Document:

EXHIBIT 4.1

 Exhibit 4.1 
  
 GRANDE COMMUNICATIONS HOLDINGS, INC. 
 AND EACH
OF THE GUARANTORS PARTY HERETO 
 14% SENIOR SECURED NOTES DUE 2011 
  

  
 INDENTURE 
  
 Dated as of March 23, 2004 
  

  
 U.S. Bank National Association, 
 Trustee 
  

 Exhibit 4.1 
  

CROSS-REFERENCE TABLE** 
  

			
	 Trust Indenture
 Act
Section

	  	 Indenture Section

	 310 (a)(1)
	  	7.10(b)
	        (a)(2)
	  	7.10(a)-(b)
	        (a)(3)
	  	N.A.
	        (a)(4)
	  	N.A.
	        (a)(5)
	  	7.10(b)
	        (b)
	  	7.08(e); 7.10(b)
	        (c)
	  	N.A.
	 311 (a)
	  	7.11
	        (b)
	  	7.11
	        (c)
	  	N.A.
	 312 (a)
	  	2.05
	        (b)
	  	2.05; 13.03
	        (c)
	  	13.03
	 313 (a)
	  	7.06(a)
	        (b)(2)
	  	7.06(a); 7.07(f)
	        (c)
	  	7.06(a); 13.02(c)
	        (d)
	  	7.06(b)
	 314 (a)
	  	4.03(b); 4.04(a); 13.02(c); 13.05(a)
	        (b)
	  	11.06(a)-(b)
	        (c)(1)
	  	13.04(a)(1)
	        (c)(2)
	  	13.04(a)(2)
	        (c)(3)
	  	N.A.
	        (d)
	  	11.06(b)
	        (e)
	  	13.05(a)(1)-(4)
	        (f)
	  	N.A.
	 315 (a)
	  	7.01(b)(1)-(2)
	        (b)
	  	7.05; 13.02(c)
	        (c)
	  	7.01(a)
	        (d)
	  	7.01(c)
	        (e)
	  	6.11
	 316 (a) (last sentence)
	  	2.09
	        (a)(1)(A)
	  	6.05
	        (a)(1)(B)
	  	6.04
	        (a)(2)
	  	N.A.
	        (b)
	  	6.07; 9.02(a); 9.02(d)
	        (c)
	  	2.12; 9.04(b)
	 317 (a)(1)
	  	6.08
	        (a)(2)
	  	6.09
	        (b)
	  	2.04
	 318 (a)
	  	13.01
	        (b)
	  	N.A.
	        (c)
	  	13.01

  
 N.A. means not applicable.

  

	*	This Cross Reference Table is not part of this Indenture. 

  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE 1
	  	 DEFINITIONS AND INCORPORATION BY REFERENCE
	  	1
			
	 Section 1.01
	  	 Definitions
	  	1
			
	 Section 1.02
	  	 Other Definitions
	  	27
			
	 Section 1.03
	  	 Incorporation by Reference of Trust Indenture Act
	  	28
			
	 Section 1.04
	  	 Rules of Construction
	  	28
			
	 ARTICLE 2
	  	THE NOTES	  	29
			
	 Section 2.01
	  	 Form and Dating
	  	29
			
	 Section 2.02
	  	 Execution and Authentication
	  	30
			
	 Section 2.03
	  	 Registrar and Paying Agent
	  	31
			
	 Section 2.04
	  	 Paying Agent to Hold Money in Trust
	  	31
			
	 Section 2.05
	  	 Holder Lists
	  	32
			
	 Section 2.06
	  	 Transfer and Exchange
	  	32
			
	 Section 2.07
	  	 Replacement Notes
	  	46
			
	 Section 2.08
	  	 Outstanding Notes
	  	46
			
	 Section 2.09
	  	 Treasury Notes
	  	46
			
	 Section 2.10
	  	 Temporary Notes
	  	47
			
	 Section 2.11
	  	 Cancellation
	  	47
			
	 Section 2.12
	  	 Defaulted Interest
	  	47
			
	 ARTICLE 3
	  	REDEMPTION AND PREPAYMENT	  	47
			
	 Section 3.01
	  	 Notices to Trustee
	  	47
			
	 Section 3.02
	  	 Selection of Notes to Be Redeemed or Purchased
	  	48
			
	 Section 3.03
	  	 Notice of Redemption
	  	48
			
	 Section 3.04
	  	 Effect of Notice of Redemption
	  	49
			
	 Section 3.05
	  	 Deposit of Redemption or Purchase Price
	  	49
			
	 Section 3.06
	  	 Notes Redeemed or Purchased in Part
	  	50
			
	 Section 3.07
	  	 Optional Redemption
	  	50
			
	 Section 3.08
	  	 Mandatory Redemption
	  	51
			
	 ARTICLE 4
	  	COVENANTS	  	51
			
	 Section 4.01
	  	 Payment of Notes
	  	51
			
	 Section 4.02
	  	 Maintenance of Office or Agency
	  	51

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

	 Section 4.03
	  	 Reports
	  	52
			
	 Section 4.04
	  	 Compliance Certificate
	  	52
			
	 Section 4.05
	  	 Taxes
	  	53
			
	 Section 4.06
	  	 Stay, Extension and Usury Laws
	  	53
			
	 Section 4.07
	  	 Restricted Payments
	  	54
			
	 Section 4.08
	  	 Dividend and Other Payment Restrictions Affecting Subsidiaries
	  	57
			
	 Section 4.09
	  	 Incurrence of Indebtedness and Issuance of Preferred Stock
	  	59
			
	 Section 4.10
	  	 Asset Sales
	  	62
			
	 Section 4.11
	  	 Transactions with Affiliates
	  	66
			
	 Section 4.12
	  	 Liens
	  	68
			
	 Section 4.13
	  	 Business Activities
	  	68
			
	 Section 4.14
	  	 Corporate Existence
	  	69
			
	 Section 4.15
	  	 Offer to Repurchase Upon Change of Control
	  	69
			
	 Section 4.16
	  	 Payments for Consent
	  	71
			
	 Section 4.17
	  	 Additional Subsidiary Guarantees
	  	71
			
	 Section 4.18
	  	 Designation of Restricted and Unrestricted Subsidiaries
	  	71
			
	 Section 4.19
	  	 Sale and Leaseback Transactions
	  	71
			
	 Section 4.20
	  	 Limitation on Capital Expenditures
	  	72
			
	 ARTICLE 5
	  	SUCCESSORS	  	72
			
	 Section 5.01
	  	 Merger, Consolidation or Sale of Assets
	  	72
			
	 Section 5.02
	  	 Successor Corporation Substituted
	  	73
			
	 ARTICLE 6
	  	DEFAULTS AND REMEDIES	  	74
			
	 Section 6.01
	  	 Events of Default
	  	74
			
	 Section 6.02
	  	 Acceleration
	  	76
			
	 Section 6.03
	  	 Other Remedies
	  	76
			
	 Section 6.04
	  	 Waiver of Past Defaults
	  	77
			
	 Section 6.05
	  	 Control by Majority
	  	77
			
	 Section 6.06
	  	 Limitation on Suits
	  	77
			
	 Section 6.07
	  	 Rights of Holders of Notes to Receive Payment
	  	78

  

 -ii- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

	 Section 6.08
	  	 Collection Suit by Trustee
	  	78
			
	 Section 6.09
	  	 Trustee May File Proofs of Claim
	  	78
			
	 Section 6.10
	  	 Priorities
	  	79
			
	 Section 6.11
	  	 Undertaking for Costs
	  	79
			
	 ARTICLE 7
	  	TRUSTEE	  	79
			
	 Section 7.01
	  	 Duties of Trustee
	  	79
			
	 Section 7.02
	  	 Rights of Trustee
	  	81
			
	 Section 7.03
	  	 Individual Rights of Trustee
	  	81
			
	 Section 7.04
	  	 Trustee’s Disclaimer
	  	81
			
	 Section 7.05
	  	 Notice of Defaults
	  	82
			
	 Section 7.06
	  	 Reports by Trustee to Holders of the Notes
	  	82
			
	 Section 7.07
	  	 Compensation and Indemnity
	  	82
			
	 Section 7.08
	  	 Replacement of Trustee
	  	83
			
	 Section 7.09
	  	 Successor Trustee by Merger, etc.
	  	84
			
	 Section 7.10
	  	 Eligibility; Disqualification
	  	84
			
	 Section 7.11
	  	 Preferential Collection of Claims Against Company
	  	84
			
	 ARTICLE 8
	  	LEGAL DEFEASANCE AND COVENANT DEFEASANCE	  	84
			
	 Section 8.01
	  	 Option to Effect Legal Defeasance or Covenant Defeasance
	  	84
			
	 Section 8.02
	  	 Legal Defeasance and Discharge
	  	85
			
	 Section 8.03
	  	 Covenant Defeasance
	  	85
			
	 Section 8.04
	  	 Conditions to Legal or Covenant Defeasance
	  	86
			
	 Section 8.05
	  	 Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous Provisions
	  	87
			
	 Section 8.06
	  	 Repayment to Company
	  	88
			
	 Section 8.07
	  	 Reinstatement
	  	88
			
	 ARTICLE 9
	  	AMENDMENT, SUPPLEMENT AND WAIVER	  	89
			
	 Section 9.01
	  	 Without Consent of Holders of Notes
	  	89
			
	 Section 9.02
	  	 With Consent of Holders of Notes
	  	90
			
	 Section 9.03
	  	 Compliance with Trust Indenture Act
	  	91
			
	 Section 9.04
	  	 Revocation and Effect of Consents
	  	92

  

 -iii- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

			
	 Section 9.05
	  	 Notation on or Exchange of Notes
	  	92
			
	 Section 9.06
	  	 Trustee to Sign Amendments, etc.
	  	92
			
	 ARTICLE 10
	  	SUBSIDIARY GUARANTEES	  	92
			
	 Section 10.01
	  	 Guarantee
	  	92
			
	 Section 10.02
	  	 Limitation on Guarantor Liability
	  	94
			
	 Section 10.03
	  	 Execution and Delivery of Subsidiary Guarantee Notation
	  	94
			
	 Section 10.04
	  	 Guarantors May Consolidate, etc., on Certain Terms
	  	94
			
	 Section 10.05
	  	 Releases
	  	95
			
	 ARTICLE 11
	  	SECURITY DOCUMENTS	  	96
			
	 Section 11.01
	  	 Security Documents
	  	96
			
	 Section 11.02
	  	 Creation of Security Interest on Collateral
	  	97
			
	 Section 11.03
	  	 Collateral Agent
	  	98
			
	 Section 11.04
	  	 Authorization of Actions to Be Taken
	  	102
			
	 Section 11.05
	  	 Release of Note Liens
	  	102
			
	 Section 11.06
	  	 Filing, Recording and Opinions
	  	103
			
	 ARTICLE 12
	  	SATISFACTION AND DISCHARGE	  	103
			
	 Section 12.01
	  	 Satisfaction and Discharge
	  	103
			
	 Section 12.02
	  	 Application of Trust Money
	  	105
			
	 ARTICLE 13
	  	MISCELLANEOUS	  	105
			
	 Section 13.01
	  	 Trust Indenture Act Controls
	  	105
			
	 Section 13.02
	  	 Notices
	  	105
			
	 Section 13.03
	  	 Communication by Holders of Notes with Other Holders of Notes
	  	106
			
	 Section 13.04
	  	 Certificate and Opinion as to Conditions Precedent
	  	107
			
	 Section 13.05
	  	 Statements Required in Certificate or Opinion
	  	107
			
	 Section 13.06
	  	 Rules by Trustee and Agents
	  	107
			
	 Section 13.07
	  	 No Personal Liability of Directors, Officers, Employees and Stockholders
	  	107
			
	 Section 13.08
	  	 Governing Law
	  	108
			
	 Section 13.09
	  	 No Adverse Interpretation of Other Agreements
	  	108
			
	 Section 13.10
	  	 Successors
	  	108

  

 -iv- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

	 Section 13.11
	  	 Severability
	  	108
			
	 Section 13.12
	  	 Counterpart Originals
	  	108
			
	 Section 13.13
	  	 Table of Contents, Headings, etc.
	  	108

  

 -v- 

 EXHIBITS 
  

			
	 Exhibit A1
	  	FORM OF NOTE
		
	 Exhibit A2
	  	FORM OF REGULATION S TEMPORARY GLOBAL NOTE
		
	 Exhibit B
	  	FORM OF CERTIFICATE OF TRANSFER
		
	 Exhibit C
	  	FORM OF CERTIFICATE OF EXCHANGE
		
	 Exhibit D
	  	FORM OF CERTIFICATE OF ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR
		
	 Exhibit E
	  	FORM OF SUBSIDIARY GUARANTEE NOTATION
		
	 Exhibit F
	  	FORM OF SUPPLEMENTAL INDENTURE

  

 vi 

 The INDENTURE, dated as of March 23, 2004, by and among Grande Communications Holdings, Inc., a Delaware
corporation (the “Company”), the Guarantors (as defined herein) and U.S. Bank National Association, as trustee (the “Trustee”). 
  
 The Company, the Guarantors and the Trustee agree as follows for the benefit of each other and for the equal and ratable
benefit of the Holders (as defined herein) of the 14% Senior Secured Notes due 2011 (the “Notes”): 
  
 ARTICLE 1 
  
 DEFINITIONS AND INCORPORATION 
 BY REFERENCE 
  
 Section 1.01 Definitions. 
  
 “Accreted Value” means, as of any date (the
“Specified Date”), with respect to each $1,000 principal amount at maturity of notes: 
  
 (1) if the Specified Date is one of the following dates (each, a “Semi-Annual Accrual Date”), the amount set forth
opposite such date below: 
  

				
	 Semi-Annual Accrual Date

	  	Accreted Value

	 Issue Date
	  	$	957.37
	 October 1, 2004
	  	$	959.37
	 April 1, 2005
	  	$	961.32
	 October 1, 2005
	  	$	963.42
	 April 1, 2006
	  	$	965.68
	 October 1, 2006
	  	$	968.11
	 April 1, 2007
	  	$	970.71
	 October 1, 2007
	  	$	973.52
	 April 1, 2008
	  	$	976.53
	 October 1, 2008
	  	$	979.77
	 April 1, 2009
	  	$	983.25
	 October 1, 2009
	  	$	987.00
	 April 1, 2010
	  	$	991.02
	 October 1, 2010
	  	$	995.35
	 	  	
	

	 April 1, 2011
	  	$	1,000.00
	 	  	
	

  
 (2)
if the Specified Date occurs between two Semi-Annual Accrual Dates, the sum of (A) the Accreted Value for the Semi-Annual Accrual Date immediately preceding the Specified Date and (B) an amount equal to the product of (a) the difference of (x) the
Accreted Value for the immediately following Semi-Annual Accrual Date and (y) the Accreted Value for the immediately preceding Semi-Annual Accrual Date and (b) a fraction, the numerator of which is the number of days actually lapsed from the
immediately preceding Semi-Annual Accrual Date to the Specified Date and the denominator of which is the number of days between the two Semi-Annual Accrual Dates. 
  

 “144A Global Note” means a Global Note substantially in the form of Exhibit
A1 hereto bearing the Global Note Legend and the Private Placement Legend and deposited with or on behalf of, and registered in the name of, the Depositary or its nominee that will be issued in a denomination equal to the outstanding principal
amount of the Notes sold in reliance on Rule 144A. 
  
 “Acquired Debt” means, with respect to any specified Person: 
  
 (1) Indebtedness or Disqualified Stock of any other Person existing at the time such other Person is merged with or into or became a
Subsidiary of such specified Person, regardless of whether such Indebtedness is incurred in connection with, or in contemplation of, such other Person merging with or into, or becoming a Restricted Subsidiary of, such specified Person; and

  
 (2) Indebtedness secured by a Lien
encumbering any asset acquired by such specified Person. 
  
 “Additional Notes” means an unlimited amount of notes (other than the notes offered hereby) issued under this Indenture in accordance with Sections 2.02 and 4.09 hereof, as part of the same class as the notes offered
hereby. 
  
 “Affiliate” of any specified
Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For purposes of this definition, “control,” as used with respect to any Person, means
the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise; provided that any specified
Person that has beneficial ownership of 10% or more of the Voting Stock of the Company shall be deemed to be an Affiliate of the Company. For purposes of this definition, the terms “controlling,” “controlled by” and “under
common control with” have correlative meanings. 
  
 “Agent” means any Registrar, co-registrar, Paying Agent or additional paying agent. 
  
 “Applicable Procedures” means, with respect to any transfer or exchange of or for beneficial interests in any Global Note, the
rules and procedures of the Depositary, Euroclear and Clearstream that apply to such transfer or exchange. 
  
 “Asset Sale” means 
  
 (1) the sale, lease, conveyance or other disposition of any assets or rights; provided that the sale, lease, conveyance or other
disposition of all or substantially all of the assets of the Company and its Restricted Subsidiaries, taken as a whole, will be governed by the provisions of Section 4.15 hereof and/or Section 5.01 hereof and not by the provisions of Section 4.10
hereof; and 
  
 (2) the issuance of Equity
Interests by any of the Company’s Restricted Subsidiaries or the sale of Equity Interests in any of its Subsidiaries. 
  

 2 

 Notwithstanding the preceding, none of the following transactions will be deemed to be an Asset Sale:

  
 (1) any single transaction or series of
related transactions that involves assets having a Fair Market Value of less than $3.0 million; 
  
 (2) a sale, lease, conveyance or other disposition of assets between or among the Company and its Restricted Subsidiaries; 
  
 (3) an issuance of Equity Interests by a Restricted
Subsidiary of the Company to the Company or to a Restricted Subsidiary of the Company; 
  
 (4) the sale, lease, conveyance or other disposition of (a) products (including, without limitation, fiber optic cable, interduct, conduit
or interests therein), services, inventory or accounts receivable in the ordinary course of business or (b) equipment or other assets pursuant to a program for the maintenance or upgrading of such equipment or assets, including, without limitation,
the disposition of either obsolete equipment or equipment that is damaged or worn out; 
  
 (5) the sale or other disposition of cash or Cash Equivalents; 
  
 (6) a surrender or waiver of contract rights or the settlement, release or surrender of contract, tort or
other claims in the ordinary course of business or a grant of a Lien not prohibited by this Indenture; 
  
 (7) a Restructuring; 
  
 (8) a Restricted Payment that does not violate Section 4.07 or a Permitted Investment; and 
  
 (9) any Sale and Leaseback Transaction the Net Proceeds of
which, together with the aggregate Net Proceeds from all other Sale and Leaseback Transactions since the Issue Date, do not exceed $5.0 million. 
  
 “Attributable Debt” means Indebtedness deemed to be incurred in respect of a Sale and Leaseback Transaction and will be, at the
date of determination, the present value (discounted at the actual rate of interest implicit in such transaction, compounded semiannually) of the total obligations of the lessee for rental payments during the remaining term of the lease included in
such Sale and Leaseback Transaction (including any period for which such lease has been extended or may, at the option of the lessor, be extended). 
  
 “Bankruptcy Law” means Title 11, U.S. Code or any similar federal or state law for the relief of debtors. 
  
 “Beneficial Owner” has the meaning assigned to such
term in Rule 13d-3 and Rule 13d-5 under the Exchange Act. The terms “Beneficially Owns,” “Beneficially Owned” and “beneficial ownership” have correlative meanings. 
  

 3 

 “Board of Directors” means: 
  
 (1) with respect to a corporation, the board of directors of
the corporation or any committee thereof duly authorized to act on behalf of such board; 
  
 (2) with respect to a partnership, the board of directors of the general partner of the partnership; 
  
 (3) with respect to a limited liability company, the
managing member or members or any controlling committee of managing members thereof; and 
  
 (4) with respect to any other Person, the board or committee of such Person serving a similar function. 
  
 “Broker-Dealer” has the meaning set forth in the
Registration Rights Agreement. 
  
 “Business
Day” means any day other than a Legal Holiday. 
  
 “Capital Expenditures” means for any period, all direct or indirect expenditures (including, without limitation, the acquisition of securities of a Person, the expenditure of cash, the transfer of property or the
assumption of Indebtedness of a Person) in respect of the purchase or other acquisition of fixed or capital assets determined in conformity with GAAP, excluding (i) normal replacement and maintenance programs properly charged to current operations,
(ii) any portion of such capital expenditures in respect of capitalized interest and (iii) the purchase price of equipment to the extent that the consideration therefor consists of used, worn out, damaged, obsolete or surplus equipment being traded
in at such time or the proceeds of a concurrent sale of such used, worn out, damaged, obsolete or surplus equipment. 
  
 “Capital Lease Obligation” means, at the time any determination is to be made, the amount of the liability in respect of a capital
lease that would at that time be required to be capitalized on a balance sheet in accordance with GAAP. 
  
 “Capital Stock” means: 
  
 (1) in the case of a corporation, any capital stock of the corporation; 
  
 (2) in the case of an association or business entity, any and all shares, interests, participations, rights
or other equivalents (however designated) of corporate stock; 
  
 (3) in the case of a partnership or limited liability company, partnership interests (whether general or limited) or membership interests; and 
  
 (4) 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, but excluding from all of the foregoing any debt securities convertible into, or exchangeable for, Capital Stock, whether or not such debt securities include any right of
participation in profits, losses or distributions of assets with Capital Stock. 
  

 4 

 “Cash Collateral Agreements” shall mean all agreements of the Company that secure
letters of credit permitted by clause (17) of the definition of “Permitted Liens,” either now existing or hereafter executed by the Company, including but not limited to the Pledge and Security Agreement, dated as of March 23, 2004,
between the Company and Comerica Bank, the Third Party Pledge and Security Agreement, dated as of March 23, 2004, between Grande Communications Networks, Inc. and Comerica Bank and the Cash Collateral Agreement, dated as of March 23, 2004, between
the Grantors and General Electric Capital Corporation. 
  
 “Cash Equivalents” means: 
  
 (1) United States dollars; 
  
 (2) securities issued or directly and fully guaranteed or insured by the United States government or any agency or instrumentality of the United States government (provided that the full faith and credit of the United
States is pledged in support of those securities) having maturities of not more than one year from the date of acquisition; 
  
 (3) certificates of deposit, time deposits and eurodollar time deposits with maturities of one year or less from the date of acquisition,
bankers’ acceptances with maturities not exceeding one year and overnight bank deposits, in each case, with any domestic commercial bank having capital and surplus in excess of $500.0 million and a Thomson Bank Watch Rating of “B” or
better; 
  
 (4) repurchase obligations with a
term of not more than seven days for underlying securities of the types described in clauses (2) and (3) above entered into with any financial institution meeting the qualifications specified in clause (3) above; 
  
 (5) commercial paper having one of the two highest ratings
obtainable from Moody’s Investors Service, Inc. or Standard & Poor’s Rating Services and in each case maturing within one year after the date of acquisition; and 
  
 (6) money market funds at least 95% of the assets of which constitute Cash Equivalents of the kinds
described in clauses (1) through (5) of this definition. 
  
 “Change of Control” means the occurrence of any of the following: 
  
 (1) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one
or a series of related transactions, of all or substantially all of the properties or assets of the Company and its Restricted Subsidiaries, taken as a whole, to any “person” (as that term is used in Section 13(d) of the Exchange Act)
other than the Principals or their Related Parties; 
  
 (2) the adoption of a plan relating to the liquidation or dissolution of the Company; 
  
 (3) the consummation of any transaction (including, without limitation, any merger or consolidation), the result of which is that any
“person” (as defined above) other than Parent or the Principals and their Related Parties becomes the Beneficial Owner, 

  

 5 

 
directly or indirectly, of more than 50% of the Voting Stock of the Company, measured by voting power rather than number of shares; 
  
 (4) after an initial public offering of common Equity
Interests of the Company or any direct or indirect parent of the Company, the first day on which a majority of the members of the Board of Directors of the Company are not Continuing Directors; or 
  
 (5) the first day on which Parent ceases to own 100% of the
outstanding Equity Interests of the Company (after having acquired such Equity Interests). 
  
 Notwithstanding the foregoing, a Restructuring shall not constitute a Change of Control. 
  
 “Collateral” means all of the tangible and intangible property and assets of the Company and the Guarantors, whether now existing
or hereinafter acquired, including, without limitation, all of the capital stock of (or other ownership interests in) each Subsidiary of the Company, in each case, existing on the Issue Date or thereafter created or acquired; provided that
“Collateral” shall not include the Excluded Collateral. 
  
 “Collateral Agent” means the Trustee in its capacity as the holder of Liens granted to it pursuant to the Security Documents and any successor in such capacity. 
  
 “Clearstream” means Clearstream Banking, S.A.

  
 “Company” means Grande Communications
Holdings, Inc., and any and all successors thereto. 
  
 “Consolidated Cash Flow” means, with respect to any specified Person for any period, the Consolidated Net Income of such Person for such period plus, without duplication, to the extent such amount was deducted
in calculating such Consolidated Net Income of such Person for such period: 
  
 (1) provision for taxes based on income, profits or capital structure of such Person and its Restricted Subsidiaries for such period; plus 
  
 (2) the Consolidated Interest Expense of such Person and its Restricted Subsidiaries for such period;
plus 
  
 (3) depreciation, amortization
(including amortization of intangibles but excluding amortization of prepaid cash expenses that were paid in a prior period) and other non-cash expenses and items (excluding any such non-cash expense to the extent that it represents an accrual of or
reserve for cash expenses in any future period or amortization of a prepaid cash expense that was paid in a prior period) of such Person and its Restricted Subsidiaries for such period; plus 
  
 (4) all other non-cash items reducing such Consolidated Net
Income for such period (other than items that will require cash payments and for which an accrual is, or is required by GAAP to be, made), less all other non-cash items increasing such 

  

 6 

 
Consolidated Net Income for such period, other than the accrual of revenue in the ordinary course of business, 
  
 in each case, on a consolidated basis and determined in accordance with GAAP.

  
 Notwithstanding the preceding, the provision for taxes based
on the income or profits of, and the depreciation and amortization and other non-cash expenses of, a Restricted Subsidiary of the Company will be added to Consolidated Net Income to compute Consolidated Cash Flow of the Company only to the extent
that a corresponding amount would be permitted at the date of determination to be dividended to the Company by such Restricted Subsidiary without prior governmental approval (that has not been obtained), and without direct or indirect restriction
pursuant to the terms of its charter and all agreements, instruments, judgments, decrees, orders, statutes, rules and governmental regulations applicable to that Restricted Subsidiary or its stockholders. 
  
 “Consolidated Interest Expense” means, with respect
to any specified Person for any period, the sum, without duplication, of: 
  
 (1) the consolidated interest expense of such Person and its Restricted Subsidiaries for such period, whether paid or accrued, including, without limitation, amortization of debt issuance costs and original issue
discount, non-cash interest payments, the interest component of any deferred payment obligations, the interest component of all payments associated with Capital Lease Obligations, commissions, discounts and other fees and charges incurred in respect
of letter of credit or bankers’ acceptance financings, and net of the effect of all payments made or received pursuant to Hedging Obligations in respect of interest rates; plus 
  
 (2) the consolidated interest expense of such Person and its
Restricted Subsidiaries that was capitalized during such period; plus 
  
 (3) any interest expense on Indebtedness of another Person that is guaranteed by such Person or one of its Restricted Subsidiaries or secured by a Lien on assets of such Person or one of its Restricted Subsidiaries,
regardless of whether such Guarantee or Lien is called upon; plus 
  
 (4) all dividends, whether paid or accrued and regardless of whether in cash, on any series of preferred stock of such Person or any of its Restricted Subsidiaries, other than dividends on Equity Interests payable
solely in Equity Interests of the Company (other than Disqualified Stock) or to the Company or a Restricted Subsidiary of the Company, 
  
 in each case, on a consolidated basis and determined in accordance with GAAP. 
  

 7 

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

  
 (1) the Net Income (but not loss) of any
Person that is not a Restricted Subsidiary or that is accounted for by the equity method of accounting will be included only to the extent of the amount of dividends or similar distributions paid in cash to the specified Person or a Restricted
Subsidiary of the Person; 
  
 (2) the Net Income
of any Restricted Subsidiary will be excluded to the extent that the declaration or payment of dividends or similar distributions by that Restricted Subsidiary of that Net Income is not at the date of determination permitted without any prior
governmental approval (that has not been obtained) or, directly or indirectly, by operation of the terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that Restricted
Subsidiary or its stockholders; 
  
 (3) the
cumulative effect of a change in accounting principles will be excluded; 
  
 (4) any gains or losses (on an after-tax basis) attributable to Asset Sales shall be excluded in calculating Consolidated Net Income; and 
  
 (5) all extraordinary gains or losses shall be excluded in calculating Consolidated Net Income. 

 
 “Continuing Directors” means, as of any date of
determination, any member of the Board of Directors of the Company who: 
  
 (1) was a member of such Board of Directors on the Issue Date; or 
  
 (2) was nominated for election or elected to such Board of Directors with the approval of a majority of the Continuing Directors who were
members of such Board of Directors at the time of such nomination or election. 
  
 “Corporate Trust Office of the Trustee” will be at the address of the Trustee specified in Section 13.02(a) hereof or such other address as to which the Trustee may give notice to the Company.

  
 “Credit Facilities” means, one or more
debt facilities or commercial paper facilities, in each case with banks, other institutional lenders, financial institutions or debt investors providing for revolving credit loans, term loans, bridge loans, note purchase arrangements, hedge
agreements, debt securities, receivables financing (including, without limitation, through the sale of receivables to such parties or to special purpose entities formed to borrow from such parties against such receivables), one or more letters of
credit, or one or more indentures or similar agreements, including any related bond, note, debentures, Guarantees, collateral documents, instruments and agreements executed in connection therewith, in each case, as amended, restated, modified,
renewed, refunded, replaced or refinanced, whether or not with the same party (including, without limitation, by means of sales of debt securities to institutional investors) in whole or in part from time to time. 
  

 8 

 “Custodian” means the Trustee, as custodian with respect to the Notes in global
form, or any successor entity thereto. 
  
 “Debt to
Cash Flow Ratio” means, with respect to any specified Person as of any date of determination, the ratio of (a) the consolidated Indebtedness of such Person as of such date to (b) the Consolidated Cash Flow of such Person for the four
most recent full fiscal quarters for which internal financial statements are available prior to such date of determination, determined on a pro forma basis after giving effect to all acquisitions or dispositions of assets made by such Person and its
Restricted Subsidiaries from the beginning of such four-quarter period through and including such date of determination (including any related financing transactions) as if such acquisitions and dispositions (and related financing transactions) had
occurred at the beginning of such four-quarter period. 
  
 In
addition, for purposes of calculating the Debt to Cash Flow Ratio: 
  
 (1) acquisitions that have been made by the specified Person or any of its Restricted Subsidiaries, including through mergers or consolidations, or any Person or any of its Restricted Subsidiaries acquired by the
specified Person or any of its Restricted Subsidiaries, and including increases in ownership of Restricted Subsidiaries, during the four-quarter reference period or subsequent to such reference period and on or prior to the date on which the event
for which the calculation of the Debt to Cash Flow Ratio is made (the “Calculation Date”) will be given pro forma effect as if they had occurred on the first day of the four-quarter reference period; 
  
 (2) the Consolidated Cash Flow attributable to discontinued
operations, as determined in accordance with GAAP, and operations or businesses (and ownership interests therein) disposed of prior to the Calculation Date, will be excluded; 
  
 (3) any Person that is a Restricted Subsidiary on the Calculation Date will be deemed to have been a
Restricted Subsidiary at all times during such four-quarter reference period; and 
  
 (4) any Person that is not a Restricted Subsidiary on the Calculation Date will be deemed not to have been a Restricted Subsidiary at any
time during such four-quarter reference period. 
  
 “Default” means any event that is, or with the passage of time or the giving of notice or both would be, an Event of Default. 
  

“Definitive Note” means a certificated Note registered in the name of the Holder thereof and issued in accordance with Section
2.06 hereof, substantially in the form of Exhibit A1 hereto except that such Note shall not bear the Global Note Legend and shall not have the “Schedule of Exchanges of Interests in the Global Note” attached thereto. 
  
 “Depositary” means, with respect to the Notes
issuable or issued in whole or in part in global form, the Person specified in Section 2.03 hereof as the Depositary with respect to the Notes, and any and all successors thereto appointed as depositary hereunder and having become such pursuant to
the applicable provision of this Indenture. 
  

 9 

 “Disqualified Stock” means any Capital Stock that, by its terms (or by the terms
of any security into which it is convertible, or for which it is exchangeable, in each case at the option of the holder of the Capital Stock), or upon the happening of any event, matures or is mandatorily redeemable, pursuant to a sinking fund
obligation or otherwise, or redeemable at the option of the holder of the Capital Stock, in whole or in part, on or prior to the date that is 91 days after the date on which the Notes mature. Notwithstanding the preceding sentence, any Capital Stock
that would constitute Disqualified Stock solely because the holders of the Capital Stock have the right to require the Company to repurchase or redeem such Capital Stock upon the occurrence of a change of control or an asset sale of or by the
Company or any of its Restricted Subsidiaries will not constitute Disqualified Stock if such Capital Stock (A) was issued prior to the Issue Date or (B) was issued on or after the Issue Date and the terms of such Capital Stock provide that the
Company may not repurchase or redeem any such Capital Stock pursuant to such provisions unless such repurchase or redemption complies with Section 4.07 hereof. The amount of Disqualified Stock deemed to be outstanding at any time for purposes of
this Indenture will be the maximum amount that the Company and its Restricted Subsidiaries may become obligated to pay upon the maturity of, or pursuant to any mandatory redemption provisions of, such Disqualified Stock, exclusive of accrued
dividends. 
  
 “Domestic Restricted Subsidiary”
means any Restricted Subsidiary of the Company that was formed under the laws of the United States or any state of the United States or the District of Columbia or that guarantees or otherwise provides direct credit support for any
Indebtedness of the Company. 
  
 “Equity
Interests” means Capital Stock and all warrants, options or other rights to acquire Capital Stock (but excluding any debt securities convertible into, or exchangeable for, Capital Stock). 
  
 “Equity Offering” means any issuance or sale of
Equity Interests (other than Disqualified Stock), or a contribution to the equity capital, of the Company. 
  
 “Euroclear” means Euroclear Bank, S.A./N.V., as operator of the Euroclear system. 
  
 “Exchange Act” means the Securities Exchange Act of
1934, as amended. 
  
 “Exchange Notes”
means the Notes issued in the Exchange Offer pursuant to Section 2.06(f) hereof. 
  
 “Exchange Offer” has the meaning set forth in the Registration Rights Agreement. 
  
 “Exchange Offer Registration Statement” has the meaning set forth in the Registration Rights Agreement. 
  
 “Excluded Collateral” means: 
  
 (1) the capital stock of or ownership interests in a
Subsidiary not constituting a Guarantor; 
  

 10 

 (2) in the case of any Foreign Subsidiaries, the Capital Stock of “first tier”
foreign subsidiaries in excess of 65% of the capital stock of such “first tier” foreign subsidiaries for so long as the pledge at any greater percentage would have adverse tax consequences for the Company; 
  
 (3) any leased real property; 
  
 (4) any real property subject to a Sale and Leaseback
Transaction or any property subject to a Capital Lease Obligation; and 
  
 (5) (a) any assets owned by the Company or any of the Guarantors as of the Issue Date (the “Existing Assets”) as to which the right or ability of the Company or such Guarantor to pledge or
encumber such Existing Assets is (i) restricted by agreement with a third party in effect on the Issue Date or for which the consent or approval of a third party is required as of the Issue Date, or (ii) prohibited by law or regulation or
governmental franchise agreement, (b) any assets acquired by the Company or any of the Guarantors after the Issue Date (the “Acquired Assets”) as to which the right or ability of the Company or such Guarantor to pledge or
encumber such Acquired Assets is (i) restricted by agreement with a third party in effect on the date of such acquisition (other than any such restrictions entered into in contemplation of such acquisition) or for which the consent or approval of a
third party is required as of the date of such acquisition, or (ii) prohibited by law or regulation or governmental franchise agreement, (c) Acquired Assets which either singly, or taken together with all such other Acquired Assets included within
this clause (c), are not material to the business, operations or financial condition of the Company and the Guarantors taken as a whole. or (d) property subject to the cash collateral agreements to the extent permitted pursuant to clause (17) of the
definition of “Permitted Liens.” 
  
 “Existing Indebtedness” means Indebtedness of the Company and its Subsidiaries in existence on the Issue Date. 
  
 “Fair Market Value” means the value that would be paid by a willing buyer to an unaffiliated willing seller in a transaction not
involving distress or necessity of either party, determined in good faith by the Board of Directors of the Company, whose determination shall be conclusive. 
  
 “GAAP” means generally accepted accounting principles in the United States of America as 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 have been
approved by a significant segment of the accounting profession, which are in effect as of the Issue Date. 
  
 “Global Note Legend” means the legend set forth in Section 2.06(g)(2), which is required to be placed on all Global Notes issued
under this Indenture. 
  
 “Global Notes”
means, individually and collectively, each of the Restricted Global Notes and the Unrestricted Global Notes deposited with or on behalf of and registered in the name of 

  

 11 

 
the Depository or its nominee, substantially in the form of Exhibit A1 hereto and that bears the Global Note Legend and that has the “Schedule of
Exchanges of Interests in the Global Note” attached thereto, issued in accordance with Section 2.01, 2.06(b)(3), 2.06(b)(4), 2.06(d)(2), 2.06(d)(3) or 2.06(f) hereof. 
  
 “Government Securities” means direct obligations of, or obligations guaranteed by, the United States
of America, and the payment for which the United States pledges its full faith and credit. 
  
 “Guarantee” means a guarantee other than by endorsement of negotiable instruments for collection in the ordinary course of business, direct or indirect, in any manner including, without
limitation, by way of a pledge of assets or through letters of credit or reimbursement agreements in respect thereof, of all or any part of any Indebtedness (whether arising by virtue of partnership arrangements, or by agreements to keep-well, to
purchase assets, goods, securities or services, to take or pay or to maintain financial statement conditions or otherwise). 
  
 “Guarantors” means, as of any time, each of the Company’s Domestic Restricted Subsidiaries that at such time are guarantors
of the Notes in accordance with the provisions hereof. 
  
 “Hedging Obligations” means, with respect to any specified Person, the obligations of such Person under: 
  
 (1) interest rate swap agreements (whether from fixed to floating or from floating to fixed), interest rate cap agreements, interest rate
exchange agreements and interest rate collar agreements; 
  
 (2) other agreements or arrangements designed to manage interest rates or interest rate risk; and 
  
 (3) other agreements or arrangements designed to protect such Person against fluctuations in currency exchange rates or commodity prices.

  
 “Holder” means a Person in whose name
a Note is registered. 
  
 “Immaterial Subsidiary”
means, as of any date, any Restricted Subsidiary whose total assets, as of that date, are less than $1.0 million and whose total revenues for the most recent 12-month period do not exceed $500,000; provided that a Restricted Subsidiary will
not be considered to be an Immaterial Subsidiary if it, directly or indirectly, guarantees or otherwise provides direct credit support for any Indebtedness of the Company or any Guarantor. 
  
 “Indebtedness” means, with respect to any specified
Person, without duplication, any indebtedness of such Person, regardless of whether contingent: 
  
 (1) in respect of borrowed money; 
  
 (2) evidenced by bonds, notes, debentures or similar instruments or letters of credit (or reimbursement agreements in respect thereof);

  

 12 

 (3) in respect of banker’s acceptances; 
  
 (4) representing Capital Lease Obligations; 
  
 (5) representing the balance deferred and unpaid of the
purchase price of any property or services due more than six months after such property is acquired or such services are completed, except any such balance that constitutes an accrued expense or a trade payable; 
  
 (6) representing the maximum fixed redemption or repurchase
price of Disqualified Stock, exclusive of accrued dividends thereon, of such Person at the time of determination and, with respect to any Restricted Subsidiary that is not a Guarantor, any preferred stock; or 
  
 (7) obligations under any Hedging Obligations, 

 
 if and to the extent any of the preceding items (other than letters of credit,
Disqualified Stock, preferred stock and Hedging Obligations) would appear as a liability upon a balance sheet of the specified Person prepared in accordance with GAAP. In addition, the term “Indebtedness” includes (a) all indebtedness of
any other Person, of the types described above in clauses (1) through (7), secured by a Lien on any asset of the specified Person (regardless of whether such indebtedness is assumed by the specified Person) and (b) to the extent not otherwise
included, the guarantee by the specified Person of any indebtedness of any other Person, of the types described above in clauses (1) through (7). 
  
 Notwithstanding the foregoing, the following shall not constitute Indebtedness: 
  
 (a) accrued expenses and trade accounts payable arising in the ordinary course of business; 
  
 (b) any indebtedness that has been defeased in accordance
with GAAP or defeased pursuant to the deposit of cash or Cash Equivalents (in an amount sufficient to satisfy all obligations relating thereto at maturity or redemption, as applicable, including all payments of interest and premium, if any) in a
trust or account created or pledged for the sole benefit of the holders of such indebtedness, and subject to no other Liens, and in accordance with the other applicable terms of the instrument governing such indebtedness; 
  
 (c) any obligation arising from the honoring by a bank or
other financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary course of business; provided, however, that such obligation is extinguished within five business days of its incurrence; and

  
 (d) any obligation arising from any agreement
providing for indemnities, guarantees, purchase price adjustments, holdbacks, contingency payment obligations based on the performance of the acquired or disposed assets or similar obligations (other than guarantees of Indebtedness) incurred by any
Person in connection with the acquisition or disposition of assets or Capital Stock. 
  

 13 

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

  
 “Indirect Participant” means a Person
who holds a beneficial interest in a Global Note through a Participant. 
  
 “Initial Notes” means the first $136,000,000 aggregate principal amount of Notes issued under this Indenture on the Issue Date. 
  

“Initial Purchasers” means Bear, Stearns & Co. Inc. and Deutsche Bank Securities Inc. 
  
 “Institutional Accredited Investor” means an
institution that is an “accredited investor” as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act, who are not also QIBs. 
  
 “Investments” means, with respect to any Person, all investments by such Person in other Persons (including Affiliates) in the
form of loans (including Guarantees or other obligations), advances or capital contributions (excluding commission, travel and similar advances to officers and employees made in the ordinary course of business and excluding accounts receivables
created or acquired in the ordinary course of business), purchases or other acquisitions for consideration of Indebtedness, Equity Interests or other securities, together with all items that are or would be classified as investments on a balance
sheet prepared in accordance with GAAP. If the Company or any Subsidiary of the Company sells or otherwise disposes of any Equity Interests of any direct or indirect Restricted Subsidiary of the Company such that, after giving effect to any such
sale or disposition, such Person is no longer a Subsidiary of the Company, the Company will be deemed to have made an Investment on the date of any such sale or other disposition equal to the Fair Market Value of the Company’s Investments in
such Subsidiary that were not sold or disposed of in an amount determined as provided in the final paragraph of Section 4.07(b) hereof. The acquisition by the Company or any Subsidiary of the Company of a Person that holds an Investment in a third
Person will be deemed to be an Investment by the Company or such Subsidiary in such third Person in an amount equal to the Fair Market Value of the Investments held by the acquired Person in such third Person in an amount determined as provided in
Section 4.07(c) hereof. 
  
 “Issue Date”
means the first date on which Notes are issued under this Indenture. 
  
 “Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in the City of New York or at a place of payment are authorized or obligated by law, regulation or executive
order to remain closed. If a payment date is a Legal Holiday at a place of payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue on such payment for the intervening period.

  
 “Letter of Transmittal” means the
letter of transmittal to be prepared by the Company and sent to all Holders of the Notes for use by such Holders in connection with the Exchange Offer. 
  
 “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in
respect of such asset, regardless of whether filed, recorded or otherwise perfected under applicable law including any conditional sale or other title retention agreement, any lease in the nature thereof, any option or other agreement to sell or
give 

  

 14 

 
a security interest in, and any filing of or agreement to give any financing statement under the Uniform Commercial Code (or equivalent statutes) of any
jurisdiction. 
  
 “Liquidated Damages”
means all liquidated damages then owing pursuant to the Registration Rights Agreement. 
  
 “Net Income” means, with respect to any specified Person, the net income (loss) of such Person, determined in accordance with GAAP and before any reduction in respect of preferred stock
dividends, excluding, however: 
  
 (1) any gain
or loss, together with any related provision for taxes on such gain or loss, realized in connection with: (a) any Asset Sale (without regard to the $3.0 million limitation set forth in clause (1) of the second paragraph of the definition of
“Asset Sale”); or (b) the disposition of any securities by such Person or any of its Restricted Subsidiaries or the extinguishment of any Indebtedness of such Person or any of its Restricted Subsidiaries; and 
  
 (2) any extraordinary gain or loss, together with any
related provision for taxes on such extraordinary gain or loss. 
  
