, and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging the same if: 
  
 (A) with reference to this Section 8.02, the Company has
irrevocably deposited or caused to be irrevocably deposited with the Trustee (or another trustee satisfying the requirements of Section 7.10) and conveyed all right, title and interest to the Trustee for the benefit of the Holders, under the terms
of an irrevocable trust agreement in form and substance satisfactory to the Trustee as trust funds in trust, specifically pledged to the Trustee for the benefit of the Holders as security for payment of the principal of, premium, if any, and
interest, if any, on the Notes, and dedicated solely to, the benefit of the Holders, in and to (1) money in an amount, (2) U.S. Government Obligations that, through the payment of interest, premium, if any, and principal in respect thereof in
accordance with their terms, will provide, not later than one day before the due date of any payment referred to in this clause (A), money in an amount or (3) a combination thereof in an amount sufficient, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge, without consideration of the reinvestment of such interest and after payment of all federal, state and local taxes

  

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or other charges and assessments in respect thereof payable by the Trustee, the principal of, premium, if any, and interest on the outstanding Notes on the
Stated Maturity of such principal or interest; provided that the Trustee shall have been irrevocably instructed to apply such money or the proceeds of such U.S. Government Obligations to the payment of such principal, premium, if any, and
interest with respect to the Notes; 
  
 (B) the
Company has delivered to the Trustee (1) either (x) an Opinion of Counsel to the effect that Holders will not recognize income, gain or loss for federal income tax purposes as a result of the Company’s exercise of its option under this Section
8.02 and will be subject to federal income tax on the same amount and in the same manner and at the same times as would have been the case if such option had not been exercised, which Opinion of Counsel shall be based upon (and accompanied by a copy
of) a ruling of the Internal Revenue Service to the same effect unless there has been a change in applicable federal income tax law after the Closing Date such that a ruling is no longer required or (y) a ruling directed to the Trustee received from
the Internal Revenue Service to the same effect as the aforementioned Opinion of Counsel and (2) an Opinion of Counsel to the effect that the creation of the defeasance trust does not violate the Investment Company Act of 1940 and that after the
passage of 123 days following the deposit (except, with respect to any trust funds for the account of any Holder who may be deemed to be an “insider” for purposes of the United States Bankruptcy Code, after one year following the deposit),
the trust funds will not be subject to the effect of Section 547 of the United States Bankruptcy Code or Section 15 of the New York Debtor and Creditor Law; 
  
 (C) immediately after giving effect to such deposit, on a pro forma basis, no Default or Event of Default shall have occurred and be
continuing on the date of such deposit or during the period ending on the 123rd day after such date of such deposit, and such deposit shall not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement
or instrument to which the Company, the Parent Guarantor or any of their Subsidiaries is a party or by which the Company, the Parent Guarantor or any of their Subsidiaries is bound; 
  
 (D) if the Notes are then listed on a national securities exchange, the Company has delivered to the Trustee
an Opinion of Counsel to the effect that the Notes will not be delisted as a result of such deposit, defeasance and discharge; and 
  
 (E) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, in each case stating that all
conditions precedent provided for herein relating to the defeasance contemplated by this Section 8.02 have been complied with. 
  
 Notwithstanding the foregoing, prior to the end of the 123-day (or one-year) period referred to in clause (B)(2) of this Section 8.02, none of the
Company’s or the Parent Guarantor’s obligations under this Indenture shall be discharged. Subsequent to the end of such 123-day (or one-year) period with respect to this Section 8.02, the Company’s obligations in Sections 2.02, 2.03,
2.04, 2.05, 2.06, 2.07, 2.08, 2.09, 2.14, 4.01, 4.02, 7.07, 7.08, 8.04, 8.05, 8.06 and the rights, powers, trusts, duties and immunities of the Trustee hereunder shall survive until the Notes are no longer outstanding. Thereafter, only the
Company’s obligations in 

  

 64 

 
Sections 7.07, 8.04, 8.05 and 8.06 shall survive. If and when a ruling from the Internal Revenue Service or an Opinion of Counsel referred to in clause
(B)(1) of this Section 8.02 is able to be provided specifically without regard to, and not in reliance upon, the continuance of the Company’s obligations under Section 4.01, then the Company’s obligations under such Section 4.01 shall
cease upon delivery to the Trustee of such ruling or Opinion of Counsel and compliance with the other conditions precedent provided for herein relating to the defeasance contemplated by this Section 8.02. 
  
 After any such irrevocable deposit, the Trustee upon request shall
acknowledge in writing the discharge of the Company’s obligations under the Notes and this Indenture except for those surviving obligations in the immediately preceding paragraph. 
  
 SECTION 8.03. Defeasance of Certain Obligations. The Obligors may omit to comply with any term, provision or
condition set forth in clause (iii) of Section 5.01 and Sections 4.03 through 4.12 and Section 4.20, and clause (c) of Section 6.01 with respect to clauses (iii) of Section 5.01, clause (d) of Section 6.01 with respect to Sections 4.01 through 4.12
and Section 4.20, and clauses (e) and (f) of Section 6.01 shall be deemed not to be Events of Default, in each case, with respect to the outstanding Notes if: 
  

(i) with reference to this Section 8.03, the Company has irrevocably deposited or caused to be irrevocably deposited with the Trustee
(or another trustee satisfying the requirements of Section 7.10) and conveyed all right, title and interest to the Trustee for the benefit of the Holders, under the terms of an irrevocable trust agreement in form and substance satisfactory to the
Trustee as trust funds in trust, specifically pledged to the Trustee for the benefit of the Holders as security for payment of the principal of, premium, if any, and interest, if any, on the Notes, and dedicated solely to, the benefit of the
Holders, in and to (A) money in an amount, (B) U.S. Government Obligations that, through the payment of interest, premium, if any, and principal in respect thereof in accordance with their terms, will provide, not later than one day before the due
date of any payment referred to in this clause (i), money in an amount or (C) a combination thereof in an amount sufficient, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, to pay and discharge, without consideration of the reinvestment of such interest and after payment of all federal, state and local taxes or other charges and assessments in respect thereof payable by the Trustee,
the principal of, premium, if any, and interest on the outstanding Notes on the Stated Maturity of such principal or interest; provided that the Trustee shall have been irrevocably instructed to apply such money or the proceeds of such U.S.
Government Obligations to the payment of such principal, premium, if any, and interest with respect to the Notes; 
  
 (ii) the Company has delivered to the Trustee an Opinion of Counsel to the effect that (A) the creation of the defeasance trust does not
violate the Investment Company Act of 1940, (B) after the passage of 123 days following the deposit (except, with respect to any trust funds for the account of any Holder who may be deemed to be an “insider” for purposes of the United
States Bankruptcy Code, after one year following the deposit), the trust funds will not be subject to the effect of Section 547 of the United States Bankruptcy Code or Section 15 of the New York Debtor and Creditor Law, (C) the 

  

 65 

 
Holders will not recognize income, gain or loss for federal income tax purposes as a result of such deposit and defeasance of certain covenants and Events of
Default and will be subject to federal income tax on the same amount and in the same manner and at the same times as would have been the case if such deposit and defeasance had not occurred and (D) the Trustee, for the benefit of the Holders, has a
valid first-priority security interest in the trust funds; 
  
 (iii) immediately after giving effect to such deposit on a pro forma basis, no Default or Event of Default shall have occurred and be continuing on the date of such deposit or during the period ending on the 123rd day
after such date of such deposit, and such deposit shall not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement or instrument to which the Company, the Parent Guarantor or any of their
Subsidiaries is a party or by which the Company, the Parent Guarantor or any of their Subsidiaries is bound; 
  
 (iv) the Notes are then listed on a national securities exchange, the Company has delivered to the Trustee an Opinion of Counsel to the
effect that the Notes will not be delisted as a result of such deposit, defeasance and discharge; and 
  
 (v) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, in each case stating that all
conditions precedent provided for herein relating to the defeasance contemplated by this Section 8.03 have been complied with. 
  
 SECTION 8.04. Application of Trust Money. Subject to Sections 8.05 and 8.06, the Trustee or Paying Agent shall hold in trust money or U.S.
Government Obligations deposited with it pursuant to Section 8.01, 8.02 or 8.03, as the case may be, and shall apply the deposited money and the money from U.S. Government Obligations in accordance with the Notes and this Indenture to the payment of
principal of, premium, if any, and interest on the Notes; but such money need not be segregated from other funds except to the extent required by law. 
  
