Document:

EXHIBIT 4.8

 

INTERLINE BRANDS, INC.

A NEW JERSEY CORPORATION

 

AND

 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

 

TRUSTEE

 

FORM OF SUBORDINATED DEBT INDENTURE

 

GUARANTEED TO THE EXTENT SET FORTH HEREIN

BY THE GUARANTORS NAMED HEREIN

 

DATED AS OF
                        ,
20    

 

 

INTERLINE BRANDS, INC.

 

Reconciliation and tie between Trust Indenture Act of 1939

and Indenture, dated as of
                            ,
20  

 

	
  TRUST INDENTURE ACT SECTION

  	
   

  	
  INDENTURE SECTION

  
	
   

  	
   

  	
   

  
	
  310(a)

  	
  (1)

  	
   

  	
   

  	
  6.09

  
	
  (a)

  	
  (2)

  	
   

  	
   

  	
  6.09

  
	
  (a)

  	
  (3)

  	
   

  	
   

  	
  Not
  Applicable

  
	
  (a)

  	
  (4)

  	
   

  	
   

  	
  Not
  Applicable

  
	
  (b)

  	
   

  	
   

  	
   

  	
  6.08,
  6.10

  
	
  311(a)

  	
   

  	
   

  	
   

  	
  6.13

  
	
  (b)

  	
   

  	
   

  	
   

  	
  6.13

  
	
  (b)

  	
  (2)

  	
   

  	
   

  	
  7.03(a),
  7.03(b)

  
	
  312(a)

  	
   

  	
   

  	
   

  	
  7.01,
  7.02(a)

  
	
  (b)

  	
   

  	
   

  	
   

  	
  7.02(b)

  
	
  (c)

  	
   

  	
   

  	
   

  	
  7.02(c)

  
	
  313(a)

  	
   

  	
   

  	
   

  	
  7.03(a)

  
	
  (b)

  	
   

  	
   

  	
   

  	
  7.03(a)

  
	
  (c)

  	
   

  	
   

  	
   

  	
  7.03(a),
  7.03(b)

  
	
  (d)

  	
   

  	
   

  	
   

  	
  7.03(b)

  
	
  314(a)

  	
   

  	
   

  	
   

  	
  7.04

  
	
  (b)

  	
   

  	
   

  	
   

  	
  Not
  Applicable

  
	
  (c)

  	
  (1)

  	
   

  	
   

  	
  1.02

  
	
  (c)

  	
  (2)

  	
   

  	
   

  	
  1.02

  
	
  (c)

  	
  (3)

  	
   

  	
   

  	
  Not
  Applicable

  
	
  (d)

  	
   

  	
   

  	
   

  	
  Not
  Applicable

  
	
  (e)

  	
   

  	
   

  	
   

  	
  1.02

  
	
  315(a)

  	
   

  	
   

  	
   

  	
  6.01(a)

  
	
  (b)

  	
   

  	
   

  	
   

  	
  6.02,
  7.03(a)

  
	
  (c)

  	
   

  	
   

  	
   

  	
  6.01(b)

  
	
  (d)

  	
   

  	
   

  	
   

  	
  6.01(c)

  
	
  (d)

  	
  (1)

  	
   

  	
   

  	
  6.01(a),
  6.01(c)

  
	
  (d)

  	
  (2)

  	
   

  	
   

  	
  6.01(c)

  
	
  (d)

  	
  (3)

  	
   

  	
   

  	
  6.01(c)

  
	
  (e)

  	
   

  	
   

  	
   

  	
  5.14

  
	
  316(a)

  	
  (1)(A)

  	
   

  	
   

  	
  5.12

  
	
  (a)

  	
  (1)(B)

  	
   

  	
   

  	
  5.02,
  5.13

  
	
  (a)

  	
  (2)

  	
   

  	
   

  	
  Not
  Applicable

  
	
  (b)

  	
   

  	
   

  	
   

  	
  5.08

  
	
  (c)

  	
   

  	
   

  	
   

  	
  1.04(e)

  
	
  317(a)

  	
  (1)

  	
   

  	
   

  	
  5.03

  
	
  (a)

  	
  (2)

  	
   

  	
   

  	
  5.04

  
	
  (b)

  	
   

  	
   

  	
   

  	
  10.05

  
	
  318(a)

  	
   

  	
   

  	
   

  	
  1.07

  

 

i

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  
	
  DEFINITIONS AND OTHER PROVISIONS
  OF GENERAL APPLICATION

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Definitions

  	
   

  	
  5

  
	
   

  	
  Compliance Certificates and
  Opinions

  	
   

  	
  10

  
	
   

  	
  Form of Documents Delivered
  to Trustee

  	
   

  	
  10

  
	
   

  	
  Acts of Holders

  	
   

  	
  11

  
	
   

  	
  Notices, Etc.,

  	
   

  	
  12

  
	
   

  	
  Notice to Holders; Waiver

  	
   

  	
  12

  
	
   

  	
  Conflict with Trust Indenture Act

  	
   

  	
  12

  
	
   

  	
  Effect of Headings and Table of
  Contents

  	
   

  	
  12

  
	
   

  	
  Successors and Assigns

  	
   

  	
  13

  
	
   

  	
  Separability Clause

  	
   

  	
  13

  
	
   

  	
  Benefits of Indenture

  	
   

  	
  13

  
	
   

  	
  Governing Law

  	
   

  	
  13

  
	
   

  	
  Legal Holidays

  	
   

  	
  13

  
	
   

  	
  No Recourse Against Others

  	
   

  	
  13

  
	
   

  	
  Judgment Currency

  	
   

  	
  13

  
	
   

  	
  Counterparts

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  SECURITY FORMS

  	
   

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Forms Generally

  	
   

  	
  14

  
	
   

  	
  Form of Face of Security

  	
   

  	
  14

  
	
   

  	
  Form of Reverse of Security

  	
   

  	
  15

  
	
   

  	
  Form of Trustee’s Certificate
  of Authentication

  	
   

  	
  20

  
	
   

  	
  Securities in Global Form

  	
   

  	
  20

  
	
   

  	
  Form of Legend for the
  Securities in Global Form

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  THE SECURITIES

  	
   

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Amount Unlimited; Issuable in
  Series

  	
   

  	
  21

  
	
   

  	
  Denominations

  	
   

  	
  23

  
	
   

  	
  Execution, Authentication,
  Delivery and Dating

  	
   

  	
  23

  
	
   

  	
  Temporary Securities

  	
   

  	
  24

  
	
   

  	
  Registration, Registration of
  Transfer and Exchange

  	
   

  	
  24

  
	
   

  	
  Mutilated, Destroyed, Lost and
  Stolen Securities

  	
   

  	
  26

  
	
   

  	
  Payment of Interest; Interest
  Rights Preserved

  	
   

  	
  26

  
	
   

  	
  Persons Deemed Owners

  	
   

  	
  27

  
	
   

  	
  Cancellation

  	
   

  	
  27

  
	
   

  	
  Computation of Interest

  	
   

  	
  28

  
	
   

  	
  CUSIP Number

  	
   

  	
  28

  
	
   

  	
  Wire Transfers

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
  SATISFACTION AND DISCHARGE

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Satisfaction and Discharge of
  Indenture

  	
   

  	
  28

  
	
   

  	
  Application of Trust Money

  	
   

  	
  28

  
	
   

  	
  Application to a Specific
  Series of Securities

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  REMEDIES

  	
  29

  
	
   

  	
   

  
	
   

  	
  Events of Default

  	
   

  	
  29

  
	
   

  	
  Acceleration of Maturity;
  Rescission and Annulment

  	
   

  	
  30

  
	
   

  	
  Collection of Indebtedness and
  Suits for Enforcement by Trustee

  	
   

  	
  30

  
	
   

  	
  Trustee May File Proofs of
  Claim

  	
   

  	
  31

  
	
   

  	
  Trustee May Enforce Claims
  Without Possession of Securities

  	
   

  	
  31

  
	
   

  	
  Application of Money Collected

  	
   

  	
  31

  
	
   

  	
  Limitation on Suits

  	
   

  	
  32

  
	
   

  	
  Unconditional Right of Holders to
  Receive Principal, Premium and Interest

  	
   

  	
  32

  
	
   

  	
  Restoration of Rights and Remedies

  	
   

  	
  32

  
	
   

  	
  Rights and Remedies Cumulative

  	
   

  	
  32

  
	
   

  	
  Delay or Omission Not Waiver

  	
   

  	
  33

  
	
   

  	
  Control by
  Holders

  	
   

  	
  33

  

 

ii

 

	
   

  	
  Waiver of Past Defaults

  	
   

  	
  33

  
	
   

  	
  Undertaking for Costs

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
  THE TRUSTEE

  	
   

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Certain Duties and Responsibilities of the Trustee

  	
   

  	
  33

  
	
   

  	
  Notice of Defaults

  	
   

  	
  34

  
	
   

  	
  Certain Rights of Trustee

  	
   

  	
  34

  
	
   

  	
  Not Responsible for Recitals or Issuance of Securities

  	
   

  	
  35

  
	
   

  	
  May Hold Securities

  	
   

  	
  35

  
	
   

  	
  Money Held in Trust

  	
   

  	
  35

  
	
   

  	
  Compensation and Reimbursement

  	
   

  	
  35

  
	
   

  	
  Disqualification; Conflicting Interests

  	
   

  	
  35

  
	
   

  	
  Corporate Trustee Required; Eligibility

  	
   

  	
  35

  
	
   

  	
  Resignation and Removal; Appointment of Successor

  	
   

  	
  36

  
	
   

  	
  Acceptance of Appointment by Successor

  	
   

  	
  37

  
	
   

  	
  Merger, Conversion, Consolidation or Succession to Business

  	
   

  	
  37

  
	
   

  	
  Preferential Collection of Claims Against Company

  	
   

  	
  37

  
	
   

  	
  Appointment of Authenticating Agent

  	
   

  	
  37

  
	
   

  	
  Compliance with Tax Laws

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  
	
  HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

  	
  39

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Company to Furnish Trustee Names and Addresses of Holders

  	
   

  	
  39

  
	
   

  	
  Preservation of Information; Communications to Holders

  	
   

  	
  39

  
	
   

  	
  Reports by Trustee

  	
   

  	
  40

  
	
   

  	
  Reports by Company

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
  CONSOLIDATION, MERGER, LEASE, SALE OR TRANSFER

  	
  41

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  When Company May Merge, Etc.

  	
   

  	
  41

  
	
   

  	
  Opinion of Counsel

  	
   

  	
  41

  
	
   

  	
  Successor Corporation Substituted

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  
	
  SUPPLEMENTAL INDENTURES

  	
   

  	
  41

  
	
   

  	
   

  	
   

  
	
   

  	
  Supplemental Indentures Without Consent of Holders

  	
   

  	
  41

  
	
   

  	
  Supplemental Indentures with Consent of Holders

  	
   

  	
  42

  
	
   

  	
  Execution of Supplemental Indentures

  	
   

  	
  43

  
	
   

  	
  Effect of Supplemental Indentures

  	
   

  	
  43

  
	
   

  	
  Conformity with Trust Indenture Act

  	
   

  	
  43

  
	
   

  	
  Reference in Securities to Supplemental Indentures

  	
   

  	
  43

  
	
   

  	
  Subordination Unimpaired

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
  COVENANTS

  	
   

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Payments of Securities

  	
   

  	
  43

  
	
   

  	
  Maintenance of Office or Agency

  	
   

  	
  43

  
	
   

  	
  Compliance Certificates

  	
   

  	
  44

  
	
   

  	
  Waiver of Stay, Extension or Usury Laws

  	
   

  	
  44

  
	
   

  	
  Money for Securities Payments to Be Held in Trust

  	
   

  	
  44

  
	
   

  	
  Waiver of Certain Covenants

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
  REDEMPTION OF SECURITIES

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Applicability of Article

  	
   

  	
  45

  
	
   

  	
  Election to Redeem; Notice to Trustee

  	
   

  	
  45

  
	
   

  	
  Selection by Trustee of Securities to Be Redeemed

  	
   

  	
  45

  
	
   

  	
  Notice of Redemption

  	
   

  	
  46

  
	
   

  	
  Deposit of Redemption Price

  	
   

  	
  46

  
	
   

  	
  Securities Payable on Redemption Date

  	
   

  	
  46

  
	
   

  	
  Securities Redeemed in Part

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  
	
  SINKING FUNDS

  	
   

  	
  47

  
	
   

  	
   

  	
   

  
	
   

  	
  Applicability of Article

  	
   

  	
  47

  
	
   

  	
  Satisfaction of Sinking Fund Payments with Securities

  	
   

  	
  47

  
	
   

  	
  Redemption of Securities for Sinking Fund

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  
	
  DEFEASANCE AND COVENANT DEFEASANCE

  	
   

  	
  47

  
	
   

  	
   

  	
   

  
	
   

  	
  Applicability of Article; Company’s Option to Effect
  Defeasance or Covenant Defeasance

  	
  47

  

 

iii

 

	
   

  	
  Defeasance and Discharge

  	
  48

  
	
   

  	
  Covenant Defeasance

  	
  48

  
	
   

  	
  Conditions to Defeasance or Covenant Defeasance

  	
  48

  
	
   

  	
  Deposited Money and Government Obligations To Be Held in
  Trust

  	
  49

  
	
   

  	
  Reinstatement

  	
  49

  
	
   

  	
   

  	
   

  
	
  SUBORDINATION

  	
  50

  
	
   

  	
   

  
	
   

  	
  Subordination

  	
  50

  
	
   

  	
  Priority of Senior Debt

  	
  50

  
	
   

  	
  Payments upon Bankruptcy

  	
  50

  
	
   

  	
  Subrogation; Rights not Impaired

  	
  51

  
	
   

  	
  Authorization of Trustee

  	
  51

  
	
   

  	
  Notice of the Trustee

  	
  51

  
	
   

  	
  Holders of Senior Debt; Trustee’s Obligations

  	
  52

  
	
   

  	
  Actions by Holders of Senior Debt

  	
  52

  
	
   

  	
  Paying Agent

  	
  52

  
	
   

  	
  Monies Held in Trust

  	
  53

  
	
   

  	
   

  	
   

  
	
  GUARANTEES

  	
  53

  
	
   

  	
   

  
	
   

  	
  Guarantee

  	
  53

  

 

iv

 

INDENTURE, dated as of
                                ,
20    , between INTERLINE BRANDS, INC., a New Jersey
corporation (herein called the “COMPANY”), the GUARANTORS listed on Schedule 1
hereto (herein called the “THE “GUARANTORS”) and BANK OF NEW YORK MELLON TRUST COMPANY,
N.A., as Trustee (herein called the “TRUSTEE”).

 

RECITALS OF
THE COMPANY

 

The Company has duly
authorized the execution and delivery of this Indenture to provide for the
issuance from time to time of its subordinated debentures, notes or other evidences
of indebtedness (herein called the “Securities”), to be issued in one or more
series as in this Indenture provided.

 

All things necessary to make
this Indenture a valid agreement of the Company, in accordance with its terms,
have been done.

 

NOW, THEREFORE,
THIS INDENTURE WITNESSETH:

 

For and in consideration of
the premises and the purchase of the Securities by the Holders thereof, it is
mutually covenanted and agreed, for the equal and ratable benefit of the
Holders of the Securities, as follows:

 

ARTICLE
1

 

DEFINITIONS
AND OTHER PROVISIONS OF GENERAL APPLICATION

 

Section 1.01    Definitions.
For all purposes of this Indenture, except as otherwise expressly provided or
unless the context otherwise requires:

 

(1) the
terms defined in this Article have the meanings assigned to them in this Article and
include the plural as well as the singular;

 

(2) all
other terms used herein which are defined in the Trust Indenture Act, either
directly or by reference therein, or defined by Commission rule and not
otherwise defined herein, have the meanings assigned to them therein;

 

(3) all
accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with GAAP;

 

(4) the
word “INCLUDING” (and with correlative meaning “INCLUDE”) means including,
without limiting the generality of, any description preceding such term; and

 

(5) the
words “HEREIN,” “HEREOF “ and “HEREUNDER” and other words of similar import
refer to this Indenture as a whole and not to any particular Article, Section or
other subdivision.

 

“ACT,” when used with respect
to any Holder, has the meaning specified in Section 1.04.

 

“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” (including, with correlative meanings,
the terms “CONTROLLING,” “CONTROLLED BY” and “UNDER COMMON CONTROL with”), as
used with respect to any Person, shall mean 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. For purposes of this definition, the terms “controlling,”
“controlled by” and “under common control with” shall have correlative
meanings.

 

“AUTHENTICATING AGENT” means
any Person authorized by the Trustee to act on behalf of the Trustee to
authenticate Securities.

 

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

 

5

 

“BOARD OF DIRECTORS” means
the board of directors of the Company; provided, however, that when the context
refers to actions or resolutions of the Board of Directors, then the term “BOARD
OF DIRECTORS” shall also mean any duly authorized committee of the Board of
Directors of the Company authorized to act with respect to any particular
matter to exercise the power of the Board of Directors of the Company.

 

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

 

“BUSINESS DAY,” when used
with respect to any Place of Payment or any other particular location referred
to in this Indenture or in the Securities of any series, means each Monday,
Tuesday, Wednesday, Thursday and Friday which is not a day on which banking
institutions in that Place of Payment are authorized or obligated by law or
regulation to close.

 

“CAPITAL STOCK” means, with
respect to any Person, any and all shares, interests, participations, warrants,
rights, options or other equivalents (however designated) of capital stock or
any other equity interest of such Person, including each class of common stock
and preferred stock.

 

“COMMISSION” means the
Securities and Exchange Commission, as from time to time constituted, created
under the Exchange Act, or, if at any time after the execution of this
instrument such Commission is not existing and performing the duties now
assigned to it under the Trust Indenture Act, then the body performing such
duties at such time.

 

“COMPANY” means the Person
named as the “Company” in the first paragraph of this Indenture until a
successor corporation or other entity shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter “Company” shall mean
such successor corporation.

 

“COMPANY REQUEST” or “COMPANY
ORDER” means a written request or order signed in the name of the Company by
any two Officers, at least one of whom must be its Chairman of the Board, its
Chief Executive Officer, its President, its Chief Financial Officer, its Chief
Accounting Officer, its Treasurer, an Assistant Treasurer or its Controller,
and delivered to the Trustee.

 

“CORPORATE TRUST OFFICE”
means the office of the Trustee at which at any particular time its corporate
trust business shall be principally administered, which office at the date
hereof is located at The Bank of New York Mellon Trust Company, N.A., 10161
Centurion Parkway, Jacksonville, FL 32256; Attn: Corporate Trust
Administration.

 

“COVENANT DEFEASANCE” has the
meaning specified in Section 13.03.

 

“CURRENCY UNIT” or “CURRENCY
UNITS” shall mean any composite currency.

 

“CUSTODIAN” means any
receiver, custodian, trustee, assignee, liquidator, sequestrator or similar
official under any Bankruptcy Law.

 

“DEBT” means, with respect to
any Person at any date of determination (without duplication), (i) all
obligations of such Person for borrowed money, (ii) all obligations of
such Person evidenced by bonds, debentures, notes or other similar instruments,
including obligations incurred in connection with the acquisition of property,
assets or businesses, (iii) all obligations of such Person in respect of
letters of credit or bankers’ acceptances or other similar instruments (or
reimbursement obligations thereto) issued on the account of such Person, (iv) all
obligations of such Person issued or assumed as the deferred purchase price of
property or services, but excluding trade accounts payable or accrued
liabilities arising in the ordinary course of business in connection with
acquisition of goods or services, (v) all obligations of such Person as
lessee under capitalized leases, (vi) all Debt of others secured by a Lien
on any asset of such Person, whether or not such Debt is assumed by such
Person; provided that, for purposes of determining the amount of any Debt of
the type described in this clause (vi), if recourse with respect to such Debt
is limited to such asset, the amount of such Debt shall be limited to the
lesser of the fair market value of such asset or the amount of such Debt, (vii) all
Debt and dividends of others guaranteed by such Person to the extent such Debt
and dividends are guaranteed by such Person, and (viii) to the extent not
otherwise included in this definition, all obligations of such Person for
claims in respect of derivative products, including interest rate, foreign
exchange rate and commodity prices, forward contracts, options, swaps, collars
and similar arrangements.

 

6

 

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

 

“DEFAULTED INTEREST” has the
meaning specified in Section 3.07.

 

“DEFEASANCE” has the meaning
specified in Section 13.02.

 

“DEPOSITARY” means, with
respect to the Securities of any series issuable or issued in whole or in part
in the form of one or more global Securities, the Person designated as
Depositary by the Company pursuant to Section 3.01 until a successor
Depositary shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Depositary” shall mean or include each Person who is
then a Depositary hereunder, and if at any time there is more than one such
Person, “Depositary” shall mean the Depositary with respect to the Securities
of that series.

 

“DOLLARS” and “$” means
lawful money of the United States of America.

 

“EVENT OF DEFAULT” has the
meaning specified in Section 5.01.

 

“EXCHANGE ACT” means the
Securities Exchange Act of 1934, as amended from time to time, and the rules and
regulations promulgated thereunder.

 

“GAAP” means such accounting
principles as are generally accepted in the United States of America which are
in effect on the date hereof.

 

“GUARANTEE” means the
guarantee by any Guarantor of the obligations under this Indenture.

 

“HOLDER” or “SECURITYHOLDER”
means a Person in whose name a Security is registered in the Security Register.

 

“INDEBTEDNESS” means, with
respect to any Person (without duplication for indebtedness or other
obligations of such Person), any indebtedness of such Person for money
borrowed, whether incurred, assumed or guaranteed, and including obligations
under capitalized leases.

 

“INDENTURE” means this
instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof and shall include the terms
of particular series of Securities established as contemplated hereunder.

 

“INTEREST,” when used with
respect to an Original Issue Discount Security which by its terms bears
interest only after Maturity, means interest payable after Maturity.

 

“INTEREST PAYMENT DATE,” when
used with respect to any Security, means the Stated Maturity of an installment
of interest on such Security.

 

“JUDGMENT CURRENCY” has the
meaning specified in Section 1.15.

 

“LIEN” means, with respect to
any property, any mortgage, lien, pledge, charge, security interest or
encumbrance of any kind in respect of such property. For purposes of this
Indenture, the Company shall be deemed to own subject to a Lien any property
which it has acquired or holds subject to the interest of a vendor or lessor
under any conditional sale agreement, capital lease or other title retention
agreement relating to such property.

 

“MATURITY,” when used with
respect to any Security, means the date on which the principal of such Security
or an installment of principal becomes due and payable as therein or herein
provided, whether at the Stated Maturity or by declaration of acceleration,
call for redemption or otherwise.

 

“NEW YORK BANKING DAY” has
the meaning specified in Section 1.15.

 

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

 

7

 

“OFFICERS’ CERTIFICATE” means
a certificate signed by any two Officers of the Company, at least one of whom
must be its Chief Executive Officer, its President, its Chief Financial
Officer, its Chief Accounting Officer, its Treasurer or its Controller, and
delivered to the Trustee.

 

“OPINION OF COUNSEL” means a
written opinion of counsel, who may be an employee of or counsel for the
Company, and who shall be reasonably acceptable to the Trustee.

 

“ORIGINAL ISSUE DISCOUNT
SECURITY” means any Security which provides for an amount less than the
principal amount thereof to be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 5.02.