 “Net Proceeds” means the aggregate cash proceeds received by the Company or any of its Restricted Subsidiaries in respect of any Asset Sale or issuance of Capital Stock (including, without limitation, any cash
received upon the sale or other disposition of any non-cash consideration received in any Asset Sale or issuance of Capital Stock), net of the direct costs relating to such Asset Sale or issuance of Capital Stock, including, without limitation,
legal, accounting and investment banking fees, and sales commissions, and any relocation expenses incurred as a result of the Asset Sale or issuance of Capital Stock, taxes paid or payable as a result of the Asset Sale or issuance of Capital Stock,
in each case, after taking into account any available tax credits or deductions and any tax sharing arrangements, and amounts required to be applied to the repayment of Indebtedness, other than Indebtedness under a Credit Facility, secured by a Lien
on the asset or assets that were the subject of such Asset Sale and any reserve for adjustment in respect of the sale price of such asset or assets established in accordance with GAAP. 
  
 “Non-Recourse Debt” means Indebtedness: 
  
 (1) as to which neither the Company nor any of its
Restricted Subsidiaries (a) provides credit support of any kind (including any undertaking, agreement or instrument that would constitute Indebtedness) or (b) is directly or indirectly liable as a guarantor or otherwise; and 
  
 (2) no default with respect to which (including any rights
that the holders of the Indebtedness may have to take enforcement action against an Unrestricted Subsidiary) would permit upon notice, lapse of time or both any holder of any other Indebtedness of the Company or any of its Restricted Subsidiaries to
declare a default on such other Indebtedness or to cause the payment of the Indebtedness to be accelerated or payable prior to its Stated Maturity. 
  

 15 

 “Non-U.S. Person” means a Person who is not a U.S. Person. 
  
 “Note Liens” “ means, to the extent
securing Note Obligations, a Lien granted pursuant to a Security Document as security for the Note Obligations. 
  
 “Note Obligations” means the notes (including, without limitation, any Additional Notes), the Guarantees and all other Obligations
of any Obligor under this Indenture, the Notes (including, without limitation, any Additional Notes), the Guarantees and the Security Documents. 
  
 “Notes” has the meaning assigned to it in the preamble to this Indenture. 
  
 “Obligations” means any principal, interest,
penalties, fees, indemnifications, reimbursements, damages and other liabilities payable under the documentation governing any Indebtedness. 
  
 “Obligor” means a Person obligated as an issuer or guarantor of the notes. 
  
 “Officer” means, with respect to any Person, the
Chairman of the Board, the Chief Executive Officer, the President, the Chief Operating Officer, the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary or any Vice-President of such Person. 
  
 “Officers’ Certificate” means a certificate
signed on behalf of the Company by two Officers of the Company, at least one of whom must be the principal executive officer, the principal financial officer, the treasurer or the principal accounting officer of the Company, that meets the
requirements of Sections 13.04 and 13.05 hereof. 
  
 “Opinion of Counsel” means an opinion from legal counsel who is reasonably acceptable to the Trustee, that meets the requirements of Sections 13.04 and 13.05 hereof. The counsel may be an employee of or counsel to
the Company, any Subsidiary of the Company or the Trustee. 
  
 “Parent” means any entity that: 
  
 (i) acquires 100% of the outstanding Equity Interests of the Company in a transaction; or 
  
 (ii) as a result of and after a Restructuring beneficially owns 100% of the outstanding Equity Interests of the Company (or its
successor), 
  
 and, in either case, the Beneficial Owners of the Company
immediately prior to such transaction or Restructuring are the Beneficial Owners of the Parent in the same proportion immediately after such transaction or Restructuring. Parent shall not be a Guarantor nor shall Parent be subject to any of the
covenants contained herein. 
  
 “Participant” means, with respect to the Depositary, Euroclear or Clearstream, a Person who has an account with the Depositary, Euroclear or Clearstream, respectively (and, with respect to DTC, shall include
Euroclear and Clearstream). 
  

 16 

 “Permitted Business” means: 
  
 (1) the delivery, distribution of or provision of services
relating to the delivery, sale, construction or distribution of telecommunications, voice, fax, data or video services and networks; 
  
 (2) the creation, development or marketing of communications related network equipment, software and other devices for use in the
telecommunications or communications business described in clause (1) above; or 
  
 (3) the evaluation, participation or pursuit of any business, activity or opportunity reasonably related or ancillary to those listed in
clause (1) above, including any lines of business conducted by the Company and its Subsidiaries on the Issue Date or which are contemplated in the offering memorandum and any businesses similar, related, incidental or ancillary thereto or that
constitutes a reasonable extension or expansion thereof, and the acquisition, holding or exploitation of any license relating to the delivery of those services. 
  

“Permitted Investments” means: 
  
 (1) any Investment in the Company or in a Restricted Subsidiary of the Company; 
  
 (2) any Investment in Cash Equivalents; 
  
 (3) any Investment by the Company or any Restricted
Subsidiary of the Company in a Person, if as a result of such Investment: 
  
 (a) such Person becomes a Restricted Subsidiary of the Company; or 
  
 (b) such Person is merged, consolidated or amalgamated with or into, or transfers or conveys substantially all of its assets to, or is
liquidated into, the Company or a Restricted Subsidiary of the Company; 
  
 (4) any Investment made as a result of the receipt of non-cash consideration from an Asset Sale that was made pursuant to and in compliance with Section 4.10 hereof; 
  
 (5) any Investments received in compromise or resolution of
(A) obligations of trade creditors or customers that were incurred in the ordinary course of business of the Company or any of its Restricted Subsidiaries, including pursuant to any plan of reorganization or similar arrangement upon the bankruptcy
or insolvency of any trade creditor or customer; or (B) litigation, arbitration or other disputes; 
  
 (6) any acquisition of assets received solely in exchange for or with the Net Proceeds from any issuance of Capital Stock; 
  

 17 

 (7) loans or advances to employees or directors of the Company or any of its Restricted
Subsidiaries made in the ordinary course of business of the Company or any of its Restricted Subsidiaries in an aggregate principal amount not to exceed $1.0 million at any one time outstanding; 
  
 (8) repurchases of or other Investments in the Notes;

  
 (9) advances and prepayments for asset
purchases in the ordinary course of business in a Permitted Business of the Company or any of its Restricted Subsidiaries; 
  
 (10) Investments existing on the Issue Date or made pursuant to a legally binding commitment in existence on the Issue Date; 

 
 (11) other Investments in any Person having an aggregate
Fair Market Value (measured on the date each such Investment was made and without giving effect to subsequent changes in value and determined by the Board of Directors of the Company, whose determination will be conclusive), when taken together with
all other Investments made pursuant to this clause (11) that are at the time outstanding not to exceed $5.0 million; 
  
 (12) Investments indirectly acquired by the Company or any of its Restricted Subsidiaries through a direct Investment in another Person
made in compliance with this Indenture, provided that such Investments existed prior to and were not made in contemplation of such acquisition; 
  
 (13) Investments represented by Hedging Obligations; 
  
 (14) Permitted Joint Venture Investments in an aggregate amount (measured on the date each such Investment
was made and without giving effect to subsequent changes in value), when taken together with all other Permitted Joint Venture Investments made pursuant to this clause (14), not to exceed $10.0 million; and 
  
 (15) Investments in prepaid expenses, negotiable instruments
held for collection and lease, utility and workers’ compensation, performance and other similar deposits in the ordinary course of business. 
  
 Notwithstanding any other provision to the contrary, no Permitted Investment will be deemed to be a Restricted Payment. 
  
 “Permitted Joint Venture Investments” means, with
respect to any specified Person, Investments in any other Person engaged in a Permitted Business (a) over which the specified Person is responsible (either directly or through a services agreement) for day-to-day operations or otherwise has
operational and managerial control of such other Person and (b) of which at least 40% of the outstanding Capital Stock of such other Person is at the time owned directly or indirectly by the specified Person. 
  

 18 

 “Permitted Liens” means 
  
 (1) Liens in favor of the Company or any of its Restricted
Subsidiaries; 
  
 (2) Liens on property, or on
shares of capital stock or Indebtedness of a Person existing at the time such Person is merged with or into or consolidated with the Company or any Subsidiary of the Company; provided that such Liens were in existence prior to the
contemplation of such merger or consolidation and do not extend to any assets other than those of the Person merged into or consolidated with the Company or the Subsidiary; 
  
 (3) Liens on property (including Capital Stock) existing at the time of acquisition of the property by the
Company or any Subsidiary of the Company; provided that such Liens were not incurred in contemplation of such acquisition; 
  
 (4) bankers’ Liens, rights of setoff and Liens to secure the performance of bids, tenders, trade or governmental contracts, leases,
licenses, statutory obligations, surety or appeal bonds, performance bonds or other obligations of a like nature incurred in the ordinary course of business; 
  

(5) purchase money mortgages (including, without limitation, Capitalized Lease Obligations and purchase money security interests)
permitted pursuant to Section 4.09 hereof; 
  
 (6) Liens existing on the Issue Date; 
  
 (7) Liens for taxes, assessments or governmental charges or claims that are not yet delinquent or that are being contested in good faith by appropriate proceedings promptly instituted and diligently concluded; provided that any reserve or
other appropriate provision as is required in conformity with GAAP has been made therefor; 
  
 (8) Liens imposed by law, such as carriers’, warehousemen’s, repairmen’s, landlord’s and mechanics’ Liens or
other similar Liens, in each case, incurred in the ordinary course of business; 
  
 (9) survey exceptions, easements or reservations of, or rights of others for, licenses, rights-of-way, sewers, electric lines, telegraph
and telephone lines and other similar purposes, or zoning or other restrictions as to the use of real property that do not interfere in any material respect with the ordinary conduct of the business of the Company or its Restricted Subsidiaries;

  
 (10) Liens arising by reason of a judgment,
decree or court order, to the extent not otherwise resulting in an Event of Default, and any Liens that are required to protect or enforce any rights in any administrative, arbitration or other court proceedings in the ordinary course of business;

  
 (11) Liens securing Hedging Obligations,
which Hedging Obligations relate to Indebtedness that is otherwise not prohibited under this Indenture; 
  

 19 

 (12) Liens created for the benefit of (or to secure) the Notes (or the Subsidiary
Guarantees); 
  
 (13) Liens to secure any
Permitted Refinancing Indebtedness permitted to be incurred under this Indenture; provided, that: 
  
 (a) the new Lien will be limited to all or part of the same property and assets that secured or, under the written agreements pursuant to
which the original Lien arose, could secure the original Lien (plus improvements and accessions to, such property or proceeds or distributions thereof); and 
  
 (b) the Indebtedness secured by the new Lien is not increased to any amount greater than the sum of (x) the outstanding principal amount
or, if greater, committed amount, of the Permitted Refinancing Indebtedness and (y) an amount necessary to pay any fees and expenses, including premiums, related to such Permitted Refinancing Indebtedness; 
  
 (14) Liens contained in purchase and sale agreements
limiting the transfer of assets pending the closing of the transactions contemplated by such agreements; 
  
 (15) Liens that may be deemed to exist by virtue of contractual provisions that restrict the ability of the Company or any of its
Subsidiaries from granting or permitting to exist Liens on their respective assets; 
  
 (16) Liens in favor of the Trustee for the notes as provided for in this Indenture on money or property held or collected by the Trustee
in its capacity as trustee; 
  
 (17) Liens
incurred in the ordinary course of business of the Company or any Subsidiary of the Company with respect to the cash collateralization of obligations under letters of credit in an amount not to exceed the face amount of such letters of credit, that
in the aggregate do not exceed $10.0 million at any one time outstanding; 
  
 (18) Liens incidental to the conduct of the Company’s or a Restricted Subsidiary’s business or the ownership by the Company or such Restricted Subsidiary of its property and assets not securing Indebtedness,
and which do not in the aggregate materially detract from the value of the assets or property of the Company and its Restricted Subsidiaries, taken as a whole, or materially impair the use of such assets or property in the operation of the business
of the Company or any of its Restricted Subsidiaries; 
  
 (19) Liens incurred or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other types of social security; 
  
 (20) any interest or title of a lessor under any Capital Lease Obligation; 
  
 (21) leases or subleases granted to others that do not
materially interfere with the ordinary course of business of the Company and its Restricted Subsidiaries; 
  

 20 

 (22) Liens of vendors encumbering equipment or other assets in the ordinary course of
business arising from partial or incomplete payments by the Company or its Restricted Subsidiaries relating to such property or other assets; 
  
 (23) Liens arising out of conditional sale, title retention, consignment or similar arrangements for the sale of goods entered into by the
Company or any of its Restricted Subsidiaries in the ordinary course of business; and 
  
 (24) Liens on the assets of the Company or its Restricted Subsidiaries securing Indebtedness incurred in any permitted Sale and Leaseback
Transaction. 
  
 “Permitted Payments to
Parent” means (a) for so long as the Company is a member of a group filing a consolidated or combined tax return with Parent, payments to Parent in respect of an allocable portion of the tax liabilities of such group that is
attributable to the Company and its Subsidiaries (“Tax Payments”) and (b) any general administrative expenses incurred by Parent (including, without limitation, administrative expenses incurred in connection with the operation of
Parent, the filing of required documents with the Exchange Act and the offering of the Notes). The Tax Payments shall not exceed the lesser of (a) the amount of the relevant tax (including any penalties and interest) that the Company would owe if
the Company were filing a separate tax return (or a separate consolidated or combined return with its Subsidiaries that are members of the consolidated or combined group), taking into account any carryovers and carrybacks of tax attributes (such as
net operating losses) of the Company and such Subsidiaries from other taxable years and (b) the net amount of the relevant tax that Parent actually owes to the appropriate taxing authority. Any Tax Payments received from the Company shall be paid
over to the appropriate taxing authority within 30 days of the Parent’s receipt of such Tax Payments or refunded to the Company. 
  
 “Permitted Refinancing Indebtedness” means any Indebtedness of the Company or any of its Restricted Subsidiaries, any Disqualified
Stock of the Company or any Restricted Subsidiary or any preferred stock or Disqualified Stock of any Guarantor issued (a) in exchange for, or the net proceeds of which are used to extend, renew, refund, refinance, replace, defease, discharge or
otherwise retire for value, in whole or in part, or (b) constituting an amendment, modification or supplement to or a deferral or renewal of ((a) and (b) above, collectively, a “Refinancing”), any other Indebtedness of the Company
or any such Restricted Subsidiary (other than intercompany Indebtedness), any Disqualified Stock of the Company or its Restricted Subsidiaries or any Disqualified Stock or preferred stock of a Guarantor in a principal amount or, in the case of
Disqualified Stock of the Company or any Restricted Subsidiary or Disqualified Stock or preferred stock of a Guarantor, liquidation preference, not to exceed (after deduction of reasonable and customary fees and expenses (including consent fees)
incurred in connection with the Refinancing) the lesser of: 
  
 (1) the principal amount or, in the case of Disqualified Stock or preferred stock, liquidation preference, of the Indebtedness, Disqualified Stock or preferred stock so Refinanced (plus, in the case of Indebtedness,
the amount of premium and accrued but unpaid interest, if any, to be paid in connection therewith), and 
  

 21 

 (2) if the Indebtedness being Refinanced was issued with any original issue discount, the
accreted value of such Indebtedness (as determined in accordance with GAAP) at the time of such Refinancing (plus, in the case of Indebtedness, the amount of premium and accrued but unpaid interest, if any, to be paid in connection therewith).

  
 Notwithstanding the preceding, no Indebtedness, Disqualified
Stock or preferred stock will be deemed to be Permitted Refinancing Indebtedness, unless: 
  
 (1) (A) if such Indebtedness, Disqualified Stock or preferred stock has a Weighted Average Life to Maturity shorter than that of the notes
or a final maturity date or redemption date, as applicable, earlier than the final maturity date of the notes, such Permitted Refinancing Indebtedness shall have a Weighted Average Life to Maturity no shorter than the remaining Weighted Average Life
to Maturity of the Indebtedness, Disqualified Stock or preferred stock being Refinanced or (B) in all other cases, such Indebtedness, Disqualified Stock or preferred stock shall have a final maturity date or redemption date, as applicable, later
than the final maturity date of, and shall have a Weighted Average Life to Maturity equal to or greater than the Weighted Average Life to Maturity of, the notes; 
  
 (2) if the Indebtedness, Disqualified Stock or preferred stock being Refinanced is contractually
subordinated or otherwise junior in right of payment to the Notes, such Indebtedness, Disqualified Stock or preferred stock is contractually subordinated or otherwise junior in right of payment to, the Notes, on terms at least as favorable to the
holders of Notes as those contained in the documentation governing the Indebtedness, Disqualified Stock or preferred stock being Refinanced at the time of the Refinancing; and 
  
 (3) such Indebtedness or Disqualified Stock is incurred or issued by the Company or such Indebtedness,
Disqualified Stock or preferred stock is incurred or issued by the Restricted Subsidiary who is the obligor on the Indebtedness being Refinanced or the issuer of the Disqualified Stock or preferred stock being Refinanced. 
  
 “Person” means any individual, corporation,
partnership, joint venture, association, joint-stock company, trust, unincorporated organization, limited liability company or government or other entity. 
  
 “Pledge and Security Agreement” means that certain Pledge and Security Agreement, dated as of even date herewith, by and among the
Company, the Collateral Agent and the Guarantors, as the same may be amended, supplemented or otherwise modified from time to time. 
  
 “Principals” means J.H. Whitney IV, L.P., Centennial Entrepreneurs Fund VI, L.P., Reliant Energy Broadband, Inc., Lightspeed
Venture Partners, Austin Ventures VII, L.P., Alta Communications VIII, L.P., Fleet Equity Partners VI, L.P., Harbourvest Partners VI—Direct Fund, L.P., CIBC WMV Inc., Trinity Ventures VII, L.P., Prime VIII, L.P., Toronto Dominion Investments,
Inc., BancBoston Ventures, Inc., and any of their respective Affiliates which, directly or indirectly, controls such Person. 
  

 22 

 “Private Placement Legend” means the legend set forth in Section 2.06(g)(1) to be
placed on all Notes issued under this Indenture except where otherwise permitted by the provisions of this Indenture. 
  
 “pro forma” means, with respect to any calculation made or required to be made pursuant to the terms hereof, a calculation
performed in accordance with the provisions of Article 11 of Regulation S-X promulgated under the Exchange Act; provided, however, that (a) the acquisition of Denton Telecom Partners I, L.P., (also called Advantex Communications) and (b) the
termination of that certain Services Agreement, dated as of May 10, 1999, by and between MCI WorldCom Network Services, Inc. and Grande Communications Networks, Inc., as successor-in-interest to Thrifty Call, Inc., as amended, each shall be
considered a “condition” as contemplated by Section 11-01(a) of Regulation S-X. 
  
 “QIB” means a “qualified institutional buyer” as defined in Rule 144A. 
  
 “Registration Rights Agreement” means the Registration Rights Agreement, dated as of March 23, 2004, among the Company, the
Guarantors and the other parties named on the signature pages thereof, as such agreement may be amended, modified or supplemented from time to time and, with respect to any Additional Notes, one or more registration rights agreements among the
Company, the Guarantors and the other parties thereto, as such agreements may be amended, modified or supplemented from time to time, relating to rights given by the Company to the purchasers of Additional Notes to register such Additional Notes
under the Securities Act. 
  
 “Regulation
S” means Regulation S promulgated under the Securities Act. 
  
 “Regulation S Global Note” means a Regulation S Temporary Global Note or Regulation S Permanent Global Note, as appropriate. 
  
 “Regulation S Permanent Global Note” means a permanent Global Note in the form of Exhibit A1
hereto bearing the Global Note Legend and the Private Placement Legend and deposited with or on behalf of and registered in the name of the Depositary or its nominee, issued in a denomination equal to the outstanding principal amount of the
Regulation S Temporary Global Note upon expiration of the Restricted Period. 
  
 “Regulation S Temporary Global Note” means a temporary Global Note in the form of Exhibit A2 hereto deposited with or on behalf of and registered in the name of the Depositary or its
nominee, issued in a denomination equal to the outstanding principal amount of the Notes initially sold in reliance on Rule 903 of Regulation S. 
  
 “Related Party” means any Person which, as of the Issue Date, is (1) a controlling stockholder, 80% (or more) owned Subsidiary, or
immediate family member (in the case of an individual) of any Principal, or (2) a trust, corporation, partnership or other entity, the beneficiaries, stockholders, partners, owners or Persons Beneficially Owning an 80% or more controlling interest
of which consists of one or more Principals and/or such other Persons referred to in clause (1). 
  

 23 

 “Required Secured Parties” shall mean, as of any date of determination, the
Secured Parties holding (or, in the case of the Trustee, acting as trustee for the Notes) more than 50% of the sum of the unpaid Accreted Value of the Notes. Any action so taken by the Trustee shall constitute an action on behalf of all of the Notes
without regard to the percentage of the Holders directing or authorizing the Trustee to take such action. 
  
 “Responsible Officer,” when used with respect to the Trustee, means any officer within the Corporate Trust Administration of the
Trustee (or any successor group of the Trustee) or any other officer of the Trustee customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust
matter, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject. 
  
 “Restricted Definitive Note” means a Definitive Note bearing the Private Placement Legend. 
  
 “Restricted Global Note” means a Global Note bearing
the Private Placement Legend. 
  
 “Restricted
Investment” means an Investment other than a Permitted Investment. 
  
 “Restricted Note” means a Restricted Definitive Note or a Restricted Global Note. 
  
 “Restricted Period” means the 40-day distribution compliance period as defined in Regulation S. 
  
 “Restricted Subsidiary” of a Person means any
Subsidiary of the referent Person that is not an Unrestricted Subsidiary. 
  
 “Restructuring” means a transaction, whether by merger, contribution, capitalization or otherwise, pursuant to which (a) the Company or its successor becomes a wholly-owned subsidiary of the
Parent and (b) the warrants and the warrant shares of the Company and all of the related obligations are transferred to, assumed by or contributed to the Parent; provided that all of the Restricted Subsidiaries of the Company immediately
prior to such Restructuring shall remain Restricted Subsidiaries of the Company (or its successor) immediately after such Restructuring. Upon a Restructuring, Parent shall not be a Guarantor nor shall Parent be subject to any of the covenants set
forth in this Indenture. 
  
 “Rule 144”
means Rule 144 promulgated under the Securities Act. 
  
 “Rule 144A” means Rule 144A promulgated under the Securities Act. 
  
 “Rule 903” means Rule 903 promulgated under the Securities Act. 
  
 “Rule 904” means Rule 904 promulgated under the Securities Act. 
  
 “Sale and Leaseback Transaction” of any Person means
an arrangement providing for the sale or transfer by the Company or any Restricted Subsidiary of any property to another 

  

 24 

 
Person that is thereafter leased back from such Person by the Company or any Restricted Subsidiary. 
  
 “SEC” means the Securities and Exchange Commission.

  
 “Secured Parties” means the Holders
together with U.S. Bank National Association. 
  
 “Securities Act” means the Securities Act of 1933, as amended. 
  
 “Security Documents” means those documents (including, but not limited to, the Pledge and Security Agreement, together with all
supplements thereto and all deposit account agreements, mortgages, trademark, copyright and patent security agreements, in each case as amended, supplemented, amended and restated or otherwise modified from time to time) executed by the Company, the
Guarantors, the Collateral Agent and the Holders, as applicable, regarding the Collateral and the Note Obligations. 
  
 “Shelf Registration Statement” means the Shelf Registration Statement as defined in the Registration Rights Agreement. 

 
 “Significant Subsidiary” means any Subsidiary that
would be a “significant subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act, as such Regulation is in effect on the Issue Date. 
  
 “Stated Maturity” means, with respect to any
installment of interest, principal or premiums, if any, on any series of Indebtedness, the date on which the payment of such interest, principal or premiums, if any, is scheduled to be paid in the documentation governing such Indebtedness, and will
not include any contingent obligations to redeem or repurchase such Indebtedness or to pay any such interest, principal or premium, if any, on such Indebtedness prior to the date originally scheduled for the payment thereof. 
  
 “Subordinated Indebtedness” means Indebtedness of the
Company or a Guarantor that is contractually subordinated in right of payment, in any respect (by its terms or the terms of any document or instrument relating thereto), to the Notes or the Subsidiary Guarantee of such Guarantor, as applicable.

  
 “Subsidiary” means, with respect to
any specified Person: 
  
 (1) any corporation,
association or other business entity of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency and after giving effect to any voting agreement or stockholders’
agreement that effectively transfers voting power) to vote in the election of directors, managers or trustees of the corporation, association or other business entity is at the time owned or controlled, directly or indirectly, by that Person or one
or more of the other Subsidiaries of that Person (or a combination thereof); and 
  
 (2) any partnership, trust or limited liability company (a) the sole general partner, managing general partner, sole member or trustee of
which is such Person or a Subsidiary of such Person or (b) the only general partners or managing members of 

  

 25 

 
which are that Person or one or more Subsidiaries of that Person (or any combination thereof). 
  
 “Subsidiary Guarantee” means each Guarantee of the obligations of the Company under this Indenture
and the Notes by a Subsidiary of the Company in accordance with the provisions hereof. 
  
 “substantially concurrent” means that such action or event has been completed, or an irrevocable commitment has been made, within 90 days of the original event. 
  
 “TIA” means the Trust Indenture Act of 1939 (15
U.S.C. §§ 77aaa-77bbbb) as in effect on the date on which this Indenture is qualified thereunder. 
  
 “Trustee” means the party named as such in the preamble to this Indenture until a successor replaces it in accordance with the
applicable provisions of this Indenture and thereafter means the successor serving hereunder. 
  
 “Unrestricted Definitive Note” means a Definitive Note that does not bear and is not required to bear the Private Placement Legend. 
  
 “Unrestricted Global Note” means a Global Note that does not bear and is not required to bear the
Private Placement Legend. 
  
 “Unrestricted
Note” means an Unrestricted Definitive Note or an Unrestricted Global Note. 
  
 “Unrestricted Subsidiary” means any Subsidiary of the Company that is designated by the Board of Directors of the Company as an Unrestricted Subsidiary pursuant to a resolution of the Board of
Directors, but only to the extent that such Subsidiary: 
  
 (1) has no Indebtedness other than Non-Recourse Debt; 
  
 (2) except as permitted by Section 4.11 hereof, is not party to any agreement, contract, arrangement or understanding with the Company or
any Restricted Subsidiary of the Company unless the terms of any such agreement, contract, arrangement or understanding are no less favorable to the Company or such Restricted Subsidiary than those that might be obtained at the time from Persons who
are not Affiliates of the Company; 
  
 (3) is a
Person with respect to which neither the Company nor any of its Restricted Subsidiaries has any direct or indirect obligation (a) to subscribe for additional Equity Interests or (b) to maintain or preserve such Person’s financial condition or
to cause such Person to achieve any specified levels of operating results; and 
  
 (4) has not guaranteed or otherwise directly or indirectly provided credit support for any Indebtedness of the Company or any of its
Restricted Subsidiaries. 
  

 26 

 Any designation of a Subsidiary of the Company as an Unrestricted Subsidiary will be evidenced to the
Trustee by filing with the Trustee a certified copy of the resolution of the Board of Directors of the Company giving effect to such designation and an Officers’ Certificate certifying that such designation complied with the preceding
conditions and was permitted by Section 4.07 hereof. If, at any time, any Unrestricted Subsidiary would fail to meet the preceding requirements as an Unrestricted Subsidiary, it will thereafter cease to be an Unrestricted Subsidiary for purposes of
this Indenture and any Indebtedness of such Subsidiary will be deemed to be incurred by a Restricted Subsidiary of the Company as of such date and, if such Indebtedness is not permitted to be incurred as of such date under Section 4.09 hereof, the
Company will be in default of such covenant. The Board of Directors of the Company may at any time designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided that such designation will be deemed to be an incurrence of Indebtedness
by a Restricted Subsidiary of the Company of any outstanding Indebtedness of such Unrestricted Subsidiary and such designation will only be permitted if (1) such Indebtedness is permitted under the covenant described under Section 4.09 hereof,
calculated on a pro forma basis as if such designation had occurred at the beginning of the four-quarter reference period; and (2) no Default or Event of Default would be in existence following such designation. 
  
 “U.S. Person” means a U.S. Person as defined in Rule
902(k) promulgated under the Securities Act. 
  
 “Voting Stock” of any Person as of any date means the Capital Stock of such Person that is at the time entitled to vote in the election of the Board of Directors of such Person. 
  
 “Weighted Average Life to Maturity” means, when
applied to any Indebtedness at any date, the number of years obtained by dividing: 
  
 (1) the sum of the products obtained by multiplying (x) the amount of each then remaining installment, sinking fund, serial maturity or
other required payments of principal (or, in the case of Disqualified Stock or preferred stock, liquidation preference), including payment at final maturity, in respect of the Indebtedness, by (y) the number of years (calculated to the nearest
one-twelfth) that will elapse between such date and the making of such payment; by 
  
 (2) the then outstanding principal amount (or, in the case of Disqualified Stock or preferred stock, liquidation preference) of such
Indebtedness. 
  
 Section 1.02 Other Definitions.

  

			
	 Term

	  	Defined in
Section

	 “Affiliate Transaction”
	  	4.11
	 “Asset Sale Offer”
	  	4.10
	 “Authentication Order”
	  	2.02
	 “Change of Control Offer”
	  	4.15
	 “Change of Control Payment”
	  	4.15
	 “Change of Control Payment Date”
	  	4.15

  

 27 

			
	 “Covenant Defeasance”
	  	8.03
	 “DTC”
	  	2.03
	 “Event of Default”
	  	6.01
	 “Excess Proceeds”
	  	4.10
	 “incur”
	  	4.09
	 “Legal Defeasance”
	  	8.02
	 “Notice of Default”
	  	11.03
	 “Offer Amount”
	  	4.10
	 “Offer Period”
	  	4.10
	 “Paying Agent”
	  	2.03
	 “Permitted Debt”
	  	4.09
	 “Payment Default”
	  	6.01
	 “Purchase Date”
	  	4.10
	 “Registrar”
	  	2.03
	 “Restricted Payments”
	  	4.07

  
 Section 1.03
Incorporation by Reference of Trust Indenture Act. 
  
 (a)
Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture. 
  
 (b) The following TIA terms used in this Indenture have the following meanings: 
  
 (1) “indenture securities” means the Notes; 
  
 (2) “indenture security Holder” means a Holder of
a Note; 
  
 (3) “indenture to be
qualified” means this Indenture; 
  
 (4)
“indenture trustee” or “institutional trustee” means the Trustee; and 
  
 (5) “obligor” on the Notes and the Subsidiary Guarantees means the Company and the Guarantors, respectively, and any successor
obligor upon the Notes and the Subsidiary Guarantees, respectively. 
  
 (c) All other terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule under the TIA have the meanings so assigned to them. 
  
 Section 1.04 Rules of Construction. 
  
 (a) Unless the context otherwise requires: 
  
 (1) a term has the meaning assigned to it; 
  
 (2) an accounting term not otherwise defined has the meaning
assigned to it in accordance with GAAP; 
  

 28 

 (3) “or” is not exclusive; 
  
 (4) words in the singular include the plural, and in the
plural include the singular; 
  
 (5)
“will” shall be interpreted to express a command; 
  
 (6) provisions apply to successive events and transactions; and 
  
 (7) references to sections of or rules under the Securities Act will be deemed to include substitute, replacement of successor sections or
rules adopted by the SEC from time to time. 
  
 ARTICLE 2

  
 THE NOTES 
  
 Section 2.01 Form and Dating. 
  
 (a) General. (1) The Notes and the Trustee’s certificate of
authentication will be substantially in the form of Exhibit A hereto. The Notes may have notations, legends or endorsements required by law, stock exchange rule or usage. Each Note will be dated the date of its authentication. The Notes shall
be in denominations of $1,000 and integral multiples thereof. 
  
 (1) The terms and provisions contained in the Notes will constitute, and are hereby expressly made, a part of this Indenture and the Company, the Guarantors and the Trustee, by their execution and delivery of this
Indenture, expressly agree to such terms and provisions and to be bound thereby. However, to the extent any provision of any Note conflicts with the express provisions of this Indenture, the provisions of this Indenture shall govern and be
controlling. 
  
 (b) Global Notes. Notes issued in global
form will be substantially in the form of Exhibit A1 or Exhibit A2 attached hereto (including the Global Note Legend thereon and the “Schedule of Exchanges of Interests in the Global Note” attached thereto). Notes issued in
definitive form will be substantially in the form of Exhibit A1 attached hereto (but without the Global Note Legend thereon and without the “Schedule of Exchanges of Interests in the Global Note” attached thereto). Each Global Note
will represent such of the outstanding Notes as will be specified therein and each shall provide that it represents the aggregate principal amount of outstanding Notes from time to time endorsed thereon and that the aggregate principal amount of
outstanding Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions. Any endorsement of a Global Note to reflect the amount of any increase or decrease in the aggregate principal
amount of outstanding Notes represented thereby will be made by the Trustee or the Custodian, at the direction of the Trustee, in accordance with instructions given by the Holder thereof as required by Section 2.06 hereof. 
  
 (c) Temporary Global Notes. (1) Notes offered and sold in reliance on
Regulation S will be issued initially in the form of the Regulation S Temporary Global Note, which will be deposited on behalf of the purchasers of the Notes represented thereby with the Trustee, at its 

  

 29 

 
New York office, as custodian for the Depositary, and registered in the name of the Depositary or the nominee of the Depositary for the accounts of
designated agents holding on behalf of Euroclear or Clearstream, duly executed by the Company and authenticated by the Trustee as hereinafter provided. The Restricted Period will be terminated upon the receipt by the Trustee of: 
  
 (A) a written certificate from the Depositary, together with
copies of certificates from Euroclear and Clearstream certifying that they have received certification of non-United States beneficial ownership of 100% of the aggregate principal amount of the Regulation S Temporary Global Note (except to the
extent of any beneficial owners thereof who acquired an interest therein during the Restricted Period pursuant to another exemption from registration under the Securities Act and who will take delivery of a beneficial ownership interest in a 144A
Global Note bearing a Private Placement Legend, all as contemplated by Section 2.06(b) hereof); and 
  
 (B) an Officers’ Certificate from the Company. 
  
 (2) Following the termination of the Restricted Period, beneficial interests in the Regulation S Temporary
Global Note will be exchanged for beneficial interests in the Regulation S Permanent Global Note pursuant to the Applicable Procedures. Simultaneously with the authentication of the Regulation S Permanent Global Note, the Trustee will cancel the
Regulation S Temporary Global Note. The aggregate principal amount of the Regulation S Temporary Global Note and the Regulation S Permanent Global Note may from time to time be increased or decreased by adjustments made on the records of the Trustee
and the Depositary or its nominee, as the case may be, in connection with transfers of interest as hereinafter provided. 
  
 (3) Euroclear and Clearstream Procedures Applicable. The provisions of the “Operating Procedures of the Euroclear System” and
“Terms and Conditions Governing Use of Euroclear” and the “General Terms and Conditions of Clearstream Banking” and “Customer Handbook” of Clearstream will be applicable to transfers of beneficial interests in the
Regulation S Temporary Global Note and the Regulation S Permanent Global Note that are held by Participants through Euroclear or Clearsteam. 
  
 (d) Additional Notes. Subject to compliance with the provisions of this Indenture, the Company may issue Additional Notes under this Indenture
after the Issue Date in an unlimited aggregate principal amount. 
  
 Section 2.02 Execution and Authentication. 
  
 (a)
At least one Officer must sign the Notes for the Company by manual or facsimile signature. 
  
 (b) If an Officer whose signature is on a Note no longer holds that office at the time a Note is authenticated, the Note will nevertheless be valid. 
  
 (c) A Note will not be valid until authenticated by the manual signature of the Trustee. The signature will be conclusive
evidence that the Note has been authenticated under this Indenture. 
  

 30 

 (d) The Trustee will authenticate: (i) for original issue on the Issue Date, Initial Notes in the
aggregate principal amount of $136,000,000, (ii) Exchange Notes for original issue, pursuant to the Exchange Offer, for a like principal amount of Initial Notes, and (iii) any amount of Additional Notes specified by the Company, in each case, upon
receipt of a written order of the Company signed by two Officers (an “Authentication Order”). Such order shall specify (a) the amount of the Notes to be authenticated and the date of original issue thereof and (b) whether the
Notes are Restricted Notes or Unrestricted Notes. The aggregate principal amount of Notes outstanding at any time may not exceed the aggregate principal amount of Notes authorized for issuance by the Company pursuant to one or more written orders of
the Company, except as provided in Section 2.07 hereof. 
  
 (e)
The Trustee may appoint an authenticating agent acceptable to the Company 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 agent. An authenticating agent has the same rights as an Agent to deal with Holders or an Affiliate of the Company. 
  
 (f) The Initial Notes and the Additional Notes (and, in each case, any Exchange Notes issued in exchange therefor) shall be treated as a single class for
all purposes under this Indenture, and unless the context otherwise requires, all references to the Notes shall include the Initial Notes and any Additional Notes (and, in each case, any Exchange Notes issued in exchange therefor). Nothing in this
paragraph shall be deemed to modify, replace or otherwise affect the restrictions on transfer applicable to Restricted Notes set forth in Section 2.06 hereof. 
  

Section 2.03 Registrar and Paying Agent. 
  
 (a) The Company will maintain an office or agency where Notes may be presented for registration of transfer or for exchange
(“Registrar”) and an office or agency where Notes may be presented for payment (“Paying Agent”). The Registrar will keep a register of the Notes and of their transfer and exchange. The Company may
appoint one or more co-registrars and one or more additional paying agents. The term “Registrar” includes any co-registrar and the term “Paying Agent” includes any additional paying agent. The Company may change any Paying Agent
or Registrar without notice to any Holder. The Company will notify the Trustee in writing of the name and address of any Agent not a party to this Indenture. If the Company fails to appoint or maintain another entity as Registrar or Paying Agent,
the Trustee shall act as such. The Company or any of its Subsidiaries may act as Paying Agent or Registrar. 
  
 (b) The Company initially appoints The Depository Trust Company (“DTC”) to act as Depositary with respect to the Global Notes.

  
 (c) The Company initially appoints the Trustee to act as the
Registrar and Paying Agent and to act as Custodian with respect to the Global Notes. 
  
 Section 2.04 Paying Agent to Hold Money in Trust. 
  
 The Company will require each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust for the benefit of Holders or the Trustee all money held by the Paying Agent for the
payment of principal, premium or Liquidated Damages, if any, or 

  

 31 

 
interest on the Notes, and will notify the Trustee of any default by the Company or the Guarantors in making any such payment. While any such default
continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee. The Company at any time may require a Paying Agent to pay all money held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent (if other
than the Company or a Subsidiary) will have no further liability for the money. If the Company or a Subsidiary acts as Paying Agent, it will segregate and hold in a separate trust fund for the benefit of the Holders all money held by it as Paying
Agent. Upon any bankruptcy or reorganization proceedings relating to the Company, the Trustee will serve as Paying Agent for the Notes. 
  
 Section 2.05 Holder Lists. 
  
 The Trustee will preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of all Holders
and shall otherwise comply with TIA § 312(a). If the Trustee is not the Registrar, the Company will furnish to the Trustee at least seven Business Days before each interest payment date and at such other times as the Trustee may request in
writing, a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of the Holders of Notes and the Company shall otherwise comply with TIA § 312(a). 
  

	Section	2.06 Transfer and Exchange. 

  
 (a) Transfer and Exchange of Global Notes. (1) A Global Note may not be transferred as a whole except by the Depositary to a nominee of the
Depositary, by a nominee of the Depositary to the Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary. All Global Notes will be exchanged by
the Company for Definitive Notes if: 
  
 (A) the
Company delivers to the Trustee notice from the Depositary that it is unwilling or unable to continue to act as Depositary or that it is no longer a clearing agency registered under the Exchange Act and, in either case, a successor Depositary is not
appointed by the Company within 120 days after the date of such notice from the Depositary; or 
  
 (B) the Company in its sole discretion determines that the Global Notes (in whole but not in part) should be exchanged for Definitive
Notes and delivers a written notice to such effect to the Trustee; provided that in no event shall the Regulation S Temporary Global Note be exchanged by the Company for Definitive Notes prior to (x) the expiration of the Restricted Period and (y)
the receipt by the Registrar of any certificates required pursuant to Rule 903(b)(3)(ii)(B) under the Securities Act. 
  
 (2) Upon the occurrence of either of the preceding events in (A) or (B) above, Definitive Notes shall be issued in such names as the
Depositary shall instruct the Trustee. Global Notes also may be exchanged or replaced, in whole or in part, as provided in Sections 2.07 and 2.10 hereof. Every Note authenticated and delivered in exchange for, or in lieu of, a Global Note or any
portion thereof, pursuant to this Section 2.06 or Section 2.07 or 2.10 hereof, shall be authenticated and delivered in the form of, and shall be, a Global Note. 
  

 32 

 A Global Note may not be exchanged for another Note other than as provided in this Section 2.06(a), however, beneficial
interests in a Global Note may be transferred and exchanged as provided in Section 2.06(b), (c) or (f) hereof. 
  
 (b) Transfer and Exchange of Beneficial Interests in the Global Notes. The transfer and exchange of beneficial interests in the Global Notes will
be effected through the Depositary, in accordance with the provisions of this Indenture and the Applicable Procedures. Beneficial interests in the Restricted Global Notes will be subject to restrictions on transfer comparable to those set forth
herein to the extent required by the Securities Act. Transfers of beneficial interests in the Global Notes also will require compliance with either subparagraph (1) or (2) below, as applicable, as well as one or more of the other following
subparagraphs, as applicable: 
  
 (1) Transfer
of Beneficial Interests in the Same Global Note. Beneficial interests in any Restricted Global Note may be transferred to Persons who take delivery thereof in the form of a beneficial interest in the same Restricted Global Note in accordance
with the transfer restrictions set forth in the Private Placement Legend; provided, however, that prior to the expiration of the Restricted Period, transfers of beneficial interests in the Regulation S Temporary Global Note may not be
made to a U.S. Person or for the account or benefit of a U.S. Person (other than an Initial Purchaser). Beneficial interests in any Unrestricted Global Note may be transferred to Persons who take delivery thereof in the form of a beneficial interest
in an Unrestricted Global Note. No written orders or instructions shall be required to be delivered to the Registrar to effect the transfers described in this Section 2.06(b)(1). 
  
 (2) All Other Transfers and Exchanges of Beneficial Interests in Global Notes. In connection with all
transfers and exchanges of beneficial interests that are not subject to Section 2.06(b)(1) above, the transferor of such beneficial interest must deliver to the Registrar either: 
  
 (A) both: 
  
 (i) a written or electronic order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable
Procedures directing the Depositary to credit or cause to be credited a beneficial interest in another Global Note in an amount equal to the beneficial interest to be transferred or exchanged; and 
  
 (ii) instructions given in accordance with the Applicable
Procedures containing information regarding the Participant account to be credited with such increase; or 
  
 (B) both: 
  
 (i) a written or electronic order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable
Procedures directing the Depositary to cause to be issued a Definitive Note in an amount equal to the beneficial interest to be transferred or exchanged; and 
  

 33 

 (ii) instructions given by the Depositary to the Registrar containing information
regarding the Person in whose name such Definitive Note shall be registered to effect the transfer or exchange referred to in (1) above; provided that in no event shall Definitive Notes be issued upon the transfer or exchange of beneficial interests
in the Regulation S Temporary Global Note prior to (A) the expiration of the Restricted Period and (B) the receipt by the Registrar of any certificates required pursuant to Rule 903 under the Securities Act. Upon consummation of an Exchange Offer by
the Company in accordance with Section 2.06(f) hereof, the requirements of this Section 2.06(b)(2) shall be deemed to have been satisfied upon receipt by the Registrar of the instructions contained in the Letter of Transmittal delivered by the
Holder of such beneficial interests in the Restricted Global Notes. Upon satisfaction of all of the requirements for transfer or exchange of beneficial interests in Global Notes contained in this Indenture and the Notes or otherwise applicable under
the Securities Act, the Trustee shall adjust the principal amount of the relevant Global Note(s) pursuant to Section 2.06(h) hereof. 
  
 (3) Transfer of Beneficial Interests to Another Restricted Global Note. A beneficial interest in any Restricted Global Note may be
transferred to a Person who takes delivery thereof in the form of a beneficial interest in another Restricted Global Note if the transfer complies with the requirements of Section 2.06(b)(2) above and the Registrar receives the following:

  
 (A) if the transferee will take delivery in
the form of a beneficial interest in the 144A Global Note, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (1) thereof; and 
  
 (B) if the transferee will take delivery in the form of a
beneficial interest in the Regulation S Temporary Global Note or the Regulation S Permanent Global Note, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (2) thereof.