 SECTION 8.05. Repayment to Company. Subject to Sections 7.07, 8.01, 8.02 and 8.03, the Trustee and the Paying Agent shall promptly pay to the
Company upon request set forth in an Officers’ Certificate any excess money held by them at any time and thereupon shall be relieved from all liability with respect to such money. The Trustee and the Paying Agent shall pay to the Company upon
request any money held by them for the payment of principal, premium, if any, or interest that remains unclaimed for two years; provided that the Trustee or Paying Agent before being required to make any payment may cause to be published at
the expense of the Company once in a newspaper of general circulation in The City of New York or mail to each Holder entitled to such money at such Holder’s address (as set forth in the Security Register) notice that such money remains
unclaimed and that after a date specified therein (which shall be at least 30 days from the date of such publication or mailing) any unclaimed balance of such money then remaining will be repaid to the Company. After payment to the Company, Holders
entitled to such money must look to the Company for payment as general creditors unless an applicable law designates another Person, and all liability of the Trustee and such Paying Agent with respect to such money shall cease. 
  

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 SECTION 8.06. Reinstatement. If the Trustee or Paying Agent is unable to apply any money or U.S.
Government Obligations in accordance with Section 8.01, 8.02 or 8.03, as the case may be, by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Company’s obligations under this Indenture and the Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.01, 8.02 or 8.03, as the case may be, until such time as the Trustee or
Paying Agent is permitted to apply all such money or U.S. Government Obligations in accordance with Section 8.01, 8.02 or 8.03, as the case may be; provided that, if the Company has made any payment of principal of, premium, if any, or
interest on any Notes because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money or U.S. Government Obligations held by the Trustee or Paying
Agent. 
  
 ARTICLE NINE 
 AMENDMENTS, SUPPLEMENTS AND WAIVERS 
  
 SECTION 9.01. Without Consent of Holders. The Company, the Parent Guarantor and the Subsidiary Guarantors, when authorized by a resolution of their
respective Boards of Directors (as evidenced by Board Resolutions), and the Trustee may amend or supplement this Indenture or the Notes without notice to or the consent of any Holder: 
  
 (1) to cure any ambiguity, defect or inconsistency in this Indenture; provided that such amendments
or supplements shall not, in the good faith opinion of the Board of Directors of the Parent Guarantor as evidenced by a Board Resolution, adversely affect the interests of the Holders in any material respect; 
  
 (2) to comply with Article Five; 
  
 (3) to comply with any requirements of the Commission in
connection with the qualification of this Indenture under the TIA; 
  
 (4) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee; 
  
 (5) to provide for uncertificated Notes in addition to or in place of certificated Notes; 
  
 (6) to add one or more additional Guarantees on the terms
required by this Indenture; or 
  
 (7) to make
any change that, in the good faith opinion of the Board of Directors of the Parent Guarantor as evidenced by a Board Resolution, does not materially and adversely affect the rights of any Holder. 
  
 SECTION 9.02. With Consent of Holders. Subject to Sections 6.04 and
6.07 and without prior notice to the Holders, the Company, the Parent Guarantor and the Subsidiary Guarantors, when authorized by their Board of Directors (as evidenced by a Board Resolution), and the Trustee may amend this Indenture and the Notes
with the written consent of the Holders 

  

 67 

 
of a majority in aggregate principal amount of the Notes then outstanding, and the Holders of a majority in aggregate principal amount of the Notes then
outstanding by written notice to the Trustee may waive future compliance by the Company, the Parent Guarantor or the Subsidiary Guarantors with any provision of this Indenture or the Notes. 
  
 Notwithstanding the provisions of this Section 9.02, without the consent of
each Holder affected, an amendment or waiver, including a waiver pursuant to Section 6.04, may not: 
  
 (i) change the Stated Maturity of the principal of, or any installment of interest on, any Note; 
  
 (ii) reduce the principal amount of, premium, if any, or
interest or liquidated damages, if any, on any Note; 
  
 (iii) change the place or currency of payment of principal of, premium, if any, or interest or liquidated damages, if any, on any Note; 
  
 (iv) impair the right to institute suit for the enforcement of any payment on or after the Stated Maturity (or, in the case of redemption,
on or after the Redemption Date) on any Note or the Parent Guarantee or any Subsidiary Guarantee; 
  
 (v) reduce the percentage or principal amount of outstanding Notes the consent of whose Holders is necessary to modify or amend this
Indenture or to waive compliance with certain provisions of or certain Defaults under this Indenture; 
  
 (vi) waive a default in the payment of principal of, premium, if any, or interest or liquidated damages, if any, on any Note; 

 
 (vii) modify any of the provisions of this Section 9.02,
except to increase any such percentage 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 
  
 (viii) release the Parent Guarantee or any Subsidiary
Guarantee other than pursuant to the terms of this Indenture. 
  
 It shall not be necessary for the consent of the Holders under this Section 9.02 to approve the particular form of any proposed amendment, supplement or waiver, but it shall be sufficient if such consent approves the substance thereof.

  
 After an amendment, supplement or waiver under this Section
9.02 becomes effective, the Company shall mail to the Holders affected thereby a notice briefly describing the amendment, supplement or waiver. The Company will mail supplemental indentures to Holders upon request. Any failure of the Company to mail
such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture or waiver. 
  
 SECTION 9.03. Revocation and Effect of Consent. Until an amendment or waiver becomes effective, a consent to it by a Holder is a continuing consent
by the Holder and 

  

 68 

 
every subsequent Holder of a Note or portion of a Note that evidences the same debt as the Note of the consenting Holder, even if notation of the consent is
not made on any Note. However, any such Holder or subsequent Holder may revoke the consent as to its Note or portion of its Note. Such revocation shall be effective only if the Trustee receives the notice of revocation before the date the amendment,
supplement or waiver becomes effective. An amendment, supplement or waiver shall become effective on receipt by the Trustee of written consents from the Holders of the requisite percentage in principal amount of the outstanding Notes. 
  
 The Company may, but shall not be obligated to, fix a record date for the
purpose of determining the Holders entitled to consent to any amendment, supplement or waiver. If a record date is fixed, then, notwithstanding the last two sentences of the immediately preceding paragraph, those Persons who were Holders at such
record date (or their duly designated proxies) and only those Persons shall be entitled to consent to such amendment, supplement or waiver or to revoke any consent previously given, whether or not such persons continue to be Holders after such
record date. No such consent shall be valid or effective for more than 90 days after such record date. 
  
 After an amendment, supplement or waiver becomes effective, it shall bind every Holder unless it is of the type described in the second paragraph of
Section 9.02. In case of an amendment or waiver of the type described in the second paragraph of Section 9.02, the amendment or waiver shall bind each Holder who has consented to it and every subsequent Holder of a Note that evidences the same
indebtedness as the Note of the consenting Holder. 
  
 SECTION
9.04. Notation on or Exchange of Notes. If an amendment, supplement or waiver changes the terms of a Note, the Trustee may require the Holder to deliver such Note to the Trustee. At the Company’s expense, the Trustee may place an
appropriate notation on the Note about the changed terms and return it to the Holder and the Trustee may place an appropriate notation on any Note thereafter authenticated. Alternatively, if the Company or the Trustee so determines, the Company in
exchange for the Note shall issue, and the Trustee shall authenticate, a new Note that reflects the changed terms. Failure to make the appropriate notation, or issue a new Note, shall not affect the validity and effect of such amendment, supplement
or waiver. 
  
 SECTION 9.05. Trustee to Sign Amendments,
Etc. The Trustee shall be entitled to receive, and shall be fully protected in relying upon, an Opinion of Counsel complying with Section 11.03 and stating that the execution of any amendment, supplement or waiver authorized pursuant to this
Article Nine is authorized or permitted by this Indenture and that it will be valid and binding upon the Company. Subject to the preceding sentence, the Trustee shall sign such amendment, supplement or waiver if the same does not adversely affect
the rights, duties, liabilities or immunities of the Trustee. The Trustee may, but shall not be obligated to, execute any such amendment, supplement or waiver that affects the Trustee’s own rights, duties or immunities under this Indenture or
otherwise. 
  
 SECTION 9.06. Conformity with Trust Indenture
Act. Every supplemental indenture executed pursuant to this Article Nine shall conform to the requirements of the TIA as then in effect. 
  

