Document:

Exhibit 10.24

 

Execution Copy

 

	
  Kohlberg Kravis Roberts & Co.
  L.P.

  9 West 57th Street

  New York, New York 10019

  	
   

  	
  DLJ Merchant Banking III, Inc.

  Eleven Madison Avenue

  New York, New York 10010

  

 

October 4, 2004

 

Jostens Holding Corp. 

c/o Jostens, Inc.

5501 Norman Center Drive

 

Minneapolis, MN 55437

 

Ladies and Gentlemen:

 

This letter serves to confirm the retention
by Jostens Holding Corp. (the “Company”) of Kohlberg Kravis Roberts & Co.
L.P. (“KKR”) and DLJ Merchant Banking III, Inc. (“DLJMB,” and together with
KKR, the “Investors”) to provide management and advisory services to the
Company and its subsidiaries (collectively, “Jostens”), as follows:

 

1.     The
Company has retained us, and we hereby agree to accept such retention, to
provide to Jostens, when and if called upon, certain management and advisory
services of the type customarily performed by us.  The Company agrees to pay us an annual fee equal to three million
dollars ($3,000,000) (the “Annual Fee”), such fee to be increased at a rate of
3% annually, effective as of October 4 of each such year, payable (i) in
quarterly installments in advance at the beginning of each calendar quarter and
commencing on the date hereof (such first payment to be made pro rata based on
the number of days in the quarter remaining) and (ii) to each of us in
proportion to the economic interests represented by the shares of Class A
common stock, par value $0.01 per share, and Class C common stock, par value
$0.01 per share, of the Company (“Common Stock”) owned by affiliates of KKR, on
the one hand, and DLJMB and its affiliates, on the other hand, based on their
ownership on the first day of such quarter.

 

2.     In
consideration for our services rendered in connection with the transactions
contemplated by the Contribution Agreement, dated as of July 21, 2004, between
Fusion Acquisition LLC, a Delaware limited liability company, and the Company
(the “Contribution Agreement”) which such services included, but were not
limited to, financial advisory services and capital structure review, the
Company agrees to also pay, on the date hereof, a one-time transaction fee to
(i) KKR in the amount of eighteen million dollars ($18,000,000) and (ii) DLJMB
in the amount of seven million dollars ($7,000,000), reduced pro rata to the
extent that such transaction fees would cause the Total Transaction Expenses
(as defined in the Contribution Agreement) to exceed seventy-five million
dollars ($75,000,000).

 

3.     We
may also invoice the Company for additional fees in connection with acquisition
or divestiture transactions or in the event that we, or any of our respective
affiliates, perform services for Jostens above and beyond those called for by
this agreement.

 

 

4.     In
addition to any fees that may be payable to us under this agreement, the
Company also agrees to reimburse us and our respective affiliates, from time to
time upon request, for all reasonable out-of-pocket expenses incurred,
including unreimbursed expenses incurred to the date hereof, in connection with
this retention and/or the transactions contemplated by the Contribution
Agreement, including travel expenses and expenses of our respective counsel.

 

5.     The
Company agrees to indemnify and hold us, our respective affiliates (including,
without limitation, affiliated investment entities) and their and our
respective partners, executives, officers, directors, employees, agents and
controlling persons (each such person, including us, being an “Indemnified
Party”) harmless from and against (i) any and all losses, claims, damages and
liabilities (including, without limitation, losses, claims, damages and
liabilities arising from or in connection with legal actions brought by or on
behalf of the holders or future holders of the outstanding securities of
Jostens or creditors or future creditors of Jostens), joint, several or
otherwise, to which such Indemnified Party may become subject under any
applicable federal or state law, or otherwise, related to or arising out of any
activity contemplated by this agreement or our retention pursuant to, and our or
our affiliates’ performance of the services contemplated by, this agreement and
(ii) any and all losses, claims, damages and liabilities, joint, several or
otherwise, related to or arising out of any action or omission or alleged
action or omission related to the Company or any of its direct or indirect
subsidiaries or the securities or obligations of any such entities.  The Company will further reimburse any
Indemnified Party for all expenses (including counsel fees and disbursements)
upon request as they are incurred in connection with the investigation of,
preparation for or defense of any pending or threatened claim or any action or
proceeding arising from any of the foregoing, whether or not such Indemnified
Party is a party and whether or not such claim, action or proceeding is
initiated or brought by the Company; provided, however, that the
Company will not be liable under the foregoing indemnification provision (and
amounts previously paid that are determined not required to be paid by the
Company pursuant to the terms of this paragraph shall be repaid promptly) to
the extent that any loss, claim, damage, liability or expense is found in a
final judgment by a court to have resulted from our willful misconduct or gross
negligence.  The Company agrees that no
Indemnified Party shall have any liability (whether direct or indirect, in
contract or tort or otherwise) to Jostens related to or arising out of our
retention pursuant to, or our respective affiliates’ performance of the
services contemplated by, this agreement except to the extent that any loss,
claim, damage, liability or expense is found in a final, non-appealable
judgment by a court to have resulted from our willful misconduct, bad faith or
gross negligence.

 

The Company also agrees that, without our
prior written consent, it will not settle, compromise or consent to the entry
of any judgment in any pending or threatened claim, action or proceeding to
which an Indemnified Party is an actual or potential party and in respect of
which indemnification could be sought under the indemnification provision in
the immediately preceding paragraph, unless such settlement, compromise or
consent includes an unconditional release of each Indemnified Party from all
liability arising out of such claim, action or proceeding.

 

Promptly after receipt by an Indemnified
Party of notice of any suit, action, proceeding or investigation with respect
to which an Indemnified Party may be entitled to

 

2

 

indemnification hereunder,
such Indemnified Party will notify the Company in writing of the assertion of
such claim or the commencement of such suit, action, proceeding or
investigation, but the failure to so notify the Company shall not relieve the
Company from any liability which it may have hereunder, except to the extent
that such failure has materially prejudiced the Company.  If the Company so elects within a reasonable
time after receipt of such notice, the Company may participate at its own
expense in the defense of such suit, action, proceeding or investigation.  Each Indemnified Party may employ separate
counsel to represent it or defend it in any such suit, action, proceeding or
investigation in which it may become involved or is named as a defendant and,
in such event, the reasonable fees and disbursements of such counsel shall be
borne by the Company; provided, however, that the Company will
not be required in connection with any such suit, action, proceeding or
investigation, or separate but substantially similar actions arising out of the
same general allegations or circumstances, to pay the fees and disbursements of
more than one separate counsel (other than local counsel) for all Indemnified
Parties in any single action or proceeding. 
Whether or not the Company participates in the defense of any claim, the
Company and we shall cooperate in the defense thereof and shall furnish such
records, information and testimony, and attend such conferences, discovery
proceedings, hearings, trials and appeals, as may be reasonably requested in
connection therewith.

 

If the indemnification provided for in clause
(i) of the first sentence of this Section 5 is finally judicially determined by
a court of competent jurisdiction to be unavailable to an Indemnified Party, or
insufficient to hold any Indemnified Party harmless, in respect of any losses,
claims, damages or liabilities (other than any losses, claims, damages or
liabilities found in a final judgment by a court to have resulted from our
willful misconduct or gross negligence), then the Company, on the one hand, in
lieu of indemnifying such Indemnified Party, and each Investor, on the other
hand, will contribute to the amount paid or payable by such Indemnified Party
as a result of such losses, claims, damages or liabilities (i) in such
proportion as is appropriate to reflect the relative benefits received, or
sought to be received, by Jostens on the one hand and each Investor, solely in
its capacity as an advisor under this agreement, on the other hand, in
connection with the transactions to which such indemnification, contribution or
reimbursement is sought, or (ii) if (but only if) the allocation provided by
clause (i) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i)
but also the relative fault of Jostens on the one hand and each Investor on the
other, as well as any other relevant equitable considerations; provided,
however, that in no event shall each Investor’s aggregate contribution
hereunder exceed the amount of fees actually received by it in respect of the
transaction at issue pursuant to this agreement.  The amount paid or payable by a party as a result of the losses,
claims, damages and liabilities referred to above will be deemed to include any
legal or other fees or expenses reasonably incurred in defending any action or
claim.  The Company and we agree that it
would not be just and equitable if contribution pursuant to this paragraph were
determined by pro rata allocation or by any other method which does not take
into account the equitable considerations referred to in this paragraph.  The indemnity, contribution and expense
reimbursement obligations that the Company has under this letter shall be in
addition to any the Company or Jostens may have, and notwithstanding any other
provision of this letter, shall survive the termination of this agreement.

 

6.     Any
advice or opinions provided by us may not be disclosed or referred to publicly
or to any third party (other than Jostens’ legal, tax, financial or other
advisors), except in

 

3

 

accordance with our prior written consent; provided, however,
notwithstanding anything to the contrary set forth herein or in any other agreement
to which the parties hereto are parties or by which they are bound, the
obligations of confidentiality contained herein and therein, as they relate to
the matters contemplated hereby (the “Transaction”), shall not apply to the tax
structure or tax treatment of the Transaction, and each party hereto (and any
employee, representative, or agent of any party hereto) may disclose to any and
all persons, without limitation of any kind, the tax structure and tax
treatment of the Transaction and all materials of any kind (including opinions
or other tax analysis) that are provided to such party relating to such tax
treatment and tax structure; provided, however, that such disclosure shall not
include the name (or other identifying information not relevant to the tax
structure or tax treatment) of any person and shall not include information for
which nondisclosure is reasonably necessary in order to comply with applicable
securities laws.

 

7.     We
shall act as an independent contractor, with duties solely to Jostens.  The provisions hereof shall inure to the
benefit of and shall be binding upon the parties hereto and their respective
successors and assigns.  Nothing in this
agreement, expressed or implied, is intended to confer on any person other than
the parties hereto or their respective successors and assigns, and, to the
extent expressly set forth herein, the Indemnified Parties, any rights or
remedies under or by reason of this agreement. 
Without limiting the generality of the foregoing, the parties acknowledge
that nothing in this agreement, expressed or implied, is intended to confer on
any present or future holders of any securities of the Company or its
subsidiaries or affiliates, or any present or future creditor of the Company or
its subsidiaries or affiliates, any rights or remedies under or by reason of
this agreement or any performance hereunder.

 

8.     This
agreement shall be governed by and construed in accordance with the internal
laws of the State of New York.

 

9.     This
agreement shall continue in effect from year to year unless amended or
terminated by the consent of all parties hereto.

 

10.   Each
party hereto represents and warrants that the execution and delivery of this
agreement by such party has been duly authorized by all necessary action of such
party.

 

11.   If
any term or provision of this agreement or the application thereof shall, in
any jurisdiction and to any extent, be invalid and unenforceable, such term or
provision shall be ineffective, as to such jurisdiction, solely to the extent
of such invalidity or unenforceability without rendering invalid or
unenforceable any remaining terms or provisions hereof or affecting the
validity or enforceability of such term or provision in any other
jurisdiction.  To the extent permitted
by applicable law, the parties hereto waive any provision of law that renders
any term or provision of this agreement invalid or unenforceable in any
respect.

 

12.   Each
party hereto waives all right to trial by jury in any action, proceeding or
counterclaim (whether based upon contract, tort or otherwise) related to or
arising out of our retention pursuant to, or our performance of the services
contemplated by this agreement.

 

13.   It
is expressly understood that the foregoing paragraphs 2-6, 8, 11 and 12, in
their entirety, survive any termination of this agreement.

 

4

 

14.   This
agreement may be executed in counterparts, each of which shall be deemed an
original agreement, but all of which together shall constitute one and the same
instrument.

 

 

[Remainder of page intentionally left blank.]

 

5

 

Execution Copy

 

If the
foregoing sets forth the understanding between us, please so indicate on the
enclosed signed copy of this letter in the space provided therefor and return
it to us, whereupon this letter shall constitute a binding agreement among us.

 

Very truly yours,

 

	
  Kohlberg
  Kravis Roberts & Co. L.P.

  	
   

  	
  DLJ
  Merchant Banking III, Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
  /s/
  George Hornig

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  	
   

  	
  Name:
  George Hornig

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Title:
  Managing Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

AGREED TO AND ACCEPTED BY:

 

Jostens Holding
Corp.

 

	
   

  	
  By:

  	
  /s/ Paula R. Johnson

  	
   

  
	
   

  	
   

  	
  Name: Paula R. Johnson

  
	
   

  	
   

  	
  Title: Vice President,
  General Counsel and Corporate SecretaryExhibit 4.1

 

EXECUTION COPY

 

JOSTENS IH CORP.

 

Company

 

Guarantors Named in Schedule I hereto

 

and

 

THE BANK OF NEW YORK

 

Trustee

 

Indenture

 

Dated as of October 4, 2004

 

 

$500,000,000

 

7 5/8% Senior Subordinated
Notes Due 2012

 

 

Jostens IH Corp.*

 

Reconciliation and tie between Trust Indenture Act

of 1939 and Indenture, dated as of October 4, 2004

 

	
  Trust Indenture Act Section

  	
   

  	
  Indenture Section

  
	
  § 310

  	
  (a)(1)

  	
   

  	
  608

  
	
   

  	
  (a)(2)

  	
   

  	
  608

  
	
   

  	
  (a)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(4)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  608, 609

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  § 311

  	
  (a)

  	
   

  	
  605

  
	
   

  	
  (b)

  	
   

  	
  605

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  § 312

  	
  (a)

  	
   

  	
  701

  
	
   

  	
  (b)

  	
   

  	
  702

  
	
   

  	
  (c)

  	
   

  	
  702

  
	
  § 313

  	
  (a)

  	
   

  	
  703

  
	
   

  	
  (a)(4)

  	
   

  	
  1008

  
	
   

  	
  (b)(1)

  	
   

  	
  N.A.

  
	
   

  	
  (b)(2)

  	
   

  	
  703

  
	
   

  	
  (c)(1)

  	
   

  	
  102

  
	
   

  	
  (c)(2)

  	
   

  	
  102

  
	
   

  	
  (d)

  	
   

  	
  703

  
	
   

  	
  (e)

  	
   

  	
  102

  
	
  § 314

  	
  (a)

  	
   

  	
  1009

  
	
   

  	
  (b)

  	
   

  	
  N.A.

  
	
   

  	
  (c)(1)

  	
   

  	
  102

  
	
   

  	
  (c)(2)

  	
   

  	
  102

  
	
   

  	
  (c)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (d)

  	
   

  	
  N.A.

  
	
   

  	
  (e)

  	
   

  	
  102

  
	
   

  	
  (f)

  	
   

  	
  1017

  
	
  § 315

  	
  (a)

  	
   

  	
  601

  
	
   

  	
  (b)

  	
   

  	
  602

  
	
   

  	
  (c)

  	
   

  	
  601

  
	
   

  	
  (d)

  	
   

  	
  601

  
	
   

  	
  (e)

  	
   

  	
  514

  
	
  § 316

  	
  (a) (last sentence)

  	
   

  	
  101(“Outstanding”)

  
	
   

  	
  (a)(1)(A)

  	
   

  	
  502, 512

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  513

  
	
   

  	
  (a)(2)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  508

  
	
   

  	
  (c)

  	
   

  	
  104(d)

  
	
  § 317

  	
  (a)(1)

  	
   

  	
  503

  
	
   

  	
  (a)(2)

  	
   

  	
  504

  
	
   

  	
  (b)

  	
   

  	
  1003

  
	
  § 318

  	
  (a)

  	
   

  	
  111

  

 

N.A.
means Not Applicable.

 

*              This reconciliation and tie shall not, for any purpose,
be deemed to be a part of this Indenture.

 

 

Table of Contents*

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE
  ONE

  	
   

  
	
   

  	
   

  
	
  DEFINITIONS AND OTHER PROVISIONS OF GENERAL
  APPLICATION

  	
   

  
	
   

  	
   

  
	
  SECTION 101.

  	
  Rules of Construction and Incorporation by Reference of Trust
  Indenture Act

  	
   

  
	
  SECTION 102.

  	
  Definitions.

  	
   

  
	
  “Acquired Indebtedness”

  	
   

  
	
  “Act”

  	
   

  
	
  “Additional
  Notes”

  	
   

  
	
  “Adjusted Net Assets”

  	
   

  
	
  “Affiliate”

  	
   

  
	
  “Affiliate Transaction”

  	
   

  
	
  “Agent”

  	
   

  
	
  “Applicable Premium”

  	
   

  
	
  “Asset
  Sale”

  	
   

  
	
  “Asset
  Sale Offer”

  	
   

  
	
  “Bankruptcy
  Law”

  	
   

  
	
  “Blockage
  Notice”

  	
   

  
	
  “Board of Directors”

  	
   

  
	
  “Board
  Resolution”

  	
   

  
	
  “Business
  Day”

  	
   

  
	
  “Capital
  Stock”

  	
   

  
	
  “Capitalized Lease Obligation”

  	
   

  
	
  “Cash
  Equivalents”

  	
   

  
	
  “Change
  of Control”

  	
   

  
	
  “Change of Control Offer”

  	
   

  
	
  “Change of Control Payment”

  	
   

  
	
  “Change of Control Payment Date”

  	
   

  
	
  “Color Prelude Acquisition”

  	
   

  
	
  “Common
  Stock”

  	
   

  
	
  “Company”

  	
   

  
	
  “Company
  Request”

  	
   

  
	
  “consolidated”

  	
   

  
	
  “Consolidated Depreciation and Amortization Expense”

  	
   

  
	
  “Consolidated Interest Expense”

  	
   

  
	
  “Consolidated Net Income”

  	
   

  
	
  “Consolidated Total Indebtedness”

  	
   

  
	
  “Contingent Obligations”

  	
   

  
	
  “Corporate Trust Office”

  	
   

  
	
  “Covenant Defeasance”

  	
   

  

 

*              This
table of contents shall not, for any purpose, be deemed to be a part of this
Indenture.

 

i

 

	
  “Credit
  Facilities”

  	
   

  
	
  “Debt to EBITDA Ratio”

  	
   

  
	
  “Default”

  	
   

  
	
  “Defaulted Interest”

  	
   

  
	
  “Depositary”

  	
   

  
	
  “Designated Noncash Consideration”

  	
   

  
	
  “Designated Preferred Stock”

  	
   

  
	
  “Designated Senior Indebtedness”

  	
   

  
	
  “Disqualified Stock”

  	
   

  
	
  “Domestic Subsidiary”

  	
   

  
	
  “EBITDA”

  	
   

  
	
  “EMU”

  	
   

  
	
  “Equity
  Interests”

  	
   

  
	
  “Equity
  Offering”

  	
   

  
	
  “euro”

  	
   

  
	
  “Event
  of Default”

  	
   

  
	
  “Excess
  Proceeds”

  	
   

  
	
  “Exchange
  Act”

  	
   

  
	
  “Exchange
  Notes”

  	
   

  
	
  “Exchange
  Offer”

  	
   

  
	
  “Exchange Offer Registration Statement”

  	
   

  
	
  “Excluded Contribution”

  	
   

  
	
  “Existing Indebtedness”

  	
   

  
	
  “Fixed Charge Coverage Ratio”

  	
   

  
	
  “Fixed
  Charges”

  	
   

  
	
  “Foreign Subsidiary”

  	
   

  
	
  “Funding Guarantor”

  	
   

  
	
  “GAAP”

  	
   

  
	
  “Government Securities”

  	
   

  
	
  “guarantee”

  	
   

  
	
  “Guarantee”

  	
   

  
	
  “Guarantors”

  	
   

  
	
  “Hedging Obligations”

  	
   

  
	
  “Historical Adjustments”

  	
   

  
	
  “Holdco”

  	
   

  
	
  “Holder”

  	
   

  
	
  “incur”

  	
   

  
	
  “incurrence”

  	
   

  
	
  “Indebtedness”

  	
   

  
	
  “Indenture”

  	
   

  
	
  “Independent Financial Advisor”

  	
   

  
	
  “Initial
  Notes”

  	
   

  
	
  “Initial Purchasers”

  	
   

  
	
  “Interest Payment Date”

  	
   

  
	
  “Investment Grade Rating”

  	
   

  
	
  “Investment Grade Securities”

  	
   

  

 

ii

 

	
  “Investments”

  	
   

  
	
  “Investors”

  	
   

  
	
  “Issue
  Date”

  	
   

  
	
  “Jostens Acquisition”

  	
   

  
	
  “Legal Defeasance”

  	
   

  
	
  “Legal
  Holiday”

  	
   

  
	
  “Lehigh Press Acquisition”

  	
   

  
	
  “Lien”

  	
   

  
	
  “Letter of Transmittal”

  	
   

  
	
  “Maturity”

  	
   

  
	
  “Moody’s”

  	
   

  
	
  “Net
  Income”

  	
   

  
	
  “Net
  Proceeds”

  	
   

  
	
  “Non-U.S. Person”

  	
   

  
	
  “Note
  Register”

  	
   

  
	
  “Notes”

  	
   

  
	
  “Obligations”

  	
   

  
	
  “Offering Circular”

  	
   

  
	
  “Officer”

  	
   

  
	
  “Officers’ Certificate”

  	
   

  
	
  “Opinion of Counsel”

  	
   

  
	
  “Outstanding”

  	
   

  
	
  “pay
  the Notes”

  	
   

  
	
  “Paying
  Agent”

  	
   

  
	
  “Payment Blockage Period”

  	
   

  
	
  “Payment
  Default”

  	
   

  
	
  “Permitted Asset Swap”

  	
   

  
	
  “Permitted Holders”

  	
   

  
	
  “Permitted Investments”

  	
   

  
	
  “Permitted Junior Securities”

  	
   

  
	
  “Permitted
  Liens”

  	
   

  
	
  “Person”

  	
   

  
	
  “Predecessor
  Note”

  	
   

  
	
  “preferred
  stock”

  	
   

  
	
  “Protected Purchaser”

  	
   

  
	
  “Qualified Proceeds”

  	
   

  
	
  “Rating
  Agencies”

  	
   

  
	
  “Receivables Facility”

  	
   

  
	
  “Receivables Fees”

  	
   

  
	
  “Redemption
  Date”

  	
   

  
	
  “Redemption
  Price”

  	
   

  
	
  “Refinancing Indebtedness”

  	
   

  
	
  “Refunding Capital Stock”

  	
   

  
	
  “Registration Rights Agreement”

  	
   

  
	
  “Regular Record Date”

  	
   

  
	
  “Related Business Assets”

  	
   

  

 

iii

 

	
  “Representative”

  	
   

  
	
  “Responsible Officer”

  	
   

  
	
  “Restricted Investment”

  	
   

  
	
  “Restricted Payments”

  	
   

  
	
  “Restricted Subsidiary”

  	
   

  
	
  “Retired Capital Stock”

  	
   

  
	
  “S&P”

  	
   

  
	
  “Sale and Lease-Back Transaction”

  	
   

  
	
  “SEC”

  	
   

  
	
  “Secondary Holdings”

  	
   

  
	
  “Secured Indebtedness”

  	
   

  
	
  “Securities
  Act”

  	
   

  
	
  “Senior Credit Facilities”

  	
   

  
	
  “Senior Discount Indenture”

  	
   

  
	
  “Senior Discount Notes”

  	
   

  
	
  “Senior Indebtedness”

  	
   

  
	
  “Senior Subordinated Indebtedness”

  	
   

  
	
  “Shelf Registration Statement”

  	
   

  
	
  “Significant Subsidiary”

  	
   

  
	
  “Similar Business”

  	
   

  
	
  “Special Interest”

  	
   

  
	
  “Special Interest Notice”

  	
   

  
	
  “Special Record Date”

  	
   

  
	
  “Stated
  Maturity”

  	
   

  
	
  “Subordinated Indebtedness”

  	
   

  
	
  “Subsidiary”

  	
   

  
	
  “Successor
  Company”

  	
   

  
	
  “Successor
  Person”

  	
   

  
	
  “Total
  Assets”

  	
   

  
	
  “Transaction Agreements”

  	
   

  
	
  “Transactions”

  	
   

  
	
  “Treasury
  Rate”

  	
   

  
	
  “Trust Indenture Act”

  	
   

  
	
  “Trustee”

  	
   

  
	
  “Uniform Commercial Code”

  	
   

  
	
  “Unrestricted Subsidiary”

  	
   

  
	
  “U.S.
  Person”

  	
   

  
	
  “Vice
  President”

  	
   

  
	
  “Voting
  Stock”

  	
   

  
	
  “Weighted Average Life to Maturity”

  	
   

  
	
  “Wholly-Owned Subsidiary”

  	
   

  
	
  SECTION 103.