  
 (4) Transfer and Exchange of Beneficial
Interests in a Restricted Global Note for Beneficial Interests in an Unrestricted Global Note. A beneficial interest in any Restricted Global Note may be exchanged by any holder thereof for a beneficial interest in an Unrestricted Global Note or
transferred to a Person who takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Note if the exchange or transfer complies with the requirements of Section 2.06(b)(2) above and: 
  
 (A) such exchange or transfer is effected pursuant to the
Exchange Offer in accordance with the Registration Rights Agreement and the holder of the beneficial interest to be transferred, in the case of an exchange, or the transferee, in the case of a transfer, certifies in the applicable Letter of
Transmittal that it is not (i) a Broker-Dealer, (ii) a Person participating in the distribution of the Exchange Notes or (iii) a Person who is an affiliate (as defined in Rule 144) of the Company; 
  

 34 

 (B) such transfer is effected pursuant to the Shelf Registration Statement in accordance
with the Registration Rights Agreement; 
  
 (C)
such transfer is effected by a Broker-Dealer pursuant to the Exchange Offer Registration Statement in accordance with the Registration Rights Agreement; or 
  
 (D) the Registrar receives the following: 
  
 (i) if the holder of such beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for a beneficial
interest in an Unrestricted Global Note, a certificate from such holder in the form of Exhibit C hereto, including the certifications in item (1)(a) thereof; or 
  
 (ii) if the holder of such beneficial interest in a Restricted Global Note proposes to transfer such
beneficial interest to a Person who shall take delivery thereof in the form of a beneficial interest in an Unrestricted Global Note, a certificate from such holder in the form of Exhibit B hereto, including the certifications in item (4)
thereof; 
  
 and, in each such case set forth in this subparagraph (D), if the
Registrar so requests or if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable to the Registrar to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on
transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act. 
  
 If any such transfer is effected pursuant to subparagraph (B) or (D) above at a time when an Unrestricted Global Note has not yet been
issued, the Company shall issue and, upon receipt of an Authentication Order in accordance with Section 2.02 hereof, the Trustee shall authenticate one or more Unrestricted Global Notes in an aggregate principal amount equal to the aggregate
principal amount of beneficial interests transferred pursuant to subparagraph (B) or (D) above. Beneficial interests in an Unrestricted Global Note cannot be exchanged for, or transferred to Persons who take delivery thereof in the form of, a
beneficial interest in a Restricted Global Note. 
  
 (c)
Transfer or Exchange of Beneficial Interests for Definitive Notes. 
  
 (1) Beneficial Interests in Restricted Global Notes to Restricted Definitive Notes. If any holder of a beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for a
Restricted Definitive Note or to transfer such beneficial interest to a Person who takes delivery thereof in the form of a Restricted Definitive Note, then, upon receipt by the Registrar of the following documentation: 
  
 (A) if the holder of such beneficial interest in a
Restricted Global Note proposes to exchange such beneficial interest for a Restricted Definitive Note, a certificate from such holder in the form of Exhibit C hereto, including the certifications in item (2)(a) thereof; 
  

 35 

 (B) if such beneficial interest is being transferred to a QIB in accordance with Rule
144A, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (1) thereof; 
  
 (C) if such beneficial interest is being transferred to a Non-U.S. Person in an offshore transaction in accordance with Rule 903 or Rule
904, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2) thereof; 
  
 (D) if such beneficial interest is being transferred pursuant to an exemption from the registration requirements of the Securities Act in
accordance with Rule 144, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(a) thereof; 
  
 (E) if such beneficial interest is being transferred to an Institutional Accredited Investor in reliance on an exemption from the
registration requirements of the Securities Act other than those listed in subparagraphs (B) through (D) above, a certificate to the effect set forth in Exhibit B hereto, including the certifications, certificates and Opinion of Counsel
required by item (3) thereof, if applicable; 
  
 (F) if such beneficial interest is being transferred to the Company or any of its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(b) thereof; or 
  
 (G) if such beneficial interest is being transferred
pursuant to an effective registration statement under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(c) thereof, the Trustee shall cause the aggregate principal amount
of the applicable Global Note to be reduced accordingly pursuant to Section 2.06(h) hereof, and the Company shall execute and the Trustee shall authenticate and deliver to the Person designated in the instructions a Definitive Note in the
appropriate principal amount. Any Definitive Note issued in exchange for a beneficial interest in a Restricted Global Note pursuant to this Section 2.06(c) shall be registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest shall instruct the Registrar through instructions from the Depositary and the Participant or Indirect Participant. The Trustee shall deliver such Definitive Notes to the Persons in whose names
such Notes are so registered. Any Definitive Note issued in exchange for a beneficial interest in a Restricted Global Note pursuant to this Section 2.06(c)(1) shall bear the Private Placement Legend and shall be subject to all restrictions on
transfer contained therein. 
  
 (2) Beneficial
Interests in Regulation S Temporary Global Note to Definitive Notes. Notwithstanding Sections 2.06(c)(1)(A) and (C) hereof, a beneficial interest in the Regulation S Temporary Global Note may not be exchanged for a Definitive Note or transferred
to a Person who takes delivery thereof in the form of a Definitive Note prior to (A) the expiration of the Restricted Period and (B) the receipt by the Registrar of any certificates required pursuant to Rule 903(b)(3)(ii)(B) under the Securities
Act, except in the case of a transfer pursuant to an 

  

 36 

 
exemption from the registration requirements of the Securities Act other than Rule 903 or Rule 904. 
  
 (3) Beneficial Interests in Restricted Global Notes to
Unrestricted Definitive Notes. A holder of a beneficial interest in a Restricted Global Note may exchange such beneficial interest for an Unrestricted Definitive Note or may transfer such beneficial interest to a Person who takes delivery
thereof in the form of an Unrestricted Definitive Note only if: 
  
 (A) such exchange or transfer is effected pursuant to the Exchange Offer in accordance with the Registration Rights Agreement and the holder of such beneficial interest, in the case of an exchange, or the transferee,
in the case of a transfer, certifies in the applicable Letter of Transmittal that it is not (i) a Broker-Dealer, (ii) a Person participating in the distribution of the Exchange Notes or (iii) a Person who is an affiliate (as defined in Rule 144) of
the Company; 
  
 (B) such transfer is effected
pursuant to the Shelf Registration Statement in accordance with the Registration Rights Agreement; 
  
 (C) such transfer is effected by a Broker-Dealer pursuant to the Exchange Offer Registration Statement in accordance with the Registration
Rights Agreement; or 
  
 (D) the Registrar
receives the following: 
  
 (i) if the holder of
such beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for an Unrestricted Definitive Note, a certificate from such holder in the form of Exhibit C hereto, including the certifications in item
(1)(b) thereof; or 
  
 (ii) if the holder of
such beneficial interest in a Restricted Global Note proposes to transfer such beneficial interest to a Person who shall take delivery thereof in the form of an Unrestricted Definitive Note, a certificate from such holder in the form of Exhibit
B hereto, including the certifications in item (4) thereof; and, in each such case set forth in this subparagraph (D), if the Registrar so requests or if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable
to the Registrar to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance
with the Securities Act. 
  
 (4) Beneficial
Interests in Unrestricted Global Notes to Unrestricted Definitive Notes. If any holder of a beneficial interest in an Unrestricted Global Note proposes to exchange such beneficial interest for a Definitive Note or to transfer such beneficial
interest to a Person who takes delivery thereof in the form of a Definitive Note, then, upon satisfaction of the conditions set forth in Section 2.06(b)(2) hereof, the Trustee will cause the aggregate principal amount of the applicable Global Note
to be reduced accordingly pursuant to Section 2.06(h) hereof, and the Company will execute and the Trustee will authenticate and deliver to the Person designated in the instructions a Definitive Note in the appropriate principal 

  

 37 

 
amount. Any Definitive Note issued in exchange for a beneficial interest pursuant to this Section 2.06(c)(4) will be registered in such name or names and in
such authorized denomination or denominations as the holder of such beneficial interest shall instruct the Registrar through instructions from the Depositary and the Participant or Indirect Participant. The Trustee will deliver such Definitive Notes
to the Persons in whose names such Notes are so registered. Any Definitive Note issued in exchange for a beneficial interest pursuant to this Section 2.06(c)(4) will not bear the Private Placement Legend. 
  
 (d) Transfer and Exchange of Definitive Notes for Beneficial
Interests. 
  
 (1) Restricted Definitive
Notes to Beneficial Interests in Restricted Global Notes. If any Holder of a Restricted Definitive Note proposes to exchange such Note for a beneficial interest in a Restricted Global Note or to transfer such Restricted Definitive Notes to a
Person who takes delivery thereof in the form of a beneficial interest in a Restricted Global Note, then, upon receipt by the Registrar of the following documentation: 
  
 (A) if the Holder of such Restricted Definitive Note proposes to exchange such Note for a beneficial
interest in a Restricted Global Note, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (2)(b) thereof; 
  
 (B) if such Restricted Definitive Note is being transferred to a QIB in accordance with Rule 144A, a
certificate to the effect set forth in Exhibit B hereto, including the certifications in item (1) thereof; 
  
 (C) if such Restricted Definitive Note is being transferred to a Non-U.S. Person in an offshore transaction in accordance with Rule 903 or
Rule 904, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2) thereof; 
  
 (D) if such Restricted Definitive Note is being transferred pursuant to an exemption from the registration requirements of the Securities
Act in accordance with Rule 144, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(a) thereof; 
  
 (E) if such Restricted Definitive Note is being transferred to an Institutional Accredited Investor in reliance on an exemption from the
registration requirements of the Securities Act other than those listed in subparagraphs (B) through (D) above, a certificate to the effect set forth in Exhibit B hereto, including the certifications, certificates and Opinion of Counsel
required by item (3) thereof, if applicable; 
  
 (F) if such Restricted Definitive Note is being transferred to the Company or any of its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(b) thereof; or 
  
 (G) if such Restricted Definitive Note is being transferred
pursuant to an effective registration statement under the Securities Act, a certificate to the effect set 

  

 38 

 
forth in Exhibit B hereto, including the certifications in item (3)(c) thereof, the Trustee will cancel the Restricted Definitive Note, increase or
cause to be increased the aggregate principal amount of, in the case of Section 2.06(d)(1)(A), the appropriate Restricted Global Note, in the case of Section 2.06(d)(1)(C), the Regulation S Global Note, and in all other cases, the 144A Global Note.

  
 (2) Restricted Definitive Notes to
Beneficial Interests in Unrestricted Global Notes. A Holder of a Restricted Definitive Note may exchange such Note for a beneficial interest in an Unrestricted Global Note or transfer such Restricted Definitive Note to a Person who takes
delivery thereof in the form of a beneficial interest in an Unrestricted Global Note only if: 
  
 (A) such exchange or transfer is effected pursuant to the Exchange Offer in accordance with the Registration Rights Agreement and the
Holder, in the case of an exchange, or the transferee, in the case of a transfer, certifies in the applicable Letter of Transmittal that it is not (i) a Broker-Dealer, (ii) a Person participating in the distribution of the Exchange Notes or (iii) a
Person who is an affiliate (as defined in Rule 144) of the Company; 
  
 (B) such transfer is effected pursuant to the Shelf Registration Statement in accordance with the Registration Rights Agreement; 
  
 (C) such transfer is effected by a Broker-Dealer pursuant to the Exchange Offer Registration Statement in
accordance with the Registration Rights Agreement; or 
  
 (D) the Registrar receives the following: 
  
 (i) if the Holder of such Definitive Notes proposes to exchange such Notes for a beneficial interest in the Unrestricted Global Note, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in
item (1)(c) thereof; or 
  
 (ii) if the Holder
of such Definitive Notes proposes to transfer such Notes to a Person who shall take delivery thereof in the form of a beneficial interest in the Unrestricted Global Note, a certificate from such Holder in the form of Exhibit B hereto,
including the certifications in item (4) thereof; 
  
 and, in
each such case set forth in this subparagraph (D), if the Registrar so requests or if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable to the Registrar to the effect that such exchange or transfer is in
compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act. 
  
 Upon satisfaction of the conditions of any of the
subparagraphs in this Section 2.06(d)(2), the Trustee will cancel the Definitive Notes and increase or cause to be increased the aggregate principal amount of the Unrestricted Global Note. 
  

 39 

 (3) Unrestricted Definitive Notes to Beneficial Interests in Unrestricted Global
Notes. A Holder of an Unrestricted Definitive Note may exchange such Note for a beneficial interest in an Unrestricted Global Note or transfer such Definitive Notes to a Person who takes delivery thereof in the form of a beneficial interest in
an Unrestricted Global Note at any time. Upon receipt of a request for such an exchange or transfer, the Trustee will cancel the applicable Unrestricted Definitive Note and increase or cause to be increased the aggregate principal amount of one of
the Unrestricted Global Notes. 
  
 If any such exchange or
transfer from a Definitive Note to a beneficial interest is effected pursuant to subparagraphs (2)(B), (2)(D) or (3) above at a time when an Unrestricted Global Note has not yet been issued, the Company will issue and, upon receipt of an
Authentication Order in accordance with Section 2.02 hereof, the Trustee will authenticate one or more Unrestricted Global Notes in an aggregate principal amount equal to the principal amount of Definitive Notes so transferred. 
  
 (e) Transfer and Exchange of Definitive Notes for Definitive Notes.
Upon request by a Holder of Definitive Notes and such Holder’s compliance with the provisions of this Section 2.06(e), the Registrar will register the transfer or exchange of Definitive Notes. Prior to such registration of transfer or exchange,
the requesting Holder must present or surrender to the Registrar the Definitive Notes duly endorsed or accompanied by a written instruction of transfer in form satisfactory to the Registrar duly executed by such Holder or by its attorney, duly
authorized in writing. In addition, the requesting Holder must provide any additional certifications, documents and information, as applicable, required pursuant to the following provisions of this Section 2.06(e). 
  
 (1) Restricted Definitive Notes to Restricted Definitive
Notes. Any Restricted Definitive Note may be transferred to and registered in the name of Persons who take delivery thereof in the form of a Restricted Definitive Note if the Registrar receives the following: 
  
 (A) if the transfer will be made pursuant to Rule 144A, then
the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (1) thereof; 
  
 (B) if the transfer will be made pursuant to Rule 903 or Rule 904, then the transferor must deliver a certificate in the form of
Exhibit B hereto, including the certifications in item (2) thereof; and 
  
 (C) if the transfer will be made pursuant to any other exemption from the registration requirements of the Securities Act, then the
transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications, certificates and Opinion of Counsel required by item (3) thereof, if applicable. 
  

 40 

 (2) Restricted Definitive Notes to Unrestricted Definitive Notes. Any Restricted
Definitive Note may be exchanged by the Holder thereof for an Unrestricted Definitive Note or transferred to a Person or Persons who take delivery thereof in the form of an Unrestricted Definitive Note if: 
  
 (A) such exchange or transfer is effected pursuant to the
Exchange Offer in accordance with the Registration Rights Agreement and the Holder, in the case of an exchange, or the transferee, in the case of a transfer, certifies in the applicable Letter of Transmittal that it is not (i) a broker-dealer, (ii)
a Person participating in the distribution of the Exchange Notes or (iii) a Person who is an affiliate (as defined in Rule 144) of the Company; 
  
 (B) any such transfer is effected pursuant to the Shelf Registration Statement in accordance with the Registration Rights Agreement;

  
 (C) any such transfer is effected by a
Broker-Dealer pursuant to the Exchange Offer Registration Statement in accordance with the Registration Rights Agreement; or 
  
 (D) the Registrar receives the following: 
  
 (i) if the Holder of such Restricted Definitive Notes proposes to exchange such Notes for an Unrestricted Definitive Note, a certificate
from such Holder in the form of Exhibit C hereto, including the certifications in item (1)(d) thereof; or 
  
 (ii) if the Holder of such Restricted Definitive Notes proposes to transfer such Notes to a Person who shall take delivery thereof in the
form of an Unrestricted Definitive Note, a certificate from such Holder in the form of Exhibit B hereto, including the certifications in item (4) thereof; 
  
 and, in each such case set forth in this subparagraph (D), if the Registrar so requests, an Opinion of Counsel in form
reasonably acceptable to the Registrar to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order
to maintain compliance with the Securities Act. 
  
 (3) Unrestricted Definitive Notes to Unrestricted Definitive Notes. A Holder of Unrestricted Definitive Notes may transfer such Notes to a Person who takes delivery thereof in the form of an Unrestricted Definitive Note. Upon receipt
of a request to register such a transfer, the Registrar shall register the Unrestricted Definitive Notes pursuant to the instructions from the Holder thereof. 
  

(f) Exchange Offer. Upon the occurrence of the Exchange Offer in accordance with the Registration Rights Agreement, the Company will issue and,
upon receipt of an Authentication Order in accordance with Section 2.02 hereof, the Trustee will authenticate: 
  
 (1) one or more Unrestricted Global Notes in an aggregate principal amount equal to the principal amount of the beneficial interests in
the Restricted Global Notes accepted for exchange in the Exchange Offer by Persons that certify in the applicable Letters of Transmittal that (A) they are not Broker-Dealers, (B) they are not participating in a distribution 

  

 41 

 
of the Exchange Notes and (C) they are not affiliates (as defined in Rule 144) of the Company; and 
  
 (2) Unrestricted Definitive Notes in an aggregate principal
amount equal to the principal amount of the Restricted Definitive Notes accepted for exchange in the Exchange Offer by Persons who made the foregoing certificates. 
  
 Concurrently with the issuance of such Notes, the Trustee will cause the aggregate principal amount of the
applicable Restricted Global Notes to be reduced accordingly, and the Company will execute and the Trustee will authenticate and deliver to the Persons designated by the Holders of Definitive Notes so accepted Unrestricted Definitive Notes in the
appropriate principal amount. 
  
 (g) Legends. The
following legends will appear on the face of all Global Notes and Definitive Notes issued under this Indenture unless specifically stated otherwise in the applicable provisions of this Indenture. 
  
 (1) Private Placement Legend. 
  
 (A) Except as permitted by subparagraph (B) below, each
Global Note and each Definitive Note (and all Notes issued in exchange therefor or substitution thereof) shall bear the legend in substantially the following form: 
  
 “THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION. 
  
 THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”), WHICH IS TWO YEARS AFTER THE LATER OF THE ORIGINAL
ISSUE DATE HEREOF AND THE LAST DATE ON WHICH GRANDE COMMUNICATIONS HOLDINGS, INC. (“GRANDE”) OR ANY AFFILIATE OF GRANDE WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY) ONLY (A) TO GRANDE OR ANY SUBSIDIARY THEREOF, (B)
FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR
THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHICH NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO OFFERS AND SALES TO NON-U.S. PURCHASERS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF
REGULATION S UNDER THE 

  

 42 

 
SECURITIES ACT, (D) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (A)(1), (2), (3) OR (7) OF RULE 501 UNDER THE
SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN
VIOLATION OF THE SECURITIES ACT, (E) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO
GRANDE’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (D) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND IN EACH OF
THE FOREGOING CASES, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS SECURITY IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE
RESTRICTION TERMINATION DATE.” 
  
 (B)
Notwithstanding the foregoing, any Global Note or Definitive Note issued pursuant to subparagraphs (b)(4), (c)(3), (c)(4), (d)(2), (d)(3), (e)(2), (e)(3) or (f) of this Section 2.06 (and all Notes issued in exchange therefor or substitution thereof)
will not bear the Private Placement Legend. 
  
 (2) Global Note Legend. Each Global Note will bear a legend in substantially the following form: 
  
 “THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE
BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN
WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY
WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.” 
  
 (3) Unit Legend. Until the Separation Date, each Note will bear a legend in substantially the following form: 
  
 “THE SECURITY EVIDENCED BY THIS CERTIFICATE IS INITIALLY ISSUED AS PART OF AN ISSUANCE OF UNITS (THE “UNITS”), EACH OF WHICH CONSISTS OF
$1,000 PRINCIPAL AMOUNT AT MATURITY OF THE 14% SENIOR SECURED 

  

 43 

 
NOTES DUE 2011 (THE “NOTES”) OF GRANDE COMMUNICATIONS HOLDINGS, INC. AND ONE WARRANT TO PURCHASE 100.336 SHARES OF COMMON STOCK, PAR VALUE $0.001
PER SHARE, OF GRANDE COMMUNICATIONS HOLDINGS, INC., SUBJECT TO CERTAIN ADJUSTMENTS. 
  
 PRIOR TO THE EARLIEST TO OCCUR OF (I) 180 DAYS AFTER THE CLOSING OF THE OFFERING OF THE UNITS, (II) THE DATE ON WHICH A REGISTRATION STATEMENT WITH RESPECT TO A REGISTERED EXCHANGE OFFER FOR THE NOTES IS DECLARED
EFFECTIVE UNDER THE SECURITIES ACT, (III) THE DATE ON WHICH A SHELF REGISTRATION STATEMENT WITH RESPECT TO THE WARRANT SHARES IS DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (IV) IN THE EVENT A CHANGE OF CONTROL (AS DEFINED IN THE INDENTURE
GOVERNING THE NOTES) OCCURS, THE DATE ON WHICH THE COMPANY MAILS THE REQUIRED NOTICE THEREOF TO THE HOLDERS OF NOTES OF THE OCCURRENCE OF A CHANGE OF CONTROL, (V) IN THE EVENT AN ASSET SALE OFFER (AS DEFINED IN THE INDENTURE GOVERNING THE NOTES) IS
REQUIRED TO BE MADE, THE DATE ON WHICH THE COMPANY MAILS THE REQUIRED NOTICE THEREOF TO THE HOLDERS OF NOTES OF THE OCCURRENCE OF SUCH ASSET SALE OFFER, (VI) IN THE EVENT THAT THE COMPANY ENGAGES IN AN OPTIONAL REDEMPTION OF THE NOTES AFTER AN
EQUITY OFFERING (AS DEFINED IN THE INDENTURE GOVERNING THE NOTES), THE DATE ON WHICH THE COMPANY MAILS THE REQUIRED NOTICE THEREOF TO THE HOLDERS OF NOTES OF SUCH OPTIONAL REDEMPTION, (VII) A RESTRUCTURING (AS DEFINED IN THE INDENTURE GOVERNING THE
NOTES), (VIII) AN EVENT OF DEFAULT UNDER THE INDENTURE GOVERNING THE NOTES, AND (IX) SUCH DATE AS BEAR, STEARNS & CO. INC. IN ITS SOLE DISCRETION SHALL DETERMINE, THE SECURITY EVIDENCED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED OR EXCHANGED
SEPARATELY FROM, BUT MAY BE TRANSFERRED OR EXCHANGED ONLY AS A UNIT.” 
  
 (h) Cancellation and/or Adjustment of Global Notes. At such time as all beneficial interests in a particular Global Note have been exchanged for Definitive Notes or a particular Global Note has been redeemed,
repurchased or canceled in whole and not in part, each such Global Note will be returned to or retained and canceled by the Trustee in accordance with Section 2.11 hereof. At any time prior to such cancellation, if any beneficial interest in a
Global Note is exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Note or for Definitive Notes, the principal amount of Notes represented by such Global Note will be reduced
accordingly and an endorsement will be made on such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such reduction; and if the beneficial interest is being exchanged for or transferred to a Person who will
take delivery thereof in the form of a beneficial interest in another Global Note, such other Global Note will be increased accordingly and an endorsement will be made on such Global Note by the Trustee or by the Depositary at the direction of the
Trustee to reflect such increase. 
  

 44 

 (i) General Provisions Relating to Transfers and Exchanges. 
  
 (1) To permit registrations of transfers and exchanges, the
Company will execute and the Trustee will authenticate Global Notes and Definitive Notes upon receipt of an Authentication Order in accordance with Section 2.02 hereof or at the Registrar’s request. 
  
 (2) No service charge will be made to a Holder of a
beneficial interest in a Global Note or to a Holder of a Definitive Note for any registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in
connection therewith (other than any such transfer taxes or similar governmental charge payable upon exchange or transfer pursuant to Sections 2.10, 3.06, 4.10, 4.15 and 9.05 hereof). 
  
 (3) The Registrar will not be required to register the transfer of or exchange of any Note selected for
redemption in whole or in part, except the unredeemed portion of any Note being redeemed in part. 
  
 (4) All Global Notes and Definitive Notes issued upon any registration of transfer or exchange of Global Notes or Definitive Notes will be
the valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Global Notes or Definitive Notes surrendered upon such registration of transfer or exchange. 
  
 (5) Neither the Registrar nor the Company will be required:

  
 (A) to issue, to register the transfer of or
to exchange any Notes during a period beginning at the opening of business 15 days before the day of any selection of Notes for redemption under Section 3.02 hereof and ending at the close of business on the day of selection; 
  
 (B) to register the transfer of or to exchange any Note
selected for redemption in whole or in part, except the unredeemed portion of any Note being redeemed in part; or 
  
 (C) to register the transfer of or to exchange a Note between a record date and the next succeeding interest payment date. 
  
 (6) Prior to due presentment for the registration of a
transfer of any Note, the Trustee, any Agent and the Company may deem and treat the Person in whose name any Note is registered as the absolute owner of such Note for the purpose of receiving payment of principal of and interest on such Notes and
for all other purposes, and none of the Trustee, any Agent or the Company shall be affected by notice to the contrary. 
  
 (7) The Trustee will authenticate Global Notes and Definitive Notes in accordance with the provisions of Section 2.02 hereof. 

 
 (8) All certifications, certificates and Opinions of
Counsel required to be submitted to the Registrar pursuant to this Section 2.06 to effect a registration of transfer or exchange may be submitted by facsimile. 
  

 45 

 Section 2.07 Replacement Notes. 
  
 (a) If any mutilated Note is surrendered to the Trustee or the Company and the Trustee receives evidence to its satisfaction
of the destruction, loss or theft of any Note, the Company will issue and the Trustee, upon receipt of an Authentication Order, will authenticate a replacement Note if the Trustee’s requirements are met. If required by the Trustee or the
Company, an indemnity bond must be supplied by the Holder that is sufficient in the judgment of the Trustee and the Company to protect the Company, the Trustee, any Agent and any authenticating agent from any loss that any of them may suffer if a
Note is replaced. The Company may charge for its expenses in replacing a Note. 
  
 (b) Every replacement Note is an additional obligation of the Company and will be entitled to all of the benefits of this Indenture equally and proportionately with all other Notes duly issued hereunder. 

 
 Section 2.08 Outstanding Notes. 
  
 (a) The Notes outstanding at any time are all the Notes authenticated by the
Trustee except for those canceled by it, those delivered to it for cancellation, those reductions in the interest in a Global Note effected by the Trustee in accordance with the provisions hereof, and those described in this Section 2.08 as not
outstanding. Except as set forth in Section 2.09 hereof, a Note does not cease to be outstanding because the Company or an Affiliate of the Company holds the Note; however, Notes held by the Company or a Subsidiary of the Company shall not be deemed
to be outstanding for purposes of Section 3.07(a) hereof. 
  
 (b)
If a Note is replaced pursuant to Section 2.07 hereof, it ceases to be outstanding unless the Trustee receives proof satisfactory to it that the replaced Note is held by a bona fide purchaser. 
  
 (c) If the principal amount of any Note is considered paid under Section 4.01
hereof, it ceases to be outstanding and interest on it ceases to accrue. 
  
 (d) If the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any thereof) holds, on a redemption date or maturity date, money sufficient to pay Notes payable on that date, then on and after that
date such Notes will be deemed to be no longer outstanding and will cease to accrue interest. 
  
 Section 2.09 Treasury Notes. 
  
 In determining whether the Holders of the required principal amount of Notes have concurred in any direction, waiver or consent, Notes owned by the Company or any Guarantor, or by any Person directly or indirectly controlling or controlled
by or under direct or indirect common control with the Company or any Guarantor, will be considered as though not outstanding, except that for the purposes of determining whether the Trustee will be protected in relying on any such direction, waiver
or consent, only Notes that the Trustee knows are so owned will be so disregarded. 
  

 46 

 Section 2.10 Temporary Notes. 
  
 (a) Until certificates representing Notes are ready for delivery, the Company may prepare and the Trustee, upon receipt of
an Authentication Order, will authenticate temporary Notes. Temporary Notes will be substantially in the form of certificated Notes but may have variations that the Company considers appropriate for temporary Notes and as may be reasonably
acceptable to the Trustee. Without unreasonable delay, the Company will prepare and the Trustee will authenticate definitive Notes in exchange for temporary Notes. 
  
 (b) Holders of temporary Notes will be entitled to all of the benefits of this Indenture. 
  
 Section 2.11 Cancellation. 
  
 The Company at any time may deliver Notes to the Trustee for cancellation.
The Registrar and Paying Agent will forward to the Trustee any Notes surrendered to them for registration of transfer, exchange or payment. The Trustee and no one else will cancel all Notes surrendered for registration of transfer, exchange,
payment, replacement or cancellation and shall dispose of canceled Notes in accordance with its customary procedures. The Company may not issue new Notes to replace Notes that it has paid or that have been delivered to the Trustee for cancellation.

  
 Section 2.12 Defaulted Interest. 
  
 If the Company defaults in a payment of interest on the Notes, it will pay
the defaulted interest in any lawful manner plus, to the extent lawful, interest payable on the defaulted interest, to the Persons who are Holders on a subsequent special record date, in each case at the rate provided in the Notes and in Section
4.01 hereof. The Company will notify the Trustee in writing of the amount of defaulted interest proposed to be paid on each Note and the date of the proposed payment. The Company will fix or cause to be fixed each such special record date and
payment date, provided that no such special record date may be less than 10 days prior to the related payment date for such defaulted interest. At least 15 days before the special record date, the Company (or, upon the written request of the
Company, the Trustee in the name and at the expense of the Company) will mail or cause to be mailed to Holders a notice that states the special record date, the related payment date and the amount of such interest to be paid. 
  
 ARTICLE 3 
  
 REDEMPTION AND PREPAYMENT 
  
 Section 3.01 Notices to Trustee. 
  
 (a) If the Company elects to redeem Notes pursuant to the optional redemption provisions of Section 3.07 hereof, it must furnish to the Trustee, at least
10 days but not more than 60 days before a redemption date, an Officers’ Certificate setting forth: 
  
 (1) the clause of this Indenture pursuant to which the redemption shall occur; 
  
 (2) the redemption date; 
  

 47 

 (3) the principal amount of Notes to be redeemed; and 
  
 (4) the redemption price. 
  
 Section 3.02 Selection of Notes to Be Redeemed or Purchased.

  
 (a) If less than all of the Notes are to be redeemed or
purchased in an offer to purchase at any time, the Trustee will select Notes for redemption or purchase as follows: 
  
 (1) if the Notes are listed on any national securities exchange, in compliance with the requirements of the principal national securities
exchange on which the Notes are listed; or 
  
 (2) if the Notes are not listed on any national securities exchange, on a pro rata basis, by lot or by such method as the Trustee shall deem fair and appropriate. 
  
 (b) In the event of partial redemption or purchase by lot, the particular Notes to be redeemed or purchased will be
selected, unless otherwise provided herein, not less than 10 nor more than 60 days prior to the redemption or purchase date by the Trustee from the outstanding Notes not previously called for redemption or purchase. 
  
 (c) The Trustee will promptly notify the Company in writing of the Notes
selected for redemption or purchase and, in the case of any Note selected for partial redemption or purchase, the principal amount thereof to be redeemed or purchased. Notes and portions of Notes selected will be in amounts of $1,000 or whole
multiples of $1,000; except that if all of the Notes of a Holder are to be redeemed or purchased, the entire outstanding amount of Notes held by such Holder, even if not a multiple of $1,000, shall be redeemed or purchased. Except as provided in the
preceding sentence, provisions of this Indenture that apply to Notes called for redemption or purchase also apply to portions of Notes called for redemption or purchase. 
  
 Section 3.03 Notice of Redemption. 
  
 (a) Subject to the provisions of Section 4.10 hereof, at least 10 days but not more than 60 days before a redemption date,
the Company will mail or cause to be mailed, by first class mail, a notice of redemption to each Holder whose Notes are to be redeemed at its registered address, except that redemption notices may be mailed more than 60 days prior to a redemption
date if the notice is issued in connection with a defeasance of the Notes or a satisfaction and discharge of this Indenture pursuant to Article 8 or Article 12 hereof. 
  
 (b) The notice will identify the Notes to be redeemed and will state: 
  
 (1) the redemption date; 
  
 (2) the redemption price; 
  
 (3) if any Note is being redeemed in part, the portion of
the principal amount of such Note to be redeemed and that, after the redemption date upon surrender of such Note, a 

  

 48 

 
new Note or Notes in principal amount equal to the unredeemed portion will be issued upon cancellation of the original Note; 
  
 (4) the name and address of the Paying Agent; 
  
 (5) that Notes called for redemption must be surrendered to
the Paying Agent to collect the redemption price; 
  
 (6) that, unless the Company defaults in making such redemption payment, interest on Notes called for redemption ceases to accrue on and after the redemption date; 
  
 (7) the paragraph of the Notes and/or Section of this Indenture pursuant to which the Notes called for
redemption are being redeemed; and 
  
 (8) that
no representation is made as to the correctness or accuracy of the CUSIP number, if any, listed in such notice or printed on the Notes. 
  
 (c) At the Company’s request, the Trustee will give the notice of redemption in the Company’s name and at its expense; provided,
however, that the Company has delivered to the Trustee, at least 15 days prior to the redemption date (unless a shorter time is acceptable to the Trustee), an Officers’ Certificate requesting that the Trustee give such notice and setting
forth the information to be stated in such notice as provided in the preceding paragraph. 
  
 Section 3.04 Effect of Notice of Redemption. 
  
 Once notice of redemption is mailed in accordance with Section 3.03 hereof, Notes called for redemption become irrevocably due and payable on the redemption date at the redemption price. A notice of redemption may not
be conditional. 
  
 Section 3.05 Deposit of Redemption or
Purchase Price. 
  
 (a) At least one Business Day prior to
the redemption or purchase date, the Company will deposit with the Trustee or with the Paying Agent money sufficient to pay the redemption or purchase price of and accrued interest and Liquidated Damages, if any, on all Notes to be redeemed or
purchased on that date. The Trustee or the Paying Agent will promptly return to the Company any money deposited with the Trustee or the Paying Agent by the Company in excess of the amounts necessary to pay the redemption or purchase price of, and
accrued interest and Liquidated Damages, if any, on, all Notes to be redeemed or purchased. 
  
 (b) If the Company complies with the provisions of the preceding paragraph, on and after the redemption or purchase date, interest will cease to accrue on the Notes or the portions of Notes called for redemption or
purchase. If a Note is redeemed or purchased on or after an interest record date but on or prior to the related interest payment date, then any accrued and unpaid interest shall be paid to the Person in whose name such Note was registered at the
close of business on such record date. If any Note called for redemption or purchase is not so paid upon surrender for redemption or purchase because of the failure of the Company to comply with the preceding paragraph, interest shall be paid on the
unpaid principal, from the redemption or 

  

 49 

 
purchase date until such principal is paid, and to the extent lawful on any interest not paid on such unpaid principal, in each case at the rate provided in
the Notes and in Section 4.01 hereof. 
  
 Section 3.06 Notes
Redeemed or Purchased in Part. 
  
 Upon surrender of a Note
that is redeemed or purchased in part, the Company will issue and, upon receipt of an Authentication Order, the Trustee will authenticate for the Holder at the expense of the Company a new Note equal in principal amount to the unredeemed or
unpurchased portion of the Note surrendered. 
  
 Section 3.07
Optional Redemption. 
  
 (a) At any time prior to April 1,
2007, the Company may on any one or more occasions redeem Notes issued under this Indenture at a redemption price of 114% of the principal amount thereof, plus accrued and unpaid interest and Liquidated Damages, if any, to the redemption date, with
the net cash proceeds of one or more Equity Offerings; provided that: 
  
 (1) at least 65% of the aggregate principal amount of Initial Notes issued under this Indenture on the Issue Date (excluding Notes held by the Company and its Subsidiaries) remains outstanding immediately after the
occurrence of such redemption; and 
  
 (2) the
redemption occurs within 90 days of the date of the closing of such Equity Offering. 
  
 (b) Except pursuant to the preceding paragraph, the Notes will not be redeemable at the Company’s option prior to April 1, 2008. 
  
 (c) On or after April 1, 2008, the Company may redeem all or a part of the Notes upon not less than 10 days’ nor more
than 60 days’ notice, at the redemption prices (expressed as percentages of principal amount) set forth below plus accrued and unpaid interest and Liquidated Damages, if any, on the Notes redeemed, to the applicable redemption date, if redeemed
during the twelve-month period beginning on April 1 of the years indicated below, subject to the rights of Holders on the relevant record date to receive interest on the relevant interest payment date: 
  

			
	 Year

	 	 Percentage

	 2008
	 	107.000%
	 2009
	 	103.500%
	 2010 and thereafter
	 	100.000%

  
 Unless the Company defaults in the
payment of the redemption price, interest will cease to accrue on the Notes or portions thereof called for redemption on the applicable redemption date. 
  
 (d) Any redemption pursuant to this Section 3.07 shall be made pursuant to the provisions of Section 3.01 through 3.06 hereof. 
  

 50 

 Section 3.08 Mandatory Redemption. 
  
 The Company is not required to make mandatory redemption or sinking fund payments with respect to the Notes. 
  
 ARTICLE 4 
  
 COVENANTS 
  
 Section 4.01 Payment of Notes. 
  
 (a) The Company will pay or cause to be paid the principal of, premium, if any, and interest and Liquidated Damages, if any, on the Notes on the dates and
in the manner provided in the Notes. Principal, premium, if any, and interest and Liquidated Damages, if any will be considered paid on the date due if the Paying Agent, if other than the Company or a Subsidiary thereof, holds as of 10:00 a.m.
Eastern Time on the due date money deposited by the Company in immediately available funds and designated for and sufficient to pay all principal, premium, if any, and interest then due. The Company will pay all Liquidated Damages, if any, in the
same manner on the dates and in the amounts set forth in the Registration Rights Agreement. 
  
 (b) The Company will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and interest and Liquidated Damages, if any, at the rate equal to 0.50% in excess of
the then applicable interest rate on the Notes to the extent lawful; it will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest and Liquidated Damages (without regard to any
applicable grace period) at the same rate to the extent lawful. 
  
 Section 4.02 Maintenance of Office or Agency. 
  
 (a) The Company will maintain in the Borough of Manhattan, The City of New York, an office or agency (which may be an office of the Trustee or an affiliate of the Trustee, Registrar or co-registrar) where Notes may be surrendered for
registration of transfer or for exchange and where notices and demands to or upon the Company in respect of the Notes and this Indenture may be served. Unless otherwise designated by the Company by written notice to the Trustee, such office or
agency shall be the Trustee’s office in the Borough of Manhattan, The City of New York. The Company will give prompt written notice to the Trustee of any change in the location of such office or agency. If at any time the Company fails to
maintain any such required office or agency or fails to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee. 
  
 (b) The Company may also from time to time designate one or more additional
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, however, that no such designation or rescission will 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 for such purposes. The Company will 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. 
  

 51 

 (c) The Company hereby designates the Corporate Trust Office of the Trustee as one such additional office
or agency of the Company in accordance with Section 2.03 hereof. 
  
 Section 4.03 Reports. 
  
 (a) Whether or not
required by the SEC’s rules and regulations, so long as any Notes are outstanding, the Company will furnish to the Holders of Notes or cause the Trustee to furnish to the Holders of Notes, within five days following the time periods specified
in the SEC’s rules and regulations: 
  
 (1)
all quarterly and annual financial information that would be required to be contained in reports filed with the SEC on Forms 10-Q and 10-K if the Company were required to file such reports, starting with the Form 10-Q for the quarter ending March
31, 2004, including a “Management’s Discussion and Analysis of Financial Condition and Results of Operations” that describes the financial conditions and results of operations of the Company and its consolidated Subsidiaries; and

  
 (2) all current reports that would be
required to be filed with the SEC on Form 8-K if the Company were required to file such reports. 
  
 (b) All such financial information and reports will be prepared in all material respects in accordance with all of the rules and regulations applicable to
such reports; provided that, unless otherwise required by the rules and regulations of the SEC, any financial information and certifications of financial statements required under the Sarbanes-Oxley Act of 2002 and any corresponding rules and
regulations of the SEC shall be required to be provided only to the extent required by so-called “voluntary filers.” Each annual report on Form 10-K will include a report on the Company’s consolidated financial statements by the
Company’s certified independent accountants. In addition, the Company will file a copy of each of the financial information and reports referred to in Section 4.03(a) with the SEC for public availability within the time periods specified in the
rules and regulations applicable to such reports (unless the SEC will not accept such a filing) and will post the reports on its website within those time periods. The Company will at all times comply with TIA § 314(a). 
  
 (c) If the Company has designated any of its Subsidiaries as Unrestricted
Subsidiaries and such Unrestricted Subsidiaries are Significant Subsidiaries, then the quarterly and annual financial information required by Section 4.03(b) hereof shall be presented in compliance with Rule 3-10 of Regulation S-X promulgated under
the Securities Act. 
  
 (d) For so long as any Notes remain
outstanding, at any time the Company and the Guarantors are not required to file the information and reports required by this Section 4.03 with the SEC, the Company and the Guarantors will furnish to the Holders and to securities analysts and
prospective investors, upon their request, the information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act. 
  
 Section 4.04 Compliance Certificate. 
  
 (a) The Company and each Guarantor (to the extent that such Guarantor is so required under the TIA) shall deliver to the Trustee, within 90 days after the
end of each fiscal 

  

 52 

 
year, an Officers’ Certificate stating that a review of the activities of the Company and its Subsidiaries during the preceding fiscal year has been
made under the supervision of the signing Officers with a view to determining whether the Company has kept, observed, performed and fulfilled its obligations under this Indenture and the Security Documents, and further stating, as to each such
Officer signing such certificate, that to the best of his or her knowledge the Company has kept, observed, performed and fulfilled each and every covenant contained in this Indenture and the Security Documents and is not in default in the
performance or observance of any of the terms, provisions and conditions of this Indenture or the Security Documents (or, if a Default or Event of Default has occurred, describing all such Defaults or Events of Default of which he or she may have
knowledge and what action the Company is taking or proposes to take with respect thereto) and that to the best of his or her knowledge no event has occurred and remains in existence by reason of which payments on account of the principal of or
interest, if any, on the Notes is prohibited or if such event has occurred, a description of the event and what action the Company is taking or proposes to take with respect thereto. 
  
 (b) So long as not contrary to the then current recommendations of the American Institute of Certified Public Accountants,
the year-end financial statements or reports delivered pursuant to Section 4.03(a) above shall be accompanied by a written statement of the Company’s independent public accountants (who shall be a firm of established national reputation) that
in making the examination necessary for certification of such financial statements, nothing has come to their attention that would lead them to believe that the Company has violated any provisions of Article 4 or Article 5 hereof or, if any such
violation has occurred, specifying the nature and period of existence thereof, it being understood that such accountants shall not be liable directly or indirectly to any Person for any failure to obtain knowledge of any such violation. 

 
 (c) So long as any of the Notes are outstanding, the Company will deliver
to the Trustee, forthwith upon any Officer becoming aware of any Default or Event of Default, an Officers’ Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect thereto.

  
 Section 4.05 Taxes. 
  
 The Company will pay, and will cause each of its Subsidiaries to pay, prior
to delinquency, all material taxes, assessments, and governmental levies except such as are contested in good faith and by appropriate proceedings or where the failure to effect such payment is not adverse in any material respect to the Holders of
the Notes. 
  
 Section 4.06 Stay, Extension and Usury Laws.

  
 The Company and each of the Guarantors covenants (to the
extent that it may lawfully do so) that it will not at any time insist upon, plead or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force, that
may affect the covenants or the performance of this Indenture; and the Company and each of the Guarantors (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will not, by
resort to any such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but 

  

 53 

 
will suffer and permit the execution of every such power as though no such law has been enacted. 
  
 Section 4.07 Restricted Payments. 
  