 69 

 ARTICLE TEN 
 NOTE GUARANTEES 
  
 SECTION 10.01.
Note Guarantees. Subject to this Article Ten, each Guarantor hereby, jointly and severally, fully and unconditionally guarantees to each Holder of a Note and to the Trustee and its successors and assigns, irrespective of the validity and
enforceability of this Indenture, the Notes or the obligations of the Company hereunder or thereunder, that: (a) the principal of, and premium, if any, and interest and liquidated damages, if any, on, the Notes will be promptly paid in full when
due, whether at maturity, by acceleration, redemption or otherwise, and interest on the overdue premium, if any, and interest and liquidated damages, if any, on the Notes, if any, if lawful, and all other obligations of the Company to the Holders or
the Trustee hereunder or thereunder will be promptly paid in full or performed, all in accordance with the terms hereof and thereof; and (b) in the case of any extension of time of payment or renewal of any Notes or any of such other obligations,
that the same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise. Failing payment when due of any amount so guaranteed or any
performance so guaranteed for whatever reason, such Guarantor shall be obligated to pay the same immediately. Each Guarantor agrees that this is a guarantee of payment and not a guarantee of collection. 
  
 Subject to Section 10.02, 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 of the Notes 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 that might otherwise constitute a legal or equitable discharge or defense of a guarantor. Each Guarantor hereby
waives diligence, presentment, demand of 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, protest, notice and all demands whatsoever and
covenant that this Note Guarantee shall not be discharged except by complete performance of the obligations contained in the Notes and this Indenture. 
  
 If any Holder or the Trustee is required by any court or otherwise to return to the Company, each Guarantor or any custodian, trustee, liquidator or other
similar official acting in relation to either the Company or any Guarantor, any amount paid by either to the Trustee or such Holder, this Note Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect. 

 
 Each Guarantor agrees that it shall not be entitled to any right of
subrogation in relation to the Holders in respect of any obligations guaranteed hereby until payment in full of all obligations guaranteed hereby. Each Guarantor further agrees that, as between the Holders and the Trustee, (x) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article Six for the purposes of this Note Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed
hereby, and (y) in the event of any declaration of acceleration of such obligations as provided in Article Six, such obligations (whether or not due and payable) shall forthwith become due and payable by such Guarantor for the purpose of this Note
Guarantee. 
  

 70 

 SECTION 10.02. Limitation on Guarantor Liability. Each Guarantor, and by its acceptance of Notes,
each Holder, hereby confirms that it is the intention of all such parties that this Note Guarantee does not constitute a fraudulent transfer or conveyance for purposes of United States Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the
Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to any guarantee. To effectuate the foregoing intention, the Trustee, the Holders and each Guarantor hereby irrevocably agree that the obligations of each
Guarantor under this Note Guarantee and this Article Ten shall be limited to the maximum amount as will, after giving effect to such maximum amount and all other contingent and fixed liabilities of each Guarantor that are relevant under such laws,
result in the obligations of such Guarantor under this Note Guarantee to not constitute a fraudulent transfer or conveyance. 
  
 SECTION 10.03. Execution and Delivery of Note Guarantees. Each Guarantor hereby agrees that its execution and delivery of this Indenture or any
supplemental indentures pursuant to Sections 4.07 and 4.20 and this Section 10.03 shall evidence its Note Guarantee set forth in Section 10.01 without the need for any further notation on the Notes. 
  
 Each of the Guarantors hereby agrees that its Note Guarantee set forth in
Section 10.01 shall remain in full force and effect notwithstanding any failure to endorse on each Note a notation relating to such Note Guarantee. 
  
 If an Officer of a Guarantor whose signature is on this Indenture or any supplemental indenture no longer holds that office at the time the Trustee
authenticates the Notes or at any time thereafter, such Guarantor’s Note Guarantee shall be valid nevertheless. 
  
 The delivery of any Note by the Trustee, after the authentication thereof hereunder, shall constitute due delivery of the Note Guarantee set forth in this
Indenture on behalf of each Guarantor. 
  
 In the event that the
Company or the Parent Guarantor creates or acquires any new Subsidiaries or other guarantors subsequent to the date of this Indenture, if required by Section 4.07 or 4.20, the Company and the Parent Guarantor jointly and severally agree to cause
such Subsidiaries or other guarantors to execute supplemental indentures to this Indenture and Note Guarantees in accordance with Section 4.07 or 4.20 and this Article Ten, to the extent applicable. In addition, the Parent Guarantor and the Company
jointly and severally agree to cause each of the following Domestic Restricted Subsidiaries (the “Prospective Subsidiary Guarantors”) to execute and deliver, as soon as practicable but in no event later than 90 days following the Closing
Date, a supplemental indenture to this Indenture providing for issuance by such Domestic Restricted Subsidiary of a Subsidiary Guarantee of payment of the Notes: (i) Time Warner Telecom of Georgia, L.P., (ii) Time Warner Telecom of Hawaii, L.P.,
(iii) Time Warner Telecom of Indiana, L.P., (iv) Time Warner Telecom of the Mid-South, LLC, (v) Time Warner Telecom of New Jersey, L.P., (vi) Time Warner Telecom – N.Y., L.P., and (vii) Time Warner Telecom of Arizona LLC. Notwithstanding the
foregoing, the Trustee shall extend the date for compliance with the covenant set forth in the immediately preceding sentence or waive such compliance with respect to such Prospective Subsidiary Guarantors which in the aggregate have assets (forming
part of the Collateral, as defined in Section 1.01 of the 2011 Indenture) the aggregate book value of which (A) does not, following the expiry of such 90-day period, exceed 

  

 71 

 
10% of the book value of the Parent Guarantor’s total assets on a consolidated basis as of the end of the last quarter for which financial statements
have been provided to the Commission pursuant to the provisions under Section 4.18 and (B) does not, following the expiry of a period of 120 days following the Closing Date, exceed 5% of such book value, in each case, as certified to the Trustee by
the Parent Guarantor in an Officer’s Certificate (on which the Trustee may conclusively rely). The Parent Guarantor and the Company further jointly and severally agree that, notwithstanding any other provision to the contrary herein, each such
Prospective Subsidiary Guarantor shall, upon execution and delivery of such supplemental indenture, be deemed to be a Subsidiary Guarantor for all purposes hereunder (including, without limitation, for purposes of this Article Ten). The Parent
Guarantor and the Company jointly and severally represent and warrant that the Prospective Subsidiary Guarantors are, on the date hereof, excluded from being Subsidiary Guarantors solely by virtue of clause (1) of the definition of Subsidiary
Guarantor and that all of the existing Domestic Restricted Subsidiaries of the Company and the Parent Company other than the Prospective Subsidiary Guarantors and those Domestic Restricted Subsidiaries that shall have executed this Indenture as of
the date hereof are, by virtue of clause (2) of such definition, excluded from being Subsidiary Guarantors. 
  
 SECTION 10.04. Release of Subsidiary Guarantor. (a) Any Subsidiary Guarantor shall be released and relieved of any obligations under its Subsidiary
Guarantee, (i) upon any sale or other disposition (in a transaction that complies with this Indenture) by the Company, the Parent Guarantor and their Restricted Subsidiaries of their Capital Stock or other ownership interests in such Subsidiary
Guarantor such that such Subsidiary Guarantor immediately following such sale or disposition ceases to be a Subsidiary of any such entity; (ii) upon the sale of all or substantially all of the assets of such Subsidiary in a transaction that complies
with this Indenture; (iii) if the Company properly designates that Subsidiary Guarantor as an Unrestricted Subsidiary under this Indenture; or (iv) upon the release or discharge of the Guarantee which resulted in the creation of such Subsidiary
Guarantee pursuant to Section 4.07(b) hereof, except a discharge or release by or as a result of payment under such Guarantee. Upon delivery by the Company to the Trustee of an Officers’ Certificate and an Opinion of Counsel to the effect that
one of the foregoing requirements has been satisfied and the conditions to the release of a Subsidiary Guarantor under this Section 10.04 have been met, the Trustee shall execute any documents reasonably required in order to evidence the release of
such Subsidiary Guarantor from its obligations under its Subsidiary Guarantee. 
  
 (b) Any Subsidiary Guarantor not released, in accordance with the terms of this Indenture, from its obligations under its Subsidiary Guarantee shall remain liable for the full amount of principal of, interest,
premium, if any, and liquidated damages, if any, on the Notes and for the other obligations of any Subsidiary Guarantor under this Indenture as provided in this Article Ten. 
  
 ARTICLE ELEVEN 
 MISCELLANEOUS 
  
 SECTION 11.01. Trust Indenture Act
of 1939. Prior to the effectiveness of the Registration Statement, this Indenture shall incorporate and be governed by the provisions of the TIA that are required to be part of and to govern indentures qualified under the TIA. After the
effectiveness of the Registration Statement, this Indenture shall be subject to the provisions of 

  

 72 

 
the TIA that are required to be a part of this Indenture and shall, to the extent applicable, be governed by such provisions. 
  