  	
  Compliance Certificates and Opinions

  	
   

  
	
  SECTION 104.

  	
  Form of Documents Delivered to Trustee

  	
   

  
	
  SECTION 105.

  	
  Acts of Holders

  	
   

  
	
  SECTION 106.

  	
  Notices, Etc., to Trustee, Company, any
  Guarantor and Agent

  	
   

  
	
  SECTION 107.

  	
  Notice to Holders; Waiver

  	
   

  

 

iv

 

	
  SECTION 108.

  	
  Effect of Headings and Table of Contents

  	
   

  
	
  SECTION 109.

  	
  Successors and Assigns

  	
   

  
	
  SECTION 110.

  	
  Separability Clause

  	
   

  
	
  SECTION 111.

  	
  Benefits of Indenture

  	
   

  
	
  SECTION 112.

  	
  Governing Law

  	
   

  
	
  SECTION 113.

  	
  Legal Holidays

  	
   

  
	
  SECTION 114.

  	
  No Personal Liability of Directors,
  Officers, Employees and Stockholders

  	
   

  
	
  SECTION 115.

  	
  Trust Indenture Act Controls

  	
   

  
	
  SECTION 116.

  	
  Counterparts

  	
   

  
	
   

  	
   

  
	
  ARTICLE TWO

  	
   

  
	
   

  	
   

  
	
  NOTE FORMS

  	
   

  
	
   

  	
   

  
	
  SECTION 201.

  	
  Form and Dating

  	
   

  
	
  SECTION 202.

  	
  Execution, Authentication, Delivery and
  Dating

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE THREE

  	
   

  
	
   

  	
   

  
	
  THE NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 301.

  	
  Title and Terms

  	
   

  
	
  SECTION 302.

  	
  Denominations

  	
   

  
	
  SECTION 303.

  	
  Temporary Notes

  	
   

  
	
  SECTION 304.

  	
  Registration, Registration of Transfer and
  Exchange

  	
   

  
	
  SECTION 305.

  	
  Mutilated, Destroyed, Lost and Stolen Notes

  	
   

  
	
  SECTION 306.

  	
  Payment of Interest; Interest Rights
  Preserved

  	
   

  
	
  SECTION 307.

  	
  Persons Deemed Owners

  	
   

  
	
  SECTION 308.

  	
  Cancellation

  	
   

  
	
  SECTION 309.

  	
  Computation of Interest

  	
   

  
	
  SECTION 310.

  	
  Transfer and Exchange

  	
   

  
	
  SECTION 311.

  	
  CUSIP Numbers

  	
   

  
	
  SECTION 312.

  	
  Issuance of Additional Notes

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE FOUR

  	
   

  
	
   

  	
   

  	
   

  
	
  SATISFACTION AND DISCHARGE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 401.

  	
  Satisfaction and Discharge of Indenture

  	
   

  
	
  SECTION 402.

  	
  Application of Trust Money

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE FIVE

  	
   

  
	
   

  	
   

  	
   

  
	
  REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 501.

  	
  Events of Default

  	
   

  
	
  SECTION 502.

  	
  Acceleration of Maturity; Rescission and
  Annulment

  	
   

  

 

v

 

	
  SECTION 503.

  	
  Collection of Indebtedness and Suits for
  Enforcement by Trustee

  	
   

  
	
  SECTION 504.

  	
  Trustee May File Proofs of Claim

  	
   

  
	
  SECTION 505.

  	
  Trustee May Enforce Claims Without
  Possession of Notes

  	
   

  
	
  SECTION 506.

  	
  Application of Money Collected

  	
   

  
	
  SECTION 507.

  	
  Limitation on Suits

  	
   

  
	
  SECTION 508.

  	
  Unconditional Right of Holders to Receive
  Principal, Premium and Interest

  	
   

  
	
  SECTION 509.

  	
  Restoration of Rights and Remedies

  	
   

  
	
  SECTION 510.

  	
  Rights and Remedies Cumulative

  	
   

  
	
  SECTION 511.

  	
  Delay or Omission Not Waiver

  	
   

  
	
  SECTION 512.

  	
  Control by Holders

  	
   

  
	
  SECTION 513.

  	
  Waiver of Past Defaults

  	
   

  
	
  SECTION 514.

  	
  Waiver of Stay or Extension Laws

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE SIX

  	
   

  
	
   

  	
   

  	
   

  
	
  THE TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 601.

  	
  Duties of the Trustee

  	
   

  
	
  SECTION 602.

  	
  Notice of Defaults

  	
   

  
	
  SECTION 603.

  	
  Certain Rights of Trustee

  	
   

  
	
  SECTION 604.

  	
  Trustee Not Responsible for Recitals or
  Issuance of Notes

  	
   

  
	
  SECTION 605.

  	
  May Hold Notes

  	
   

  
	
  SECTION 606.

  	
  Money Held in Trust

  	
   

  
	
  SECTION 607.

  	
  Compensation and Reimbursement

  	
   

  
	
  SECTION 608.

  	
  Corporate Trustee Required; Eligibility

  	
   

  
	
  SECTION 609.

  	
  Resignation and Removal; Appointment of
  Successor

  	
   

  
	
  SECTION 610.

  	
  Acceptance of Appointment by Successor

  	
   

  
	
  SECTION 611.

  	
  Merger, Conversion, Consolidation or
  Succession to Business

  	
   

  
	
  SECTION 612.

  	
  Appointment of Authenticating Agent

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN

  	
   

  
	
   

  	
   

  	
   

  
	
  HOLDERS LISTS AND REPORTS BY TRUSTEE AND
  COMPANY

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 701.

  	
  Company to Furnish Trustee Names and
  Addresses

  	
   

  
	
  SECTION 702.

  	
  Disclosure of Names and Addresses of
  Holders

  	
   

  
	
  SECTION 703.

  	
  Reports by Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT

  	
   

  
	
   

  	
   

  	
   

  
	
  MERGER, CONSOLIDATION OR SALE OF ALL OR
  SUBSTANTIALLY ALL ASSETS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 801.

  	
  Company May Consolidate, Etc., Only on
  Certain Terms

  	
   

  
	
  SECTION 802.

  	
  Guarantors May Consolidate, Etc., Only on
  Certain Terms

  	
   

  
	
  SECTION 803.

  	
  Successor Substituted

  	
   

  

 

vi

 

	
  ARTICLE NINE

  	
   

  
	
   

  	
   

  	
   

  
	
  SUPPLEMENTAL INDENTURES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 901.

  	
  Amendments or Supplements Without Consent
  of Holders

  	
   

  
	
  SECTION 902.

  	
  Amendments, Supplements or Waivers with
  Consent of Holders

  	
   

  
	
  SECTION 903.

  	
  Execution of Amendments, Supplements or
  Waivers

  	
   

  
	
  SECTION 904.

  	
  Effect of Amendments, Supplements or
  Waivers

  	
   

  
	
  SECTION 905.

  	
  Compliance with Trust Indenture Act

  	
   

  
	
  SECTION 906.

  	
  Reference in Notes to Supplemental
  Indentures

  	
   

  
	
  SECTION 907.

  	
  Notice of Supplemental Indentures

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE TEN

  	
   

  
	
   

  	
   

  	
   

  
	
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1001.

  	
  Payment of Principal, Premium, if any, and
  Interest

  	
   

  
	
  SECTION 1002.

  	
  Maintenance of Office or Agency

  	
   

  
	
  SECTION 1003.

  	
  Money for Notes Payments to Be Held in
  Trust

  	
   

  
	
  SECTION 1004.

  	
  Corporate Existence

  	
   

  
	
  SECTION 1005.

  	
  Payment of Taxes and Other Claims

  	
   

  
	
  SECTION 1006.

  	
  Maintenance of Properties

  	
   

  
	
  SECTION 1007.

  	
  Insurance

  	
   

  
	
  SECTION 1008.

  	
  Statement by Officers as to Default

  	
   

  
	
  SECTION 1009.

  	
  Reports and Other Information

  	
   

  
	
  SECTION 1010.

  	
  Limitation on Restricted Payments

  	
   

  
	
  SECTION 1011.

  	
  Limitation on Incurrence of Indebtedness
  and Issuance of Disqualified Stock

  	
   

  
	
  SECTION 1012.

  	
  Liens

  	
   

  
	
  SECTION 1013.

  	
  Limitations on Transactions with Affiliates

  	
   

  
	
  SECTION 1014.

  	
  Limitations on Dividend and Other Payment
  Restrictions Affecting Restricted Subsidiaries

  	
   

  
	
  SECTION 1015.

  	
  Limitation on Guarantees of Indebtedness by
  Restricted Subsidiaries

  	
   

  
	
  SECTION 1016.

  	
  Limitation on Other Senior Subordinated
  Indebtedness

  	
   

  
	
  SECTION 1017.

  	
  Change of Control

  	
   

  
	
  SECTION 1018.

  	
  Asset Sales

  	
   

  
	
  SECTION 1019.

  	
  Special Interest Notice

  	
   

  
	
  SECTION 1020.

  	
  Suspension of Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN

  	
   

  
	
   

  	
   

  	
   

  
	
  REDEMPTION OF NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1101.

  	
  Right of Redemption

  	
   

  
	
  SECTION 1102.

  	
  Applicability of Article

  	
   

  
	
  SECTION 1103.

  	
  Election to Redeem; Notice to Trustee

  	
   

  

 

vii

 

	
  SECTION 1104.

  	
  Selection by Trustee of Notes to Be
  Redeemed

  	
   

  
	
  SECTION 1105.

  	
  Notice of Redemption

  	
   

  
	
  SECTION 1106.

  	
  Deposit of Redemption Price

  	
   

  
	
  SECTION 1107.

  	
  Notes Payable on Redemption Date

  	
   

  
	
  SECTION 1108.

  	
  Notes Redeemed in Part

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWELVE

  	
   

  
	
   

  	
   

  	
   

  
	
  GUARANTEES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1201.

  	
  Guarantees

  	
   

  
	
  SECTION 1202.

  	
  Severability

  	
   

  
	
  SECTION 1203.

  	
  Restricted Subsidiaries

  	
   

  
	
  SECTION 1204.

  	
  Subordination of Guarantees

  	
   

  
	
  SECTION 1205.

  	
  Limitation of Guarantors’ Liability

  	
   

  
	
  SECTION 1206.

  	
  Contribution

  	
   

  
	
  SECTION 1207.

  	
  Subrogation

  	
   

  
	
  SECTION 1208.

  	
  Reinstatement

  	
   

  
	
  SECTION 1209.

  	
  Release of a Guarantor

  	
   

  
	
  SECTION 1210.

  	
  Benefits Acknowledged

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  THIRTEEN

  	
   

  
	
   

  	
   

  
	
  LEGAL DEFEASANCE AND COVENANT DEFEASANCE

  	
   

  
	
   

  	
   

  
	
  SECTION 1301.

  	
  Company’s Option to Effect Legal Defeasance
  or Covenant Defeasance

  	
   

  
	
  SECTION 1302.

  	
  Legal Defeasance and Discharge

  	
   

  
	
  SECTION 1303.

  	
  Covenant Defeasance

  	
   

  
	
  SECTION 1304.

  	
  Conditions to Legal Defeasance or Covenant
  Defeasance

  	
   

  
	
  SECTION 1305.

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

  	
   

  
	
  SECTION 1306.

  	
  Reinstatement

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  FOURTEEN

  	
   

  
	
   

  	
   

  
	
  SUBORDINATION

  	
   

  
	
   

  	
   

  
	
  SECTION 1401.

  	
  Agreement To Subordinate

  	
   

  
	
  SECTION 1402.

  	
  Liquidation, Dissolution, Bankruptcy

  	
   

  
	
  SECTION 1403.

  	
  Default on Designated Senior Indebtedness
  of the Company

  	
   

  
	
  SECTION 1404.

  	
  Acceleration of Payment of Securities

  	
   

  
	
  SECTION 1405.

  	
  When Distribution Must Be Paid Over

  	
   

  
	
  SECTION 1406.

  	
  Subrogation

  	
   

  
	
  SECTION 1407.

  	
  Relative Rights

  	
   

  
	
  SECTION 1408.

  	
  Subordination May Not Be Impaired by
  Company

  	
   

  
	
  SECTION 1409.

  	
  Rights of Trustee and Paying Agent

  	
   

  

 

viii

 

	
  SECTION 1410.

  	
  Distribution or Notice to Representative

  	
   

  
	
  SECTION 1411.

  	
  Article Fourteen Not To Prevent Events
  of Default or Limit Right To Accelerate

  	
   

  
	
  SECTION 1412.

  	
  Trust Moneys Not Subordinated

  	
   

  
	
  SECTION 1413.

  	
  Trustee Entitled To Rely

  	
   

  
	
  SECTION 1414.

  	
  Trustee To Effectuate Subordination

  	
   

  
	
  SECTION 1415.

  	
  Trustee Not Fiduciary for Holders of
  Senior Indebtedness of the Company

  	
   

  
	
  SECTION 1416.

  	
  Reliance by Holders of Senior Indebtedness
  of the Company on Subordination Provisions

  	
   

  

 

	
   

  	
  APPENDIX & EXHIBITS

  
	
   

  	
   

  
	
   

  	
  Rule 144A / Regulation S / IAI Appendix

  
	
   

  	
  EXHIBIT 1 to Rule 144A / Regulation S / IAI
  Appendix – Form of Initial Note

  
	
   

  	
  EXHIBIT 2 to Rule 144A / Regulation S / IAI
  Appendix – Form of Transferee

  
	
   

  	
  Letter of Representation

  
	
   

  	
  EXHIBIT A      –
  Form of Exchange Security or Private Exchange Security

  
	
   

  	
  EXHIBIT B       –
  Form of Notation of Guarantee

  
	
   

  	
  EXHIBIT C       –
  Form of Supplemental Indenture

  
	
   

  	
  EXHIBIT D       –
  Form of Incumbency Certificate

  

 

ix

 

INDENTURE dated as of October 4, 2004 (this “Indenture”),
among JOSTENS IH CORP., a Delaware corporation (the “Company”), having its
principal office at 5501 American Boulevard West, Minneapolis, Minnesota 55437,
and certain of the Company’s direct and indirect Domestic Subsidiaries (as
defined below), each named in the signature pages hereto (each, a “Guarantor”
and, collectively, the “Guarantors”), and THE BANK OF NEW YORK, a New York
banking corporation, as Trustee (the “Trustee”).

 

RECITALS OF THE COMPANY

 

The Company has duly authorized the creation of an issue of (i) 7 5/8%
Senior Subordinated Notes Due 2012 issued on the date hereof (the “Initial
Notes”) and (ii) if and when issued as required by the Exchange and
Registration Rights Agreement dated the date hereof, among the Company, the
Guarantors and the Purchasers (as defined therein) (the “Registration Rights
Agreement”), 7 5/8% Senior Exchange Notes Due 2012 issued in an Exchange Offer
in exchange for any Initial Notes (the “Exchange Notes”, and collectively with
the Initial Notes, the “Notes”), of substantially the tenor and amount
hereinafter set forth, and to provide therefor the Company has duly authorized
the execution and delivery of this Indenture.

 

Each Guarantor has duly authorized its Guarantee of the Initial Notes,
and if and when issued, the Exchange Notes and to provide therefor each
Guarantor has duly authorized the execution and delivery of this Indenture.

 

All things necessary have been done to make the Notes, when executed by
the Company and authenticated and delivered hereunder and duly issued by the
Company, the valid and legally binding obligations of the Company and to make
this Indenture a valid and legally binding agreement of the Company, in
accordance with their and its terms.

 

All things necessary have been done to make the Guarantees, upon
execution and delivery of this Indenture, the valid obligations of each
Guarantor and to make this Indenture a valid and legally binding agreement of
each Guarantor, in accordance with their and its terms.

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

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

 

 

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

 

SECTION 101.  Rules of Construction and Incorporation by
Reference of Trust Indenture Act. 
(a)  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 words in the
singular include the plural and words in the plural include the singular;

 

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

 

(3)  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;

 

(4)  all references to Articles,
Sections, Exhibits and Appendices shall be construed to refer to Articles and
Sections of, and Exhibits and Appendices to, this Indenture;

 

(5)  ”or” is not exclusive;

 

(6)  ”including” means including
without limitation;

 

(7)  all references to the date the
Notes were originally issued shall refer to the Issue Date; and

 

(8)  all references, in any
context, to any interest or other amount payable on or with respect to the
Notes shall be deemed to include any Special Interest (as herein defined)
pursuant to the Registration Rights Agreement.

 

(b)           This Indenture is subject to the
mandatory provisions of the TIA (as herein defined) which are incorporated by
reference in and made a part of this Indenture. 
The following TIA terms have the following meanings:

 

(1)           “Commission”
means the SEC;

 

(2)           “indenture
securities” means the Notes and the Guarantees;

 

(3)           “indenture
security holder” means a Holder;

 

(4)           “indenture
to be qualified” means this Indenture;

 

(5)           “indenture
trustee” or “institutional trustee” means the Trustee; and

 

2

 

(6)           “obligor”
on the indenture securities means the Company, each Guarantor and any other
obligor on the indenture securities.

 

All other TIA
terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by SEC rule have the meanings assigned
to them by such definitions.

 

SECTION 102.  Definitions.

 

“Acquired Indebtedness” means, with
respect to any specified Person,

 

(1)           Indebtedness
of any other Person existing at the time such other Person is merged with or
into or became a Restricted Subsidiary of such specified Person, including
Indebtedness incurred in connection with, or in contemplation of, such other
Person merging with or into or becoming a Restricted Subsidiary of such
specified Person, and

 

(2)           Indebtedness
secured by a Lien encumbering any asset acquired by such specified Person.

 

“Act”, when used with respect to any Holder, has the
meaning specified in Section 105 of this Indenture.

 

“Additional Notes” means any Notes issued
by the Company pursuant to Section 312.

 

“Adjusted Net Assets” has the meaning
specified in Section 1206 of this Indenture.

 

“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.

 

“Affiliate Transaction” has the
meaning specified in Section 1013 of this Indenture.

 

“Agent” means any Note Registrar, co-registrar,
Paying Agent or additional paying agent.

 

“Applicable Premium” means, with respect
to any Note on any Redemption Date, the greater of:

 

(1)           1.0%
of the principal amount of the Note; and

 

3

 

(2)           the
excess, if any, of:

 

(A)          the
present value at such redemption date of (i) the redemption price of the
Note at October 1, 2008 (such redemption price being set forth in the table
appearing in Section 1101), plus (ii) all required interest payments due
on the Note through October 1, 2008 (excluding accrued but unpaid interest to
the Redemption Date), computed using a discount rate equal to the Treasury Rate
as of such Redemption Date plus 50 basis points; over

 

(B)           the
principal amount of the Note.