 

“OUTSTANDING,” when used with
respect to Securities or Securities of any series, means, as of the date of
determination, all such Securities theretofore authenticated and delivered
under this Indenture, except:

 

(i) Securities
theretofore canceled by the Trustee or delivered to the Trustee for
cancellation;

 

(ii) Securities, or
portions thereof, for whose payment or redemption money in the necessary amount
has been theretofore deposited with the Trustee or any Paying Agent (other than
the Company) in trust or set aside and segregated in trust by the Company (if
the Company shall act as its own Paying Agent) for the Holders of such
Securities; provided that, if such Securities are to be redeemed, notice of
such redemption has been duly given pursuant to this Indenture or provision
therefor reasonably satisfactory to the Trustee has been made;

 

(iii) Securities which
have been paid as provided herein or in exchange for or in lieu of which other
Securities have been authenticated and delivered pursuant to this Indenture,
other than any such Securities in respect of which there shall have been
presented to the Trustee proof reasonably satisfactory to it that such
Securities are held by a bona fide purchaser in whose hands such Securities are
valid obligations of the Company; and

 

(iv) Securities which
have been defeased pursuant to Section 13.02;

 

provided,
however, that in determining whether the Holders of the requisite principal
amount of the Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, or whether
sufficient funds are available for redemption or for any other purpose and for
the purpose of making the calculations required by Section 313 of the
Trust Indenture Act, (a) the principal amount of any Original Issue
Discount Security that shall be deemed to be Outstanding for such purposes
shall be that portion of the principal amount thereof that could be declared to
be due and payable upon the occurrence of an Event of Default and the
continuation thereof pursuant to the terms of such Original Issue Discount
Security as of the date of such determination, (b) the principal amount of
a Security denominated in one or more foreign currencies or currency units
shall be the dollar equivalent, determined in the manner provided as
contemplated by Section 3.01 on the date of original issuance of such
Security, of the principal amount (or, in the case of an Original Issue
Discount Security, the dollar equivalent on the date of original issuance of
such Security of the amount determined as provided in (a) above) of such
Security, and (c) Securities owned by the Company or any other obligor
upon the Securities or any Affiliate of the Company or of such other obligor
shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent or waiver, only
Securities which the Trustee knows to be so owned shall be so disregarded.
Securities so owned which have been pledged in good faith may be regarded as
Outstanding if the pledgee establishes to the satisfaction of the Trustee the
pledgee’s right so to act with respect to such Securities and that the pledgee
is not the Company or any other obligor upon the Securities or any Affiliate of
the Company or of such other obligor.

 

“PAYING AGENT” means any
Person authorized by the Company to pay the principal of, premium, if any, or
interest on any Securities on behalf of the Company. The Company may act as
Paying Agent with respect to any Securities issued hereunder.

 

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

 

“PLACE OF PAYMENT,” when used
with respect to the Securities of any series, means the place or places where
the principal of (and premium, if any) and interest on the Securities of that
series are payable as specified as contemplated by Section 3.01.

 

8

 

“PREDECESSOR SECURITY” of any
particular Security means every previous Security evidencing all or a portion
of the same debt as that evidenced by such particular Security and, for the
purposes of this definition, any Security authenticated and delivered under Section 3.06
in exchange for or in lieu of a mutilated, destroyed, lost or stolen Security
shall be deemed to evidence the same debt as the mutilated, destroyed, lost or
stolen Security.

 

“REDEMPTION DATE,” when used
with respect to any Security of any series to be redeemed, means the date fixed
for such redemption by or pursuant to this Indenture.

 

“REDEMPTION PRICE,” when used
with respect to any Security of any series to be redeemed, means the price at
which it is to be redeemed pursuant to this Indenture.

 

“REGISTERED SECURITY” means
any Security issued hereunder and registered in the Security Register.

 

“REGULAR RECORD DATE” for the
interest payable on any Interest Payment Date on the Securities of any series
means the date specified for that purpose as contemplated by Section 3.01.

 

“REQUIRED CURRENCY” has the
meaning specified in Section 1.15.

 

“RESPONSIBLE OFFICER,” when
used with respect to the Trustee, means any officer of the Trustee assigned to
administer corporate trust matters and also means, with respect to a particular
corporate trust matter, any other officer to whom such matter is referred
because of his or her knowledge of and familiarity with the particular subject.

 

“SECURITIES” has the meaning
stated in the first recital of this Indenture and more particularly means any
Securities authenticated and delivered under this Indenture.

 

“SECURITY REGISTER” and “SECURITY
REGISTRAR” have the respective meanings specified in Section 3.05.

 

“SENIOR DEBT” means the
principal of (and premium, if any) and interest on all Debt of the Company
whether created, incurred or assumed before, on or after the date of this
Indenture; provided that such Senior Debt shall not include any Debt of the
Company which by the terms of the instrument creating or evidencing the same
such Debt is specifically designated as being subordinated to or pari passu
with the Securities.

 

This definition may be
modified or superseded in a manner as contemplated by Section 3.01.

 

“SIGNIFICANT SUBSIDIARY” of a
Person has the meaning ascribed to such term in Rule 1.02(w) of
Regulation S-X under the Securities Act of 1933, as amended.

 

“SPECIAL RECORD DATE” for the
payment of any Defaulted Interest means a date fixed by the Trustee pursuant to
Section 3.07.

 

“STATED MATURITY,” when used
with respect to any Security or any installment of principal thereof or
interest thereon, means the date specified in such Security as the fixed date
on which the principal of such Security or such installment of principal or
interest is due and payable.

 

“SUBSIDIARY” means, with
respect to any 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) to vote in the election of directors, managers
or trustees thereof is at the time owned or controlled, directly or indirectly,
by such Person or one or more of the other Subsidiaries of that Person (or a
combination thereof); and

 

(2) any
partnership (a) the sole general partner or the managing general partner
of which is such Person or a Subsidiary of such Person or (b) the only
general partners of which are such Person or one or more Subsidiaries of such
Person (or any combination thereof).

 

“TRUSTEE” means the Person
named as the “Trustee” in the first paragraph of this instrument until a
successor Trustee shall have become such pursuant to the applicable provisions
of this Indenture, and thereafter 

 

9

 

“Trustee”
shall mean or include each Person who is then a Trustee hereunder, and if at
any time there is more than one such Person, “Trustee” as used with respect to
the Securities of any series shall mean the Trustee with respect to Securities
of that series.

 

“TRUST INDENTURE ACT” means
the Trust Indenture Act of 1939, as amended, as in force at the date as of
which this Indenture was executed; provided, however, that in the event that
such Act is amended after such date, “Trust Indenture Act” means, to the extent
required by any such amendment, the Trust Indenture Act of 1939 as so amended.

 

“U.S. GOVERNMENT OBLIGATIONS”
means securities which are (i) direct obligations of the United States of
America for the payment of which its full faith and credit is pledged or (ii) obligations
of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America the timely payment of which is
unconditionally guaranteed by the full faith and credit of the United States of
America which, in either case, are not callable or redeemable at the option of
the issuer thereof or otherwise subject to prepayment, and shall also include a
depository receipt issued by a New York Clearing House bank or trust company as
custodian with respect to any such U.S. Government Obligation, or a specific
payment of interest on or principal of any such U.S. Government Obligation held
by such custodian for the account of the holder of a depository receipt,
provided that (except as required by law) such custodian is not authorized to
make any deduction from the amount payable to the holder of such depository
receipt from any amount held by the custodian in respect of the U.S. Government
Obligation or the specific payment of interest on or principal of the U.S.
Government Obligation evidenced by such depository receipt.

 

“VICE PRESIDENT,” when used
with respect to the Company or the Trustee, means any vice president, whether
or not designated by a number or a word or words added before or after the
title “vice president.”

 

“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.

 

Section 1.02    Compliance
Certificates and Opinions. Upon any application or request by the Company to
the Trustee to take any action under any provision of this Indenture, the
Company shall furnish to the Trustee an Officers’ Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with and an Opinion of Counsel stating that
in the opinion of such counsel all such conditions precedent, if any, have been
complied with, except that in the case of any such application or request as to
which the furnishing of such documents is specifically required by any
provision of this Indenture relating to such particular application or request,
no additional certificate or opinion need be furnished.

 

Every certificate or opinion
with respect to compliance with a condition or covenant provided for in this
Indenture shall include:

 

(a) a statement that
each individual signing such certificate or opinion has read such covenant or
condition and the definitions herein relating thereto;

 

(b) a brief statement as
to the nature and scope of the examination or investigation upon which the
statements or opinions contained in such certificate or opinion are based;

 

(c) a statement that, in
the opinion of each such individual, he has made such examination or investigation
as is necessary to enable him to express an informed opinion as to whether or
not such covenant or condition has been complied with; and

 

(d) a statement as to
whether, in the opinion of each such individual, such condition or covenant has
been complied with.

 

Section 1.03    Form of
Documents Delivered to Trustee. In any case where several matters are required
to be certified by, or covered by an opinion of, any specified Person, it is
not necessary that all such matters be certified by, or covered by the opinion
of, only one such Person, or that they be so certified or covered by only one
document, but one such Person may certify or give an opinion with respect to
some matters and one or more other such Persons as to other matters, and any
such Person may certify or give an opinion as to such matters in one or several
documents.

 

Any certificate or opinion of
an Officer may be based, insofar as it relates to legal matters, upon a
certificate or opinion of, or representations by, counsel, unless such Officer
actually knows that the certificate or opinion or representations with respect
to the matters upon which his certificate or opinion is based are erroneous.
Any such 

 

10

 

certificate
or Opinion of Counsel may be based, insofar as it relates to factual matters,
upon a certificate or opinion of, or representations by, an Officer or Officers
of the Company stating that the information with respect to such factual
matters is in the possession of the Company, unless such counsel actually knows
that the certificate or opinion or representations with respect to such matters
are erroneous.

 

Any certificate, statement or
opinion of an Officer of the Company or of counsel may be based, insofar as it
relates to accounting matters, upon a certificate or opinion of or
representations by an accountant or firm of accountants in the employ of the
Company, unless such Officer or counsel, as the case may be, actually knows
that the certificate or opinion or representations with respect to the
accounting matters upon which his or her certificate, statement or opinion is
based are erroneous.

 

Where any Person is required
to make, give or execute two or more applications, requests, consents,
certificates, statements, opinions or other instruments under this Indenture,
they may, but need not, be consolidated and form one instrument.

 

Section 1.04    Acts of
Holders.

 

(a) Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given or taken by Holders may be embodied in and evidenced
by one or more instruments of substantially similar tenor signed by such
Holders in person or by agents duly appointed in writing; and, except as herein
otherwise expressly provided, such action shall become effective when such
instrument or instruments are delivered to the Trustee and, where it is hereby
expressly required, to the Company. Such instrument or instruments (and the
action embodied therein and evidenced thereby) are herein sometimes referred to
as the “ACT” of the Holders signing such instrument or instruments. Proof of
execution of any such instrument or of a writing appointing any such agent
shall be sufficient for any purpose of this Indenture and (subject to Section 6.01)
conclusive in favor of the Trustee and the Company, if made in the manner
provided in this Section.

 

(b) The fact and date of
the execution by any Person of any such instrument or writing may be proved by
the affidavit of a witness of such execution or by a certificate of a notary
public or other officer authorized by law to take acknowledgments of deeds,
certifying that the individual signing such instrument or writing acknowledged
to him the execution thereof. Where such execution is by a signer acting in a capacity
other than his individual capacity, such certificate or affidavit shall also
constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person
executing the same, may also be proved in any other manner which the Trustee
deems sufficient.

 

(c) The ownership of
Registered Securities shall be proved by the Security Register.

 

(d) Any request, demand,
authorization, direction, notice, consent, waiver or other Act of the Holder of
any Security shall bind every future Holder of the same Security and the Holder
of every Security issued upon the registration of transfer thereof or in
exchange therefor or in lieu thereof in respect of anything done, omitted or
suffered to be done by the Trustee or the Company in reliance thereon, whether
or not notation of such action is made upon such Security.

 

(e) If the Company shall
solicit from the Holders any request, demand, authorization, direction, notice,
consent, waiver or other Act, the Company may, at its option, by or pursuant to
a Board Resolution, fix in advance a record date for the determination of
Holders entitled to give such request, demand, authorization, direction,
notice, consent, waiver or other Act, but the Company shall have no obligation
to do so, provided that the Company may not set a record date for, and the
provisions of this paragraph shall not apply with respect to, the giving or
making of any notice, declaration, request or direction referred to in the
immediately following paragraph. If such a record date is fixed, such request,
demand, authorization, direction, notice, consent, waiver or other Act may be
given before or after such record date, but only the Holders of record at the
close of business on such record date shall be deemed to be Holders for the
purposes of determining whether Holders of the requisite proportion of
Outstanding Securities have authorized or agreed or consented to such request,
demand, authorization, direction, notice, consent, waiver or other Act, and for
that purpose the Outstanding Securities shall be computed as of such record
date; provided that no such authorization, agreement or consent by the Holders
on such record date shall be deemed effective unless it shall become effective
pursuant to the provisions of this Indenture not later than six months after
the record date.

 

(f) The Trustee shall
set a record date, which shall not be more than 15 days prior to the date of
commencement of solicitation of such action contemplated by this section
1.04(f), for the purpose of determining the Holders of Securities of any series
entitled to join in the giving or making of (i) any Notice of Default, (ii) any
declaration of acceleration referred to in Section 5.02, (iii) any
direction referred to in Section 5.12, (iv) any request to 

 

11

 

institute proceedings referred to in Section 5.07(2) or
(v) any waiver of past defaults pursuant to Section 5.13, in each
case with respect to Securities of such series. If such a record date is fixed
pursuant to this paragraph, the relevant action may be taken or given before or
after such record date, but only the Holders of record at the close of business
on such record date shall be deemed to be holders of Securities of a series for
the purpose of determining whether Holders of the requisite proportion of
Outstanding Securities of such series have authorized or agreed or consented to
such action, and for that purpose the Outstanding Securities of such series
shall be computed as of such record date; provided that no such action by
Holders on such record date shall be deemed effective unless it shall become
effective pursuant to the provisions of this Indenture not later than six
months after the record date. Nothing in this paragraph shall be construed to
prevent the Trustee from setting a new record date for any action for which a
record date has been set pursuant to this paragraph (whereupon the record date
previously set shall automatically and with no action by any Person be canceled
and of no effect), and nothing in this paragraph shall be construed to render
ineffective any action taken by Holders of the requisite principal amount of
Outstanding Securities of the relevant series on the date such action is taken.
Promptly after any record date is set pursuant to this paragraph, the Trustee,
at the Company’s reasonable expense, shall cause notice of such record date and
the proposed action by Holders to be given to the Company in writing and to
each Holder of Securities of the relevant series in the manner set forth in Section 1.06.

 

Section 1.05    Notices, Etc.,
to Trustee and Company. Any request, demand, authorization, direction, notice,
consent, waiver or Act of Holders or other document provided or permitted by
this Indenture to be made upon, given or furnished to, or filed with,

 

(a) the Trustee by any
Holder or by the Company shall be sufficient for every purpose hereunder if
made, given, furnished or filed in writing and mailed first-class postage
prepaid, to or with the Trustee at The Bank of New York Trust Company, N.A.,
10161 Centurion Parkway, Jacksonville, FL 32256; Attn: Corporate Trust
Administration; or

 

(b) the Company by the
Trustee or by any Holder shall be sufficient for every purpose hereunder
(unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to the Company addressed to it at Interline Brands, Inc.,
701 San Marco Boulevard, Jacksonville, FL 32207, Attention: Secretary, or at
any other address previously furnished in writing to the Trustee by the
Company.

 

Section 1.06    Notice to
Holders; Waiver. Where this Indenture or any Security provides for notice to
Holders of any event, such notice shall be deemed sufficiently given (unless
otherwise herein or in such Security expressly provided) if in writing and
mailed, first-class postage prepaid, to each Holder affected by such event, at
his address as it appears in the Security Register, not later than the latest
date, and not earlier than the earliest date, prescribed for the giving of such
notice. In any case where notice to Holders is given by mail, neither the
failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to
other Holders or the validity of the proceedings to which such notice relates.

 

In case by reason of the
suspension of regular mail service or by reason of any other cause it shall be
impracticable to give such notice by mail, then such notification as shall be
made with the approval of the Trustee shall constitute a sufficient
notification for every purpose hereunder.

 

Any request, demand,
authorization, direction, notice, consent or waiver required or permitted under
this Indenture shall be in the English language, except that any published
notice may be in an official language of the country of publication.

 

Where this Indenture or any
Security provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice. Waivers of
notice by Holders shall be filed with the Trustee, but such filing shall not be
a condition precedent to the validity of any action taken in reliance upon such
waiver.

 

Section 1.07    Conflict with
Trust Indenture Act. If any provision hereof limits, qualifies or conflicts
with another provision hereof which is required to be included or deemed
included in this Indenture by any of the provisions of the Trust Indenture Act,
such required provision shall control. If any provision of this Indenture
modifies or excludes any provision of the Trust Indenture Act that may be so
modified or excluded, such provision of the Trust Indenture Act shall be deemed
to apply to this Indenture as so modified or shall be excluded, as the case may
be.

 

Section 1.08    Effect of
Headings and Table of Contents. The Article and Section headings
herein and the Table of Contents are for convenience only and shall not affect
the construction hereof.

 

12

 

Section 1.09    Successors and
Assigns. All covenants and agreements in this Indenture by the Company shall
bind its successors and assigns, whether so expressed or not.

 

Section 1.10    Separability
Clause. In case any provision in this Indenture or in the Securities shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 1.11    Benefits of
Indenture. Nothing in this Indenture or in the Securities, express or implied,
shall give to any Person, other than the parties hereto and their successors
hereunder, the Holders and to the extent specifically set forth herein the
holders of Senior Debt, any benefit or any legal or equitable right, remedy or
claim under this Indenture.

 

Section 1.12    Governing Law.
This Indenture and the Securities shall be governed by and construed in
accordance with the laws (other than the choice of law provisions) of the State
of New York.

 

Section 1.13    Legal
Holidays. In any case where any Interest Payment Date, Redemption Date, sinking
fund payment date, Stated Maturity or Maturity of any Security shall not be a
Business Day at any Place of Payment, then (notwithstanding any other provision
of this Indenture or of the Securities other than a provision in the Securities
of any series which specifically states that such provision shall apply in lieu
of this Section) payment of interest or principal (and premium, if any) need
not be made at such Place of Payment on such date, but may be made on the next
succeeding Business Day or on such other day as may be set out in the Officers’
Certificate pursuant to Section 3.01 at such Place of Payment with the
same force and effect as if made on the Interest Payment Date, Redemption Date,
sinking fund payment date, Stated Maturity or Maturity, as the case may be,
provided that no interest shall accrue on the amount so payable for the period
from and after such Interest Payment Date, Redemption Date, sinking fund
payment date, Stated Maturity or Maturity, as the case may be, if payment is
made on such next succeeding Business Day or other day set out in such Officers’
Certificate.

 

Section 1.14    No Recourse
Against Others. A director, officer, employee or stockholder, as such, of the
Company or any Guarantor (other than a stockholder which itself is the Company
or a Guarantor of the Securities) shall not have any liability for any
obligations of the Company or any Guarantor under the Securities or this
Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. Each Securityholder, by accepting a Security,
waives and releases all such liability. Such waivers and releases are part of
the consideration for the issuance of the Securities.

 

Section 1.15    Judgment
Currency. The Company agrees, to the fullest extent that it may effectively do
so under applicable law, that (a) if for the purpose of obtaining judgment
in any court it is necessary to convert the sum due in respect of the principal
of, or premium or interest, if any, on the Securities of any series (the “REQUIRED
CURRENCY”) into a currency in which a judgment will be rendered (the “JUDGMENT
CURRENCY”), the rate of exchange used shall be the rate at which in accordance
with normal banking procedures the Trustee could purchase in The City of New
York the Required Currency with the Judgment Currency on the New York Banking
Day preceding that on which a final unappealable judgment is given and (b) its
obligations under this Indenture to make payments in the Required Currency (i) shall
not be discharged or satisfied by any tender, or any recovery pursuant to any
judgment (whether or not entered in accordance with subsection (a)), in any
currency other than the Required Currency, except to the extent that such
tender or recovery shall result in the actual receipt, by the payee, of the
full amount of the Required Currency expressed to be payable in respect of such
payments, (ii) shall be enforceable as an alternative or additional cause
of action for the purpose of recovering in the Required Currency the amount, if
any, by which such actual receipt shall fall short of the full amount of the
Required Currency so expressed to be payable and (iii) shall not be
affected by judgment being obtained for any other sum due under this Indenture.
For purposes of the foregoing, “NEW YORK BANKING DAY” means any day except a
Saturday, Sunday or a legal holiday in The City of New York or a day on which
banking institutions in The City of New York are authorized or required by law
or executive order to close.

 

Section 1.16    Counterparts.
This instrument may be executed in any number of counterparts, each of which so
executed shall be deemed to be an original, but all such counterparts shall
together constitute but one and the same instrument.

 

13

 

ARTICLE
2

 

SECURITY
FORMS

 

Section 2.01    Forms
Generally. The Securities of each series shall be in substantially the form set
forth in this Article, or in such other form as shall be established by or
pursuant to a Board Resolution or in one or more indentures supplemental
hereto, in each case with such appropriate insertions, omissions, substitutions
and other variations as are required or permitted by this Indenture, and may
have such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of
any securities exchange or as may, consistently herewith, be determined by the
Officers executing such Securities, as evidenced by their execution of the
Securities. If the form of Securities of any series is established by action
taken pursuant to a Board Resolution, a copy of an appropriate record of such
action shall be certified by the Secretary or an Assistant Secretary of the
Company and delivered to the Trustee at or prior to the delivery of the Company
Order contemplated by Section 3.03 for the authentication and delivery of
such Securities.

 

The definitive Securities
shall be printed, lithographed or engraved on steel engraved borders or may be
produced in any other manner, all as determined by the officers executing such
Securities, as evidenced by their execution of such Securities.

 

Section 2.02    Form of
Face of Security.

 

INTERLINE
BRANDS, INC.

 

	
  No.

  	
   

  	
  [$]

  

 

Interline Brands, Inc.,
a corporation duly organized and existing under the laws of New Jersey (herein
called the “COMPANY,” which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to
                              ,
or registered assigns, the principal sum of
                              
[Dollars] on                               
[if the Security is to bear interest prior to Maturity, insert— and to pay
interest thereon from
                              
or from the most recent Interest Payment Date to which interest has been paid
or duly provided for, semi-annually on
                              
and                               
in each year [if other than semi-annual payments, insert frequency of payments
and payment dates], commencing
                                          ,
at [if the Security is to bear interest at a fixed rate, insert— the rate of
          % per annum], [if
the Security is to bear interest at a variable or floating rate and if
determined with reference to an index, refer to description of index below]
until the principal hereof is paid or made available for payment [if applicable
insert—, and (to the extent that the payment of such interest shall be legally
enforceable) at the rate of
          % per annum on any
overdue principal and premium and on any overdue installment of interest]. The
interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in such Indenture, be paid to the Person in
whose name this Security (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest, which
shall be the
                    
or
                    
(whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date. Any such interest not so punctually paid or duly
provided for will forthwith cease to be payable to the Holder on such Regular
Record Date and may either be paid to the Person in whose name this Security
(or one or more Predecessor Securities) is registered at the close of business
on a Special Record Date for the payment of such Defaulted Interest to be fixed
by the Trustee, notice whereof shall be given to Holders of Securities of this
series not less than 10 days prior to such Special Record Date, or be paid at
any time in any other lawful manner not inconsistent with the requirements of
any securities exchange on which the Securities of this series may be listed,
and upon such notice as may be required by such exchange, all as more fully
provided in said Indenture].

 

[If the Securities are
floating or adjustable rate securities with respect to which the principal of
or any premium or interest may be determined with reference to an index, insert
the text of the floating or adjustable rate provision.]

 

[If the Security is not to
bear interest prior to Maturity, insert— The principal of this Security shall
not bear interest except in the case of a default in payment of principal upon
acceleration, upon redemption or at Stated Maturity and in such case the
overdue principal of this Security shall bear interest at the rate of
          % per annum (to the
extent that the payment of such interest shall be legally enforceable), which
shall accrue from the date of such default in payment to the date payment of
such principal has been made or duly provided for. Interest on any overdue
principal shall be payable on demand. Any such interest on any overdue
principal that is not so paid on demand shall bear interest at the rate of
          % per annum (to the
extent that the payment of such interest shall be legally enforceable), 

 

14

 

which
shall accrue from the date of such demand for payment to the date payment of
such interest has been made or duly provided for, and such interest shall also
be payable on demand.]