 SECTION 11.02. Notices. Any notice or communication shall be
sufficiently given if in writing and delivered in person, mailed by first-class mail or sent by telecopier transmission addressed as follows: 
  
 if to the Company or the Parent Guarantor: 
  
 Time Warner Telecom Inc. 
 10475 Park Meadows
Drives 
 Littleton, CO 80124 
 Telecopier No.: (303) 566-1777 
 Attention: Paul B. Jones 
  
 if to the Trustee: 
  
 Wells Fargo Bank, National Association 
 N9303-120, Sixth Street and Marquette Avenue 
 Minneapolis, Minnesota 55479 
 Telecopier No: (612) 667-9825 
 Attention:
Corporate Trust Services 
  
 The Company or the Trustee by notice
to the other may designate additional or different addresses for subsequent notices or communications. 
  
 Any notice or communication mailed to a Holder shall be mailed to it at its address as it appears on the Security Register by first-class mail and shall
be sufficiently given to him if so mailed within the time prescribed. Any notice or communication shall also be so mailed to any Person described in TIA Section 313(c), to the extent required by the TIA. Copies of any such communication or notice to
a Holder shall also be mailed to the Trustee and each Agent at the same time. 
  
 Failure to mail notice or communication to a Holder as provided herein or any defect in any such notice or communication shall not affect its sufficiency with respect to other Holders. Except for a notice to the
Trustee, which is deemed given only when received, and except as otherwise provided in this Indenture, if a notice or communication is mailed in the manner provided in this Section 11.02, it is duly given, whether or not the addressee receives it.

  
 Where this Indenture provides for notice in any manner, such
notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such filing
shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. 
  
 In case by reason of the suspension of regular mail service or by reason of any other cause it shall be impracticable to give such notice by mail, then
such notification as shall be 

  

 73 

 
made with the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder. 
  
 Holders may communicate pursuant to TIA Section 312(b) with other Holders
with respect to their rights under this Indenture or the Notes. The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA Section 312(c). 
  
 SECTION 11.03. Certificate and Opinion as to Conditions Precedent. Upon any request or application by the Company to
the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee: 
  
 (i) an Officers’ Certificate stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with; and 
  
 (ii) an Opinion of Counsel stating that, in the opinion of such Counsel, all such conditions precedent have been complied with. 
  

SECTION 11.04. Statements Required in Certificate or Opinion. Each certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture shall include: 
  
 (i) a statement that each person signing such certificate or opinion has read such covenant or condition and the definitions herein relating thereto; 
  

(ii) a brief statement as to the nature and scope of the examination or investigation upon which the statement or opinion contained in
such certificate or opinion is based; 
  
 (iii) a
statement that, in the opinion of each such person, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and 
  
 (iv) a statement as to whether or not, in the opinion of
each such person, such condition or covenant has been complied with; provided, however, that, with respect to matters of fact, an Opinion of Counsel may rely on an Officers’ Certificate or certificates of public officials.

  
 SECTION 11.05. Acts of Holders. (a) Any request,
demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in
person or by an agent duly appointed in writing or may be embodied in or evidenced by an electronic transmission which identifies the documents containing the proposal on which such consent is requested and certifies such Holders’ consent
thereto and agreement to be bound thereby; and except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee, and, where it is hereby expressly required, to the
Company. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of 

  

 74 

 
this Indenture and (subject to Section 7.01) conclusive in favor of the Trustee and the Company, if made in the manner provided in this Section. 

 
 (b) The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness to such execution or by the certificate of any notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such
instrument or writing acknowledged to him the execution thereof. Where such execution is by an officer of a corporation or a member of a partnership, on behalf of such corporation or partnership, such certificate or affidavit shall also constitute
sufficient proof of his authority. The fact and date of the execution of any such instrument or writing, or the authority of the person executing the same, may also be proved in any other manner which the Trustee deems sufficient. 
  
 (c) The ownership of Notes shall be proved by the Security Register.

  
 (d) Any request, demand, authorization, direction, notice,
consent, waiver or other action by the Holder of any Note shall bind every future Holder of the same Note or the Holder of every Note issued upon the transfer thereof or in exchange therefor or in lieu thereof, in respect of anything done, suffered
or omitted to be done by the Trustee, any Paying Agent or the Company in reliance thereon, whether or not notation of such action is made upon such Note. 
  
 (e) If the Company shall solicit from the Holders any request, demand, authorization, direction, notice, consent, waiver or other action, the Company may,
at its option, by Board Resolution, fix in advance a record date for the determination of Holders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other action, but the Company shall have no obligation to
do so. Notwithstanding TIA Section 316(c), any such record date shall be the record date specified in or pursuant to such Board Resolution, which shall be a date not more than 30 days prior to the first solicitation of Holders generally in
connection therewith and no later than the date such solicitation is completed. 
  
 If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other action may be given before or after the record date, but only the Holders of record at the close of
business on the record date shall be deemed to be Holders for the purposes of determining whether Holders of the requisite proportion of Notes outstanding have authorized or agreed or consented to such request, demand, authorization, direction,
notice, consent, waiver or other action, and for that purpose the Notes outstanding shall be computed as of the record date; provided that no such authorization, agreement or consent by the Holders on the record date shall be deemed effective
unless it shall become effective pursuant to the provisions of this Indenture not later than six months after the record date, and that no such authorization, agreement or consent may be amended, withdrawn or revoked once given by a Holder, unless
the Company shall provide for such amendment, withdrawal or revocation in conjunction with such solicitation of authorizations, agreements or consents or unless and to the extent required by applicable law. 
  
 (f) Any request, demand, authorization, direction, notice, consent, waiver or
other action by the Holder of any Note shall bind the Holder of every Note issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof, in respect of anything 

  

 75 

 
done or suffered to be done by the Trustee or the Company in reliance thereon whether or not notation of such action is made upon such Note. 
  
 SECTION 11.06. Rules by Trustee, Paying Agent or Registrar. The
Trustee may make reasonable rules for action by or at a meeting of Holders. The Paying Agent or Registrar may make reasonable rules for its functions. 
  
 SECTION 11.07. Payment Date Other Than a Business Day. If an Interest Payment Date, Redemption Date, Payment Date, Stated Maturity or date of
maturity of any Note shall not be a Business Day, then payment of principal of, premium, if any, or interest on such Note, as the case may be, need not be made on such date, but may be made on the next succeeding Business Day with the same force and
effect as if made on the Interest Payment Date, Payment Date or Redemption Date, or at the Stated Maturity or date of maturity of such Note; provided that no interest shall accrue with respect to such payment for the period from and after
such Interest Payment Date, Payment Date, Redemption Date, Stated Maturity or date of maturity, as the case may be. 
  
 SECTION 11.08. Governing Law. This Indenture and the Notes shall be governed by the laws of the State of New York. The Trustee, the Company, the
Guarantors and the Holders agree to submit to the jurisdiction of the courts of the State of New York in any action or proceeding arising out of or relating to this Indenture or the Notes. 
  
 SECTION 11.09. No Adverse Interpretation of Other Agreements. This
Indenture may not be used to interpret another indenture, loan or debt agreement of the Parent Guarantor or the Company or any Subsidiary of the Parent Guarantor or the Company. Any such indenture, loan or debt agreement may not be used to interpret
this Indenture. 
  
 SECTION 11.10. No Recourse Against
Others. No recourse for the payment of the principal of, premium, if any, or interest on any of the Notes, or for any claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement of the
Company, the Parent Guarantor or any Subsidiary Guarantor contained in this Indenture or in any of the Notes, or because of the creation of any Indebtedness represented thereby, shall be had against any incorporator or against any past, present or
future partner, stockholder, other equityholder, officer, director, employee or controlling person, as such, of either the Company, the Parent Guarantor or any Subsidiary Guarantor, or of any successor Persons, either directly or through the
Company, the Parent Guarantor or any Subsidiary Guarantor, or any successor Persons, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that
all such liability is hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture and the issue of the Notes. 
  
 SECTION 11.11. Successors. All agreements of the Company, the Parent Guarantor or the Subsidiary Guarantors in this
Indenture and the Notes shall bind their respective successors. All agreements of the Trustee in this Indenture shall bind its successor. 
  

 76 

 SECTION 11.12. Duplicate 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. Separability. 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 11.14.
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 hereof and shall
in no way modify or restrict any of the terms and provisions hereof. 
  

 77 

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

					
	 TIME WARNER TELECOM HOLDINGS INC.

		
	 By:
	 	/S/    PAUL B. JONES
	 	 	 Name:
 Title:
	 	 Paul B. Jones
 Senior Vice President
 General Counsel & Regulatory Policy

	
	 TIME WARNER TELECOM INC.