 

“Asset Sale” means:

 

(1)           the
sale, conveyance, transfer or other disposition, whether in a single
transaction or a series of related transactions, of property or assets
(including by way of a Sale Lease-Back Transaction) of the Company or any
Restricted Subsidiary (each referred to in this definition as a “disposition”),
or

 

(2)           the
issuance or sale of Equity Interests of any Restricted Subsidiary, whether in a
single transaction or a series of related transactions, in each case, other
than:

 

(A)          any
disposition of Cash Equivalents or Investment Grade Securities or obsolete or
worn out equipment in the ordinary course of business, or any disposition of
inventory or goods held for sale in the ordinary course of business;

 

(B)           the
disposition of all or substantially all of the assets of the Company in a
manner permitted pursuant to Section 801 or any disposition that constitutes a
Change of Control pursuant to this Indenture;

 

(C)           the
making of any Restricted Payment or Permitted Investment that is permitted to
be made, and is made, under Section 1010;

 

(D)          any
disposition of assets or issuance or sale of Equity Interests of any Restricted
Subsidiary in any transaction or series of transactions with an aggregate fair
market value of less than $20.0 million;

 

(E)           any
disposition of property or assets or issuance of securities by a Restricted
Subsidiary to the Company or by the Company or a Restricted Subsidiary to a
Restricted Subsidiary;

 

(F)           to
the extent allowable under Section 1031 of the Internal Revenue Code of
1986, any exchange of like property (excluding any boot thereon) for use in a
Similar Business;

 

4

 

(G)           the lease, assignment or sub-lease of
any real or personal property in the ordinary course of business;

 

(H)          any
sale of Equity Interests in, or Indebtedness or other securities of, an Unrestricted
Subsidiary (with the exception of Investments in Unrestricted Subsidiaries
acquired pursuant to clause (8) of the definition of Permitted
Investments);

 

(I)            foreclosures
on assets;

 

(J)            sales
of accounts receivable, or participations therein, in connection with any
Receivables Facility; and

 

(K)          any
financing transaction with respect to property built or acquired by the Company
or any Restricted Subsidiary after the Issue Date, including Sale and
Lease-Back Transactions and asset securitizations permitted by this Indenture.

 

“Asset Sale Offer” has the meaning specified
in Section 1018 of this Indenture.

 

“Bankruptcy Law” means Title 11, United
States Bankruptcy Code of 1978, as amended, or any similar United States
federal or state law relating to bankruptcy, insolvency, receivership,
winding-up, liquidation, reorganization or relief of debtors or any amendment
to, succession to or change in any such law.

 

“Blockage Notice” has the meaning specified
in Section 1403 of this Indenture.

 

“Board of Directors” means, with respect
to any Person, either the board of directors of such Person or any duly
authorized committee of such board.

 

“Board Resolution” means, with respect to
the Company, a duly adopted resolution of the Board of Directors of the Company
or any committee thereof.

 

“Business Day” means each day which is not a
Legal Holiday.

 

“Capital Stock” means:

 

(1)           in
the case of a corporation, corporate stock,

 

(2)           in
the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate
stock,

 

(3)           in
the case of a partnership or limited liability company, partnership or
membership interests (whether general or limited), and

 

5

 

(4)           any
other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing
Person.

 

“Capitalized Lease Obligation”
means, at the time any determination thereof is to be made, the amount of the
liability in respect of a capital lease that would at such time be required to
be capitalized and reflected as a liability on a balance sheet (excluding the
footnotes thereto) in accordance with GAAP.

 

“Cash Equivalents” means:

 

(1)           United
States dollars,

 

(2)           Canadian
dollars,

 

(3)           (A)  euro, or any national currency of any
participating member state in the European Union, or

 

(B)  in the case of any Foreign
Subsidiary that is a Restricted Subsidiary, such local currencies held by them
from time to time in the ordinary course of business,

 

(4)           securities
issued or directly and fully and unconditionally guaranteed or insured by the
United States government or any agency or instrumentality thereof the
securities of which are unconditionally guaranteed as a full faith and credit
obligation of such government with maturities of 24 months or less from
the date of acquisition,

 

(5)           certificates
of deposit, time deposits and eurodollar time deposits with maturities of one
year or less from the date of acquisition, bankers’ acceptances with maturities
not exceeding one year and overnight bank deposits, in each case with any
commercial bank having capital and surplus of not less than $250.0 million
in the case of domestic banks and $100.0 million (or the U.S. dollar
equivalent as of the date of determination) in the case of foreign banks,

 

(6)           repurchase
obligations for underlying securities of the types described in clauses (4) and
(5) above, entered into with any financial institution meeting the
qualifications specified in clause (5) above,

 

(7)           commercial
paper rated at least P-1 by Moody’s or at least A-1 by S&P and in each case
maturing within 12 months after the date of creation thereof,

 

(8)           marketable
short-term money market and similar funds having a rating of at least P-2
or A-2 from either Moody’s or S&P, respectively (or, if at any time
neither Moody’s nor S&P shall be rating such obligations, an equivalent
rating from another Rating Agency) and in each case maturing within 12 months
after the date of creation thereof,

 

6

 

(9)           investment
funds investing 95% of their assets in securities of the types described in
clauses (1) through (8) above,

 

(10)         readily
marketable direct obligations issued by any state of the United States of
America or any political subdivision thereof having one of the two highest
rating categories obtainable from either Moody’s or S&P with maturities of
24 months or less from the date of acquisition, and

 

(11)         Indebtedness
or preferred stock issued by Persons with a rating of “A” or higher from
S&P or “A2” or higher from Moody’s with maturities of 12 months or
less from the date of acquisition.

 

Notwithstanding
the foregoing, Cash Equivalents shall include amounts denominated in currencies
other than those set forth in clauses (1) through (3) above, provided that such amounts are converted into any currency
listed in clauses (1) through (3) above, as promptly as practicable
and in any event within ten Business Days following the receipt of such
amounts.

 

“Change of Control” means the occurrence of
any of the following:

 

(1)           the
sale, lease or transfer, in one or a series of related transactions, of all or
substantially all of the assets of the Company and its Subsidiaries, taken as a
whole, to any Person other than a Permitted Holder; or

 

(2)           the
Company becomes aware of (by way of a report or any other filing pursuant
Section 13(d) of the Exchange Act, proxy, vote, written notice or
otherwise) the acquisition by any Person or group (within the meaning of
Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any
successor provision), including any group acting for the purpose of acquiring,
holding or disposing of securities (within the meaning of Rule 13d-5(b)(1)
under the Exchange Act), other than the Permitted Holders, in a single
transaction or in a related series of transactions, by way of merger,
consolidation or other business combination or purchase of beneficial ownership
(within the meaning of Rule 13d-3 under the Exchange Act, or any successor
provision) of 50% or more of the total voting power of the Voting Stock of the
Company or any of its direct or indirect parent entities.

 

“Change of Control Offer” has the
meaning specified in Section 1017 of this Indenture.

 

“Change of Control Payment” has the
meaning specified in Section 1017 of this Indenture.

 

“Change of Control Payment Date”
has the meaning specified in Section 1017 of this Indenture.

 

“Color Prelude Acquisition” means
the acquisition of Color Prelude, Inc. by IST Corp. on December 18,
2001.

 

7

 

“Common Stock” means, with respect to any
Person, any and all shares, interests, participations and other equivalents
(however designated, whether voting or non-voting) of such Person’s
common stock, whether now outstanding or issued after the date of this
Indenture, and includes all series and classes of such common stock.

 

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

 

“Company Request” or “Company Order” means a
written request or order signed in the name of the Company by two Officers or
one Officer and either an Assistant Treasurer or an Assistant Secretary of the
Company, and delivered to the Trustee.

 

“consolidated” or “Consolidated” means, with
respect to any Person, such Person consolidated with its Restricted
Subsidiaries, and shall not include any Unrestricted Subsidiary.

 

“Consolidated Depreciation and Amortization
Expense” means with respect to any Person for any period, the total amount of
depreciation and amortization expense, including the amortization of deferred
financing fees of such Person and its Restricted Subsidiaries for such period
on a consolidated basis and otherwise determined in accordance with GAAP.

 

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

 

(1)           consolidated
interest expense of such Person and its Restricted Subsidiaries for such
period, to the extent such expense was deducted in computing Consolidated Net
Income (including amortization of original issue discount resulting from the
issuance of Indebtedness at less than par, non-cash interest payments (but
excluding any non-cash interest expense attributable to the movement in the
mark to market valuation of Hedging Obligations or other derivative instruments
pursuant to Financial Accounting Standards Board Statement
No. 133—”Accounting for Derivative Instruments and Hedging Activities”),
the interest component of Capitalized Lease Obligations and net payments, if
any, pursuant to interest rate Hedging Obligations with respect to
Indebtedness, and excluding amortization of deferred financing fees, debt
issuance costs, commissions, fees and expenses and any expensing of bridge,
commitment and other financing fees), and

 

(2)           consolidated
capitalized interest of such Person and its Restricted Subsidiaries for such
period, whether paid or accrued less

 

(3)           interest
income for such period.

 

8

 

For purposes of this definition, interest on a
Capitalized Lease Obligation shall be deemed to accrue at an interest rate
reasonably determined by such Person to be the rate of interest implicit in
such Capitalized Lease Obligation in accordance with GAAP.

 

“Consolidated Net Income” means, with
respect to any Person for any period, the aggregate of the Net Income, of such
Person and its Restricted Subsidiaries for such period, on a consolidated
basis, and otherwise determined in accordance with GAAP; provided, however,
that, without duplication:

 

(1)           any
after-tax effect of extraordinary, non-recurring or unusual gains or losses
(less all fees and expenses relating thereto) or expenses (including relating
to severance, relocation costs, new product introductions, one-time
compensation charges, the Jostens Acquisition, the Color Prelude Acquisition,
the Lehigh Press Acquisition and the Transactions) shall be excluded,

 

(2)           the
Net Income for such period shall not include the cumulative effect of a change
in accounting principles during such period,

 

(3)           any
after-tax effect of income (loss) from disposed or discontinued operations and
any net after-tax gains or losses on disposal of disposed or discontinued
operations shall be excluded,

 

(4)           any
after-tax effect of gains or losses (less all fees and expenses relating thereto)
attributable to asset dispositions other than in the ordinary course of
business, as determined in good faith by the Board of Directors of the Company,
shall be excluded,

 

(5)           the
Net Income for such period of any Person that is not a Subsidiary, or is an
Unrestricted Subsidiary, or that is accounted for by the equity method of
accounting, shall be excluded; provided
that Consolidated Net Income of the Company shall be increased by the amount of
dividends or distributions or other payments that are actually paid in cash (or
to the extent converted into cash) to the referent Person or a Restricted
Subsidiary thereof in respect of such period,

 

(6)           solely
for the purpose of determining the amount available for Restricted Payments
under clause (C)(1) of the first paragraph of Section 1010, the Net Income
for such period of any Restricted Subsidiary (other than any Guarantor) shall
be excluded if the declaration or payment of dividends or similar distributions
by that Restricted Subsidiary of its Net Income is not at the date of
determination wholly permitted without any prior governmental approval (which
has not been obtained) or, directly or indirectly, by the operation of the
terms of its charter or any agreement, instrument, judgment, decree, order, statute,
rule, or governmental regulation applicable to such Restricted Subsidiary or
its stockholders, unless such restriction with respect to the payment of
dividends or similar distributions has been legally waived, provided that Consolidated Net Income of the Company shall
be increased by the amount of dividends or other

 

9

 

distributions
or other payments actually paid in cash (or to the extent converted into cash)
to the Company or a Restricted Subsidiary thereof in respect of such period, to
the extent not already included therein,

 

(7)           effects
of adjustments in any line item in such Person’s consolidated financial
statements required or permitted by the Financial Accounting Standards Board
Statement Nos. 141 and 142 resulting from the application of purchase
accounting in relation to the Transactions, the Jostens Acquisition, the Color
Prelude Acquisition and the Lehigh Press Acquisition or any acquisition that is
consummated after the Issue Date, net of taxes, shall be excluded,

 

(8)           any
after-tax effect of income (loss) from the early extinguishment of Indebtedness
or Hedging Obligations or other derivative instruments shall be excluded,

 

(9)           any
impairment charge or asset write-off pursuant to Financial Accounting Standards
Board Statement No. 142 and No. 144 and the amortization of
intangibles arising pursuant to No. 141 shall be excluded, and

 

(10)         any
non-cash compensation expense recorded from grants of stock appreciation or
similar rights, stock options, restricted stock or other rights to officers,
directors or employees shall be excluded.

 

Notwithstanding
the foregoing, for the purpose of Section 1010 only (other than
clause (C)(4) of the first paragraph thereof), there shall be excluded
from Consolidated Net Income any income arising from any sale or other
disposition of Restricted Investments made by the Company and the Restricted
Subsidiaries, any repurchases and redemptions of Restricted Investments from
the Company and the Restricted Subsidiaries, any repayments of loans and
advances which constitute Restricted Investments by the Company or any
Restricted Subsidiary, any sale of the stock of an Unrestricted Subsidiary or
any distribution or dividend from an Unrestricted Subsidiary, in each case only
to the extent such amounts increase the amount of Restricted Payments permitted
under such covenant pursuant to clause (C)(4) of the first paragraph
thereof.

 

“Consolidated Total Indebtedness”
means, as at any date of determination, an amount equal to the sum of
(a) the aggregate amount of all outstanding Indebtedness of the Company
and the Restricted Subsidiaries and (b) the aggregate amount of all
outstanding Disqualified Stock of the Company and all preferred stock of the
Restricted Subsidiaries, with the amount of such Disqualified Stock and
preferred stock equal to the greater of their respective voluntary or
involuntary liquidation preferences and Maximum Fixed Repurchase Prices, in
each case determined on a consolidated basis in accordance with GAAP.

 

For purposes
hereof, the “Maximum Fixed Repurchase Price” of any Disqualified Stock or
preferred stock that does not have a fixed repurchase price shall be

 

10

 

calculated in accordance with the terms of such Disqualified Stock or
preferred stock as if such Disqualified Stock or preferred stock were purchased
on any date on which Consolidated Total Indebtedness shall be required to be
determined pursuant to this Indenture, and if such price is based upon, or
measured by, the fair market value of such Disqualified Stock or preferred
stock, such fair market value shall be determined reasonably and in good faith
by the Board of Directors of the Company.

 

“Contingent Obligations” means, with
respect to any Person, any obligation of such Person guaranteeing any leases,
dividends or other obligations that do not constitute Indebtedness (“primary
obligations”) of any other Person (the “primary obligor”) in any manner,
whether directly or indirectly, including any obligation of such Person,
whether or not contingent,

 

(1)           to
purchase any such primary obligation or any property constituting direct or
indirect security therefor,

 

(2)           to
advance or supply funds:

 

(A)          for
the purchase or payment of any such primary obligation, or

 

(B)           to
maintain working capital or equity capital of the primary obligor or otherwise
to maintain the net worth or solvency of the primary obligor, or

 

(3)           to
purchase property, securities or services primarily for the purpose of assuring
the owner of any such primary obligation of the ability of the primary obligor
to make payment of such primary obligation against loss in respect thereof.

 

“Corporate Trust Office” means the
principal corporate trust office of the Trustee, at which at any particular
time its corporate trust business shall be administered, which office at the
date of execution of this Indenture is located at The Bank of New York, 101
Barclay Street, 8W, New York, New York, 10286, except that with respect to
presentation of the Notes for payment or for registration of transfer or
exchange, such term shall mean the office or agency of the Trustee at which, at
any particular time, its corporate agency business shall be conducted.

 

“Covenant Defeasance” has the meaning
specified in Section 1303 of this Indenture.

 

“Credit Facilities” means, with respect to
the Company or any of its Restricted Subsidiaries, one or more debt facilities,
including the Senior Credit Facilities, or commercial paper facilities with
banks or other institutional lenders or investors or indentures providing for
revolving credit loans, term loans, receivables financing, including through
the sale of receivables to such lenders or to special purpose entities formed
to borrow from such lenders against receivables, letters of credit or other
long-term indebtedness, including any guarantees, collateral documents,
instruments and

 

11

 

agreements executed in connection therewith, and any amendments,
supplements, modifications, extensions, renewals, restatements or refundings
thereof and any indentures or credit facilities or commercial paper facilities
with banks or other institutional lenders or investors that replace, refund or
refinance any part of the loans, notes, other credit facilities or commitments
thereunder, including any such replacement, refunding or refinancing facility
or indenture that increases the amount borrowable thereunder or alters the
maturity thereof (provided that such increase in
borrowings is permitted under Section 1011).

 

“Debt to EBITDA Ratio” means, with
respect to the Company for any period, the Company’s ratio of
(1) Consolidated Total Indebtedness as of the date of calculation (the
“Debt to EBITDA Ratio Calculation Date”) to (2) EBITDA for the four full
consecutive fiscal quarters immediately preceding such Debt to EBITDA Ratio
Calculation Date for which financial information is available (the “Measurement
Period”). In the event that the Company or any Restricted Subsidiary incurs,
assumes, guarantees or redeems any Indebtedness or issues or redeems
Disqualified Stock or preferred stock or consummates any Investments,
acquisitions, dispositions or mergers or consolidations subsequent to the
commencement of the Measurement Period for which the Debt to EBITDA Ratio is
being calculated but prior to or simultaneously with the Debt to EBITDA Ratio
Calculation Date, then the Debt to EBITDA Ratio shall be calculated giving pro forma effect to such incurrence, assumption, guarantee
or redemption of Indebtedness, or issuance or redemption of Disqualified Stock
or preferred stock or Investment, acquisition, disposition, merger or
consolidation, as if the same had occurred at the beginning of the Measurement
Period.  Any computations or pro forma
calculations made pursuant to this “Debt to EBITDA Ratio” definition or
Section 1010(b)(17) shall be made in accordance with the provisions set
forth in the second and third paragraphs of the definition of “Fixed Charge
Coverage Ratio.”

 

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

 

“Defaulted Interest” has the meaning
specified in Section 306(b) of this Indenture.

 

“Depositary” means The Depository Trust Company,
its nominees and their respective successors.

 

“Designated Noncash
Consideration” means the fair market value of non-cash consideration
received by the Company or a Restricted Subsidiary in connection with an Asset
Sale that is so designated as Designated Non-cash Consideration pursuant to an
Officers’ Certificate, setting forth the basis of such valuation, executed by a
senior vice president and the principal financial officer of the Company, less
the amount of cash or Cash Equivalents received in connection with a subsequent
sale of such Designated Noncash Consideration.

 

“Designated Preferred Stock” means
preferred stock of the Company or any parent corporation thereof (in each case
other than Disqualified Stock) that is issued

 

12

 

for cash (other than to a Restricted Subsidiary) and is so designated
as Designated Preferred Stock, pursuant to an Officers’ Certificate executed by
a senior vice president and the principal financial officer of the Company or
the applicable parent corporation thereof, as the case may be, on the issuance
date thereof, the cash proceeds of which are excluded from the calculation set
forth in clause (C)(4) of the first paragraph of Section 1010.

 

“Designated Senior Indebtedness”
means

 

(1)           any
Indebtedness outstanding under the Senior Credit Facilities; and

 

(2)           any
other Senior Indebtedness permitted under this Indenture, the principal amount
of which is $25.0 million or more and that has been designated by the
Company as “Designated Senior Indebtedness.”

 

“Disqualified Stock” means, with respect
to any Person, any Capital Stock of such Person which, by its terms, or by the
terms of any security into which it is convertible or for which it is putable
or exchangeable, or upon the happening of any event, matures or is mandatorily
redeemable, other than as a result of a change of control or asset sale,
pursuant to a sinking fund obligation or otherwise, or is redeemable at the
option of the holder thereof, other than as a result of a change of control or
asset sale, in whole or in part, in each case prior to the date 91 days
after the earlier of the maturity date of the Notes or the date the Notes are
no longer outstanding; provided, however, that if such Capital Stock is
issued to any plan for the benefit of employees of the Company or its
Subsidiaries or by any such plan to such employees, such Capital Stock shall
not constitute Disqualified Stock solely because it may be required to be
repurchased by the Company or its Subsidiaries in order to satisfy applicable
statutory or regulatory obligations.

 

“Domestic Subsidiary” means, with
respect to any Person, any Restricted Subsidiary of such Person other than a
Foreign Subsidiary.

 

“EBITDA” means, with respect to any Person for any
period, the Consolidated Net Income of such Person for such period

 

(1)           increased
(without duplication) by:

 

(A)          provision
for taxes based on income or profits, plus franchise or similar taxes, of such
Person for such period deducted in computing Consolidated Net Income, plus

 

(B)           Consolidated
Interest Expense of such Person for such period to the extent the same was
deducted in calculating such Consolidated Net Income, plus

 

13

 

(C)           Consolidated
Depreciation and Amortization Expense of such Person for such period to the
extent the same were deducted in computing Consolidated Net Income, plus

 

(D)          any
expenses or charges (other than depreciation or amortization expense) related
to any Equity Offering, Permitted Investment, acquisition, disposition,
recapitalization or the incurrence of Indebtedness permitted to be incurred by
this Indenture (including a refinancing thereof) (whether or not successful),
including (i) such fees, expenses or charges related to the offering of
the Notes and the Credit Facilities and (ii) any amendment or other
modification of the Notes, and, in each case, deducted in computing
Consolidated Net Income, plus

 

(E)           the
amount of any restructuring charge deducted in such period in computing
Consolidated Net Income, including any one-time costs incurred in connection
with acquisitions after the Issue Date and costs related to the closure and/or
consolidation of facilities, plus

 

(F)           any
other non-cash charges, including any write off or write downs, reducing
Consolidated Net Income for such period, excluding any such charge that
represents an accrual or reserve for a cash expenditure for a future period,
plus

 

(G)           the
amount of any minority interest expense deducted in such period in calculating
Consolidated Net Income (less the amount of any cash dividends paid to the
holders of such minority interests), plus

 

(H)          the
amount of management, monitoring, consulting and advisory fees and related
expenses paid in such period to the Investors or any of their respective
Affiliates, plus

 

(I)            expenses
consisting of internal software development costs that are expensed during the
period but could have been capitalized under alternative accounting policies in
accordance with GAAP, plus

 

(J)            costs
of surety bonds incurred in such period in connection with financing
activities;

 

(2)           decreased
by (without duplication) non-cash items increasing Consolidated Net Income of
such Person for such period, excluding any items which represent the reversal
of any accrual of, or cash reserve for, anticipated cash charges in any prior
period; and

 

(3)           increased
or decreased by (without duplication):

 

(A)          any
net gain or loss resulting in such period from Hedging Obligations, plus or
minus, as applicable

 

14

 

(B)           without
duplication, the Historical Adjustments incurred in such period.