 (a) The Company will not, and will not permit any of its Restricted
Subsidiaries to, directly or indirectly: 
  
 (1)
declare or pay any dividend or make any other payment or distribution on account of the Company’s or any of its Restricted Subsidiaries’ Equity Interests (including, without limitation, any payment in connection with any merger or
consolidation involving the Company or any of its Restricted Subsidiaries) or to the direct or indirect holders of the Company’s or any of its Restricted Subsidiaries’ Equity Interests in their capacity as such holders (other than
dividends or distributions payable in Equity Interests (other than Disqualified Stock) of the Company and dividends or distributions payable to the Company or a Restricted Subsidiary of the Company that is a Guarantor); 
  
 (2) purchase, redeem or otherwise acquire or retire for
value (including without limitation, in connection with any merger or consolidation involving the Company other than a Restructuring) any Equity Interests of the Company or its Parent (other than any such Equity Interests owned by the Company or any
of its Restricted Subsidiaries that is a Guarantor); 
  
 (3) make any payment on or with respect to, or purchase, redeem, defease or otherwise acquire or retire for value any Subordinated Indebtedness, except a payment of interest, principal or premium, if any, at the Stated Maturity thereof
(other than any Subordinated Indebtedness held by the Company or a Restricted Subsidiary that is a Guarantor); or 
  
 (4) make any Restricted Investment, 
  
 (all such payments and other actions set forth in these clauses (1) through (4) above being collectively referred to as “Restricted
Payments”), unless, at the time of and after giving effect to such Restricted Payment: 
  
 (1) no Default or Event of Default has occurred and is continuing or would occur as a consequence of such Restricted Payment; and

  
 (2) the Company would, at the time of such
Restricted Payment and after giving pro forma effect thereto as if such Restricted Payment had been made at the beginning of the applicable four-quarter period, have been permitted to incur at least $1.00 of additional Indebtedness (other than
Permitted Indebtedness) pursuant to the Debt to Cash Flow Ratio test set forth in Section 4.09(a); and 
  
 (3) such Restricted Payment, together with the aggregate amount of all other Restricted Payments made by the Company and its Restricted
Subsidiaries since the Issue Date (excluding Restricted Payments permitted by clauses (2), (3), (4), (6), (7) and (9) of Section 4.07(b)), is less than the sum, without duplication of: 
  

 54 

 (A) 100% of the Consolidated Cash Flow of the Company for the period (taken as one
accounting period) from the beginning of the fiscal quarter in which the Issue Date occurs to the end of the Company’s most recently ended fiscal quarter for which internal financial statements are available at the time of such Restricted
Payment less the product of 1.75 times the Company’s Consolidated Interest Expense for the same period; plus 
  
 (B) 100% of: 
  
 (i) (a) the aggregate Net Proceeds and (b) the Fair Market Value of property other than cash, in the case of clauses (a) and (b),
received by the Company since the Issue Date as a contribution to its equity capital (other than in respect of Disqualified Stock) or from the issue or sale of Equity Interests of the Company (other than Disqualified Stock) or from the issue or sale
of convertible or exchangeable Disqualified Stock or convertible or exchangeable debt securities of the Company that have been converted into or exchanged for such Equity Interests of the Company (other than Equity Interests (or Disqualified Stock
or debt securities) sold to a Subsidiary of the Company), except amounts expended pursuant to clause (b) of Section 4.20; 
  
 (ii) without duplication, the amount by which Indebtedness of the Company or any Restricted Subsidiary is reduced on the Company’s
consolidated balance sheet upon the conversion or exchange after the Issue Date of any such Indebtedness into or for Equity Interests of the Company (other than Disqualified Stock); and 
  
 (iii) without duplication, the aggregate Net Proceeds, if any, received by the Company or any of its
Restricted Subsidiaries upon any conversion or exchange described in clause (i) or (ii) above occurring after the Issue Date; plus 
  
 (C) to the extent that any Restricted Investment that was made after the Issue Date is sold for cash or Cash Equivalents, or is otherwise
liquidated or repaid for cash or Cash Equivalents, an amount equal to such cash and Cash Equivalents, but not to exceed the initial amount of such Restricted Investment; plus 
  
 (D) to the extent that any Unrestricted Subsidiary of the Company designated as such after the Issue Date is
redesignated as a Restricted Subsidiary after the Issue Date, the lesser of (i) the Fair Market Value of the Company’s Investment in such Subsidiary as of the date of such redesignation or (ii) such Fair Market Value as of the date on which
such Subsidiary was originally designated as an Unrestricted Subsidiary after the Issue Date; plus 
  
 (E) 100% of any dividends or distributions received directly or indirectly by the Company or a Restricted Subsidiary of the Company that
is a Guarantor after the Issue Date from an Unrestricted Subsidiary of the Company, to the extent that 

  

 55 

 
such dividends or distributions were not otherwise included in Consolidated Net Income of the Company. 
  
 (b) So long as no Default has occurred and is continuing or would be caused
thereby, the provisions of Section 4.07(a) will not prohibit: 
  
 (1) the payment of any dividend within 60 days after the date of declaration of the dividend, if at the date of declaration the dividend payment would have complied with the provisions of this Indenture; 

 
 (2) the making of any Restricted Payment in exchange for,
or out of the Net Proceeds of the substantially concurrent sale (other than to a Subsidiary of the Company) of, Equity Interests of the Company (other than Disqualified Stock) or from the substantially concurrent contribution (other than by a
Subsidiary of the Company) of capital to the Company in respect of its Equity Interests (other than Disqualified Stock); provided that the amount of any such Net Proceeds that are utilized for any such Restricted Payment will be excluded from
clause (3)(B) of Section 4.07(a); 
  
 (3) the
defeasance, redemption, repurchase, retirement or other acquisition of Subordinated Indebtedness with the Net Proceeds from a substantially concurrent incurrence of Permitted Refinancing Indebtedness; 
  
 (4) the payment of any dividend (or, in the case of any
partnership or limited liability company, any similar distribution) by a Restricted Subsidiary of the Company to the holders of its Equity Interests on a pro rata basis; 
  
 (5) the repurchase, redemption or other acquisition or retirement for value of any Equity Interests of the
Company or any Restricted Subsidiary of the Company or the payment of any dividend to Parent in order to fund the repurchase, redemption or other acquisition or retirement for value of any Equity Interests of Parent, in each case held by any current
or former officer, director or employee (or their assigns, heirs or estates) of Parent, the Company or any Restricted Subsidiary of the Company upon the death, disability or termination of employment of any such officer, director or employee or
pursuant to any equity subscription agreement, stock option agreement, shareholders’ agreement or similar agreement; provided that the aggregate price paid for all such repurchased, redeemed, acquired or retired Equity Interests may not
exceed $500,000 in any twelve-month period or $5.0 million in the aggregate since the Issue Date; 
  
 (6) the repurchase, redemption or other acquisition or retirement of Equity Interests (other than Disqualified Stock) deemed to occur upon
the exercise, exchange or conversion of stock options, warrants or other similar rights to the extent such Equity Interests represent a portion of the exercise or exchange price of those stock options, and the repurchase, redemption or other
acquisition or retirement of Equity Interests (other than Disqualified Stock) made in lieu of withholding taxes resulting from the exercise, exchange or conversion of stock options, warrants or other similar rights; 
  
 (7) the declaration and payment of regularly scheduled or
accrued dividends to holders of any class or series of Disqualified Stock of the Company or any Restricted 

  

 56 

 
Subsidiary of the Company, or any class or series of preferred stock of a Restricted Subsidiary of the Company, in each case issued after the Issue Date in
accordance with the Debt to Cash Flow Ratio test described in Section 4.09(a) hereof; 
  
 (8) Permitted Payments to Parent; 
  
 (9) payments or distributions to dissenting stockholders pursuant to applicable law in connection with a merger, consolidation or transfer
of assets that complies with Section 5.01 hereof; 
  
 (10) upon the occurrence of a Change of Control and within 60 days after the completion of the offer to repurchase the notes in accordance with the provisions of Section 4.15 hereof, any purchase or redemption of Subordinated Indebtedness
of the Company required pursuant to the terms thereof as a result of such Change of Control at a purchase or redemption price not to exceed 101% of the outstanding principal amount thereof, plus accrued and unpaid interest thereon, if any;

  
 (11) payments made to the holders of warrants
at the time of exercise in an amount in cash equal to the value of any fractional warrants exercised; and 
  
 (12) other Restricted Payments not to exceed $5.0 million in the aggregate since the Issue Date. 
  
 (c) The amount of all Restricted Payments (other than cash) will be the Fair
Market Value on the date of the Restricted Payment of the asset(s) or securities proposed to be transferred or issued by the Company or such Restricted Subsidiary, as the case may be, pursuant to the Restricted Payment. The Fair Market Value of any
assets or securities that are required to be valued by this Section 4.07 will be determined by the Board of Directors of the Company whose determination will be conclusive and whose resolution with respect thereto shall be delivered to the Trustee.

  
 Section 4.08 Dividend and Other Payment Restrictions
Affecting Subsidiaries. 
  
 (a) The Company will not, and
will not permit any of its Restricted Subsidiaries to, create or permit to exist or become effective any consensual encumbrance or restriction on the ability of any Restricted Subsidiary to: 
  
 (1) (a) pay dividends or make any other distributions on its
Capital Stock to the Company or any of the Company’s Restricted Subsidiaries or with respect to any other interest or participation in, or measured by, such Restricted Subsidiary’s profits, or (b) pay any indebtedness owed to the Company
or any of its Restricted Subsidiaries; 
  
 (2)
make loans or advances to the Company or any of the Company’s Restricted Subsidiaries; or 
  
 (3) sell, lease or transfer any of its properties or assets to the Company or any of the Company’s Restricted Subsidiaries.

  

 57 

 (b) The restrictions in Section 4.08(a) will not apply to encumbrances or restrictions existing under or
by reason of: 
  
 (1) agreements or instruments
governing Existing Indebtedness or Capital Stock as in effect on the Issue Date and any amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings of those agreements or instruments,
provided that such amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings are no more restrictive, taken as a whole, with respect to such dividend and other payment restrictions
than those contained in those agreements or instruments on the Issue Date; 
  
 (2) agreements or instruments governing Indebtedness containing prohibitions on dividends, distributions and other restricted payments; provided, however, that such clauses must permit dividends or other
distributions of any Restricted Subsidiary of the Company to the Company to enable the Company to make all regularly scheduled payments of the principal of, or interest and premium and Liquidated Damages, if any, on the Notes so long as no default
or event of default has occurred and is continuing, or would result therefrom; provided, that if the event of default giving rise to such encumbrance or restriction is other than a payment event of default, a bankruptcy or insolvency event of
default, then such prohibition may not extend for more than 180 days in any consecutive 360 day period; 
  
 (3) this Indenture, the Notes and the Subsidiary Guarantees; 
  
 (4) applicable law, rule, regulation or order; 
  
 (5) any instrument governing Indebtedness or Capital Stock
of a Person acquired by the Company or any of its Restricted Subsidiaries as in effect at the time of such acquisition (except to the extent such Indebtedness or Capital Stock was incurred in connection with or in contemplation of such acquisition),
which encumbrance or restriction is not applicable to any Person, or the properties or assets of any Person, other than the Person, or the property or assets of the Person, so acquired; provided that, in the case of Indebtedness, such
Indebtedness was permitted by the terms of this Indenture to be incurred; 
  
 (6) customary non-assignment provisions in contracts, leases, real property mortgages and licenses entered into in the ordinary course of business; 
  
 (7) purchase money obligations for property acquired in the ordinary course of business, Capital Lease
Obligations or mortgage financings that impose restrictions on the property purchased or leased that are (a) incurred pursuant to clause (10) of Section 4.09(b), (b) incurred pursuant to clause (12) of Section 4.09(b) or (c) incurred pursuant to
Section 4.09(a); 
  
 (8) any instrument governing
Secured Indebtedness that imposes restrictions on the assets securing such Indebtedness of the nature described in clause (3) of Section 4.08(a); 
  
 (9) any agreement for the sale or other disposition of a Restricted Subsidiary that restricts distributions by that Restricted Subsidiary
pending the sale or other disposition; 
  

 58 

 (10) Permitted Refinancing Indebtedness; provided that the restrictions contained
in the agreements governing such Permitted Refinancing Indebtedness are not materially more restrictive, taken as a whole, than those contained in the agreements governing the Indebtedness being refinanced; 
  
 (11) Liens permitted to be incurred under the provisions of
Section 4.12 hereof that limit the right of the debtor to dispose of the assets subject to such Liens; 
  
 (12) provisions with respect to the disposition or distribution of assets or property in joint venture agreements, asset sale agreements,
sale-leaseback agreements, stock sale agreements and other similar agreements entered into with the approval of the Company’s Board of Directors, which limitation is applicable only to the assets that are the subject of such agreements;

  
 (13) restrictions on cash or other deposits
or net worth restrictions, in each case imposed by customers under contracts entered into in the ordinary course of business; and 
  
 (14) any other customary provisions arising or agreed to in the ordinary course of business not relating to Indebtedness or Capital Stock
that do not individually or in the aggregate detract from the value of the assets of the Company or any Guarantor. 
  
 Section 4.09 Incurrence of Indebtedness and Issuance of Preferred Stock. 
  
 (a) The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur,
issue, assume, guarantee or otherwise become directly or indirectly liable, contingently or otherwise, with respect to (collectively, “incur”) any Indebtedness (including Acquired Debt), and the Company will not issue any
Disqualified Stock and will not permit any of its Restricted Subsidiaries to issue any Disqualified Stock or any shares of preferred stock; provided, however, that the Company may incur Indebtedness (including Acquired Debt) or issue
Disqualified Stock, and the Guarantors may incur Indebtedness (including Acquired Debt) or issue Disqualified Stock or preferred stock (including Disqualified Stock or preferred stock existing at the time of acquisition of a Guarantor), if the Debt
to Cash Flow Ratio for the Company’s most recently ended four full fiscal quarters for which internal financial statements are available immediately preceding the date on which such additional Indebtedness is incurred or such Disqualified Stock
or such preferred stock is issued, as the case may be, would have been no greater than 6.5 to 1 for any four fiscal quarter period ending on or prior to December 31, 2005; no greater than 6.0 to 1 for any four fiscal quarter period ending after
December 31, 2005 and on or prior to December 31, 2006; no greater than 5.5 to 1 for any four fiscal quarter period ending after December 31, 2006 and on or prior to December 31, 2007; and no greater than 5.0 to 1 for any four fiscal quarter period
ending after December 31, 2007, in each case determined on a pro forma basis (including a pro forma application of the net proceeds therefrom), as if the additional Indebtedness had been incurred or the Disqualified Stock or the preferred stock had
been issued, as the case may be, at the beginning of such four-quarter period. 
  

 59 

 (b) The provisions of Section 4.09(a) will not prohibit the incurrence of any of the following items of
Indebtedness (collectively, “Permitted Debt”): 
  
 (1) the incurrence by the Company and its Restricted Subsidiaries of Existing Indebtedness; 
  
 (2) the incurrence by the Company and the Guarantors of Indebtedness represented by the Notes and the related Subsidiary Guarantees to be issued on the
Issue Date and the Exchange Notes and the related Subsidiary Guarantees to be issued pursuant to the Registration Rights Agreement; 
  
 (3) the incurrence by the Company or any of its Restricted Subsidiaries of Permitted Refinancing Indebtedness in exchange for, or the net proceeds of
which are used to refund, refinance, replace, defease or discharge Indebtedness (other than intercompany Indebtedness) or Disqualified Stock of the Company, or Indebtedness (other than intercompany Indebtedness), Disqualified Stock or preferred
stock of a Restricted Subsidiary of the Company, in each case that was permitted by this Indenture to be incurred or issued under Section 4.09(a) or clauses (1), (2) or (3) of this Section 4.09(b); 
  
 (4) the incurrence by the Company or any of its Restricted Subsidiaries of
intercompany Indebtedness between or among the Company and any of its Restricted Subsidiaries; provided, however, that: 
  
 (A) if the Company or any Guarantor is the obligor on such Indebtedness and the payee is not the Company or a Guarantor, such Indebtedness
must be expressly subordinated in right of payment to the prior payment in full in cash of all Obligations then due with respect to the Notes, in the case of the Company, or the Subsidiary Guarantee, in the case of a Guarantor; and 
  
 (B) (1) any subsequent issuance or transfer of Equity
Interests that results in any such Indebtedness being held by a Person other than the Company or a Restricted Subsidiary of the Company and (2) any sale or other transfer of any such Indebtedness to a Person that is not either the Company or a
Restricted Subsidiary of the Company; 
  
 will be deemed, in each case, to
constitute an incurrence of such Indebtedness by the Company or such Restricted Subsidiary, as the case may be, that was not permitted by this clause (4); 
  
 (5) the issuance by any of the Company’s Restricted Subsidiaries to the Company or to any of its Restricted Subsidiaries of shares of
Disqualified Stock or preferred stock; provided, however, that: 
  
 (A) any subsequent issuance or transfer of Equity Interests that results in any such Disqualified Stock or preferred stock being held by a Person other than the Company or a Restricted Subsidiary of the Company; and

  
 (B) any sale or other transfer of any such
Disqualified Stock or preferred stock to a Person that is not either the Company or a Restricted Subsidiary of the Company; 

  

 60 

 
will be deemed, in each case, to constitute an issuance of such Disqualified Stock or preferred stock by the Company or such Restricted Subsidiary, as the
case may be, that was not permitted by this clause (5); 
  
 (6) the incurrence by the Company or any of its Restricted Subsidiaries of Hedging Obligations; 
  
 (7) the guarantee by the Company or any of the Guarantors of Indebtedness of the Company or a Restricted Subsidiary of the Company that
was permitted to be incurred by another provision of this covenant; provided that if the Indebtedness being guaranteed is subordinated to the Notes, then the Guarantee shall be subordinated in right of payment to the same extent as the Indebtedness
guaranteed; 
  
 (8) the incurrence by the Company
or any of its Restricted Subsidiaries of Indebtedness in respect of workers’ compensation claims, self-insurance obligations, bankers’ acceptances, performance bonds, completion bonds, bid bonds, appeal bonds and surety bonds or other
similar bonds or obligations, in each case incurred in the ordinary course of business, and any Guarantees or letters of credit functioning as or supporting any of the foregoing; 
  
 (9) the incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness arising from the
honoring by a bank or other financial institution of a check, draft or similar instrument inadvertently drawn against insufficient funds, so long as such Indebtedness is covered within five Business Days; 
  
 (10) the incurrence by the Company or any of the Guarantors
of Indebtedness represented by Capital Lease Obligations (whether or not as part of a Sale and Leaseback Transaction), mortgage financings or purchase money obligations, in each case, incurred for the purpose of financing all or any part of the
purchase price or cost of acquisition, construction or improvement of property, plant or equipment, in an aggregate principal amount at any time outstanding not to exceed $10.0 million; 
  
 (11) Indebtedness consisting of customary indemnification, adjustments of purchase price or similar
obligations, in each case, incurred or assumed in connection with the acquisition of any Permitted Business; and 
  
 (12) the incurrence by the Company or any of the Guarantors of additional Indebtedness in an aggregate principal amount (or accreted
value, as applicable) at any time outstanding not to exceed $5.0 million. 
  
 (c) The Company will not incur, and will not permit any Guarantor to incur, any Indebtedness (including Permitted Debt) that is contractually subordinated in right of payment to any other Indebtedness of the Company
or such Guarantor, unless such Indebtedness is also contractually subordinated in right of payment to the Notes and the applicable Subsidiary Guarantee on substantially identical terms. 
  
 (d) For purposes of determining any particular amount of Indebtedness under this Section 4.09, Guarantees, Liens or
obligations with respect to letters of credit, in each case supporting Indebtedness otherwise included in the determination of such particular amount, shall 

  

 61 

 
not be included. For purposes of determining compliance with this Section 4.09, in the event that an item of proposed Indebtedness meets the criteria of more
than one of the categories of Permitted Debt described in clauses (1) through (12) of Section 4.09(b), or is entitled to be incurred pursuant to Section 4.09(a), the Company will be permitted to classify such item of Indebtedness on the date of its
incurrence, or later reclassify all or a portion of such item of Indebtedness, in any manner that complies with this Section 4.09, and such item of Indebtedness will be treated as having been incurred pursuant to only one of such clauses of Section
4.09(b) or pursuant to Section 4.09(a). The accrual of interest, the accretion or amortization of original issue discount, the payment of interest on any Indebtedness in the form of additional Indebtedness with the same terms, and the payment of
dividends on Disqualified Stock in the form of additional shares of the same class or series of Disqualified Stock will not be deemed to be an incurrence of Indebtedness or an issuance of Disqualified Stock for purposes of this Section 4.09.
Notwithstanding any other provision of this Section 4.09, the maximum amount of Indebtedness that the Company or any Restricted Subsidiary may incur pursuant to this Section 4.09 shall not be deemed to be exceeded solely as a result of fluctuations
in exchange rates or currency values. 
  
 (e) The amount of any
Indebtedness outstanding as of any date will be: 
  
 (1) the accreted value of the Indebtedness, in the case of any Indebtedness issued with original issue discount; 
  
 (2) the maximum fixed redemption or repurchase price of Disqualified Stock, exclusive of accrued dividends thereon, of the specified
Person at the time of determination and, with respect to any Restricted Subsidiary that is not a Guarantor, any preferred stock; 
  
 (3) in respect of Indebtedness of another Person secured by a Lien on the assets of the specified Person, the lesser of: 
  
 (A) the Fair Market Value of such assets at the date of
determination; and 
  
 (B) the amount of the
Indebtedness of the other Person; and 
  
 (4) the
principal amount of the Indebtedness, in the case of any other Indebtedness. 
  
 Section 4.10 Asset Sales. 
  
 (a) The Company will not, and will not permit any of its Restricted Subsidiaries to, consummate an Asset Sale unless: 
  
 (1) the Company or such Restricted Subsidiary receives consideration at the time of the Asset Sale at least equal to the Fair Market Value
of the assets or Equity Interests issued or sold or otherwise disposed of; and 
  

 62 

 (2) at least 75% of the consideration received in the Asset Sale by the Company or such
Restricted Subsidiary is in the form of cash or Cash Equivalents. For purposes of this provision, each of the following shall be deemed to be cash: 
  
 (A) any liabilities, as shown on the Company’s most recent consolidated balance sheet (or as would be shown on the Company’s
consolidated balance sheet as of the date of such Asset Sale), of the Company or any Restricted Subsidiary (other than contingent liabilities and liabilities that are by their terms subordinated in right of payment to the Notes or any Subsidiary
Guarantee) that are assumed by the transferee of any such assets pursuant to (1) a customary novation agreement that releases the Company or such Restricted Subsidiary from further liability or (2) an assignment agreement that includes, in lieu of
such a release, the agreement of the transferee or its parent company to indemnify and hold harmless the Company or such Restricted Subsidiary from and against any loss, liability or cost in respect of such assumed liability; 
  
 (B) any property received by the Company or any such
Restricted Subsidiary from such transferee that is converted by the Company or such Restricted Subsidiary into cash within 90 days after such Asset Sale, to the extent of the cash received in that conversion; provided that such cash will be
treated as Net Proceeds attributable to the original Asset Sale for which such property was received; and 
  
 (C) any stock or assets of the kind referred to in clauses (2) or (4) of Section 4.10(c). 
  
 (b) Notwithstanding the foregoing, the 75% limitation referred to in Section
4.10(a) shall be deemed satisfied with respect to any Asset Sale in which the cash or Cash Equivalents portion of the consideration received therefrom complies with such 75% limitation on an after-tax basis determined in accordance with Section
4.10(a). 
  
 (c) Within 365 days after the receipt of any Net
Proceeds from an Asset Sale, the Company (or the applicable Restricted Subsidiary, as the case may be) may apply an amount equal to such Net Proceeds at its option to any combination of the following: 
  
 (1) if such Asset Sale involves the Sale of Excluded
Collateral, to prepay, repay, defease, redeem, purchase or otherwise retire Secured Indebtedness of the Company or any Guarantor that is required by its terms to be repaid with the Net Proceeds from such Asset Sale and, if such Secured Indebtedness
repaid is revolving credit Indebtedness, to correspondingly reduce commitments with respect thereto; 
  
 (2) to acquire all or substantially all of the assets of, or any Capital Stock of, another Permitted Business if, after giving effect to
any such acquisition of Capital Stock, the Permitted Business is or becomes a Restricted Subsidiary of the Company; 
  
 (3) to make capital expenditures in a Permitted Business; or 
  
 (4) to acquire other assets that are not classified as current assets under GAAP and that are used or useful
in a Permitted Business. 
  

 63 

 (d) Notwithstanding Section 4.10(c), if within 365 days after the receipt of any Net Proceeds from an
Asset Sale, the Company (or the applicable Restricted Subsidiary, as the case may be) enters into a binding written agreement committing the Company or such Restricted Subsidiary to an application of funds of the kind described in clause (2), (3) or
(4) of Section 4.10(c), the Company or such Restricted Subsidiary shall be deemed not to be in violation of Section 4.10(c); provided that such application of funds is consummated within 180 days after the end of such 365-day period.

  
 (e) Pending the final application of any Net Proceeds, the
Company may temporarily reduce revolving credit borrowings or otherwise invest the Net Proceeds in any manner that is not prohibited by this Indenture. 
  
 (f) An amount equal to any Net Proceeds from Asset Sales that are not applied or invested as provided in the preceding paragraphs will constitute
“Excess Proceeds.” When the aggregate amount of Excess Proceeds exceeds $10.0 million, within twenty days thereof, the Company will make an Asset Sale Offer to all Holders of Notes and all holders of other Indebtedness that
is pari passu with the Notes containing provisions similar to those set forth in this Indenture with respect to offers to purchase or redeem with the proceeds of sales of assets in accordance with this Section 4.10 to purchase the maximum
principal amount (or, if applicable, accreted value) of Notes and such other pari passu Indebtedness that may be purchased with the Excess Proceeds. The offer price in any Asset Sale Offer will be equal to 100% of the principal amount of the
Notes and the principal amount or, if applicable, accreted value, of such other Indebtedness, plus with respect to both the Notes and any other Indebtedness, accrued and unpaid interest and Liquidated Damages, if any, to the date of closing of the
offer, and will be payable in cash. If any Excess Proceeds remain unapplied after consummation of an Asset Sale Offer, the Company and its Restricted Subsidiaries 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 into such Asset Sale Offer exceeds the amount of Excess Proceeds, the Trustee shall select the Notes and such other pari passu
Indebtedness to be purchased on a pro rata basis based on the aggregate principal amount of Notes tendered. Upon completion of each Asset Sale Offer, the amount of Excess Proceeds shall be reset at zero. 
  
 (g) Notwithstanding the foregoing, the sale, conveyance or other disposition
of all or substantially all of the assets of the Company and its Restricted Subsidiaries, taken as a whole, will be governed by the provisions of Sections 4.15 and/or 5.01 and not by this Section 4.10. 
  
 (h) The Company will comply with the requirements of Rule 14e-1 under the
Exchange Act and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with each repurchase of Notes pursuant to an Asset Sale Offer. To the extent that the provisions of any
securities laws or regulations conflict with the provisions of this Section 4.10, or compliance with the provisions of this Section 4.10 would constitute a violation of any such laws or regulations, the Company will comply with the applicable
securities laws and regulations and will not be deemed to have breached its obligations under this Section 4.10 by virtue of such compliance. 
  

 64 

 (i) In the event that, pursuant to the preceding provisions of this Section 4.10, the Company is required
to commence an offer to all Holders to purchase Notes (an “Asset Sale Offer”), it will follow the procedures specified below. 
  
 (1) The Asset Sale Offer shall be made to all Holders and all holders of other Indebtedness that is pari passu with the Notes
containing provisions similar to those set forth in this Indenture with respect to offers to purchase or redeem with the proceeds of sales of assets. The Asset Sale Offer will remain open for a period of at least 20 Business Days following its
commencement and not more than 30 Business Days, except to the extent that a longer period is required by applicable law (the “Offer Period”). No later than three Business Days after the termination of the Offer Period (the
“Purchase Date”), the Company will apply all Excess Proceeds (the “Offer Amount”) to the purchase of Notes and such other pari passu Indebtedness (on a pro rata basis, if applicable) or, if less
than the Offer Amount has been tendered, all Notes and other Indebtedness tendered in response to the Asset Sale Offer. Payment for any Notes so purchased will be made in the same manner as interest payments are made. 
  
 (2) If the Purchase Date is on or after an interest record
date and on or before the related interest payment date, any accrued and unpaid interest and Liquidated Damages, if any, will be paid to the Person in whose name a Note is registered at the close of business on such record date, and no additional
interest will be payable to Holders who tender Notes pursuant to the Asset Sale Offer. 
  
 (3) Upon the commencement of an Asset Sale Offer, the Company will send, by first class mail, a notice to the Trustee and each of the
Holders, with a copy to the Trustee. The notice will contain all instructions and materials necessary to enable such Holders to tender Notes pursuant to the Asset Sale Offer. The notice, which will govern the terms of the Asset Sale Offer, will
state: 
  
 (A) that the Asset Sale Offer is being
made pursuant to this Section 4.10 and the length of time the Asset Sale Offer will remain open; 
  
 (B) the Offer Amount, the purchase price and the Purchase Date; 
  
 (C) that any Note not tendered or accepted for payment will continue to accrue interest; 
  
 (D) that, unless the Company defaults in making such
payment, any Note accepted for payment pursuant to the Asset Sale Offer will cease to accrue interest after the Purchase Date; 
  
 (E) that Holders electing to have a Note purchased pursuant to an Asset Sale Offer may elect to have Notes purchased in integral multiples
of $1,000 only; 
  
 (F) that Holders electing to
have Notes purchased pursuant to any Asset Sale Offer will be required to surrender the Note, with the form entitled “Option of Holder to Elect Purchase” attached to the Notes completed, or transfer by book-entry transfer, to the Company,
a Depositary, if appointed by the Company, or a Paying Agent at the address specified in the notice at least three days before the Purchase Date; 
  

 65 

 (G) that Holders will be entitled to withdraw their election if the Company, the
Depositary or the Paying Agent, as the case may be, receives, not later than the expiration of the Offer Period, a telegram, telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount of the Note the Holder
delivered for purchase and a statement that such Holder is withdrawing his election to have such Note purchased; 
  
 (H) that, if the aggregate principal amount of Notes and other pari passu Indebtedness surrendered by holders thereof exceeds the
Offer Amount, the Company will select the Notes and other pari passu Indebtedness to be purchased on a pro rata basis based on the principal amount of Notes and such other pari passu Indebtedness surrendered (with such adjustments as
may be deemed appropriate by the Company so that only Notes in denominations of $1,000, or integral multiples thereof, will be purchased); and 
  
 (I) that Holders whose Notes were purchased only in part will be issued new Notes equal in principal amount to the unpurchased portion of
the Notes surrendered (or transferred by book-entry transfer). 
  
 (4) On or before the Purchase Date, the Company will, to the extent lawful, accept for payment, on a pro rata basis to the extent necessary, the Offer Amount of Notes or portions thereof tendered pursuant to the Asset
Sale Offer, or if less than the Offer Amount has been tendered, all Notes tendered, and will deliver or cause to be delivered to the Trustee the Notes properly accepted together with an Officers’ Certificate stating that such Notes or portions
thereof were accepted for payment by the Company in accordance with the terms of this Section 4.10. The Company, the Depositary or the Paying Agent, as the case may be, will promptly (but in any case not later than five days after the Purchase Date)
mail or deliver to each tendering Holder an amount equal to the purchase price of the Notes tendered by such Holder and accepted by the Company for purchase, and the Company, will promptly issue a new Note, and the Trustee, upon written request from
the Company, will authenticate and mail or deliver (or cause to be transferred by book entry) such new Note to such Holder, in a principal amount equal to any unpurchased portion of the Note surrendered. Any Note not so accepted shall be promptly
mailed or delivered by the Company to the Holder thereof. The Company will publicly announce the results of the Asset Sale Offer on the Purchase Date. 
  
 Section 4.11 Transactions with Affiliates. 
  
 (a) The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, make any payment to, or sell, lease, transfer
or otherwise dispose of any of its properties or assets to, or purchase any property or assets from, or enter into or make or amend any transaction, contract, agreement, understanding, loan, advance or guarantee with, or for the benefit of, any
Affiliate of the Company (each, an “Affiliate Transaction”), unless: 
  
 (1) such Affiliate Transaction is on terms that are no less favorable to the Company or the relevant Restricted Subsidiary than those that
would have been obtained in a comparable transaction by the Company or such Restricted Subsidiary with an unrelated Person; and 
  

 66 

 (2) the Company delivers to the Trustee: 
  
 (A) with respect to any Affiliate Transaction or series of
related Affiliate Transactions involving aggregate consideration in excess of $2.5 million, a resolution of the Board of Directors of the Company set forth in an Officers’ Certificate certifying that such Affiliate Transaction complies with
this Section 4.11(a) and, if an opinion meeting the requirements set forth in the following clause (B) has not been obtained, that such Affiliate Transaction has been approved by a majority of the disinterested members of the Board of Directors of
the Company; and 
  
 (B) with respect to any
Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration in excess of $15.0 million, an opinion as to the fairness to the Company or such Subsidiary of such Affiliate Transaction from a financial point of
view issued by an accounting, appraisal or investment banking firm of national standing. 
  
 (b) The following matters will not be deemed to be Affiliate Transactions and, therefore, will not be subject to the provisions of Section 4.11(a): 
  
 (1) any transaction by the Company or any Restricted Subsidiary with an Affiliate of the Company directly
related to the purchase, sale or distribution of products in the ordinary course of business consistent with industry practice which has been approved by a majority of the disinterested (as to such transaction) members of the Board of Directors

  
 (2) any employee, director or consulting
arrangement approved by a majority of disinterested (as to such transaction) members of the Board of Directors of the Company, including any employment agreement, employee benefit plan, officer or director indemnification agreement or any similar
arrangement entered into by the Company or any of its Restricted Subsidiaries and existing on the Issue Date, or entered into thereafter in the ordinary course of business, and any indemnities or other transactions permitted or required by corporate
charter or bylaw, statutory provisions or any of the foregoing agreements, plans or arrangements; 
  
 (3) transactions exclusively between or among the Company and/or any of the Guarantors; 
  
 (4) payment of reasonable directors’ fees to directors
of the Company and its Subsidiaries; 
  
 (5) any
transaction on arm’s-length terms with any non-Affiliate of the Company that becomes an Affiliate of the Company solely as a result of such transaction; 
  

(6) (A) any issuance of Equity Interests (other than Disqualified Stock) of the Company to, (B) any receipt of any capital contribution
from, or (C) after such time as the common equity of the Company is listed or quoted on a national securities exchange or national quotation system, any purchase of such common equity at a price per share equal to or less than the average closing
price for such common equity as reported or quoted on such exchange or quotation system during the five trading days immediately preceding the date of such transaction from, in any of the above cases, any Affiliate of the Company; provided,
however, that any such 

  

 67 

 
purchase or series of related purchases of such common equity of the Company involving aggregate consideration in excess of $15.0 million shall comply with
clause 2(b) of Section 4.11(a); 
  
 (7) any
Permitted Investments or Restricted Payments that do not violate Section 4.07 hereof; 
  
 (8) a Restructuring; 
  
 (9) loans or advances to employees or directors made in the ordinary course of business of the Company or any of its Restricted
Subsidiaries in an aggregate principal amount not to exceed $1.0 million at any one time outstanding; 
  
 (10) any contracts, agreements or understandings existing as of the Issue Date, any amendments to or replacements of any such contract,
agreement or understanding so long as any such amendment or replacement is not more disadvantageous to the Company or to the Holders of the Notes in any material respect than the original agreement as in effect as of the Issue Date and any rights of
first refusal, first offer, co-sale rights and preemptive rights relating to Equity Interests (other than Disqualified Stock) granted to any Affiliate of the Company; and 
  
 (11) any Permitted Payments to Parent. 
  
 Section 4.12 Liens. 
  
 The Company will not, and will not permit any of its Restricted Subsidiaries to create, incur, assume or suffer to exist any Lien securing Indebtedness,
upon any Collateral or Excluded Collateral now owned or hereafter acquired, except Permitted Liens. Notwithstanding anything to the contrary contained in this Indenture or the Security Documents, the Company will not, and will not permit any of its
Restricted Subsidiaries to, create, incur, assume or suffer to exist any Lien upon any of its Excluded Collateral (other than Permitted Liens on the Excluded Collateral described in clauses (3) and (4) of the definition of “Excluded
Collateral”, or, solely with respect to the Excluded Collateral described in clause (5)(c) of “Excluded Collateral,” statutory or non consensual liens of a de minimus nature or where an equal and ratable lien is granted to the
Collateral Agent for the benefit of the Secured Parties), whether now owned or hereafter acquired, except for such Liens on Excluded Collateral granted to the Collateral Agent for the benefit of the Secured Parties under the Security Documents.

  
 Section 4.13 Business Activities. 
  
 The Company will not, and will not permit any of its Restricted Subsidiaries
to, engage in any line of business other than Permitted Businesses, except to such extent as would not be material to the Company and its Restricted Subsidiaries taken as a whole, and except with respect to businesses acquired by the Company or its
Restricted Subsidiaries as part of an acquisition of a Permitted Business that are intended to be disposed of within a reasonable time after the acquisition thereof. 
  

 68 

 Section 4.14 Corporate Existence. 
  
 (a) Subject to Article 5 hereof, the Company shall do or cause to be done all things necessary to preserve and keep in full
force and effect: 
  
 (1) its corporate
existence, and the corporate, partnership or other existence of each of its Subsidiaries, in accordance with the respective organizational documents (as the same may be amended from time to time) of the Company or any such Subsidiary; and

  
 (2) the rights (charter and statutory),
licenses and franchises of the Company and its Subsidiaries; provided, however, that the Company shall not be required to preserve any such right, license or franchise, or the corporate, partnership or other existence of any of its
Subsidiaries, if the Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and its Subsidiaries, taken as a whole, and that the loss thereof is not adverse in any
material respect to the Holders of the Notes. 
  
 Section 4.15
Offer to Repurchase Upon Change of Control. 
  
 (a) Upon
the occurrence of a Change of Control, the Company will make an offer (a ”Change of Control Offer”) to each Holder to repurchase all or any part (equal to $1,000 or an integral multiple of $1,000) of each Holder’s Notes
at a purchase price equal to 101% of the aggregate principal amount of Notes repurchased (plus accrued and unpaid interest and Liquidated Damages, if any, on the Notes repurchased to the date of purchase), subject to the rights of Holders on the
relevant record date to receive interest due on the relevant interest payment date (the “Change of Control Payment”). Within 30 days following any Change of Control, the Company will mail a notice to each Holder describing
the transaction or transactions that constitute the Change of Control and stating: 
  
 (1) that the Change of Control Offer is being made pursuant to this Section 4.15 and that all Notes tendered will be accepted for payment;

  
 (2) the purchase price and the purchase date,
which shall be no earlier than 30 days and no later than 60 days from the date such notice is mailed (the “Change of Control Payment Date”); 
  
 (3) that any Note not tendered will continue to accrue interest; 
  
 (4) that, unless the Company defaults in the payment of the
Change of Control Payment, all Notes accepted for payment pursuant to the Change of Control Offer will cease to accrue interest after the Change of Control Payment Date; 
  
 (5) that Holders electing to have any Notes purchased pursuant to a Change of Control Offer will be required
to surrender the Notes, with the form entitled “Option of Holder to Elect Purchase” attached to the Notes completed, or transfer by book-entry transfer, to the Paying Agent at the address specified in the notice prior to the close of
business on the third Business Day preceding the Change of Control Payment Date; 
  

 69 

 (6) that Holders will be entitled to withdraw their election if the Paying Agent
receives, not later than the close of business on the second Business Day preceding the Change of Control Payment Date, a telegram, telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount of Notes delivered
for purchase, and a statement that such Holder is withdrawing his election to have the Notes purchased; and 
  
 (7) 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, which unpurchased portion must be equal to $1,000 in principal amount or an integral multiple thereof. 
  
 (b) The Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the
extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change in Control. To the extent that the provisions of any securities laws or regulations conflict with the provisions of this Section
4.15, or compliance with the provisions of this Section 4.15 would constitute a violation of any such laws or regulations, the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its
obligations under this Section 4.15 by virtue of such compliance. 
  
 (c) On or before the Change of Control Payment Date, the Company will, to the extent lawful: 
  
 (1) accept for payment all Notes or portions of Notes properly tendered pursuant to the Change of Control Offer; 
  
 (2) deposit with the Paying Agent an amount equal to the
Change of Control Payment in respect of all Notes or portions of Notes properly tendered; and 
  
 (3) deliver or cause to be delivered to the Trustee the Notes so accepted together with an Officers’ Certificate stating the
aggregate principal amount of Notes or portions of Notes being purchased by the Company. 
  
 (d) The Paying Agent will promptly mail to each Holder of Notes properly tendered the Change of Control Payment for such Notes, and the Trustee will promptly authenticate and mail (or cause to be transferred by book
entry) to each Holder a new Note equal in principal amount to any unpurchased portion of the Notes surrendered, if any; provided that each new Note will be in a principal amount of $1,000 or an integral multiple of $1,000. The Company will
publicly announce the results of the Change of Control Offer on or as soon as practicable after the Change of Control Payment Date. 
  
 (e) Notwithstanding anything to the contrary in this Section 4.15, the Company will not be required to make a Change of Control Offer upon a Change of
Control if (1) a third party makes the Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements set forth in this Section 4.15 and purchases all Notes properly tendered and not withdrawn under the Change
of Control Offer, or (2) notice of redemption has been given pursuant to Section 3.07 hereof, unless and until there is a default in payment of the applicable redemption price. 
  

 70 

 Section 4.16 Payments for Consent. 
  
 The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, pay or cause to be
paid any consideration to or for the benefit of any Holder of Notes for or as an inducement to any consent, waiver or amendment of any of the terms or provisions of this Indenture or the Notes unless such consideration is offered to be paid and is
paid to all Holders of the Notes that consent, waive or agree to amend in the time frame set forth in the solicitation documents relating to such consent, waiver or agreement. 
  
 Section 4.17 Additional Subsidiary Guarantees. 
  
 If the Company or any of its Restricted Subsidiaries acquires or creates another Domestic Restricted Subsidiary after the
Issue Date, then that newly acquired or created Domestic Restricted Subsidiary will become a Guarantor and execute a supplemental indenture pursuant to which it will guarantee the Notes on an unconditional senior basis and deliver an Opinion of
Counsel satisfactory to the Trustee within ten Business Days of the date on which it was acquired or created to the effect that such supplemental indenture has been duly authorized, executed and delivered by that Domestic Restricted Subsidiary and
constitutes a valid and binding agreement of that Domestic Restricted Subsidiary, enforceable in accordance with its terms (subject to customary exceptions); provided that any Domestic Restricted Subsidiary that constitutes an Immaterial Subsidiary
need not become a Guarantor until such time as it ceases to be an Immaterial Subsidiary. 
  
 Section 4.18 Designation of Restricted and Unrestricted Subsidiaries. 
  
 The Board of Directors of the Company may designate any Restricted Subsidiary to be an Unrestricted Subsidiary if that designation would not cause a
Default. If a Restricted Subsidiary is designated as an Unrestricted Subsidiary, the aggregate Fair Market Value of all outstanding Investments owned by the Company and its Restricted Subsidiaries in the Subsidiary designated as Unrestricted will be
deemed to be an Investment made as of the time of the designation and will reduce the amount available for Restricted Payments under Section 4.07 hereof or under one or more clauses of the definition of Permitted Investments, as determined by the
Company. That designation will only be permitted if the Investment would be permitted at that time and if the Restricted Subsidiary otherwise meets the definition of an Unrestricted Subsidiary. The Board of Directors of the Company may redesignate
any Unrestricted Subsidiary to be a Restricted Subsidiary if that redesignation would not cause a Default. The determination of Fair Market Value for the foregoing purposes will be made by the Board of Directors of the Company, whose determination
will be conclusive. 
  
 Section 4.19 Sale and Leaseback
Transactions. 
  
 (a) The Company will not, and will not
permit any of its Restricted Subsidiaries to, enter into any Sale and Leaseback Transaction (other than a Sale and Leaseback Transaction between the Company and one or more Guarantors or among Guarantors); provided, however, that this
covenant shall not apply to any Sale and Leaseback Transaction entered into by the Company or any of the Guarantors if: 
  
 (1) the Company or such Guarantor could have (A) incurred Indebtedness in an amount equal to the Attributable Debt relating to such Sale
and Leaseback Transaction under the Debt to Cash Flow Ratio test set forth in the first paragraph of Section 4.09 and (B) incurred a Lien to secure such Indebtedness; 
  

 71 

 (2) the Net Proceeds from such Sale and Leaseback Transaction are at least equal to the
Fair Market Value of the property so leased at the time of entering into such arrangement (as determined in any manner approved by the applicable Board of Directors whose determination will be conclusive); and 
  
 (3) the Company applies the proceeds of such transaction in
compliance with the Section 4.10 hereof. 
  
 Section 4.20
Limitation on Capital Expenditures. 
  
 During the fiscal
year ending December 31, 2004, the aggregate amount of the Company’s and its Restricted Subsidiaries’ Capital Expenditures shall not exceed the sum of (a) $50.0 million plus (b) any Net Proceeds from the issue or sale of Equity Interests
(other than Disqualified Stock) of the Company or a cash contribution to the Company’s common equity capital that is completed during such fiscal year (provided that such Net Proceeds have not been used pursuant to clause (3)(B)(i) of Section
4.07(a) hereof). Notwithstanding the preceding sentence, the Company and its Restricted Subsidiaries shall not be permitted to make any Capital Expenditures at any time that the aggregate amount of cash and Cash Equivalents held by the Company and
its Restricted Subsidiaries, after giving effect to such Capital Expenditures, would be less than $20.0 million. 
  
 ARTICLE 5 
  
 SUCCESSORS 
  
 Section 5.01 Merger,
Consolidation or Sale of Assets. 
  