		
	 By:
	 	/S/    PAUL B. JONES
	 	 	 Name:
 Title:
	 	 Paul B. Jones
 Senior Vice President
 General Counsel & Regulatory Policy

	
	 TIME WARNER TELECOM HOLDINGS II LLC
 By: Time Warner Telecom Holdings Inc.,
 its sole member

		
	 By:
	 	/S/    PAUL B. JONES
	 	 	 Name:
 Title:
	 	 Paul B. Jones
 Senior Vice President
 General Counsel & Regulatory Policy

					
	 TIME WARNER TELECOM GENERAL PARTNERSHIP
 By:
Time Warner Telecom Holdings Inc., its
 general partner

		
	 By:
	 	/S/    PAUL B. JONES
	 	 	 Name:
 Title:
	 	 Paul B. Jones
 Senior Vice President
 General Counsel & Regulatory Policy

	
	 TIME WARNER TELECOM OF ILLINOIS LLC
 By: Time
Warner Telecom Holdings Inc.,
 its sole member

		
	 By:
	 	/S/    PAUL B. JONES
	 	 	 Name:
 Title:
	 	 Paul B. Jones
 Senior Vice President
 General Counsel & Regulatory Policy

	
	 TIME WARNER TELECOM OF COLORADO LLC
 By: Time
Warner Telecom Holdings Inc.,
 its sole member

		
	 By:
	 	/S/    PAUL B. JONES
	 	 	 Name:
 Title:
	 	 Paul B. Jones
 Senior Vice President
 General Counsel & Regulatory Policy

	
	 TIME WARNER TELECOM OF MINNESOTA LLC
 By:
Time Warner Telecom Holdings Inc.,
 its sole member

		
	 By:
	 	/S/    PAUL B. JONES
	 	 	 Name:
 Title:
	 	 Paul B. Jones
 Senior Vice President
 General Counsel & Regulatory Policy

					
	 TIME WARNER TELECOM OF SOUTH CAROLINA LLC
 By: Time Warner Telecom Holdings Inc.,
 its sole member

		
	 By:
	 	/S/    PAUL B. JONES
	 	 	 Name:
 Title:
	 	 Paul B. Jones
 Senior Vice President
 General Counsel & Regulatory Policy

	
	 TIME WARNER TELECOM OF CALIFORNIA, L.P.
 By:
Time Warner Telecom General Partnership, its general partner
 By: Time Warner Telecom Holdings Inc., its general partner

		
	 By:
	 	/S/    PAUL B. JONES
	 	 	 Name:
 Title:
	 	 Paul B. Jones
 Senior Vice President
 General Counsel & Regulatory Policy

	
	 TIME WARNER TELECOM OF FLORIDA, L.P.
 By: Time Warner Telecom General Partnership, its general partner
 By: Time Warner Telecom Holdings Inc., its general
partner

		
	 By:
	 	/S/    PAUL B. JONES
	 	 	 Name:
 Title:
	 	 Paul B. Jones
 Senior Vice President
 General Counsel & Regulatory Policy

	
	 TIME WARNER TELECOM OF OHIO, LLC
 By: Time
Warner Telecom Holdings, Inc.,
 its sole member

		
	 By:
	 	/S/    PAUL B. JONES
	 	 	 Name:
 Title:
	 	 Paul B. Jones
 Senior Vice President
 General Counsel & Regulatory Policy

					
	TIME WARNER TELECOM OF TEXAS, L.P.
	By: Time Warner Telecom Holdings Inc., its
general partner
		
	 By:
	 	/S/    PAUL B. JONES
	 	 	 Name:
 Title:
	 	 Paul B. Jones
 Senior Vice President
 General Counsel & Regulatory Policy

	
	TIME WARNER TELECOM OF WISCONSIN,
L.P.
	By: Time Warner Telecom General Partnership, its
general partner
	By: Time Warner Telecom Holdings Inc., its
general partner
		
	 By:
	 	/S/    PAUL B. JONES
	 	 	 Name:
 Title:
	 	 Paul B. Jones
 Senior Vice President
 General Counsel & Regulatory Policy

	
	TIME WARNER TELECOM OF NORTH
CAROLINA, L.P.
	By: Time Warner Telecom General Partnership, its
general partner
	By: Time Warner Telecom Holdings Inc., its
general partner
		
	 By:
	 	/S/    PAUL B. JONES
	 	 	 Name:
 Title:
	 	 Paul B. Jones
 Senior Vice President
 General Counsel & Regulatory Policy

					
	TIME WARNER TELECOM OF IDAHO LLC
	By: Time Warner Telecom Holdings Inc.,
its sole member
		
	 By:
	 	/S/    PAUL B. JONES
	 	 	 Name:
 Title:
	 	 Paul B. Jones
 Senior Vice President
 General Counsel & Regulatory Policy

	
	TIME WARNER TELECOM OF NEVADA LLC
	By: Time Warner Telecom Holdings Inc.,
its sole member
		
	 By:
	 	/S/    PAUL B. JONES
	 	 	 Name:
 Title:
	 	 Paul B. Jones
 Senior Vice President
 General Counsel & Regulatory Policy

	
	TIME WARNER TELECOM OF NEW MEXICO
LLC
	By: Time Warner Telecom Holdings Inc.,
its sole member
		
	 By:
	 	/S/    PAUL B. JONES
	 	 	 Name:
 Title:
	 	 Paul B. Jones
 Senior Vice President
 General Counsel & Regulatory Policy

					
	TIME WARNER TELECOM OF OREGON LLC
	By: Time Warner Telecom Holdings Inc.,
its sole member
		
	 By:
	 	/S/    PAUL B. JONES
	 	 	 Name:
 Title:
	 	 Paul B. Jones
 Senior Vice President
 General Counsel & Regulatory Policy

	
	TIME WARNER TELECOM OF UTAH LLC
	By: Time Warner Telecom Holdings Inc.,
its sole member
		
	 By:
	 	/S/    PAUL B. JONES
	 	 	 Name:
 Title:
	 	 Paul B. Jones
 Senior Vice President
 General Counsel & Regulatory Policy

	
	TIME WARNER TELECOM OF WASHINGTON
LLC
	By: Time Warner Telecom Holdings Inc.,
its sole member
		
	 By:
	 	/S/    PAUL B. JONES
	 	 	 Name:
 Title:
	 	 Paul B. Jones
 Senior Vice President
 General Counsel & Regulatory Policy

	
	TW TELECOM L.P.
	By: Time Warner Telecom Holdings Inc.,
its general partner
		
	 By:
	 	/S/    PAUL B. JONES
	 	 	 Name:
 Title:
	 	 Paul B. Jones
 Senior Vice President
 General Counsel & Regulatory Policy

			
	WELLS FARGO BANK, NATIONAL
ASSOCIATION
		
	By:	 	/S/    JANE Y. SCHWEIGER

					
	 	 	 Name:
	 	 Jane Y. Schweiger

	 	 	 Title:
	 	 Vice President

  
 Exhibit A 

 
 [FACE OF NOTE] 
  
 TIME WARNER TELECOM HOLDINGS INC. 
  
 9-1/4% Senior Note due 2014 
  
 CUSIP
[                    ] 
  

			
	 No.        
	  	$                    

  
 TIME WARNER TELECOM
HOLDINGS INC., a Delaware corporation (the “Company”, which term includes any successor under the Indenture hereinafter referred to), for value received, promises to pay to
                    , or its registered assigns, the principal sum of
                    
($                    ) on February 15, 2014. 
  
 Interest Payment Dates: February 15 and August 15, commencing February 15, 2005. 
  
 Regular Record Dates: February 1 and August 1, or in the case of the initial Interest Payment Date, February 9, 2005.

  
 Reference is hereby made to the further provisions of this
Note set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
  
 NOTE GUARANTEE 
  
 For value received, each Guarantor (which term includes any successor Person under the Indenture) has, jointly and severally, fully and unconditionally
guaranteed, to the extent set forth in the Indenture and subject to the provisions in the Indenture dated as of February 9, 2005 (the “Indenture”) among the Company, the Guarantors (as defined in the Indenture) and Wells Fargo Bank,
National Association, as trustee (the “Trustee”), (a) the due and punctual payment of the principal of, and premium, if any, and interest and liquidated damages, if any, on, the Notes (as defined in the Indenture), whether at maturity, by
acceleration, redemption or otherwise, and the due and punctual payment of interest on overdue principal of, and premium, if any, and interest and liquidated damages, if any, on, the Notes, if any, if lawful (subject in all cases to any applicable
grace period provided herein), and the due and punctual performance of all other obligations of the Company to the Holders or the Trustee all in accordance with the terms of the Indenture and the Notes and (b) in case of any extension of time of
payment or renewal of any Notes or any of such other obligations, the same will be promptly 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. The
obligations of the Guarantors to the Holders of Notes and to the Trustee pursuant to the Note Guarantee and the Indenture are expressly set forth in Article Ten of the Indenture and reference is hereby made to the Indenture for the precise terms of
the Note Guarantee. Each Holder of a Note, by accepting the same, (a) 

  

 A-1 

 
agrees to and shall be bound by such provisions and (b) appoints the Trustee attorney-in-fact of such Holder for such purpose. 
  