 

“EMU” means economic and monetary union as contemplated
in the Treaty on European Union.

 

“Equity Interests” means Capital Stock and
all warrants, options or other rights to acquire Capital Stock, but excluding
any debt security that is convertible into, or exchangeable for, Capital Stock.

 

“Equity Offering” means any public or
private sale of Common Stock or preferred stock of the Company or any of its
direct or indirect parent corporations (excluding Disqualified Stock), other
than

 

(1)           public
offerings with respect to the Company’s or any direct or indirect parent
corporations Common Stock registered on Form S-8;

 

(2)           issuances
to any Subsidiary of the Company; and

 

(3)           any
such public or private sale that constitutes an Excluded Contribution.

 

“euro” means the single currency of participating
member states of the EMU.

 

“Event of Default” has the meaning specified
in Section 501 of this Indenture.

 

“Excess Proceeds” has the meaning specified
in Section 1018 of this Indenture.

 

“Exchange Act” means the Securities Exchange
Act of 1934, as amended, and the rules and regulations of the SEC promulgated
thereunder.

 

“Exchange Notes” has the meaning specified in
the first recital of this Indenture. 
Unless the context otherwise requires, all references to the Exchange
Notes shall include 7 5/8% Senior Exchange Notes Due 2012 issued in exchange
for any Additional Notes.

 

“Exchange Offer” means the Exchange Offer as
defined in the Registration Rights Agreement.

 

“Exchange Offer Registration
Statement” means the Exchange Offer Registration Statement as defined in
the Registration Rights Agreement.

 

“Excluded Contribution” means net cash
proceeds, marketable securities or Qualified Proceeds received by the Company
from:

 

15

 

(1)           contributions
to its common equity capital, and

 

(2)           the
sale (other than to a Subsidiary of the Company or to any management equity
plan or stock option plan or any other management or employee benefit plan or
agreement of the Company) of Capital Stock (other than Disqualified Stock and
Designated Preferred Stock) of the Company,

 

in each case
designated as Excluded Contributions pursuant to an Officers’ Certificate executed
by a senior vice president and the principal financial officer of the Company
on the date such capital contributions are made or the date such Equity
Interests are sold, as the case may be, which are excluded from the calculation
set forth in clause (4)(C) of the first paragraph of Section 1010.

 

“Existing Indebtedness” means
Indebtedness of the Company or the Restricted Subsidiaries in existence on the
Issue Date, plus interest accruing thereon.

 

“Fixed Charge Coverage Ratio”
means, with respect to any Person for any period, the ratio of EBITDA of such
Person for such period to the Fixed Charges of such Person for such period. In
the event that the Company or any Restricted Subsidiary incurs, assumes,
guarantees or redeems any Indebtedness or issues or redeems Disqualified Stock
or preferred stock subsequent to the commencement of the period for which the
Fixed Charge Coverage Ratio is being calculated but prior to or simultaneously
with the event for which the calculation of the Fixed Charge Coverage Ratio is
made (the “Fixed Charge Coverage Ratio Calculation Date”), then the Fixed
Charge Coverage Ratio shall be calculated giving pro forma
effect to such incurrence, assumption, guarantee or redemption of Indebtedness,
or such issuance or redemption of Disqualified Stock or preferred stock, as if
the same had occurred at the beginning of the applicable four-quarter period.

 

For purposes
of making the computation referred to above, Investments, acquisitions,
dispositions, mergers, consolidations and disposed operations (as determined in
accordance with GAAP) that have been made by the Company or any Restricted
Subsidiary during the four-quarter reference period or subsequent to such
reference period and on or prior to or simultaneously with the Fixed Charge
Coverage Ratio Calculation Date shall be calculated on a pro forma
basis assuming that all such Investments, acquisitions, dispositions, mergers,
consolidations and disposed operations (and the change in any associated fixed
charge obligations and the change in EBITDA resulting therefrom) had occurred
on the first day of the four-quarter reference period. If since the beginning
of such period any Person (that subsequently became a Restricted Subsidiary or
was merged with or into the Company or any Restricted Subsidiary since the
beginning of such period) shall have made any Investment, acquisition,
disposition, merger, consolidation or disposed operation that would have
required adjustment pursuant to this definition, then the Fixed Charge Coverage
Ratio shall be calculated giving pro forma
effect thereto for such period as if such Investment, acquisition, disposition,
merger, consolidation or disposed operation had occurred at the beginning of
the applicable four-quarter period.

 

16

For purposes
of this definition, whenever pro forma
effect is to be given to a transaction, the pro forma
calculations shall be made in good faith by a responsible financial or
accounting officer of the Company. If any Indebtedness bears a floating rate of
interest and is being given pro forma
effect, the interest on such Indebtedness shall be calculated as if the rate in
effect on the Fixed Charge Coverage Ratio Calculation Date had been the
applicable rate for the entire period (taking into account any Hedging
Obligations applicable to such Indebtedness). Interest on a Capitalized Lease
Obligation shall be deemed to accrue at an interest rate reasonably determined
by a responsible financial or accounting officer of the Company to be the rate
of interest implicit in such Capitalized Lease Obligation in accordance with
GAAP. For purposes of making the computation referred to above, interest on any
Indebtedness under a revolving credit facility computed on a pro forma basis shall be computed based upon the average
daily balance of such Indebtedness during the applicable period. Interest on
Indebtedness that may optionally be determined at an interest rate based upon a
factor of a prime or similar rate, a eurocurrency interbank offered rate, or
other rate, shall be deemed to have been based upon the rate actually chosen,
or, if none, then based upon such optional rate chosen as the Company may
designate.

 

“Fixed Charges” means, with respect to any Person for any
period, the sum of

 

(1)           Consolidated
Interest Expense of such Person for such period,

 

(2)           all
cash dividend payments (excluding items eliminated in consolidation) on any
series of preferred stock (including any Designated Preferred Stock) or any
Refunding Capital Stock of such Person made during such period, and

 

(3)           all
cash dividend payments (excluding items eliminated in consolidation) on any
series of Disqualified Stock made during such period.

 

“Foreign Subsidiary” means, with respect to any
Person, any Restricted Subsidiary of such Person that is not organized or
existing under the laws of the United States, any state thereof, the District
of Columbia, or any territory thereof.

 

“Funding Guarantor” has the meaning specified in
Section 1206 of this Indenture.

 

“GAAP”
means generally accepted accounting principles in the United States which are
in effect on the Issue Date.

 

“Government Securities” means securities that are:

 

(1)           direct
obligations of the United States of America for the timely payment of which its
full faith and credit is pledged, or

 

(2)           obligations
of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America the timely payment

 

17

 

of which is
unconditionally guaranteed as a full faith and credit obligation by the United
States of America,

 

which, in
either case, are not callable or redeemable at the option of the issuers
thereof, and shall also include a depository receipt issued by a bank (as
defined in Section 3(a)(2) of the Securities Act), as custodian with
respect to any such Government Securities or a specific payment of principal of
or interest on any such Government Securities held by such custodian for the
account of the holder of such depository receipt; provided that (except as required by law) such custodian is
not authorized to make any deduction from the amount payable to the holder of
such depository receipt from any amount received by the custodian in respect of
the Government Securities or the specific payment of principal of or interest
on the Government Securities evidenced by such depository receipt.

 

“guarantee” means a guarantee (other than by endorsement of
negotiable instruments for collection in the ordinary course of business),
direct or indirect, in any manner (including letters of credit and
reimbursement agreements in respect thereof), of all or any part of any
Indebtedness or other obligations.

 

“Guarantee” means the guarantee by any Guarantor of the Company’s
Obligations under this Indenture.

 

“Guarantors” means all Restricted Subsidiaries that are
Domestic Subsidiaries and guarantee the Senior Credit Facilities as of the
Issue Date and any other Subsidiary of the Company that executes a supplemental
indenture to this Indenture providing for a guarantee of payment of the Notes.

 

“Hedging Obligations”
means, with respect to any Person, the obligations of such Person under any
interest rate swap agreement, interest rate cap agreement, interest rate collar
agreement, commodity swap agreement, commodity cap agreement, commodity collar
agreement, foreign exchange contract, currency swap agreement or similar
agreement providing for the transfer or mitigation of interest rate or currency
risks either generally or under specific contingencies.

 

“Historical Adjustments” means with respect to
any Person, without duplication, the following items to the extent incurred
prior to the Issue Date and, in each case, during the applicable period:

 

(1)           fees
for management advisory services paid
by the Company or any of its Restricted Subsidiaries to DLJ Merchant Banking
Partners III, L.P. and DLJ Merchant Banking Partners II, L.P. or any of their
respective financial services Affiliates;

 

(2)           adjustments
in any line item in such Person’s consolidated financial statements required or
permitted by the Financial Accounting Standards Board Statement Nos. 141
and 142 resulting from the application of purchase accounting in relation to
the Jostens Acquisition, the Color Prelude Acquisition and the Lehigh Press
Acquisition;

 

18

 

(3)           gains
(losses) from the early extinguishment of Indebtedness;

 

(4)           transaction
expenses incurred in connection with the Jostens Acquisition, the merger and
recapitalization of Jostens in 2000 and the Lehigh Press Acquisition;

 

(5)           the
cumulative effect of a change in accounting principles;

 

(6)           gains
(losses), net of tax, from disposed or discontinued operations, including the
discontinuance of Jostens’ Recognition business;

 

(7)           non-cash
adjustments to LIFO reserves;

 

(8)           gains
(losses) attributable to the disposition of fixed assets; and

 

(9)           other
costs consisting of (i) one-time restructuring charges, (ii) one-time
severance costs in connection with former employees, (iii) debt financing
costs, (iv) unusual litigation expenses, (v) fees and expenses
related to acquisitions and (vi) consulting services in connection with
acquisitions.

 

“Holdco” means Jostens Holding Corp.

 

“Holder” means a holder of the Notes.

 

“incur” has the meaning specified in Section 1011 of this
Indenture.

 

“incurrence” has the meaning specified in Section 1011 of
this Indenture.

 

“Indebtedness” means, with respect to any Person,

 

(1)           any
indebtedness (including principal and premium) of such Person, whether or not
contingent:

 

(A)          in
respect of borrowed money;

 

(B)           evidenced
by bonds, notes, debentures or similar instruments or letters of credit or
bankers’ acceptances (or, without double counting, reimbursement agreements in
respect thereof);

 

(C)           representing
the balance deferred and unpaid of the purchase price of any property
(including Capitalized Lease Obligations), except any such balance that
constitutes a trade payable or similar obligation to a trade creditor, in each
case accrued in the ordinary course of business; or

 

(D)          representing
any Hedging Obligations,

 

19

 

if and to the
extent that any of the foregoing Indebtedness (other than letters of credit and
Hedging Obligations) would appear as a liability upon a balance sheet (excluding
the footnotes thereto) of such Person prepared in accordance with GAAP;

 

(2)           to
the extent not otherwise included, any obligation by such Person to be liable
for, or to pay, as obligor, guarantor or otherwise, on the obligations of the
type referred to in clause (1) of another Person (whether or not such
items would appear upon the balance sheet of the such obligor or guarantor),
other than by endorsement of negotiable instruments for collection in the
ordinary course of business; and

 

(3)           to
the extent not otherwise included, the obligations of the type referred to in
clause (1) of another Person secured by a Lien on any asset owned by such
Person, whether or not such Indebtedness is assumed by such Person;

 

provided, however,
that notwithstanding the foregoing, Indebtedness shall be deemed not to include
(A) Contingent Obligations incurred in the ordinary course of business; or (B) obligations under or in respect of
Receivables Facilities or (C) leases of precious metals used in the
ordinary course of business of the Company and its Restricted Subsidiaries,
whether or not accounted for as operating leases under GAAP.

 

“Indenture” means this instrument as originally executed and
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,
including, for all purposes of this Indenture and any such supplemental
indenture, the provisions of the Trust Indenture Act that are deemed to be part
of and govern this instrument and any such supplemental indenture,
respectively.

 

“Independent Financial Advisor” means an
accounting, appraisal, investment banking firm or consultant to Persons engaged
in Similar Businesses of nationally recognized standing that is, in the good
faith judgment of the Company, qualified to perform the task for which it has
been engaged.

 

“Initial Notes” has the meaning stated in the first
recital of this Indenture.

 

“Initial Purchasers” means Credit Suisse First Boston
LLC, Deutsche Bank Securities Inc., Banc of America Securities LLC, Calyon
Securities (USA) Inc., CIT Capital Securities LLC, Greenwich Capital Markets,
Inc., ING Financial Markets LLC and NatCity Investments, Inc.

 

“Interest Payment Date” means the Stated Maturity
of an installment of interest on the Notes.

 

“Investment Grade Rating” means a rating equal to
or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent)
by S&P, or an equivalent rating by any other Rating Agency.

 

“Investment Grade Securities” means:

 

20

 

(1)           securities
issued or directly and fully guaranteed or insured by the United States
government or any agency or instrumentality thereof (other than Cash
Equivalents),

 

(2)           debt
securities or debt instruments with a rating of BBB- or higher by S&P or
Baa3 or higher by Moody’s or the equivalent of such rating by such rating
organization, or, if no rating of S&P or Moody’s then exists, the
equivalent of such rating by any other nationally recognized securities rating
agency, but excluding any debt securities or instruments constituting loans or
advances among the Company and its Subsidiaries,

 

(3)           investments
in any fund that invests exclusively in investments of the type described in
clauses (1) and (2) above, which fund may also hold immaterial
amounts of cash pending investment or distribution, and

 

(4)           corresponding
instruments in countries other than the United States customarily utilized for
high quality investments.

 

“Investments” means, with respect to any Person, all
investments by such Person in other Persons (including Affiliates) in the form
of loans (including guarantees), advances or capital contributions (excluding
accounts receivable, trade credit, advances to customers, commission, travel and
similar advances to officers and employees, in each case made in the ordinary
course of business), purchases or other acquisitions for consideration of
Indebtedness, Equity Interests or other securities issued by any other Person
and investments that are required by GAAP to be classified on the balance sheet
(excluding the footnotes) of the Company in the same manner as the other
investments included in this definition to the extent such transactions involve
the transfer of cash or other property. For purposes of the definition of “Unrestricted
Subsidiary” and Section 1010,

 

(1)           “Investments”
shall include the portion (proportionate to the Company’s equity interest in
such Subsidiary) of the fair market value of the net assets of a Subsidiary of
the Company at the time that such Subsidiary is designated an Unrestricted
Subsidiary; provided, however, that upon a redesignation of such
Subsidiary as a Restricted Subsidiary, the Company shall be deemed to continue
to have a permanent “Investment” in an Unrestricted Subsidiary in an amount (if
positive) equal to:

 

(A)          the
Company’s “Investment” in such Subsidiary at the time of such redesignation
less

 

(B)           the
portion (proportionate to the Company’s equity interest in such Subsidiary) of
the fair market value of the net assets of such Subsidiary at the time of such
redesignation; and

 

(2)           any
property transferred to or from an Unrestricted Subsidiary shall be valued at
its fair market value at the time of such transfer, in each case as determined
in good faith by the Board of Directors of the Company.

 

21

 

“Investors” means Kohlberg Kravis Roberts & Co. L.P.
and DLJ Merchant Banking Partners III, L.P. and their respective
Affiliates.

 

“Issue Date” means October 4, 2004.

 

“Jostens Acquisition” means the acquisition of
Jostens by affiliates of DLJ Merchant Banking Partners III, L.P. on
July 29, 2003.

 

“Legal Defeasance” has the meaning specified in Section
1302 of this Indenture.

 

“Legal Holiday” means a Saturday, a Sunday or a day on
which banking institutions are not required to be open in the State of New
York.

 

“Lehigh Press Acquisition” means the acquisition
of Lehigh Press, Inc. by a subsidiary of Von Hoffmann Holdings Inc.
on October 22, 2003.

 

“Lien”
means, with respect to any asset, any mortgage, lien, pledge, charge, security
interest or encumbrance of any kind in respect of such asset, whether or not
filed, recorded or otherwise perfected under applicable law, including any
conditional sale or other title retention agreement, any lease in the nature
thereof, any option or other agreement to sell or give a security interest in
and any filing of or agreement to give any financing statement under the
Uniform Commercial Code (or equivalent statutes) of any jurisdiction; provided that in no event shall an
operating lease be deemed to constitute a Lien.

 

“Letter of Transmittal”
means the letter of transmittal to be prepared by the Company and sent to all
Holders of the Notes for use by such Holders in connection with the Exchange
Offer.

 

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

 

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

 

“Net Income” means, with respect to any Person, the net
income (loss) of such Person, determined in accordance with GAAP and before any
reduction in respect of preferred stock dividends.

 

“Net Proceeds” means the aggregate cash proceeds received
by the Company or any Restricted Subsidiary in respect of any Asset Sale,
including any cash received upon the sale or other disposition of any
Designated Noncash Consideration received in any Asset Sale, net of the direct
costs relating to such Asset Sale and the sale or disposition of such
Designated Noncash Consideration, including legal, accounting and investment
banking fees, and brokerage and sales commissions, any relocation

 

22

 

expenses incurred as a result
thereof, taxes paid or payable as a result thereof (after taking into account
any available tax credits or deductions and any tax sharing arrangements),
amounts required to be applied to the repayment of principal, premium, if any,
and interest on Senior Indebtedness or Senior Subordinated Indebtedness
required (other than required by Section 1018(b)(1)) to be paid as a result of
such transaction and any deduction of appropriate amounts to be provided by the
Company as a reserve in accordance with GAAP against any liabilities associated
with the asset disposed of in such transaction and retained by the Company after
such sale or other disposition thereof, including, pension and other
post-employment benefit liabilities and liabilities related to environmental
matters or against any indemnification obligations associated with such
transaction.

 

“Non-U.S. Person”
means a Person who is not a U.S. Person.

 

“Note Register” and “Note Registrar” have the respective
meanings specified in Section 304.

 

“Notes” has the meaning stated in the first recital of this
Indenture and more particularly means any Notes authenticated and delivered
under this Indenture.  The Initial Notes
and the Additional Notes shall be treated as a single class for all purposes of
this Indenture, and unless the context otherwise requires, all references to
the Notes shall include the Initial Notes, any Additional Notes and the
Exchange Notes issued in exchange for the Initial Notes and any Additional
Notes.

 

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

 

“Offering Circular” means the Offering Circular dated
September 23, 2004 relating to the Notes.

 

“Officer” means the Chairman of the Board of Directors, the
Chief Executive Officer, the President, any Executive Vice President, Senior
Vice President or Vice President, the Treasurer or the Secretary of the
Company.

 

“Officers’ Certificate” means a certificate signed
on behalf of the Company by two Officers of the Company, one of whom must be
the principal executive officer, the principal financial officer, the
treasurer, or the principal accounting officer of the Company, that meets the
requirements set forth in this Indenture.

 

“Opinion of Counsel” means a
written opinion from legal counsel. The counsel may be an employee of or
counsel to the Company.

 

23

 

“Outstanding”, when used with respect to Notes, means, as
of the date of determination, all Notes theretofore authenticated and delivered
under this Indenture, except:

 

(1)           Notes
theretofore cancelled by the Trustee or delivered to the Trustee for
cancellation;

 

(2)           Notes,
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 Notes; provided that, if such Notes are to be
redeemed, notice of such redemption has been duly given pursuant to this Indenture
or provision therefor satisfactory to the Trustee has been made;

 

(3)           Notes,
except to the extent provided in Sections 1302 and 1303, with respect to
which the Company has effected Legal Defeasance or Covenant Defeasance as
provided in Article Thirteen; and

 

(4)           Notes
which have been paid pursuant to Section 305 or in exchange for or in lieu
of which other Notes have been authenticated and delivered pursuant to this
Indenture, other than any such Notes in respect of which there shall have been
presented to the Trustee proof satisfactory to it that such Notes are held by a
Protected Purchaser in whose hands the Notes are valid obligations of the
Company;

 

provided, however, that in determining whether
the Holders of the requisite principal amount of Outstanding Notes have given
any request, demand, authorization, direction, consent, notice or waiver
hereunder, and for the purpose of making the calculations required by TIA
Section 313, Notes owned by the Company or any other obligor upon the Notes
or any Affiliate of the Company or such other obligor shall be disregarded and
deemed not to be Outstanding, except that, in determining whether the Trustee
shall be protected in making such calculation or in relying upon any such
request, demand, authorization, direction, notice, consent or waiver, only
Notes which a Responsible Officer of the Trustee actually knows to be so owned
shall be so disregarded.

 

“pay the Notes” has the meaning specified in
Section 1403 of this Indenture.

 

“Paying Agent” means any Person (including the Company
acting as Paying Agent) authorized by the Company to pay the principal of (and
premium, if any) or interest on any Notes on behalf of the Company.

 

“Payment Blockage Period” has the meaning
specified in Section 1403 of this Indenture.

 

“Payment Default” has the meaning specified in
Section 1403 of this Indenture.

 

24

 

“Permitted Asset Swap” means the concurrent purchase
and sale or exchange of Related Business Assets or a combination of Related
Business Assets and cash or Cash Equivalents between the Company or any of its
Restricted Subsidiaries and another Person; provided,
that any cash or Cash Equivalents received must be applied in accordance with
Section 1018.

 

“Permitted Holders” means each of the Investors and
their respective Affiliates and members of management of the Company who are
shareholders of the Company on the Issue Date and any group (within the meaning
of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act or any
successor provision) of which any of the foregoing are members; provided, that, in the case of such group and without giving
effect to the existence of such group or any other group, such Investors,
Affiliates and members of management, collectively, have beneficial ownership
of more than 50% of the total voting power of the Voting Stock of the Company
or any of its direct or indirect parent entities.