 

Payment of the principal of
(and premium, if any) and [if applicable, insert—any such] interest on this
Security will be made at the office or agency of the Company maintained for
that purpose in
                              ,
in dollars [if applicable, insert—; provided, however, that at the option of
the Company, payment of interest may be made by check mailed to the address of
the Person entitled thereto as such address shall appear in the Security
Register].

 

[If applicable, insert— So
long as all of the Securities of this series are represented by Securities in
global form, the principal of, premium, if any, and interest, if any, on this
global Security shall be paid in same day funds to the Depositary, or to such
name or entity as is requested by an authorized representative of the Depositary.
If at any time the Securities of this series are no longer represented by
global Securities and are issued in definitive certificated form, then the
principal of, premium, if any, and interest, if any, on each certificated
Security at Maturity shall be paid in same day funds to the Holder upon
surrender of such certificated Security at the Corporate Trust Office of the
Trustee, or at such other place or places as may be designated in or pursuant
to the Indenture, provided that such certificated Security is surrendered to
the Trustee, or at such other place or places as may be designated in or
pursuant to the Indenture, provided that such certificated Security is
surrendered to the Trustee, acting as Paying Agent, in time for the Paying
Agent to make such payments in such funds in accordance with its normal
procedures. Payments of interest with respect to such certificated Securities
other than at Maturity may, at the option of the Company, be made by check
mailed to the address of the Person entitled thereto as it appears on the
Security Register on the relevant Regular or Special Record Date or by wire
transfer in same day funds to such account as may have been appropriately
designated to the Paying Agent by such Person in writing not later than such relevant
Regular or Special Record Date.]

 

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

 

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

 

IN WITNESS WHEREOF, the
Company has caused this instrument to be duly executed.

 

	
   

  	
  INTERLINE
  BRANDS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:                                               ,
  20

  

 

Section 2.03    Form of
Reverse of Security.

 

This Security is one of a
duly authorized issue of securities of the Company (herein called the “SECURITIES”),
issued and to be issued in one or more series under an Indenture, dated as of
                              ,
20     (herein called the “INDENTURE”), between the Company
and
                                        ,
as Trustee (herein called the “TRUSTEE,” which term includes any successor
trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered. This Security is
one of the series designated on the face hereof [, limited in aggregate
principal amount to
$                    ].

 

[— The Securities of this
series are subject to redemption upon not less than 30 nor more than 60 days’
notice by first class mail, [if applicable, insert— (1) on
                    
in any year commencing with the year
                    
and ending with the year
                    
through operation of the sinking fund for this series at a Redemption Price
equal to 100% of the principal amount, and (2)] at any time [on or after
                    ,
          ], as a whole or in
part, at the election of the Company, at the following Redemption Prices
(expressed as percentages of the principal amount):

 

If redeemed [on or before
                              ,
          %, and if redeemed]
during the 12-month period beginning
                              
of the years indicated,

 

15

 

	
   

  	
   

  	
  REDEMPTION

  	
   

  
	
  YEAR

  	
   

  	
  PRICE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

and
thereafter at a Redemption Price equal to
          % of the principal
amount, together in the case of any such redemption [if applicable, insert—
(whether through operation of the sinking fund or otherwise)] with accrued and
unpaid interest to the Redemption Date, but interest installments whose Stated
Maturity is on or prior to such Redemption Date will be payable to the Holders
of such Securities, or one or more Predecessor Securities, of record at the
close of business on the relevant Record Dates referred to on the face hereof,
all as provided in the Indenture.]

 

[If applicable, insert— The
Securities of this series are subject to redemption upon not less than 30 nor
more than 60 days’ notice by first class mail, (1) on
                              
in any year commencing with the year                     
and ending with the year
                    
through operation of the sinking fund for this series at the Redemption Prices
for redemption through operation of the sinking fund (expressed as percentages
of the principal amount) set forth in the table below, and (2) at any time
[on or after
                    ],
as a whole or in part, at the election of the Company, at the Redemption Prices
for redemption otherwise than through operation of the sinking fund (expressed
as percentages of the principal amount) set forth in the table below:

 

If redeemed during a 12-month
period beginning
                                  
of the years indicated,

 

	
  REDEMPTION
  PRICE

  	
   

  	
  REDEMPTION PRICE FOR

  	
   

  	
   

  	
   

  
	
  FOR
  REDEMPTION

  	
   

  	
  REDEMPTION OTHERWISE THAN

  	
   

  	
   

  	
   

  
	
  THROUGH OPERATION OF THE
  SINKING

  	
   

  	
  THROUGH OPERATION OF THE

  	
   

  	
   

  	
   

  
	
  FUND

  	
   

  	
  SINKING FUND

  	
   

  	
  YEAR

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

and
thereafter at a Redemption Price equal to
          % of the principal
amount, together in the case of any such redemption (whether through operation
of the sinking fund or otherwise) with accrued and unpaid interest to the
Redemption Date, but interest installments whose Stated Maturity is on or prior
to such Redemption Date will be payable to the Holders of such Securities, or
one or more Predecessor Securities, of record at the close of business on the
relevant Record Dates referred to on the face hereof, all as provided in the
Indenture.]

 

[Notwithstanding the
foregoing, the Company may not, prior to
                    ,
redeem any Securities of this series as contemplated by [clause (2) of]
the preceding paragraph as a part of, or in anticipation of, any refunding
operation by the application, directly or indirectly, of moneys borrowed having
an interest cost to the Company (calculated in accordance with generally
accepted financial practice) of less than
          % per annum.]

 

[The sinking fund for this
series provides for the redemption on
                    
in each year beginning with the year           
and ending with the year
           of [not less than]
$                              
[(“MANDATORY SINKING FUND”) and not more than
$                        ]
aggregate principal amount of Securities of this series.] [Securities of this
series acquired or redeemed by the Company otherwise than through [mandatory]
sinking fund payments may be credited against subsequent [mandatory] sinking
fund payments otherwise required to be made—in the inverse order in which they
become due.]

 

[In the event of redemption
of this Security in part only, a new Security or Securities of this series for
the unredeemed portion hereof will be issued in the name of the Holder hereof
upon the cancellation hereof.]

 

[If the Security is not an
Original Issue Discount Security, insert— If any Event of Default with respect to
Securities of this series shall occur and be continuing, the principal of the
Securities of this series may be declared due and payable in the manner and
with the effect provided in the Indenture.]

 

[If the Security is an
Original Issue Discount Security, insert— If an Event of Default with respect
to Securities of this series shall occur and be continuing, an amount of
principal of the Securities of this series may be declared due and payable in
the manner and with the effect provided in the Indenture. Such amount shall be
equal —insert formula for determining the amount. Upon payment (i) of the
amount of principal so declared due and payable and (ii) of interest on
any overdue principal and overdue interest (in each case to the extent that the
payment of such interest shall be legally enforceable), all of the Company’s
obligations in respect of the payment of the principal of and interest, if any,
on the Securities of this series shall terminate.]

 

16

 

[This Security is subject to
defeasance and covenant defeasance as described in the Indenture [if
applicable, insert — and the supplemental indenture].]

 

[This Security is subject to
satisfaction and discharge as provided in the Indenture [if applicable, insert —
and the supplemental indenture].]

 

[This Security is subject to
subordination as provided in the Indenture [if applicable, insert — and the
supplemental indenture].]

 

The Indenture may be modified
by the Company and the Trustee without consent of any Holder with respect to
certain matters as described in the Indenture. In addition, the Indenture
permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of
the Holders of the Securities of each series to be affected under the Indenture
at any time by the Company and the Trustee with the consent of the Holders of a
majority in principal amount of the Securities at the time Outstanding of each
series to be affected. The Indenture also contains provisions permitting the
Holders of a majority in principal amount of the Securities of each series at
the time Outstanding, on behalf of the Holders of all Securities of such
series, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Security shall bind such
Holder and all future Holders of this Security and of any Security issued upon
the registration of transfer hereof or in exchange hereof or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

 

No reference herein to the
Indenture and no provision of this Security or of the Indenture shall alter or
impair the obligation of the Company, which is absolute and unconditional, to
pay the principal of (and premium, if any) and interest on this Security at the
times, place and rate, and in the coin or currency, herein prescribed.

 

As provided in the Indenture
and subject to certain limitations therein set forth, the transfer of this
Security is registrable in the Security Register, upon surrender of this
Security for registration of transfer at the office or agency of the Company in
any place where the principal of (and premium, if any) and interest on this
Security are payable, duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Company and the Security Registrar duly
executed by the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Securities of this series, of authorized
denominations and for the same Stated Maturity and aggregate principal amount,
will be issued to the designated transferee or transferees.

 

The Securities of this series
are issuable only in registered form without coupons in denominations of
[$1,000] and any integral multiple thereof. As provided in the Indenture and
subject to certain limitations therein set forth, Securities of this series are
exchangeable for a like aggregate principal amount of Securities of this series
of a different authorized denomination, as requested by the Holder surrendering
the same.

 

No service charge shall be
made for any such registration of transfer or exchange, but the Company may
require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.

 

Prior to due presentment of
this Security for registration of transfer, the Company, the Trustee and any
agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not
this Security be overdue, and neither the Company, the Trustee nor any such
agent shall be affected by notice to the contrary.

 

The Indenture imposes certain
limitations on the ability of the Company to, among other things, merge or
consolidate with any other Person or sell, assign, transfer or lease all or
substantially all of its properties or assets [If other covenants are
applicable pursuant to the provisions of Section 3.01, insert here]. All
such covenants and limitations are subject to a number of important
qualifications and exceptions. The Company must report periodically to the
Trustee on compliance with the covenants in the Indenture.

 

A director, officer, employee
or stockholder, as such, of the Company shall not have any liability for any
obligations of the Company under this Security 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 Security, waives and releases all such
liability. The waiver and release are part of the consideration for the
issuance of this Security.

 

[If applicable, insert — A
director, officer, employee or stockholder, as such, of any Guarantor shall not
have any liability for any obligations of the Company or such Guarantor under
this Security or the Indenture [if applicable, insert — or the supplemental
indenture] or for any claim based on, in respect of or by reason of, such
obligations or their 

 

17

 

creation.
Each Holder, by accepting a Security, waives and releases all such liability.
The waiver and release are part of the consideration for the issuance of this
Security.]

 

[If applicable, insert — This
Security will be entitled to the benefits of certain Guarantees made for the
benefit of the Holders. Reference is hereby made to the Indenture and the
supplemental indenture for a statement of the respective rights, limitations of
rights, duties and obligations thereunder of the Guarantors, if any, the
Trustee and the Holders.]

 

[If applicable, insert—
Pursuant to a recommendation promulgated by the Committee on Uniform Security
Identification Procedures (“CUSIP”), the Company has caused CUSIP numbers to be
printed on the Securities of this series as a convenience to the Holders of the
Securities of this series. No representation is made as to the correctness or
accuracy of such numbers as printed on the Securities of this series and
reliance may be placed only on the other identification numbers printed
hereon.]

 

18

 

All terms used in this
Security which are defined in the Indenture shall have the meanings assigned to
them in the Indenture.

 

ASSIGNMENT FORM

 

To
assign this Security, fill in the form below: (I) or (we) assign and
transfer this Security to

 

	
   

  	
   

  
	
  (Insert
  assignee’s social security or tax I.D. number)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

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

  	
   

  

 

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

 

	
  Dated:

  	
   

  	
   

  	
  Your
  Signature:

  	
   

  
	
   

  	
   

  	
  (Sign
  exactly as your name appears on

  
	
   

  	
   

  	
  the
  other side of this Security)

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature
  Guaranty:

  	
   

  	
   

  
	
   

  	
   

  	
  [Signatures
  must be guaranteed by an “eligible guarantor institution” meeting the
  requirements of the Transfer Agent, which requirements will include membership
  or participation in the Medallion Stamp Program or such other “signature
  guarantee program” as may be determined by the Transfer Agent in addition to,
  or in substitution for, the Medallion Stamp Program, all in accordance with
  the Exchange Act.]

  
	
   

  	
   

  	
   

  
	
  Social
  Security Number or

  	
   

  	
   

  
	
  Taxpayer
  Identification Number:

  	
   

  	
   

  
						

 

19

 

Section 2.04    Form of
Trustee’s Certificate of Authentication. The Trustee’s certificate of
authentication shall be in substantially the following form:

 

 

	
  Dated:

  	
   

  	
   

  

 

This
is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  As Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signatory

  

 

Section 2.05    Securities in
Global Form. If Securities of or within a series are issuable in whole or in
part in global form, then any such Security of such series may provide that it
shall represent the aggregate or a specified amount of the Outstanding
Securities of such series from time to time endorsed thereon and may also
provide that the aggregate amount of Outstanding Securities of such series
represented thereby may from time to time be reduced or increased to reflect
exchanges. Any endorsement of a Security in global form to reflect the amount,
or any increase or decrease in the amount, or changes in the rights of Holders,
of Outstanding Securities represented thereby shall be made in such manner and
upon instructions given by such Person or Persons as shall be specified therein
or in the Company Order to be delivered to the Trustee pursuant to Section 3.03
or Section 3.04. Subject to the provisions of Section 3.03 and, if
applicable, Section 3.04, the Trustee shall deliver and redeliver any
Security in permanent global form in the manner and upon instructions given by
the Person or Persons specified therein or in the applicable Company Order. If
a Company Order pursuant to Section 3.03 or 3.04 has been, or simultaneously
is, delivered, any instructions by the Company with respect to endorsement or
delivery or redelivery of a Security in global form shall be in writing but
need not comply with Section 1.02 and need not be accompanied by an
Opinion of Counsel.

 

The provisions of the last
paragraph of Section 3.03 shall apply to any Security represented by a
Security in global form if such Security was never issued and sold by the
Company and the Company delivers to the Trustee the Security in global form
together with written instructions (which need not comply with Section 1.02
and need not be accompanied by an Opinion of Counsel) with regard to the
reduction in the principal amount of Securities represented thereby.

 

Notwithstanding the
provisions of Sections 2.01 and 3.07, unless otherwise specified as
contemplated by Section 3.01, payment of principal of and premium, if any,
and interest on any Security in permanent global form shall be made to the
Person or Persons specified therein.

 

Section 2.06    Form of
Legend for the Securities in Global Form. Any Security in global form
authenticated and delivered hereunder shall bear a legend in substantially the
following form, or in such other form as may be necessary or appropriate to
reflect the arrangements with or to comply with the requirements of any
Depositary:

 

“THIS
SECURITY IS IN GLOBAL FORM WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A
DEPOSITARY. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR
SECURITIES IN CERTIFICATED FORM IN THE LIMITED CIRCUMSTANCES DESCRIBED IN
THE INDENTURE, THIS SECURITY 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.”

 

20

 

ARTICLE
3

 

THE
SECURITIES

 

Section 3.01    Amount
Unlimited; Issuable in Series. The aggregate principal amount of Securities
which may be authenticated and delivered under this Indenture is unlimited.

 

The Securities may be issued
from time to time in one or more series. Prior to the issuance of Securities of
any series, there shall be established in or pursuant to (i) a Board
Resolution, (ii) action taken pursuant to a Board Resolution and (subject
to Section 3.03) set forth, or determined in the manner provided, in an
Officers’ Certificate, or (iii) one or more indentures supplemental
hereto:

 

(1) the
title of the Securities of the series (which shall distinguish the Securities
of the series from all other Securities);

 

(2) the
purchase price, denomination and any limit upon the aggregate principal amount
of the Securities of the series which may be authenticated and delivered under
this Indenture (except for Securities authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other
Securities of the series pursuant to Sections 3.04, 3.05, 3.06, 9.06 or 11.07);

 

(3) the
date or dates on which the principal of and premium, if any, on the Securities
of the series is payable or the method of determination thereof;

 

(4) the
rate or rates at which the Securities of the series shall bear interest, if
any, or the method of calculating such rate or rates of interest, the date or
dates from which such interest shall accrue or the method by which such date or
dates shall be determined, the Interest Payment Dates on which any such
interest shall be payable and the Regular Record Date, if any, for the interest
payable on any Interest Payment Date;

 

(5) the
place or places where the principal of, premium, if any, and interest, if any,
on Securities of the series shall be payable;

 

(6) the
place or places where the Securities may be exchanged or transferred;

 

(7) the
period or periods within which, the price or prices at which, the currency or
currencies (including currency unit or units) in which, and the other terms and
conditions upon which Securities of the series may be redeemed, in whole or in
part, at the option of the Company, and, if other than as provided in Section 11.03,
the manner in which the particular Securities of such series (if less than all
Securities of such series are to be redeemed) are to be selected for
redemption;

 

(8) the
obligation, if any, of the Company to redeem or purchase Securities of the
series in whole or in part pursuant to any sinking fund or analogous provisions
or upon the happening of a specified event or at the option of a Holder thereof
and the period or periods within which, the price or prices at which, and the
other terms and conditions upon which Securities of the series shall be
redeemed or purchased, in whole or in part, pursuant to such obligation;

 

(9) if
other than denominations of $1,000 and any integral multiple thereof, the
denominations in which Securities of the series shall be issuable;

 

(10) if
other than U.S. dollars, the currency or currencies (including currency unit or
units) in which payments of principal of, premium, if any, and interest on the
Securities of the series shall or may by payable, or in which the Securities of
the series shall be denominated, and the particular provisions applicable
thereto;

 

(11)
if the payments of principal of, premium, if any, or interest on the Securities
of the series are to be made, at the election of the Company or a Holder, in a
currency or currencies (including currency unit or units) other than that in
which such Securities are denominated or designated to be payable, the currency
or currencies (including currency unit or units) in which such payments are to
be made, the terms and conditions of such payments and the manner in which the
exchange rate with respect to such payments shall be determined, and the
particular provisions applicable thereto;

 

21

 

(12)
if the amount of payments of principal of, premium, if any, and interest on the
Securities of the series shall be determined with reference to an index,
formula or other method (which index, formula or method may be based, without
limitation, on a currency or currencies (including currency unit or units)
other than that in which the Securities of the series are denominated or
designated to be payable), the index, formula or other method by which such
amounts shall be determined;

 

(13)
if other than the principal amount thereof, the portion of the principal amount
of Securities of the series which shall be payable upon declaration of acceleration
of the Maturity thereof pursuant to Section 5.02 or the method by which
such portion shall be determined;

 

(14)
any modifications of or additions to the Events of Default or the covenants of
the Company set forth herein with respect to Securities of the series and
whether and the conditions under which the Holders of the Securities of the
series may waive any such Event of Default or compliance with any such covenant
relating to the Securities of such series;

 

(15)
if either or both of Section 13.02 and Section 13.03 shall be
inapplicable, in whole or in part, to the Securities of the series (provided
that if no such inapplicability shall be specified, then both Section 13.02
and Section 13.03 shall be applicable to the Securities of the series) and
any modification to either such section as it relates to such series of
Securities;

 

(16)
if other than the Trustee, the identity of the Registrar and any Paying Agent;

 

(17)
if the Securities of the series shall be issued in whole or in part in global
form, (i) the Depositary for such global Securities, (ii) the form of
any legend in addition to or in lieu of that in Section 2.06 which shall
be borne by such global Security, (iii) whether beneficial owners of
interests in any Securities of the series in global form may exchange such
interests for certificated Securities of such series and of like tenor of any
authorized form and denomination, and (iv) if other than as provided in Section 3.05,
the circumstances under which any such exchange may occur;

 

(18)
if the Holders of the Securities of the series may convert or exchange the
Securities of the series into or for securities of the Company or of other
entities or other property (or the cash value thereof), the specific terms of
and period during which such conversion or exchange may be made;

 

(19)
if the Securities of the series shall have the benefits of any Guarantee and,
if so, the identity of the Guarantor or Guarantors and the terms and provisions
applicable to any such Guarantee;

 

(20)
any provisions for the satisfaction and discharge of the Securities of the
series, including provisions in addition to or modifying the provisions of Article 4
as they pertain to Securities of the series;

 

(21)
any addition to or change in the covenants set forth in Article 10 which
applies to Securities of the series;

 

(22)
the subordination of the Securities of such series to other Indebtedness of the
Company, including without limitation, the Securities of any other series; and

 

(23)
any other terms of the series, including any terms which may be required by or
advisable under the laws of the United States of America or regulations
thereunder or advisable (as determined by the Company) in connection with the
marketing of Securities of the series.

 

All Securities of any one
series shall be substantially identical except as to denomination and except as
may otherwise be provided (i) by a Board Resolution, (ii) by action
taken pursuant to a Board Resolution and (subject to Section 3.03) set
forth, or determined in the manner provided, in an Officers’ Certificate or (iii) in
any such indenture supplemental hereto. All Securities of any one series need
not be issued at the same time and, unless otherwise provided, a series may be
reopened, without the consent of the Holders, for issuances of additional
Securities of such series.

 

If any of the terms of the
Securities of any series are established by action taken pursuant to a Board
Resolution, a copy of an appropriate record of such action shall be certified
by the Secretary or an Assistant Secretary of the Company and delivered to the
Trustee at or prior to the delivery of the Officers’ Certificate setting forth,
or providing the manner for determining, the terms of the Securities of such
series, and an appropriate record of any action 

 

22

 

taken
pursuant thereto in connection with the issuance of any Securities of such
series shall be delivered to the Trustee prior to the authentication and
delivery thereof.

 

Section 3.02    Denominations.
The Securities of each series shall be issuable in registered form without
coupons in such denominations as shall be specified as contemplated by Section 3.01.
In the absence of any such provisions with respect to the Securities of any
series, the Securities of such series shall be issuable in denominations of
$1,000 and any integral multiple thereof.

 

Section 3.03    Execution,
Authentication, Delivery and Dating. The Securities shall be executed on behalf
of the Company by its Chairman of the Board, its Chief Executive Officer, its
President, its Chief Financial Officer, or its Chief Accounting Officer
attested by its Secretary or one of its Assistant Secretaries. The signature of
any of these officers on the Securities may be manual or facsimile. Typographical
and other minor errors or defects in any such reproduction of the seal or any
such signature shall not affect the validity or enforceability of any Security
that has been duly authenticated and delivered by the Trustee.

 

Securities bearing the manual
or facsimile signatures of individuals who were at any time the proper officers
of the Company shall bind the Company, notwithstanding that such individuals or
any of them have ceased to hold such offices prior to the authentication and
delivery of such Securities or did not hold such offices at the date of such
Securities.

 

At any time and from time to
time after the execution and delivery of this Indenture, the Company may
deliver Securities of any series executed by the Company to the Trustee for authentication,
together with a Company Order for the authentication and delivery of such
Securities, and the Trustee in accordance with the Company Order shall
authenticate and make such Securities available for delivery. If the form or
terms of the Securities of the series have been established in or pursuant to
one or more Board Resolutions as permitted by Sections 2.01 and 3.01, in
authenticating such Securities, and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be
entitled to receive, and (subject to Sections 315(a) through (d) of
the Trust Indenture Act) shall be fully protected in relying upon, an Opinion
of Counsel stating (subject to customary assumptions, conditions and
exceptions):

 

(a) if the terms of such
Securities have been established by or pursuant to Board Resolution as
permitted by Section 3.01, that such terms have been established in
conformity with the provisions of this Indenture; and

 

(b) that such
Securities, when authenticated and delivered by the Trustee and issued by the
Company in the manner and subject to any conditions specified in such Opinion
of Counsel, will constitute valid and legally binding obligations of the
Company, enforceable in accordance with their terms, except to the extent
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance and other similar laws
affecting the enforcement of creditors’ rights generally and by the effect of
general principles of equity (regardless of whether enforceability is
considered in a proceeding in equity or at law).

 

If such terms have been so
established, the Trustee shall not be required to authenticate such Securities
if the issue of such Securities pursuant to this Indenture will affect the
Trustee’s own rights, duties or immunities under the Securities and this
Indenture or otherwise in a manner which is not reasonably acceptable to the
Trustee, or in the written opinion of counsel to the Trustee (which counsel may
be an employee of the Trustee) such authentication may not lawfully be made or
would involve the Trustee in personal liability.