 IN WITNESS WHEREOF, the Company has caused this Note to be signed manually or
by facsimile by its duly authorized officer. 
  
 Date: February 9, 2005

  

			
	 TIME WARNER TELECOM HOLDINGS INC.

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

 A-2 

 (Trustee’s Certificate of Authentication) 
  
 This is one of the 9-1/4% Senior Notes due 2014 described in the
within-mentioned Indenture. 
  

			
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Trustee

		
	By:	 	 
	 	 	 Authorized Officer

  

 A-3 

  
 [REVERSE OF NOTE] 

 
 TIME WARNER TELECOM HOLDINGS INC. 
  
 9-1/4 % Senior Note due 2014 
  

	1.	Principal and Interest. 

  
 The Company will pay the principal of this Note on February 15, 2014. 
  
 The Company promises to pay interest on the principal amount of this Note on each Interest Payment Date, as set forth below,
at the rate per annum shown above. 
  
 Interest will be payable
semiannually (to the holders of record of the Notes at the close of business on the February 1 or August 1 immediately preceding the applicable Interest Payment Date, or in the case of the initial Interest Payment Date, to Holders of record at the
close of business on the Closing Date) on each Interest Payment Date, commencing February 15, 2005. 
  
 If an exchange offer registered under the Securities Act is not consummated and a shelf registration statement under the Securities Act with respect to
resales of the Notes is not declared effective by the Commission, on or before the date which is 180 days following the Closing Date in accordance with the terms of the Registration Rights Agreement dated February 9, 2005 among the Company, the
Guarantors, Morgan Stanley & Co. Incorporated, Lehman Brothers Inc. and Wachovia Capital Markets, LLC (the “Notes Registration Rights Agreement”), interest (in addition to the interest otherwise due on the Notes after such date) will
accrue, at an annual rate of 0.5% on the Notes from the date which is 180 days following the Closing Date, payable in cash semiannually, in arrears, on each February 15 and August 15, commencing August 15, 2005, until the exchange offer is
consummated or the shelf registration statement is declared effective. The Holder of this Note is entitled to the benefits of the Notes Registration Rights Agreement. 
  
 Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no interest has been
paid, from February 9, 2005; provided that, if there is no existing default in the payment of interest and this Note is authenticated between a Regular Record Date referred to on the face hereof and the next succeeding Interest Payment Date,
interest shall accrue from such Interest Payment Date. Interest will be computed on the basis of a 360-day year of twelve 30-day months. 
  
 The Company shall pay interest on overdue principal and premium, if any, and interest on overdue installments of interest, to the extent lawful, at a rate
per annum that is 2% in excess of the rate otherwise payable. 
  

	2.	Method of Payment. 

  
 The Company will pay interest (except defaulted interest) on the principal amount of the Notes as provided above on each February 15 and August 15,
commencing February 15, 2005 to the Persons who are Holders (as reflected in the Security Register at the close of 

  

 A-4 

 
business on the February 1 or August 1 immediately preceding the Interest Payment Date, or in the case of the initial Interest Payment Date, to Holders of
record at the close of business on the Closing Date), in each case, even if the Note is cancelled on registration of transfer or registration of exchange after such record date; provided that, with respect to the payment of principal, the
Company will make payment to the Holder that surrenders this Note to a Paying Agent on or after February 15, 2014. 
  
 The Company will pay principal, premium, if any, and, as provided above, interest and liquidated damages, if any, in money of the United States that at
the time of payment is legal tender for payment of public and private debts. However, the Company, at its option, may pay principal, premium, if any, interest and liquidated damages, if any, by check payable in such money. It may mail an interest
check to a Holder’s registered address (as reflected in the Security Register). If a payment date is a date other than a Business Day at a place of payment, payment may be made at that place on the next succeeding day that is a Business Day and
no interest shall accrue with respect to such payment for the intervening period. 
  

	3.	Paying Agent and Registrar. 

  
 Initially, the Trustee will act as Paying Agent and Registrar. The Company may change any Paying Agent or Registrar without notice. The Company, any
Subsidiary or any Affiliate of it may act as Paying Agent, Registrar or co-Registrar. 
  

	4.	Indenture; Limitations. 

  
 The Company issued the Notes under an Indenture dated as of February 9, 2005 (the “Indenture”), between the Company, the Guarantors and Wells
Fargo Bank, National Association, trustee (the “Trustee”). Capitalized terms herein are used as defined in the Indenture unless otherwise indicated. The terms of the Notes include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act. The Notes are subject to all such terms, and Holders are referred to the Indenture and the Trust Indenture Act for a statement of all such terms. To the extent permitted by applicable law, in the
event of any inconsistency between the terms of this Note and the terms of the Indenture, the terms of the Indenture shall control. 
  
 The Notes are general unsecured obligations of the Company. 
  
 The Company may, subject to Article Four of the Indenture and applicable law, issue additional Notes under the Indenture. 
  

	5.	Optional Redemption. 

  
 The Notes are redeemable, at the Company’s option, in whole or in part, at any time or from time to time, on or after February 15, 2009 and prior to
maturity, upon not less than 30 nor more than 60 days’ prior notice mailed by first class mail to each Holder’s last address, as it appears in the Security Register, at the following Redemption Prices (expressed in percentages of principal
amount), plus accrued and unpaid interest, if any, and liquidated damages, if any, to the Redemption Date (subject to the right of Holders of record on the relevant Regular Record Date that is on or prior to the Redemption Date to receive interest
due on an Interest Payment 

  

 A-5 

 
Date), if redeemed during the 12-month period commencing on February 15 of the following years: 
  

				
	 Year

	  	Redemption
Price

	 
	 2009
	  	104.625	%
	 2010
	  	103.083	%
	 2011
	  	101.542	%
	 2012 and thereafter
	  	100.000	%

  
 At any time prior to
February 15, 2007, the Company may, at its option, redeem up to 35% of the aggregate principal amount of the Notes with the net proceeds of one or more Equity Offerings, at any time or from time to time, at a Redemption Price (expressed as a
percentage of principal amount) of 109.250%, plus accrued and unpaid interest to the Redemption Date (subject to the rights of Holders of record on the relevant Regular Record Date that is on or prior to the Redemption Date to receive interest due
on an Interest Payment Date); provided that (i) at least 65% of the aggregate principal amount of Notes originally issued on the Closing Date remains outstanding after each such redemption and (ii) notice of such redemption shall be mailed
within 90 days after the related Equity Offering. 
  
 Notes in
original denominations larger than $1,000 may be redeemed in part. On and after the Redemption Date, interest ceases to accrue on Notes or portions of Notes called for redemption, unless the Company defaults in the payment of the Redemption Price.

  

	6.	Repurchase upon Change of Control. 

  
 The Company shall commence within 30 days of the occurrence of a Change of Control Triggering Event and consummate an Offer to Purchase for all Notes then
outstanding, at a purchase price equal to 101% of the principal amount thereof on the relevant Payment Date, plus accrued interest (if any) to the Payment Date. 
  

A notice of Change of Control will be mailed within 30 days after any Change of Control occurs to each Holder at its last address as it appears in the
Security Register. Notes in original denominations larger than $1,000 may be sold to the Company in part. On and after the Payment Date, interest ceases to accrue on Notes or portions of Notes surrendered for purchase by the Company, unless the
Company defaults in the payment of the purchase price. 
  

	7.	Denominations; Transfer; Exchange. 

  
 The Notes are in registered form without coupons in denominations of $1,000 of principal amount and multiples of $1,000 in excess thereof. A Holder may
register the transfer or exchange of Notes in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by law or
permitted by the Indenture. The Registrar need not register the transfer or exchange of any Notes selected for redemption. Also, it need not register the transfer or exchange of any Notes for a period of 15 days before the day of mailing of a notice
of redemption of Notes selected for redemption. 
  

 A-6 

	8.	Persons Deemed Owners. 

  
 A Holder shall be treated as the owner of a Note for all purposes. 
  

	9.	Unclaimed Money. 

  
 If money for the payment of principal, premium, if any, or interest remains unclaimed for two years, the Trustee and the Paying Agent will pay the money
back to the Company at its request. After that, Holders entitled to the money must look to the Company for payment, unless an abandoned property law designates another Person, and all liability of the Trustee and such Paying Agent with respect to
such money shall cease. 
  