 

“Permitted Investments”means:

 

(1)           any
Investment in the Company or any Restricted
Subsidiary;

 

(2)           any
Investment in cash and Cash Equivalents or Investment Grade Securities;

 

(3)           any
Investment by the Company or any Restricted Subsidiary of the Company in a
Person that is engaged in a Similar Business if as a result of such Investment

 

(A)          such
Person becomes a Restricted Subsidiary, or

 

(B)           such
Person, in one transaction or a series of related transactions, is merged,
consolidated or amalgamated with or into, or transfers or conveys substantially
all of its assets to, or is liquidated into, the Company or a Restricted
Subsidiary;

 

(4)           any
Investment in securities or other assets not constituting cash or Cash
Equivalents and received in connection with an Asset Sale made pursuant to
Section 1018, or any other disposition of assets not constituting an Asset
Sale;

 

(5)           any
Investment existing on the Issue Date;

 

(6)           any
Investment acquired by the Company or any Restricted Subsidiary

 

(A)          in
exchange for any other Investment or accounts receivable held by the Company or
any such Restricted Subsidiary in connection with or as a result of a
bankruptcy, workout, reorganization or recapitalization of the Company of such
other Investment or accounts receivable, or

 

25

 

(B)           as
a result of a foreclosure by the Company or any Restricted Subsidiary with
respect to any secured Investment or other transfer of title with respect to
any secured Investment in default;

 

(7)           Hedging
Obligations permitted under Section 1011(b)(10);

 

(8)           any
Investment in a Similar Business having an aggregate fair market value, taken
together with all other Investments made pursuant to this clause (8) that
are at that time outstanding (without giving effect to the sale of an
Unrestricted Subsidiary to the extent the proceeds of such sale do not consist
of cash or marketable securities), not to exceed the greater of
(A) $150.0 million and (B) 6.50% of Total Assets at the time of
such Investment (with the fair market value of each Investment being measured
at the time made and without giving effect to subsequent changes in value);

 

(9)           Investments
the payment for which consists of Equity Interests of the Company, or any of
its direct or indirect parent entities (exclusive of Disqualified Stock); provided, however, that such Equity
Interests shall not increase the amount available for Restricted Payments under
clause (C) of the first paragraph of Section 1010;

 

(10)         guarantees
of Indebtedness permitted under Section 1011;

 

(11)         any
transaction to the extent it constitutes an investment that is permitted and
made in accordance with Section 1013(b) (except transactions described in
Section 1013(b)(2), (5) and (9));

 

(12)         Investments
consisting of purchases and acquisitions of inventory, supplies, material or
equipment;

 

(13)         additional
Investments having an aggregate fair market value, taken together with all
other Investments made pursuant to this clause (13) that are at that time
outstanding (without giving effect to the sale of an Unrestricted Subsidiary to
the extent the proceeds of such sale do not consist of cash or marketable
securities), not to exceed the greater of (A) $50.0 million and
(B) 2.5% of Total Assets at the time of such Investment (with the fair
market value of each Investment being measured at the time made and without giving
effect to subsequent changes in value);

 

(14)         Investments
relating to any special purpose Wholly-Owned Subsidiary of the Company
organized in connection with a Receivables Facility that, in the good faith
determination of the Board of Directors of the Company, are necessary or
advisable to effect such Receivables Facility;

 

(15)         advances
to employees not in excess of $15.0 million outstanding at any one time,
in the aggregate;  and

 

26

 

(16)         loans
and advances to officers, directors and employees for business-related
travel expenses, moving expenses and other similar expenses, in each case
incurred in the ordinary course of business.

 

“Permitted Junior Securities” means:

 

(1)           Equity
Interests in the Company, any Guarantor or any direct or indirect parent of the
Company; or

 

(2)           unsecured
debt securities that are subordinated to all Senior Indebtedness (and any debt
securities issued in exchange for Senior Indebtedness) to substantially the
same extent as, or to a greater extent than, the Notes and the Guarantees are
subordinated to Senior Indebtedness under this Indenture;

 

provided
that the term “Permitted Junior Securities” shall not include any securities
distributed pursuant to a plan of reorganization if the Indebtedness under the
Senior Credit Facilities is treated as part of the same class as the notes for
purposes of such plan of reorganization.

 

“Permitted Liens” means, with respect to any Person:

 

(1)           pledges
or deposits by such Person under workmen’s compensation laws, unemployment
insurance laws or similar legislation, or good faith deposits in connection
with bids, tenders, contracts (other than for the payment of Indebtedness) or
leases to which such Person is a party, or deposits to secure public or
statutory obligations of such Person or deposits of cash or U.S. government
bonds to secure surety or appeal bonds to which such Person is a party, or
deposits as security for contested taxes or import duties or for the payment of
rent, in each case incurred in the ordinary course of business;

 

(2)           Liens
imposed by law, such as carriers’, warehousemen’s and mechanics’ Liens, in each
case for sums not yet due or being contested in good faith by appropriate
proceedings or other Liens arising out of judgments or awards against such
Person with respect to which such Person shall then be proceeding with an
appeal or other proceedings for review;

 

(3)           Liens
for taxes, assessments or other governmental charges not yet due or payable or
subject to penalties for nonpayment or which are being contested in good faith
by appropriate proceedings;

 

(4)           Liens
in favor of issuers of performance and surety bonds or bid bonds or with
respect to other regulatory requirements or letters of credit issued pursuant
to the request of and for the account of such Person in the ordinary course of
its business;

 

(5)           minor
survey exceptions, minor encumbrances, easements or reservations of, or rights
of others for, licenses, rights-of-way, sewers, electric lines, telegraph and
telephone lines and other similar purposes, or zoning or other

 

27

 

restrictions
as to the use of real properties or Liens incidental, to the conduct of the
business of such Person or to the ownership of its properties which were not
incurred in connection with Indebtedness and which do not in the aggregate
materially adversely affect the value of said properties or materially impair
their use in the operation of the business of such Person;

 

(6)           Liens
securing Indebtedness permitted to be incurred pursuant to Section 1011(b)(4)
or (12);

 

(7)           Liens
existing on the Issue Date;

 

(8)           Liens
on property or shares of stock of a Person at the time such Person becomes a
Subsidiary; provided, however,
such Liens are not created or incurred in connection with, or in contemplation
of, such other Person becoming such a subsidiary; provided, further, however, that such Liens
may not extend to any other property owned by the Company or any Restricted
Subsidiary;

 

(9)           Liens
on property at the time the Company or a Restricted Subsidiary acquired the
property, including any acquisition by means of a merger or consolidation with
or into the Company or any Restricted Subsidiary; provided, however, that such Liens are not
created or incurred in connection with, or in contemplation of, such
acquisition; provided, further, however, that such Liens may not extend to any other property owned
by the Company or any Restricted Subsidiary;

 

(10)         Liens
securing Indebtedness or other obligations of a Restricted Subsidiary owing to
the Company or another Restricted Subsidiary permitted to be incurred in
accordance with Section 1011 hereof;

 

(11)         Liens
securing Hedging Obligations so long as the related Indebtedness is, and is
permitted under this Indenture to be, secured by a Lien on the same property
securing such Hedging Obligations;

 

(12)         Liens
on specific items of inventory of other goods and proceeds of any Person
securing such Person’s obligations in respect of bankers’ acceptances issued or
created for the account of such Person to facilitate the purchase, shipment or
storage of such inventory or other goods;

 

(13)         leases
and subleases of real property which do not materially interfere with the
ordinary conduct of the business of the Company or any of the Restricted
Subsidiaries;

 

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

 

(15)         Liens
in favor of the Company or any Guarantor;

 

28

 

(16)         Liens
on equipment of the Company or any Restricted Subsidiary granted in the
ordinary course of business to the Company’s client at which such equipment is
located;

 

(17)         Liens
on accounts receivable and related assets incurred in connection with a
Receivables Facility;

 

(18)         Liens
to secure any refinancing, refunding, extension, renewal or replacement (or
successive refinancing, refunding, extensions, renewals or replacements) as a whole,
or in part, of any Indebtedness secured by any Lien referred to in the
foregoing clauses (6), (7), (8), (9), (10), (11) and (15); provided, however, that
(A) such new Lien shall be limited to all or part of the same property
that secured the original Lien (plus improvements on such property), and
(B) the Indebtedness secured by such Lien at such time is not increased to
any amount greater than the sum of (i) the outstanding principal amount
or, if greater, committed amount of the Indebtedness described under clauses
(6), (7), (8), (9), (10), (11) and (15) at the time the original Lien
became a Permitted Lien under this Indenture, and (ii) an amount necessary
to pay any fees and expenses, including premiums, related to such refinancing,
refunding, extension, renewal or replacement;

 

(19)         deposits
made in the ordinary course of business to secure liability to insurance
carriers; and

 

(20)         other
Liens securing obligations incurred in the ordinary course of business which
obligations do to exceed $25.0 million at any one time outstanding.

 

For purposes of this definition, the term “Indebtedness” shall be
deemed to include interest on such Indebtedness.

 

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

 

“Predecessor Note” of any particular Note means every
previous Note evidencing all or a portion of the same debt as that evidenced by
such particular Note; and, for the purposes of this definition, any Note
authenticated and delivered under Section 305 in exchange for a mutilated
Note or in lieu of a lost, destroyed or stolen Note shall be deemed to evidence
the same debt as the mutilated, lost, destroyed or stolen Note.

 

“preferred stock” means any Equity Interest with
preferential rights of payment of dividends or upon liquidation, dissolution,
or winding up.

 

“Protected Purchaser” has the meaning specified in
Section 305 of this Indenture.

 

29

 

“Qualified Proceeds” means assets that are used or
useful in, or Capital Stock of any Person engaged in, a Similar Business; provided that the fair market value of any
such assets or Capital Stock shall be determined by the Board of Directors of
the Company in good faith.

 

“Rating Agencies” mean Moody’s and S&P or if Moody’s
or S&P or both shall not make a rating on the notes publicly available, a
nationally recognized statistical rating agency or agencies, as the case may
be, selected by the Company (as certified by a Board Resolution) which shall be
substituted for Moody’s or S&P or both, as the case may be.

 

“Receivables Facility” means one or more
receivables financing facilities, as amended from time to time, the
Indebtedness of which is non-recourse (except for standard representations,
warranties, covenants and indemnities made in connection with such facilities)
to the Company and the Restricted Subsidiaries pursuant to which the Company or
any of its Restricted Subsidiaries sells its accounts receivable to a Person
that is not a Restricted Subsidiary.

 

“Receivables Fees” means distributions or payments made
directly or by means of discounts with respect to any participation interest
issued or sold in connection with, and other fees paid to a Person that is not
a Restricted Subsidiary in connection with, any Receivables Facility.

 

“Redemption Date”, when used with respect to any Note to
be redeemed, in whole or in part, means the date fixed for such redemption by
or pursuant to this Indenture.

 

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

 

“Refinancing Indebtedness” has the meaning
specified in Section 1011 of this Indenture.

 

“Refunding Capital Stock” has the meaning
specified in Section 1010 of this Indenture.

 

“Registration Rights Agreement” means the
Exchange and Registration Rights Agreement dated as of the Issue Date, among
the Company, the Guarantors and the Initial Purchasers and, with respect to any
Additional Notes, one or more registration rights agreements among the Company,
the Guarantors and the other parties thereto, as such agreement(s) may be
amended, modified or supplemented from time to time, relating to rights given
by the Company to the purchasers of Additional Notes to register such
Additional Notes under the Securities Act.

 

“Regular Record Date” has the meaning specified in
Section 301 of this Indenture.

 

30

 

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

 

“Representative” means any trustee, agent or
representative (if any) for an issue of Senior Indebtedness of the Company.

 

“Responsible Officer”, when used with respect to the
Trustee, means any vice president, any assistant treasurer, any trust officer
or assistant trust officer, or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above-designated
officers, and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of his knowledge of
and familiarity with the particular subject and who shall have direct
responsibility for the administration of this Indenture.

 

“Restricted Investment” means an Investment other than
a Permitted Investment.

 

“Restricted Payments” has the meaning specified in
Section 1010 of this Indenture.

 

“Restricted Subsidiary” means, at any time, any
direct or indirect Subsidiary of the Company (including any Foreign Subsidiary)
that is not then an Unrestricted Subsidiary; provided,
however, that upon the occurrence
of an Unrestricted Subsidiary ceasing to be an Unrestricted Subsidiary, such
Subsidiary shall be included in the definition of “Restricted Subsidiary”.

 

“Retired Capital Stock” has the meaning specified
in Section 1010 of this Indenture.

 

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

 

“Sale and Lease-Back Transaction” means any
arrangement with any Person providing for the leasing by the Company or any
Restricted Subsidiary of any real or tangible personal property, which property
has been or is to be sold or transferred by the Company or such Restricted
Subsidiary to such Person in contemplation of such leasing.

 

“SEC”
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
Indenture 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.

 

“Secondary Holdings” means Jostens Secondary Holdings
Corp.

 

31

 

“Secured Indebtedness” means any indebtedness of
the Company secured by a Lien.

 

“Securities Act” means the Securities Act of 1933 and the
rules and regulations of the SEC promulgated thereunder.

 

“Senior Credit Facilities” means the Credit
Agreement, to be entered into as of the Issue Date by and among the Company,
Secondary Holdings, the lenders party thereto in their capacities as lenders
thereunder, Credit Suisse First Boston, as Administrative Agent, and Credit
Suisse First Boston Toronto Branch, as Canadian Administrative Agent, including
any guarantees, collateral documents, instruments and agreements executed in
connection therewith, and any amendments, supplements, modifications,
extensions, renewals, restatements, refundings or refinancings thereof and any
indentures or credit facilities or commercial paper facilities with banks or
other institutional lenders or investors that replace, refund or refinance any
part of the loans, notes, other credit facilities or commitments thereunder,
including any such replacement, refunding or refinancing facility or indenture
that increases the amount borrowable thereunder or alters the maturity thereof
(provided that such increase in
borrowings is permitted under Section 1011).

 

“Senior Discount Indenture” means the indenture
dated as of December 2, 2003, among Holdco as Issuer and BNY Midwest Trust
Company, as Trustee.

 

“Senior Discount Notes” means the $247,200,000
principal amount at maturity of 10 1/4% senior discount notes due 2013 issued
by Holdco pursuant to the Senior Discount Indenture and outstanding as of the
Issue Date.

 

“Senior Indebtedness” means

 

(A)          all
Indebtedness of the Company or any Guarantor outstanding under the Senior
Credit Facilities (including interest accruing on or after the filing of any
petition in bankruptcy or for reorganization of the Company or any Guarantor,
regardless of whether or not a claim for post-filing interest is allowed in
such proceedings);

 

(B)           all
Hedging Obligations (and guarantees thereof) with respect to the Senior Credit
Facilities, provided that such Hedging Obligations are permitted to be incurred
under the terms of this Indenture;

 

(C)           any
other Indebtedness of the Company or any Guarantor permitted to be incurred
under the terms of this Indenture, unless the instrument under which such
Indebtedness is incurred expressly provides that it is on a parity with or
subordinated in right of payment to the Notes or any Guarantee; and

 

(D)          all
Obligations with respect to the items listed in the preceding clauses (a),
(b) and (c);

 

32

 

provided,
however, that Senior Indebtedness shall not include:

 

(1)           any
obligation of such Person to the Company or any Subsidiary of the Company;

 

(2)           any
liability for federal, state, local or other taxes owed or owing by such
Person;

 

(3)           any
accounts payable or other liability to trade creditors arising in the ordinary
course of business;

 

(4)           any
Indebtedness or other Obligation of such Person which is subordinate or junior
in any respect to any other Indebtedness or other Obligation of such Person; or

 

(5)           that
portion of any Indebtedness which at the time of incurrence is incurred in
violation of this Indenture.

 

“Senior
Subordinated Indebtedness” means

 

(A)          with
respect to the Company, Indebtedness which ranks equal in right of payment to
the Notes, and

 

(B)           with
respect to any Guarantor, Indebtedness which ranks equal in right of payment to
the Guarantee of such Guarantor.

 

“Shelf Registration Statement” means the
shelf registration statement as defined in the Registration Rights Agreement.

 

“Significant Subsidiary” means any Restricted
Subsidiary that would be a “significant subsidiary” as defined in
Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to
the Securities Act, as such regulation is in effect on the Issue Date.

 

“Similar Business” means any business conducted or
proposed to be conducted by the Company and its Restricted Subsidiaries on the
Issue Date or any business that is similar, reasonably related, incidental or
ancillary thereto.

 

“Special Interest” means all liquidated damages then
owing pursuant to the Registration Rights Agreement.

 

“Special Interest Notice” has the meaning
specified in Section 1019 hereof.

 

“Special Record Date” for the payment of any
Defaulted Interest means a date fixed by the Trustee pursuant to
Section 306.

 

33

 

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

 

“Subordinated Indebtedness” means:

 

(1)           with
respect to the Company, any Indebtedness of the Company which is by its terms
subordinated in right of payment to the Notes, and

 

(2)           with
respect to any Guarantor, any Indebtedness of such Guarantor which is by its
terms subordinated in right of payment to the Guarantee of such Guarantor.

 

“Subsidiary” means, with respect to any Person,

 

(1)           any
corporation, association, or other business entity (other than a partnership,
joint venture, limited liability company or similar 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 of determination 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, joint venture, limited liability company or similar entity of
which:

 

(A)          more
than 50% of the capital accounts, distribution rights, total equity and voting
interests or general or limited partnership interests, as applicable, are owned
or controlled, directly or indirectly, by such Person or one or more of the
other Subsidiaries of that Person or a combination thereof whether in the form
of membership, general, special or limited partnership or otherwise, and

 

(B)           such
Person or any Restricted Subsidiary of such Person is a controlling general
partner or otherwise controls such entity.

 

“Successor Company” has the meaning specified in Section
801 of this Indenture.

 

“Successor Person” has the meaning specified in Section
802 of this Indenture.

 

“Total Assets” means the total assets of the Company and
the Restricted Subsidiaries, as shown on the most recent balance sheet of the
Company.

 

“Transaction Agreements” means the (1) the
agreement and plan of merger dated as of July 21, 2004, among Fusion
Acquisition LLC, VHH Merger, Inc. and

 

34

 

Von Hoffmann
Holdings Inc.; (2) the agreement and plan of merger dated as of
July 21, 2004, among Fusion Acquisition Corp., AHI Merger, Inc. and
AHC I Acquisition Corp. and (3) the Contribution Agreement dated as of
July 21, 2004, among Jostens Holding Corp. and Fusion Acquisition LLC, in
each case as the same may be amended prior to the Issue Date.

 

“Transactions” means the transactions contemplated by the
Transaction Agreements, the Notes offered by the Offering Circular and the
Senior Credit Facilities as in effect on the Issue Date.

 

“Treasury Rate” means, as of any redemption date, the
yield to maturity as of such redemption date of United States Treasury
securities with a constant maturity (as compiled and published in the most
recent Federal Reserve Statistical Release H.15 (519) that has become
publicly available at least two business days prior to the redemption date (or,
if such Statistical Release is no longer published, any publicly available
source of similar market data)) most nearly equal to the period from the
redemption date to October 1, 2008; provided,
however, that if the period from the redemption date to October 1,
2008, is less than one year, the weekly average yield on actually traded United
States Treasury securities adjusted to a constant maturity of one year shall be
used.

 

“Trust Indenture Act” or “TIA” means the Trust
Indenture Act of 1939 as in force at the date as of which this Indenture was
executed, except as provided in Section 905.

 

“Trustee” means The Bank of New York, a New York banking
corporation, until a successor replaces it and, thereafter, means the
successor.

 

“Uniform Commercial Code” means the New York
Uniform Commercial Code as in effect from time to time.

 

“Unrestricted Subsidiary” means:

 

(1)           any
Subsidiary of the Company which at the time of determination is an Unrestricted
Subsidiary (as designated by the Board of Directors of the Company, as provided
below), and

 

(2)           any
Subsidiary of an Unrestricted Subsidiary.

 

The Board of
Directors of the Company may designate any Subsidiary of the Company (including
any existing Subsidiary and any newly acquired or newly formed Subsidiary) to
be an Unrestricted Subsidiary unless such Subsidiary or any of its Subsidiaries
owns any Equity Interests or Indebtedness of, or owns or holds any Lien on, any
property of, the Company or any Subsidiary of the Company (other than any
Subsidiary of the Subsidiary to be so designated), provided that

 

(1)           any
Unrestricted Subsidiary must be an entity of which shares of the Capital Stock
or other equity interests (including partnership interests) entitled

 

35

 

to cast at
least a majority of the votes that may be cast by all shares or equity
interests having ordinary voting power for the election of directors or other
governing body are owned, directly or indirectly, by the Company,

 

(2)           such
designation complies with Section 1010, and

 

(3)           each
of

 

(A)          the
Subsidiary to be so designated and

 

(B)           its
Subsidiaries has not at the time of designation, and does not thereafter,
create, incur, issue, assume, guarantee or otherwise become directly or
indirectly liable with respect to any Indebtedness pursuant to which the lender
has recourse to any of the assets of the Company or any Restricted Subsidiary.

 

The Board of
Directors of the Company may designate any Unrestricted Subsidiary to be a
Restricted Subsidiary; provided
that, immediately after giving effect to such designation no Default or Event
of Default shall have occurred and be continuing and either:

 

(1)           the
Company could incur at least $1.00 of additional Indebtedness pursuant to the
Fixed Charge Coverage Ratio test described under Section 1011(a), or

 

(2)           the
Fixed Charge Coverage Ratio for the Company and its Restricted Subsidiaries
would be greater than such ratio for the Company and its Restricted
Subsidiaries immediately prior to such designation, in each case on a pro forma basis taking into account such designation.