 

Notwithstanding the
provisions of Section 3.01 and of the immediately preceding paragraph, if
all Securities of a series are not to be originally issued at one time, it
shall not be necessary to deliver the Board Resolution and the Officers’
Certificate otherwise required pursuant to Section 3.01 or the Company
Order and Opinion of Counsel otherwise required pursuant to the second
preceding paragraph at or prior to the time of authentication of each Security
of such series if such documents are delivered at or prior to the
authentication upon original issuance of the first Security of such series to
be issued.

 

If the Company shall
establish pursuant to Section 3.01 that the Securities of a series are to
be issued in whole or in part in the form of one or more global Securities,
then the Company shall execute and the Trustee shall, in accordance with this Section and
the Company Order with respect to the authentication and delivery of such
series, authenticate and deliver one or more Securities of such series in
global form that (i) shall be in an aggregate amount equal to the
aggregate principal amount of the Outstanding Securities of such series to be
represented by such Security or Securities in global form, (ii) shall be
registered in the name of the Depositary for such Security or Securities in 

 

23

 

global
form or its nominee, and (iii) shall be made available for delivery by the
Trustee to such Depositary or pursuant to such Depositary’s instruction.

 

The Trustee shall have no
responsibility to determine if the Depositary is so registered. Each Depositary
shall enter into an agreement with the Trustee and the Company governing the
respective duties and rights of such Depositary, the Company and the Trustee
with regard to Securities issued in global form.

 

Unless otherwise provided for
in the form of Security, each Security shall be dated the date of its
authentication.

 

No Security shall be entitled
to any benefits under this Indenture or be valid or obligatory for any purpose
unless there appears on such Security a certificate of authentication
substantially in the form provided for herein executed by the Trustee or an
Authenticating Agent by manual signature, and such certificate upon any
Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder and is entitled to
the benefits of this Indenture.

 

Notwithstanding the
foregoing, if any Security shall have been authenticated and delivered
hereunder but never issued and sold by the Company, and the Company shall
deliver such Security to the Trustee for cancellation as provided in Section 3.09
together with a written statement (which need not comply with Section 1.02
and need not be accompanied by an Opinion of Counsel) stating that such
Security has never been issued and sold by the Company, for all purposes of
this Indenture such Security shall be deemed never to have been authenticated
and delivered hereunder and shall not be entitled to the benefits of this
Indenture.

 

Section 3.04    Temporary
Securities. Pending the preparation of definitive Securities of any series, the
Company may execute, and upon Company Order the Trustee shall authenticate and
make available for delivery, temporary Securities of such series which are
printed, lithographed, typewritten, mimeographed or otherwise produced, in any
authorized denomination, substantially of the tenor of the definitive
Securities in lieu of which they are issued and with such appropriate
insertions, omissions, substitutions and other variations as the officers
executing such Securities may determine, as evidenced by their execution of
such Securities.

 

In the case of Securities of
any series, such temporary Securities may be in global form, representing all
or a portion of the Outstanding Securities of such series.

 

Except in the case of
temporary Securities in global form (which shall be exchanged in accordance
with the provisions thereof), if temporary Securities of any series are issued,
the Company will cause definitive Securities of that series to be prepared
without unreasonable delay. After the preparation of definitive Securities of
such series, the temporary Securities of such series shall be exchangeable for
definitive Securities of such series upon surrender of the temporary Securities
of such series at the office or agency of the Company in a Place of Payment for
that series, without charge to the Holder. Upon surrender for cancellation of
any one or more temporary Securities of any series, the Company shall execute
and the Trustee shall authenticate and make available for delivery in exchange
therefor a like principal amount of definitive Securities of the same series of
authorized denominations and of like tenor. Until so exchanged, the temporary
Securities of any series shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities of such series.

 

Section 3.05    Registration,
Registration of Transfer and Exchange. The Company shall cause to be kept at
the Corporate Trust Office of the Trustee or in any office or agency to be
maintained by the Company in accordance with Section 10.02 in a Place of
Payment a register (the register maintained in such office and in any other
office or agency of the Company in a Place of Payment being herein sometimes
collectively referred to as the “SECURITY REGISTER”) in which, subject to such
reasonable regulations as it may prescribe, the Company shall provide for the
registration of Securities and of registration of transfers of Securities. The
Trustee is hereby appointed “SECURITY REGISTRAR” for the purpose of registering
Securities and transfers of Securities as herein provided.

 

Upon surrender for
registration of transfer of any Security of any series at the office or agency
of the Company in a Place of Payment for that series, the Company shall
execute, and the Trustee shall authenticate and make available for delivery, in
the name of the designated transferee or transferees, one or more new
Securities of the same series, of any authorized denominations and of a like
aggregate principal amount and Stated Maturity.

 

At the option of the Holder,
Securities of any series (except a Security in global form) may be exchanged
for other Securities of the same series, of any authorized denominations and of
a like aggregate principal amount and Stated Maturity, upon surrender of the
Securities to be exchanged at such office or agency. Whenever any Securities 

 

24

 

are
so surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and make available for delivery, the Securities which the Holder
making the exchange is entitled to receive.

 

Each Security issued in
global form authenticated under this Indenture shall be registered in the name
of the Depositary designated for such series or a nominee thereof and delivered
to such Depositary or a nominee thereof or custodian therefor, and each such
Security issued in global form shall constitute a single Security for all
purposes of this Indenture.

 

Notwithstanding any other
provision of this Section, unless and until it is exchanged in whole or in part
for Securities in certificated form in the circumstances described below, a
Security in global form representing all or a portion of the Securities of a
series may not be transferred except as a whole by the Depositary for such
series to a nominee of such Depositary or by a nominee of such Depositary to
such Depositary or another nominee of such Depositary or by such Depositary or
any such nominee to a successor Depositary for such series or a nominee of such
successor Depositary.

 

If at any time the Depositary
for the Securities of a series notifies the Company that it is unwilling or
unable to continue as Depositary for the Securities of such series or defaults
in the performance of its duties as Depositary or it at any time the Depositary
for the Securities of such series shall no longer be eligible to perform such
duties, the Company shall appoint a successor Depositary with respect to the
Securities of such series. If a successor Depositary for the Securities of such
series is not appointed by the Company within 90 days after the Company
receives such notice or becomes aware of such ineligibility, the Company’s
selection pursuant to Section 3.01(17) shall no longer be effective with
respect to the Securities of such series and the Company shall execute, and the
Trustee, upon receipt of a Company Order for the authentication and delivery of
certificated Securities of such series of like tenor, shall authenticate and
deliver Securities of such series of like tenor in certificated form, in
authorized denominations and in an aggregate principal amount equal to the
principal amount of the Security or Securities of such series of like tenor in
global form in exchange for such Security or Securities in global form.

 

The Company may at any time
in its sole discretion determine that Securities issued in global form shall no
longer be represented by such a Security or Securities in global form. In such
event the Company shall execute, and the Trustee, upon receipt of a Company
Order for the authentication and delivery of certificated Securities of such
series of like tenor, shall authenticate and deliver, Securities of such series
of like tenor in certificated form, in authorized denominations and in an
aggregate principal amount equal to the principal amount of the Security or
Securities of such series of like tenor in global form in exchange for such
Security or Securities in global form.

 

If specified by the Company
pursuant to Section 3.01 with respect to a series of Securities, the Depositary
for such series may surrender a Security in global form of such series in
exchange in whole or in part for Securities of such series in certificated form
on such terms as are acceptable to the Company and such Depositary. Thereupon,
the Company shall execute, and the Trustee shall authenticate and deliver,
without service charge,

 

(i) to each Person
specified by such Depositary a new certified Security or Securities of the same
series of like tenor, of any authorized denomination as requested by such
Person in aggregate principal amount equal to and in exchange for such Person’s
beneficial interest in the Security in global form; and

 

(ii) to such Depositary
a new Security in global form of like tenor in a denomination equal to the
difference, if any, between the principal amount of the surrendered Security in
global form and the aggregate principal amount of certificated Securities
delivered to Holders thereof.

 

Upon the exchange of a
Security in global form for Securities in certificated form, such Security in
global form shall be canceled by the Trustee.

 

Securities issued in exchange
for a Security in global form pursuant to this Section shall be registered
in such names and in such authorized denominations as the Depositary for such
Security in global form, pursuant to instructions from its direct or indirect
participants or otherwise, shall instruct the Trustee. The Trustee shall
deliver such Securities to the Persons in whose names such Securities are so
registered.

 

Whenever any Securities are
surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Securities which the Holder making the exchange
is entitled to receive.

 

25

 

All Securities issued upon any
registration of transfer or exchange of Securities shall be the valid
obligations of the Company, evidencing the same debt, and entitled to the same
benefits under this Indenture, as the Securities surrendered upon such
registration of transfer or exchange.

 

Every Security presented or
surrendered for registration of transfer or for exchange shall (if so required
by the Company or the Trustee) be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security
Registrar duly executed by the Holder thereof or his attorney duly authorized
in writing.

 

Unless otherwise provided in
the Securities to be transferred or exchanged, no service charge shall be made
for any registration of transfer or exchange of Securities, but the Company may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or
exchange of Securities, other than exchanges pursuant to Section 3.04,
9.06 or 11.07 not involving any transfer.

 

If the Securities of any
series (or of any series and specified tenor) are to be redeemed in part, the
Company shall not be required (i) to issue, register the transfer of or
exchange Securities of such series during a period beginning at the opening of
business 15 days before the day of the mailing of a notice of redemption of
Securities of that series selected for redemption under Section 11.03 and
ending at the close of business on the day of such mailing, or (ii) to
register the transfer of or exchange any Security so selected for redemption,
in whole or in part, except the unredeemed portion of any Security being
redeemed in part.

 

The foregoing provisions
relating to registration, transfer and exchange may be modified, supplemented
or superseded with respect to any series of Securities by a Board Resolution or
in one or more indentures supplemental hereto.

 

Section 3.06    Mutilated,
Destroyed, Lost and Stolen Securities. If any mutilated Security is surrendered
to the Trustee, the Company shall execute and the Trustee shall authenticate
and deliver in exchange therefor a new Security of the same series and of like
tenor and principal amount and bearing a number not contemporaneously
outstanding.

 

If there shall be delivered
to the Company and the Trustee (i) evidence to their satisfaction of the
destruction, loss or theft of any Security and (ii) such security or
indemnity as may be required by them to save each of them and any agent of
either of them harmless, then, in the absence of notice to the Company or the
Trustee that such Security has been acquired by a bona fide purchaser, the
Company shall execute and upon its request the Trustee shall authenticate and
deliver, in lieu of any such destroyed, lost or stolen Security, a new Security
of the same series and of like tenor and principal amount and bearing a number
not contemporaneously outstanding.

 

In case any such mutilated,
destroyed, lost or stolen Security has become or is about to become due and
payable, the Company in its discretion may, instead of issuing a new Security,
pay such Security.

 

Upon the issuance of any new
Security under this Section, the Company may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and expenses of the
Trustee) connected therewith.

 

Every new Security of any
series issued pursuant to this Section in lieu of any destroyed, lost or
stolen Security shall constitute an original additional contractual obligation
of the Company, whether or not the destroyed, lost or stolen Security shall be
at any time enforceable by anyone, and shall be entitled to all the benefits of
this Indenture equally and proportionately with any and all other Securities of
that series duly issued hereunder.

 

The provisions of this Section are
exclusive and shall preclude (to the extent lawful) all other rights and
remedies with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities.

 

Section 3.07    Payment of
Interest; Interest Rights Preserved. Interest on any Security which is payable,
and is punctually paid or duly provided for, on any Interest Payment Date shall
be paid to the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest.

 

Any interest on any Security
of any series which is payable, but is not punctually paid or duly provided
for, on any Interest Payment Date (herein called “DEFAULTED INTEREST”) shall
forthwith cease to be payable to the 

 

26

 

Holder
on the relevant Regular Record Date by virtue of having been such Holder, and
such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in Clause (1) or (2) below:

 

(1) The
Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities of such series (or their respective Predecessor
Securities) are registered at the close of business on a Special Record Date
for the payment of such Defaulted Interest, which shall be fixed in the
following manner. The Company shall notify the Trustee in writing of the amount
of Defaulted Interest proposed to be paid on each Security of such series and
the date of the proposed payment (which shall be not less than 25 days after
the receipt by the Trustee of such notice, unless such Trustee shall consent to
an earlier date), and at the same time the Company shall deposit with the
Trustee an amount of money equal to the aggregate amount proposed to be paid in
respect of such Defaulted Interest or shall make arrangements reasonably
satisfactory to the Trustee for such deposit prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the
Persons entitled to such Defaulted Interest as in this Clause provided.
Thereupon the Trustee shall fix a Special Record Date for the payment of such
Defaulted Interest which shall be not more than 15 days and not less than 10
days prior to the date of the proposed payment and not less than 10 days after
the receipt by the Trustee of the notice of the proposed payment. The Trustee
shall promptly notify the Company of such Special Record Date and, in the name
and at the reasonable expense of the Company, shall cause notice of the
proposed payment of such Defaulted Interest and the Special Record Date
therefor to be mailed, first-class postage prepaid, to each Holder of Securities
of such series at his address as it appears in the Security Register, not less
than 10 days prior to such Special Record Date. Notice of the proposed payment
of such Defaulted Interest and the Special Record Date therefor having been so
mailed, such Defaulted Interest shall be paid to the Persons in whose names the
Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on such Special Record Date and shall no
longer be payable pursuant to the following Clause (2).

 

(2) The
Company may make payment of any Defaulted Interest on the Securities of any
series in any other lawful manner not inconsistent with the requirements of any
securities exchange on which such Securities may be listed, and upon such
notice as may be required by such exchange, if, after notice given by the
Company to the Trustee of the proposed payment pursuant to this Clause (2),
such manner of payment shall be deemed practicable by the Trustee.

 

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

 

Section 3.08    Persons Deemed
Owners. Prior to due presentment of a Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name such Security is registered as the owner of such
Security for the purpose of receiving payment of principal of, premium, if any,
and (subject to Sections 3.05 and 3.07) interest on such Security and for all
other purposes whatsoever, whether or not such Security be overdue, and neither
the Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary.

 

None of the Company, the
Trustee or any agent of the Company or the Trustee shall have any
responsibility or liability for any aspect of the records relating to or
payments made on account of beneficial ownership interest of a Security in
global form, or for maintaining, supervising or reviewing any records relating
to such beneficial ownership interest. Notwithstanding the foregoing, with
respect to any Security in global form, nothing herein shall prevent the
Company or the Trustee or any agent of the Company or the Trustee, from giving
effect to any written certification, proxy or other authorization furnished by
any Depositary (or its nominee), as a Holder, with respect to such Security in
global form or impair, as between such Depositary and owners of beneficial
interests in such Security in global form, the operation of customary practices
governing the exercise of the right of such Depositary (or its nominee) as
holder of such Security in global form.

 

Section 3.09    Cancellation.
All Securities surrendered for payment, redemption, registration of transfer or
exchange or for credit against any sinking fund payment shall, if surrendered
to any Person other than the Trustee, be delivered to the Trustee and shall be
promptly canceled by it. The Company may at any time deliver to the Trustee for
cancellation any Securities previously authenticated and delivered hereunder
which the Company may have acquired in any manner whatsoever, and all
Securities so delivered shall be promptly canceled by the Trustee. No
Securities shall be authenticated in lieu of or in exchange for any Securities
canceled as provided in this Section, except as expressly permitted by this
Indenture. All canceled Securities shall be held by the Trustee and may be
destroyed (and, if so destroyed, certification of their destruction shall be
delivered to the Company, unless, by a Company Order, the Company shall direct
that canceled Securities be returned to it).

 

27

 

Section 3.10                                Computation of
Interest. Except as otherwise specified as contemplated by Section 3.01
for Securities of any series, interest on the Securities of each series shall
be computed on the basis of a year of twelve 30-day months.

 

Section 3.11                                CUSIP Number.
The Company in issuing Securities of any series may use a “CUSIP” number, and
if so, the Trustee may use the CUSIP number in notices of redemption or
exchange as a convenience to Holders of such series; provided, that any such
notice may state that no representation is made as to the correctness or
accuracy of the CUSIP number printed on the notice or on the Securities of such
series, and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be
affected by any defect in or omission of such numbers. The Company will
promptly notify the Trustee of any change in the CUSIP number of any series of
Securities.

 

Section 3.12                                Wire Transfers.
Notwithstanding any other provision to the contrary in this Indenture, the
Company may make any payment of moneys required to be deposited with the
Trustee on account of principal of, or premium, if any, or interest on the
Securities (whether pursuant to optional or mandatory redemption payments,
interest payments or otherwise) by wire transfer of immediately available funds
to an account designated by the Trustee on or before the date and time such
moneys are to be paid to the Holders of the Securities in accordance with the
terms hereof.

 

ARTICLE
4

SATISFACTION AND DISCHARGE

 

Section 4.01                                Satisfaction and
Discharge of Indenture. This Indenture shall cease to be of further effect
(except as to any surviving rights of registration of transfer or exchange of
Securities and replacement of such Securities which may have been lost, stolen
or mutilated as herein expressly provided for or in the form of Security for
such series), when the Trustee, upon Company Request and at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when

 

(1) either (a) all Securities
theretofore authenticated and delivered (other than (i) Securities which
have been destroyed, lost or stolen and which have been replaced or paid as
provided in Section 3.06 and (ii) Securities for whose payment money
has theretofore been deposited in trust or segregated and held in trust by the
Company and thereafter repaid to the Company or discharged from such trust, as
provided in Section 10.05) have been delivered to the Trustee for
cancellation; or (b) all such Securities not theretofore delivered to the
Trustee for cancellation (i) have become due and payable, or (ii) will
become due and payable at their Stated Maturity within one year, or (iii) are
to be called for redemption within one year under arrangements reasonably
satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the reasonable expense, of the Company, and the
Company, in the case of (b)(i), (ii) or (iii) above, has deposited
with the Trustee as trust funds in trust for the purpose an amount, in the
currency or currencies or currency unit or units in which the Securities of
such series are payable, sufficient to pay and discharge the entire
indebtedness on such Securities not theretofore delivered to the Trustee for
cancellation, for principal, premium, if any, and interest to the date of such
deposit (in the case of Securities which have become due and payable) or the
Stated Maturity or Redemption Date, as the case may be;

 

(2) the Company has paid or caused
to be paid all other sums payable hereunder by the Company;

 

(3) the Company has delivered to
the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating
that all conditions precedent provided for herein relating to the satisfaction
and discharge of this Indenture have been complied with; and

 

(4) no event or condition shall
exist on the date of such deposit that, pursuant to the provisions of Section 14.03,
would prevent the Company from making payments of the principal of or interest
on the Securities of such series on the date of such deposit.

 

Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 6.07, the obligations of the Company
to any Authenticating Agent under Section 6.14 and, if money shall have
been deposited with the Trustee pursuant to subclause (b) of clause (1) of
this Section, the obligations of the Trustee under Section 4.02 and the
last paragraph of Section 10.05 shall survive.

 

Section 4.02                                Application of
Trust Money. Subject to the provisions of the last paragraph of Section 10.05,
all money deposited with the Trustee pursuant to Section 4.01 shall be
held in trust and applied by it, in accordance 

 

28

 

with the provisions of the Securities 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 or received by the Trustee, but such
money need not be segregated from other funds except to the extent required by
law.

 

Section 4.03                                Application to a
Specific Series of Securities. The Company may elect to satisfy and
discharge its obligations with respect to a specific series of Securities under
the Indenture by complying with the terms of Article 4. If the Company
makes such election, (a) the terms of Section 4.01 and 4.02 shall
apply only to the specific series of Securities and the terms of the Indenture
as it relates to such series of Securities and (b) the other Securities
issued hereunder and the Indenture as it relates to such other Securities shall
remain in full force and effect.

 

ARTICLE
5

REMEDIES

 

Section 5.01                                Events of
Default. Except as otherwise specified as contemplated by Section 3.01 for
Securities of a series, “EVENT OF DEFAULT,” wherever used herein with respect
to Securities of any series, means any one of the following events (whatever
the reason for such Event of Default and whether it shall be voluntary or
involuntary or to be effected by reason of Article 14 hereof or by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

 

(1) the Company defaults in the
payment of interest on any Security of that series when such interest becomes
due and payable and the default continues for a period of 30 days; or

 

(2) the Company defaults in the
payment of the principal of, or premium, if any, on any Security of that series
when the same becomes due and payable at Maturity or on redemption or
otherwise; or

 

(3) the Company fails to deposit
any sinking fund payment, for five days after it becomes due by the terms of a
Security of that series; or

 

(4) the Company fails to observe
or perform in any material respect any of its other covenants, agreements or
warranties in the Securities of that series or this Indenture (other than a
covenant, agreement or warranty a default in whose performance or whose breach
is elsewhere in this Section specifically dealt with or which has
expressly been included in this Indenture solely for the benefit of series of
Securities other than that series), and the failure to observe or perform
continues for the period and after the notice specified in the last paragraph
of this Section; or

 

(5) an event of default, as
defined in any mortgage, indenture, or instrument under which there may be
issued, or by which there may be secured or evidenced, any Indebtedness of the
Company (including Securities of another series) (other than the Securities of
such series) (whether such Indebtedness now exists or shall hereafter be
created or incurred) shall occur, which event of default (i) is caused by
a failure to pay principal of or premium, if any, or interest on such
Indebtedness at final maturity after the expiration of the grace period
provided in such Indebtedness on the date of such event of default, and (ii) results
in Indebtedness becoming or being declared due and payable prior to the date on
which it would otherwise become due and payable, and such default in payment is
not cured or such acceleration shall not be rescinded or annulled within 30
days after written notice to the Company from the Trustee or to the Company and
to the Trustee from the Holders of at least twenty-five percent in aggregate
principal amount of the Outstanding Securities of that series specifying such
event of default and requiring the Company to cure such default in payment or
cause such acceleration to be rescinded or annulled and stating that such
notice is a “NOTICE OF DEFAULT” hereunder; provided, however, that it shall not
be an Event of Default if the principal amount of Indebtedness which is not
paid at maturity or the maturity of which is accelerated is equal to or less
than $50,000,000; provided further that if, prior to a declaration of
acceleration of the maturity of the Securities of that series or the entry of
judgment in favor of the Trustee in a suit pursuant to Section 5.03, such
default shall be remedied or cured by the Company or waived by the holders of
such Indebtedness, then the Event of Default hereunder by reason thereof shall
be deemed likewise to have been thereupon remedied, cured or waived without
further action upon the part of either the Trustee or any of the Holders of the
Securities of that series; or

 

(6) the Company or any of its
Significant Subsidiaries pursuant to or within the meaning of any Bankruptcy
Law (a) commences a voluntary case or proceeding under any Bankruptcy Law
with respect to itself, (b) consents to the entry of a judgment, decree or
order for relief against it in an involuntary case or proceeding under any
Bankruptcy Law, (c) consents to or acquiesces in the institution of
bankruptcy or insolvency proceedings against it, (d) 

 

29

 

applies
for, consents to or acquiesces in the appointment of or taking possession by a
Custodian of it or for all or substantially all of its property, (e) makes
a general assignment for the benefit of its creditors or (f) takes any
corporate action in furtherance of or to facilitate, conditionally or otherwise,
any of the foregoing; or

 

(7) (i) a court of competent
jurisdiction enters a judgment, decree or order for relief in an involuntary
case or proceeding under any Bankruptcy Law which shall (a) approve as
properly filed a petition seeking reorganization, arrangement, adjustment or
composition in respect of the Company or any of its Significant Subsidiaries, (b) appoint
a Custodian of the Company or any of its Significant Subsidiaries or for all or
substantially all of its property or (c) order the winding-up or
liquidation of affairs of the Company or any of its Significant Subsidiaries,
and such judgment, decree or order shall remain unstayed and in effect for a
period of 90 consecutive days; or (ii) any bankruptcy or insolvency
petition or application is filed, or any bankruptcy or insolvency proceeding is
commenced, against the Company or any of its Significant Subsidiaries and such
petition, application or proceeding is not dismissed within 60 days; or (iii) a
warrant of attachment is issued against any material portion of the property of
the Company or any of its Significant Subsidiaries which is not released within
60 days of service; or

 

(8) any other Event of Default
provided with respect to Securities of that series.