 (a) The Company shall not
(x) consolidate or merge with or into another Person (regardless of whether the Company is the surviving corporation); or (y) sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of the properties or assets of the
Company and its Restricted Subsidiaries, taken as a whole, in one or more related transactions, to another Person; unless: 
  
 (1) either: 
  
 (A) the Company is the surviving corporation; or 
  

(B) the Person formed by or surviving any such consolidation or merger (if other than the Company) or to which such sale, assignment,
transfer, conveyance or other disposition has been made is a corporation organized or existing under the laws of the United States, any state of the United States or the District of Columbia; 
  

 72 

 (2) the Person formed by or surviving any such consolidation or merger (if other than the
Company) or the Person to which such sale, assignment, transfer, conveyance or other disposition has been made assumes all the obligations of the Company under the Notes, this Indenture and the Registration Rights Agreement pursuant to agreements
reasonably satisfactory to the Trustee; 
  
 (3)
immediately after such transaction, no Default or Event of Default exists; 
  
 (4) the Company or the Person formed by or surviving any such consolidation or merger (if other than the Company), or to which such sale, assignment, transfer, conveyance or other disposition has been made will, on
the date of such transaction after giving pro forma effect thereto and any related financing transactions as if the same had occurred at the beginning of the applicable four-quarter period, be permitted to incur at least $1.00 of additional
Indebtedness pursuant to the Debt to Cash Flow Ratio test set forth in Section 4.09(a) hereof; and 
  
 (5) the Company or the surviving entity shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each
stating that such consolidation, merger, sale, assignment, transfer, lease, conveyance or other disposition and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture comply with the applicable
provisions of this Indenture and that all conditions precedent in this Indenture relating to such transaction have been satisfied. 
  
 (b) In addition, the Company will not, directly or indirectly, lease all or substantially all of the properties and assets of it and its Restricted
Subsidiaries taken as a whole, in one or more related transactions, to any other Person. 
  
 (c) This Section 5.01 will not apply to: 
  
 (1) a merger of the Company with an Affiliate solely for the purpose of reincorporating the Company in another jurisdiction; 
  
 (2) a Restructuring; and 
  
 (3) any merger or consolidation, or any sale, transfer, assignment, conveyance, lease or other disposition of assets between or among the
Company and its Restricted Subsidiaries that are Guarantors. 
  
 Section 5.02 Successor Corporation Substituted. 
  
 Upon any merger or consolidation, or any sale, transfer, assignment, conveyance or other disposition of all or substantially all of the properties or assets of the Company and its Restricted Subsidiaries in accordance with Section 5.01
hereof, the successor person formed by the consolidation or into which the Company is merged or to which the sale, transfer, assignment, conveyance or other disposition is made, will succeed to and be substituted for the Company, and may exercise
every right and power of the Company under this Indenture with the same effect as if the successor had been named as the Company herein. When, in connection with such a transaction, the successor assumes all of the obligations of the Company under
this 

  

 73 

 
Indenture, by executing and delivering a supplemental indenture, the Company shall be discharged from those obligations. 
  
 ARTICLE 6 
  
 DEFAULTS AND REMEDIES 
  
 Section 6.01 Events of Default. 
  
 (a) Each of the following is an “Event of Default”: 
  
 (1) default for 30 days in the payment when due of interest on, or Liquidated Damages, if any, with respect to, the Notes; 
  
 (2) default in payment when due (at maturity, upon
redemption or otherwise) of the principal of, or premium, if any, on the Notes; 
  
 (3) failure by the Company or a Guarantor to comply with its obligations under Section 5.01 hereof or to consummate a purchase of Notes
when required pursuant to Sections 4.10 or 4.15 hereof; 
  
 (4) failure by the Company or any of its Restricted Subsidiaries for 30 days after notice from the trustee or the holders of at least 25% in aggregate principal amount of the then outstanding Notes to comply with the
provisions of Sections 4.07 or 4.09 or to comply with the provisions of Sections 4.10 or 4.15 to the extent not described in clause (3) above; 
  
 (5) failure by the Company or any of its Restricted Subsidiaries for 60 days after notice to the Company by the Trustee or the Holders of
at least 25% in aggregate principal amount of the then outstanding Notes to comply with any of the other agreements in this Indenture, the Notes or the Security Documents; 
  
 (6) default under any mortgage, indenture or instrument under which there may be issued or by which there
may be secured or evidenced any Indebtedness for money borrowed by the Company or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the Company or any of its Restricted Subsidiaries) whether such Indebtedness or guarantee
now exists, or is created after the Issue Date, if that default: 
  
 (A) is caused by a failure to pay principal of, or interest or premium, if any, on such Indebtedness prior to the expiration of the grace period provided in such Indebtedness on the date of such default (a
“Payment Default”); or 
  
 (B) results in the acceleration of such Indebtedness prior to its express maturity; 
  
 and, in each case, (i) the principal amount of any such Indebtedness, together with the principal amount of any other such Indebtedness under which there has been a Payment Default or the maturity of which has been so
accelerated, aggregates $10.0 million or more and (ii) such default 

  

 74 

 
shall have not have been remedied, cured or waived by the holders of the relevant Indebtedness within 60 days after such default; 
  
 (7) any final judgment or decree (to the extent not covered
by insurance) for the payment of money in excess of $10.0 million is entered against the Company or any of its Restricted Subsidiaries and is not paid or discharged, and there is any period of 60 consecutive days following entry of such final
judgment or decree during which a stay of enforcement of such final judgment or decree, by reason of pending appeal or otherwise, is not in effect; 
  
 (8) except as permitted by this Indenture, any Subsidiary Guarantee is held in any judicial proceeding to be unenforceable or invalid or
ceases for any reason to be in full force and effect or any Guarantor denies or disaffirms its obligations under its Subsidiary Guarantee; 
  
 (9) the Company, any Significant Subsidiary of the Company or any group of Restricted Subsidiaries that, taken together, would constitute
a Significant Subsidiary: 
  
 (A) commences a
voluntary case under any Bankruptcy Law, 
  
 (B)
consents to the entry of an order for relief against it or them in an involuntary case, 
  
 (C) consents to the appointment of a custodian or receiver of it or them or for all or substantially all of its or their property,

  
 (D) makes a general assignment for the
benefit of its or their creditors, 
  
 (E)
consents to or acquiesces in the institution of a bankruptcy or an insolvency proceeding against it or them, or 
  
 (F) takes any corporate action to authorize or effect any of the foregoing; 
  
 (10) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 

 
 (A) is for relief in an involuntary case against the
Company, any Significant Subsidiary of the Company or any group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary; 
  
 (B) appoints a custodian or receiver of the Company, any Significant Subsidiary of the Company or any group of Restricted Subsidiaries
that, taken together, would constitute a Significant Subsidiary or for all or substantially all of the property of any of the foregoing; or 
  
 (C) orders the liquidation of the Company, any Significant Subsidiary of the Company or any group of Restricted Subsidiaries that, taken
together, would constitute a Significant Subsidiary; and the order or decree remains unstayed and in effect for 60 days; 
  

 75 

 (11) certain events of bankruptcy or insolvency described in this Indenture with respect
to the Company or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary; and 
  
 (12) (A) default by the Company or any Guarantor in the
performance of the Security Documents which could reasonably be expected to adversely affect the enforceability, validity, perfection or priority of the Note Liens or which could reasonably be expected to adversely affect the condition or value of
the Collateral, in each case, taken as a whole, in any material respect, (B) repudiation or disaffirmation by the Company or any of such Guarantors of its or their obligations under the Security Documents or (C) the determination in a judicial
proceeding that all or any material portion of the Security Documents, taken as a whole, are unenforceable or invalid, for any reason, against the Company or any of the Guarantors. 
  
 Section 6.02 Acceleration. 
  

(a) In the case of an Event of Default specified in clause (9) or (10) of Section 6.01 hereof, with respect to the Company or any of its Restricted
Subsidiaries that is a Significant Subsidiary or any group of Restricted Subsidiaries of the Company that, taken together, would constitute a Significant Subsidiary, all outstanding Notes will become due and payable immediately without further
action or notice (subject to applicable law). If any other Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the then outstanding Notes may declare all the Notes to be due and payable
immediately. If an Event of Default occurs and the Notes become or are declared due and payable, the Company will be required to repay 100% of the Accreted Value of the Notes, plus accrued and unpaid interest and Liquidated Damages, if any, thereon
to the date of the Event of Default. 
  
 (b) The Holders of a
majority in aggregate principal amount of the then outstanding Notes by written notice to the Trustee may, on behalf of all of the Holders, rescind an acceleration and its consequences if the rescission would not conflict with any judgment or decree
and if all existing Events of Default (except nonpayment of principal, interest or premium or Liquidated Damages, if any, that has become due solely because of the acceleration) have been cured or waived. 
  
 (c) Upon becoming aware of any Default or Event of Default, the Company is
required to deliver to the Trustee a statement specifying such Default or Event of Default. 
  
 Section 6.03 Other Remedies. 
  
 (a) If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of principal, premium and Liquidated Damages, if any, and interest on the Notes or to enforce the performance of any
provision of the Notes or this Indenture. 
  
 (b) The Trustee may
maintain a proceeding even if it does not possess any of the Notes or does not produce any of them in the proceeding. A delay or omission by the Trustee or 

  

 76 

 
any Holder of a Note in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or
acquiescence in the Event of Default. All remedies are cumulative to the extent permitted by law. 
  
 Section 6.04 Waiver of Past Defaults. 
  
 Holders of not less than a majority in aggregate principal amount of the then outstanding Notes by notice to the Trustee may on behalf of the Holders of
all of the Notes waive an existing Default or Event of Default and its consequences hereunder, except a continuing Default or Event of Default in the payment of the principal of, premium and Liquidated Damages, if any, or interest on, the Notes
(including in connection with an offer to purchase); provided, however, that the Holders of a majority in aggregate principal amount of the then outstanding Notes may rescind an acceleration and its consequences, including any related
payment default that resulted from such acceleration. 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 impair any right consequent thereon. 
  
 Section 6.05 Control by Majority. 
  
 Holders of a majority in principal amount of the then outstanding Notes may direct the time, method and place of conducting any proceeding for exercising any remedy available to the Trustee or exercising any trust or
power conferred on it. However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture that the Trustee determines may be unduly prejudicial to the rights of other Holders of Notes or that may involve the Trustee in
personal liability. 
  
 Section 6.06 Limitation on Suits.

  
 (a) Subject to the provisions of Section 7.01 hereof, in case
an Event of Default occurs and is continuing, the Trustee will be under no obligation to exercise any of the rights or powers under this Indenture at the request or direction of any Holders unless such Holders have offered to the Trustee reasonable
indemnity or security against any loss, liability or expense. Except to enforce the right to receive payment of principal, premium (if any) or interest or Liquidated Damages (if any) when due, no Holder may pursue any remedy with respect to this
Indenture or the Notes unless: 
  
 (1) such
Holder has previously given the Trustee notice that an Event of Default is continuing; 
  
 (2) Holders of at least 25% in aggregate principal amount of the outstanding Notes have requested the Trustee to pursue the remedy;

  
 (3) such Holders have offered the Trustee
reasonable security or indemnity against any loss, liability or expense; 
  
 (4) the Trustee has not complied with such request within 60 days after the receipt thereof and the offer of security or indemnity; and 
  

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 (5) Holders of a majority in aggregate principal amount of the outstanding Notes have not
given the Trustee a direction inconsistent with such request within such 60-day period. 
  

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

  
 Section 6.07 Rights of Holders of Notes to
Receive Payment. 
  
 Notwithstanding any other provision of
this Indenture, the right of any Holder of a Note to receive payment of principal, premium and Liquidated Damages, if any, and interest on the Note, on or after the respective due dates expressed in the Note (including in connection with an offer to
purchase), or to bring suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected without the consent of such Holder. 
  
 Section 6.08 Collection Suit by Trustee. 
  
 If an Event of Default specified in Section 6.01(1) or (2) occurs and is continuing, the Trustee is authorized to recover
judgment in its own name and as trustee of an express trust against the Company for the whole amount of principal of, premium and Liquidated Damages, if any, and interest remaining unpaid on the Notes and interest on overdue principal and, to the
extent lawful, interest and such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 
  
 Section 6.09 Trustee May File Proofs of Claim. 
  
 The Trustee is authorized to file such proofs of claim and other papers or
documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and the Holders of the Notes
allowed in any judicial proceedings relative to the Company (or any other obligor upon the Notes), its creditors or its property and shall be entitled and empowered to collect, receive and distribute any money or other property payable or
deliverable on any such claims and any custodian in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee, and in the event that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07 hereof. To the extent that the
payment of any such compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07 hereof out of the estate in any such proceeding, shall be denied for any reason,
payment of the same shall be secured by a Lien on, and shall be paid out of, any and all distributions, dividends, money, securities and other properties that the Holders may be entitled to receive in such proceeding whether in liquidation or under
any plan of reorganization or arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, 

  

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arrangement, adjustment or composition affecting the Notes or the rights of any Holder, or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding. 
  
 Section 6.10 Priorities.

  
 (a) If the Trustee collects any money pursuant to this Article
6, it shall pay out the money in the following order: 
  
 (1) First: to the Trustee, its agents and attorneys for amounts due under Section 7.07 hereof, including payment of all compensation, expenses and liabilities incurred, and all advances made, by the Trustee and the costs and expenses of
collection; 
  
 (2) Second: to Holders of Notes
for amounts due and unpaid on the Notes for principal, premium and Liquidated Damages, if any, and interest, ratably, without preference or priority of any kind, according to the amounts due and payable on the Notes for principal, premium and
Liquidated Damages, if any and interest, respectively; and 
  
 (3) Third: to the Company or to such party as a court of competent jurisdiction shall direct. 
  
 (b) The Trustee may fix a record date and payment date for any payment to Holders of Notes pursuant to this Section 6.10. 
  
 Section 6.11 Undertaking for Costs. 
  
 In any suit for the enforcement of any right or remedy under this Indenture
or in any suit against the Trustee for any action taken or omitted by it as a Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion
may assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant. This Section 6.11 does not apply to
a suit by the Trustee, a suit by a Holder of a Note pursuant to Section 6.07 hereof, or a suit by Holders of more than 10% in principal amount of the then outstanding Notes. 
  
 ARTICLE 7 
  
 TRUSTEE 
  
 Section 7.01 Duties of Trustee. 
  
 (a) If an Event of Default has occurred and is continuing, the Trustee will exercise such of the rights and powers vested in it by this Indenture, and use
the same degree of care and skill in its exercise, as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs. 
  

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 (b) Except during the continuance of an Event of Default: 
  
 (1) the duties of the Trustee will be determined solely by
the express provisions of this Indenture and the Trustee need perform only those duties that are specifically set forth in this Indenture and no others, and no implied covenants or obligations shall be read into this Indenture against the Trustee;
and 
  
 (2) in the absence of bad faith on its
part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture. However,
the Trustee will examine the certificates and opinions to determine whether or not they conform to the requirements of this Indenture. 
  
 (c) The Trustee may not be relieved from liabilities for its own negligent action, its own negligent failure to act, or its own willful misconduct, except
that: 
  
 (1) this paragraph does not limit the
effect of paragraph (b) of this Section 7.01; 
  
 (2) the Trustee will not be liable for any error of judgment made in good faith by a Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts; and 
  
 (3) the Trustee will not be liable with respect to any
action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 6.05 hereof. 
  
 (d) Whether or not therein expressly so provided, every provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a),
(b), and (c) of this Section 7.01. 
  
 (e) No provision of this
Indenture will require the Trustee to expend or risk its own funds or incur any liability. The Trustee will be under no obligation to exercise any of its rights and powers under this Indenture at the request of any Holders, unless such Holder has
offered to the Trustee security and indemnity satisfactory to it against any loss, liability or expense. 
  
 (f) The Trustee will 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. 
  
 (g) The Trustee shall not be deemed to have notice of any Default or Event of Default with respect to any series of Securities, except Events of Default
under Section 6.01(1) or (2), unless a Trust Officer of the Trustee has actual knowledge thereof or unless written notice of any event which is in fact such a default is received by the Trustee at the Corporate Trust Office of the Trustee, and such
notice references the Securities and this Indenture. 
  

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 Section 7.02 Rights of Trustee. 
  
 (a) The Trustee may conclusively rely upon any document believed by it to be genuine and to have been signed or presented by
the proper Person. The Trustee need not investigate any fact or matter stated in the document. 
  
 (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate or an Opinion of Counsel or both. The Trustee will not be liable for any action it takes or omits to take in good faith
in reliance on such Officers’ Certificate or Opinion of Counsel. The Trustee may consult with counsel and the written advice of such counsel or any Opinion of Counsel will be full and complete authorization and protection from liability in
respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon. 
  
 (c) The Trustee may act through its attorneys and agents and will not be responsible for the misconduct or negligence of any agent appointed with due
care. 
  
 (d) The Trustee will not be liable for any action it
takes or omits to take in good faith that it believes to be authorized or within the rights or powers conferred upon it by this Indenture. 
  
 (e) Unless otherwise specifically provided in this Indenture, any demand, request, direction or notice from the Company will be sufficient if signed by an
Officer of the Company. 
  
 (f) The Trustee will 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 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. 
  
 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 any Affiliate of the Company with the same rights it would have if it were not
Trustee. However, in the event that the Trustee acquires any conflicting interest it must eliminate such conflict within 90 days, apply to the SEC for permission to continue as trustee (if this Indenture has been qualified under the TIA) or resign.
Any Agent may do the same with like rights and duties. The Trustee is also subject to Sections 7.10 and 7.11 hereof. 
  
 Section 7.04 Trustee’s Disclaimer. 
  
 The Trustee will not be responsible for and makes no representation as to the validity or adequacy of this Indenture or the Notes, it shall not be
accountable for the Company’s use of the proceeds from the Notes or any money paid to the Company or upon the Company’s direction under any provision of this Indenture, it will not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee, and it will not be responsible for any statement or recital herein or any statement in the Notes or any other document in connection with the sale of the Notes or pursuant to this Indenture other
than its certificate of authentication. 
  

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 Section 7.05 Notice of Defaults. 
  
 If a Default or Event of Default occurs and is continuing and if it is known to the Trustee, the Trustee will mail to
Holders of Notes a notice of the Default or Event of Default within 90 days after it occurs. Except in the case of a Default or Event of Default in payment of principal of, premium or Liquidated Damages, if any, or interest on, any Note, the Trustee
may withhold the notice if and so long as a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of the Holders of the Notes. 
  
 Section 7.06 Reports by Trustee to Holders of the Notes. 
  
 (a) Within 60 days after each May 15 beginning with the May 15 following the
Issue Date, and for so long as Notes remain outstanding, the Trustee will mail to the Holders of the Notes a brief report dated as of such reporting date that complies with TIA § 313(a) (but if no event described in TIA § 313(a) has
occurred within the twelve months preceding the reporting date, no report need be transmitted). The Trustee also will comply with TIA § 313(b)(2). The Trustee will also transmit by mail all reports as required by TIA § 313(c). 

 
 (b) A copy of each report at the time of its mailing to the Holders of
Notes will be mailed by the Trustee to the Company and filed by the Trustee with the SEC and each stock exchange on which the Notes are listed in accordance with TIA § 313(d). The Company will promptly notify the Trustee when the Notes are
listed on any stock exchange. 
  
 Section 7.07 Compensation and
Indemnity. 
  
 (a) The Company will pay to the Trustee from
time to time reasonable compensation for its acceptance of this Indenture and services hereunder. The Trustee’s compensation will not be limited by any law on compensation of a trustee of an express trust. The Company will reimburse the Trustee
promptly upon request for all reasonable disbursements, advances and expenses incurred or made by it in addition to the compensation for its services. Such expenses will include the reasonable compensation, disbursements and expenses of the
Trustee’s agents and counsel. 
  
 (b) The Company and the
Guarantors will indemnify the Trustee against any and all losses, liabilities or expenses incurred by it arising out of or in connection with the acceptance or administration of its duties under this Indenture, including the costs and expenses of
enforcing this Indenture against the Company and the Guarantors (including this Section 7.07) and defending itself against any claim (whether asserted by the Company, the Guarantors, any Holder or any other Person) or liability in connection with
the exercise or performance of any of its powers or duties hereunder, except to the extent any such loss, liability or expense may be attributable to its negligence or bad faith. The Trustee will notify the Company promptly of any claim for which it
may seek indemnity. Failure by the Trustee to so notify the Company will not relieve the Company or any of the Guarantors of their obligations hereunder. The Company or such Guarantor will defend the claim and the Trustee will cooperate in the
defense. The Trustee may have separate counsel and the Company will pay the reasonable fees and expenses of such counsel. Neither the Company nor any Guarantor need pay for any settlement made without its consent, which consent will not be
unreasonably withheld. 
  

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 (c) The obligations of the Company and the Guarantors under this Section 7.07 will survive the
satisfaction and discharge of this Indenture. 
  
 (d) To secure
the Company’s and the Guarantors’ payment obligations in this Section 7.07, the Trustee will have a Lien prior to the Notes on all money or property held or collected by the Trustee, except that held in trust to pay principal and interest
on particular Notes. Such Lien will survive the satisfaction and discharge of this Indenture. 
  
 (e) When the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.01 (9) or (10) hereof occurs, the expenses and the compensation for the services (including the fees and
expenses of its agents and counsel) are intended to constitute expenses of administration under any Bankruptcy Law. 
  
 (f) The Trustee will comply with the provisions of TIA § 313(b)(2) to the extent applicable. 
  
 Section 7.08 Replacement of Trustee. 
  
 (a) A resignation or removal of the Trustee and appointment of a successor
Trustee will become effective only upon the successor Trustee’s acceptance of appointment as provided in this Section 7.08. 
  
 (b) The Trustee may resign in writing at any time and be discharged from the trust hereby created by so notifying the Company. The Holders of a majority
in principal amount of the then outstanding Notes may remove the Trustee by so notifying the Trustee and the Company in writing. The Company may remove the Trustee if: 
  
 (1) the Trustee fails to comply with Section 7.10 hereof; 
  
 (2) the Trustee is adjudged a bankrupt or an insolvent or an
order for relief is entered with respect to the Trustee under any Bankruptcy Law; 
  
 (3) a custodian or public officer takes charge of the Trustee or its property; or 
  
 (4) the Trustee becomes incapable of acting. 
  
 (c) If the Trustee resigns or is removed or if a vacancy exists in the office
of Trustee for any reason, the Company will promptly appoint a successor Trustee. Within one year after the successor Trustee takes office, the Holders of a majority in principal amount of the then outstanding Notes may appoint a successor Trustee
to replace the successor Trustee appointed by the Company. 
  
 (d)
If a successor Trustee does not take office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company, or the Holders of at least 10% in principal amount of the then outstanding Notes may petition any court
of competent jurisdiction for the appointment of a successor Trustee. 
  

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 (e) If the Trustee, after written request by any Holder who has been a Holder for at least six months,
fails to comply with Section 7.10 hereof, such Holder may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 
  
 (f) A successor Trustee will deliver a written acceptance of its appointment to the retiring Trustee and to the Company.
Thereupon, the resignation or removal of the retiring Trustee will become effective, and the successor Trustee will have all the rights, powers and duties of the Trustee under this Indenture. The successor Trustee will mail a notice of its
succession to Holders. The retiring Trustee will promptly transfer all property held by it as Trustee to the successor Trustee; provided all sums owing to the Trustee hereunder have been paid and subject to the Lien provided for in Section 7.07
hereof. Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the Company’s obligations under Section 7.07 hereof will continue for the benefit of the retiring Trustee. 
  
 Section 7.09 Successor Trustee by Merger, etc. 
  
 If the Trustee consolidates, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation, the successor corporation without any further act will be the successor Trustee. 
  
 Section 7.10 Eligibility; Disqualification. 
  
 (a) There will at all times be a Trustee hereunder that is a corporation organized and doing business under the laws of the United States of America or of
any state thereof that is authorized under such laws to exercise corporate trustee power, that is subject to supervision or examination by federal or state authorities and that has a combined capital and surplus of at least $50.0 million as set
forth in its most recent published annual report of condition. 
  
 (b) This Indenture will always have a Trustee who satisfies the requirements of TIA § 310(a)(1), (2) and (5). The Trustee is subject to TIA § 310(b). 
  
 Section 7.11 Preferential Collection of Claims Against Company. 
  
 The Trustee is subject to TIA § 311(a), excluding any creditor
relationship listed in TIA § 311(b). A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent indicated therein. 
  
 ARTICLE 8 
  
 LEGAL DEFEASANCE AND COVENANT DEFEASANCE 
  
 Section 8.01 Option to Effect Legal Defeasance or Covenant Defeasance. 
  
 The Company may, at the option of its Board of Directors evidenced by a resolution set forth in an Officers’
Certificate, at any time, elect to have either Section 8.02 or 8.03 hereof be applied to all outstanding Notes upon compliance with the conditions set forth below in this Article 8. 
  

 84 

 Section 8.02 Legal Defeasance and Discharge. 
  
 (a) Upon the Company’s exercise under Section 8.01 hereof of the option
applicable to this Section 8.02, the Company and each of the Guarantors will, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be deemed to have been discharged from their obligations with respect to all outstanding
Notes (including the Subsidiary Guarantees) on the date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance means that the Company and the Guarantors will be
deemed to have paid and discharged the entire Indebtedness represented by the outstanding Notes (including the Subsidiary Guarantees), which will thereafter be deemed to be “outstanding” only for the purposes of Section 8.05 hereof and the
other Sections of this Indenture referred to in clauses (1) and (2) below, and to have satisfied all their other obligations under such Notes, the Subsidiary Guarantees and this Indenture (and the Trustee, on demand of and at the expense of the
Company, shall execute proper instruments acknowledging the same), except for the following provisions which will survive until otherwise terminated or discharged hereunder: 
  
 (1) the rights of Holders of outstanding Notes to receive payments in respect of the principal of, or
interest or premium and Liquidated Damages, if any, on such Notes when such payments are due from the trust referred to in Section 8.04 hereof; 
  
 (2) the Company’s obligations with respect to such Notes under Sections 2.04, 2.06, 2.07, 2.10 and 4.02 hereof; 
  
 (3) the rights, powers, trusts, duties and immunities of the
Trustee hereunder and the Company’s and the Guarantors’ obligations in connection therewith; and 
  
 (4) this Article 8. 
  
 (b) Subject to compliance with this Article 8, the Company may exercise its option under this Section 8.02 notwithstanding the prior exercise of its
option under Section 8.03 hereof. 
  
 Section 8.03 Covenant
Defeasance. 
  
 Upon the Company’s exercise under Section
8.01 hereof of the option applicable to this Section 8.03, the Company and each of the Guarantors will, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be released from each of their obligations under the covenants
contained in Sections 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.15, 4.16, 4.17, 4.18, 4.19 and 4.20 hereof and clause (4) of Section 5.01 hereof with respect to the outstanding Notes on and after the date the conditions set forth in Section 8.04
hereof are satisfied (such release and termination hereinafter referred to as “Covenant Defeasance”), and the Notes will thereafter be deemed not “outstanding” for the purposes of any direction, waiver, consent or
declaration or act of Holders (and the consequences of any thereof) in connection with such covenants, but will continue to be deemed “outstanding” for all other purposes hereunder (it being understood that such Notes will not be deemed
outstanding for accounting purposes). For this purpose, Covenant Defeasance means that, with respect to the outstanding Notes and Subsidiary Guarantees, the Company and the Guarantors may omit to comply with and will have no liability in respect of
any term, condition or limitation set forth in any such covenant, whether directly or indirectly, by 

  

 85 

 
reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any
other document and such omission to comply will not constitute a Default or an Event of Default under Section 6.01 hereof, but, except as specified above, the remainder of this Indenture and such Notes and Subsidiary Guarantees will be unaffected
thereby. In addition, upon the Company’s exercise under Section 8.01 hereof of the option applicable to this Section 8.03 hereof, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, Sections 6.01(3) through 6.01(8)
hereof and, only with respect to Subsidiaries of the Company, Section 6.01(9) and Section 6.01(10) hereof will not constitute Events of Default. 
  
 Section 8.04 Conditions to Legal or Covenant Defeasance. 
  

(a) In order to exercise either Legal Defeasance or Covenant Defeasance under either Section 8.02 or 8.03 hereof: 
  
 (1) the Company must irrevocably deposit with the Trustee,
in trust, for the benefit of the Holders of the Notes, cash in U.S. dollars, non-callable Government Securities, or a combination of cash in U.S. dollars and non-callable Government Securities, in such amounts as will be sufficient, in the opinion
of a nationally recognized investment bank, appraisal firm, or firm of independent public accountants to pay the principal of, or interest and premium and Liquidated Damages, if any, on the outstanding Notes on the stated date for payment thereof or
on the applicable redemption date, as the case may be, and the Company must specify whether the Notes are being defeased to such stated date for payment or to a particular redemption date; 
  
 (2) in the case of an election under Section 8.02 hereof,
the Company shall have delivered to the Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming that: 
  
 (A) the Company has received from, or there has been published by, the Internal Revenue Service a ruling; or 
  
 (B) since the Issue Date, there has been a change in the
applicable federal income tax law, 
  
 in either case to the effect that, and
based thereon such Opinion of Counsel will confirm that, the Holders of the outstanding Notes will not recognize income, gain or loss for federal income tax purposes as a result of such Legal Defeasance and will be subject to federal income tax on
the same amounts, in the same manner and at the same times as would have been the case if such Legal Defeasance had not occurred; 
  
 (3) in the case of an election under Section 8.03 hereof, the Company shall have delivered to the Trustee an Opinion of Counsel reasonably
acceptable to the Trustee confirming that the Holders of the outstanding Notes will not recognize income, gain or loss for federal income tax purposes as a result of such Covenant Defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred; 
  

 86 

 (4) no Default or Event of Default shall have occurred and be continuing on the date of
such deposit (other than a Default or Event of Default resulting from the borrowing of funds to be applied to such deposit); 
  
 (5) the deposit will not result in a breach or violation of, or constitute a default under, any other instrument to which the Company or
any Guarantor is a party or by which the Company or any Guarantor is bound; 
  
 (6) such Legal Defeasance or Covenant Defeasance shall not result in a breach or violation of, or constitute a default under, any material agreement or instrument (other than this Indenture) to which the Company or
any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound; 
  
 (7) the Company shall have delivered to the Trustee an Officers’ Certificate stating that the deposit was not made by the Company
with the intent of preferring the Holders of Notes over the other creditors of the Company with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company or others; 
  
 (8) the Company shall have delivered to the Trustee an
Officers’ Certificate, stating that all conditions precedent set forth in clauses (1) through (7) of this Section 8.04 have been complied with; and 
  
 (9) the Company must deliver to the Trustee an Opinion of Counsel (which Opinion of Counsel may be subject to customary assumptions,
qualifications and exclusions), stating that all conditions precedent set forth in clauses (2), (3) and (5) of this Section 8.04 have been complied with; provided that the Opinion of Counsel with respect to clause (5) of this Section 8.04 may
be to the knowledge of such counsel. 
  
 Section 8.05 Deposited
Money and Government Securities to be Held in Trust; Other Miscellaneous Provisions. 
  
 (a) Subject to Section 8.06 hereof, all money and non-callable Government Securities (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section
8.05, the “Trustee”) pursuant to Section 8.04 hereof in respect of the outstanding Notes will be held in trust and applied by the Trustee, in accordance with the provisions of such Notes and this Indenture, to the payment,
either directly or through any Paying Agent (including the Company acting as Paying Agent) as the Trustee may determine, to the Holders of such Notes of all sums due and to become due thereon in respect of principal, premium and Liquidated Damages,
if any, and interest, but such money need not be segregated from other funds except to the extent required by law. 
  
 (b) The Company will pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the cash or non-callable Government
Securities deposited pursuant to Section 8.04 hereof or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of the outstanding Notes. 
  

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 (c) Notwithstanding anything in this Article 8 to the contrary, the Trustee will deliver or pay to the
Company from time to time upon the request of the Company any money or non-callable Government Securities held by it as provided in Section 8.04 hereof which, in the opinion of a nationally recognized firm of independent public accountants expressed
in a written certification thereof delivered to the Trustee (which may be the opinion delivered under Section 8.04(1) hereof), are in excess of the amount thereof that would then be required to be deposited to effect an equivalent Legal Defeasance
or Covenant Defeasance. 
  
 Section 8.06 Repayment to
Company. 
  
 Any money deposited with the Trustee or any
Paying Agent, or then held by the Company, in trust for the payment of the principal of, premium or Liquidated Damages, if any, or interest on any Note and remaining unclaimed for two years after such principal, premium or Liquidated Damages, if
any, or interest has become due and payable shall be paid to the Company on its request or (if then held by the Company) will be discharged from such trust; and the Holder of such Note will thereafter be permitted to look only to the Company for
payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, will thereupon cease; provided, however, that the Trustee or such Paying
Agent, before being required to make any such repayment, may at the expense of the Company cause to be published once, in the New York Times and The Wall Street Journal (national edition), notice that such money remains unclaimed and that, after a
date specified therein, which will not be less than 30 days from the date of such notification or publication, any unclaimed balance of such money then remaining will be repaid to the Company. 
  
 Section 8.07 Reinstatement. 
  
 If the Trustee or Paying Agent is unable to apply any United States dollars
or non-callable Government Securities in accordance with Section 8.02 or 8.03 hereof, as the case may be, by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application,
then the Company’s and the Guarantors’ obligations under this Indenture and the Notes and the Subsidiary Guarantees will be revived and reinstated as though no deposit had occurred pursuant to Section 8.02 or 8.03 hereof until such time as
the Trustee or Paying Agent is permitted to apply all such money in accordance with Section 8.02 or 8.03 hereof, as the case may be; provided, however, that, if the Company makes any payment of principal of, premium or Liquidated
Damages, if any, or interest on any Note following the reinstatement of its obligations, the Company will be subrogated to the rights of the Holders of such Notes to receive such payment from the money held by the Trustee or Paying Agent.

  

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 ARTICLE 9 
  

AMENDMENT, SUPPLEMENT AND WAIVER 
  
 Section 9.01 Without Consent of Holders of Notes. 
  
 (a) Notwithstanding Section 9.02 of this Indenture, the Company, the Guarantors and the Trustee may amend or supplement this Indenture, the Subsidiary
Guarantees or the Notes without the consent of any Holder of Notes: 
  
 (1) to cure any ambiguity, defect or inconsistency; 
  
 (2) to provide for uncertificated Notes in addition to or in place of certificated Notes, or to alter the provisions of this indenture
concerning issuing temporary notes, registration of notes, mutilated, destroyed, lost or stolen notes and the maintenance of an office or agency for payment and money for security payments held in trust in a manner that does not adversely affect any
holder; 
  
 (3) to provide for the assumption of
the Company’s or a Guarantor’s obligations to Holders of the Notes and Subsidiary Guarantees in the case of a merger or consolidation or sale of all or substantially all of the Company’s or such Guarantor’s assets, as applicable;

  
 (4) to effect the release of a Guarantor from
its Subsidiary Guarantee and the termination of such Subsidiary Guarantee, all in accordance with the provisions of this Indenture governing such release and termination; 
  
 (5) to add any Subsidiary Guarantees or to add any additional assets to the Collateral; 
  
 (6) to reflect the grant of Liens on the Collateral for the
benefit of an additional secured party, to the extent that such Indebtedness and the Lien securing such Indebtedness is permitted by the terms of this Indenture; 
  
 (7) to release Collateral from the Lien of this Indenture and the Security Documents when permitted or
required by this Indenture or applicable Security Document; 
  
 (8) to make any change that would provide any additional rights or benefits to the Holders of Notes or that does not adversely affect the legal rights hereunder of any such Holder; 
  
 (9) to comply with requirements of the SEC in order to
effect or maintain the qualification of this Indenture under the TIA; 
  
 (10) to conform the text of this Indenture or the Notes to any provision of the “Description of Notes” section of the Company’s Offering Memorandum dated March 9, 2004, relating to the initial offering
of the Notes, to the extent that such provision in that “Description 

  

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of Notes” was intended to be a verbatim recitation of a provision of this Indenture, the Subsidiary Guarantees or the Notes; or 
  
 (11) to provide for a successor Trustee in accordance with
the provisions hereof. 
  
 (b) Upon the request of the Company
accompanied by a resolution of its Board of Directors authorizing the execution of any such amended or supplemental indenture, and upon receipt by the Trustee of the documents described in Section 7.02 hereof, the Trustee will join with the Company
and the Guarantors in the execution of any amended or supplemental indenture authorized or permitted by the terms of this Indenture and to make any further appropriate agreements and stipulations that may be therein contained, but the Trustee will
not be obligated to enter into such amended or supplemental indenture that affects its own rights, duties or immunities under this Indenture or otherwise. 
  
 Section 9.02 With Consent of Holders of Notes. 
  
 (a) Except as provided below in this Section 9.02, the Company and the Trustee may amend or supplement this Indenture (including, without limitation,
Section 4.10 and 4.15 hereof), the Subsidiary Guarantees and the Notes with the consent of the Holders of at least a majority in principal amount of the Notes (including, without limitation, Additional Notes, if any) then outstanding voting as a
single class (including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for Notes), and, subject to Sections 6.04 and 6.07 hereof, any existing Default or Event of Default or compliance with
any provision of this Indenture, the Subsidiary Guarantees or the Notes may be waived with the consent of the Holders of at least a majority in principal amount of the then outstanding Notes (including consents obtained in connection with a purchase
of, or tender offer or exchange offer for, Notes). 
  
 (b) Upon
the request of the Company accompanied by a resolution of its Board of Directors authorizing the execution of any such amended or supplemental indenture, and upon the filing with the Trustee of evidence satisfactory to the Trustee of the consent of
the Holders of Notes as aforesaid, and upon receipt by the Trustee of the documents described in Section 7.02 hereof, the Trustee will join with the Company and the Guarantors in the execution of such amended or supplemental indenture unless such
amended or supplemental indenture directly affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but will not be obligated to, enter into such amended or
supplemental Indenture. 
  
 (c) It is not be necessary for the
consent of the Holders of Notes under this Section 9.02 to approve the particular form of any proposed amendment or waiver, but it is sufficient if such consent approves the substance of the proposed amendment or waiver. 
  
 (d) After an amendment, supplement or waiver under this Section 9.02 becomes
effective, the Company will mail to the Holders of Notes affected thereby a notice briefly describing the amendment, supplement or waiver. Any failure of the Company to mail such notice, or any defect therein, will not, however, in any way impair or
affect the validity of any 

  

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such amended or supplemental indenture or waiver. Subject to Sections 6.04 and 6.07 hereof, the Holders of a majority in aggregate principal amount of the
Notes then outstanding voting as a single class may waive compliance in a particular instance by the Company with any provision of this Indenture, the Notes, or the Subsidiary Guarantees. However, without the consent of each Holder affected, an
amendment or waiver under this Section 9.02 may not (with respect to any Notes held by a non-consenting Holder): 
  
 (1) reduce the principal amount of Notes whose Holders must consent to an amendment, supplement or waiver; 
  
 (2) reduce the principal of or change the fixed maturity of
any Note or alter any of the provisions with respect to the redemption of the Notes (other than with regard to Sections 4.10 and 4.15 hereof); 
  
 (3) reduce the rate of or change the time for payment of interest, including default interest, on any Note; 
  
 (4) waive a Default or Event of Default in the payment of
principal of or premium or Liquidated Damages, if any, or interest on the Notes (except a rescission of acceleration of the Notes by the Holders of at least a majority in aggregate principal amount of the then outstanding Notes and a waiver of the
payment default that resulted from such acceleration); 
  
 (5) make any Note payable in money other than that stated in the Notes; 
  
 (6) make any change in the provisions of this Indenture relating to waivers of past Defaults or the rights of Holders of Notes to receive
payments of principal of, or interest or premium or Liquidated Damages, if any, on the Notes (other than with regard to Sections 4.10 and 4.15 hereof); 
  
 (7) waive a redemption payment with respect to any Note (other than with regard to Sections 4.10 and 4.15 hereof); 
  
 (8) release any Guarantor from any of its obligations under
its Subsidiary Guarantee or this Indenture, except in accordance with the terms of this Indenture; 
  
 (9) release all or substantially all of the Collateral from the Liens created by the Security Documents except as specifically provided by
this Indenture and the Security Documents; or 
  
 (10) make any change to this Article 9. 
  
 Section 9.03
Compliance with Trust Indenture Act. 
  
 Every amendment or
supplement to this Indenture or the Notes will be set forth in a amended or supplemental indenture that complies with the TIA as then in effect. 
  

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 Section 9.04 Revocation and Effect of Consents. 
  
 (a) Until an amendment, supplement or waiver becomes effective, a consent to
it by a Holder of a Note is a continuing consent by the Holder of a Note and every subsequent Holder of a Note or portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notation of the consent is not made on any
Note. However, any such Holder of a Note or subsequent Holder of a Note may revoke the consent as to its Note if the Trustee receives written notice of revocation before the date the waiver, supplement or amendment becomes effective. An amendment,
supplement or waiver becomes effective in accordance with its terms and thereafter binds every Holder. 
  
 (b) The Company may fix a record date for determining which Holders must consent to such amendment, supplement or waiver. If the Company fixes a record
date, the record date shall be fixed at (1) the later of 30 days prior to the first solicitation of such consent or the date of the most recent list of Holders furnished to the Trustee prior to such solicitation pursuant to Section 2.05, or (2) such
other date as the Company shall designate. 
  
 Section 9.05
Notation on or Exchange of Notes. 
  
 (a) The Trustee may
place an appropriate notation about an amendment, supplement or waiver on any Note thereafter authenticated. The Company in exchange for all Notes may issue and the Trustee shall, upon receipt of an Authentication Order, authenticate new Notes that
reflect the amendment, supplement or waiver. 
  
 (b) Failure to
make the appropriate notation or issue a new Note will not affect the validity and effect of such amendment, supplement or waiver. 
  
 Section 9.06 Trustee to Sign Amendments, etc. 
  
 The Trustee will sign any amended or supplemental indenture authorized pursuant to this Article 9 if the amendment or supplement does not adversely affect
the rights, duties, liabilities or immunities of the Trustee. The Company may not sign an amended or supplemental indenture until the Board of Directors approves it. In executing any amended or supplemental indenture, the Trustee will be entitled to
receive and (subject to Section 7.01 hereof) will be fully protected in relying upon, in addition to the documents required by Section 13.04 hereof, an Officers’ Certificate and an Opinion of Counsel stating that the execution of such amended
or supplemental indenture is authorized or permitted by this Indenture. 
  
 ARTICLE 10 
  
 SUBSIDIARY GUARANTEES

  
 Section 10.01 Guarantee. 
  
 (a) Subject to this Article 10, each of the Guarantors hereby, jointly and
severally, unconditionally guarantees to each Holder of a Note authenticated and delivered by the Trustee 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: 
  
 (1) the principal of, premium and Liquidated Damages, if any, and interest on the Notes will be promptly paid in full when due, whether at maturity, by acceleration, redemption or otherwise, and interest on the
overdue principal of and interest 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 
  

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 (2) in case of any extension of time of payment or renewal of any Notes or any of such
other obligations, that 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. 
  
 (b) Failing payment when due of any amount so guaranteed or any performance
so guaranteed for whatever reason, the Guarantors will be jointly and severally obligated to pay the same immediately. Each Guarantor agrees that this is a guarantee of payment and not a guarantee of collection. 
  
 (c) The Guarantors hereby agree that their obligations hereunder are
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 which might otherwise constitute a legal or equitable discharge or defense of a guarantor. To the extent permitted by applicable law,
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 Subsidiary Guarantee will not be discharged except by complete performance of the obligations contained in the Notes and this Indenture. 
  
 (d) If any Holder or the Trustee is required by any court or otherwise to return to the Company, the Guarantors or any
custodian, trustee, liquidator or other similar official acting in relation to either the Company or the Guarantors, any amount paid by either to the Trustee or such Holder, this Subsidiary Guarantee, to the extent theretofore discharged, will be
reinstated in full force and effect. 
  
 (e) Each Guarantor agrees
that it will 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, to the extent
permitted by applicable law, as between the Guarantors, on the one hand, and the Holders and the Trustee, on the other hand, (1) the maturity of the obligations guaranteed hereby may be accelerated as provided in Article 6 hereof for the purposes of
this Subsidiary Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (2) in the event of any declaration of acceleration of such obligations as
provided in Article 6 hereof, such obligations (regardless of whether due and payable) will forthwith become due and payable by the Guarantors for the purpose of this Subsidiary Guarantee. The Guarantors will have the right to seek contribution from
any non-paying 

  

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Guarantor so long as the exercise of such right does not impair the rights of the Holders under the Subsidiary Guarantee. 
  
 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 the Subsidiary Guarantee of such Guarantor not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer
Act or any similar federal or state law to the extent applicable to any Subsidiary Guarantee. To effectuate the foregoing intention, the Trustee, the Holders and the Guarantors hereby irrevocably agree that the obligations of such Guarantor will be
limited to the maximum amount that will, after giving effect to such maximum amount and all other contingent and fixed liabilities of such Guarantor that are relevant under such laws, and after giving effect to any collections from, rights to
receive contribution from or payments made by or on behalf of any other Guarantor in respect of the obligations of such other Guarantor under this Article 10, result in the obligations of such Guarantor under its Subsidiary Guarantee not
constituting a fraudulent transfer or conveyance. 
  
 Section
10.03 Execution and Delivery of Subsidiary Guarantee Notation. 
  
 (a) To evidence its Subsidiary Guarantee set forth in Section 10.01 hereof, each Guarantor hereby agrees that a notation of such Subsidiary Guarantee substantially in the form attached as Exhibit E hereto will be endorsed by an
Officer of such Guarantor on each Note authenticated and delivered by the Trustee and that this Indenture will be executed on behalf of such Guarantor by one of its Officers. 
  