 

Any such designation
by the Board of Directors of the Company shall be notified by the Company to
the Trustee by promptly filing with the Trustee a copy of the Board Resolution
giving effect to such designation and an Officers’ Certificate certifying that
such designation complied with the foregoing provisions.

 

“U.S. Person” means a U.S. Person
as defined in Rule 902(k) promulgated under the Securities Act.

 

“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.

 

36

 

“Weighted Average Life to Maturity” means, when applied to any Indebtedness,
Disqualified Stock or preferred stock, as the case may be, at any date, the
quotient obtained by dividing:

 

(1)           the
sum of the products of the number of years from the date of determination to
the date of each successive scheduled principal payment of such Indebtedness or
redemption or similar payment with respect to such Disqualified Stock or
preferred stock multiplied by the amount of such payment, by

 

(2)           the
sum of all such payments.

 

“Wholly-Owned Subsidiary” of any Person means a
Subsidiary of such Person, 100% of the outstanding Capital Stock or other
ownership interests of which (other than directors’ qualifying shares) shall at
the time be owned by such Person or by one or more Wholly-Owned
Subsidiaries of such Person.

 

SECTION 103.  Compliance Certificates and Opinions.  Upon any application or request by the
Company to the Trustee to take or refrain from taking any action under this
Indenture, the Company shall furnish to the Trustee an Officers’ Certificate
stating that all conditions precedent, if any, provided for in this Indenture
(including any covenant compliance with which constitutes a condition precedent)
relating to the proposed action have been complied with and, other than in
connection with the authentication of the Initial Notes, 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 (other than pursuant to
Section 1008(a)) shall include:

 

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

 

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

 

(3)           a statement that, in
the opinion of 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

 

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

 

37

 

SECTION 104.  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 of the Company may be based, insofar as it
relates to legal matters, upon a certificate or opinion of, or representations
by, counsel, unless such officer knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to
the matters upon which his certificate or opinion is based are erroneous. Any
such certificate or opinion 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 knows,
or in the exercise of reasonable care should know, that the certificate or
opinion or representations with respect to such matters 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 105.  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 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 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 that the Trustee deems sufficient.

 

38

 

(c)           The principal amount and serial
numbers of Notes held by any Person, and the date of holding the same, shall be
proved by the Note Register.

 

(d)           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.  Notwithstanding TIA
Section 316(c), such record date shall be the record date specified in or
pursuant to such Board Resolution, which shall be a date not earlier than the
date 30 days prior to the first solicitation of Holders generally in connection
therewith and not later than the date such solicitation is completed.  If such a record date is fixed, such request,
demand, authorization, direction, notice, consent, waiver or other 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 Notes have authorized or agreed or consented to such request,
demand, authorization, direction, notice, consent, waiver or other Act, and for
that purpose the Outstanding Notes 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 eleven months after the record date.  Any request, demand, authorization,
direction, notice, consent, waiver or other Act of the Holder of any Note shall
bind every future Holder of the same Note and the Holder of every Note 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, the Company or any Guarantor in reliance thereon, whether or not
notation of such action is made upon such Note.

 

SECTION 106.  Notices, Etc., to Trustee, Company, any
Guarantor and Agent.  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,

 

(1)           the Trustee by any
Holder or by the Company or any Guarantor shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing (which may be via
facsimile) to or with the Trustee at The Bank of New York, 101 Barclay Street,
8W, New York, New York, 10286 Attention: Daniel Donovan, or

 

(2)           the Company or any
Guarantor by the Trustee or by any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if made, given,
furnished or delivered in writing and mailed, first-class postage
prepaid, or delivered by recognized overnight courier, to the Company or such
Guarantor addressed to it at the address of its principal office specified in
the first paragraph, Attention: General Counsel, or at any other address previously
furnished in writing to the Trustee by the Company or such Guarantor.

 

39

 

SECTION 107.  Notice to Holders; Waiver.  Where this Indenture provides for notice of
any event to Holders by the Company or the Trustee, such notice shall be
sufficiently given (unless otherwise herein 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 Note 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.  Notices given by publication shall be deemed
given on the first date on which publication is made and notices given by
first-class mail, postage prepaid, shall be deemed given five calendar days
after mailing.

 

In case by
reason of the suspension of or irregularities in regular mail service or by
reason of any other cause, it shall be impracticable to mail notice of any
event to Holders when such notice is required to be given pursuant to any
provision of this Indenture, then any manner of giving such notice as shall be
satisfactory to the Trustee shall be deemed to be a sufficient giving of such
notice for every purpose hereunder.

 

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

 

SECTION 108.  Effect of Headings and Table of Contents.  The Article and Section headings herein, the
Table of Contents and the reconciliation and tie between the TIA and this
Indenture are for convenience of reference only, are not intended to be
considered a part hereof and shall not affect the construction hereof.

 

SECTION 109.  Successors and Assigns.  All agreements of the Company in this Indenture
and the Notes will bind its successors. 
All agreements of the Trustee in this Indenture will bind its
successors.  All agreements of each
Guarantor in this Indenture will bind its successors, except as otherwise
provided in Section 1209 hereof.

 

SECTION 110.  Separability Clause.  In case any provision in this Indenture or in
the Notes shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

 

SECTION 111.  Benefits of Indenture.  Nothing in this Indenture or in the Notes,
express or implied, shall give to any Person, other than the parties hereto,
any Paying Agent, any Notes Registrar and their successors hereunder and the
Holders any benefit or any legal or equitable right, remedy or claim under this
Indenture.

 

SECTION 112.  Governing Law.  This Indenture, the Notes and any Guarantee
shall be governed by and construed in accordance with the laws of the State of

 

40

 

New York.  This Indenture is subject to the provisions
of the Trust Indenture Act that are required to be part of this Indenture and
shall, to the extent applicable, be governed by such provisions.

 

SECTION 113.  Legal Holidays.  In any case where any Interest Payment Date,
Redemption Date or Stated Maturity or Maturity of any Note shall not be a
Business Day, then (notwithstanding any other provision of this Indenture or of
the Notes) payment of principal (or premium, if any) or interest need not be
made on such date, but may be made on the next succeeding Business Day with the
same force and effect as if made on the Interest Payment Date, Redemption Date,
or at the Stated Maturity or Maturity; provided that
no interest shall accrue for purposes of such payment for the period from and
after such Interest Payment Date, Redemption Date, Stated Maturity or Maturity,
as the case may be.

 

SECTION 114.  No Personal
Liability of Directors, Officers, Employees and Stockholders.  No director, officer, employee, incorporator
or stockholder of the Company or any Guarantor or any of their parent companies
shall have any liability for any obligations of the Company or the Guarantors
under the Notes, the Guarantees or this Indenture or for any claim based on, in
respect of, or by reason of such obligations or their creation to the extent
permitted by applicable law. Each Holder by accepting a Note and the related
Guarantee waives and releases all such liability to the extent permitted by
applicable law. The waiver and release are part of the consideration for
issuance of the Notes and the Guarantees. Such waiver may not be effective to
waive liabilities under the federal securities laws and it is the view of the
SEC that such a waiver is against public policy.

 

SECTION 115.  Trust Indenture Act Controls.  If any provision of this Indenture limits,
qualifies or conflicts with another provision which is required to be included
in this Indenture by the TIA, the provision required by the TIA shall control.  If any provision of this Indenture modifies
or excludes any provision of the TIA that may be so modified or excluded, the
latter provision shall be deemed to apply to this Indenture as so modified or
excluded, as the case may be.

 

SECTION 116.  Counterparts.  This Indenture may be executed in any number
of counterparts, each of which shall be original; but such counterparts shall
together constitute but one and the same instrument.  One signed copy is enough to prove this
Indenture.

 

ARTICLE TWO

 

NOTE FORMS

 

SECTION 201.  Form and Dating.  Provisions relating to the Initial Notes, the
Private Exchange Notes and the Exchange Notes are set forth in the
Rule 144A / Regulation S / IAI Appendix attached hereto (the “Appendix”)
which is hereby incorporated in, and expressly made part of, this Indenture.
The Initial Notes and the Trustee’s certificate of authentication shall be
substantially in the form of Exhibit 1 to the

 

41

 

Appendix which is hereby
incorporated in, and expressly made a part of, this Indenture.  The Exchange Notes, the Private Exchange
Notes and the Trustee’s certificate of authentication shall be substantially in
the form of Exhibit A, which is hereby incorporated in and expressly made a
part of this Indenture.  The Notes may
have notations, legends or endorsements required by law, stock exchange rule,
agreements to which the Company is subject, if any, or usage (provided that any such notation, legend or endorsement is in
a form reasonably acceptable to the Company). 
Each Note shall be dated the date of its authentication.  The terms of the Note set forth in the
Appendix and Exhibit A are part of the terms of this Indenture.

 

SECTION 202.  Execution, Authentication, Delivery and
Dating.  The Notes shall be executed
on behalf of the Company by any two Officers. 
The signature of any Officer on the Notes may be manual or facsimile
signatures of the present or any future such authorized officer and may be
imprinted or otherwise reproduced on the Notes.

 

Notes 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 Notes or did not hold such offices at the
date of such Notes.

 

At any time
and from time to time after the execution and delivery of this Indenture, the
Company may deliver Notes executed by the Company to the Trustee for authentication,
together with a Company Order for the authentication and delivery of such
Notes, and the Trustee in accordance with such Company Order shall authenticate
and deliver such Notes.

 

On the Issue
Date, the Company shall deliver the Initial Notes in the aggregate principal
amount of $500,000,000 executed by the Company to the Trustee for
authentication, together with a Company Order for the authentication and
delivery of such Notes, directing the Trustee to authenticate the Notes and
certifying that all conditions precedent to the issuance of Notes contained
herein have been fully complied with, and the Trustee in accordance with such
Company Order shall authenticate and deliver such Initial Notes.  At any time and from time to time after the
Issue Date, the Company may deliver Additional Notes executed by the Company to
the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Additional Notes, directing the Trustee to
authenticate the Additional Notes and certifying that the issuance of such
Additional Notes is in compliance with Article Ten hereof and that all other
conditions precedent to the issuance of Notes contained herein have been fully
complied with, and the Trustee in accordance with such Company Order shall
authenticate and deliver such Additional Notes. 
On Company Order, the Trustee shall authenticate for original issue
Exchange Notes in an aggregate principal amount not to exceed $500,000,000 plus
the aggregate principal amount of any Additional Notes issued; provided that such Exchange Notes shall be
issuable only upon the valid surrender for cancellation of Initial Notes and
any Additional Notes of a like aggregate principal amount in accordance with an
Exchange Offer pursuant to the Registration

 

42

 

Rights Agreement and a Company
Order for the authentication and delivery of such Exchange Notes and certifying
that all conditions precedent to the issuance of such Exchange Notes are
complied with (including the effectiveness of the Exchange Offer Registration
Statement related thereto).  In each
case, the Trustee shall receive an Officers’ Certificate and an Opinion of
Counsel of the Company that it may reasonably require in connection with such
authentication of Notes.  Such Company
Order shall specify the amount of Notes to be authenticated and the date on
which the original issue of Notes is to be authenticated.

 

Each Note
shall be dated the date of its authentication.

 

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

 

In case the
Company or any Guarantor, pursuant to Article Eight of this Indenture, shall be
consolidated or merged with or into any other Person or shall convey, transfer,
lease or otherwise dispose of its properties and assets substantially as an
entirety to any Person, and the successor Person resulting from such
consolidation, or surviving such merger, or into which the Company or such
Guarantor shall have been merged, or the Person which shall have received a
conveyance, transfer, lease or other disposition as aforesaid, shall have
executed a supplemental indenture hereto with the Trustee pursuant to Article
Eight of this Indenture, any of the Notes authenticated or delivered prior to
such consolidation, merger, conveyance, transfer, lease or other disposition
may, from time to time, at the request of the successor Person, be exchanged
for other Notes executed in the name of the successor Person with such changes
in phraseology and form as may be appropriate, but otherwise in substance of
like tenor as the Notes surrendered for such exchange and of like principal
amount; and the Trustee, upon Company Request of the successor Person, shall
authenticate and deliver Notes as specified in such request for the purpose of
such exchange.  If Notes shall at any
time be authenticated and delivered in any new name of a successor Person
pursuant to this Section in exchange or substitution for or upon registration
of transfer of any Notes, such successor Person, at the option of the Holders
but without expense to them, shall provide for the exchange of all Notes at the
time Outstanding for Notes authenticated and delivered in such new name.

 

ARTICLE THREE

 

THE NOTES

 

SECTION 301.  Title and Terms.  The aggregate principal amount of Notes which
may be authenticated and issued under this Indenture is not limited; provided, however that any Additional Notes issued under
this Indenture are issued in

 

43

 

accordance with Sections 202
and 1011 hereof, as part of the same series as the Initial Notes.

 

The Notes
shall be known and designated as the “7 5/8% Senior Subordinated Notes Due 2012”
of the Company.  The Stated Maturity of
the Notes shall be October 1, 2012, and the Notes shall bear interest at the
rate of 7 5/8% per annum from October 4, 2004, or from the most recent
Interest Payment Date to which interest has been paid or duly provided for,
payable on April 1, 2005 and semi-annually thereafter on April 1 and
October 1 in each year and at said Stated Maturity, until the principal thereof
is paid or duly provided for and to the Person in whose name the Note (or any
predecessor Note) is registered at the close of business on the March 15 and
September 15 immediately preceding such Interest Payment Date (each, a “Regular
Record Date”).

 

The principal
of (and premium, if any), interest and Special Interest, if any, on the Notes
shall be payable at the office or agency of the Company maintained for such
purpose in The City and State of New York or, at the option of the Company,
payment of interest may be made by check mailed to the Holders of the Notes at
their respective addresses set forth in the Note Register of Holders; provided that all payments of principal,
premium, if any, and interest and Special Interest, if any, with respect to
Notes represented by one or more permanent Global Notes registered in the name
of or held by the Depositary or its nominee will be made by wire transfer of
immediately available funds to the accounts specified by the Holder or Holders
thereof.  Until otherwise designated by
the Company, the Company’s office or agency in New York shall be the office of
the Trustee maintained for such purpose.

 

Holders shall
have the right to require the Company to purchase their Notes, in whole or in
part, in the event of a Change of Control pursuant to Section 1017.  The Notes shall be subject to repurchase
pursuant to an Offer to Purchase as provided in Section 1018.

 

The Notes
shall be redeemable as provided in Article Eleven.

 

The due and
punctual payment of principal of, premium, if any, and interest on the Notes
payable by the Company is irrevocably unconditionally guaranteed, to the extent
set forth herein, by each of the Guarantors.

 

SECTION 302.  Denominations.  The Notes shall be issuable only in
registered form without coupons and only in denominations of $1,000 and any
integral multiple thereof.

 

SECTION 303.  Temporary Notes.  Pending the preparation of definitive Notes,
the Company may execute, and upon Company Order the Trustee shall authenticate
and deliver, temporary Notes which are printed, lithographed, typewritten,
mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Notes in lieu of which they are
issued and with such appropriate insertions, omissions, substitutions and other
variations as the officers

 

44

 

executing such Notes may
determine, as conclusively evidenced by their execution of such Notes.

 

If temporary
Notes are issued, the Company will cause definitive Notes to be prepared without
unreasonable delay.  After the
preparation of definitive Notes, the temporary Notes shall be exchangeable for
definitive Notes upon surrender of the temporary Notes at the office or agency
of the Company designated for such purpose pursuant to Section 1002,
without charge to the Holder.  Upon
surrender for cancellation of any one or more temporary Notes, the Company
shall execute and the Trustee shall authenticate and deliver in exchange
therefor a like principal amount of definitive Notes of authorized
denominations.  Until so exchanged, the
temporary Notes shall in all respects be entitled to the same benefits under
this Indenture as definitive Notes.

 

SECTION 304.  Registration, Registration of Transfer and
Exchange.  The Company shall cause to
be kept at the Corporate Trust Office of the Trustee a register (the register
maintained in such office and in any other office or agency designated pursuant
to Section 1002 being herein sometimes referred to as the “Note Register”)
in which, subject to such reasonable regulations as it may prescribe, the
Company shall provide for the registration of Notes and of transfers of
Notes.  The Note Register shall be in
written form or any other form capable of being converted into written form
within a reasonable time.  At all
reasonable times, the Note Register shall be open to inspection by the
Trustee.  The Trustee is hereby initially
appointed as note registrar (the “Note Registrar”) for the purpose of
registering Notes and transfers of Notes as herein provided.

 

Upon surrender
for registration of transfer of any Note at the office or agency of the Company
designated pursuant to Section 1002, the Company shall execute, and the
Trustee shall authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Notes of any authorized denomination
or denominations of a like aggregate principal amount.

 

At the option
of the Holder, Notes may be exchanged for other Notes of any authorized
denomination and of a like aggregate principal amount, upon surrender of the
Notes to be exchanged at such office or agency. 
Whenever any Notes are so surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and deliver, the Notes which the
Holder making the exchange is entitled to receive; provided that no exchange of Notes for Exchange Notes shall
occur until an Exchange Offer Registration Statement shall have been declared
effective by the SEC, the Trustee shall have received an Officers’ Certificate
confirming that the Exchange Offer Registration Statement has been declared
effective by the SEC and the Initial Notes to be exchanged for the Exchange
Notes shall be cancelled by the Trustee.

 

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

 

45

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

 

No service
charge shall be made for any registration of transfer or exchange or redemption
of Notes, but the Company may require payment of a sum sufficient to cover any
taxes, fees or other governmental charge that may be imposed in connection with
any registration of transfer or exchange of Notes, other than exchanges
pursuant to Sections 202, 303, 906, 1017, 1018, or 1108 not involving any
transfer.

 

SECTION 305.  Mutilated, Destroyed, Lost and Stolen
Notes.  If (1) any mutilated
Note is surrendered to the Trustee, or (2) the Company and the Trustee
receive evidence to their satisfaction of the destruction, loss or theft of any
Note, and there is delivered to the Company and the Trustee such security or
indemnity as may be required by them to save each of them harmless, then, in
the absence of notice to the Company or the Trustee that such Note has been
acquired by a Protected Purchaser (as defined in Section 8-303 of the Uniform
Commercial Code)(a “Protected Purchaser”), the Company shall execute and upon
Company Order the Trustee shall authenticate and deliver, in exchange for any
such mutilated Note or in lieu of any such destroyed, lost or stolen Note, a new
Note of like tenor and principal amount, bearing a number not contemporaneously
outstanding.

 

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

 

Upon the
issuance of any new Note 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 Note
issued pursuant to this Section in lieu of any mutilated, destroyed, lost or
stolen Note shall constitute an original additional contractual obligation of
the Company and each Guarantor, whether or not the mutilated, destroyed, lost
or stolen Note shall be at any time enforceable by anyone, and shall be
entitled to all benefits of this Indenture equally and proportionately with any
and all other Notes 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 Notes.

 

SECTION 306.  Payment of Interest; Interest Rights Preserved.  (a) 
Interest on any Note 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 such Note (or one or

 

46

 

more Predecessor Notes) is
registered at the close of business on the Regular Record Date for such
interest at the office or agency of the Company maintained for such purpose
pursuant to Section 1002; provided, however, that, subject to Section 301 hereof, each installment
of interest may at the Company’s option be paid by (1) mailing a check for
such interest, payable to or upon the written order of the Person entitled
thereto pursuant to Section 307, to the address of such Person as it
appears in the Note Register or (2) transfer to an account located in the
United States maintained by the payee.

 

(b)           Any interest on any Note which is
payable, but is not punctually paid or duly provided for, on any Interest
Payment Date shall forthwith cease to be payable to the Holder on the Regular
Record Date by virtue of having been such Holder, and such defaulted interest
and (to the extent lawful) interest on such defaulted interest at the rate
borne by the Notes (such defaulted interest and interest thereon herein collectively
called “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 Notes (or their respective Predecessor Notes) 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 Note
and the date of the proposed payment, 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 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 expense of the Company, shall cause notice of
the proposed payment of such Defaulted Interest and the Special Record Date
therefor to be given in the manner provided for in Section 107, 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 given, such Defaulted Interest
shall be paid to the Persons in whose names the Notes (or their respective
Predecessor Notes) 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 in any other lawful manner not inconsistent
with the requirements of any securities exchange on which the Notes 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

 

47

 

the proposed
payment pursuant to this clause, such manner of payment shall be deemed
practicable by the Trustee.

 

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

 

SECTION 307.  Persons Deemed Owners.  Prior to the due presentment of a Note for
registration of transfer, the Company, any Guarantor, the Trustee and any agent
of the Company or the Trustee may treat the Person in whose name such Note is
registered as the owner of such Note for the purpose of receiving payment of
principal of (and premium, if any) and (subject to Sections 304 and 306)
interest on such Note and for all other purposes whatsoever, whether or not
such Note be overdue, and none of the Company, the Trustee or any agent of the
Company or the Trustee shall be affected by notice to the contrary.

 

SECTION 308.  Cancellation.  All Notes surrendered for payment,
redemption, registration of transfer or exchange shall, if surrendered to any
Person other than the Trustee, be delivered to the Trustee and shall be
promptly cancelled by it.  The Company
may at any time deliver to the Trustee for cancellation any Notes previously
authenticated and delivered hereunder which the Company may have acquired in
any manner whatsoever, and may deliver to the Trustee (or to any other Person
for delivery to the Trustee) for cancellation any Notes previously
authenticated hereunder which the Company has not issued and sold, and all
Notes so delivered shall be promptly cancelled by the Trustee.  If the Company shall so acquire any of the
Notes, however, such acquisition shall not operate as a redemption or
satisfaction of the indebtedness represented by such Notes unless and until the
same are surrendered to the Trustee for cancellation.  No Notes shall be authenticated in lieu of or
in exchange for any Notes cancelled as provided in this Section, except as
expressly permitted by this Indenture. 
All cancelled Notes held by the Trustee shall be disposed of by the
Trustee in accordance with its customary procedures unless by Company Order the
Company shall direct that cancelled Notes be returned to it.