 

A
Default under clause (4) above is not an Event of Default until the
Trustee or the Holders of at least twenty-five percent in aggregate principal
amount of the Outstanding Securities of that series notify the Company of the
Default and the Company does not cure the Default within 60 days after receipt
of the notice. The notice must specify the Default, demand that it be remedied
and state that the notice is a “NOTICE OF DEFAULT.” When a Default under clause
(4) above is cured within such 60-day period, it ceases to be a Default.

 

Section 5.02                                Acceleration of
Maturity; Rescission and Annulment. If an Event of Default with respect to
Securities of any series (other than an Event of Default specified in clause (6) or
(7) of Section 5.01) occurs and is continuing, the Trustee by notice
in writing to the Company, or the Holders of at least twenty-five percent in
aggregate principal amount of the Outstanding Securities of that series by
notice in writing to the Company and the Trustee, may declare the unpaid
principal of and accrued interest to the date of acceleration (or, if the
Securities of that series are Original Issue Discount Securities, such portion
of the principal amount as may be specified in the terms of that series) on all
the Outstanding Securities of that series to be due and payable immediately
and, upon any such declaration, the Outstanding Securities of that series (or
specified principal amount) shall become and be immediately due and payable.

 

If
an Event of Default specified in clause (6) or (7) of Section 5.01
occurs, all unpaid principal of and accrued interest on the Outstanding
Securities of that series (or specified principal amount) shall ipso facto
become and be immediately due and payable without any declaration or other act
on the part of the Trustee or any Holder of any Security of that series.

 

Upon
payment of all such principal and interest, all of the Company’s obligations
under the Securities of that series and (upon payment of the Securities of all
series) this Indenture shall terminate, except obligations under Section 6.07.

 

At
any time after a declaration of acceleration of Maturity with respect to
Securities of any series has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in
this Article provided, the Holders of a majority in principal amount of
the Outstanding Securities of that series by notice to the Trustee may rescind
an acceleration and its consequences if (i) all existing Events of
Default, other than the nonpayment of the principal of and interest on the
Securities of that series that has become due solely by such declaration of
acceleration, have been cured or waived, (ii) to the extent the payment of
such interest is lawful, interest on overdue installments of interest and overdue
principal that has become due otherwise than by such declaration of
acceleration have been paid, (iii) the rescission would not conflict with
any judgment or decree of a court of competent jurisdiction and (iv) all
payments due to the Trustee and any predecessor Trustee under Section 6.07
have been made.

 

Section 5.03                                Collection of
Indebtedness and Suits for Enforcement by Trustee.  The Company covenants that if:

 

(1) default is made in the payment
of any interest on any Security of any series when such interest becomes due
and payable and such default continues for a period of 30 days, or

 

(2) default is made in the payment
of the principal of (or premium, if any, on) any Security of any series at the
Maturity thereof, or

 

30

 

(3) default is made in the payment
of any sinking or analogous obligation when the same becomes due by the terms
of the Securities of any series, and any such default continues for any period
of grace provided with respect to the Securities of such series,

 

the
Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Securities, the whole amount then due and payable on such
Securities for principal (and premium, if any) and interest and, to the extent that
payment of such interest shall be legally enforceable, interest on any overdue
principal (and premium, if any) and on any overdue interest, at the rate or
rates prescribed therefor in such Securities, and, in addition thereto, 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.

 

If
the Company fails to pay such amounts forthwith upon such demand, the Trustee,
in its own name and as trustee of an express trust, may institute a judicial
proceeding for the collection of the sums so due and unpaid, may prosecute such
proceeding to judgment or final decree and may enforce the same against the
Company or any other obligor upon such Securities and collect the moneys
adjudged or decreed to be payable in the manner provided by law out of the
property of the Company or any other obligor upon such Securities, wherever
situated.

 

If
an Event of Default with respect to Securities of any series occurs and is
continuing, the Trustee may in its discretion proceed to protect and enforce
its rights and the rights of the Holders of Securities of such series by such
appropriate judicial proceedings as the Trustee shall deem most effectual to
protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any
power granted herein, or to secure any other proper remedy.

 

Section 5.04                                Trustee May File
Proofs of Claim. In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition
or other judicial proceeding relative to the Company or any other obligor upon
the Securities or the property of the Company or of such other obligor or their
creditors, the Trustee (irrespective of whether the principal of the Securities
shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand on
the Company for the payment of overdue principal or interest) shall be entitled
and empowered, by intervention in such proceeding or otherwise,

 

(i) to
file and prove a claim for the whole amount of principal (and premium, if any)
and interest owing and unpaid in respect of the Securities and to file such
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 agent and counsel) and
of the Holders allowed in such judicial proceedings, and

 

(ii) to
collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute the same; and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such
judicial proceeding is hereby authorized by each Holder to make such payments
to the Trustee and, in the event that the Trustee shall consent to the making
of such payments directly to the Holders, to pay to the Trustee any amount due
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 6.07.

 

Nothing
herein contained shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder thereof or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding.

 

Section 5.05                                Trustee May Enforce
Claims Without Possession of Securities. All rights of action and claims under
this Indenture or the Securities may be prosecuted and enforced by the Trustee
without the possession of any of the Securities or the production thereof in
any proceeding relating thereto, and any such proceeding instituted by the
Trustee shall be brought in its own name as trustee of an express trust, and
any recovery of judgment shall, after provision for the payment of the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, be for the ratable benefit of the Holders of the
Securities in respect of which such judgment has been recovered.

 

Section 5.06                                Application of
Money Collected. Any money collected by the Trustee pursuant to this Article in
respect of the Securities of any series shall be applied in the following
order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money on account of principal, premium, if any, or
interest, upon presentation of 

 

31

 

the Securities in respect of which moneys have been collected and the
notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:

 

First:  To the payment of all
amounts due the Trustee under Section 6.07 applicable to such series;

 

Second: To the payment of the amounts then due and unpaid for principal
of, and premium, if any, and interest on the Securities of such series in
respect of which or for the benefit of which such money has been collected,
ratably, without preference or priority of any kind, according to the amounts
due and payable on such Securities of such series for principal, and premium,
if any, and interest, respectively; and

 

Third:  To the Company.

 

The
Trustee may fix a record date and payment date for any payment to Holders
pursuant to this Section 5.06. At least ten (10) days before such
record date, the Trustee shall mail to each Holder and the Company a notice
that states the record date, the payment date and the amount to be paid.

 

Section 5.07                                Limitation on
Suits. No Holder of any Security of any series shall have any right to
institute any proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless:

 

(1) such Holder has previously
given written notice to the Trustee of a continuing Event of Default with
respect to the Securities of that series;

 

(2) the Holders of at least
twenty-five percent in principal amount of the Outstanding Securities of that
series shall have made written request to the Trustee to institute proceedings
in respect of such Event of Default in its own name as Trustee hereunder;

 

(3) such Holder or Holders shall
have offered to the Trustee reasonable indemnity against the costs, expenses
and liabilities to be incurred in compliance with such request;

 

(4) the Trustee for 60 days after
its receipt of such notice, request and offer of indemnity has failed to
institute any such proceeding; and

 

(5) no direction inconsistent with
such written request has been given to the Trustee during such 60-day period by
the Holders of a majority in principal amount of the Outstanding Securities of
that series;

 

it being understood and intended that no one or more of Holders of
Securities of any series shall have any right in any manner whatever by virtue
of, or by availing of, any provision of this Indenture to affect, disturb or
prejudice the rights of any other of such Holders, or to obtain or to seek to
obtain priority or preference over any other of such Holders or to enforce any
right under this Indenture, except in the manner herein provided and for the
equal and ratable benefit of all Holders of Securities of the affected series.

 

Section 5.08                                Unconditional
Right of Holders to Receive Principal, Premium and Interest. Notwithstanding
any other provision in this Indenture but subject to Article 14, the
Holder of any Security shall have the right, which is absolute and
unconditional, to receive payment of the principal of, premium, if any, and
(subject to Section 3.07) interest on such Security on the Stated Maturity
or Maturities expressed in such Security (or, in the case of redemption, on the
Redemption Date) and to institute suit for the enforcement of any such payment,
and such rights shall not be impaired without the consent of such Holder.

 

Section 5.09                                Restoration of
Rights and Remedies. If the Trustee or any Holder has instituted any proceeding
to enforce any right or remedy under this Indenture and such proceeding has
been discontinued or abandoned for any reason, or has been determined adversely
to the Trustee or to such Holder, then and in every such case, subject to any
determination in such proceeding, the Company, the Trustee and the Holders
shall be restored severally and respectively to their former positions
hereunder and thereafter all rights and remedies of the Trustee and the Holders
shall continue as though no such proceeding has been instituted.

 

Section 5.10                                Rights and
Remedies Cumulative. Except as otherwise provided with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Securities in
the last paragraph of Section 3.06, no right or remedy herein conferred
upon or reserved to the Trustee or to the Holders is intended to be exclusive
of any other right or remedy, and every right and remedy shall, to the extent
permitted by law, be cumulative and in addition to 

 

32

 

every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

 

Section 5.11                                Delay or
Omission Not Waiver. No delay or omission of the Trustee or of any Holder of
any Securities to exercise any right or remedy accruing upon any Event of
Default shall impair any such right or remedy or constitute a waiver of any
such Event of Default or an acquiescence therein. Every right and remedy given
by this Article or by law to the Trustee or to the Holders may be
exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders, as the case may be.

 

Section 5.12                                Control by
Holders. The Holders of a majority in principal amount of the Outstanding
Securities of any series shall have the right to direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee, with respect to the
Securities of such series, provided that:

 

(1) such direction shall not be in
conflict with any rule of law or with this Indenture;

 

(2) the Trustee may take any other
action deemed proper by the Trustee which is not inconsistent with such
direction; and

 

(3) subject to Section 6.01,
the Trustee need not take any action which might involve the Trustee in
personal liability or be unduly prejudicial to the Holders not joining therein.

 

Section 5.13                                Waiver of Past
Defaults. The Holders of not less than a majority in principal amount of the
Outstanding Securities of any series may by written notice to the Trustee on
behalf of the Holders of all the Securities of such series waive any Default or
Event of Default with respect to such series and its consequences, except a
Default or Event of Default:

 

(1) in respect of the payment of
the principal of or premium, if any, or interest on any Security of such
series, or

 

(2) in respect of a covenant or
other provision hereof which under Article Nine cannot be modified or
amended without the consent of the Holder of each Outstanding Security of such
series affected.

 

Upon
any such waiver, such Default or Event of Default shall cease to exist and
shall be deemed to have been cured, for every purpose of this Indenture and the
Securities of such series; but no such waiver shall extend to any subsequent or
other Default or Event of Default or impair any right consequent thereon.

 

Section 5.14                                Undertaking for
Costs. All parties to this Indenture agree, and each Holder of any Security by
his acceptance thereof shall be deemed to have agreed, that any court may in
its discretion require, 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,
suffered or omitted by it as Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may
in its discretion assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in such suit, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to any suit instituted by the
Company, to any suit instituted by the Trustee, to any suit instituted by any
Holder, or group of Holders, holding in the aggregate more than ten percent in
principal amount of the Outstanding Securities of any series, or to any suit
instituted by any Holder for the enforcement of the payment of the principal of
or premium, if any, or interest on any Security on or after the Stated Maturity
or Maturities expressed in such Security (or, in the case of redemption, on or
after the Redemption Date).

 

ARTICLE
6

 

THE
TRUSTEE

 

Section 6.01                                Certain Duties
and Responsibilities of the Trustee.

 

(a) Except
during the continuance of an Event of Default, the Trustee’s duties and
responsibilities under this Indenture shall be governed by Section 315(a) of
the Trust Indenture Act.

 

33

 

(b) In
case an Event of Default has occurred and is continuing, and is known to the
Trustee, the Trustee shall exercise the rights and powers vested in it by this
Indenture, and shall use the same degree of care and skill in their exercise,
as a prudent man would exercise or use under the circumstances in the conduct
of his own affairs.

 

(c) None
of the provisions of Section 315(d) of the Trust Indenture Act shall
be excluded from this Indenture.

 

(d) Every
provision of this Indenture which pertains to the Trustee shall be subject to
this Section 6.01.

 

Section 6.02                                Notice of
Defaults. Within 90 days after the occurrence of any Default or Event of
Default with respect to the Securities of any series, the Trustee shall give to
all Holders of Securities of such series, as their names and addresses appear
in the Security Register, notice of such Default or Event of Default known to
the Trustee, unless such Default or Event of Default shall have been cured or
waived; provided, however, that, except in the case of a Default or Event of
Default in the payment of the principal of or premium, if any, or interest on
any Security of such series, the Trustee shall be protected in withholding such
notice if and so long as the board of directors, the executive committee or a
trust committee of directors and/or Responsible Officers of the Trustee in good
faith determine that the withholding of such notice is in the interest of the
Holders of Securities of such series.

 

Section 6.03                                Certain Rights
of Trustee.  Subject to the provisions of
the Trust Indenture Act:

 

(a) the
Trustee may rely and shall be protected in acting or refraining from acting
upon any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, other
evidence of indebtedness or other paper or document believed by it to be
genuine and to have been signed or presented by the proper party or parties;

 

(b) any
request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or Company Order and any resolution of the Board
of Directors may be sufficiently evidenced by a Board Resolution;

 

(c) whenever
in the administration of this Indenture the Trustee shall deem it desirable
that a matter be proved or established prior to taking, suffering or omitting
any action hereunder, the Trustee (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, rely upon an Officers’
Certificate;

 

(d) the
Trustee may consult with counsel and the written advice of such counsel or any
Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder in good faith
and in reliance thereon;

 

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

 

(f) prior
to the occurrence of an Event of Default with respect to the Securities of any
series and after the curing or waiving of all such Events of Default which may
have occurred, the Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order,
approval or other paper or document, or the books and records of the Company,
unless requested in writing to do so by the Holders of a majority in principal
amount of the Outstanding Securities of any series; provided, however, that if
the payment within a reasonable time to the Trustee of the costs, expenses or
liabilities likely to be incurred by it in the making of such investigation is
not, in the opinion of the Trustee, reasonably assured to the Trustee by the
security afforded to it by the terms of this Indenture, the Trustee may require
reasonable indemnity against such costs, expenses or liabilities as a condition
to so proceeding; the reasonable expense of every such investigation shall be
paid by the Company or, if paid by the Trustee, shall be repaid by the Company
upon demand;

 

(g) the
Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and the Trustee
shall not be responsible for any misconduct or negligence on the part of any
agent or attorney appointed with due care by it hereunder; and

 

34

 

(h) the
Trustee shall not be required to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.

 

Section 6.04                                Not Responsible
for Recitals or Issuance of Securities. The recitals herein and in the
Securities, except the Trustee’s certificates of authentication, shall be taken
as the statements of the Company, and neither the Trustee nor any
Authenticating Agent assumes any responsibility for their correctness. The
Trustee makes no representations as to the validity or sufficiency of this
Indenture or of the Securities, except that the Trustee represents that it is
duly authorized to execute and deliver this Indenture, authenticate the
Securities and perform its obligations hereunder, and that the statements made
by it or to be made by it in a Statement of Eligibility and Qualification on Form T-1
supplied to the Company are true and accurate. Neither the Trustee nor any
Authenticating Agent shall be accountable for the use or application by the
Company of Securities or the proceeds thereof.

 

Section 6.05                                May Hold
Securities. The Trustee, any Authenticating Agent, any Paying Agent, any
Security Registrar or any other agent of the Company, in its individual or any
other capacity, may become the owner or pledgee of Securities and, subject to
Sections 6.08 and 6.13, may otherwise deal with the Company with the same
rights it would have if it were not Trustee, Authenticating Agent, Paying
Agent, Security Registrar or such other agent.

 

Section 6.06                                Money Held in
Trust. Money held by the Trustee in trust hereunder (including amounts held by
the Trustee as Paying Agent) need not be segregated from other funds except to
the extent required by law. The Trustee shall be under no liability for
interest on any money received by it hereunder except as otherwise agreed upon
in writing with the Company.

 

Section 6.07                                Compensation and
Reimbursement.  The Company agrees:

 

(1) to pay to the Trustee from
time to time reasonable compensation as negotiated between the Company and the
Trustee for all services rendered by it hereunder (which compensation shall not
be limited by any provision of law in regard to the compensation of a trustee
of an express trust);

 

(2) except as otherwise expressly
provided herein, to reimburse the Trustee upon its request for all reasonable
expenses, disbursements and advances incurred or made by the Trustee in
accordance with any provision of this Indenture (including the reasonable
compensation and the expenses and disbursements of its agents and counsel),
except any such expense, disbursement or advance as may be attributable to its
negligence or bad faith; and

 

(3) to indemnify the Trustee for,
and to hold it harmless against, any loss, liability, damage, claim or expense,
including taxes (other than taxes based upon or determined or measured by the
income of the Trustee), incurred without negligence or bad faith on its part,
arising out of or in connection with the acceptance or administration of the
trust or trusts hereunder, including the costs and expenses of defending itself
against any claim or liability in connection with the exercise or performance
of any of its powers or duties hereunder.

 

When
the Trustee incurs expenses or renders services in connection with an Event of
Default specified in Section 5.01(6) or Section 5.01(7), the
expenses (including the reasonable charges and expenses of its counsel) and the
compensation for the services are intended to constitute expenses of
administration under any applicable Bankruptcy Law.

 

The
provisions of this Section 6.07 shall survive this Indenture and the
resignation or removal of the Trustee.

 

Section 6.08                                Disqualification;
Conflicting Interests. The Trustee shall be disqualified only where such
disqualification is required by Section 310(b) of the Trust Indenture
Act. Nothing shall prevent the Trustee from filing with the Commission the
application referred to in the second to last paragraph of Section 310(b) of
the Trust Indenture Act.

 

Section 6.09                                Corporate
Trustee Required; Eligibility. There shall at all times be a Trustee hereunder
which shall be eligible to act as Trustee under Section 310(a)(1) of
the Trust Indenture Act having a combined capital and surplus (together with
its parent) of at least $100,000,000 and subject to supervision or examination
by federal or State authority. If such corporation publishes reports of
condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published. Neither the Company nor any Person directly or
indirectly controlling, controlled by, or under common 

 

35

 

control with the Company may serve as Trustee. If at any time the
Trustee shall cease to be eligible in accordance with the provisions of this
Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.

 

Section 6.10                                Resignation and
Removal; Appointment of Successor.

 

(a) No
resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of
appointment by the successor Trustee in accordance with the applicable
requirements of Section 6.11.

 

(b) The
Trustee may resign at any time with respect to the Securities of one or more
series by giving written notice thereof to the Company. If the instrument of acceptance
by a successor Trustee required by Section 6.11 shall not have been
delivered to the Trustee within 30 days after the giving of such notice of
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the
Securities of such series.

 

(c) The
Trustee may be removed at any time with respect to the Securities of any series
by Act of the Holders of a majority in principal amount of the Outstanding
Securities of such series, delivered to the Trustee and to the Company.

 

(d) If
at any time:

 

(i) the
Trustee shall fail to comply with Section 310(b) of the Trust
Indenture Act after written request therefor by the Company or by any Holder
who has been a bona fide Holder of a Security for at least six months; or

 

(ii) the
Trustee shall cease to be eligible under Section 6.09 and shall fail to
resign after written request therefor by the Company or by any such Holder of a
Security who has been a bona fide Holder of a Security for at least six months;
or

 

(iii) the
Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent or a receiver of the Trustee or of its property shall be appointed or
any public officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation;

 

then,
in any such case, (i) the Company by a Board Resolution may remove the
Trustee with respect to all Securities, or (ii) subject to Section 315(e) of
the Trust Indenture Act, any Holder who has been a bona fide Holder of a
Security for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee with respect to all Securities and the appointment of a
successor Trustee or Trustees.

 

(e) If
the Trustee shall resign, be removed or become incapable of acting, or if a
vacancy shall occur in the office of Trustee for any cause, with respect to the
Securities of one or more series, the Company, by a Board Resolution, shall
promptly appoint a successor Trustee or Trustees with respect to the Securities
of that or those series (it being understood that any such successor Trustee
may be appointed with respect to the Securities of one or more or all of such
series and that at any time there shall be only one Trustee with respect to the
Securities of any particular series) and shall comply with the applicable
requirements of Section 6.11. If, within one year after such resignation,
removal or incapability, or the occurrence of such vacancy, a successor Trustee
with respect to the Securities of any series shall be appointed by Act of the
Holders of a majority in principal amount of the Outstanding Securities of such
series delivered to the Company and the retiring Trustee, the successor Trustee
so appointed shall, forthwith upon its acceptance of such appointment in
accordance with the applicable requirements of Section 6.11, become the
successor Trustee with respect to the Securities of such series and to that
extent supersede the successor Trustee appointed by the Company with respect to
such Securities. If no successor Trustee with respect to the Securities of any
series shall have been so appointed by the Company or the Holders and accepted
appointment in the manner required by Section 6.11, any Holder who has
been a bona fide Holder of a Security of such series for at least six months
may, on behalf of himself and all others similarly situated, petition any court
of competent jurisdiction for the appointment of a successor Trustee with
respect to the Securities of such series.

 

(f) The
Company shall give notice of each resignation and each removal of the Trustee
with respect to the Securities of any series and each appointment of a
successor Trustee with respect to the Securities of any series by mailing
written notice of such event by first-class mail, postage prepaid, to all
Holders of Securities of such series as 

 

36

 

their names and addresses
appear in the Security Register. Each notice shall include the name of the
successor Trustee with respect to the Securities of such series and the address
of its Corporate Trust Office.

 

Section 6.11                                Acceptance of
Appointment by Successor.

 

(a) In
case of the appointment hereunder of a successor Trustee with respect to all
Securities, every such successor Trustee so appointed shall execute,
acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on the request
of the Company or the successor Trustee, such retiring Trustee shall, upon
payment of its charges, execute and deliver an instrument transferring to such
successor Trustee all the rights, powers and trusts of the retiring Trustee and
shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder.

 

(b) In
case of the appointment hereunder of a successor Trustee with respect to the
Securities of some (but not all) series, the Company, the retiring Trustee and
each successor Trustee with respect to the Securities of such series shall
execute and deliver an indenture supplemental hereto wherein each successor
Trustee shall accept such appointment and which (1) shall contain such
provisions as shall be necessary or desirable to transfer and confirm to, and
to vest in, each successor Trustee all the rights, powers, trusts and duties of
the retiring Trustee with respect to the Securities of that or those series to
which the appointment of such successor Trustee relates, (2) if the
retiring Trustee is not retiring with respect to all Securities, shall contain
such provisions as shall be deemed necessary or desirable to confirm that all
the rights, powers, trusts and duties of the retiring Trustee with respect to
the Securities of that or those series as to which the retiring Trustee is not
retiring shall continue to be vested in the retiring Trustee, and (3) shall
add to or change any of the provisions of this Indenture as shall be necessary
to provide for or facilitate the administration of the trusts hereunder by more
than one Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Trustees co-trustees of the same
trust and that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee; and upon the execution and delivery of such
supplemental indenture the resignation or removal of the retiring Trustee shall
become effective to the extent provided therein and each such successor
Trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor Trustee relates; but, on request of the Company or any successor
Trustee, such retiring Trustee shall duly assign, transfer and deliver to such
successor Trustee all property and money held by such retiring Trustee
hereunder with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates.

 

(c) Upon
request of any such successor Trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such
successor Trustee all such rights, powers and trusts referred to in paragraph (a) or
(b) of this Section, as the case may be.

 

(d) No
successor Trustee shall accept its appointment unless at the time of such
acceptance such successor Trustee shall be qualified and eligible under the
Trust Indenture Act.