 (b) Each Guarantor hereby agrees that its Subsidiary Guarantee set forth in Section 10.01 hereof will remain in full force
and effect notwithstanding any failure to endorse on each Note a notation of such Subsidiary Guarantee. 
  
 (c) If an Officer whose signature is on this Indenture or on the Subsidiary Guarantee no longer holds that office at the time the Trustee authenticates
the Note on which a Subsidiary Guarantee is endorsed, the Subsidiary Guarantee will be valid nevertheless. 
  
 (d) The delivery of any Note by the Trustee, after the authentication thereof hereunder, will constitute due delivery of the Subsidiary Guarantee set
forth in this Indenture on behalf of the Guarantors. 
  
 (e) In
the event that the Company or any of its Restricted Subsidiaries creates or acquires any Domestic Restricted Subsidiary after the Issue Date, if required by Section 4.17 hereof, then that newly acquired or created Domestic Restricted Subsidiary will
comply with the provisions of Section 4.17 hereof and this Article 10, to the extent applicable. 
  
 Section 10.04 Guarantors May Consolidate, etc., on Certain Terms. 
  
 (a) Except as otherwise provided in Section 10.05 hereof, no Guarantor may sell or otherwise dispose of all or substantially
all of its assets to, or consolidate with or merge with or 

  

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into (regardless of whether such Guarantor is the surviving Person) another Person, other than the Company or another Guarantor, unless: 
  
 (1) immediately after giving effect to such transaction, no
Default or Event of Default exists; and 
  
 (2)
either: 
  
 (A) subject to Section 10.05 hereof,
if it is not such Guarantor, the Person acquiring the property in any such sale or disposition or the Person formed by or surviving any such consolidation or merger assumes all the obligations of that Guarantor under this Indenture, the Subsidiary
Guarantee and the Registration Rights Agreement (on the terms set forth herein or therein) pursuant to a supplemental indenture in form and substance reasonably satisfactory to the Trustee, in which case the Subsidiary Guarantee of such Guarantor
will be released as contemplated by Section 10.05 hereof; or 
  
 (B) the Net Proceeds of such sale or other disposition are applied in accordance with the applicable provisions of this Indenture, including without limitation, Section 4.10 hereof. 
  
 (b) In case of any such consolidation, merger, sale or conveyance and upon
the assumption by the successor Person, by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the Subsidiary Guarantee endorsed upon the Notes and the due and punctual performance of all of the
covenants and conditions of this Indenture to be performed by the Guarantor, such successor Person will succeed to and be substituted for the Guarantor with the same effect as if it had been named herein as a Guarantor. Such successor Person
thereupon may cause to be signed any or all of the Subsidiary Guarantees to be endorsed upon all of the Notes issuable hereunder which theretofore shall not have been signed by the Company and delivered to the Trustee. All the Subsidiary Guarantees
so issued will in all respects have the same legal rank and benefit under this Indenture as the Subsidiary Guarantees theretofore and thereafter issued in accordance with the terms of this Indenture as though all of such Subsidiary Guarantees had
been issued at the date of the execution hereof. 
  
 (c) Except as
set forth in Articles 4 and 5 hereof, and notwithstanding Section 10.04(a) and Section 10.04(b), nothing contained in this Indenture or in any of the Notes will prevent any consolidation or merger of a Guarantor with or into the Company or another
Guarantor, or will prevent any sale or conveyance of the property of a Guarantor as an entirety or substantially as an entirety to the Company or another Guarantor. 
  
 Section 10.05 Releases. 
  
 (a) In the event of any sale or other disposition of all or substantially all of the assets of any Guarantor, by way of merger, consolidation or
otherwise, or a sale or other disposition of all of the Capital Stock of any Guarantor, in each case to a Person that is not (either before or after giving effect to such transactions) the Company or a Restricted Subsidiary of the Company, then such
Guarantor (in the event of a sale or other disposition, by way of merger, consolidation or otherwise, of all of the Capital Stock of such Guarantor) or the corporation acquiring the property (in the event of a sale or other disposition of all or
substantially all of the assets of such 

  

 95 

 
Guarantor) will be released and relieved of any obligations under its Subsidiary Guarantee; provided that the Net Proceeds of such sale or other disposition
are applied in accordance with the applicable provisions of this Indenture, including without limitation Section 4.10 hereof. Upon delivery by the Company to the Trustee of an Officers’ Certificate and an Opinion of Counsel to the effect that
such sale or other disposition was made by the Company in accordance with the provisions of this Indenture, including without limitation Section 4.10 hereof, the Trustee will execute any documents reasonably required in order to evidence the release
of any Guarantor from its obligations under its Subsidiary Guarantee. 
  
 (b) Upon designation of any Guarantor as an Unrestricted Subsidiary in accordance with the terms of this Indenture, such Guarantor will be released and relieved of any obligations under its Subsidiary Guarantee. 
  
 (c) Upon Legal Defeasance in accordance with Article 8 hereof or satisfaction
and discharge of this Indenture in accordance with Article 12 hereof, each Guarantor will be released and relieved of any obligations under its Subsidiary Guarantee. 
  
 (d) Any Guarantor not released from its obligations under its Subsidiary Guarantee as provided in this Section 10.05 will
remain liable for the full amount of principal of and interest, premium and Liquidated Damages, if any, on the Notes and for the other obligations of any Guarantor under this Indenture as provided in this Article 10. 
  
 ARTICLE 11 
  
 SECURITY DOCUMENTS 
  
 Section 11.01 Security Documents. 
  
 (a) The due and punctual payment of the aggregate principal amount of,
interest, premium and Liquidated Damages, if any, on the Notes when and as the same shall be due and payable, whether on an interest payment date, at maturity, by acceleration, repurchase, redemption or otherwise, and interest on the overdue
principal of and interest (to the extent permitted by law) on the Notes and performance of all other Note Obligations of the Company and the Guarantors to the Holders of Notes or the Trustee under this Indenture, the Notes and the Guarantees,
according to the terms hereunder or thereunder, shall be secured by a first priority security interest in the Collateral as provided in the Security Documents. Each Holder of Notes, by its acceptance thereof, consents and agrees to the terms of the
Security Documents (including, without limitation, the provisions providing for foreclosure and release of Collateral) as the same may be in effect or may be amended from time to time in accordance with their terms and authorizes and directs the
Trustee and the Collateral Agent to enter into the Security Documents and to perform its obligations and exercise its rights thereunder in accordance therewith. The Company and each of the Guarantors shall deliver to the Trustee copies of all
documents delivered to the Collateral Agent pursuant to the Security Documents, and shall do or cause to be done all such acts and things as may be required by the provisions of the Security Documents, to assure and confirm to the Trustee and the
Collateral Agent the security interest in the Collateral contemplated by the Security Documents or any part thereof, as from time to time constituted, so as to render the same available for the security and benefit of this Indenture and of 

  

 96 

 
the Notes secured by the Security Documents, according to the intent and purposes therein expressed. The Liens securing the Note Obligations will be created
pursuant to one or more of the Security Documents in favor of the Collateral Agent for the benefit of all present and future holders of Note Obligations. The Company will, and will cause each of the Guarantors to, do or cause to be done all acts and
things which may be required, or which the applicable Collateral Agent from time to time may reasonably request to assure and confirm that the applicable Collateral Agent holds, for the benefit of the holders of Note Obligations, duly created,
enforceable and perfected Liens upon the Collateral, in each case, as contemplated by, and as and to the extent required by, this Indenture and the Security Documents. 
  
 (b) The Company and each of the Guarantors shall take, upon request of the Trustee, any and all actions required under the
Security Documents to create and maintain, as security for the Obligations of the Company and each of the Guarantors hereunder, under this Indenture Guarantees and under certain other Indebtedness, as applicable, a valid and enforceable perfected
first priority Lien in and on all the Collateral, in favor of the Collateral Agent for the benefit of the Holders of Notes and the holders of such other Indebtedness, superior to and prior to the rights of all third Persons and subject to no Liens
other than Permitted Liens. 
  
 (c) The definition of
“Excluded Collateral” contains a list of property and assets expressly excluded from the Collateral. 
  
 (d) The Company will, and will cause each of the Guarantors to, do or cause to be done all acts and things which may be required, or which the Collateral
Agent from time to time may reasonably request, to assure and confirm that the Collateral Agent holds, for the benefit of the holders of Note Obligations, duly created, enforceable and perfected Liens upon the Collateral as contemplated and to the
extent required by this Indenture and the Security Documents; provided that, with respect to Liens on deposit accounts, security intermediary accounts or Collateral held by bailees, each as defined in Article 9 of the New York Uniform Commercial
Code, the Company and the Guarantors will be required to use their commercially reasonable best efforts to perfect the Liens on such deposit accounts, security intermediary accounts or Collateral held by bailees. 
  
 Section 11.02 Creation of Security Interest on Collateral.
 
  
 The Company will, and will cause its Restricted
Subsidiaries to, deliver to the Collateral Agent as soon as practical, but in any no event later than 90 days after the Closing Date, Security Documents in form and substance satisfactory to the Collateral Agent, together with (i) satisfactory
evidence that all filings in all filing or recording offices necessary or desirable to ensure that the Collateral Agent has a valid, first and subsisting Lien on all of the Collateral have been made, (ii) evidence that all filing and recording taxes
and fees have been paid and (iii) opinions or certificates as required by the Collateral Agent. Notwithstanding the foregoing, the Collateral Agent may extend the date for compliance with this covenant or waive such compliance with respect to any
assets (forming part of the Collateral) the aggregate book value of which does not exceed 5% of the book value of the Company’s total consolidated assets as of the end of the last quarter for which financial statements have been prepared and
are included in this offering memorandum. 
  

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 Section 11.03 Collateral Agent. 
  
 (a) The Secured Parties hereby irrevocably designate and appoint U.S. Bank National Association, the Trustee, as the
Collateral Agent under this Indenture and the Security Documents, and hereby authorizes the Collateral Agent to execute and enter into the Security Documents and all other instruments relating to the Security Documents. The Collateral Agent will (1)
take action on their behalf and exercise such powers and use such discretion as are expressly permitted hereunder and under the Security Documents and all instruments relating hereto and thereto and (2) exercise such powers and perform such duties
as are, in each case expressly delegated to the Collateral Agent by the terms hereof and thereof and together with such other powers and discretion as are reasonably incidental hereto and thereto. 
  
 (b) Neither the trustee nor the Collateral Agent, nor any of their respective
officers, directors, employees, attorneys or agents, will be responsible for the existence, genuineness, value or protection of any Collateral, for the legality, enforceability, effectiveness or sufficiency of the Security Documents, for the
creation, perfection, priority, sufficiency or protection of any Lien or for any failure to demand, collect, foreclose or realize upon or otherwise enforce any of the Liens or Security Documents or for any delay in doing so. 
  
 (c) The Collateral Agent may exercise its powers and execute any of its
duties under this Indenture and the Security Documents by or through employees, agents or attorneys-in-fact and shall be entitled to take and to rely on advice of counsel. The Collateral Agent shall not be responsible for the negligence or
misconduct of any agents or attorney-in-fact selected by it with reasonable care. All reasonable fees and expenses of such Persons shall be borne by the Company. 
  
 (d) The Collateral Agent shall be entitled to conclusively rely, and shall be fully protected and shall incur no liability
in acting and relying, upon any writing, resolution, notice, consent, certificate, affidavit, letter, telecopy, statement, order or other document reasonably believed by it to be genuine and correct and to have been signed, sent or made by the
proper Person or Persons and upon advice of its legal counsel or upon advice of independent accountants and other experts selected by the Collateral Agent. The Collateral Agent shall be fully justified in not acting until it has received the
requisite authority from the Secured Parties. 
  
 (e) The
Collateral Agent shall not be deemed to have actual, constructive, direct or indirect knowledge or notice of the occurrence of any Event of Default unless and until the Collateral Agent has received written notice from the Secured Parties describing
such Event of Default and stating that is a “notice of event of default,” setting forth in reasonable detail the facts and circumstances thereof and stating that the Collateral Agent may rely solely on such notice without further inquiry;
provided that if the Collateral Agent is a party to the Security Document, then the Collateral Agent shall be deemed to have actual knowledge and notice of the Event of Default. 
  
 (f) Each Secured Party expressly acknowledges that, except as expressly set forth in this Indenture, neither the Collateral
Agent nor any of the Collateral Agent’s officers, directors, employees, agents, attorneys-in-fact or Affiliates has made any representations or warranties to it and that no act by the Collateral Agent hereafter taken shall be deemed to
constitute any 

  

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representation or warranty by the Collateral Agent to any Secured Party. Each Secured Party represents that it has, independently and without reliance on the
Collateral Agent, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under any Security Document and this Indenture.

  
 (g) U.S. Bank National Association and its Affiliates may make
loans to and generally engage in any kind of business with the Company as though such Person was not the Collateral Agent hereunder and without any duty to account therefor to the Secured Parties. With respect to any debt issued to it and advances
made by it under a Security Document, if any, U.S. Bank National Association shall have the same rights and powers under this Indenture as any Secured Party and may exercise the same as though it were not the Collateral Agent, and the terms
“Secured Party” and “Secured Parties” shall include U.S. Bank National Association in its individual capacity. Any person which succeeds U.S. Bank National Association as Collateral Agent shall have the same rights as U.S. Bank
National Association under this Section 11.03(g) with respect to debt issued to it and advances made by it under any Security Document. 
  
 (h) (1) The Collateral Agent may resign at any time upon 60 days’ notice to the Secured Parties and the Company and may be removed at any time, with
or without cause, by the Required Secured Parties by written notice delivered to the Company, the Collateral Agent and the Secured Parties. After any resignation or removal hereunder of the Collateral Agent, the provisions of this Section 11.03(h)
shall continue to inure to its benefit as to any actions taken or omitted to be taken by it in connection with its role as Collateral Agent hereunder while it was the Collateral Agent under this Indenture. 
  
 (2) Upon receiving notice of any such resignation or
removal, a successor Collateral Agent shall be appointed by the Required Secured Parties; provided, however, that such successor Collateral Agent shall be (i) a bank or trust company having a combined capital and surplus of at least
$100,000,000, subject to supervision or examination by a federal or state banking authority; and (ii) authorized under the laws of the jurisdiction of its incorporation or organization to assume the functions of the Collateral Agent. If the
appointment of such successor shall not have become effective (as hereafter provided) (x) within such 60 day period after the Collateral Agent’s notice of resignation or (y) upon removal of the Collateral Agent, then the Collateral Agent or any
Secured Party may, at the expense of the Secured Parties, petition a court of competent jurisdiction for the appointment of a successor Collateral Agent. Such court shall, after such notice as it may deem proper, appoint a successor Collateral Agent
meeting the qualifications specified in this Section 11.03(h). The Secured Parties hereby consent to such petition and appointment so long as such criteria are met. 
  
 (3) The resignation or removal of a Collateral Agent and the appointment of a successor Collateral Agent
pursuant to this Section 11.03(h) shall become effective upon (i) the acceptance of the appointment as Collateral Agent hereunder by a successor Collateral Agent and (ii) the execution and delivery of such documents or instruments as are necessary
to transfer to such Collateral Agent the rights and obligations of the Collateral Agent under the Security Documents, including, without limitation, the delivery and recordation of all amendments, instruments, deed of trusts, financing statements,
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hereunder and under the Security Documents. Copies of each such document or instrument shall be delivered to all Secured Parties. Upon such effective
appointment, the successor Collateral Agent shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Collateral Agent and the retiring Collateral Agent shall be discharged from its rights, powers,
privileges and duties under this Indenture and the Security Documents; provided, however, that the provisions of this Section 11.03(h) shall continue to inure to the retiring Collateral Agent’s benefit as to any actions taken or
omitted to be taken by it in connection with its role as Collateral Agent hereunder while it was the Collateral Agent under this Indenture. 
  
 (i) The duties and obligations of the Collateral Agent are only those set forth in this Indenture and in the Security Documents. 
  
 (j) If the Collateral Agent has been notified in a writing conforming to the
requirements of Section 11.03(l) by any Secured Party that an Event of Default has occurred, the Collateral Agent shall furnish to the Secured Parties and the Company a copy of such written notice. The failure of any Secured Party having knowledge
of the occurrence of an Event of Default to notify the Collateral Agent or any Secured Party of such occurrence, however, does not constitute a waiver of such Event of Default by the Secured Parties. Upon receipt of a notice conforming to the
requirements of Section 11.03(l) from a Secured Party of the occurrence of an Event of Default, the Collateral Agent shall (in addition to the action required by the first sentence of this Section 11.03(j)) promptly (and in any event no later than
ten Business Days after receipt of such notice) issue a notice of default (a “Notice of Default”) to all Secured Parties. Such Notice of Default shall indicate the nature of such Event of Default. The Notice of Default may
request instructions from the Secured Parties and shall specify the date on which responses are due in order to be timely within Section 11.03(l) below. 
  
 (k) Except as otherwise provided in Section 11.03(l) and Section 11.03(m) below, the Collateral Agent shall take only such actions and exercise only such
remedies under the Security Documents as are directed in written instructions delivered to the Collateral Agent as required under Section 11.03(l) below and signed by the Required Secured Parties. In the event that the Collateral Agent shall
determine in good faith that taking the actions specified in such instructions is contrary to law, it may refrain (and shall be fully protected in so refraining) from taking such action and shall promptly give notice of such fact to each of the
Secured Parties. In the event that instructions received by the Collateral Agent are in its good faith judgment ambiguous or conflict with other instructions received by the Collateral Agent, the Collateral Agent (1) shall promptly notify the
Secured Parties of such ambiguity or conflict and request clarifying instructions, and (2) may either (i) delay taking any such action or exercising any such remedy pending the receipt of such clarifying instructions (and shall be fully protected in
so delaying) or (ii) take such actions as it is entitled to take under Section 11.03(m), provided that in taking such actions the Collateral Agent shall act with such care as a reasonably prudent person accords his own property. 

 

 100 

 (l) Notwithstanding anything express or implied to the contrary in the Security Documents: 
  
 (1) remedies and other actions to be taken under the
Security Documents or applicable law with respect to the Collateral shall be directed in writing by the Required Secured Parties; and 
  
 (2) if any Secured Party does not respond in a timely manner to any notice (including, without limitation, a Notice of Default) from the
Collateral Agent or request for instructions within the time period specified by the Collateral Agent in such notice or request for instructions (which shall be a minimum of five Business Days), the Secured Obligations held by such Secured Party
which would otherwise be included in a determination of Required Secured Parties shall not be included in the determination of Required Secured Parties for purposes of such notice or request for instructions. Any action taken or not taken without
the vote of such Secured Party or Secured Parties under this Section 11.03(l) shall nevertheless be binding on such Secured Party or Secured Parties. 
  
 (m) If the Collateral Agent has asked the Secured Parties for instruction and the Required Secured Parties have not yet responded to such request, the
Collateral Agent shall be authorized to take, but shall not be required to take, and shall in no event have any liability for the taking, any delay in taking or the failure to take, such actions (other than any action described or permitted under
Section 11.03(o)) with regard to an Event of Default which the Collateral Agent, in good faith, believes to be reasonably required to promote and protect the interests of the Secured Parties and to preserve the value of the Collateral and shall give
the Secured Parties appropriate notice of such action; provided that once instructions with respect to such request have been received by the Collateral Agent from the Required Secured Parties the actions of the Collateral Agent shall be
governed thereby and the Collateral Agent shall not take any further action which would be contrary thereto. 
  
 (n) Any term of the Security Documents may be amended, and the performance or observance by the parties to the Security Documents of any term of the
Security Documents may be waived (either generally or in a particular instance and either retroactively or prospectively), with the written consent of the Required Secured Parties; provided, however, that any amendment or waiver pursuant to
this Section 11.03(n) shall apply equally to the interests of all Secured Parties under the Security Documents. 
  
 (o) (1) Subject to Section 314(d) of the TIA (to the extent applicable), the release of any Collateral by the Collateral Agent from the Lien of the
Security Documents shall be permitted with the written consent of all of the Secured Parties; provided, however, that the written consent of any Secured Party to the release of Collateral by the Collateral Agent shall not be required,
and the Lien of the Security Documents shall automatically be released, (i) with respect to any assets that the Company disposes of pursuant to a disposition that is permitted under this Indenture or the Security Documents and (ii) with respect to
any assets owned by a Guarantor that is released from its obligations under all Guarantees to which it is a party. 
  
 (2) Subject to Section 314(d) of the TIA (to the extent applicable), the Collateral Agent shall provide a written release of any Lien on
any Collateral if it shall have received an officer’s certificate from the Company certifying that all conditions precedent to such release hereunder have been satisfied. Upon compliance with the foregoing sentence, the Collateral Agent shall
execute, deliver or acknowledge any reasonably requested instruments of 

  

 101 

 
termination, satisfaction or release to evidence the release of any Collateral permitted to be released pursuant to this Agreement. 
  
 (p) The Collateral Agent shall have the right to take such actions, or omit
to take such actions, hereunder and under the Collateral Documents not inconsistent with the written instructions delivered pursuant to Section 11.03(k) above of the Required Secured Parties or otherwise not inconsistent with the terms of this
Indenture, including actions the Collateral Agent deems necessary or appropriate to perfect or continue the perfection of the Liens on the Collateral for the benefit of the Secured Parties. Except as otherwise provided by applicable law, the
Collateral Agent shall have no duty as to any Collateral, the collection or protection of the Collateral or any income therefrom (including any duty to ascertain or take action with respect to calls, conversions, exchanges, maturities, tenders or
other matters relative to any Collateral, whether or not the Collateral Agent has or is deemed to have knowledge of such matters), nor as to the preservation of rights against prior parties, nor as to the preservation of rights pertaining to the
Collateral beyond the safe custody of any Collateral in the Collateral Agent’s actual possession. 
  
 Section 11.04 Authorization of Actions to Be Taken.  
  
 (a) The Collateral Agent and the Trustee will be authorized and empowered to receive for the benefit of the holders of notes
any funds collected or distributed under the Security Documents and to make further distributions of such funds to the holders of notes according to the provisions of this Indenture. 
  
 (b) Subject to the provisions of this Indenture governing the Trustee’s duties and rights generally, and subject to the
provisions described under Section 11.05, the Trustee may, in its sole discretion and without the consent of the holders of notes, direct, on behalf of the holders of notes, the Collateral Agent to take all actions it deems necessary or appropriate
in order to: 
  
 (1) foreclose upon or otherwise
enforce any or all of the Note Liens; 
  
 (2)
enforce any of the terms of the Security Documents; or 
  
 (3) collect and receive payment of any and all Note Obligations. 
  
 Section 11.05 Release of Note Liens. 
  
 (a) The Note Liens will be released in whole: 
  
 (1) upon payment in full of the principal of, and accrued and unpaid interest, premium and Liquidated Damages, if any, on the notes and payment in full of all other Note Obligations that are due and payable at or
prior to the time such principal, accrued and unpaid interest, premium and Liquidated Damages, if any, are paid; 
  
 (2) upon satisfaction and discharge of this Indenture in accordance with the terms hereof; or 
  

 102 

 (3) upon a Legal Defeasance or Covenant Defeasance in accordance with the provisions
described in Article 8 above. 
  
 (b) The Note Liens will be
released in part with respect to any asset constituting Collateral: 
  
 (1) upon delivery by the Company to the trustee and the Collateral Agent of an Officers’ Certificate certifying that the asset has been sold or otherwise disposed of by the Company or a Guarantor to a Person
other than the Company or a Guarantor in a transaction permitted by this Indenture, at the time of such sale or disposition; or 
  
 (2) upon delivery by the Company to the trustee and the Collateral Agent of an Officers’ Certificate certifying that the asset is
owned or has been acquired by a Guarantor that has been released from its Guarantee (including by virtue of a Subsidiary Guarantor becoming an Unrestricted Subsidiary). 
  
 Section 11.06 Filing, Recording and Opinions.  
  
 (a) Immediately prior to the issuance of the Exchange Securities and on April
1 of each year beginning with April 1, 2005, the Company will furnish to the trustee and the Collateral Agent an Opinion of Counsel with respect to the effectiveness and perfection of the Liens intended to be created by the security documents. The
Company will otherwise comply with the provisions of TIA §314(b). 
  
 (b) To the extent applicable, the Company will cause TIA §313(b), relating to reports, and TIA §314(d), relating to the release of property or securities from Note Liens or relating to the substitution for the Note Liens of any
property or securities to be subjected to the Lien of the security documents, to be complied with and will furnish to the trustee and the Collateral Agent, prior to each proposed release of Collateral pursuant to the Security Documents, all
documents required by TIA §314(d) and an opinion of counsel to the effect that the accompanying documents constitute all documents required by TIA §314(d). Notwithstanding anything to the contrary in this paragraph, the Company will not be
required to comply with all or any portion of TIA §314(d) if it determines, in good faith based on advice of counsel, that under the terms of TIA §314(d) and/or any interpretation or guidance as to the meaning thereof of the Commission or
its staff, including “no action” letters or exemptive orders, all or any portion of TIA §314(d) is inapplicable to one or a series of released Collateral. 
  
 ARTICLE 12 
  
 SATISFACTION AND DISCHARGE 
  
 Section 12.01 Satisfaction and Discharge. 
  
 (a) This Indenture will be discharged and will cease to be of further effect (except as to surviving rights of registration of transfer or exchange of the
Notes, as expressly provided for in this Indenture) as to all Notes issued hereunder, when: 
  
 (1) either: 
  
 (a) all Notes that have been authenticated, except lost, stolen or destroyed Notes that have been replaced or paid and Notes for whose
payment money has theretofore been deposited in trust and thereafter repaid to the Company, have been delivered to the Trustee for cancellation; or 
  

 103 

 (b) all Notes that have not been delivered to the Trustee for cancellation have become
due and payable by reason of the mailing of a notice of redemption or otherwise or will become due and payable within one year and the Company or any Guarantor has irrevocably deposited or caused to be deposited with the Trustee as trust funds in
trust solely for the benefit of the Holders, cash in U.S. dollars, non-callable Government Securities, or a combination of cash in U.S. dollars and non-callable Government Securities, in such amounts as will be sufficient, without consideration of
any reinvestment of interest, to pay and discharge the entire Indebtedness on the Notes not delivered to the Trustee for cancellation for principal, premium and Liquidated Damages, if any, and accrued interest to the date of maturity or redemption;

  
 (2) no Default or Event of Default has
occurred and is continuing on the date of such deposit (other than a Default or Event of Default resulting from the borrowing of funds to be applied to such deposit); 
  
 (3) such deposit will not result in a breach or violation of, or constitute a default under, any material
agreement or instrument (other than this Indenture) to which the Company or any Guarantor is a party or by which the Company or any Guarantor is bound; 
  
 (4) the Company or any Guarantor has paid or caused to be paid all of the Note Obligations; and 
  
 (5) the Company has delivered irrevocable instructions to
the Trustee under this Indenture to apply the deposited money toward the payment of the Notes at maturity or the redemption date, as the case may be. 
  
 (b) In addition, the Company must deliver to the Trustee (1) an Officers’ Certificate, stating that all conditions precedent set forth in Section
12.01(a) have been satisfied and (2) an Opinion of Counsel (which Opinion of Counsel may be subject to customary assumptions and qualifications), stating that all conditions precedent set forth in clauses (3) and (5) of Section 12.01(a) have been
satisfied; provided that the Opinion of Counsel with respect to clause (3) pf Section 12.01(a) may be to the knowledge of such counsel. 
  
 (c) Notwithstanding the satisfaction and discharge of this Indenture, if money has been deposited with the Trustee pursuant to Section 12.01(a)(1)(b), the
provisions of Sections 11.02 and 8.06 will survive. In addition, nothing in this Section 12.01 will be deemed to discharge those provisions of Section 7.07 hereof, that, by their terms, survive the satisfaction and discharge of this Indenture.

  

 104 

 Section 12.02 Application of Trust Money. 
  
 (a) Subject to the provisions of Section 8.06 hereof, all money deposited
with the Trustee pursuant to Section 12.01 hereof shall be held in trust and applied by it, in accordance with the provisions of the Notes and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting
as its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal (and premium, if any) and interest for whose payment such money has been deposited with the Trustee; but such money need not be segregated from
other funds except to the extent required by law. 
  
 (b) If the
Trustee or Paying Agent is unable to apply any money or Government Securities in accordance with Section 12.01 hereof by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, the Company’s and any Guarantor’s obligations under this Indenture and the Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section 12.01 hereof;
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 Government Securities held by the Trustee or Paying Agent. 
  
 ARTICLE 13 
  
 MISCELLANEOUS 
  
 Section 13.01 Trust Indenture
Act Controls. 
  
 If any provision of this Indenture limits,
qualifies or conflicts with the duties imposed by TIA § 318(c), the imposed duties will control. 
  
 Section 13.02 Notices. 
  
 (a) Any notice or communication by the Company, any Guarantor or the Trustee to the others is duly given if in writing and delivered in Person or mailed
by first class mail (registered or certified, return receipt requested), telex, telecopier or overnight air courier guaranteeing next day delivery, to the others’ address: 
  
 If to the Company and/or any Guarantor 
  
 Grande Communications Holdings, Inc. 
 401 Carlson Circle 
 San Marcos, Texas 78666 
 Telecopier No.: (512) 878-4010 
 Attention:
Chief Financial Officer 
  

 105 

 With a copy to: 
  

Hogan & Hartson L.L.P. 
 555 13th
Street, N.W. 
 Washington, D.C. 20004 
 Telecopier No.: (202) 637-5910 
 Attention: Steven M. Kaufman 
  
 If to the Trustee: 
  
 U.S. Bank National Association 
 60 Livingston
Avenue 
 St. Paul, Minnesota 55107-2292 
 Telecopier No.: (651) 495-8097 
 Attention: Corporate Finance Department 
  
 The Company, any Guarantor or the Trustee, by notice to the others, may designate additional
or different addresses for subsequent notices or communications. 
  
 (b) All notices and communications (other than those sent to Holders) will be deemed to have been duly given: at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if
mailed; when answered back, if telexed; when receipt acknowledged, if telecopied; and the next Business Day after timely delivery to the courier, if sent by overnight air courier guaranteeing next day delivery. 
  
 (c) Any notice or communication to a Holder will be mailed by first class
mail, certified or registered, return receipt requested, or by overnight air courier guaranteeing next day delivery to its address shown on the register kept by the Registrar. Any notice or communication will also be so mailed to any Person
described in TIA § 313(c), to the extent required by the TIA. Failure to mail a notice or communication to a Holder or any defect in it will not affect its sufficiency with respect to other Holders. 
  
 (d) If a notice or communication is mailed in the manner provided above
within the time prescribed, it is duly given, regardless of whether the addressee receives it. 
  
 (e) If the Company mails a notice or communication to Holders, it will mail a copy to the Trustee and each Agent at the same time. 
  
 Section 13.03 Communication by Holders of Notes with Other Holders of Notes. 
  
 Holders may communicate pursuant to TIA § 312(b) with other Holders with
respect to their rights under this Indenture or the Notes. The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA § 312(c). 
  

 106 

 Section 13.04 Certificate and Opinion as to Conditions Precedent. 
  
 (a) 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: 
  
 (1) an Officers’ Certificate in form and substance reasonably satisfactory to the Trustee (which must include the statements set forth in Section 13.05 hereof) stating that, in the opinion of the signers, all
conditions precedent and covenants, if any, provided for in this Indenture relating to the proposed action have been satisfied; and 
  
 (2) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee (which must include the statements set forth in
Section 13.05 hereof) stating that, in the opinion of such counsel, all such conditions precedent and covenants have been satisfied. 
  
 Section 13.05 Statements Required in Certificate or Opinion. 
  
 (a) Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture
(other than a certificate provided pursuant to TIA § 314(a)(4)) must comply with the provisions of TIA § 314(e) and must include: 
  
 (1) a statement that the Person making such certificate or opinion has read such covenant or condition; 
  
 (2) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; 
  
 (3) a statement that, in the opinion of such Person, he or she has made such examination or investigation as is necessary to enable him or
her to express an informed opinion as to whether or not such covenant or condition has been satisfied; and 
  
 (4) a statement as to whether or not, in the opinion of such Person, such condition or covenant has been satisfied. 
  
 Section 13.06 Rules by Trustee and Agents. 
  
 The Trustee may make reasonable rules for action by or at a meeting of
Holders. The Registrar or Paying Agent may make reasonable rules and set reasonable requirements for its functions. 
  
 Section 13.07 No Personal Liability of Directors, Officers, Employees and Stockholders. 
  
 No past, present or future director, officer, employee, incorporator, agent
or stockholder or Affiliate of the Company or any Guarantor, as such, will have any liability for any obligations of the Company or the Guarantors under the Notes, this Indenture, the Subsidiary Guarantees, or for any claim based on, in respect of,
or by reason of, such obligations or their creation. Each Holder of Notes by accepting a Note waives and releases all such liabilities. The waiver and release are part of the consideration for issuance of the Notes and the Subsidiary Guarantees. The
waiver may not be effective to waive liabilities under the federal securities laws. 
  

 107 

 Section 13.08 Governing Law. 
  
 THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE, THE NOTES, THE SUBSIDIARY
GUARANTEES AND THE SECURITY DOCUMENTS, WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 
  
 Section 13.09 No Adverse Interpretation of Other Agreements.

  
 This Indenture may not be used to interpret any other
indenture, loan or debt agreement of the Company or its Subsidiaries or of any other Person. Any such indenture, loan or debt agreement may not be used to interpret this Indenture. 
  
 Section 13.10 Successors. 
  
 All agreements of the Company in this Indenture and the Notes will bind its successors. All agreements of the Trustee in this Indenture will bind its
successors. All agreements of each Guarantor in this Indenture will bind its successors, except as otherwise provided in Section 10.05. 
  
 Section 13.11 Severability. 
  
 In case any provision in this Indenture or in the Notes is invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions will not in any way be affected or impaired thereby. 
  
 Section 13.12 Counterpart Originals. 
  
 The
parties may sign any number of copies of this Indenture. Each signed copy will be an original, but all of them together represent the same agreement. 
  
 Section 13.13 Table of Contents, Headings, etc. 
  
 The Table of Contents, Cross-Reference Table and Headings of the Articles and Sections of this Indenture have been inserted for convenience of reference
only, are not to be considered a part of this Indenture and will in no way modify or restrict any of the terms or provisions hereof. 
  
 [Signatures on following page] 
  

 108 

 IN WITNESS WHEREOF, the parties hereto have executed and delivered this Indenture as of the date first
written above. 
  

			
	 GRANDE COMMUNICATIONS HOLDINGS, INC.

		
	By:	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

  

			
	 GRANDE COMMUNICATIONS, INC.
 GRANDE COMMUNICATIONS CLEARSOURCE, INC.
 GRANDE COMMUNICATIONS NETWORKS, INC.
 GRANDE COMMUNICATIONS HOUSTON, INC.

		
	By:	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

  

			
	 DENTON TELECOM HOLDINGS I, LLC
 DENTON TELECOM INVESTORS I, LLC

		
	By:	 	 GRANDE COMMUNICATIONS, INC.
 ITS SOLE MEMBER

		
	By:	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

  
  

			
	 DENTON TELECOM PARTNERS I, LLP

		
	By:	 	 DENTON TELECOM HOLDINGS I, LLC 
 ITS GENERAL PARTNER 

		
	By:	 	 GRANDE COMMUNICATIONS, INC.
 ITS SOLE MEMBER

		
	By:	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

  

			
	 U.S. BANK NATIONAL ASSOCIATION

		
	By:	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

  
  

 S-1 

 EXHIBIT A1 
  
 [Face of Note] 
  
 CUSIP/CINS 
  
 14% Senior Secured Note due 2011 
  
 No.
         
  
 $             
  
 GRANDE COMMUNICATIONS HOLDINGS, INC. promises to pay to                      or registered assigns, the
principal sum of                                      DOLLARS
on April 1, 2011. 
  

					
	 Interest Payment Dates:
	  	April 1 and October 1	  	 
			
	 Record Dates:
	  	March 15 and September 15	  	 
		
	 Dated:             
                        , 200  
	  	 

  

			
	 GRANDE COMMUNICATIONS HOLDINGS, INC.

		
	By:	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

  
 This is one of the Notes
referred to in the within-mentioned Indenture: 
  

			
	 U.S. BANK NATIONAL ASSOCIATION, as
 Trustee

		
	By:	 	 
	 	 	

	 	 	Authorized Signatory

  

 A1-1 

 [Back of Note] 
  
 14% Senior Secured Note due 2011 
  
 [Insert the Global Note Legend, if applicable pursuant to the provisions of the Indenture] 
  
 [Insert the Private Placement Legend, if applicable pursuant to the provisions of the Indenture] 
  
 [Insert the Unit Legend, if applicable pursuant to the provisions of the
Indenture] 
  
 Capitalized terms used herein have the meanings
assigned to them in the Indenture referred to below unless otherwise indicated. 
  
 (1) Interest. Grande Communications Holdings, Inc., a Delaware corporation (the “Company”), promises to pay interest on the principal amount of this Note at 14% per annum until maturity and shall pay
the Liquidated Damages, if any, payable pursuant to Section 5 of the Registration Rights Agreement referred to below. The Company will pay interest and Liquidated Damages, if any, semi-annually in arrears on April 1 and October 1 of each year, or if
any such day is not a Business Day, on the next succeeding Business Day (each, an “Interest Payment Date”). Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from
the date of issuance; provided that if there is no existing Default in the payment of interest, and if this Note is authenticated between a record date referred to on the face hereof and the next succeeding Interest Payment Date, interest
shall accrue from such next succeeding Interest Payment Date; provided further that the first Interest Payment Date shall be October 1, 2004. The Company will pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand at a rate that is 0.50% per annum in excess of the rate then in effect; it will pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue installments of interest and Liquidated Damages, if any, (without regard to any applicable grace periods) from time to time on demand at the same rate to the extent lawful. Interest will be computed on the basis of a
360-day year of twelve 30-day months. 
  
 (2) Method of
Payment. The Company will pay interest on the Notes (except defaulted interest) and Liquidated Damages, if any, to the Persons who are registered Holders of Notes at the close of business on the March 15 or September 15 next preceding the
Interest Payment Date, even if such Notes are canceled after such record date and on or before such Interest Payment Date, except as provided in Section 2.12 of the Indenture with respect to defaulted interest. The Notes will be payable as to
principal, premium, Liquidated Damages, if any, and interest at the office or agency of the Company maintained for such purpose within or without the City and State of New York, or, at the option of the Company, payment of interest and Liquidated
Damages, if any, may be made by check mailed to the Holders at their addresses set forth in the register of Holders; provided that payment by wire transfer of immediately available funds will be required with respect to principal of and interest,
premium and Liquidated Damages, if any, on, all Global Notes and all other Notes the Holders of which will have provided wire transfer instructions to the Company or the Paying Agent. Such payment will be 

  

 A1-2 

 
in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 
  
 (3) Paying Agent and Registrar. Initially, U.S. Bank National
Association, the Trustee under the Indenture, will act as Paying Agent and Registrar. The Company may change any Paying Agent or Registrar without notice to any Holder; provided, however, that the Company shall at all
times maintain a Paying Agent office. The Company or any of its Subsidiaries may act in any such capacity. 
  
 (4) Indenture and Security Documents. The Company issued the Notes under an Indenture dated as of March 23, 2004 (the “Indenture”) among
the Company, the Guarantors and the Trustee. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the TIA. The Notes are subject to all such terms, and Holders are referred to the
Indenture and the TIA for a statement of such terms. To the extent any provision of this Note conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling. The Notes are secured by a pledge
of the Collateral pursuant to the Security Documents referred to in the Indenture. 
  
 (5) Optional Redemption. 
  
 (a) Except as set forth in subparagraph (b) of this Paragraph 5, the Company will not have the option to redeem the Notes prior to April 1, 2008. On or after April 1, 2008, the Company may redeem all or a part of the
Notes upon not less than 10 days’ nor more than 60 days’ notice, at the redemption prices (expressed as percentages of principal amount) set forth below plus accrued and unpaid interest and Liquidated Damages, if any, on the Notes redeemed
to the applicable redemption date, if redeemed during the twelve-month period beginning on April 1 of the years indicated below, subject to the rights of Holders on the relevant record date to receive interest on the relevant interest payment date:

  

				
	 Year

	  	Percentage

	 
	 2008
	  	107.000	%
	 2009
	  	103.500	%
	 2010 and thereafter
	  	100.000	%

  
 Unless the Company defaults in the
payment of the redemption price, interest will cease to accrue on the notes or portions thereof called for redemption on the applicable redemption date. 
  
 (b) Notwithstanding the provisions of subparagraph (a) of this Paragraph 5, at any time prior to April 1, 2007, the Company may on any one
or more occasions redeem Notes issued under the Indenture at a redemption price of 114% of the principal amount thereof, plus accrued and unpaid interest and Liquidated Damages, if any, to the redemption date, with the net cash proceeds of one or
more Equity Offerings; provided that at least 65% of the aggregate principal amount of Initial Notes originally issued under the Indenture on the Issue Date (excluding Notes held by the Company and its Subsidiaries) remains outstanding immediately
after the occurrence of such redemption and the redemption occurs within 90 days of the date of the closing of such Equity Offering. 
  

 A1-3 

 (6) Mandatory Redemption. The Company will not be required to make mandatory redemption or sinking
fund payments with respect to the Notes. 
  
 (7) Repurchase at
the Option of Holder. 
  
 (a) If there is a
Change of Control, the Company will be required to make an offer (a “Change of Control Offer”) to each Holder to repurchase all or any part (equal to $1,000 or an integral multiple of $1,000) of each Holder’s Notes at a purchase price
equal to 101% of the aggregate principal amount of Notes repurchased plus accrued and unpaid interest and Liquidated Damages, if any, on the Notes repurchased to the date of purchase, subject to the rights of Holders on the relevant record date to
receive interest due on the relevant interest payment date (the “Change of Control Payment”). Within 30 days following any Change of Control, the Company will mail a notice to each Holder setting forth the procedures governing the Change
of Control Offer as required by the Indenture. 
  
 (b) If the Company or a Restricted Subsidiary of the Company consummates any Asset Sales, within twenty days of each date on which the aggregate amount of Excess Proceeds exceeds $10.0 million, the Company will commence an offer to all
Holders of Notes and all holders of other Indebtedness that is pari passu with the Notes containing provisions similar to those set forth in the Indenture with respect to offers to purchase or redeem with the proceeds of sales of assets (an
“Asset Sale Offer”) in accordance with Section 4.10 of the Indenture to purchase the maximum principal amount of Notes and such other pari passu Indebtedness that may be purchased out of the Excess Proceeds at an offer price in cash
in an amount equal to 100% of the principal amount thereof plus accrued and unpaid interest and Liquidated Damages, if any, to the date of purchase, in accordance with the procedures set forth in the Indenture. If any Excess Proceeds remain
unapplied after consumption of an Asset Sale Offer, the Company and its Restricted Subsidiaries may use those Excess Proceeds for any purpose not otherwise prohibited by the Indenture. If the aggregate principal amount of Notes and other pari
passu Indebtedness surrendered by holders thereof exceeds the amount of Excess Proceeds, the Trustee shall select the Notes and other pari passu Indebtedness to be purchased on a pro rata basis. Holders of Notes that are the subject of an
offer to purchase will receive notice of an Asset Sale Offer from the Company prior to any related purchase date and may elect to have such Notes purchased by completing the form entitled “Option of Holder to Elect Purchase” attached to
the Notes. 
  
 (8) Notice of Redemption. Notice of
redemption will be mailed at least 10 days but not more than 60 days before the redemption date to each Holder whose Notes are to be redeemed at its registered address, except that redemption notices may be mailed more than 60 days prior to a
redemption date if the notice is issued in connection with a defeasance of the Notes or a satisfaction or discharge of the Indenture. Notes in denominations larger than $1,000 may be redeemed in part but only in whole multiples of $1,000, unless all
of the Notes held by a Holder are to be redeemed. On and after the redemption date interest ceases to accrue on Notes or portions thereof called for redemption. 
  

(9) Denominations, Transfer, Exchange. The Notes are in registered form without coupons in denominations of $1,000 and integral multiples of
$1,000. The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture. The Registrar and the 

  

 A1-4 

 
Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and the Company may require a Holder to pay any
taxes and fees required by law or permitted by the Indenture. The Company need not exchange or register the transfer of any Note or portion of a Note selected for redemption, except for the unredeemed portion of any Note being redeemed in part.
Also, the Company need not exchange or register the transfer of any Notes for a period of 15 days before a selection of Notes to be redeemed or during the period between a record date and the corresponding Interest Payment Date. 
  
 (10) Persons Deemed Owners. The registered Holder of a Note may be
treated as its owner for all purposes. 
  