 

SECTION 309.  Computation of Interest.  Interest on the Notes shall be computed on
the basis of a 360-day year of twelve 30-day months.

 

SECTION 310.  Transfer and Exchange.  The Notes shall be issued in registered form
and shall be transferable only upon the surrender of a Note for registration of
transfer.  When a Note is presented to
the Notes Registrar or a co-registrar with a request to register a transfer,
the Notes Registrar shall register the transfer as requested if the
requirements of this Indenture and Section 8-401(a) of the Uniform Commercial
Code are met.  When Notes are presented
to the Notes Registrar or a co-registrar with a request to exchange them for an
equal principal amount of Notes of other denominations, the Notes Registrar
shall make the exchange as requested if the same requirements are met.

 

48

 

SECTION 311.  CUSIP Numbers.  The Company in issuing the Notes may use “CUSIP”
numbers, ISINs and “Common Code” numbers (in each case, if then generally in
use) in addition to serial numbers, and, if so, the Trustee shall use such “CUSIP”
numbers, ISINs and “Common Code” numbers in addition to serial numbers in
notices of redemption, repurchase or other notices to Holders as a convenience
to Holders; provided that any
such notice may state that no representation is made as to the correctness of
such “CUSIP” numbers, ISINs and “Common Code” numbers either as printed on the
Notes or as contained in any notice of a redemption or repurchase and that
reliance may be placed only on the serial or other identification numbers
printed on the Notes, and any such redemption or repurchase shall not be
affected by any defect in or omission of such numbers.  The Company will promptly notify the Trustee
in writing of any change in the “CUSIP” numbers, ISINs and “Common Code”
numbers applicable to the Notes.

 

SECTION 312.  Issuance of Additional Notes.  The Company may, subject to Section 1011 of
this Indenture, issue additional Notes having identical terms and conditions to
the Initial Notes issued on the Issue Date (the “Additional Notes”); provided, however,
that no Additional Notes may be issued at a price that would cause such
Additional Notes to have “original issue discount” within the meaning of
Section 1273 of the Code. The Initial Notes issued on the Issue Date and any
Additional Notes subsequently issued shall be treated as a single class for all
purposes under this Indenture.  Exchange
Notes issued in exchange for Initial Notes issued on the Issue Date and
Exchange Notes issued for any Additional Notes subsequently issued shall be
treated as a single class for all purposes under this Indenture.

 

ARTICLE FOUR

 

SATISFACTION
AND DISCHARGE

 

SECTION 401.  Satisfaction and Discharge of Indenture.  This Indenture shall upon Company Request and
at the Company’s expense cease to be of further effect (except as set forth in
the last paragraph of this Section and as to surviving rights of registration
of transfer or exchange of Notes expressly provided for herein or pursuant
hereto) and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture when:

 

(1)           either,

 

(A)  all Notes theretofore
authenticated and delivered (other than (i) Notes which have been
destroyed, lost or stolen and which have been replaced or paid as provided in
Section 305 and (ii) Notes for whose payment money has theretofore
been deposited in trust with the Trustee or any Paying Agent or segregated and
held in trust by the Company and thereafter repaid to the Company or discharged
from such trust, as provided in Section 1003) have been delivered to the
Trustee for cancellation; or

 

49

 

(B)  all such Notes not
theretofore delivered to the Trustee for cancellation,

 

(i)      have become due and
payable by reason of the making of a notice of redemption pursuant to Section
1105 or otherwise, 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 satisfactory to the Trustee for
the giving of notice of redemption by the Trustee in the name, and at the
expense, of the Company,

 

and the Company or any Guarantor, in the case
of (i), (ii) or (iii) above, has irrevocably deposited or caused to be
deposited with the Trustee as trust funds in trust solely for the benefit of
the Holders, cash in U.S. dollars, non-callable Government Securities, or a
combination thereof, in such amounts as will be sufficient without
consideration of any reinvestment of interest to pay and discharge the entire
indebtedness on such Notes not theretofore delivered to the Trustee for
cancellation, for principal (and premium, if any) and interest to the date of
such deposit (in the case of Notes which have become due and payable) or to the
Stated Maturity or Redemption Date, as the case may be;

 

(2)           no Default or Event
of Default (other than that resulting from borrowing funds to be applied to
make such deposit) with respect to this Indenture or the Notes shall have
occurred and be continuing on the date of such deposit or shall occur as a
result of such deposit and such deposit shall not result in a breach or
violation of, or constitute a default under the Credit Facilities any other
material agreement or instrument (other than this Indenture) to which the
Company or any Guarantor is a party or by which the Company or any Guarantor is
bound;

 

(3)           the Company has paid
or caused to be paid all sums payable by it under this Indenture;

 

(4)           the Company has
delivered irrevocable instructions to the Trustee under this Indenture to apply
the deposited money toward the payment of such Notes at the Stated Maturity or
the Redemption Date, as the case may be; and

 

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

 

Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 607, the obligations of the

 

50

 

Company to any Authenticating
Agent under Section 612 and, if money or Government Securities shall have
been deposited with the Trustee pursuant to subclause (B) of
clause (1) of this Section, the obligations of the Trustee under Section 402
and the last paragraph of Section 1003 shall survive such satisfaction and
discharge.

 

SECTION
402.  Application
of Trust Money.  Subject to the
provisions of the last paragraph of Section 1003, all money or Government
Securities deposited with the Trustee pursuant to Section 401 shall be
held in trust and applied by it, in accordance with the provisions of the Notes
and this Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal (and premium, if
any) and interest for whose payment such money or Government Securities has
been deposited with the Trustee; but such money or Government Securities need
not be segregated from other funds except to the extent required by law.

 

If the Trustee
or Paying Agent is unable to apply any money or Government Securities in
accordance with Section 401 by reason of any legal proceeding or by reason of
any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, the Company’s and any
Guarantor’s obligations under this Indenture and the Notes shall be revived and
reinstated as though no deposit had occurred pursuant to Section 401 until such
time as the Trustee or Paying Agent is permitted to apply all such money or
Government Securities in accordance with Section 401; provided that if the Company has made any payment of
principal of, premium, if any, or interest on any Notes because of the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Notes to receive such payment from the money or
Government Securities held by the Trustee or Paying Agent.

 

ARTICLE FIVE

 

REMEDIES

 

SECTION 501.  Events of Default.  “Event of Default”, wherever used herein,
means any one of the following events (whatever the reason for such Event of
Default and whether it shall be occasioned by the provisions of
Article Fourteen or be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

 

(1)           default in payment
when due and payable, upon redemption, acceleration or otherwise, of principal
of, or premium, if any, on the Notes issued under this Indenture, whether or
not such payment shall be prohibited by Article Fourteen hereof or Section
1204;

 

(2)           default for
30 days or more in the payment when due of interest on or with respect to
the Notes issued under this Indenture, whether or not such payment shall be
prohibited by Article Fourteen hereof or Section 1204;

 

51

 

(3)           failure by the
Company to comply with its obligations under Section 801;

 

(4)           failure by the
Company to comply for 30 days after notice by the Trustee or the holders
of not less than 30% in principal amount of the Notes then outstanding with any
of its obligations under Sections 1009, 1010, 1011, 1012, 1013, 1014, 1015,
1016, 1017 (other than a failure to purchase Notes), or 1018 (other than a
failure to purchase Notes);

 

(5)           failure by the
Company or any Guarantor for 60 days after receipt of written notice given
by the Trustee or the Holders of not less than 30% in principal amount of the
Notes then outstanding and issued under this Indenture to comply with any of
its other agreements contained in this Indenture or the Notes;

 

(6)           default under any
mortgage, indenture or instrument under which there is issued or by which there
is secured or evidenced any Indebtedness for money borrowed by the Company or
any Restricted Subsidiary or the payment of which is guaranteed by the Company
or any Restricted Subsidiary, other than Indebtedness owed to the Company or a
Restricted Subsidiary, whether such Indebtedness or guarantee now exists or is
created after the issuance of the Notes, if both

 

(A)  such default either results
from the failure to pay any such Indebtedness at its stated final maturity
(after giving effect to any applicable grace periods) or relates to an
obligation other than the obligation to pay principal of any such Indebtedness
at its stated final maturity and results in the holder or holders of such
Indebtedness causing such Indebtedness to become due prior to its stated
maturity and

 

(B)  the principal amount of such
Indebtedness, together with the principal amount of any other such Indebtedness
in default for failure to pay principal at stated final maturity (after giving
effect to any applicable grace periods), or the maturity of which has been so
accelerated, aggregate $40.0 million or more at any one time outstanding;

 

(7)           failure by the
Company or any Significant Subsidiary to pay final judgments aggregating in
excess of $40.0 million, which final judgments remain unpaid, undischarged
and unstayed for a period of more than 60 days after such judgment becomes
final, and in the event such judgment is covered by insurance, an enforcement
proceeding has been commenced by any creditor upon such judgment or decree
which is not promptly stayed;

 

(8)           any of the following
events with respect to the Company or any Significant Subsidiary:

 

(A)  the Company or any
Significant Subsidiary pursuant to or within the meaning of any Bankruptcy Law

 

52

 

(i)      commences a voluntary
case;

 

(ii)     consents to the entry of
an order for relief against it in an involuntary case;

 

(iii)    consents to the
appointment of a custodian of it or for any substantial part of its property;

 

(iv)    takes any comparable
action under any foreign laws relating to insolvency; or

 

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

 

(i)      is for relief against the
Company or any Significant Subsidiary in an involuntary case;

 

(ii)     appoints a custodian of
the Company or any Significant Subsidiary or for any substantial part of its
property; or

 

(iii)    orders the winding up or
liquidation of the Company or any Significant Subsidiary;

 

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

 

(9)           the Guarantee of any
Significant Subsidiary shall for any reason cease to be in full force and
effect or be declared null and void or any responsible officer of any Guarantor
that is a Significant Subsidiary, as the case may be, denies that it has any
further liability under its Guarantee or gives notice to such effect, other
than by reason of the termination of this Indenture or the release of any such
Guarantee in accordance with this Indenture.

 

SECTION 502.  Acceleration of Maturity; Rescission and
Annulment.  (a)If any Event of
Default (other than an Event of Default specified in Section 501(8)) occurs and
is continuing, then and in every such case the Trustee or the Holders of at
least 30% in principal amount of the Outstanding Notes issued under this
Indenture may declare the principal, premium, if any, interest and any other
monetary obligations on all the Outstanding Notes to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given
by Holders); provided, however,
that, so long as any Indebtedness permitted to be incurred under this Indenture
as part of the Senior Credit Facilities shall be outstanding, no such
acceleration shall be effective until the earlier of

 

(1)           acceleration of any
such Indebtedness under the Senior Credit Facilities, or

 

53

 

(2)           five Business Days
after the giving of written notice of such acceleration to the Company and the
administrative agent under the Senior Credit Facilities.

 

(b)           Upon the effectiveness of such
declaration, such principal and interest will be due and payable
immediately.  Notwithstanding the
foregoing, if an Event of Default specified in Section 501(8) occurs and is
continuing, then the principal amount of all Outstanding Notes shall ipso facto
become and be immediately due and payable without any notice, declaration or
other act on the part of the Trustee or any Holder.

 

(c)           At any time after a declaration of
acceleration has been made and before a judgment or decree for payment of the
money due has been obtained by the Trustee as hereinafter provided in this
Article, the Holders of a majority in aggregate principal amount of the
Outstanding Notes, by written notice to the Company and the Trustee, may
rescind and annul such declaration and its consequences if:

 

(1)           the Company has paid
or deposited with the Trustee a sum sufficient to pay:

 

(A)  all overdue interest on all
Outstanding Notes,

 

(B)  all unpaid principal of (and
premium, and Special Interest, if any, on) any Outstanding Notes which has
become due otherwise than by such declaration of acceleration, and interest on
such unpaid principal at the rate borne by the Notes,

 

(C)  to the extent that payment
of such interest is lawful, interest on overdue interest at the rate borne by
the Notes, and

 

(D)  all sums paid or advanced by
the Trustee hereunder and the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel; and

 

(2)           Events of Default,
other than the non-payment of amounts of principal of (or premium, if
any, on) or interest on Notes which have become due solely by such declaration
of acceleration, have been cured or waived as provided in Section 513,

 

no such rescission
shall affect any subsequent default or impair any right consequent thereon.

 

(d)           Notwithstanding the preceding
paragraph, in the event of any Event of Default specified in Section 501(6)
above, such Event of Default and all consequences thereof (excluding any
resulting payment default) shall be annulled, waived and rescinded,
automatically and without any action by the Trustee or the Holders, if within
20 days after such Event of Default arose,

 

54

 

(1)           the Indebtedness or
guarantee that is the basis for such Event of Default has been discharged, or

 

(2)           the holders thereof
have rescinded or waived the acceleration, notice or action (as the case may
be) giving rise to such Event of Default, or

 

(3)           if the default that
is the basis for such Event of Default has been cured.

 

SECTION 503.  Collection of Indebtedness and Suits for
Enforcement by Trustee.  The Company
covenants that if:

 

(1)           default is made in
the payment of any installment of interest on any Note 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, or Special Interest, if any, on)
any Note at the Maturity thereof,

 

the Company
will, upon demand of the Trustee, pay to the Trustee for the benefit of the
Holders of such Notes, the whole amount then due and payable on such Notes for
principal (and premium, if any) and interest, and interest on any overdue
principal (and premium, if any) and, to the extent that payment of such
interest shall be legally enforceable, upon any overdue installment of
interest, at the rate borne by the Notes, 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 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, any
Guarantor or any other obligor upon the Notes and collect the moneys adjudged
or decreed to be payable in the manner provided by law out of the property of
the Company, any Guarantor or any other obligor upon the Notes, wherever
situated.

 

If an Event of
Default occurs and is continuing, the Trustee may in its discretion proceed to
protect and enforce its rights and the rights of the Holders under this
Indenture and the Guarantees by such appropriate judicial proceedings as the
Trustee shall deem necessary to protect and enforce any such rights, including
seeking recourse against any Guarantor, 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 enforce any other proper remedy, including seeking
recourse against any Guarantor.

 

SECTION 504.  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 including any Guarantor, upon the Notes or the property of

 

55

 

the Company or of such other obligor or their creditors, the Trustee
(irrespective of whether the principal of the Notes 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, premium, if any, or interest) shall be entitled and
empowered, by intervention in such proceeding or otherwise,

 

(1)           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 Notes 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 agents and counsel) and of the
Holders allowed in such judicial proceeding, and

 

(2)           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 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 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 607.

 

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

 

SECTION 505.  Trustee May Enforce Claims Without Possession
of Notes.  All rights of action and
claims under this Indenture or the Notes may be prosecuted and enforced by the
Trustee without the possession of any of the Notes or the production thereof in
any proceeding relating thereto, and any such proceeding instituted by the
Trustee shall be brought in its own name and 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 in respect of
which such judgment has been recovered.

 

SECTION 506.  Application of Money Collected.  Subject to Article Fourteen hereof and
Section 1204, any money or property collected by the Trustee pursuant to this
Article shall be applied in the following order, at the date or dates fixed by
the Trustee and, in case of the distribution of such money on account of
principal (or premium, if any) or interest, upon presentation of the Notes and
the notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:

 

56

 

FIRST:  To the payment of all amounts due the Trustee
under Section 607;

 

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

 

THIRD:  The balance, if any, to the Company or as a
court of competent jurisdiction may direct in writing; provided
that all sums due and owing to the Holders and the Trustee have been paid in
full as required by this Indenture.

 

SECTION 507.  Limitation on Suits.  No Holder of any Notes 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 the Trustee notice that an Event of Default is continuing;

 

(2)           Holders of at least
30% in principal amount of the outstanding Notes have requested the Trustee to
pursue the remedy;

 

(3)           such Holders have
offered the Trustee reasonable security or indemnity reasonably satisfactory to
it against any loss, liability or expense;

 

(4)           the Trustee has not
complied with such request within 60 days after the receipt thereof and
the offer of security or indemnity; and

 

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

 

it being
understood and intended that no one or more Holders shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this
Indenture or the Guarantees to affect, disturb or prejudice the rights of any
other Holders, or to obtain or to seek to obtain priority or preference over
any other Holders or to enforce any right under this Indenture or the
Guarantees, except in the manner herein provided and for the equal and ratable
benefit of all the Holders (it being further understood that the Trustee does
not have an affirmative duty to ascertain whether or not such actions or
forbearances are unduly prejudicial to such Holders).

 

SECTION 508.  Unconditional Right of Holders to Receive
Principal, Premium and Interest. 
Notwithstanding any other provision in this Indenture, the Holder of any
Note shall have the right, which is absolute and unconditional, to receive
payment, as provided herein (including, if applicable, Article Eleven) and in
such Note of the principal of (and premium, if any) and (subject to
Section 306) interest on such Note on the respective Stated Maturities
expressed in such Note (or, in the case of redemption, on the Redemption Date)
and to institute suit for the enforcement of any such payment on or

 

57

 

after such respective dates, and such rights shall not be impaired
without the consent of such Holder.

 

SECTION 509.  Restoration of Rights and Remedies.  If the Trustee or any Holder has instituted
any proceeding to enforce any right or remedy under this Indenture or the
Guarantees 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, any Guarantor, any other obligor of the Notes, 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 had been instituted.

 

SECTION 510.  Rights and Remedies Cumulative.  Except as otherwise provided with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Notes in the
last paragraph of Section 305, no right or remedy herein conferred upon or
reserved to the Trustee or to the Holders is intended to be exclusive of any
other right or remedy, and every right and remedy shall, to the extent
permitted by law, be cumulative and in addition to every other right and remedy
given hereunder or now or hereafter existing at law or in equity or
otherwise.  The assertion or employment
of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.

 

SECTION 511.  Delay or Omission Not Waiver.  No delay or omission of the Trustee or of any
Holder of any Note 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 512.  Control by Holders.  The Holders of not less than a majority in
principal amount of the Outstanding Notes 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, provided that:

 

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

 

(2)           subject to Section
315 of the Trust Indenture Act, the Trustee may take any other action deemed
proper by the Trustee which is not inconsistent with such direction, and

 

(3)           the Trustee need not
take any action which might involve it in personal liability or be unjustly
prejudicial to the Holders not consenting.

 

SECTION 513.  Waiver of Past Defaults.  Subject to Sections 508 and 902, the Holders
of not less than a majority in principal amount of the Outstanding Notes

 

58

 

may on behalf of the Holders of all such Notes waive any past Default
hereunder and its consequences, except a continuing Default or Event of Default
(1) in respect of the payment of interest on, premium, if any, or the principal
of any such Note held by a non-consenting Holder, or (2) in respect of a covenant
or provision hereof which under Article Nine cannot be modified or amended
without the consent of the Holder of each Outstanding Note affected.

 

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

 

SECTION 514.  Waiver of Stay or Extension Laws.  Each of the Company, the Guarantors and any
other obligor on the Notes 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 or take the benefit or advantage of, any stay or extension law wherever
enacted, now or at any time hereafter in force, which may affect the covenants
or the performance of this Indenture; and each of the Company, the Guarantors
and any other obligor on the Notes (to the extent that it may lawfully do so)
hereby expressly waives all benefit or advantage of any such law and covenants
that it will not 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.

 

ARTICLE
SIX

 

THE
TRUSTEE

 

SECTION 601.  Duties of the Trustee.  (a) 
Except during the continuance of a Default or an Event of Default,

 

(1)           the Trustee
undertakes to perform such duties and only such duties as are specifically set
forth in this Indenture, and no implied covenants or obligations shall be read
into this Indenture against the Trustee; and

 

(2)           in the absence of
bad faith or willful misconduct on its part, the Trustee may conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Trustee and conforming
to the requirements of this Indenture; but in the case of any such certificates
or opinions specifically required by any provision hereof to be provided to it,
the Trustee shall be under a duty to examine the same to determine whether or
not they conform to the requirements of this Indenture, but not to verify the
contents thereof.

 

(b)           If a Default or an Event of Default
has occurred and is continuing of which a Responsible Officer of the Trustee
has actual knowledge or of which written notice of such Default or Event of
Default shall have been given to the Trustee by the Company, any other obligor
of the Notes or by any Holder, the Trustee shall exercise

 

59

 

such of the rights and powers vested in it by this Indenture, and use
the same degree of care and skill in their exercise, as a prudent Person would
exercise or use under the circumstances in the conduct of such Person’s own
affairs.

 

(c)           No provision of this Indenture shall
be construed to relieve the Trustee from liability for its own negligent
action, its own negligent failure to act, or its own willful misconduct, except
that

 

(1)           this paragraph (c)
shall not be construed to limit the effect of paragraph (a) of this Section;

 

(2)           the Trustee shall
not be liable for any error of judgment made in good faith by a Responsible
Officer, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts;

 

(3)           the Trustee shall
not be liable with respect to any action taken or omitted to be taken by it in
good faith in accordance with the direction of the Holders of a majority in
aggregate principal amount of the Outstanding Notes relating to the time,
method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred upon the Trustee, under
this Indenture; and

 

(4)           no provision of this
Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.

 

(d)           Whether or not therein expressly so
provided, every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section.

 

SECTION 602.  Notice of Defaults.  Within 30 days after the earlier of receipt
from the Company of notice of the occurrence of any Default or Event of Default
hereunder or the date when such Default or Event of Default becomes known to
the Trustee, the Trustee shall transmit, in the manner and to the extent
provided in TIA Section 313(c), notice of such Default or Event of Default
hereunder 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, on) or interest on any
Note, the Trustee shall be protected in withholding such notice if and so long
as a trust committee of Responsible Officers of the Trustee in good faith
determine that the withholding of such notice is in the interest of the
Holders.