 

Section 6.12                                Merger,
Conversion, Consolidation or Succession to Business. Any corporation into which
the Trustee may be merged or converted or with which it may be consolidated, or
any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or
substantially all the corporate trust business of the Trustee, shall be the
successor of the Trustee hereunder, provided such corporation shall be
otherwise qualified and eligible under this Article, without the execution or
filing of any paper or any further act on the part of any of the parties
hereto. In case any Securities shall have been authenticated, but not
delivered, by the Trustee then in office, any successor (by merger, conversion,
consolidation or otherwise as permitted hereunder) to such authenticating
Trustee may adopt such authentication and deliver the Securities so
authenticated with the same effect as if such successor Trustee had itself
authenticated such Securities.

 

Section 6.13                                Preferential
Collection of Claims Against Company. The Trustee shall comply with Section 311(a) of
the Trust Indenture Act, excluding any creditor relationship listed in Section 311(b) of
the Trust Indenture Act. A Trustee who has resigned or been removed shall be
subject to Section 311(a) of the Trust Indenture Act to the extent
indicated therein.

 

Section 6.14                                Appointment of
Authenticating Agent. At any time when any of the Securities remain Outstanding
the Trustee may appoint an Authenticating Agent or Agents with respect to one
or more series of Securities which shall be authorized to act on behalf of, and
subject to the direction of, the Trustee to authenticate Securities of such
series issued upon exchange, registration of transfer or partial redemption
thereof or pursuant to 

 

37

 

Section 3.06, and Securities so authenticated shall be entitled to
the benefits of this Indenture and shall be valid and obligatory for all
purposes as if authenticated by the Trustee hereunder. Wherever reference is
made in this Indenture to the authentication and delivery of Securities by the
Trustee or the Trustee’s certificate of authentication, such reference shall be
deemed to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a corporation organized and
doing business under the laws of the United States of America, any State
thereof or the District of Columbia, authorized under such laws to act as
Authenticating Agent, having a combined capital and surplus (together with its
parent) of not less than $100,000,000 and subject to supervision or examination
by federal or State authority. If such Authenticating Agent publishes reports
of condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such Authenticating Agent shall be deemed to be
its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time an Authenticating Agent shall cease to
be eligible in accordance with the provisions of this Section, such
Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section.

 

Any
corporation into which an Authenticating Agent may be merged or converted or
with which it may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which such Authenticating Agent shall be
a party, or any corporation succeeding to the corporate agency or corporate
trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible
under this Section, without the execution or filing of any paper or any further
act on the part of the Trustee or the Authenticating Agent.

 

An
Authenticating Agent may resign at any time by giving written notice thereof to
the Trustee and to the Company. The Trustee may at any time terminate the
agency of an Authenticating Agent by giving written notice thereof to such
Authenticating Agent and to the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall mail written notice of
such appointment by first-class mail, postage prepaid, to all Holders of
Securities of the series with respect to which such Authenticating Agent will
serve, as their names and addresses appear in the Security Register. Any
successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent.
No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.

 

The
Company agrees to pay to each Authenticating Agent from time to time reasonable
compensation as negotiated between the Company and such Authenticating Agent
for its services under this Section.

 

If
an appointment with respect to one or more series is made pursuant to this
Section, the Securities of such series may have endorsed thereon, in addition
to the Trustee’s certificate of authentication, an alternate certificate of
authentication in the following form:

 

Form of Authenticating Agent’s

Certificate of Authentication

 

 

	
  Dated:

  	
   

  	
   

  

 

This is one of the Securities of the series
designated therein referred to in the within-mentioned Indenture.

 

 

	
   

  	
   

  
	
   

  	
  As Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  As
  Authenticating Agent

  

 

38

 

	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

Section 6.15                                Compliance with
Tax Laws. The Trustee hereby agrees to comply with all U.S. Federal income tax
information reporting and withholding requirements applicable to it with
respect to payments of premium (if any) and interest on the Securities of any
series, whether acting as Trustee, Security Registrar, Paying Agent or
otherwise with respect to the Securities of any series.

 

ARTICLE
7

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

 

Section 7.01                                Company to
Furnish Trustee Names and Addresses of Holders. The Company will furnish or
cause to be furnished to the Trustee:

 

(a) semi-annually,
not later than 15 days after the Regular Record Date for each series of
Securities, a list, in such form as the Trustee may reasonably require, of the
names and addresses of the Holders of Securities as of such Regular Record Date
(unless the Trustee has such information), or if there is no Regular Record
Date for interest for such series of Securities, semi-annually, upon such dates
as are set forth in the Board Resolution or indenture supplemental hereto
authorizing such series, and

 

(b) at
such other times as the Trustee may request in writing, within 30 days after
the receipt by the Company of any such request, a list of similar form and
content as of a date not more than 15 days prior to the time such list is
furnished;

 

provided,
however, that so long as the Trustee is the Security Registrar, no such list
shall be required to be furnished.

 

Section 7.02                                Preservation of
Information; Communications to Holders.

 

(a) The
Trustee shall preserve, in as current a form as is reasonably practicable, the
names and addresses of Holders contained in the most recent list furnished to
the Trustee as provided in Section 7.01 and the names and addresses of
Holders received by the Trustee in its capacity as Security Registrar. The
Trustee may destroy any list furnished to it as provided in Section 7.01
upon receipt of a new list so furnished.

 

(b) If
three or more Holders (herein referred to as “APPLICANTS”) apply in writing to
the Trustee, and furnish to the Trustee reasonable proof that each such
applicant has owned a Security for a period of at least six months preceding
the date of such application, and such application states that the applicants
desire to communicate with other Holders with respect to their rights under
this Indenture or under the Securities and is accompanied by a copy of the form
of proxy or other communication which such applicants propose to transmit, then
the Trustee shall, within five Business Days after the receipt of such
application, at its election, either:

 

(i) afford
such applicants access to the information preserved at the time by the Trustee
in accordance with Section 7.02(a); or

 

(ii) inform
such applicants as to the approximate number of Holders whose names and
addresses appear in the information preserved at the time by the Trustee in
accordance with Section 7.02(a), and as to the approximate cost of mailing
to such Holders the form of proxy or other communication, if any, specified in
such application.

 

If
the Trustee shall elect not to afford such applicants access to such
information, the Trustee shall, upon the written request of such applicants,
mail to each Holder whose name and address appears in the information preserved
at the time by the Trustee in accordance with Section 7.02(a) a copy
of the form of proxy or other communication which is specified in such request,
with reasonable promptness after a tender to the Trustee of the material to be
mailed and of payment, or provision for the payment, of the reasonable expenses
of mailing, unless within five days after such tender the Trustee shall mail to
such applicants and file with the Commission, together with a copy of the material
to be 

 

39

 

mailed, a written statement to the effect that, in the opinion of the
Trustee, such mailing would be contrary to the best interests of the Holders or
would be in violation of applicable law. Such written statement shall specify
the basis of such opinion. If the Commission, after opportunity for a hearing
upon the objections specified in the written statement so filed, shall enter an
order refusing to sustain any of such objections or if, after the entry of an
order sustaining one or more of such objections, the Commission shall find,
after notice and opportunity for hearing, that all objections so sustained have
been met and shall enter an order so declaring, the Trustee shall mail copies of
such material to all such Holders with reasonable promptness after the entry of
such order and the renewal of such tender; otherwise the Trustee shall be
relieved of any obligation or duty to such applicants respecting their
application.

 

(c) Every
Holder of Securities, by receiving and holding the same, agrees with the
Company and the Trustee that neither the Company nor the Trustee nor any agent
of either of them shall be held accountable by reason of the disclosure of any
such information as to the names and addresses of the Holders in accordance
with Section 7.02(b), regardless of the source from which such information
was derived, and that the Trustee shall not be held accountable by reason of
mailing any material pursuant to a request made under Section 7.02(b).

 

Section 7.03                                Reports by
Trustee.

 

(a) Within
60 days after
             of
each year commencing with the year 20    , the Trustee
shall transmit by mail to all Holders of Securities as provided in Section 313(c) of
the Trust Indenture Act, a brief report dated as of
            , if
required by and in compliance with Section 313(a) of the Trust
Indenture Act. The Trustee shall also comply with Section 313(b) of
the Trust Indenture Act.

 

(b) A
copy of each such report shall, at the time of such transmission to Holders, be
filed by the Trustee with each stock exchange or inter-dealer quotation system
upon which any Securities are listed, with the Commission and with the Company.
The Company will notify the Trustee when any Securities are listed on any stock
exchange or inter-dealer quotation system.

 

Section 7.04                                Reports by
Company.  The Company shall:

 

(1) file with the Trustee, within
15 days after the Company is required to file the same with the Commission,
copies of the annual reports and of the information, documents and other
reports (or copies of such portions of any of the foregoing as the Commission
may from time to time by rules and regulations prescribe) which the
Company may be required to file with the Commission pursuant to Section 13
or Section 15(d) of the Exchange Act; or, if the Company is not
required to file information, documents or reports pursuant to either of said
Sections, then it shall file with the Trustee and the Commission, in accordance
with rules and regulations prescribed from time to time by the Commission,
such of the supplementary and periodic information, documents and reports which
may be required pursuant to Section 13 of the Exchange Act in respect of a
security listed and registered on a national securities exchange as may be
prescribed from time to time in such rules and regulations;

 

(2) file with the Trustee and the
Commission, in accordance with rules and regulations prescribed from time
to time by the Commission, such additional information, documents and reports
with respect to compliance by the Company with the conditions and covenants of
this Indenture as may be required from time to time by such rules and
regulations;

 

(3) transmit or cause to be
transmitted by mail to all Holders, as their names and addresses appear in the
Security Register, (a) as promptly as reasonably practicable following the
furnishing of the same to its stockholders, the Company’s annual report to
stockholders, containing certified financial statements, and any other
financial reports which the Company generally furnishes to its stockholders,
and (b) within 30 days after the filing thereof with the Trustee, such
summaries of any other information, documents and reports required to be filed
by the Company pursuant to paragraphs (1) and (2) of this Section as
may be required by rules and regulations prescribed from time to time by
the Commission; and

 

(4) furnish to the Trustee, within
90 days after the end of each fiscal year of the Company (which fiscal year
currently ends on the last Friday in the month of December of each
calendar year), a brief certificate from the principal executive officer,
principal financial officer or principal accounting officer as to his or her
knowledge of the Company’s compliance with all conditions and covenants under
this Indenture. For purposes of this paragraph, such compliance shall be
determined without regard to any period of grace or requirement of notice
provided under this Indenture. Such certificate need not comply with Section 1.02.

 

40

 

ARTICLE
8

CONSOLIDATION, MERGER, LEASE, SALE OR TRANSFER

 

Section 8.01                                When Company May Merge,
Etc. Except as may be otherwise provided as contemplated by Section 3.01
relating to Securities of a series, the Company shall not consolidate with, or
merge with or into, any other Person (whether or not the Company shall be the
surviving corporation or entity), or convey, transfer or lease all or
substantially all of its properties and assets as an entirety or substantially
as an entirety to any Person or group of affiliated Persons, in one transaction
or a series of related transactions, unless:

 

(1) either the Company shall be
the continuing Person or the Person (if other than the Company) formed by such
consolidation or with which or into which the Company is merged or the Person
(or group of affiliated Persons) to which all or substantially all the
properties and assets of the Company as an entirety or substantially as an
entirety are conveyed, transferred or leased shall be a corporation or other
entity (group of affiliated corporations or entities) organized and existing
under the laws of the United States of America or any State thereof or the
District of Columbia and shall expressly assume, by an indenture supplemental
hereto, executed and delivered to the Trustee, in form reasonably satisfactory
to the Trustee, all the obligations of the Company under the Securities and
this Indenture; and

 

(2) immediately after giving
effect to such transaction or series of related transactions, no Event of
Default, and no Default, shall have occurred and be continuing.

 

Notwithstanding
the foregoing, the Company may (a) consolidate with, or merge with or
into, an Affiliate incorporated for the purpose incorporating the Company in another
jurisdiction and/or (b) convey, transfer or lease all or substantially all
of its properties and assets as an entirety or substantially as an entirety to
any Subsidiary or Subsidiaries, in one transaction or a series of related
transactions.

 

Section 8.02                                Opinion of
Counsel. The Company shall deliver to the Trustee prior to the proposed
transaction(s) covered by Section 8.01 an Officers’ Certificate and
an Opinion of Counsel stating that the transaction(s) and such
supplemental indenture comply with this Indenture and that all conditions
precedent to the consummation of the transaction(s) under this Indenture
have been met.

 

Section 8.03                                Successor
Corporation Substituted. Upon any consolidation by the Company with or merger
by the Company into any other corporation or other entity or any conveyance,
transfer or lease all or substantially all of the property and assets of the
Company in accordance with Section 8.01, the successor corporation or
other entity formed by such consolidation or into which the Company is merged
or the successor corporation or entity or affiliated group of corporations or
entities to which such lease, sale, assignment or transfer is made shall
succeed to, and be substituted for, and may exercise every right and power of,
the Company under this Indenture with the same effect as if such successor
corporation or corporations or entity or entities had been named as the Company
herein, and thereafter, except in the case of a lease, the predecessor
corporation or corporations or entity or entities shall be relieved of all
obligations and covenants under this Indenture and the Securities and in the
event of such conveyance or transfer, except in the case of a lease, any such
predecessor corporation may be dissolved and liquidated.

 

ARTICLE
9

SUPPLEMENTAL INDENTURES

 

Section 9.01                                Supplemental
Indentures Without Consent of Holders. Without notice to or the consent of any
Holders, the Company, when authorized by a Board Resolution, and the Trustee,
at any time and from time to time, may enter into one or more indentures
supplemental hereto, in form reasonably satisfactory to the Trustee, for any of
the following purposes:

 

(1) to evidence the succession of
another corporation to the Company and the assumption by any such successor of
the covenants of the Company herein and in the Securities; or

 

(2) to add to the covenants of the
Company for the benefit of the Holders of all or any series of Securities (and
if such covenants are to be for the benefit of less than all series of
Securities, stating that such covenants are expressly being included solely for
the benefit of such series) or to surrender any right or power herein conferred
upon the Company; or

 

41

 

(3) to add any additional Events
of Default with respect to all or any series of Securities; or

 

(4) to add or change any of the
provisions of this Indenture to such extent as shall be necessary to permit or
facilitate the issuance of Securities in bearer form, registrable or not
registrable as to principal, and with or without interest coupons; or

 

(5) to change or eliminate any of
the provisions of this Indenture, provided that any such change or elimination
shall become effective only when there is no Security Outstanding of any series
created prior to the execution of such supplemental indenture which is entitled
to the benefit of such provision; or

 

(6) to secure the Securities; or

 

(7) to establish the form or terms
of Securities of any series as permitted by Sections 2.01 and 3.01; or

 

(8) to evidence and provide for
the acceptance of appointment hereunder by a successor Trustee with respect to
the Securities of one or more series and to add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee, pursuant
to the requirements of Section 6.11(b); or

 

(9) to cure any ambiguity, defect
or inconsistency or to correct or supplement any provision herein which may be
inconsistent with any other provision herein; or

 

(10) to make any change that does
not materially adversely affect the interests of the Holders of Securities of
any series then Outstanding; or

 

(11) to add Guarantees or Guarantors
with respect to all or any series of the Securities; or

 

(12) to provide for uncertificated
Securities in addition to or in place of certificated Securities (provided that
the uncertificated Securities are issued in registered form for purposes of Section 163(f) of
the Internal Revenue Code or in a manner such that the uncertificated
Securities are described in Section 163(f)(2)(B) of such Code).

 

Upon
request of the Company, accompanied by a Board Resolution authorizing the
execution of any such supplemental indenture, and upon receipt by the Trustee
of the documents described in (and subject to the last sentence of) Section 9.03,
the Trustee shall join with the Company in the execution of any supplemental
indenture authorized or permitted by the terms of this Indenture.

 

Section 9.02                                Supplemental
Indentures with Consent of Holders. With the written consent of the Holders of
a majority in aggregate principal amount of the Outstanding Securities of each
series affected by such supplemental indenture (with the Securities of each
series voting as a class), by Act of said Holders delivered to the Company and
the Trustee, the Company, when authorized by a Board Resolution, and the
Trustee shall, subject to Section 9.03, enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture
or of modifying in any manner the rights of the Holders of Securities of such
series under this Indenture; provided, however, that no such supplemental indenture
shall, without the consent of the Holder of each Outstanding Security affected
thereby,

 

(1) change the Stated Maturity of
the principal of, or premium, if any, or any installment of principal of or
premium, if any, or interest on, any Security, or reduce the principal amount
thereof or the rate of interest thereon or any premium payable upon the
optional redemption or Stated Maturity thereof, or change the manner in which
the amount of any principal thereof or premium, if any, or interest thereon is determined,
or reduce the amount of the principal of any Original Issue Discount Security
that would be due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 5.02, or change any Place of Payment
where, or the coin or currency or currency unit in which, any Security or any
premium or interest thereon is payable, or impair the right to institute suit
for the enforcement of any such payment on or after the Stated Maturity thereof
(or, in the case of redemption, on or after the Redemption Date);

 

(2) reduce the percentage in
principal amount of the Outstanding Securities of any series, the consent of
whose Holders is required for any such supplemental indenture, or the consent
of whose Holders is required 

 

42

 

for
any waiver of compliance with certain provisions of this Indenture or Defaults
or Events of Default hereunder and their consequences provided for in this
Indenture; or

 

(3) modify any of the provisions
of this Section, Section 5.13 or Section 10.06, except to increase
any such percentage or to provide that certain other provisions of this
Indenture cannot be modified or waived without the consent of the Holder of
each Outstanding Security affected thereby; provided, however, that this clause
shall not be deemed to require the consent of any Holder with respect to
changes in the references to “the Trustee” and concomitant changes in this Section and
Section 10.06, or the deletion of this proviso, in accordance with the
requirements of Sections 6.11(b) and 9.01(8).

 

A
supplemental indenture which changes or eliminates any covenant or other
provisions of this Indenture which has expressly been included solely for the
benefit of one or more particular series of Securities, or which modifies the
rights of the Holders of Securities of such series with respect to such
covenant or other provision, shall be deemed not to affect the rights under
this Indenture of the Holders of Securities of any other series.

 

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

 

Section 9.03                                Execution of
Supplemental Indentures. The Trustee shall sign any supplemental indenture
authorized pursuant to this Article, subject to the last sentence of this Section 9.03.
In executing, or accepting the additional trusts created by, any supplemental
indenture permitted by this Article or the modifications thereby of the
trusts created by this Indenture, the Trustee shall be entitled to receive, and
(subject to Section 6.01) shall be fully protected in relying upon, an
Officers’ Certificate and an Opinion of Counsel stating that the execution of
such supplemental indenture is authorized or permitted by this Indenture. The
Trustee may, but shall not be obligated to, enter into any such supplemental
indenture which affects the Trustee’s own rights, duties or immunities under
this Indenture or otherwise.

 

Section 9.04                                Effect of
Supplemental Indentures. Upon the execution of any supplemental indenture under
this Article, this Indenture shall be modified in accordance therewith, and
such supplemental indenture shall form a part of this Indenture for all purposes;
and every Holder of Securities theretofore or thereafter authenticated and
delivered hereunder shall be bound thereby.

 

Section 9.05                                Conformity with
Trust Indenture Act. Every supplemental indenture executed pursuant to this Article shall
conform to the requirements of the Trust Indenture Act as then in effect.

 

Section 9.06                                Reference in
Securities to Supplemental Indentures. Securities of any series authenticated
and delivered after the execution of any supplemental indenture pursuant to
this Article may, and shall if required by the Trustee, bear a notation in
form approved by the Trustee as to any matter provided for in such supplemental
indenture. If the Company shall so determine, new Securities of any series so
modified as to conform, in the opinion of the Trustee and the Company, to any
such supplemental indenture may be prepared and executed by the Company and
authenticated and delivered by the Trustee in exchange for Outstanding
Securities of such series.

 

Section 9.07                                Subordination
Unimpaired. This Indenture may not be amended to alter the subordination of any
of the Outstanding Securities without the written consent of the requisite
holders of Senior Debt then outstanding that would be adversely affected
thereby.

 

ARTICLE
10

 

COVENANTS

 

Section 10.01                          Payments of
Securities. With respect to each series of Securities, the Company will duly
and punctually pay the principal of (and premium, if any) and interest on such
Securities in accordance with their terms and this Indenture, and will duly comply
with all the other terms, agreements and conditions contained in, or made in
the Indenture for the benefit of, the Securities of such series.

 

Section 10.02                          Maintenance of
Office or Agency. The Company will maintain an office or agency in each Place of
Payment where Securities may be surrendered for registration of transfer or
exchange or for presentation for payment, where notices and demands to or upon
the Company in respect of the Securities and this Indenture may be served. The
Company will give prompt written notice to the Trustee of the location, and any
change in location, of such office or agency. If at any time the Company shall
fail to maintain any such required office or agency or shall fail to 

 

43

 

furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the address of the
Trustee as set forth in Section 1.05 hereof.

 

The
Company may also from time to time designate one or more other offices or
agencies where the Securities may be presented or surrendered for any or all
such purposes and may from time to time rescind such designations. 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.

 

Section 10.03                          Compliance
Certificates.

 

(a) The
Company shall deliver to the Trustee within 90 days after the end of each
fiscal year of the Company (which fiscal year currently ends on the last Friday
in the month of December of each calendar year), an Officers’ Certificate
stating whether or not the signer knows of any Default or Event of Default by
the Company that occurred prior to the end of the fiscal year and is then
continuing. If the signer does know of such a Default or Event of Default, the
certificate shall describe each such Default or Event of Default and its status
and the specific section or sections of this Indenture in connection with which
such Default or Event of Default has occurred. The Company shall also promptly
notify the Trustee in writing should the Company’s fiscal year be changed so
that the end thereof is on any date other than the date on which the Company’s
fiscal year currently ends. The certificate need not comply with Section 1.02
hereof, but shall comply with Section 314(a)(4) of the Trust
Indenture Act.

 

(b) The
Company shall deliver to the Trustee, within 10 days after the occurrence
thereof, notice of any acceleration which with the giving of notice and the
lapse of time would be an Event of Default within the meaning of Section 5.01(5) hereof.

 

(c) The
Company shall deliver to the Trustee forthwith upon becoming aware of a Default
or Event of Default (but in no event later than 10 days after the occurrence of
each Default or Event of Default that is continuing), an Officers’ Certificate
setting forth the details of such Default or Event of Default and the action
that the Company proposes to take with respect thereto and the specific section
or sections of this Indenture in connection with which such Default or Event of
Default has occurred.

 

Section 10.04                          Waiver of Stay,
Extension or Usury Laws. The Company covenants (to the extent that it may
lawfully do so) that it will not at any time insist upon, or plead, or in any
manner whatsoever claim, and will actively resist any and all efforts to be
compelled to take the benefit or advantage of, any stay or extension law or any
usury law or other law, which would prohibit or forgive the Company from paying
all or any portion of the principal of and/or interest on the Securities as
contemplated herein, wherever enacted, now or at any time hereafter in force,
or which may affect the covenants or the performance of this Indenture; and (to
the extent that it may lawfully do so) the Company hereby expressly waives all
benefit or advantage of any such law, and covenants that it will not hinder,
delay or impede the execution of any power herein granted to the Trustee, but
will suffer and permit the execution of every such power as though no such law
had been enacted.

 

Section 10.05                          Money for
Securities Payments to Be Held in Trust. If the Company shall at any time act
as its own Paying Agent with respect to any series of Securities, it will, on
or before each due date of the principal of (and premium, if any) or interest
on any of the Securities of that series, segregate and hold in trust for the
benefit of the Persons entitled thereto a sum sufficient to pay the principal
(and premium, if any) or interest so becoming due until such sums shall be paid
to such Persons or otherwise disposed of as herein provided and will promptly
notify the Trustee of its action or failure so to act.