	10.	Discharge Prior to Redemption or Maturity. 

  
 If the Company deposits with the Trustee money or U.S. Government Obligations sufficient to pay the then outstanding principal of, premium, if any, and
interest on the Notes (a) to redemption or maturity, the Company will be discharged from the Indenture and the Notes, except in certain circumstances for certain provisions thereof, and (b) to the Stated Maturity, the Company will be discharged from
certain covenants set forth in the Indenture. 
  

	11.	Amendment; Supplement; Waiver. 

  
 Subject to certain exceptions, the Indenture or the Notes may be amended or supplemented with the consent of the Holders of at least a majority in
principal amount of the Notes then outstanding, and any existing default or compliance with any provision may be waived with the consent of the Holders of at least a majority in aggregate principal amount of the Notes then outstanding. Without
notice to or the consent of any Holder, the parties thereto may amend or supplement the Indenture or the Notes to, among other things, cure any ambiguity, defect or inconsistency and make any change that does not materially and adversely affect the
rights of any Holder. 
  

	12.	Restrictive Covenants. 

  
 The Indenture imposes certain limitations on the ability of the Company, the Parent Guarantor and the Restricted Subsidiaries, among other things, to
Incur additional Indebtedness, make Restricted Payments, suffer to exist restrictions on the ability of Restricted Subsidiaries to make certain payments to the Company, issue Capital Stock of Restricted Subsidiaries, Guarantee Indebtedness of the
Company or the Parent Guarantor, engage in transactions with Affiliates, suffer to exist or incur Liens, enter into sale-leaseback transactions, use the proceeds from Asset Sales, or merge, consolidate or transfer substantially all of its assets.
Within 90 days after the end of each fiscal year, the Company shall deliver to the Trustee an Officers’ Certificate stating whether or not the signers thereof know of any Default or Event of Default under such restrictive covenants. 

 

 A-7 

	13.	Successor Persons. 

  
 When a successor Person or other entity assumes all the obligations of its predecessor under the Notes and the Indenture, the predecessor Person will be
released from those obligations. 
  

	14.	Defaults and Remedies. 

  
 Any of the following events constitutes an “Event of Default” under the Indenture: 
  
 (a) default in the payment of principal of (or premium, if
any, on) any Note when the same becomes due and payable at maturity, upon acceleration, redemption or otherwise; 
  
 (b) default in the payment of interest on any Note when the same becomes due and payable, and such default continues for a period of 30
days; 
  
 (c) default in the performance or
breach of the provisions of the Indenture applicable to mergers, consolidations and transfers of all or substantially all of the assets of the Company, the Parent Guarantor or the Restricted Subsidiaries or the failure to make or consummate an Offer
to Purchase in accordance with Section 4.11 or Section 4.12 of the Indenture; 
  
 (d) the Company or the Parent Guarantor defaults in the performance of or breaches any other covenant or agreement of the Company or the Parent Guarantor in the Indenture or under the Notes (other than a default
specified in clause (a), (b) or (c) above), and such default or breach continues for a period of 30 consecutive days after written notice by the Trustee to the Company or by the Holders of 25% or more in aggregate principal amount of the Notes to
the Company and the Trustee; 
  
 (e) there occurs
with respect to any issue or issues of Indebtedness of the Company, the Parent Guarantor or any Significant Subsidiary having an outstanding principal amount of $20 million or more in the aggregate for all such issues of all such Persons, whether
such Indebtedness now exists or shall hereafter be created, (A) an event of default that has caused the holder thereof to declare such Indebtedness to be due and payable prior to its Stated Maturity and such Indebtedness has not been discharged in
full or such acceleration has not been rescinded or annulled within 30 days of such acceleration and/or (B) the failure to make a principal payment at the final (but not any interim) fixed maturity and such defaulted payment shall not have been
made, waived or extended within 30 days of such payment default; 
  
 (f) any final judgment or order (not covered by insurance) for the payment of money in excess of $20 million in the aggregate for all such final judgments or orders against all such Persons (treating any deductibles,
self-insurance or retention as not so covered) shall be rendered against the Company, the Parent Guarantor or any Significant Subsidiary and shall not be paid or discharged, and there shall be any period of 30 consecutive days following entry of the
final judgment or order that causes the aggregate amount for all such final judgments or orders outstanding and not paid or discharged against all such Persons to exceed $20 million during which a stay of enforcement of 

  

 A-8 

 
such final judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; 
  
 (g) a court having jurisdiction in the premises enters a
decree or order for (A) relief in respect of the Company, the Parent Guarantor or any Significant Subsidiary in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, (B) appointment of a
receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Parent Guarantor, the Company or any Significant Subsidiary or for all or substantially all of the property and assets of the Company or any Significant
Subsidiary or (C) the winding up or liquidation of the affairs of the Parent Guarantor, the Company or any Significant Subsidiary and, in each case, such decree or order shall remain unstayed and in effect for a period of 30 consecutive days;

  
 (h) the Company, the Parent Guarantor or any
Significant Subsidiary (A) commences a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or consents to the entry of an order for relief in an involuntary case under any such law, (B)
consents to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Company, the Parent Guarantor or any Significant Subsidiary or for all or substantially all of the
property and assets of the Company, the Parent Guarantor or any Significant Subsidiary or (C) effects any general assignment for the benefit of creditors; or 
  

(i) (A) Subsidiary Guarantees provided by Subsidiary Guarantors that individually or together would constitute a Significant Subsidiary
cease to be in full force and effect (other than in accordance with the terms of such Subsidiary Guarantees or the terms of the Indenture) or any Subsidiary Guarantor denies or disaffirms its obligations under its Subsidiary Guarantee; or (B) the
Parent Guarantee ceases to be in full force and effect or the Parent Guarantor denies or disaffirms its obligations under the Parent Guarantee. 
  
 If an Event of Default, as defined in the Indenture, occurs and is continuing, the Trustee may, and at the direction of the Holders of at least 25% in
aggregate principal amount of the Notes then outstanding shall, declare all the Notes to be due and payable. If a bankruptcy or insolvency default with respect to the Company, the Parent Guarantor or the Subsidiary Guarantors occurs and is
continuing, the Notes automatically become due and payable. Holders may not enforce the Indenture or the Notes except as provided in the Indenture. The Trustee may require indemnity satisfactory to it before it enforces the Indenture or the Notes.
Subject to certain limitations, Holders of at least a majority in principal amount of the Notes then outstanding may direct the Trustee in its exercise of any trust or power. 
  

	15.	Trustee Dealings with the Company. 

  
 The Trustee under the Indenture, in its individual or any other capacity, may make loans to, accept deposits from and perform services for the Company or
their Affiliates and may otherwise deal with the Company and their Affiliates as if it were not the Trustee. 
  

 A-9 

	16.	No Recourse Against Others. 

  
 No incorporator or any past, present or future partner, stockholder, other equityholder, officer, director, employee or controlling person, as such, of
the Company, the Parent Guarantor or any Subsidiary Guarantor or of any successor Persons shall have any liability for any obligations of the Company, the Parent Guarantor or any Subsidiary Guarantor under the Notes or the Indenture or for any claim
based on, in respect of or by reason of, such obligations or their creation. Each Holder 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. 
  

	17.	Authentication. 

  
 This Note shall not be valid until the Trustee or authenticating agent signs the certificate of authentication on the other side of this Note. 

 

	18.	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). 
  

	19.	Governing Law. 

  
 This Note shall be governed by the laws of the State of New York. 
  

The Company will furnish a copy of the Indenture to any Holder upon written request and without charge. Requests may be made to Time Warner Telecom
Holdings Inc., 10475 Park Meadow Drive, Littleton, CO 80124; Attention: Paul B. Jones. 
  

 A-10 

 ASSIGNMENT FORM 
  

For value received, I or we assign and transfer this Note to: 
  
 Please insert social security or other identifying number of assignee 
  
 _____________________________________ 
  
 Print or type name, address and zip code of assignee 
  
 _____________________________________ 
  
 and irrevocably appoint
                                       
     , as agent, to transfer this Note on the books of the Company. 
  
 The agent may substitute another to act for him. 
  