 (11) Amendment,
Supplement and Waiver. Subject to certain exceptions, the Indenture, the Guarantees or the Notes may be amended or supplemented with the consent of the Holders of at least a majority in principal amount of the then outstanding Notes and
Additional Notes, if any, voting as a single class, and any existing Default or Event of Default or compliance with any provision of the Indenture, the Subsidiary Guarantees or the Notes may be waived with the consent of the Holders of a majority in
principal amount of the then outstanding Notes voting as a single class. Without the consent of any Holder of a Note, the Indenture, the Subsidiary Guarantees or the Notes may be amended or supplemented to cure any ambiguity, defect or
inconsistency, to provide for uncertificated Notes in addition to or in place of certificated Notes, to provide for the assumption of the Company’s or any Guarantor’s obligations to Holders of the Notes and Subsidiary Guarantees in case of
a merger or consolidation or sale of all or substantially all of the Company’s or such Guarantor’s assets, as applicable, to effect the release of a Guarantor from its Subsidiary Guarantee and the termination of such Subsidiary Guarantee,
all in accordance with the provisions of the Indenture governing such release and termination, to add any Subsidiary Guarantees or to secure the Notes or any Subsidiary Guarantees, to make any change that would provide any additional rights or
benefits to the Holders of Notes or that does not adversely affect the legal rights under the Indenture of any such Holder, to comply with the requirements of the SEC in order to effect or maintain the qualification of the Indenture under the TIA,
to conform the text of the Indenture or the Notes to any provision of the “Description of Notes” section of the Company’s Offering Memorandum dated March 9, 2004 relating to the initial offering of the Notes, to the extent that such
provision in that “Description of Notes” was intended to be a verbatim recitation of a provision of the Indenture, the Subsidiary Guarantees or the Notes, or to provide for a successor Trustee in accordance with the provisions of the
Indenture. 
  
 (12) Defaults and Remedies. Events of
Default include: (i) default for 30 days in the payment when due of interest on, or Liquidated Damages, if any, with respect to, the Notes; (ii) default in the payment when due (at maturity, upon redemption or otherwise) of the principal of, or
premium, if any, on the Notes; (iii) failure by the Company to comply with its obligations under Section 5.01 of the Indenture or to consummate a purchase of Notes when required pursuant to Sections 4.10 or 4.15 of the Indenture; (iv) failure by the
Company or any of its Restricted Subsidiaries for 30 days after notice by the Trustee or the Holders of at least 25% in aggregate principal amount of the then outstanding Notes to comply with the provisions of Sections 4.07 or 4.09 of the Indenture
or to comply with the provisions of Sections 4.10 or 4.15 of the Indenture to the extent not described in clause (iii) above; (v) failure by the Company or any of its Restricted Subsidiaries for 60 days after notice to the Company by the Trustee or
the 

  

 A1-5 

 
Holders of at least 25% in aggregate principal amount of the then outstanding Notes to comply with any of the other agreements in the Indenture, the Notes or
the Security Documents; (vi) default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any Indebtedness for money borrowed by the Company or any of its Restricted Subsidiaries
(or the payment of which is guaranteed by the Company or any of its Restricted Subsidiaries) whether such Indebtedness or guarantee now exists, or is created after the Issue Date, if that default: (a) is caused by a failure to pay principal of, or
interest or premium, if any, on such Indebtedness prior to the expiration of the grace period provided in such Indebtedness on the date of such default (a “Payment Default”); or (b) results in the acceleration of such Indebtedness prior to
its express maturity, and, in each case, (x) the principal amount of any such Indebtedness, together with the principal amount of any other such Indebtedness under which there has been a Payment Default or the maturity of which has been so
accelerated, aggregates $10.0 million or more and (y) such default shall have not have been remedied, cured or waived by the holders of the relevant Indebtedness within 60 days after such default; (vii) any final judgment or decree (to the extent
not covered by insurance) for the payment of money in excess of $10.0 million is entered against the Company or any of its Restricted Subsidiaries and is not paid or discharged, and there is any period of 60 consecutive days following entry of such
final judgment or decree during which a stay of enforcement of such final judgment or decree, by reason of pending appeal or otherwise, is not in effect; (viii) except as permitted by the Indenture, any Subsidiary Guarantee is held in any judicial
proceeding to be unenforceable or invalid or ceases for any reason to be in full force and effect or any Guarantor denies or disaffirms its obligations under its Subsidiary Guarantee; (ix) the Company, any Significant Subsidiary of the Company or
any group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary: (a) commences a voluntary case under any Bankruptcy Law, (b) consents to the entry of an order for relief against it or them in an involuntary
case, (c) consents to the appointment of a custodian or receiver of it or them or for all or substantially all of its or their property, (d) makes a general assignment for the benefit of its or their creditors, (e) consents to or acquiesces in the
institution of a bankruptcy or an insolvency proceeding against it or them, or (f) takes any corporate action to authorize or effect any of the foregoing; (x) a court of competent of competent jurisdiction enters an order or decree under any
Bankruptcy Law that: (a) is for relief in an involuntary case against the Company, any Significant Subsidiary of the Company or any group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary; (b) appoints a
custodian or receiver of the Company, any Significant Subsidiary of the Company or any group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary or for all or substantially all of the property of any of the
foregoing; or (c) orders the liquidation of the Company, any Significant Subsidiary of the Company or any group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary, and the order or decree remains unstayed and
in effect for 60 days; (xi) certain events of bankruptcy or insolvency described in the Indenture with respect to the Company or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of Restricted Subsidiaries that, taken
together, would constitute a Significant Subsidiary; and (xii)(a) default by the Company or any Guarantor in the performance of the Security Documents which could reasonably be expected to adversely affect the enforceability, validity, perfection or
priority of the Note Liens or which could reasonably be expected to adversely affect the condition or value of the Collateral, in each case, taken as a whole, in any material respect, (b) repudiation or disaffirmation by the Company or any of such
Guarantors of its or their 

  

 A1-6 

 
obligations under the Security Documents or (c) the determination in a judicial proceeding that all or any material portion of the Security Documents, taken
as a whole, are unenforceable or invalid, for any reason, against the Company or any of the Guarantors. If any Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the then outstanding Notes
may declare all the Notes to be due and payable immediately. Notwithstanding the foregoing, in the case of an Event of Default arising from certain events of bankruptcy or insolvency described in clause (xi) above, all outstanding Notes will become
due and payable immediately without further action or notice (subject to applicable law). Holders may not enforce the Indenture or the Notes except as provided in the Indenture. Subject to certain limitations, Holders of a majority in principal
amount of the then outstanding Notes may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of the Notes notice of any continuing Default or Event of Default (except a Default or Event of Default relating
to the payment of principal of, premium or Liquidated Damages, if any, or interest on, any Note) if it in good faith determines that withholding notice is in their interest. The Holders of a majority in aggregate principal amount of the then
outstanding Notes by written notice to the Trustee may, on behalf of all of the Holders, rescind an acceleration and its consequences if the rescission would not conflict with any judgment or decree and if all existing Events of Default (except
nonpayment of principal, interest or premium or Liquidated Damages, if any, that has become due solely because of the acceleration) have been cured or waived. The Company is required to deliver to the Trustee annually a statement regarding
compliance with the Indenture, and the Company is required upon becoming aware of any Default or Event of Default, to deliver to the Trustee a statement specifying such Default or Event of Default. 
  
 (13) Trustee Dealings With Company. The Trustee, in its individual or
any other capacity, may make loans to, accept deposits from, and perform services for the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not the Trustee. 
  
 (14) No Recourse Against Others. A director, officer, employee,
incorporator or stockholder, of the Company or any of the Guarantors, as such, will not have any liability for any obligations of the Company or such Guarantor under the Notes, the Subsidiary Guarantees 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. 
  
 (15) Authentication. This Note will not be valid until authenticated
by the manual signature of the Trustee or an authenticating agent. 
  
 (16) Abbreviations. Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not
as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 
  
 (17) Additional Rights and Obligations of Holders of Restricted Global Notes and Restricted Definitive Notes. In addition to the rights and obligations of Holders of Notes under the Indenture, each Holder of
Restricted Global Notes or Restricted Definitive Notes will have all the rights and obligations set forth in the Registration Rights Agreement dated as of 

  

 A1-7 

 
March 23, 2004 among the Company, the Guarantors and the other parties named on the signature pages thereof or, in the case of Additional Notes, Holders of
Restricted Global Notes and Restricted Definitive Notes will have the rights and obligations set forth in one or more registration rights agreements, if any, among the Company, the Guarantors and the other parties thereto, relating to rights given
by the Company and the Guarantors to the purchasers of any Additional Notes (collectively, the “Registration Rights Agreement”). By such Holders acceptance of Restricted Global Notes or Restricted Definitive Notes, such Holder acknowledges
and agrees to the provisions of the Registration Rights Agreement, including without limitation the obligations of the Holders with respect to indemnification of the Company and the Guarantors to the extent provided therein. 
  
 (18) CUSIP Numbers. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders. No representation is made as to the
accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon. 
  
 (19) Governing Law. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THE INDENTURE, THIS
NOTE AND THE SUBSIDIARY GUARANTEES. 
  
 The Company will furnish
to any Holder upon written request and without charge a copy of the Indenture and/or the Registration Rights Agreement. Requests may be made to: 
  
 Grande Communications Holdings, Inc. 
 401
Carlson Circle 
 San Marcos, Texas 78666 
 Telecopier No.: (512) 878-4010 
 Attention: Chief Financial Officer 
  

 A1-8 

 ASSIGNMENT FORM 
  

To assign this Note, fill in the form below: 
  

							
				
	 (I) or (we) assign and transfer this Note to:
	  	 	  	  	  	  
	 	 	 	 	
	 	 
	 	  	 	  	 (Insert assignee’s legal name)
	  	 

  

					
	 	 	 	 	 
	 	 	
	 	 
	 	 	(Insert assignee’s soc. sec. or tax I.D. no.)	 	 
	 	 	 	 	 
	 	 	
	 	 
			
	 	 	 	 	 
	 	 	
	 	 
			
	 	 	 	 	 
	 	 	
	 	 
			
	 	 	 	 	 
	 	 	
	 	 
			
	 	 	 	 	 
	 	 	
	 	 
	 	 	(Print or type assignee’s name, address and zip code)	 	 

  

	
	 and irrevocably appoint ___________________________________________ to transfer this Note on the books of the Company. The agent may substitute
another to act for him.
  
 Date:                                   
 

					
			
	Your Signature:	 	 	 	 
	 	 	

	(Sign exactly as your name appears on the face of this Note)

					
		
	Signature Guarantee*:	 	 
	 	 	 	

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  

 A1-9 

 OPTION OF HOLDER TO ELECT PURCHASE 
  
 If you want to elect to have this Note purchased by the Company pursuant to Section 4.10 or 4.15 of the Indenture, check the
appropriate box below: 
  
              Section 4.10              Section 4.15 
  
 If you want to elect to have only part of the Note purchased by the Company
pursuant to Section 4.10 or Section 4.15 of the Indenture, state the amount you elect to have purchased: 
  
 $                                      
               
  
 Date: 
  

			
		
	Your Signature:	 	 
	 	 	

	(Sign exactly as your name appears on the face of this Note)
	
	 Tax Identification No.:
                            

		
	Signature Guarantee*:	 	 
	 	 	

	
	 
	

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  

 A1-10 

 SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE* 
  
 The following exchanges of a part of this Global Note for an interest in
another Global Note or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an interest in this Global Note, have been made: 
  

									
	 Date of
Exchange

	 	 Amount of
decrease in
Principal
Amount of this
Global Note

	 	 Amount of
increase in
Principal
Amount of this
Global Note

	  	Principal
Amount of this
Global Note
following such
decrease (or
increase)

	  	Signature of
authorized
officer of Trustee
or Custodian

	*	This schedule should be included only if the Note is issued in global form 

  

 A1-11 

 EXHIBIT A2 
  
 [Face of Regulation S Temporary Global Note] 
  
 CUSIP/CINS 
  
 14% Senior Secured Note due 2011 
  
 No.             
  
 $             
  
 GRANDE COMMUNICATIONS HOLDINGS, INC. promises to pay to
                             or registered assigns, the principal sum of
                             DOLLARS on April 1, 2011. 
  
 Interest Payment Dates: April 1 and October 1 
  
 Record Dates: March 15 and September 15 
  
 Dated:         
            , 200   
  

			
	GRANDE COMMUNICATIONS HOLDINGS, INC.
		
	By:	 	 
	 	 	

	Name:	 	 
	Title:	 	 

  

			
	This is one of the Notes referred to in the within-mentioned Indenture:
	  
 U.S. BANK NATIONAL ASSOCIATION, as
Trustee

		
	By:	 	 
	 	 	

	 	 	  
 Authorized Signatory

  

 A2-1 

 [Back of Regulation S Temporary Global Note] 
 14% Senior Secured Note due 2011 
  
 THE RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY GLOBAL NOTE, AND THE CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE FOR CERTIFICATED NOTES, ARE AS SPECIFIED IN THE INDENTURE (AS DEFINED HEREIN). NEITHER THE
HOLDER NOR THE BENEFICIAL OWNERS OF THIS REGULATION S TEMPORARY GLOBAL NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT OF INTEREST HEREON. 
  
 THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT
NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) HIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE
PRIOR WRITTEN CONSENT OF THE COMPANY. 
  
 UNLESS AND UNTIL IT IS
EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY
OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK)
(“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
 THE
SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THE SECURITY EVIDENCED
HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER 

  

 A2-2 

 
MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT. THE HOLDER OF THE SECURITY EVIDENCED HEREBY AGREES FOR THE BENEFIT OF
THE ISSUER THAT (A) SUCH SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) (a) IN THE UNITED STATES TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT)
IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (b) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (c) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES
ACT, (d) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” (AS DEFINED IN RULE 501 (a) (1), (2), (3) OR (7) OF THE SECURITIES ACT) THAT, PRIOR TO SUCH TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND
AGREEMENTS (THE FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF NOTES LESS THAN $250,000, AN OPINION OF COUNSEL ACCEPTABLE TO GRANDE COMMUNICATIONS HOLDINGS, INC. THAT SUCH
TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT OR (e) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL IF GRANDE COMMUNICATIONS HOLDINGS, INC. SO REQUESTS), (2) TO
GRANDE COMMUNICATIONS HOLDINGS, INC. OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND (B) THE
HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER FROM IT OF THE SECURITY EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE. 
  
 [Insert the Unit Legend, if applicable pursuant to the provisions of the Indenture] 
  
 Capitalized terms used herein have the meanings assigned to them in the
Indenture referred to below unless otherwise indicated. 
  
 (1)
Interest. Grande Communications Holdings, Inc., a Delaware corporation (the “Company”), promises to pay interest on the principal amount of this Note at 14% per annum until maturity and shall pay the Liquidated Damages, if any,
payable pursuant to Section 5 of the Registration Rights Agreement referred to below. The Company will pay interest and Liquidated Damages, if any, semi-annually in arrears on April 1 and October 1 of each year, or if any such day is not a Business
Day, on the next succeeding Business Day (each, an “Interest Payment Date”). Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the date of issuance; provided
that if there is no existing Default in the payment of interest, and if this Note is authenticated between a record date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding
Interest Payment Date; provided further that the first Interest Payment Date shall be October 1, 2004. The Company will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if
any, 

  

 A2-3 

 
from time to time on demand at a rate that is 0.50% per annum in excess of the rate then in effect; it will pay interest (including post-petition interest in
any proceeding under any Bankruptcy Law) on overdue installments of interest and Liquidated Damages, if any, (without regard to any applicable grace periods) from time to time on demand at the same rate to the extent lawful. Interest will be
computed on the basis of a 360-day year of twelve 30-day months. 
  
 Until this Regulation S Temporary Global Note is exchanged for one or more Regulation S Permanent Global Note, the Holder hereof shall not be entitled to receive payments of interest hereon; until so exchanged in full, this Regulation S
Temporary Global Note shall in all other respects be entitled to the same benefits as other Notes under the Indenture. 
  
 (2) Method of Payment. The Company will pay interest on the Notes (except defaulted interest) and Liquidated Damages, if any, to the Persons who
are registered Holders of Notes at the close of business on the March 15 or September 15 next preceding the Interest Payment Date, even if such Notes are canceled after such record date and on or before such Interest Payment Date, except as provided
in Section 2.12 of the Indenture with respect to defaulted interest. The Notes will be payable as to principal, premium, Liquidated Damages, if any, and interest at the office or agency of the Company maintained for such purpose within or without
the City and State of New York, or, at the option of the Company, payment of interest and Liquidated Damages, if any, may be made by check mailed to the Holders at their addresses set forth in the register of Holders; provided that payment by wire
transfer of immediately available funds will be required with respect to principal of and interest, premium and Liquidated Damages, if any, on, all Global Notes and all other Notes the Holders of which will have provided wire transfer instructions
to the Company or the Paying Agent. Such payment will be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 
  
 (3) Paying Agent and Registrar. Initially, U.S. Bank National
Association, the Trustee under the Indenture, will act as Paying Agent and Registrar. The Company may change any Paying Agent or Registrar without notice to any Holder; provided, however, that the Company shall at all times maintain a
Paying Agent office. The Company or any of its Subsidiaries may act in any such capacity. 
  
 (4) Indenture and Security Documents. The Company issued the Notes under an Indenture dated as of March 23, 2004 (the “Indenture”) among the Company, the Guarantors and the Trustee. The terms of the
Notes include those stated in the Indenture and those made part of the Indenture by reference to the TIA. The Notes are subject to all such terms, and Holders are referred to the Indenture and the TIA for a statement of such terms. To the extent any
provision of this Note conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling. The Notes are secured by a pledge of the Collateral pursuant to the Security Documents referred to in the
Indenture 
  
 (5) Optional Redemption. 
  
 (a) Except as set forth in subparagraph (b) of this
Paragraph 5, the Company will not have the option to redeem the Notes prior to April 1, 2008. On or after April 1, 2008, the Company may redeem all or a part of the Notes upon not less than 10 days’ nor more than 

  

 A2-4 

 
60 days’ notice, at the redemption prices (expressed as percentages of principal amount) set forth below plus accrued and unpaid interest and Liquidated
Damages, if any, on the Notes redeemed to the applicable redemption date, if redeemed during the twelve-month period beginning on April 1 of the years indicated below, subject to the rights of Holders on the relevant record date to receive interest
on the relevant interest payment date: 
  

			
	 Year

	  	Percentage

	 2008
	  	107.000%
	 2009
	  	103.500%
	 2010 and thereafter
	  	100.000%

  
 Unless the Company defaults in the
payment of the redemption price, interest will cease to accrue on the notes or portions thereof called for redemption on the applicable redemption date. 
  
 (b) Notwithstanding the provisions of subparagraph (a) of this Paragraph 5, at any time prior to April 1, 2007, the Company may on any one or more
occasions redeem Notes issued under the Indenture at a redemption price of 114% of the principal amount thereof, plus accrued and unpaid interest and Liquidated Damages, if any, to the redemption date, with the net cash proceeds of one or more
Equity Offerings; provided that at least 65% of the aggregate principal amount of Initial Notes originally issued under the Indenture on the Issue Date (excluding Notes held by the Company and its Subsidiaries) remains outstanding immediately after
the occurrence of such redemption and the redemption occurs within 90 days of the date of the closing of such Equity Offering. 
  
 (6) Mandatory Redemption. The Company will not be required to make mandatory redemption or sinking fund payments with respect to the Notes.

  
 (7) Repurchase at the Option of Holder. 
  
 (a) If there is a Change of Control, the Company will be
required to make an offer (a “Change of Control Offer”) to each Holder to repurchase all or any part (equal to $1,000 or an integral multiple of $1,000) of each Holder’s Notes at a purchase price equal to 101% of the aggregate
principal amount of Notes repurchased plus accrued and unpaid interest and Liquidated Damages, if any, on the Notes repurchased to the date of purchase, subject to the rights of Holders on the relevant record date to receive interest due on the
relevant interest payment date (the “Change of Control Payment”). Within 30 days following any Change of Control, the Company will mail a notice to each Holder setting forth the procedures governing the Change of Control Offer as required
by the Indenture. 
  
 (b) If the Company or a
Restricted Subsidiary of the Company consummates any Asset Sales, within twenty days of each date on which the aggregate amount of Excess Proceeds exceeds $10.0 million, the Company will commence an offer to all Holders of Notes and all holders of
other Indebtedness that is pari passu with the Notes containing provisions similar to those set forth in the Indenture with respect to offers to purchase or redeem with the proceeds of sales of assets (an “Asset Sale Offer”) in
accordance with Section 4.10 of the Indenture to purchase the maximum principal amount of Notes and such other pari passu Indebtedness that may be purchased out of the Excess Proceeds at an offer price in cash in an 

  

 A2-5 

 
amount equal to 100% of the principal amount thereof plus accrued and unpaid interest and Liquidated Damages, if any, to the date of purchase, in accordance
with the procedures set forth in the Indenture. If any Excess Proceeds remain unapplied after consumption of an Asset Sale Offer, the Company and its Restricted Subsidiaries may use those Excess Proceeds for any purpose not otherwise prohibited by
the Indenture. If the aggregate principal amount of Notes and other pari passu Indebtedness surrendered by holders thereof exceeds the amount of Excess Proceeds, the Trustee shall select the Notes and other pari passu Indebtedness to
be purchased on a pro rata basis. Holders of Notes that are the subject of an offer to purchase will receive notice of Asset Sale Offer from the Company prior to any related purchase date and may elect to have such Notes purchased by completing the
form entitled “Option of Holder to Elect Purchase” attached to the Notes. 
  
 (8) Notice of Redemption. Notice of redemption will be mailed at least 10 days but not more than 60 days before the redemption date to each Holder whose Notes are to be redeemed at its registered address,
except that redemption notices may be mailed more than 60 days prior to a redemption date if the notice is issued in connection with a defeasance of the Notes or a satisfaction or discharge of the Indenture. Notes in denominations larger than $1,000
may be redeemed in part but only in whole multiples of $1,000, unless all of the Notes held by a Holder are to be redeemed. On and after the redemption date interest ceases to accrue on Notes or portions thereof called for redemption. 
  
 (9) Denominations, Transfer, Exchange. The Notes are in registered
form without coupons in denominations of $1,000 and integral multiples of $1,000. The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require a Holder, among other
things, to furnish appropriate endorsements and transfer documents and the Company may require a Holder to pay any taxes and fees required by law or permitted by the Indenture. The Company need not exchange or register the transfer of any Note or
portion of a Note selected for redemption, except for the unredeemed portion of any Note being redeemed in part. Also, the Company need not exchange or register the transfer of any Notes for a period of 15 days before a selection of Notes to be
redeemed or during the period between a record date and the corresponding Interest Payment Date. 
  
 This Regulation S Temporary Global Note is exchangeable in whole or in part for one or more Global Notes only (i) on or after the termination of the
40-day distribution compliance period (as defined in Regulation S) and (ii) upon presentation of certificates (accompanied by an Opinion of Counsel, if applicable) required by Article 2 of the Indenture. Upon exchange of this Regulation S Temporary
Global Note for one or more Global Notes, the Trustee shall cancel this Regulation S Temporary Global Note. 
  
 (10) Persons Deemed Owners. The registered Holder of a Note may be treated as its owner for all purposes. 
  
 (11) Amendment, Supplement and Waiver. Subject to certain exceptions,
the Indenture, the Subsidiary Guarantees or the Notes may be amended or supplemented with the consent of the Holders of at least a majority in principal amount of the then outstanding Notes and Additional Notes, if any, voting as a single class, and
any existing Default or Event of Default or compliance with any provision of the Indenture, the Subsidiary Guarantees or the 

  

 A2-6 

 
Notes may be waived with the consent of the Holders of a majority in principal amount of the then outstanding Notes voting as a single class. Without the
consent of any Holder of a Note, the Indenture, the Subsidiary Guarantees or the Notes may be amended or supplemented to cure any ambiguity, defect or inconsistency, to provide for uncertificated Notes in addition to or in place of certificated
Notes, to provide for the assumption of the Company’s or any Guarantor’s obligations to Holders of the Notes and Subsidiary Guarantees in case of a merger or consolidation or sale of all or substantially all of the Company’s or such
Guarantor’s assets, as applicable, to effect the release of a Guarantor from its Subsidiary Guarantee and the termination of such Subsidiary Guarantee, all in accordance with the provisions of the Indenture governing such release and
termination, to add any Subsidiary Guarantees or to secure the Notes or any Subsidiary Guarantees, to make any change that would provide any additional rights or benefits to the Holders of Notes or that does not adversely affect the legal rights
under the Indenture of any such Holder, to comply with the requirements of the SEC in order to effect or maintain the qualification of the Indenture under the TIA, to conform the text of the Indenture or the Notes to any provision of the
“Description of Notes” section of the Company’s Offering Memorandum dated March 9, 2004 relating to the initial offering of the Notes, to the extent that such provision in that “Description of Notes” was intended to be a
verbatim recitation of a provision of the Indenture, the Subsidiary Guarantees or the Notes, or to provide for a successor Trustee in accordance with the provisions of the Indenture. 
  
 (12) Defaults and Remedies. Events of Default include: (i) default for 30 days in the payment when due of interest
on, or Liquidated Damages, if any, with respect to, the Notes; (ii) default in the payment when due (at maturity, upon redemption or otherwise) of the principal of, or premium, if any, on the Notes; (iii) failure by the Company to comply with its
obligations under Section 5.01 of the Indenture or to consummate a purchase of Notes when required pursuant to Sections 4.10 or 4.15 of the Indenture; (iv) failure by the Company or any of its Restricted Subsidiaries for 30 days after notice by the
Trustee or the Holders of at least 25% in aggregate principal amount of the then outstanding Notes to comply with the provisions of Sections 4.07 or 4.09 of the Indenture or to comply with the provisions of Sections 4.10 or 4.15 of the Indenture to
the extent not described in clause (iii) above; (v) failure by the Company or any of its Restricted Subsidiaries for 60 days after notice to the Company by the Trustee or the Holders of at least 25% in aggregate principal amount of the then
outstanding Notes to comply with any of the other agreements in the Indenture, the Notes or the Security Documents; (vi) default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or
evidenced any Indebtedness for money borrowed by the Company or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the Company or any of its Restricted Subsidiaries) whether such Indebtedness or guarantee now exists, or is
created after the Issue Date, if that default: (a) is caused by a failure to pay principal of, or interest or premium, if any, on such Indebtedness prior to the expiration of the grace period provided in such Indebtedness on the date of such default
(a “Payment Default”); or (b) results in the acceleration of such Indebtedness prior to its express maturity, and, in each case, (x) the principal amount of any such Indebtedness, together with the principal amount of any other such
Indebtedness under which there has been a Payment Default or the maturity of which has been so accelerated, aggregates $10.0 million or more and (y) such default shall have not have been remedied, cured or waived by the holders of the relevant
Indebtedness within 60 days after such default; (vii) any final judgment or decree (to the extent not covered by insurance) for the payment of money in excess of $10.0 million is entered against the Company or any of its 

  

 A2-7 

 
Restricted Subsidiaries and is not paid or discharged, and there is any period of 60 consecutive days following entry of such final judgment or decree during
which a stay of enforcement of such final judgment or decree, by reason of pending appeal or otherwise, is not in effect; (viii) except as permitted by the Indenture, any Subsidiary Guarantee is held in any judicial proceeding to be unenforceable or
invalid or ceases for any reason to be in full force and effect or any Guarantor denies or disaffirms its obligations under its Subsidiary Guarantee; (ix) the Company, any Significant Subsidiary of the Company or any group of Restricted Subsidiaries
that, taken together, would constitute a Significant Subsidiary: (a) commences a voluntary case under any Bankruptcy Law, (b) consents to the entry of an order for relief against it or them in an involuntary case, (c) consents to the appointment of
a custodian or receiver of it or them or for all or substantially all of its or their property, (d) makes a general assignment for the benefit of its or their creditors, (e) consents to or acquiesces in the institution of a bankruptcy or an
insolvency proceeding against it or them, or (f) takes any corporate action to authorize or effect any of the foregoing; (x) a court of competent of competent jurisdiction enters an order or decree under any Bankruptcy Law that: (a) is for relief in
an involuntary case against the Company, any Significant Subsidiary of the Company or any group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary; (b) appoints a custodian or receiver of the Company, any
Significant Subsidiary of the Company or any group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary or for all or substantially all of the property of any of the foregoing; or (c) orders the liquidation of
the Company, any Significant Subsidiary of the Company or any group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary, and the order or decree remains unstayed and in effect for 60 days; (xi) certain events
of bankruptcy or insolvency described in the Indenture with respect to the Company or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of Restricted Subsidiaries that, taken together, would constitute a Significant
Subsidiary; and (xii)(a) default by the Company or any Guarantor in the performance of the Security Documents which could reasonably be expected to adversely affect the enforceability, validity, perfection or priority of the Note Liens or which
could reasonably be expected to adversely affect the condition or value of the Collateral, in each case, taken as a whole, in any material respect, (b) repudiation or disaffirmation by the Company or any of such Guarantors of its or their
obligations under the Security Documents or (c) the determination in a judicial proceeding that all or any material portion of the Security Documents, taken as a whole, are unenforceable or invalid, for any reason, against the Company or any of the
Guarantors. If any Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the then outstanding Notes may declare all the Notes to be due and payable immediately. Notwithstanding the foregoing, in
the case of an Event of Default arising from certain events of bankruptcy or insolvency described in clause (xi) above, all outstanding Notes will become due and payable immediately without further action or notice (subject to applicable law).
Holders may not enforce the Indenture or the Notes except as provided in the Indenture. Subject to certain limitations, Holders of a majority in principal amount of the then outstanding Notes may direct the Trustee in its exercise of any trust or
power. The Trustee may withhold from Holders of the Notes notice of any continuing Default or Event of Default (except a Default or Event of Default relating to the payment of principal of, premium or Liquidated Damages, if any, or interest on, any
Note) if it in good faith determines that withholding notice is in their interest. The Holders of a majority in aggregate principal amount of the then outstanding Notes by written notice to the Trustee may, on behalf of all of the Holders, rescind
an acceleration and its 

  

 A2-8 

 
consequences if the rescission would not conflict with any judgment or decree and if all existing Events of Default (except nonpayment of principal, interest
or premium or Liquidated Damages, if any, that has become due solely because of the acceleration) have been cured or waived. The Company is required to deliver to the Trustee annually a statement regarding compliance with the Indenture, and the
Company is required upon becoming aware of any Default or Event of Default, to deliver to the Trustee a statement specifying such Default or Event of Default. 
  

(13) Trustee Dealings With Company. The Trustee, in its individual or any other capacity, may make loans to, accept deposits from, and perform
services for the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not the Trustee. 
  
 (14) No Recourse Against Others. A director, officer, employee, incorporator or stockholder, of the Company or any of the Guarantors, as such, will
not have any liability for any obligations of the Company or such Guarantor under the Notes, the Subsidiary Guarantees 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. 
  
 (15) Authentication. This Note will not be valid until authenticated by the manual signature of the Trustee or an authenticating agent. 

 
 (16) Abbreviations. Customary abbreviations may be used in the name
of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors
Act). 
  
 (17) Additional Rights and Obligations of Holders of
Restricted Global Notes and Restricted Definitive Notes. In addition to the rights and obligations of Holders of Notes under the Indenture, each Holder of Restricted Global Notes or Restricted Definitive Notes will have all the rights and
obligations set forth in the Registration Rights Agreement dated as of March 23, 2004 among the Company, the Guarantors and the other parties named on the signature pages thereof or, in the case of Additional Notes, Holders of Restricted Global
Notes and Restricted Definitive Notes will have the rights and obligations set forth in one or more registration rights agreements, if any, among the Company, the Guarantors and the other parties thereto, relating to rights given by the Company and
the Guarantors to the purchasers of any Additional Notes (collectively, the “Registration Rights Agreement”). By such Holders acceptance of Restricted Global Notes or Restricted Definitive Notes, such Holder acknowledges and agrees to the
provisions of the Registration Rights Agreement, including without limitation the obligations of the Holders with respect to indemnification of the Company and the Guarantors to the extent provided therein. 
  
 (18) CUSIP Numbers. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders. No representation is made as to the
accuracy of such numbers either as 

  

 A2-9 

 
printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.

  
 (19) Governing Law. THE INTERNAL LAW OF THE STATE OF
NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THE INDENTURE, THIS NOTE AND THE SUBSIDIARY GUARANTEES. 
  
 The Company will furnish to any Holder upon written request and without charge a copy of the Indenture and/or the Registration Rights Agreement. Requests
may be made to: 
  
 Grande Communications Holdings, Inc.

 401 Carlson Circle 
 San
Marcos, Texas 78666 
 Telecopier No.: (512) 878-40108144 
 Attention: Chief Financial Officer 
  

 A2-10 

 ASSIGNMENT FORM 
  

To assign this Note, fill in the form below: 
  

			
	(I) or (we) assign and transfer this Note to:	  	

	 	  	(Insert assignee’s legal name)

  

	
	 
	

	 (Insert assignee’s soc. sec. or tax I.D. no.)

	
	 
	

	
	 
	

	
	 
	

	
	 
	

	
	 
	

	 (Print or type assignee’s name, address and zip code)

  
 and irrevocably appoint
___________________________________________ to transfer this Note on the books of the Company. The agent may substitute another to act for him. 
  
 Date:                                     
    
  

			
	Your Signature:	 	 
	 	 	

  
 (Sign exactly as your name appears on
the face of this Note) 
  

			
	Signature Guarantee*:	 	 
	 	 	

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  

 A2-11 

 OPTION OF HOLDER TO ELECT PURCHASE 
  
 If you want to elect to have this Note purchased by the Company pursuant to Section 4.10 or 4.15 of the Indenture, check the
appropriate box below: 
  
              Section 4.10                      Section 4.15

  
 If you want to elect to have only part of the Note purchased
by the Company pursuant to Section 4.10 or Section 4.15 of the Indenture, state the amount you elect to have purchased: 
  
 $                     
  
 Date:
                     
  

			
	Your Signature:	 	 
	 	 	

 (Sign exactly as your name appears on the face of this Note) 
  

			
	Tax Identification No.:	 	 
	 	 	

  

			
	Signature Guarantee*:	 	 
	 	 	

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  

 A2-12 

 SCHEDULE OF EXCHANGES OF INTERESTS IN THE REGULATION S 
 TEMPORARY GLOBAL NOTE 
  
 The following exchanges of a part of this Regulation S Temporary Global Note for an interest in another Global Note, or exchanges of a part of another
other Restricted Global Note for an interest in this Regulation S Temporary Global Note, have been made: 
  

									
	 Date of Exchange

	 	 Amount of
decrease in
Principal
Amount of this
Global Note

	 	 Amount of
increase in
Principal
Amount of this
Global Note

	  	Principal
Amount of this
Global Note
following such
decrease (or
increase)

	  	Signature of
authorized
officer of Trustee or
Custodian

  

 A2-13 

 EXHIBIT B 
  
 FORM OF CERTIFICATE OF TRANSFER 
  
 Grande Communications Holdings, Inc. 
 401 Carlson Circle 
 San Marcos, Texas 78666 
 Telecopier No.: (512) 878-4010 
  
 [U.S. Bank National Association 
 60 Livingston Avenue 
 St. Paul, Minnesota 55107-2292 
 Attention: Corporate Finance Department] 
  
 Re: 14% Senior Secured Notes due 2011 
  
 Reference is hereby made to the Indenture, dated as of March 23, 2004 (the “Indenture”), among Grande Communications Holdings, Inc., as issuer (the “Company”), the Guarantors party thereto and U.S.
Bank National Association, as trustee. Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture. 
  
                     , (the
“Transferor”) owns and proposes to transfer the Note[s] or interest in such Note[s] specified in Annex A hereto, in the principal amount of $ in such Note[s] or interests (the “Transfer”), to
                     (the “Transferee”), as further specified in Annex A hereto. In connection with the Transfer, the Transferor
hereby certifies that: 
  
 [CHECK ALL THAT APPLY] 
  
 1.
             Check if Transferee will take delivery of a beneficial interest in the 144A Global Note or a Restricted Definitive Note pursuant to Rule 144A. The Transfer is being
effected pursuant to and in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and, accordingly, the Transferor hereby further certifies that the beneficial interest or Definitive Note is being
transferred to a Person that the Transferor reasonably believes is purchasing the beneficial interest or Definitive Note for its own account, or for one or more accounts with respect to which such Person exercises sole investment discretion, and
such Person and each such account is a “qualified institutional buyer” within the meaning of Rule 144A in a transaction meeting the requirements of Rule 144A, and such Transfer is in compliance with any applicable blue sky securities laws
of any state of the United States. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will be subject to the restrictions on transfer enumerated in the
Private Placement Legend printed on the 144A Global Note and/or the Restricted Definitive Note and in the Indenture and the Securities Act. 
  
 2.              Check if Transferee will take delivery of a beneficial interest in the
Regulation S Temporary Global Note, the Regulation S Permanent Global Note or a Restricted Definitive Note pursuant to Regulation S. The Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and,
accordingly, the Transferor 

  

 B-1 

 
hereby further certifies that (i) the Transfer is not being made to a Person in the United States and (x) at the time the buy order was originated, the
Transferee was outside the United States or such Transferor and any Person acting on its behalf reasonably believed and believes that the Transferee was outside the United States or (y) the transaction was executed in, on or through the facilities
of a designated offshore securities market and neither such Transferor nor any Person acting on its behalf knows that the transaction was prearranged with a buyer in the United States, (ii) no directed selling efforts have been made in contravention
of the requirements of Rule 903(b) or Rule 904(b) of Regulation S under the Securities Act, (iii) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act and (iv) if the proposed transfer is being
made prior to the expiration of the Restricted Period, (x) the transfer is not being made to a U.S. Person or for the account or benefit of a U.S. Person (other than an Initial Purchaser) and (y) the interest transferred will be held immediately
thereafter through Euroclear or Clearstream. Upon consummation of the proposed transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will be subject to the restrictions on Transfer enumerated
in the Private Placement Legend printed on the Regulation S Permanent Global Note, the Regulation S Temporary Global Note and/or the Restricted Definitive Note and in the Indenture and the Securities Act. 
  
 3.
             Check and complete if Transferee will take delivery of a beneficial interest in a Restricted Definitive Note pursuant to any provision of the Securities Act other than
Rule 144A or Regulation S. The Transfer is being effected in compliance with the transfer restrictions applicable to beneficial interests in Restricted Global Notes and Restricted Definitive Notes and pursuant to and in accordance with the
Securities Act and any applicable blue sky securities laws of any state of the United States, and accordingly the Transferor hereby further certifies that (check one): 
  
 (a)              such Transfer is being effected pursuant
to and in accordance with Rule 144 under the Securities Act; 
  
 or 
  
 (b)
             such Transfer is being effected to the Company or a subsidiary thereof; 
  
 or 
  
 (c)              such Transfer is being effected pursuant to an effective registration
statement under the Securities Act and in compliance with the prospectus delivery requirements of the Securities Act; 
  
 or 
  
 (d)              such Transfer is being effected to an Institutional Accredited
Investor and pursuant to an exemption from the registration requirements of the Securities Act other than Rule 144A, Rule 144, Rule 903 or Rule 904, and the Transferor hereby further certifies that it has not engaged in any general solicitation
within the meaning of Regulation D under the Securities Act and the Transfer complies with the transfer restrictions applicable to beneficial interests in a Restricted Global Note or Restricted Definitive Notes and the requirements of the exemption
claimed, which certification is supported by (1) a certificate executed by the 

  

 B-2 

 
Transferee in the form of Exhibit D to the Indenture and (2) if such Transfer is in respect of a principal amount of Notes at the time of transfer of less
than $250,000, an Opinion of Counsel provided by the Transferor or the Transferee (a copy of which the Transferor has attached to this certification), to the effect that such Transfer is in compliance with the Securities Act. Upon consummation of
the proposed transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the 144A Global Note
and/or the Restricted Definitive Notes and in the Indenture and the Securities Act. 
  
 4.              Check if Transferee will take delivery of a beneficial interest in an Unrestricted Global Note or of an Unrestricted Definitive Note.

  
 (a)
             Check if Transfer is pursuant to Rule 144. (i) The Transfer is being effected pursuant to and in accordance with Rule 144 under the Securities Act and in compliance with
the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any state of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in
order to maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will no longer be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on Restricted Definitive Notes and in the Indenture. 
  
 (b)              Check if Transfer is Pursuant to Regulation S. (i) The Transfer is
being effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any state of the United States
and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of
the Indenture, the transferred beneficial interest or Definitive Note will no longer be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on Restricted Definitive Notes and in
the Indenture. 
  
 (c)
             Check if Transfer is Pursuant to Other Exemption. (i) The Transfer is being effected pursuant to and in compliance with an exemption from the registration requirements
of the Securities Act other than Rule 144, Rule 903 or Rule 904 and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any State of the United States and (ii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will not be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes or Restricted Definitive Notes and in the Indenture. 
  

 B-3 

 This certificate and the statements contained herein are made for your benefit and the benefit of the
Company. 
  

			
	 
	

	 [Insert Name of Transferor]

		
	By:	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

  
 Dated: 
  

 B-4 

 ANNEX A TO CERTIFICATE OF TRANSFER 
  

			
		
	1.	  	The Transferor owns and proposes to transfer the following:
		
	 	  	[CHECK ONE OF (a) OR (b)]
		
	(a)	  	 
		
	_____	  	a beneficial interest in the:
		
	_____	  	(i) 144A Global Note (CUSIP             ), or
		
	_____	  	(ii) Regulation S Global Note (CUSIP             ), or
		
	(b)	  	 
		
	_____	  	a Restricted Definitive Note.
		
	2.	  	After the Transfer the Transferee will hold:
		
	 	  	[CHECK ONE]
		
	(a)	  	 
		
	_____	  	a beneficial interest in the:
		
	_____	  	(i) 144A Global Note (CUSIP             ), or
		
	_____	  	(ii) Regulation S Global Note (CUSIP             ), or
		
	_____	  	(iii) Unrestricted Global Note (CUSIP             ); or
		
	(b)	  	 
		
	_____	  	a Restricted Definitive Note; or
		
	(c)	  	 
		
	_____	  	an Unrestricted Definitive Note, in accordance with the terms of the Indenture.

  
  

 B-5 

 EXHIBIT C 
  
 FORM OF CERTIFICATE OF EXCHANGE 
  
 Grande Communications Holdings, Inc. 
 401 Carlson Circle 
 San Marcos, Texas 78666 
 Telecopier No.: (512) 878-4010 
  
 U.S. Bank National Association 
 60 Livingston Avenue 
 St. Paul, Minnesota 55107-2292 
 Attention: Corporate Finance Department 
  

	 	Re:	14% Senior Secured Notes due 2011 

  
 (CUSIP             ) 
  
 Reference is hereby made to the Indenture, dated as of March 23, 2004 (the “Indenture”), among Grande
Communications Holdings, Inc., as issuer (the “Company”), the Guarantors party thereto and U.S. Bank National Association, as trustee. Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.

  
                     , (the “Owner”) owns and proposes to exchange the Note[s] or interest in such Note[s] specified herein,
in the principal amount of $                     in such Note[s] or interests (the “Exchange”). In connection with the Exchange, the
Owner hereby certifies that: 
  
 1. Exchange of Restricted
Definitive Notes or Beneficial Interests in a Restricted Global Note for Unrestricted Definitive Notes or Beneficial Interests in an Unrestricted Global Note. 
  

(a)              Check if Exchange is from beneficial interest in a
Restricted Global Note to beneficial interest in an Unrestricted Global Note. In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for a beneficial interest in an Unrestricted Global Note in an equal
principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Global
Notes and pursuant to and in accordance with the Securities Act of 1933, as amended (the “Securities Act”), (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act and (iv) the beneficial interest in an Unrestricted Global Note is being acquired in compliance with any applicable blue sky securities laws of any state of the United States. 
  
 (b)
             Check if Exchange is from beneficial interest in a Restricted Global Note to Unrestricted Definitive Note. In connection with the Exchange of the Owner’s
beneficial interest in a Restricted Global Note for an Unrestricted Definitive Note, the Owner hereby certifies (i) the Definitive Note is being acquired for the Owner’s own account without transfer, 
  

 C-1 

 (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the
Restricted Global Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities
Act and (iv) the Definitive Note is being acquired in compliance with any applicable blue sky securities laws of any state of the United States. 
  
 (c)              Check if Exchange is from Restricted Definitive Note to
beneficial interest in an Unrestricted Global Note. In connection with the Owner’s Exchange of a Restricted Definitive Note for a beneficial interest in an Unrestricted Global Note, the Owner hereby certifies (i) the beneficial interest is
being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to Restricted Definitive Notes and pursuant to and in accordance with the Securities Act,
(iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the beneficial interest is being acquired in compliance with any
applicable blue sky securities laws of any state of the United States. 
  
 (d)              Check if Exchange is from Restricted Definitive Note to Unrestricted Definitive Note. In connection with the Owner’s Exchange of a Restricted
Definitive Note for an Unrestricted Definitive Note, the Owner hereby certifies the Unrestricted Definitive Note is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to Restricted Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act and (iv) the Unrestricted Definitive Note is being acquired in compliance with any applicable blue sky securities laws of any state of the United States. 
  