 

Whenever
the Company shall have one or more Paying Agents for any series of Securities, it
will, on or prior to each due date of the principal of (and premium, if any) or
interest on any Securities of that series, deposit with a Paying Agent a sum
sufficient to pay the principal (and premium, if any) or interest so becoming
due, such sum to be held in trust for the benefit of the Persons entitled to
such principal, premium or interest, and (unless such Paying Agent is the
Trustee) the Company will promptly notify the Trustee of its action or failure
to so act.

 

The
Company will cause each Paying Agent for any series of Securities (other than
the Trustee) to execute and deliver to the Trustee an instrument in which such
Paying Agent shall agree with the Trustee, subject to the provisions of this
Section, that such Paying Agent will:

 

(1) hold all sums held by it for
the payment of the principal of (and premium, if any) or interest on Securities
of that series in trust for the benefit of the Persons entitled thereto until
such sums shall be paid to such Persons or otherwise disposed of as herein provided;

 

44

 

(2) give the Trustee notice of any
default by the Company (or any other obligor upon the Securities of that
series) in the making of any payment of principal (and premium, if any) or
interest on the Securities of that series; and

 

(3) at any time during the
continuance of any such default, upon the written request of the Trustee,
forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

 

The
Company may at any time, for the purpose of obtaining the satisfaction and
discharge of this Indenture or for any other purpose, pay, or by Company Order
direct any Paying Agent to pay, to the Trustee all sums held in trust by the
Company or such Paying Agent, such sums to be held by the Trustee upon the same
trusts as those upon which such sums were held by the Company or such Paying
Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying
Agent shall be released from all further liability with respect to such money.

 

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 (and premium, if any) or
interest on any Security of any series and remaining unclaimed for one year
after such principal (and premium, if any) or interest has become due and
payable shall, subject to any applicable escheat laws, be paid to the Company
on Company Request, or (if then held by the Company) shall be discharged from
such trust; and the Holder of such Security shall thereafter, as an unsecured
general creditor, 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, shall thereupon cease;
provided, however, that the Trustee of such Paying Agent, before being required
to make any such repayment, may at the expense of the Company cause to be
published once, in a newspaper published in the English language, customarily
published on each Business Day and of general circulation in New York, New
York, notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such
publication, any unclaimed balance of such money then remaining will be repaid
to the Company.

 

Section 10.06                          Waiver of
Certain Covenants. The Company may omit in any particular instance to comply
with any term, provision or condition set forth in Article 8, Article 10
(other than Sections      or     ) or
any covenant specified as contemplated under Section 3.01 with respect to
the Securities of any series if before the time for such compliance the Holders
of not less than a majority in principal amount of the Outstanding Securities
of such series shall, by Act of such Holders, either waive such compliance in
such instance or generally waive compliance with such term, provision or
condition, but no such waiver shall extend to or affect such term, provision or
condition except to the extent so expressly waived, and, until such waiver
shall become effective, the obligations of the Company and the duties of the
Trustee in respect of any such term, provision or condition shall remain in
full force and effect.

 

ARTICLE
11

REDEMPTION OF SECURITIES

 

Section 11.01                          Applicability of
Article. Securities of any series which are redeemable before their Stated
Maturity shall be redeemable in accordance with their terms and (except as
otherwise specified as contemplated by Section 3.01 for Securities of any
series) in accordance with this Article.

 

Section 11.02                          Election to
Redeem; Notice to Trustee. The election of the Company to redeem any Securities
shall be evidenced by a Board Resolution. In case of any redemption at the
election of the Company of less than all the Securities of any series, the
Company shall, at least 30 and not more than 60 days prior to the Redemption
Date fixed by the Company (unless a shorter notice shall be reasonably
satisfactory to the Trustee), notify the Trustee of such Redemption Date and of
the principal amount of Securities of such series to be redeemed. In the case
of any redemption of Securities prior to the expiration of any restriction on
such redemption provided in the terms of such Securities or elsewhere in this
Indenture, the Company shall furnish the Trustee with an Officers’ Certificate
evidencing compliance with such restriction.

 

Section 11.03                          Selection by
Trustee of Securities to Be Redeemed. If less than all the Securities of any
series are to be redeemed, the particular Securities to be redeemed shall be
selected prior to the giving of the applicable notice of redemption to Holders
by the Trustee, from the Outstanding Securities of such series not previously
called for redemption, substantially pro rata, by lot or by any other method as
the Trustee considers fair and appropriate and that complies with the
requirements of the principal national securities exchange, if any, on which
such Securities are listed, and which may provide for the selection for
redemption of portions (equal to the minimum authorized denomination for
Securities of that series or any integral multiple thereof) of the principal
amount of Securities of such series of a denomination larger than the minimum
authorized denomination for Securities of that series; provided that in case
the 

 

45

 

Securities of such series have different terms and maturities, the
Securities to be redeemed shall be selected by the Company and the Company
shall give notice thereof to the Trustee.

 

The
Trustee shall promptly notify the Company in writing of the Securities selected
for redemption and, in the case of any Securities selected for partial
redemption, the principal amount thereof to be redeemed.

 

For
all purposes of this Indenture, unless the context otherwise requires, all
provisions relating to the redemption of the Securities shall relate, in the
case of any Securities redeemed or to be redeemed only in part, to the portion
of the principal amount of such Securities which has been or is to be redeemed.

 

Section 11.04                          Notice of
Redemption. Notice of redemption shall be given by first-class mail, postage
prepaid, mailed not less than 30 nor more than 45 days prior to the Redemption
Date, to each Holder of Securities to be redeemed, at his address appearing in
the Security Register.

 

All
notices of redemption shall state:

 

(1) the Redemption Date;

 

(2) the Redemption Price;

 

(3) if less than all the
Outstanding Securities of any series are to be redeemed, the identification
(and, in the case of partial redemption, the principal amounts) of the particular
Securities to be redeemed;

 

(4) that on the Redemption Date
the Redemption Price will become due and payable upon each such Security to be
redeemed and, if applicable, that interest thereon will cease to accrue on and
after said date;

 

(5) the place or places where such
Securities are to be surrendered for payment of the Redemption Price;

 

(6) that the redemption is for a
sinking fund, if such is the case; and

 

(7) the CUSIP number, if any, of
the Securities to be redeemed.

 

Notice
of redemption of Securities to be redeemed at the election of the Company shall
be given by the Company or, at the Company’s request, by the Trustee in the
name and at the expense of the Company.

 

Section 11.05                          Deposit of
Redemption Price. On or prior to any Redemption Date, the Company shall deposit
with the Trustee or with a Paying Agent (or, if the Company is acting as its
own Paying Agent, segregate and hold in trust as provided in Section 10.05)
an amount of money sufficient to pay the Redemption Price of, and (except if
the Redemption Date shall be an Interest Payment Date) accrued interest on, all
the Securities which are to be redeemed on that date.

 

Unless
any Security by its terms prohibits any sinking fund payment obligation from
being satisfied by delivering and crediting Securities (including Securities
redeemed otherwise than through a sinking fund), the Company may deliver such
Securities to the Trustee for crediting against such payment obligation in
accordance with the terms of such Securities and this Indenture.

 

Section 11.06                          Securities
Payable on Redemption Date. Notice of redemption having been given as
aforesaid, the Securities so to be redeemed shall, on the Redemption Date,
become due and payable at the Redemption Price therein specified, and from and
after such date (unless the Company shall default in the payment of the
Redemption Price and accrued interest) such Securities shall cease to bear
interest. Upon surrender of any such Security for redemption in accordance with
said notice, such Security shall be paid by the Company at the Redemption
Price, together with accrued interest to the Redemption Date; provided,
however, that installments of interest whose Stated Maturity is on or prior to
the Redemption Date shall be payable to the Holders of such Securities, or one
or more Predecessor Securities, registered as such at the close of business on
the relevant Regular or Special Record Dates according to their terms and the
provisions of Section 3.07.

 

If
any Security called for redemption shall not be so paid upon surrender thereof
for redemption, the principal (and premium, if any) shall, until paid, bear
interest from the Redemption Date at the rate prescribed therefor in the
Security.

 

46

 

Section 11.07                          Securities
Redeemed in Part. Any Security which is to be redeemed only in part shall be
surrendered at an office or agency of the Company at a Place of Payment
therefor (with, if the Company or the Trustee so requires, due endorsement by,
or a written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or his attorney duly authorized in
writing), and the Company shall execute, and the Trustee shall authenticate and
deliver to the Holder of such Security without service charge, a new Security
or Securities of the same series and Stated Maturity, of any authorized
denomination as requested by such Holder, in aggregate principal amount equal
to and in exchange for the unredeemed portion of the principal of the Security
so surrendered.

 

ARTICLE
12

SINKING FUNDS

 

Section 12.01                          Applicability of
Article. The provisions of this Article shall be applicable to any sinking
fund for the retirement of Securities of a series, except as otherwise
specified as contemplated by Section 3.01 for Securities of such series.

 

The
minimum amount of any sinking fund payment provided for by the terms of
Securities of any series is herein referred to as a “MANDATORY SINKING FUND
PAYMENT,” and any payment in excess of such minimum amount provided for by the
terms of Securities of any series is herein referred to as an “OPTIONAL SINKING
FUND PAYMENT.” If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to reduction as provided
in Section 12.02. Each sinking fund payment shall be applied to the
redemption of Securities of any series as provided for by the terms of
Securities of such series.

 

Section 12.02                          Satisfaction of
Sinking Fund Payments with Securities. The Company (1) may deliver
Securities of a series (other than any Securities previously called for
redemption) and (2) may apply as a credit Securities of a series which
have been redeemed either at the election of the Company pursuant to the terms
of such Securities or through the application of permitted optional sinking
fund payments pursuant to the terms of such Securities, in each case in
satisfaction of all or any part of any sinking fund payment with respect to the
Securities of such series required to be made pursuant to the terms of such
Securities as provided for by the terms of such series; provided that such
Securities have not been previously so credited. Such Securities shall be
received and credited for such purpose by the Trustee at the Redemption Price
specified in such Securities for redemption through operation of the sinking
fund and the amount of such sinking fund payment shall be reduced accordingly.

 

Section 12.03                          Redemption of
Securities for Sinking Fund. Not less than 45 days (or such shorter period
reasonably acceptable to the Trustee) prior to each sinking fund payment date
for any series of Securities, the Company will deliver to the Trustee an
Officers’ Certificate specifying the amount of the next ensuing sinking fund
payment for that series pursuant to the terms of that series, the portion
thereof, if any, which is to be satisfied by payment of cash and the portion
thereof, if any, which is to be satisfied by delivering and crediting
Securities of that series pursuant to Section 12.02 and will also deliver
to the Trustee any Securities to be so delivered (which have not been
previously delivered). Not less than 30 days before each such sinking fund
payment date the Trustee shall select the Securities to be redeemed upon such
sinking fund payment date in the manner specified in Section 11.03 and
cause notice of the redemption thereof to be given in the name of and at the
expense of the Company in the manner provided in Section 11.04. Such
notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Sections 11.06 and 11.07.

 

ARTICLE
13

DEFEASANCE AND COVENANT DEFEASANCE

 

Section 13.01                          Applicability of
Article; Company’s Option to Effect Defeasance or Covenant Defeasance. Unless
as otherwise specified as contemplated by Section 3.01 for Securities of
such series, provision is made for the inapplicability of, in whole or in part,
or any modification to, either or both of (a) defeasance of the Securities
of a series under Section 13.02 or (b) covenant defeasance of the
Securities of a series under Section 13.03, then the provisions of such Section or
Sections, as the case may be, together with the other provisions of this
Article, shall be applicable to the Securities of such series and the Company
may at its option by Board Resolution, at any time, with respect to the
Securities of such series elect to have either Section 13.02 (unless
inapplicable) or Section 13.03 (unless inapplicable) be applied to the
Outstanding Securities of such series upon compliance with the applicable
conditions set forth below in this Article.

 

47

 

Section 13.02                          Defeasance and
Discharge. Upon the Company’s exercise of the option provided in Section 13.01
to defease the Outstanding Securities of a particular series, the Company shall
be discharged from its obligations with respect to the Outstanding Securities
of such series on the date the applicable conditions set forth in Section 13.04
are satisfied (hereinafter, “DEFEASANCE”). Defeasance shall mean that the
Company shall be deemed to have paid and discharged the entire indebtedness
represented by the Outstanding Securities of such series and to have satisfied
all its other obligations under such Securities and this Indenture insofar as
such Securities are concerned (and the Trustee, at the expense of the Company,
shall execute proper instruments acknowledging the same); provided, however,
that the following rights, obligations, powers, trusts, duties and immunities
shall survive until otherwise terminated or discharged hereunder: (A) the
rights of Holders of Outstanding Securities of such series to receive, solely
from the trust fund provided for in Section 13.04, payments in respect of
the principal of (and premium, if any) and interest on such Securities when
such payments are due, (B) the Company’s obligations with respect to such
Securities under Sections 3.04, 3.05, 3.06, 10.02 and 10.05, (C) the
rights, powers, trusts, duties and immunities of the Trustee hereunder and (D) this
Article. Subject to compliance with this Article, the Company may exercise its
option with respect to defeasance under this Section 13.02 notwithstanding
the prior exercise of its option with respect to covenant defeasance under Section 13.03
in regard to the Securities of such series.

 

Section 13.03                          Covenant
Defeasance. Upon the Company’s exercise of the option provided in Section 13.01
to obtain a covenant defeasance with respect to the Outstanding Securities of a
particular series, the Company shall be released from its obligations under
this Indenture and any applicable supplemental indenture (except its
obligations under Sections 3.04, 3.05, 3.06, 5.06, 5.09, 6.10, 10.01, 10.02,
10.03, 10.04 and 10.05) with respect to the Outstanding Securities of such
series on and after the date the applicable conditions set forth in Section 13.04
are satisfied (hereinafter, “COVENANT DEFEASANCE”). Covenant defeasance shall
mean that, with respect to the Outstanding Securities of such series, the Company
may omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in this Indenture and any applicable
supplemental indenture (except its obligations under Sections 3.04, 3.05, 3.06,
5.06, 5.09, 6.10, 10.01, 10.02, 10.03, 10.04 and 10.05), whether directly or
indirectly by reason of any reference elsewhere herein or by reason of any
reference to any other provision herein or in any other document, and such
omission to comply shall not constitute an Event of Default under Section 5.01(4) or
any such supplemental indenture with respect to Outstanding Securities of such
series, and the remainder of this Indenture and of the Securities of such
series shall be unaffected thereby.

 

Section 13.04                          Conditions to
Defeasance or Covenant Defeasance. The following shall be the conditions to
defeasance under Section 13.02 and covenant defeasance under Section 13.03
with respect to the Outstanding Securities of a particular series:

 

(1) The Company shall irrevocably
have deposited or caused to be deposited with the Trustee (or another trustee
satisfying the requirements of Section 6.09 who shall agree to comply with
the provisions of this Article applicable to it), under the terms of an
irrevocable trust agreement in form and substance reasonably satisfactory to
such Trustee, as trust funds in trust for the purpose of making the following
payments, specifically pledged as security for, and dedicated solely to, the
benefit of the Holders of such Securities, (A) money in an amount, or (B) U.S.
Government Obligations which through the scheduled payment of principal and
interest in respect thereof in accordance with their terms will provide, not
later than the due date of any payment, money in an amount, or (C) a
combination thereof, in each case sufficient, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge, and which
shall be applied by the Trustee (or other qualifying trustee) to pay and
discharge, (i) the principal of (and premium, if any, on) and each
installment of principal of (and premium, if any) and interest on the
Outstanding Securities of such series on the Stated Maturity of such principal
or installment of principal or interest and (ii) any mandatory sinking
fund payments or analogous payments applicable to the Outstanding Securities of
such series on the day on which such payments are due and payable in accordance
with the terms of this Indenture and of such Securities.

 

(2) No Default or Event of Default
with respect to the Securities of such series shall have occurred and be
continuing on the date of such deposit or shall occur as a result of such
deposit.

 

(3) Such deposit, defeasance or
covenant defeasance shall not result in a breach or violation of, or constitute
a default under, any other material debt agreement or instrument to which the
Company is a party or by which it is bound.

 

(4) In the case of an election
with respect to Section 13.02, the Company shall have delivered to the
Trustee either (a) a ruling directed to the Trustee received from the
Internal Revenue Service to the effect that the Holders of the Outstanding
Securities of such series will not recognize income, gain or loss for federal
income tax purposes as a result of such 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 defeasance had not occurred or (B) an
Opinion of 

 

48

 

Counsel,
based on such ruling or on a change in the applicable federal income tax law
since the date of this Indenture, in either case to the effect that, and based
thereon such opinion shall confirm that, the Holders of the Outstanding
Securities of such series will not recognize income, gain or loss for federal
income tax purposes as a result of such 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 defeasance had not occurred.

 

(5) the case of an election with
respect to Section 13.03, the Company shall have delivered to the Trustee
an Opinion of Counsel or a ruling directed to the Trustee received from the
Internal Revenue Service to the effect that the Holders of the Outstanding
Securities of such series 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.

 

(6) Such defeasance or covenant
defeasance shall be effected in compliance with any additional terms,
conditions or limitations which may be imposed on the Company in connection
therewith pursuant to Section 3.01.

 

(7) The Company shall have
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel,
each stating that all conditions precedent provided for relating to either the
defeasance under Section 13.02 or the covenant defeasance under Section 13.03
(as the case may be) have been complied with.

 

Section 13.05                          Deposited Money
and Government Obligations To Be Held in Trust. Subject to the provisions of
the last paragraph of Section 10.05, all money and Government Obligations
(including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee, collectively for purposes of this Section 13.05, the “Trustee”)
pursuant to Section 13.04 in respect of the Outstanding Securities of a
particular series shall be held in trust and applied by the Trustee, in
accordance with the provisions of such Securities 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 Holders of
such Securities of all sums due and to become due thereon in respect of
principal (and premium, if any) and interest, but such money need not be
segregated from other funds except to the extent required by law.

 

The
Company shall pay and indemnify the Trustee against any tax, fee or other
charge imposed on or assessed against the U.S. Government Obligations deposited
pursuant to Section 13.04 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 Securities of such series.

 

Anything
in this Article to the contrary notwithstanding, the Trustee shall deliver
or pay to the Company from time to time upon Company Request any money or
Government Obligations held by it as provided in Section 13.04 with
respect to Securities of any series which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, are in excess of the amount
thereof which would then be required to be deposited for the purpose for which
such money or Government Obligations were deposited.

 

Section 13.06                          Reinstatement.
If the Trustee or the Paying Agent is unable to apply any money or U.S.
Government Obligations, as the case may be, in accordance with this Article with
respect to any Securities by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, then the obligations under this Indenture and such Securities from
which the Company has been discharged or released pursuant to Section 13.02
or 13.03 shall be revived and reinstated as though no deposit had occurred
pursuant to this Article with respect to such Securities, until such time
as the Trustee or Paying Agent is permitted to apply all money or U.S.
Government Obligations, as the case may be, held in trust pursuant to Section 13.05
with respect to such Securities in accordance with this Article; provided,
however, that if the Company makes any payment of principal of or any premium
or interest on any such Security following such reinstatement of its
obligations, the Company shall be subrogated to the rights (if any) of the
Holders of such Securities to receive such payment from the money or U.S.
Government Obligations, as the case may be, so held in trust.

 

49

 

ARTICLE
14

SUBORDINATION

 

Section 14.01                          Subordination.  The Company covenants and agrees, and each
Holder of a Security issued hereunder by his acceptance of a Security likewise
covenants and agrees (except as otherwise provided or contemplated by Section 3.01),
that all Securities shall be issued subject to the provisions of this Article Fourteen;
and each Person holding any Security, whether upon original issue or upon
transfer, assignment or exchange thereof accepts and agrees to be bound by such
provisions.

 

The
payment by the Company of the principal of, premium, if any and interest on all
Securities issued hereunder shall, to the extent and in the manner hereinafter
set forth, be subordinated and junior in right of payment to all Senior Debt,
whether outstanding at the date of this Indenture or thereafter incurred.

 

No
provision of this Article Fourteen shall prevent the occurrence of any
Event of Default hereunder or any event which with the giving of notice or the
passage of time or both would constitute an Event of Default.

 

Section 14.02                          Priority of
Senior Debt.  In the event and during the
continuation of any default by the Company in the payment of principal,
premium, interest or any other payment due on any Senior Debt, or in the event
that the maturity of any Senior Debt has been accelerated because of a default,
then, in either case, no payment shall be made by the Company with respect to
the principal (including redemption payments) of or premium, if any, or
interest on the Securities until such default shall have been cured or waived
in writing or shall have ceased to exist or such Senior Debt shall have been
discharged or paid in full.

 

In
the event of the acceleration of the maturity of the Securities, then no
payment shall be made by the Company with respect to the principal (including
redemption payments) of or premium, if any, or interest on the Securities until
the holders of all Senior Debt outstanding at the time of such acceleration
shall receive payment in full of such Senior Debt (including any amounts due
upon acceleration).

 

In
the event that, notwithstanding the foregoing, any payment shall be received by
the Trustee or any Holder when such payment is prohibited by the preceding
paragraphs of this Section 14.02, such payment shall be held in trust for
the benefit of, and shall be paid over or delivered to, the holders of Senior
Debt or their respective representatives, or to the trustee or trustees under
any indenture pursuant to which any of such Senior Debt may have been issued,
as their respective interests may appear.

 

Section 14.03                          Payments upon
Bankruptcy.  Upon any payment by the
Company or distribution of assets of the Company of any kind or character,
whether in cash property or securities, to creditors upon any liquidation,
dissolution, winding up, receivership, reorganization, assignment for the
benefit of creditors, marshaling of assets and liabilities or any bankruptcy,
insolvency or similar proceedings of the Company, all amounts due or to become
due upon all Senior Debt shall first be paid in full, in cash or cash
equivalents, or payment thereof provided for in accordance with its terms,
before any payment is made on account of the principal of, premium, if any, or
interest on the indebtedness evidenced by the Securities, and upon any such
liquidation, dissolution, winding up, receivership, reorganization, assignment,
marshaling or proceeding, any payment or distribution of assets of the Company
of any kind or character, whether in cash, property or securities, to which the
Holders or the Trustee under this Indenture would be entitled except for the
provisions of this Article Fourteen, shall be paid by the Company or by
any receiver, trustee in bankruptcy, liquidating trustee, agent or other Person
making such payment or distribution, directly to the holders of Senior Debt
(pro rata to such holders on the basis of the respective amounts of Senior Debt
held by such holders) or their respective representatives, or to the trustee or
trustees under any indenture pursuant to which any instruments evidencing any
of such Senior Debt may have been issued, as their respective interests may
appear, to the extent necessary to pay all Senior Debt in full (including,
without limitation, except to the extent, if any, prohibited by mandatory
provisions of law, post-petition interest, in any such proceedings), after
giving effect to any concurrent payment or distribution to or for the holders
of Senior Debt, before any payment or distribution is made to the Holders of
the indebtedness evidenced by the Securities or to the Trustee under this
Indenture.

 

In
the event that, notwithstanding the foregoing, any payment or distribution of
assets of the Company of any kind or character, whether in cash, property or
securities, prohibited by the foregoing, shall be received by the Trustee under
this Indenture or the Holders of the Securities before all Senior Debt is paid
in full or provision is made for such payment in accordance with its terms,
such payment or distribution shall be held in trust for the benefit of and
shall be paid over or delivered to the holders of such Senior Debt or their
respective representatives, or to the trustee or trustees under any indenture
pursuant to which any instruments evidencing any of such Senior Debt may have
been issued, as 

 

50

 

their respective interests may appear, for application to the payment of
all Senior Debt remaining unpaid until all such Senior Debt shall have been
paid in full in accordance with its terms, after giving effect to any
concurrent payment or distribution to or for the holders of such Senior Debt.