 [THE FOLLOWING PROVISION TO BE INCLUDED 
 ON ALL NOTES OTHER THAN EXCHANGE NOTES, 
 PERMANENT OFFSHORE GLOBAL NOTES AND 
 OFFSHORE
PHYSICAL NOTES] 
  
 In connection with any transfer of this Note
occurring prior to the date which is the earlier of (i) the date the shelf registration statement with respect to resales of the Notes is declared effective and (ii) the end of the period referred to in Rule 144(k) under the Securities Act, the
undersigned confirms that without utilizing any general solicitation or general advertising that: 
  
 [Check One] 
  

	 ̈ (a)	this Note is being transferred in compliance with the exemption from registration under the Securities Act of 1933, as amended, provided by Rule 144A thereunder.

  
 or 
  

	 ̈ (b)	this Note is being transferred other than in accordance with (a) above and documents are being furnished which comply with the conditions of transfer set forth in this Note and the
Indenture. 

  

 A-11 

 If none of the foregoing boxes is checked, the Trustee or other Registrar shall not be obligated to register this Note in
the name of any Person other than the Holder hereof unless and until the conditions to any such transfer of registration set forth herein and in Section 2.08 of the Indenture shall have been satisfied. 
  

							
				
	 Date:  
	 	 ___________________________
	 	 	 	  
	 	 	 	 	 	 	NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within-mentioned instrument in every particular, without alteration or any change
whatsoever.

  
 TO BE COMPLETED BY PURCHASER IF (a)
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, and is aware that the sale to it is being made in reliance on Rule 144A and acknowledges that it has received such information regarding the Company as the undersigned has requested pursuant to Rule 144A or has
determined not to request such information and that it is aware that the transferor is relying upon the undersigned’s foregoing representations in order to claim the exemption from registration provided by Rule 144A. 
  

							
				
	 Dated:  
	 	 ___________________________
	 	 	 	  
	 	 	 	 	 	 	NOTICE: To be executed by an executive officer

  
 Signature Guarantee1
                                        

	1	The Holder’s signature must be guaranteed by a member firm of a registered national securities exchange or of the National Association of Securities Dealers,
Inc., a commercial bank or trust company having an office or correspondent in the United States or an “eligible guarantor institution” as defined by Rule 17Ad-15 under the Exchange Act. 

  

 A-12 

 OPTION OF HOLDER TO ELECT PURCHASE 
  
 If you wish to have this Note purchased by the Company pursuant to Section
4.11 or Section 4.12 of the Indenture, as applicable, check the Box:  ̈ 
  
 If you wish to have a portion of this Note purchased by the Company pursuant to Section 4.11 or Section 4.12 of the
Indenture, as applicable, state the amount to be purchased (in principal amount at maturity): 
  
 $                    . 
  
 Date:                     

  
 Signed
                                        
                                        
                     
  
 (Sign exactly as name appears on the other side of this Note) 
  
 Signature Guarantee2
                                       
  

	2	The Holder’s signature must be guaranteed by a member firm of a registered national securities exchange or of the National Association of Securities Dealers,
Inc., a commercial bank or trust company having an office or correspondent in the United States or an “eligible guarantor institution” as defined by Rule 17Ad-15 under the Exchange Act. 

  

 A-13 

 EXHIBIT B 
  

Form of Certificate 
  
                     ,
         
  
 Wells Fargo Bank,
National Association 
 N9303-120, Sixth Street and Marquette Avenue 
 Minneapolis, Minnesota 55479 
 Attention: Corporate Trust Services 
  
 Time Warner Telecom Holdings Inc. 
 10475 Park
Meadows Drive 
 Littleton, Colorado 80124 
 Attention: Chief
Financial Officer 
  

	 	Re:	Time Warner Telecom Holdings Inc. (the “Company”) 

	 	 	9-1/4% Senior Notes due 2014 (the “Notes”) 

  
 Dear Sirs: 
  
 This letter relates to U.S. $                      principal amount of Notes represented by a Note (the
“Legended Note”) which bears a legend outlining restrictions upon transfer of such Legended Note. Pursuant to Section 2.01 of the Indenture (the “Indenture”) dated as of February 9, 2005 relating to the Notes, we hereby certify
that we are (or we will hold such securities on behalf of) a person outside the United States to whom the Notes could be transferred in accordance with Rule 904 of Regulation S promulgated under the U.S. Securities Act of 1933, as amended.
Accordingly, you are hereby requested to exchange the legended certificate for an unlegended certificate representing an identical principal amount at maturity of Notes, all in the manner provided for in the Indenture. 
  
 You and the Company are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby. Terms used in this certificate have the meanings set forth in
Regulation S. 
  

			
	 Very truly yours,

	
	 [Name of Holder]

		
	 By:  
	 	 
	 	 	 Authorized Signature

  

 B-1 

 EXHIBIT C 
  

Form of Certificate to Be 
 Delivered in
Connection with 
 Transfers to Non-QIB Accredited Investors 
  
                     ,          
  
 Wells Fargo Bank, National Association 
 N9303-120, Sixth Street and Marquette Avenue 
 Minneapolis, Minnesota 55479

 Attention: Corporate Trust Services 
  
 Time Warner Telecom Holdings Inc. 
 10475 Park Meadows Drive 
 Littleton, Colorado 80124 
 Attention: Chief Financial Officer 
  

	 	Re:	Time Warner Telecom Holdings Inc. (the “Company”)  

	 	 	9-1/4% Senior Notes due 2014 (the “Notes”) 

  
 Dear Sirs: 
  
 In connection with our proposed purchase of $                  aggregate principal amount of the Notes, we confirm that:

  
 1. We understand that any subsequent transfer
of the Notes is subject to certain restrictions and conditions set forth in the Indenture dated as of February 9, 2005, relating to the Notes (the “Indenture”) and the undersigned agrees to be bound by, and not to resell, pledge or
otherwise transfer the Notes except in compliance with, such restrictions and conditions and the Securities Act of 1933, as amended (the “Securities Act”). 
  
 2. We understand that the offer and sale of the Notes have not been registered under the Securities Act, and
that the Notes may not be offered or sold except as permitted in the following sentence. We agree, on our own behalf and on behalf of any accounts for which we are acting as hereinafter stated, that if we should sell any Notes, we will do so only
(A) to the Company or any subsidiary thereof, (B) in accordance with Rule 144A under the Securities Act to a “qualified institutional buyer” (as defined therein), (C) to an institutional “accredited investor” (as defined below)
that, prior to such transfer, furnishes (or has furnished on its behalf by a U.S. broker-dealer) to you and to the Company a signed letter substantially in the form of this letter, (D) outside the United States in accordance with Rule 904 of
Regulation S under the Securities Act, (E) pursuant to the exemption from registration provided by Rule 144 under the Securities Act, or (F) pursuant to an effective registration statement under the Securities Act, and we further agree to provide to
any person purchasing any of the Notes from us a notice advising such purchaser that resales of the Notes are restricted as stated herein. 
  

 C-1 

 3. We understand that, on any proposed resale of any Notes, we will be required to
furnish to you and the Company such certifications, legal opinions and other information as you and the Company may reasonably require to confirm that the proposed sale complies with the foregoing restrictions. We further understand that the Notes
purchased by us will bear a legend to the foregoing effect. 
  
 4. We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and have such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of our investment in the Notes, and we and any accounts for which we are acting are each able to bear the economic risk of our or its investment. 
  
 5. We are acquiring the Notes purchased by us for our own
account or for one or more accounts (each of which is an institutional “accredited investor”) as to each of which we exercise sole investment discretion. 
  
 You and the Company are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy
hereof to any interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby. 
  

			
	 Very truly yours,

	
	 [Name of Transferee]

		
	 By:  
	 	 
	 	 	 Authorized Signature

  

 C-2 

 EXHIBIT D 
  

Form of Certificate to Be 
 Delivered in
Connection with 
 Transfers Pursuant to Regulation S 
  
                     ,          
  
 Wells Fargo Bank, National Association 
 N9303-120, Sixth Street and Marquette Avenue 
 Minneapolis, Minnesota 55479

 Attention: Corporate Trust Services 
  
 Time Warner Telecom Holdings Inc. 
 10475 Park Meadows Drive 
 Littleton, Colorado 80124 
 Attention: Chief Financial Officer 
  

	 	Re:	Time Warner Telecom Holdings Inc. (the “Company”) 

	 	 	9-1/4% Senior Notes due 2014 (the “Notes”) issued pursuant to the  

	 	 	Indenture dated as of February 9, 2005 

  
 Dear Sirs: 
  
 In connection with our proposed sale of U.S.$                  aggregate principal amount at maturity of the Notes, we confirm
that such sale has been effected pursuant to and in accordance with Regulation S under the Securities Act of 1933, as amended, and, accordingly, we represent that: 
  
 (1) the offer of the Notes was not made to a person in the United States; 
  
 (2) 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; 
  
 (3) no directed selling efforts have been made by us 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 U.S. Securities Act of 1933. 
  
 You and the Company are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any interested party
in any administrative or 

  

 D-1 

 
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

  

 D-2

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