 2. Exchange of Restricted Definitive Notes or Beneficial Interests in
Restricted Global Notes for Restricted Definitive Notes or Beneficial Interests in Restricted Global Notes 
  
 (a)              Check if Exchange is from beneficial interest in a Restricted
Global Note to Restricted Definitive Note. In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for a Restricted Definitive Note with an equal principal amount, the Owner hereby certifies that the
Restricted Definitive Note is being acquired for the Owner’s own account without transfer. Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the Restricted Definitive Note issued will continue to be
subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Definitive Note and in the Indenture and the Securities Act. 
  
 (b)              Check if Exchange is from
Restricted Definitive Note to beneficial interest in a Restricted Global Note. In connection with the Exchange of the Owner’s Restricted Definitive Note for a beneficial interest in the [CHECK ONE] 
  
              144A Global Note,              Regulation S Global Note with an equal principal
amount, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner’s own account without transfer and (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Restricted
Global Notes and pursuant to and in accordance with the Securities Act, and in compliance with any applicable blue sky securities laws of any state of the United States. Upon consummation of the proposed Exchange in accordance with the terms of the
Indenture, the beneficial interest issued will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the relevant Restricted Global Note and in the Indenture and the Securities Act. 
  

 C-2 

 This certificate and the statements contained herein are made for your benefit and the benefit of the
Company. 
  

			
	 
	

	 [Insert Name of Transferor]

		
	By:	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

  
 Dated:                             
  

 C-3 

 EXHIBIT D 
  
 FORM OF CERTIFICATE FROM 
 ACQUIRING
INSTITUTIONAL ACCREDITED INVESTOR 
  
 Grande Communications Holdings, Inc.

 401 Carlson Circle 
 San Marcos, Texas 78666 
 Telecopier No.: (512) 878-4010 
  
 U.S. Bank National Association 
 60 Livingston Avenue 
 St. Paul, Minnesota 55107-2292 
 Attention: Corporate Finance Department 
  

	 	Re:	14% Senior Secured Notes due 2011 

  
 Reference is hereby made to the Indenture, dated as of March 23, 2004 (the “Indenture”), among Grande Communications Holdings, Inc., as issuer
(the “Company”), the Guarantors party thereto and U.S. Bank National Association, as trustee. Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture. 
  
 In connection with our proposed purchase of
$                     aggregate principal amount of: 
  

(a)              a beneficial interest in a Global Note, or 
  
 (b)
             a Definitive Note, we confirm that: 
  
 1. We understand that any subsequent transfer of the Notes or any interest therein is subject to certain restrictions and conditions set forth in the
Indenture and the undersigned agrees to be bound by, and not to resell, pledge or otherwise transfer the Notes or any interest therein except in compliance with, such restrictions and conditions and the Securities Act of 1933, as amended (the
“Securities Act”). 
  
 2. We understand that the offer
and sale of the Notes have not been registered under the Securities Act, and that the Notes and any interest therein may not be offered or sold except as permitted in the following sentence. We agree, on our own behalf and on behalf of any accounts
for which we are acting as hereinafter stated, that if we should sell the Notes or any interest therein, we will do so only (A) to the Company or any subsidiary 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 and, if such transfer is in respect of a principal amount of Notes, at the time of transfer of less than $250,000, an Opinion of Counsel in form reasonably acceptable to the Company to the
effect that such transfer is in compliance with the Securities Act, (D) outside the United States in accordance with Rule 904 of Regulation S under the Securities Act, (E) pursuant to the provisions of Rule 144(k) under the 

  

 D-1 

 
Securities Act or (F) pursuant to an effective registration statement under the Securities Act, and we further agree to provide to any Person purchasing the
Definitive Note or beneficial interest in a Global Note from us in a transaction meeting the requirements of clauses (A) through (E) of this paragraph a notice advising such purchaser that resales thereof are restricted as stated herein. 

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

			
	 
	

	 [Insert Name of Transferor]

		
	By:	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

  
 Dated: 
  

 D-2 

 EXHIBIT E 
  
 FORM OF SUBSIDIARY GUARANTEE NOTATION 
  
 For value received, each Guarantor (which term includes any successor Person under the Indenture) has, jointly and severally, unconditionally guaranteed,
to the extent set forth in the Indenture and subject to the provisions in the Indenture dated as of March 23, 2004 (the “Indenture”) among Grande Communications Holdings, Inc. (the “Company”), the Guarantors party thereto and
U.S. Bank National Association, as trustee (the “Trustee”), (a) the due and punctual payment of the principal of, premium and Liquidated Damages, if any, and interest on, the Notes, whether at maturity, by acceleration, redemption or
otherwise, the due and punctual payment of interest on overdue principal of and interest on the Notes, if any, if lawful, 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 (b) in 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. The obligations of the Guarantors to the Holders of Notes and to the Trustee pursuant to the Subsidiary Guarantee and the Indenture are expressly set forth in Article 10
of the Indenture and reference is hereby made to the Indenture for the precise terms of the Subsidiary Guarantee. Each Holder of a Note, by accepting the same agrees to and shall be bound by such provisions. 
  
 Capitalized terms used but not defined herein have the meanings given to them
in the Indenture. 
  

			
	[GUARANTOR]
		
	By:	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

  

 E-1 

 EXHIBIT F 
  
 FORM OF SUPPLEMENTAL INDENTURE 
 TO BE DELIVERED
BY SUBSEQUENT GUARANTORS 
  
 SUPPLEMENTAL INDENTURE (this
“Supplemental Indenture”), dated as of                     , 200    , among
                     (the “Guaranteeing Subsidiary”), a subsidiary of Grande Communications Holdings, Inc. (or its permitted
successor), a Delaware corporation (the “Company”), the Company, the other Guarantors (as defined in the Indenture referred to herein) and U.S. Bank National Association, as trustee under the Indenture referred to below (the
“Trustee”). 
  
 W I T N E S S E T H: 

 
 WHEREAS, the Company has heretofore executed and delivered to the Trustee
an indenture (the “Indenture”), dated as of March 23, 2004 providing for the issuance of 14% Senior Secured Notes due 2011 (the “Notes”); 
  
 WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental
indenture pursuant to which the Guaranteeing Subsidiary shall unconditionally guarantee all of the Company’s Obligations under the Notes and the Indenture on the terms and conditions set forth herein (the “Subsidiary Guarantee”); and

  
 WHEREAS, pursuant to Section 9.01 of the Indenture, the
Trustee is authorized to execute and deliver this Supplemental Indenture. 
  
 NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiary and the Trustee mutually covenant and agree for
the equal and ratable benefit of the Holders of the Notes as follows: 
  
 1. Capitalized Terms. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture. 
  
 2. Agreement To Guarantee. The Guaranteeing Subsidiary hereby agrees to provide an unconditional Guarantee on the terms and subject to the
conditions set forth in the Subsidiary Guarantee and in the Indenture including, but not limited to, Article 10 thereof. 
  
 3. Execution and Delivery. Each Guaranteeing Subsidiary agrees that the Subsidiary Guarantees shall remain in full force and effect notwithstanding
any failure to endorse on each Note a notation of such Subsidiary Guarantee. 
  
 4. No Recourse Against Others. No past, present or future director, officer, employee, incorporator, stockholder or agent of the Guaranteeing Subsidiary, as such, shall have any liability for any obligations of
the Company or any Guaranteeing Subsidiary under the Notes, any Subsidiary Guarantees, the Indenture or this Supplemental Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of the

  

 F-1 

 
Notes by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes. Such waiver
may not be effective to waive liabilities under the federal securities laws and it is the view of the SEC that such a waiver is against public policy. 
  
 5. New York Law To Govern. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE BUT
WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 
  
 6. Counterparts. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be
an original, but all of them together represent the same agreement. 
  
 7. Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof. 
  
 8. The Trustee. The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental
Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiary and the Company. 
  

 F-2 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed and
attested, all as of the date first above written. 
  
 Dated:
                    , 20     
  

			
	[GUARANTEEING SUBSIDIARY]
		
	 By:
	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

  

			
	GRANDE COMMUNICATIONS HOLDINGS, INC.
		
	By:	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

  

			
	[EXISTING GUARANTORS]
		
	By:	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

  

			
	 U.S. BANK NATIONAL ASSOCIATION,
as Trustee

		
	By:	 	 
	 	 	

	 	 	 Authorized Signatory

  

 F-3EXHIBIT 4.2

 Exhibit 4.2 
  

  
 EQUITY REGISTRATION RIGHTS
AGREEMENT 
  
 DATED AS OF MARCH 23, 2004 
  
 BY AND AMONG 
  
 GRANDE COMMUNICATIONS HOLDINGS, INC. 
  

AND 
  
 BEAR, STEARNS & CO. INC. 
  
 AND 
  
 DEUTSCHE BANK SECURITIES
INC. 
  

 This Equity Registration Rights Agreement (the “Agreement”) is made and entered into as
of March 23, 2004, by and among Grande Communications Holdings, Inc., a Delaware corporation (the “Company”) and Bear, Stearns & Co. Inc. and Deutsche Bank Securities Inc. (collectively, the “Initial
Purchasers”), who have agreed to purchase an aggregate of 136,000 Units, each consisting of $1,000 in aggregate principal amount at maturity of 14% Senior Secured Notes due 2011 (the “Notes”) of the Company and a warrant to
initially purchase 100.336 shares of the Company’s Common Stock (the “Units”), pursuant to the Purchase Agreement (as defined below). 
  
 This Agreement is made pursuant to the Purchase Agreement (the “Purchase Agreement”), dated as of March 9, 2004, by and among the
Company, the Guarantors named therein and the Initial Purchasers. To induce the Initial Purchasers to purchase the Units, the Company has agreed to provide the registration rights set forth in this Agreement. The execution and delivery of this
Agreement is a condition to the obligations of the Initial Purchasers set forth in Section 10(r) of the Purchase Agreement. Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in the Purchase Agreement.

  
 The parties hereby agree as follows: 
  

	SECTION 1.	DEFINITIONS. 

  
 As used in this Agreement, the following capitalized terms shall have the following meanings: 
  
 “Affiliate”: As defined in Rule 144 of the Securities Act.

  
 “Closing Date”: The date hereof. 

 
 “Common Stock”: The common stock, par value $0.001 per
share, of the Company. 
  
 “Demand Registration”:
As defined in Section 4 of this Agreement. 
  
 “Exchange
Act”: The Securities Exchange Act of 1934, as amended. 
  
 “Holder”: As defined in Section 2 hereof. 
  
 “Person”: Any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, government or any agency or political subdivision thereof or any other entity.

  
 “Prospectus”: The prospectus included in a
Registration Statement at the time such Registration Statement is declared effective, as supplemented by any prospectus supplement, and all material incorporated by reference into such prospectus. 
  
 “Public Equity Offering”: means an underwritten offering of
Common Stock pursuant to a registration statement that has been declared effective by the SEC pursuant to the 

 
Securities Act (other than a registration statement on Form S-8 or otherwise relating to equity securities issuable under any employee benefit plan of the
Company). 
  
 “Registrable Securities”: At any
time, any of (i) the Warrant Shares (whether or not the related Warrants have been exercised) and (ii) any other securities issued or issuable with respect to any Warrant Shares by way of stock dividends or stock split or in connection with a
combination of shares, recapitalization, merger, consolidation or other reorganization or otherwise. As to any particular Registrable Securities, such securities shall cease to be Registrable Securities when (a) a Registration Statement with respect
to the offering of such securities by the Holder thereof shall have been declared effective under the Securities Act and such securities shall have been disposed of by such Holder pursuant to such Registration Statement, (b) such securities have
been sold or are eligible to be sold to the public pursuant to Rule 144(k) (or any similar provisions then in force, but not Rule 144A) promulgated under the Securities Act, (c) such securities shall have been otherwise transferred by the Holder
thereof and new certificates for such securities not bearing a legend restricting further transfer shall have been delivered by the Company or its transfer agent and subsequent disposition of such securities shall not require registration or
qualification under the Securities Act or any similar state law then in force or (d) such securities shall have ceased to be outstanding. 
  
 “Registration”: As defined in Section 4 hereof. 
  

“Registration Statement”: Any registration statement of the Company relating to the registration for resale of Registrable Securities
that is filed pursuant to the provisions of this Agreement, including the Prospectus included therein, all amendments thereto (including post-effective amendments) and all exhibits and all material incorporated by reference therein. 
  
 “Requisite Securities”: A number of Registrable Securities
equal to not less than 5% of the then Registrable Securities held in aggregate by all Holders. 
  
 “SEC”: The Securities and Exchange Commission. 
  
 “Securities Act”: The Securities Act of 1933, as amended. 
  
 “Warrant Agreement”: The Warrant Agreement, dated as of the Closing Date, by and between the Company and
U.S. Bank National Association, as Warrant Agent. 
  
 “Warrant Shares”: The Common Stock or other securities that any Holder may acquire upon exercise of a Warrant, together with any other securities which such Holder may acquire on account of any such securities, including,
without limitation, as the result of any dividend or other distribution on Common Stock or any split or combination of such Common Stock as provided for in the Warrant Agreement. 
  
 “Warrants”: The warrants of the Company issued and sold pursuant to the Purchase Agreement and the Warrant
Agreement, together with any warrants issued in substitution or replacement therefor. 
  

 2 

	SECTION 2.	HOLDERS OF REGISTRABLE SECURITIES 

  
 A Person is deemed to be a Holder of Registrable Securities (a “Holder”) whenever such Person owns Registrable Securities or has the
right to acquire such Registrable Securities by exercising Warrants held by such Person, whether or not such acquisition has actually been effected. 
  

	SECTION 3.	REGISTRATION PROCEDURES. 

  
 In connection with any Demand Registration, the following provisions shall apply: 
  
 (a) The Company shall (i) furnish to the Holders, prior to the filing thereof with the Commission, a copy of the
Registration Statement (or amendment or supplement to a Registration Statement, if applicable) and each amendment thereof and each supplement, if any, to the Prospectus, which documents will be subject to the review and comment of such Holders in
connection with such sale, if any, for a period of at least five business days, and the Company will not file any such Registration Statement or related Prospectus or any amendment or supplement thereto to which such Selling Holders shall reasonably
object within five business days after the receipt thereof; provided that the Company may assume, for the purposes of this subparagraph (a), that objections to the inclusion of information specifically requested to be included in the
Registration Statement by the staff of the SEC, or in the opinion of counsel to the Company, required to be in the Registration Statement, or specifically required by applicable law, shall not be deemed to be reasonable; and (ii) include the names
of the Holders who propose to sell Registrable Securities pursuant to the Registration Statement as selling securityholders; provided that such information required by Section 4(b) hereof is provided to the Company in a a timely fashion. A
Selling Holder shall be deemed to have reasonably objected to such filing if such Registration Statement, amendment, related Prospectus or supplement, as applicable, as proposed to be filed, contains an untrue statement of a material fact or omit to
state any material fact necessary to make the statements therein not misleading or fails to comply with the applicable requirements of the Securities Act. 
  
 (b) The Company shall give written notice to the Initial Purchasers and the Holders: 
  
 (i) when the Registration Statement or any amendment thereto has been filed with the SEC and when the
Registration Statement or any post-effective amendment thereto has become effective; 
  
 (ii) of any request by the SEC for amendments or supplements to the Registration Statement or the Prospectus or for additional
information; 
  
 (iii) of the issuance by the SEC
of any stop order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose; 
  
 (iv) of the receipt by the Company or its legal counsel of any notification with respect to the suspension of the qualification of the
Registrable Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; and 
  

 3 

 (v) of the occurrence of any event that requires the Company to make changes in the
Registration Statement or the Prospectus in order that the Registration Statement or the Prospectus does not contain an untrue statement of a material fact nor omit to state a material fact required to be stated therein or necessary to make the
statements therein (in the case of the Prospectus, in light of the circumstances under which they were made) not misleading. 
  
 (c) The Company shall make every reasonable effort to obtain the withdrawal at the earliest possible time, of any order suspending the effectiveness of
the Registration Statement. 
  
 (d) The Company shall furnish to
each Holder, without charge, at least one copy of the Registration Statement and any post-effective amendment thereto, including financial statements and schedules, and, if the Holder so requests in writing, all exhibits thereto (including those, if
any, incorporated by reference). 
  
 (e) The Company shall, during
the period which the Registration Statement is effective, deliver to each Holder, without charge, as many copies of the Prospectus (including each preliminary Prospectus) included in the Registration Statement as such Holder may reasonably request.
The Company consents, subject to the provisions of this Agreement, to the use of the Prospectus by each of the Holders in connection with the offering and sale of Registrable Securities. 
  
 (f) Prior to any public offering of the Registrable Securities pursuant to any Registration Statement the Company shall
register or qualify or cooperate with the Holders and their respective counsel in connection with the registration or qualification of the Registrable Securities for offer and sale under the securities or “blue sky” laws of such states of
the United States as any Holder reasonably requests in writing and do any and all other acts or things necessary or advisable to enable the offer and sale in such jurisdictions of the Registrable Securities; provided, however, that the Company shall
not be required to (i) qualify generally to do business in any jurisdiction where it is not then so qualified or (ii) take any action which would subject it to general service of process or to taxation in any jurisdiction where it is not then so
subject. 
  
 (g) The Company shall cooperate with the Holders to
facilitate the timely preparation and delivery of certificates representing the Registrable Securities to be sold pursuant to any Registration Statement free of any restrictive legends and in such denominations and registered in such names as the
Holders may request a reasonable period of time prior to sales of the Registrable Securities pursuant to such Registration Statement. 
  
 (h) Upon the occurrence of any event contemplated by paragraphs (ii) through (v) of Section 3(b) above during the period for which the Company is required
to maintain an effective Registration Statement, the Company shall promptly prepare and file a post-effective amendment to the Registration Statement or a supplement to the related Prospectus and any other required document so that, as thereafter
delivered to Holders or purchasers of Securities, the Prospectus will not contain an untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. 
  

 4 

 (i) Not later than the effective date of the Registration Statement, the Company will provide a CUSIP
number for the Registrable Securities and provide the Warrant Agent with printed certificates for the Registrable Securities, in a form eligible for deposit with The Depository Trust Company. 
  
 (j) The Company will use its reasonable best efforts to comply with all rules
and regulations of the Commission to the extent and so long as they are applicable to the Registration and will make generally available to its security holders (or otherwise provide in accordance with Section 11(a) of the Securities Act) an
earnings statement satisfying the provisions of Section 11(a) of the Securities Act, no later than 45 days after the end of a 12-month period (or 90 days, if such period is a fiscal year) beginning with the first month of the Company’s first
fiscal quarter commencing after the effective date of the Registration Statement, which statement shall cover such 12-month period. 
  
 (k) The Company may require each Holder of Registrable Securities to be sold pursuant to the Registration Statement to furnish to the Company such
information regarding the Holder and the distribution of the Registrable Securities as the Company may from time to time reasonably require for inclusion in the Registration Statement, and the Company may exclude from such registration the
Registrable Securities of any Holder that fails to furnish such information within a reasonable time after receiving such request. 
  
 (l) The Company shall enter into such customary agreements and take all such other action, if any, in order to facilitate the disposition of the
Registrable Securities pursuant to any Demand Registration. 
  
 (m) The Company shall (i) make reasonably available for inspection by the Holders of the Registrable Securities and any attorney, accountant or other agent retained by the Holders of the Registrable Securities all relevant financial and
other records, pertinent corporate documents and properties of the Company and (ii) cause the Company’s officers, directors, employees, accountants and auditors to supply all relevant information reasonably requested by the Holders of the
Registrable Securities or any such attorney, accountant or agent in connection with the Registration Statement, in each case, as shall be reasonably necessary to enable such Persons, to conduct a reasonable investigation within the meaning of
Section 11 of the Securities Act; provided, however, that the foregoing inspection and information gathering shall be coordinated by the Initial Purchasers and on behalf of the other parties, by one counsel selected by such other
parties; provided further, however, that any such records, documents, properties and such information that is designated in writing by the Company, in good faith, as confidential at the time of delivery of such records, documents, properties
or information shall be kept confidential by any such Persons and shall be used only in connection with such Registration Statement, unless disclosure thereto is made in connection with a court proceeding or required by law (it being understood that
such Persons (and any employee, representative or other agent of such Person) may disclose to any and all Persons, without limitation of any kind, the tax treatment and tax structure of the transactions contemplated in the Registration Statement and
all materials of any kind (including such records, documents, properties or information and opinions or other tax analyses) that are provided to it relating to such tax treatment and tax structure), or such information has become available (not in
violation of this Agreement) to the public generally or through a third party without an accompanying obligation of confidentiality. 
  

 5 

 (n) In connection with the preparation and filing of any Registration Statement pursuant to this
Agreement, the Company will provide to the Holders, their underwriters, if any, and their respective counsel, accountants and other representatives and agents the opportunity to participate in the preparation of such Registration Statement, each
Prospectus included therein or filed with the Commission, and each amendment thereof or supplement thereto. 
  
 (o) The Company, if requested by any Holder of Registrable Securities, shall cause (i) its counsel to deliver an opinion and updates thereof relating to
the Registrable Securities in customary form addressed to such Holders thereof and dated, in the case of the initial opinion, the effective date of such Registration Statement (it being agreed that the matters to be covered by such opinion shall
include, without limitation, the due incorporation and good standing of the Company and its subsidiaries; the qualification of the Company and its subsidiaries to transact business as foreign corporations, partnerships or limited liability
companies, as applicable; the due authorization, execution and delivery of the relevant agreement of the type referred to in Section 3(a) hereof; the due authorization, execution, authentication and issuance, and the validity and enforceability, of
the applicable Securities; the absence of material legal or governmental proceedings involving the Company and its subsidiaries; the absence of governmental approvals required to be obtained in connection with the Registration Statement, the
offering and sale of the applicable Registrable Securities, or any agreement of the type referred to in Section 3(a) hereof; the compliance as to form of such Registration Statement and any documents incorporated by reference therein; and, as of the
date of the opinion and as of the effective date of the Registration Statement or most recent post-effective amendment thereto, as the case may be, the absence from such Registration Statement and the Prospectus included therein, as then amended or
supplemented, and from any documents incorporated by reference therein of an untrue statement of a material fact or the omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case
of the Prospectus, in light of the circumstances under which they were made) not misleading (in the case of any such documents, in the light of the circumstances existing at the time that such documents were filed with the SEC under the Exchange
Act); (ii) its independent public accountants to provide to the Holders a comfort letter in customary form and covering matters of the type customarily covered in comfort letters in connection with primary underwritten offerings, subject to receipt
of appropriate documentation as contemplated, and only if permitted, by Statement of Auditing Standards No. 72; and (iii) use its reasonable best efforts to cause the disposition of the Registrable Securities covered by the Registration Statement to
be registered with or approved by such other governmental agencies or authorities as may be necessary to enable the seller or sellers thereof to consummate the disposition of such Registrable Securities. 
  
 If any such Registration Statement refers to any Holder by name or otherwise
as the holder or any securities of the Company, then such Holder shall have the right to require (i) the insertion therein of language, in form and substance reasonably satisfactory to such Holder, to the effect that the holding by such Holder of
such securities is not to be construed as a recommendation by such Holder of the investment quality of the Company’s securities covered thereby and that such holding does not imply that such Holder will assist in meeting any future financial
requirements of the Company, or (ii) in the event that such reference to such Holder by name or otherwise is not required by the Securities Act or any similar Federal statute then in force, the deletion of the reference to such Holder in any
amendment or supplement to the 

  

 6 

 
Registration Statement filed or prepared subsequent to the time that such reference ceases to be required. 
  

	SECTION 4.	DEMAND REGISTRATION. 

  
 (a) Upon receipt of a written request (a “Demand Request”) from the Holders of Requisite Securities, subject to Section 4(c), the Company
shall, as promptly as practicable prepare and cause to be filed with the SEC pursuant to Rule 415 under the Securities Act a Registration Statement on the appropriate form relating to resales of all Registrable Securities (“Demand
Registration”). In addition to the foregoing, the Company may, at any time prior to the receipt of a Demand Request, at its option, prepare and cause to be filed with the SEC pursuant to Rule 415 under the Act a Registration Statement on
the appropriate form relating to resales of all Registrable Securities (a “Company Registration,” either of the Demand Registration or Company Registration being referred to herein as a “Registration”). The Company
shall use its reasonable best efforts to cause any such Registration Statement to be declared effective by the SEC. 
  
 To the extent necessary to ensure that the Registration Statement is available for sales of Registrable Securities by the Holders thereof entitled to the
benefit of this Section 4(a), the Company shall use its reasonable best efforts to keep any Registration Statement required by this Section 4(a) continuously effective, supplemented, amended and current as required by and subject to the provisions
of Section 4(a) hereof and in conformity in all material respects with the requirements of this Agreement, the Securities Act and the rules and regulations of the Commission promulgated thereunder from time to time (including (A) preparing and
filing with the SEC such amendments and post-effective amendments to the Registration Statement as may be necessary to keep such Registration Statement effective; (B) causing the Prospectus to be supplemented by any required Prospectus supplement,
and as so supplemented to be filed pursuant to Rule 424 under the Securities Act, and complying with Rules 424, 430A and 462, as applicable, under the Securities Act in a timely manner; and (C) complying with the provisions of the Securities Act
with respect to the disposition of all securities covered by such Registration Statement), until the second anniversary of the effective date of the Registration Statement; provided that such obligation shall expire before such date if all the
Registrable Securities covered by the Registration Statement (i) have been sold pursuant thereto or (ii) are no longer Restricted Securities. 
  
 (b) No Holder may include any of its Registrable Securities in any Registration Statement pursuant to this Agreement unless and until such Holder
furnishes to the Company in writing, within 20 days after receipt of a request therefor, the information specified in Item 507 or 508 of Regulation S-K, as applicable, of the Securities Act for use in connection with any Registration Statement or
Prospectus or preliminary Prospectus included therein. Each selling Holder agrees to promptly furnish additional information required to be disclosed in order to make the information previously furnished to the Company by such Holder not materially
misleading. 
  
 (c) The Company shall be required to effect no
more than four (4) Registrations (including any Company Registration) pursuant to this Section 4, and only one (1) such Registration shall be required to become effective in any 180-day period. The Company shall be 

  

 7 

 
deemed not to have used its best efforts to keep the Registration Statement effective during the requisite period if it voluntarily takes any action that
would result in Holders of Registrable Securities covered thereby not being able to offer and sell such Registrable Securities during that period, unless such action is required by applicable law or this Agreement. In lieu of effecting a
Registration pursuant to this Section 4, the Company may elect to amend or supplement a Registration Statement that has been previously been filed and declared effective pursuant to a Demand Registration or a Company Registration to add such
requesting Holders’ Registrable Shares to such Registration Statement provided that such amendment or supplement is permitted by applicable law. In such case, the Company’s obligations with respect to such Registration shall be satisfied.

  
 (d) If the Company receives a Demand Request during a
“lock-up” or “black out” period (the “Lock Up Period”) imposed on the Company pursuant to or in connection with any underwriting or purchase agreement relating to a Rule 144A offering or a registered public
offering of Common Stock or securities convertible into or exchangeable for Common Stock, the Company shall not be required to file a Registration Statement prior to the end of the Lock Up Period; provided that such Lock Up Period shall not exceed
90 days or, in the case of the Company’s initial Public Equity Offering, 180 days. In such event, the Company shall use its reasonable best efforts to cause the Registration Statement to become effective no later than the later of (i) 180 days
after receipt of the Demand Request and (ii) 60 days after the end of the Lock Up Period. The Company shall notify the Holders within 10 days of the imposition of any Lock Up Period on the Company. 
  

	SECTION 5.	LIMITATIONS, CONDITIONS AND QUALIFICATIONS TO OBLIGATIONS UNDER REGISTRATION COVENANTS. 

  
 The obligations of the Company described in Section 4 of this Agreement are subject to each of the following limitations,
conditions and qualifications: 
  
 (a) Subject to the next
sentence of this paragraph, the Company shall be entitled to postpone, for a reasonable period of time, the filing of, or suspend the effectiveness of or suspend the right of any Holder to make sales pursuant to, any Registration Statement otherwise
required to be prepared, filed and made and kept effective by it under the registration covenants described in Section 4 hereof; provided, however, that the duration of such postponement or suspension may not exceed 135 days in any
365-day period. Such postponement or suspension may be effected only if (i) (A) an event or circumstance occurs and is continuing as a result of which such Registration Statement, any related Prospectus or any document incorporated therein by
reference as then amended or supplemented or proposed to be filed would, in the Company’s good faith judgment, contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading and (B)(1) the Company determines in its good faith judgment that the disclosure of the event at that time would have a material adverse effect on the business, operations or
prospects of the Company or (2) the disclosure otherwise relates to a material business transaction or development that has not yet been publicly disclosed or (ii) the Company shall have received a notice referred to Section 3(b)(iii) hereof. If the
Company shall so postpone the filing or effectiveness of, or suspend the rights of any Holders to make sales pursuant to, a Registration Statement it shall, as promptly as possible, notify the Holders of such 

  

 8 

 
determination (in each case, a “Suspension Notice”). Upon receipt of such Suspension Notice, each Holder will forthwith discontinue
disposition of Registrable Securities pursuant to the Registration Statement until (i) such Holder has received copies of the supplemented or amended Prospectus contemplated by Section 3(h) hereof, or (ii) such Holder is advised in writing by the
Company that the use of the Prospectus may be resumed, and has received copies of any additional or supplemental filings that are incorporated by reference in the Prospectus (in each case, the “Recommencement Date”). Each Holder
receiving a Suspension Notice hereby agrees that it will either (i) destroy any Prospectuses, other than permanent file copies, then in such Holder’s possession which have been replaced by the Company with more recently dated Prospectuses or
(ii) deliver to the Company (at the Company’s expense) all copies, other than permanent file copies, then in such Holder’s possession of the Prospectus covering such Registrable Securities that was current at the time of receipt of the
Suspension Notice. The Holders shall (x) have the right, in the case of a postponement of the filing or effectiveness of a Registration Statement, upon the affirmative vote of the Holders of not less than a majority of the Registrable Securities, to
withdraw any Demand Request by giving written notice to the Company within 10 days after receipt of such notice, or (y) in the case of a suspension of the right to make sales, receive an extension of the registration period equal to the number of
days of the suspension. Any Demand Registration as to which the withdrawal election referred to in the preceding sentence has been effected shall not be counted for purposes of the Demand Registration referred to in Section 4 hereof. No such
withdrawal shall impair the right of the Company to effect a Company Registration after the Recommencement Date. The time period regarding the effectiveness of such Registration Statement set forth in Section 4 hereof, as applicable, shall be
extended by a number of days equal to the number of days in the period from and including the date of delivery of the Suspension Notice to the date of delivery of the Recommencement Date. 
  
 (b) The Company’s obligations shall be subject to the obligations of the Holders to furnish all information and
materials and not to take any and all actions as may be required under Federal and state securities laws and regulations to permit the Company to comply with all applicable requirements of the SEC and to obtain any acceleration of the effective date
of such Registration Statement. 
  
 (c) The Company shall not be
obligated to cause any special audit of its financial statements to be undertaken in connection with any Registration pursuant to this Agreement. 
  
 (d) Each Holder agrees, if and to the extent reasonably requested by the managing underwriter or underwriters in a Public Equity Offering, not to effect
any public sale or distribution of Registrable Securities, including a sale pursuant to Rule 144 (except as part of such Public Equity Offering), during the 90-day period beginning on the closing date of any such Public Equity Offering (which period
may be 180 days in the case of the Company’s initial Public Equity Offering), to the extent timely notified in writing by the Company or such managing underwriter or underwriters. In the event that the Company is not otherwise in compliance
with the provisions of this Agreement at the time the Holders receive any notice pursuant to this Section 5(d), the Holders shall not be required to comply with this Section 5(d). In addition, the provisions of this Section 5(d) shall not apply to
any Holder of Registrable Securities if such Holder is prevented by applicable statute or regulation from entering into any such agreement; provided that any such Holder shall undertake not to effect any public sale or 

  

 9 

 
distribution of any Registrable Securities commencing on the closing date of any such Public Equity Offering unless it has provided 45 days’ prior
written notice of such sale or distribution to the managing underwriter or underwriters. 
  

	SECTION 6.	REGISTRATION EXPENSES. 

  
 (a) All expenses incident to the Company’s performance of and compliance with this Agreement will be borne by the Company, regardless of whether a
Registration Statement is ever filed or becomes effective, including without limitation: 
  
 (i) all registration and filing fees and expenses; 
  
 (ii) all fees and expenses of compliance with federal securities and state “blue sky” or
securities laws; 
  
 (iii) all expenses of
printing (including printing certificates for the Securities to be issued in the Registration and printing of Prospectuses), messenger and delivery services and telephone usage; 
  
 (iv) all fees and disbursements of counsel for the Company; and 
  
 (v) all fees and disbursements of independent certified
public accountants of the Company (including the expenses of any special audit required by or incident to such performance). 
  
 (b) The Company will bear its internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal
or accounting duties), the expenses of any annual audit and the fees and expenses of any Person, including special experts, retained by the Company. 
  
 (c) The Holders shall pay the underwriting discounts, commissions, and transfer taxes, if any, in connection with the Registration Statement requested
under Section 4 which costs shall be allocated pro rata among all Holders on whose behalf Registrable Securities of the Company are included in such registration on the basis of the respective amounts of the Registrable Securities then being
registered on their behalf. 
  

	SECTION 7.	INDEMNIFICATION. 

  
 (a) The Company agrees to indemnify and hold harmless each Holder and each Person, if any, who controls such Holder within the meaning of the Securities
Act or the Exchange Act from and against any losses, claims, damages or liabilities, joint or several, or any actions in respect thereof (including, but not limited to, any losses, claims, damages, liabilities or actions relating to purchases and
sales of the Registrable Securities) to which each Indemnified Party (as defined in Section 7(c) below) may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities or actions arise
out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or Prospectus or in any amendment or supplement thereto or in any preliminary Prospectus relating to a Registration,
or arise out of, or are based 

  

 10 

 
upon, the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the
case of the Prospectus, in light of the circumstances under which they were made) not misleading, and shall reimburse, as incurred, the Indemnified Parties for any legal or other expenses reasonably incurred by them in connection with investigating
or defending any such loss, claim, damage, liability or action in respect thereof; provided, however, that (i) the Company shall not be liable in any such case to the extent that such loss, claim, damage or liability arises out of or
is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement or Prospectus or in any amendment or supplement thereto or in any preliminary Prospectus relating to a Registration
Statement in reliance upon and in conformity with written information pertaining to such Holder and furnished to the Company by or on behalf of such Holder specifically for inclusion therein and (ii) with respect to any untrue statement or omission
or alleged untrue statement or omission made in any preliminary Prospectus relating to the Registration Statement, the indemnity agreement contained in this subsection (a) shall not inure to the benefit of any Holder from whom the Person asserting
any such losses, claims, damages or liabilities purchased the Registrable Securities concerned, to the extent that the Prospectus was required to be delivered by such Holder under the Securities Act in connection with such purchase and any such
loss, claim, damage or liability of such Holder results from the fact that there was not sent or given to such Person, at or prior to the written confirmation of the sale of such Registrable Securities to such Person, a copy of the final Prospectus
if the Company had previously furnished copies thereof to such Holder; provided further, however, that this indemnity agreement will be in addition to any liability which the Company may otherwise have to such Indemnified Party. 
  
 (b) Each Holder of the Registrable Securities, severally and not jointly,
will indemnify and hold harmless the Company and each Person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act from and against any losses, claims, damages or liabilities or any actions in respect
thereof, to which the Company or any such controlling Person may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities or actions arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained in a Registration Statement or Prospectus or in any amendment or supplement thereto or in any preliminary Prospectus relating to a Registration Statement, or arise out of or are
based upon the omission or alleged omission to state therein a material fact necessary to make the statements therein (in the case of the Prospectus, in light of the circumstances under which they were made) not misleading, but in each case only to
the extent that the untrue statement or omission or alleged untrue statement or omission was made in reliance upon and in conformity with written information pertaining to such Holder and furnished to the Company by or on behalf of such Holder
specifically for inclusion therein; and, subject to the limitation set forth immediately preceding this clause, shall reimburse, as incurred, the Company for any legal or other expenses reasonably incurred by the Company or any such controlling
Person in connection with investigating or defending any loss, claim, damage, liability or action in respect thereof. This indemnity agreement will be in addition to any liability which such Holder may otherwise have to the Company or any of its
controlling Persons. 
  
 (c) Promptly after receipt by any Person
in respect of which indemnity may be sought pursuant to Section 7(a) or (b) (any such Person, an “Indemnified Party”) under this Section 7 of 

  

 11 

 
notice of the commencement of any action or proceeding (including a governmental investigation), such Indemnified Party will, if a claim in respect thereof
is to be made against the indemnifying party under this Section 7, notify the indemnifying party of the commencement thereof; but the omission so to notify the indemnifying party will not, in any event, relieve the indemnifying party from any
obligations to any Indemnified Party other than the indemnification obligation provided in paragraph (a) or (b) above. In case any such action is brought against any Indemnified Party, and it notifies the indemnifying party of the commencement
thereof, the indemnifying party will be entitled to participate therein and, to the extent that it may wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such
Indemnified Party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and after notice from the indemnifying party to such Indemnified Party of its election so to assume the defense thereof the
indemnifying party will not be liable to such Indemnified Party under this Section 7 for any legal or other expenses, other than reasonable costs of investigation, subsequently incurred by such Indemnified Party in connection with the defense
thereof. No indemnifying party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending or threatened action in respect of which any Indemnified Party is or could have been a party and indemnity could
have been sought hereunder by such Indemnified Party unless such settlement includes an unconditional release of such Indemnified Party from all liability on any claims that are the subject matter of such action, and does not include a statement as
to or an admission of fault, culpability or a failure to act by or on behalf of any Indemnified Party. The indemnifying party shall not be liable for the costs and expenses of any settlement of such action effected by such Indemnified Party without
the consent of the indemnifying party, which consent shall not be unreasonably withheld. 
  
 (d) If the indemnification provided for in this Section 7 is unavailable or insufficient to hold harmless an Indemnified Party under subsections (a) or (b) above, then each indemnifying party shall contribute to the
amount paid or payable by such Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to in subsection (a) or (b) above (i) in such proportion as is appropriate to reflect the relative
benefits received by the indemnifying party or parties on the one hand and the Indemnified Party on the other from the sale of the Registrable Securities by the Holders, or (ii) if the allocation provided by the foregoing clause (i) is not permitted
by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying party or parties on the one hand and the Indemnified Party on the other
in connection with the statements or omissions that resulted in such losses, claims, damages or liabilities (or actions in respect thereof) as well as any other relevant equitable considerations. The relative fault of the parties shall be determined
by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company on the one hand or such Holder or such
other Indemnified Party, as the case may be, on the other, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid by an Indemnified Party as a result
of the losses, claims, damages or liabilities referred to in the first sentence of this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending
any action or claim which is the subject of this subsection (d). Notwithstanding any other provision of this Section 7(d), the Holders of the 

  

 12 

 
Registrable Securities shall not be required to contribute any amount in excess of the amount by which the net proceeds received by such Holders from the
sale of the Registrable Securities pursuant to the Registration Statement exceeds the amount of damages which such Holders have otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No
Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this subsection (d),
each Person, if any, who controls such Indemnified Party within the meaning of the Securities Act or the Exchange Act shall have the same rights to contribution as such Indemnified Party, and each Person, if any, who controls the Company within the
meaning of the Securities Act or the Exchange Act shall have the same rights to contribution as the Company. 
  
 (e) The indemnification required by this Section 7 shall be made by periodic payments of the amount thereof during the course of the investigation or
defense, as and when bills with reasonably sufficient detail thereof are received or a loss is incurred. 
  
 (f) The agreements contained in this Section 7 shall survive the sale of the Registrable Securities pursuant to the Registration Statement and shall
remain in full force and effect, regardless of any termination or cancellation of this Agreement or any investigation made by or on behalf of any Indemnified Party. 
  

	SECTION 8.	RULE 144A AND RULE 144. 

  
 The Company shall use its reasonable best efforts to file the reports required to be filed by it under the Securities Act and the Exchange Act in a timely
manner and, if at any time the Company is not required to file such reports, it will, upon the request of any Holder, make publicly available other information so long as necessary to permit sales of their securities pursuant to Rules 144 and 144A.
The Company covenants that it will take such further action as any Holder may reasonably request, all to the extent required from time to time to enable such Holder to sell Registrable Securities without registration under the Securities Act within
the limitation of the exemptions provided by Rules 144 and 144A (including the requirements of Rule 144A(d)(4)). The Company will provide a copy of this Agreement to prospective purchasers of Registrable Securities identified to the Company by the
Initial Purchasers upon request. Upon the request of any Holder, the Company shall deliver to such Holder a written statement as to whether it has complied with such requirements. Notwithstanding the foregoing, nothing in this Section 8 shall be
deemed to require the Company to register any of its securities pursuant to the Exchange Act. 
  

	SECTION 9.	MISCELLANEOUS. 

  
 (a) Remedies. The Company acknowledges and agrees that any failure by the Company to comply with its obligations under Section 4 hereof may result
in material irreparable injury to the Holders for which there is no adequate remedy at law, that it will not be possible to measure damages for such injuries precisely and that, in the event of any such failure, any Holder may obtain such relief as
may be required to specifically enforce the Company’s obligations under Section 4 hereof. The Company further agrees to waive the defense in any action for specific performance that a remedy at law would be adequate. 
  

 13 

 (b) No Inconsistent Agreements. The Company will not on or after the date of this Agreement enter
into any agreement with respect to its securities that is inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. The rights granted to the Holders hereunder do not in any way conflict
with and are not inconsistent with the rights granted to the holders of the Company’s securities under any agreement in effect on the date hereof. 
  
 (c) Actions Affecting Registrable Securities. The Company shall not, directly or indirectly, take any action with respect to the Registrable
Securities as a class that would adversely affect the ability of the Holders of Registrable Securities to include such Registrable Securities in a registration undertaken pursuant to this Agreement. 
  
 (d) Amendments and Waivers. The provisions of this Agreement may not
be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, except by the Company and the written or electronic consent of the Holders of a majority of the Registrable Securities affected
by such amendment, modification, supplement, waiver or consent. In such case, such amendment, modification, supplement, waiver or consent may be effected without the consent of the Initial Purchasers. 
  
 (e) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, first-class mail, facsimile transmission, or air courier which guarantees overnight delivery: 
  
 (1) if to a Holder of the Securities, at the most current address given by such Holder to the Company or Warrant Agent. 
  
 (2) if to the Company, at its address as follows:

  
 Grande Communications Holdings, Inc.

 401 Carlson Circle 
 San Marcos, Texas 78666 
 Attention: General Counsel 
 Fax No.: (512) 878-4010 
  
 with a copy to: 
  
 Hogan & Hartson L.L.P. 
 555 13th Street, N.W. 
 Washington, D.C. 20004 
 Attention: Steven M. Kaufman, Esq. 
 Fax No.: (202) 637-5910 
  
 (3) if to the Warrant Agent, at its address as follows: 
  
 U.S. Bank National Association 
 60 Livingston Avenue 
 St. Paul, Minnesota 55107 
 Telecopier No.: (651) 495-8097 
 Attention: Frank Leslie 
  

 14 

 All such notices and communications shall be deemed to have been duly given: at the time delivered by
hand, if personally delivered; three business days after being deposited in the mail, postage prepaid, if mailed; when receipt is acknowledged by recipient’s facsimile machine operator, if sent by facsimile transmission; and on the day
delivered, if sent by overnight air courier guaranteeing next day delivery. 
  
 (f) Third Party Beneficiaries. It is expressly understood and agreed that each Holder is intended to be a beneficiary of the Company’s covenants contained in this Agreement to the same extent as if those
covenants were made directly to such Holder by the Company, and each such Holder shall have the right to take action against the Company to enforce, and obtain damages for any breach of, those covenants. 
  
 (g) Successors and Assigns. This Agreement shall be binding upon the
Company and its successors and assigns. 
  
 (h)
Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute
one and the same agreement. 
  
 (i) Headings. The headings
in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. 
  
 (j) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAWS. 
  
 (k) Severability. If
any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby. 
  
 (l) Securities Held by the Company. Whenever the consent or approval of Holders of a specified percentage of Registrable Securities is required hereunder, Registrable Securities held by the Company or its
Affiliates (other than subsequent Holders of Registrable Securities if such subsequent Holders are deemed to be Affiliates solely by reason of their holdings of such Registrable Securities) shall not be counted in determining whether such consent or
approval was given by the Holders of such required percentage. 
  
 [Signature Page Follows] 
  

 15 

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

  
  

			
	GRANDE COMMUNICATIONS HOLDINGS, INC.
		
	By:	 	  

	 	 	Name:
	 	 	Title:

  

			
	BEAR, STEARNS & CO. INC.
		
	By:	 	  

	 	 	Name:
	 	 	Title:

  
  

			
	DEUTSCHE BANK SECURITIES INC.
		
	By:	 	  

	 	 	Name:
	 	 	Title:
		
	By:	 	  

	 	 	Name:
	 	 	Title:

  

 S-1

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