 

For
purposes of this Article Fourteen, the words “cash, property or securities”
shall not be deemed to include shares of stock of the Company as reorganized or
readjusted, or securities of the Company or any other corporation provided for
by a plan of arrangement, reorganization or readjustment, the payment of which
is subordinated (at least to the extent provided in this Article Fourteen
with respect to the Securities) to the payment of all Senior Debt which may at
the time be outstanding; provided, that (i) the Senior Debt is assumed by
the new corporation, if any, resulting from any such arrangement,
reorganization or readjustment, and (ii) the rights of the holders of the
Senior Debt are not, without the consent of such holders, altered by such
arrangement, reorganization or readjustment. The consolidation of the Company
with, or the merger of the Company into, another corporation or the liquidation
or dissolution of the Company following the conveyance or transfer of its
property as an entirety, or substantially as an entirety, to another
corporation upon the terms and conditions provided in Article Eight shall
not be deemed a dissolution, winding-up, liquidation or reorganization for the
purposes of this Section if such other Person shall, as a part of such
consolidation, merger, conveyance or transfer, comply with the conditions
stated in Article Eight. Nothing in Section 14.02 or this Section 14.03
shall apply to claims of, or payments to, the Trustee under or pursuant to Article Six.
This Section shall be subject to the further provisions of Section 14.06.

 

Section 14.04                          Subrogation;
Rights not Impaired.  Subject to the
payment in full of all Senior Debt, the rights of the Holders of the Securities
shall be subrogated to the rights of the holders of Senior Debt to receive
payments or distributions of cash, property or securities of the Company
applicable to the Senior Debt until the principal of, premium, if any, and
interest on the Securities shall be paid in full; and, for the purposes of such
subrogation, no payments or distributions to the holders of the Senior Debt of
any cash, property or securities to which the Holders of the Securities or the
Trustee on their behalf would be entitled except for the provisions of this Article Fourteen
and no payment over pursuant to the provisions of this Article Fourteen to
the holders of Senior Debt by Holders of the Securities or the Trustee on their
behalf shall, as between the Company, its creditors other than holders of
Senior Debt and the Holders of the Securities, be deemed to be a payment by the
Company to or on account of the Senior Debt; and no payments or distributions
of cash, property or securities to or for the benefit of the Holders pursuant
to the subrogation provisions of this Article, which would otherwise have been
paid to the holders of Senior Debt shall be deemed to be a payment by the
Company to or for the account of the Securities. It is understood that the
provisions of this Article Fourteen are and are intended solely for the
purpose of defining the relative rights of the Holders of the Securities, on
the one hand, and the holders of the Senior Debt, on the other hand.

 

Nothing
contained in this Article Fourteen or elsewhere in this Indenture or in
the Securities is intended to or shall impair, as between the Company, its
creditors other than the holders of Senior Debt, and the Holders of the
Securities, the obligation of the Company, which is absolute and unconditional,
to pay to the Holders of the Securities the principal, premium, if any, and
interest on the Securities as and when the same shall become due and payable in
accordance with their terms, or is intended to or shall affect the relative
rights of the Holders of the Securities and creditors of the Company other than
the holders of the Senior Debt, nor shall anything herein or therein prevent
the Holder of any Security or the Trustee on his or her behalf from exercising
all remedies otherwise permitted by applicable law upon default under this
Indenture, subject to the rights, if any, under this Article Fourteen of
the holders of Senior Debt in respect of cash, property or securities of the
Company received upon the exercise of any such remedy.

 

Upon
any payment or distribution of assets of the Company referred to in this Article Fourteen,
the Trustee, subject to the provisions of Article Six, and the Holders of
the Securities shall be entitled to rely upon any order or decree made by any
court of competent jurisdiction in which such liquidation, dissolution, winding
up, receivership, reorganization, assignment or marshaling proceedings are
pending, or a certificate of the receiver, trustee in bankruptcy, liquidating
trustee, agent or other person making such payment or distribution, delivered
to the Trustee or to the Holders of the Securities, for the purpose of
ascertaining the persons entitled to participate in such distribution, the
holders of the Senior Debt and other indebtedness of the Company, the amount
thereof or payable thereon, the amount or amounts paid or distributed thereon
and all other facts pertinent thereto or to this Article Fourteen.

 

Section 14.05                          Authorization of
Trustee.  Each Holder of a Security by
his or her acceptance thereof authorizes and directs the Trustee in his or her
behalf to take such action as may be necessary or appropriate to effectuate the
subordination provided in this Article Fourteen and appoints the Trustee
his or her attorney-in-fact for any and all such purposes.

 

Section 14.06                          Notice of the
Trustee.  The Company shall give prompt
written notice to the Trustee and to any Paying Agent of any fact known to the
Company which would prohibit the making of any payment of moneys to or 

 

51

 

by the Trustee or any Paying Agent in respect of the Securities pursuant
to the provisions of this Article Fourteen. Regardless of anything to the
contrary contained in this Article Fourteen or elsewhere in this
Indenture, the Trustee shall not be charged with knowledge of the existence of
any Senior Debt or of any default or event of default with respect to any
Senior Debt or of any other facts which would prohibit the making of any
payment of moneys to or by the Trustee, unless and until a Responsible Officer
of the Trustee shall have received notice in writing at its principal Corporate
Trust Office to that effect signed by an officer of the Company, or by a holder
or agent of a holder of Senior Debt who shall have been certified by the
Company or otherwise established to the reasonable satisfaction of the Trustee
to be such holder or agent, or by the trustee under any indenture pursuant to
which Senior Debt shall be outstanding, and, prior to the receipt of any such
written notice, the Trustee shall, subject to the provisions of Article Six,
be entitled to assume that no such facts exist; provided, however, that if on a
date at least three Business Days prior to the date upon which by the terms
hereof any such moneys shall become payable for any purpose (including, without
limitation, the payment of the principal of, or interest on any Security) the
Trustee shall not have received with respect to such moneys the notice provided
for in this Section 14.06, then, regardless of anything herein to the
contrary, the Trustee shall have full power and authority to receive such
moneys and to apply the same to the purpose for which they were received, and
shall not be affected by any notice to the contrary which may be received by it
on or after such prior date.

 

The
Trustee shall be entitled to conclusively rely on the delivery to it of a
written notice by a Person representing himself to be a holder of Senior Debt
(or a trustee or agent on behalf of such holder) to establish that such notice
has been given by a holder of Senior Debt or a trustee or agent on behalf of
any such holder. In the event that the Trustee determines in good faith that
further evidence is required with respect to the right of any Person as a
holder of Senior Debt to participate in any payment or distribution pursuant to
this Article Fourteen, the Trustee may request such Person to furnish
evidence to the reasonable satisfaction of the Trustee as to the amount of
Senior Debt held by such Person, the extent to which such Person is entitled to
participate in such payment or distribution and any other facts pertinent to
the rights of such Person under this Article Fourteen, and if such
evidence is not furnished the Trustee may defer any payment to such Person
pending judicial determination as to the right of such Person to receive such
payment.

 

Section 14.07                          Holders of
Senior Debt; Trustee’s Obligations.  The
Trustee and any agent of the Company or the Trustee shall be entitled to all
the rights set forth in this Article Fourteen with respect to any Senior
Debt which may at any time be held by it in its individual or any other
capacity to the same extent as any other holder of Senior Debt and nothing in
this Indenture shall deprive the Trustee or any such agent, of any of its rights
as such holder. Nothing in this Article Fourteen shall apply to claims of,
or payments to, the Trustee under or pursuant to Article Six.

 

With
respect to the holders of Senior Debt, the Trustee undertakes to perform or to
observe only such of its covenants and obligations as are specifically set
forth in this Article Fourteen, and no implied covenants or obligations
with respect to the holders of Senior Debt shall be read into this Indenture
against the Trustee. The Trustee shall not be deemed to owe any fiduciary duty
to the holders of Senior Debt and, subject to the provisions of Article Six,
the Trustee shall not be liable to any holder of Senior Debt if it shall pay
over or deliver to holders of Securities, the Company or any other Person
moneys or assets to which any holder of Senior Debt shall be entitled by virtue
of this Article Fourteen or otherwise.

 

Section 14.08                          Actions by
Holders of Senior Debt.  No right of any
present or future holder of any Senior Debt to enforce subordination as herein
provided shall at any time in any way be prejudiced or impaired by any act or
failure to act on the part of the Company or by any act or failure to act, in
good faith, by any such holder, or by any noncompliance by the Company with the
terms, provisions and covenants of this Indenture, regardless of any knowledge
thereof which any such holder may have or otherwise be charged with.

 

Without
in any way limiting the generality of the foregoing paragraph, the holders of
Senior Debt may, at any time and from time to time, without the consent of or
notice to the Trustee or the Holders, without incurring responsibility to the
Holders and without impairing or releasing the subordination provided in this Article Fourteen
or the obligations hereunder of the Holders of the Securities to the holders of
such Senior Debt, do any one or more of the following: (i) change the
manner, place or terms of payment or extend the time of payment of, or renew or
alter, such Senior Debt, or otherwise amend or supplement in any manner such
Senior Debt or any instrument evidencing the same or any agreement under which
such Senior Debt is outstanding; (ii) sell, exchange, release or otherwise
deal with any property pledged, mortgaged or otherwise securing such Senior
Debt; (iii) release any Person liable in any manner for the collection of
such Senior Debt; and (iv) exercise or refrain from exercising any rights
against the Company, as the case may be, and any other Person.

 

Section 14.09                          Paying
Agent.  In case at any time any paying
agent other than the Trustee shall have been appointed by the Company and be
then acting hereunder, the term “Trustee” as used in this Article Fourteen
shall in 

 

52

 

such case (unless the context otherwise requires) be construed as
extending to and including such paying agent within its meaning as fully for
all intents and purposes as if such paying agent were named in this Article Fourteen
in addition to or in place of the Trustee; provided that Sections 14.06 and
14.07 shall not apply to the Company if acting as a Paying Agent.

 

Section 14.10                          Monies Held in
Trust.  Notwithstanding anything
contained herein to the contrary, payments from money or the proceeds of U.S.
Government Obligations held in trust under Sections 4.01 or 13.04 of this
Indenture by the Trustee for the payment of principal of, premium, if any, and
interest on the Securities shall not be subordinated to the prior payment of
any Senior Debt or subject to the restrictions set forth in this Article Fourteen,
and none of the Holders shall be obligated to pay over any such amount to the
Company or any holder of Senior Debt or any other creditor of the Company.

 

ARTICLE
15

 

GUARANTEES

 

Section 15.01                          Guarantee. Any
series of Securities may be guaranteed by one or more of the Guarantors. The
terms and the form of any such Guarantee will be established in the manner
contemplated by Section 3.01 for that particular series of Securities.

 

53

 

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

 

	
   

  	
  INTERLINE BRANDS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

54

 

	
   

  	
  [GUARANTOR]

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

55opticon10k63009x10g3_9292009.htm

Exhibit 10.G.03

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into by and between Opticon Systems Inc., a Nevada corporation, (the “Company”), and Sam Talari (“Employee”) effective on August
1, 2009 (“Start Date").

RECITAL

The Company desires to employ Employee, and Employee is willing to accept employment by the Company, in each case on the terms and subject to the conditions set forth in this Agreement.  NOW, THEREFORE, the parties hereto hereby agree as follows:

 

AGREEMENT

1.           Position and Duties.

1.1           During the term of this Agreement, Employee agrees to be employed by and to serve the Company on a full-time basis as Acting Chief Executive Officer to perform such duties consistent with such position as may be assigned to him from time to time by the Board of Directors.
Employee’s principal place of business with respect to his services to the Company shall be St. Petersburg, Florida, provided that employee agrees to undertake such travel as may be required in the performance of his duties.  All travel expenses of Employee shall be reimbursed in accordance with Section 3.3 (c) below.

1.2           Employee shall carry out his duties under the general supervision and direction of the Board of Directors of the Company in accordance with the Company’s policies, rules and procedures in force from time to time.

1.3           Employee shall devote his full time, attention, skill and efforts to his tasks and duties hereunder and to the affairs of the Company.  Without the prior written consent of the Company, Employee shall not provide services for compensation to any other person
or business entity during the Term of his employment by the Company, as defined in paragraph 2.1, or engage in any other business activity, whether or not such other business activity is pursued for profit or pecuniary advantage unless approved by the Board of Directors.

  

Exhibit 10.G.03 Page 1

  

2.           Term of Employment.

2.1    Basic Term.  The term of employment under this Agreement (the “Term”) shall begin on Start Date and shall continue through three (3) calendar years after the Start Date (the “Expiration Date”), unless earlier terminated
in accordance with Article 2 or extended pursuant to the following sentence.  Unless written notice is given by the Company or Employee to the other at least ninety (90) days prior to the Expiration Date (or any later date to which the Term shall have been extended in accordance with this Section 2.1) advising that the one giving such notice does not desire to extend or does desire to further extend this Agreement, the Term shall automatically be extended for an additional one-year period without further
action of either the Company or Employee.

2.2           Termination for Cause.  Termination for Cause (as defined in Section 2.8(a) below) may be effected by the Company at any time during the Term of this Agreement and shall be effected by written notification
to Employee from the Board of Directors, stating the reason for termination.  Such termination shall be effective immediately upon the giving of such notice, unless the Board of Directors shall otherwise determine.  Upon Termination for Cause, Employee shall be paid all accrued salary, any benefits under any plans of the Company in which Employee is a participant to the full extent of Employee’s rights under such plans, accrued vacation pay and any appropriate business expenses incurred
by Employee in connection with his duties hereunder prior to such termination, all to the date of termination, but Employee shall not be entitled to any other compensation or reimbursement of any kind, including without limitation, severance compensation.

2.3           Voluntary Termination.  In the event of a Voluntary Termination (as defined in Section 2.8(c) below), the Company shall pay to Employee all accrued salary, bonus compensation to the extent earned, any benefits
under any plans of the Company in which Employee is a participant to the full extent of Employee’s rights under such plans, accrued vacation pay and any appropriate business expenses incurred by Employee in connection with his duties hereunder, all to the date of termination, but no other compensation or reimbursement of any kind, including without limitation, severance compensation. Employee may affect a Voluntary Termination by giving sixty (60) days’ written notice of such termination to the Company.

  

Exhibit 10.G.03 Page 2

  

2.4           Termination by Death.  In the event of Employee’s death during the Term of this Agreement, Employee’s employment shall be deemed to have terminated as of the last day of the month during which
his death occurs and the Company shall pay to his estate or such beneficiaries, as Employee may from time to time designate all accrued salary, any benefits under any plans of the Company in which Employee is a participant to the full extent of Employee’s rights under such plans, accrued vacation pay and any appropriate business expenses incurred by Employee in connection with his duties hereunder, all to the date of termination, but Employee’s estate shall not be paid any other compensation or reimbursement
of any kind, including without limitation, severance compensation.

2.5           Termination by Reason of Disability.  If, during the Term of this Agreement, a physician selected by the Company certifies that Employee has become physically or mentally incapacitated or unable to perform
his full-time duties under this Agreement, and that such incapacity has continued for a period of five consecutive months or 180 calendar days within any period of 365 consecutive days, the Company shall have the right to terminate Employee’s employment hereunder by written notification to Employee, and such termination shall be effective on the seventh (7th) day following the giving of such notice (“Termination by Reason
of Disability”).  In such event, the Company will pay to Employee all accrued salary, any benefits under any plans of the Company in which Employee is a participant to the full extent of Employee’s rights under such plans, accrued vacation pay, any appropriate business expenses incurred by Employee in connection with his duties hereunder, all to the date of termination, and all severance compensation required under Section 4.1, but Employee shall not be paid any other compensation or reimbursement
of any kind.  In the event of a Termination by Reason of Disability, upon the termination of the disability, the Company will use its best efforts to reemploy Employee, provided that such reemployment need not be in the same capacity or at the same salary or benefits level as in effect prior to the Termination by Reason of Disability.

2.6           Employee’s Obligation Upon Termination. Upon the Termination of Employee’s employment for any reason, Employee shall within ten (10) days of such termination return to the Company all personal property
and proprietary information in Employee’s possession belonging to the Company.  Unless and until all such property and information is returned to the Company (which shall be determined by the Company's standard termination and check-out procedures), the Company shall have no obligation to make any payment of any kind to Employee hereunder.

  

Exhibit 10.G.03 Page 3

  

2.7           Definitions.  For purposes of this Agreement the following terms shall have the following meanings:

a)      “Termination for Cause” shall mean termination by the Company of Employee’s employment by the Company by reason of:

(i)   Employee’s willful dishonesty towards, fraud upon, or deliberate injury or attempted injury to, or breach of fiduciary duty to, the Company;

(ii)     Employee’s material breach of this Agreement, including any Exhibit hereto, or any other agreement to which Employee and the Company are parties;

(iii)    Employee’s use or possession of illegal drugs at any time, use of alcoholic beverages during working hours or on Company property except when specifically allowed by a company sponsored function, improper use of prescription drugs during working hours or on Company property or Employee reporting to work
under the influence of illegal drugs or alcohol;

(iv)     Conduct by Employee, whether or not in connection with the performance of the duties contemplated hereunder, that would result in serious prejudice to the interests of the Company if Employee were to continue to be employed, including, without limitation, the conviction of a felony or a good faith determination
by the Board of Directors that Employee has committed acts involving moral turpitude; or it will always be an interpretation so I believe it is not necessary

(v)     Any material violation of any rule, regulation or policy of the Company by Employee or Employee’s failure to follow reasonable instructions or directions of the Board of Directors of the Company(as it relates to the Employee’s written job description) or any policy, rule or procedure of the Company
in force from time to time.  All Company policies, rules, regulations and procedures currently in force must be provided to Employee in writing before execution of this Agreement.  Any changes to Company policies, rules and procedures must be provided to Employee in writing thirty (30) days prior to the changes becoming effective.

  

Exhibit 10.G.03 Page 4

  

b)     “Voluntary Termination” shall mean termination by Employee of Employee’s employment other than (i) Termination by Reason of Disability and (ii) Termination by reason of Employee’s Death.

	
  
	
3.
	
Salary and Benefits

	
  
	
3.1
	
Base Salary.  As payment for the services to be rendered by Employee as provided in Section 1 and subject to the terms and conditions of Section 2, the Company agrees to pay to Employee a “Base Salary at the rate of $15,000 (U S Dollars) per month payable in accordance with the Company’s regular payroll practices (twice monthly). Such rate
and Employee’s performance shall be reviewed by the Company’s Board of Directors on an annual basis, commencing Starting Date, for a determination of whether an adjustment in Employee’s Base Salary should be made, which adjustment shall be in sole discretion of the Company’s Board of Directors.

	
  
	
3.2
	
Additional Benefits.  During the Term of this Agreement, Employee shall be entitled to the following fringe benefits:

(a)           Employee Benefits.                                           Employee
shall be included in all group insurance plans and other benefit plans and programs made available to management employees of the Company.

(b)           Vacation                      Employee is entitled to take 4 weeks paid vacation within one year from
his Starting Date.

(c)           Reimbursement for Expenses.                                                      The
Company shall reimburse Employee for reasonable and properly documented out-of-pocket business and/or entertainment expenses incurred by Employee in connection with his duties under this Agreement in accordance with the Company’s reimbursement policy in effect from time to time. Company’s reimbursement policy currently in force must be provided to Employee in writing before execution of this Agreement.  Any changes to Company’s policy must be provided to Employee in writing thirty
(30) days prior to the changes becoming effective.

  

Exhibit 10.G.03 Page 5

  

	
  
	
4.
	
Severance Compensation.

	
  
	
4.1
	
Acceleration of Payments.  The Company may, in the Company’s sole discretion, if Employee so requests within thirty (30) days following a Termination by Reason of Disability, elect to pay to Employee a lump sum severance payment by bank cashier’s check equal to the present value of the flow of cash payments that would otherwise be paid
to Employee.

	
  
	
4.2
	
No Severance Compensation Under Other Termination.  In the event of a Voluntary Termination, Termination for Cause, or Termination by reason of   Employee’s Death, neither Employee nor his estate shall be paid any severance compensation.

5.           Other Agreements.  Employee acknowledges that the previously signed Employee Non-Disclosure Agreement and Proprietary Rights Assignment dated and a Non-Solicitation and Non-Competition Agreement dated August
1, 2008, are still in effect and become part of this agreement.  Employee hereby covenants and agrees to fully abide by each and every term of such agreements, and agrees and understands that a breach or violation by Employee of any provision of any provision of either of such agreements shall constitute grounds for Termination for Cause under Section 2.8(a)(ii) of this Agreement, and that no such termination shall limit or affect any other rights and remedies of the Company arising out of or in connection
with any such breach or violation.  The covenants on the part of Employee contained in such agreements shall survive termination of this Agreement, regardless of the reason for such termination, unless specifically excluded by this agreement.  Employee hereby represents and acknowledges that the Company is relying on the covenants contained in such agreements in entering into this Agreement, and that the terms and conditions of the covenants contained in such agreements are fair and reasonable.

      6.    Waiver.  The waiver of the breach of any provision of this Agreement shall not operate or be construed as
a waiver of any subsequent breach of the same or other provision hereof.

Entire Agreement; Modifications.  This Agreement represents the entire understanding among the parties with respect to the subject matter hereof, and this Agreement supersedes any and all prior understandings, agreements, plans
and negotiations, whether written or oral with respect to the subject matter hereof including without limitation, any understandings, agreements or obligations respecting any past or future compensation, bonuses, reimbursements or other payments to Employee from the Company.  All modifications to this Agreement must be in writing and signed by both parties hereto.

  

Exhibit 10.G.03 Page 6

  

Notices.  All notices and other communications under this Agreement shall be in writing and shall be given by first class mail, certified or registered with return receipt requested, and shall be deemed to have been duly given
three (3) days after mailing to the respective persons named below:

	
As to the Company:
	
As to Employee:

	  	  
	
OptiCon Systems Inc.
	
Sam Talari

	
499 Central Avenue, Suite 101
	
475 Central Avenue, Suite 100

	
St. Petersburg, Fl 33701
	
St. Petersburg, Fl 33701

If any part may change such party’s address for notices by notice duly given pursuant to this Section.

Headings.  The Section headings herein are intended for reference and shall not by themselves determine the construction or interpretation of this Agreement.

Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Florida.

Severability.  Should a court or other body of competent jurisdiction determines that any provision of this Agreement is invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, and all other
provisions of this Agreement shall be deemed valid and enforceable to the extent possible.

Benefits of Agreement.  The provisions of this Agreement shall be binding upon and inure to the benefit of the executors, administrators, heirs, successors and assigns of the parties; provided,
however, that except as herein expressly provided, this Agreement shall not be assignable either by the Company (except to an affiliate of the Company) or by Employee.

Counterparts.  This Agreement may be executed in one or more counterparts, all of which taken together shall constitute one and the same Agreement.

Withholdings.  All compensation and benefits to Employee hereunder shall be reduced by all federal, state, local and other withholdings and similar taxes and payments required by applicable law.

Remedies.  All rights and remedies of the Company hereunder shall be cumulative and the exercise of any right or remedy shall not preclude the exercise of another.

Interpretation Review.  Counsel in the negotiation and execution of this Agreement has represented both parties to this Agreement, and no inference shall be drawn against the drafting party.  Employee acknowledges
that he has in fact reviewed and discussed this Agreement with his counsel and that he understands and assents to the terms hereof.

  

Exhibit 10.G.03 Page 7

  

Arbitration.  Any controversy or claim arising out of or relating to this agreement, or breach thereof (other than any action by the Company seeking an injunction or equitable relief under the employee Non-Disclosure Agreement
and Proprietary Rights Assignment or the Non-Solicitation and Non-Competition Agreement executed by the Employee, as amended from time to time) shall be settled by binding arbitration to be held in Grapevine, Texas, in accordance with the Rules of the American Arbitration Association, and judgement upon any proper award rendered by the arbitrators may be entered in any court having jurisdiction thereof.

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

As to the Company

By:___/s/ Paul D. Lisenby__________

        Paul D. Lisenby – Director

By: __/s/ Cristino L. Perez__________

        Cristino L. Perez - Director

	  	
As to Employee:

	  	  
	  	  
	  	
/s/Sam Talari

	  	
Sam Talari

  

Exhibit 10.G.03 Page 8

  

 
A

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]