 

SECTION 603.  Certain Rights of Trustee.  Subject to the provisions of TIA
Sections 315(a) through 315(d):

 

60

 

(1)           the Trustee may
conclusively rely and shall be fully 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 (whether in original
or facsimile form) believed by it to be genuine and to have been signed or
presented by the proper party or parties;

 

(2)           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;

 

(3)           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;

 

(4)           the Trustee may
consult with counsel of its own selection and the 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 accordance with the advice or opinion of such counsel;

 

(5)           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
reasonable security or indemnity satisfactory to it against the costs,
expenses, losses and liabilities which might be incurred by it in compliance
with such request or direction;

 

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

 

(7)           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;

 

61

 

(8)           the Trustee shall
not be liable for any action taken, suffered or omitted by it in good faith and
believed by it to be authorized or within the discretion or rights or powers
conferred upon it by this Indenture; provided, however, that the Trustee’s conduct does not constitute
wilful misconduct or negligence.

 

(9)           the rights,
privileges, protections, immunities and benefits given to the Trustee,
including its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and each
agent, custodian and other Person employed to act hereunder;

 

(10)         the Trustee may
request that the Company deliver an Officers’ Certificate substantially in the
Form of Exhibit C hereto setting forth the names of individuals or titles of
officers authorized at such time to take specified actions pursuant to this
Indenture, which Officers’ Certificate may be signed by any person authorized
to sign an Officers’ Certificate, including any person specified as so
authorized in any such certificate previously delivered and not superseded; and

 

(11)         in no event shall the
Trustee be responsible or liable for special, indirect, or consequential loss
or damage of any kind whatsoever (including, but not limited to, loss of
profit) irrespective of whether the Trustee has been advised of the likelihood
of such loss or damage and regardless of the form of action.

 

SECTION 604.  Trustee Not Responsible for Recitals or
Issuance of Notes.  The recitals
contained herein and in the Notes, except for the Trustee’s certificates of
authentication, shall be taken as the statements of the Company, and the
Trustee assumes no responsibility for their correctness.  The Trustee makes no representations as to
the validity or sufficiency of this Indenture or of the Notes, except that the
Trustee represents that it is duly authorized to execute and deliver this
Indenture, authenticate the Notes and perform its obligations hereunder and
that the statements made by it in a Statement of Eligibility on Form T-1
supplied to the Company are true and accurate, subject to the qualifications
set forth therein.  The Trustee shall not
be accountable for the use or application by the Company of Notes or the
proceeds thereof.

 

SECTION 605.  May Hold Notes.  The Trustee, any Paying Agent, any Note
Registrar or any other agent of the Company or of the Trustee, in its
individual or any other capacity, may become the owner or pledgee of Notes and,
subject to TIA Sections 310(b) and 311, may otherwise deal with the
Company with the same rights it would have if it were not the Trustee, Paying
Agent, Note Registrar or such other agent; provided,
however, that, if it acquires any conflicting interest, it must
eliminate such conflict within 90 days, apply to the SEC for permission to
continue or resign.

 

SECTION 606.  Money Held in Trust.  Money held by the Trustee in trust hereunder
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 in writing with the Company.

 

62

 

SECTION 607.  Compensation and Reimbursement.  The Company and the Guarantors, jointly
and severally, agree:

 

(1)           to pay to the
Trustee from time to time such compensation as shall be agreed in writing
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 shall be determined to have
been caused by its own negligence or willful misconduct; and

 

(3)           to indemnify the
Trustee and any predecessor Trustee for, and to hold it harmless against, any
and all loss, liability, claim, damage or expense, including taxes (other than
the taxes based on the income of the Trustee) incurred without negligence or
willful misconduct on its part, arising out of or in connection with the
acceptance or administration of this trust, including the costs and expenses of
defending itself against any claim regardless of whether the claim is asserted
by the Company, a Guarantor, a Holder or any other Person or liability in
connection with the exercise or performance of any of its powers or duties
hereunder.

 

The
obligations of the Company under this Section to compensate the Trustee, to pay
or reimburse the Trustee for expenses, disbursements and advances and to
indemnify and hold harmless the Trustee shall constitute additional
indebtedness hereunder and shall survive the satisfaction and discharge of this
Indenture and resignation or removal of the Trustee.  As security for the performance of such
obligations of the Company, the Trustee shall have a claim prior to the Notes
upon all property and funds held or collected by the Trustee as such, except
funds held in trust for the payment of principal of (and premium, if any) or
interest on particular Notes.

 

When the
Trustee incurs expenses or renders services in connection with an Event of
Default specified in Section 501(8), the expenses (including the reasonable
charges and expenses of its counsel) of and the compensation for such services
are intended to constitute expenses of administration under any applicable
Bankruptcy Law.

 

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

 

SECTION 608.  Corporate Trustee Required; Eligibility.  There shall be at all times a Trustee
hereunder which shall be eligible to act as Trustee under TIA Section 310(a)(1)
and shall have a combined capital and surplus of at least $50,000,000.  If such corporation publishes reports of
condition at least annually, pursuant to law or to

 

63

 

the requirements of Federal, State, territorial or District of Columbia
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.  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 609.  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 610.

 

(b)           The Trustee may resign at any time by
giving written notice thereof to the Company. 
Upon receiving such notice of resignation, the Company shall promptly
appoint a successor trustee by written instrument executed by authority of the
Board of Directors, a copy of which shall be delivered to the resigning Trustee
and a copy to the successor Trustee.  If
the instrument of acceptance by a successor Trustee required by
Section 610 shall not have been delivered to the Trustee within 30 days
after the giving of such notice of resignation, the resigning Trustee may
petition, at the expense of the Company, any court of competent jurisdiction
for the appointment of a successor Trustee.

 

(c)           The Trustee may be removed at any
time by Act of the Holders of not less than a majority in principal amount of
the Outstanding Notes, delivered to the Trustee and to the Company.  If the instrument of acceptance by a
successor Trustee required by Section 610 shall not have been delivered to
the Trustee within 30 days after the giving of such notice of resignation, the
resigning Trustee may petition, at the expense of the Company, any court of
competent jurisdiction for the appointment of a successor Trustee.

 

(d)           The Trustee shall comply with TIA
Section 310(b); provided, however,
that there shall be excluded from the operation of TIA Section 310(b)(1) any
indenture or indentures under which other securities or certificates of
interest or participation in other securities of the Company are outstanding if
the requirements for such exclusion set forth in TIA Section 310(b)(1) are met.

 

(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, the Company, by a Board Resolution, shall
promptly appoint a successor Trustee. 
If, within one year after such resignation, removal or incapability, or
the occurrence of such vacancy, a successor Trustee shall be appointed by Act
of the Holders of a majority in principal amount of the Outstanding Notes
delivered to the Company and the retiring Trustee, the successor Trustee so
appointed shall, forthwith upon its acceptance of such appointment, become the
successor Trustee and supersede the successor Trustee appointed by the
Company.  If no successor Trustee shall
have been so appointed by the Company or the Holders and accepted appointment
in the manner hereinafter provided, any Holder who has been a bona fide Holder
of a Note for at least six months may, on behalf of himself and all

 

64

 

others similarly situated, petition any court of competent jurisdiction
for the appointment of a successor Trustee.

 

(f)            The Company shall give notice of
each resignation and each removal of the Trustee and each appointment of a
successor Trustee to the Holders in the manner provided for in
Section 107.  Each notice shall
include the name of the successor Trustee and the address of its Corporate
Trust Office.

 

SECTION 610.
 Acceptance of Appointment by
Successor.  (a)  Every successor Trustee appointed hereunder
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
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.  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.

 

(b)           No successor Trustee shall accept its
appointment unless at the time of such acceptance such successor Trustee shall
be qualified and eligible under this Article.

 

SECTION 611.  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 of 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 Notes shall have
been authenticated, but not delivered, by the Trustee then in office, any
successor by merger, conversion or consolidation to such authenticating Trustee
may adopt such authentication and deliver the Notes so authenticated with the
same effect as if such successor Trustee had itself authenticated such
Notes.  In case at that time any of the
Notes shall not have been authenticated, any successor Trustee may authenticate
such Notes either in the name of any predecessor hereunder or in the name of
the successor Trustee.  In all such cases
such certificates shall have the full force and effect which this Indenture provides
for the certificate of authentication of the Trustee shall have; provided, however, that the right to adopt
the certificate of authentication of any predecessor Trustee or to authenticate
Notes in the name of any predecessor Trustee shall apply only to its successor
or successors by merger, conversion or consolidation.

 

65

 

SECTION 612.  Appointment of Authenticating Agent.  At any time when any of the Notes remain
Outstanding, the Trustee may appoint an Authenticating Agent or Agents with respect
to the Notes which shall be authorized to act on behalf of the Trustee to
authenticate Notes and the Trustee shall give written notice of such
appointment to all Holders of Notes with respect to which such Authenticating
Agent will serve, in the manner provided for in Section 107.  Notes 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.  Any such appointment shall be evidenced by an
instrument in writing signed by a Responsible Officer of the Trustee, and a
copy of such instrument shall be promptly furnished to the Company.  Wherever reference is made in this Indenture
to the authentication and delivery of Notes 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 of not less than $50,000,000 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. 
If at any time an Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section, it 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 all or substantially all 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 give written notice of
such appointment to all Holders of Notes, in the manner provided for in Section
107.  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

 

66

 

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 such compensation
for its services under this Section as shall be agreed in writing between the
Company and such Authenticating Agent.

 

If an
appointment is made pursuant to this Section, the Notes may have endorsed
thereon, in addition to the Trustee’s certificate of authentication, an alternate
certificate of authentication in the following form:

 

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

 

	
   

  	
  THE BANK OF NEW YORK

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  as Authenticating Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  as Authorized Officer

  

 

ARTICLE SEVEN

 

HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY

 

SECTION 701.  Company to Furnish Trustee Names and
Addresses.  The Company will furnish
or cause to be furnished to the Trustee:

 

(1)           semiannually, not
more than 10 days after each Regular Record Date, a list, in such form as the
Trustee may reasonably require, of the names and addresses of the Holders as of
such Regular Record Date; and

 

(2)           at such other times
as the Trustee may reasonably request in writing, within 30 days after receipt
by the Company of any such request, a list of similar form and content to that
in clause (1) hereof as of a date not more than 15 days prior to the time such
list is furnished;

 

provided, however, that if and so long as the
Trustee shall be the Note Registrar, no such list need be furnished.

 

SECTION 702.  Disclosure of Names and Addresses of
Holders.  Every Holder of Notes, by
receiving and holding the same, agrees with the Company and the Trustee that
none of the Company or the Trustee or 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 TIA Section 312, regardless of
the source from which such information was derived, and that the Trustee shall
not be held

 

67

 

accountable by reason of mailing any material pursuant to a request
made under TIA Section 312(b).

 

SECTION 703.  Reports by Trustee.  Within 60 days after May 15 of each year commencing
with the first May 15 after the Issue Date, the Trustee shall transmit to the
Holders of Notes (with a copy to the Company at the address specified in
Section 106), in the manner and to the extent provided in TIA Section 313(c), a
brief report dated as of such May 15 that complies with TIA Section
313(a).  The Trustee also shall comply
with TIA Section 313(b).

 

ARTICLE EIGHT

 

MERGER, CONSOLIDATION OR SALE

OF ALL OR SUBSTANTIALLY ALL ASSETS

 

SECTION 801.  Company May Consolidate, Etc., Only on
Certain Terms.  (a)  The Company may not consolidate or merge with
or into or wind up into (whether or not the Company is the surviving
corporation), or sell, assign, transfer, lease, convey or otherwise dispose of
all or substantially all of its properties or assets, in one or more related
transactions, to any Person unless:

 

(1)           the Company is the
surviving corporation or the Person formed by or surviving any such
consolidation or merger (if other than the Company) or to which such sale,
assignment, transfer, lease, conveyance or other disposition shall have been
made is a corporation organized or existing under the laws of the United
States, any state thereof, the District of Columbia, or any territory thereof
(such Person, as the case may be, being herein called the “Successor Company”);

 

(2)           the Successor
Company, if other than the Company, expressly assumes all the obligations of
the Company under this Indenture and the Notes pursuant to supplemental
indentures or other documents or instruments in form reasonably satisfactory to
the Trustee;

 

(3)           immediately after
such transaction, no Default or Event of Default exists;

 

(4)           immediately after
giving pro forma effect to such transaction, as
if such transaction had occurred at the beginning of the applicable four-quarter
period,

 

(A)  the Successor Company would
be permitted to incur at least $1.00 of additional Indebtedness pursuant to the
Fixed Charge Coverage Ratio test set forth in Section 1011(a) or

 

(B)  the Fixed Charge Coverage
Ratio for the Successor Company and the Restricted Subsidiaries would be
greater than such Ratio for the Company and the Restricted Subsidiaries
immediately prior to such transaction;

 

68

 

(5)           each Guarantor,
unless it is the other party to the transactions described above, in which case
Section 802(1)(B) below shall apply, shall have by supplemental indenture
confirmed that its Guarantee shall apply to such Person’s obligations under
this Indenture and the Notes; and

 

(6)           the Company shall
have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, merger or transfer and such
supplemental indentures, if any, comply with this Indenture.

 

(b)           The Successor Company shall succeed
to, and be substituted for the Company under this Indenture and the Notes.
Notwithstanding clauses (a)(3) and (a)(4) above,

 

(1)           any Restricted
Subsidiary may consolidate with, merge into or transfer all or part of its
properties and assets to the Company and

 

(2)           the Company may
merge with an Affiliate of the Company solely for the purpose of
reincorporating the Company in another State of the United States so long as
the amount of Indebtedness of the Company and the Restricted Subsidiaries is
not increased thereby.

 

SECTION 802.  Guarantors May Consolidate, Etc., Only on
Certain Terms.  Subject to Section
1209, each Guarantor shall not, and the Company shall not permit any Guarantor
to, consolidate or merge with or into or wind up into (whether or not such
Guarantor is the surviving corporation), or sell, assign, transfer, lease,
convey or otherwise dispose of all or substantially all of its properties or
assets in one or more related transactions to, any Person unless:

 

(1)           (A)  such Guarantor is the surviving corporation
or the Person formed by or surviving any such consolidation or merger (if other
than such Guarantor) or to which such sale, assignment, transfer, lease,
conveyance or other disposition shall have been made is a corporation organized
or existing under the laws of the United States, any state thereof, the
District of Columbia, or any territory thereof (such Guarantor or such Person,
as the case may be, being herein called the “Successor Person”);

 

(B)  the Successor Person, if
other than such Guarantor, expressly assumes all the obligations of such
Guarantor under this Indenture and such Guarantor’s Guarantee pursuant to
supplemental indentures or other documents or instruments in form reasonably
satisfactory to the Trustee;

 

(C)  immediately after such
transaction, no Default or Event of Default exists; and

 

(D)  the Company shall have
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel,
each stating that such consolidation, merger or transfer and such supplemental
indentures, if any, comply with this Indenture; or

 

69

 

(2)           the transaction is
made in compliance with Section 1018.

 

Subject to
Section 1209 hereof, the Successor Person shall succeed to, and be substituted
for, such Guarantor under this Indenture and such Guarantor’s Guarantee.  Notwithstanding the foregoing, any Guarantor
may merge into or transfer all or part of its properties and assets to another
Guarantor or the Company.

 

SECTION 803.  Successor Substituted.  Upon any consolidation or merger, or any
sale, assignment, conveyance, transfer, lease or disposition of all or
substantially all of the assets of the Company or any Guarantor in accordance
with Sections 801 and 802 hereof, the successor Person formed by such
consolidation or into which the Company or such Guarantor, as the case may be,
is merged or the successor Person to which such sale, assignment, conveyance,
transfer, lease or disposition is made, shall succeed to, and be substituted
for, and may exercise every right and power of, the Company or such Guarantor,
as the case may be, under this Indenture or the Guarantees, as the case may be,
with the same effect as if such successor Person had been named as the Company
or such Guarantor, as the case may be, herein or the Guarantees, as the case
may be. When a successor Person assumes all obligations of its predecessor
hereunder, the Notes or the Guarantees, as the case may be, such predecessor
shall be released from all obligations; provided
that in the event of a transfer or lease, the predecessor shall not be released
from the payment of principal and interest or other obligations on the Notes or
the Guarantees, as the case may be.

 

ARTICLE
NINE

 

SUPPLEMENTAL
INDENTURES

 

SECTION 901.  Amendments or Supplements Without Consent
of Holders.  Without the consent of
any Holders, the Company, any Guarantor (with respect to a Guarantee or this
Indenture to which it is a party), when authorized by Board Resolutions of
their respective Board of Directors, and the Trustee, at any time and from time
to time, may amend or supplement this Indenture, any Guarantee or the Notes, in
form satisfactory to the Trustee, for any of the following purposes:

 

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

 

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

 

(3)           to comply with
Article Eight hereof;

 

(4)           to provide the
assumption of the Company’s or such Guarantor’s obligations to Holders;

 

70

 

(5)           to make any change
that would provide any additional rights or benefits to the Holders or that
does not adversely affect the legal rights under this Indenture of any such
Holder;

 

(6)           to add covenants for
the benefit of the Holders or to surrender any right or power conferred in this
Indenture upon the Company or any Guarantor;

 

(7)           to comply with
requirements of the SEC in order to effect or maintain the qualification of
this Indenture under the Trust Indenture Act;

 

(8)           to evidence and
provide for the acceptance and appointment under this Indenture of a successor
Trustee pursuant to the requirements of Sections 609 and 610 hereof;

 

(9)           to provide for the
issuance of Exchange Notes or private exchange notes, which are identical to
Exchange Notes except that they are not freely transferable;

 

(10)         to add a Guarantor
under this Indenture;

 

(11)         to conform the text
of this Indenture, Guarantees or the Notes to any provision of the “Description
of the Notes” section of the Offering Circular to the extent that such
provision in the “Description of the Notes” was intended to be a verbatim
recitation of a provision of this Indenture, the Guarantees or the Notes; or

 

(12)         making any amendment
to the provisions of this Indenture relating to the transfer and legending of
Notes; provided, however,
that (A) compliance with this Indenture as so amended would not result in
Notes being transferred in violation of the Securities Act or any applicable
securities law and (B) such amendment does not materially and adversely
affect the rights of Holders to transfer Notes.

 

SECTION 902.  Amendments, Supplements or Waivers with
Consent of Holders.  With the consent
of the Holders of not less than a majority in principal amount of the
Outstanding Notes, by Act of said Holders delivered to the Company and the
Trustee, the Company, any Guarantor (with respect to any Guarantee or this
Indenture to which it is a party), when authorized by Board Resolutions of
their respective Board of Directors, and the Trustee may amend or supplement
this Indenture, any Guarantee or the Notes for the purpose of adding any
provisions hereto or thereto, changing in any manner or eliminating any of the
provisions or of modifying in any manner the rights of the Holders hereunder or
thereunder (including consents obtained in connection with a purchase of, or
tender offer or Exchange Offer for, the Notes) and any existing Default, Event
of Default or compliance with any provision of this Indenture or the Notes may
be waived with the consent of the Holders of not less than a majority in
principal amount of the Outstanding Notes, other than Notes beneficially owned
by the Company or its Affiliates (including consents obtained in connection
with a purchase of or tender offer or exchange offer for Notes); provided, however, that no such amendment,
supplement or

 

71

 

waiver shall, without the consent of the Holder of each Outstanding
Note affected thereby:

 

(1)           reduce the principal
amount of Notes whose Holders must consent to an amendment, supplement or
waiver,

 

(2)           reduce the principal
of or change the Maturity of any such Note or alter or waive the provisions
with respect to the redemption of the Notes (other than Sections 1017 and
1018),

 

(3)           reduce the rate of
or change the time for payment of interest on any Note,

 

(4)           waive a Default or
Event of Default in the payment of principal of or premium, if any, or interest
on the Notes issued under this Indenture, except a rescission of acceleration
of the Notes by the Holders of at least a majority in aggregate principal
amount of the Notes and a waiver of the payment default that resulted from such
acceleration, or in respect of a covenant or provision contained in this
Indenture or any guarantee which cannot be amended or modified without the
consent of all Holders,

 

(5)           make any Note
payable in money other than that stated in the Notes,

 

(6)           make any change in
Section 513 or the rights of Holders to receive payments of principal of or
premium, if any, or interest on the Notes,

 

(7)           make any change in
these amendment and waiver provisions,

 

(8)           impair the right of
any Holder to receive payment of principal of, or interest on such Holder’s
Notes on or after the due dates therefor or to institute suit for the
enforcement of any payment on or with respect to such Holder’s Notes, or

 

(9)           make any change in
Article Fourteen hereof or Section
1204 that would adversely affect the Holders.

 

SECTION 903.  Execution of Amendments, Supplements or
Waivers.  In executing, or accepting
the additional trusts created by, any amendment, supplement or waiver permitted
by this Article or the modifications thereby of the trusts created by this
Indenture, the Trustee shall be provided with, and shall be fully protected in
relying upon, an Officers’ Certificate and Opinion of Counsel stating that the
execution of such amendment, supplement or waiver is authorized or permitted by
this Indenture.  The Trustee may, but
shall not be obligated to, enter into any such amendment, supplement or waiver
which affects the Trustee’s own rights, duties or immunities under this
Indenture or otherwise.

 

72

SECTION 904.  Effect of Amendments, Supplements or
Waivers.  Upon the execution of any
supplemental indenture under this Article, this Indenture shall be modified in
accordance therewith, and such amendment, supplement or waiver shall form a
part of this Indenture for all purposes; and every Holder of Notes theretofore
or thereafter authenticated and delivered hereunder shall be bound thereby.

 

SECTION 905.  Compliance with Trust Indenture Act.  Every supplemental indenture executed
pursuant to the Article shall comply with the requirements of the Trust
Indenture Act as then in effect.

 

SECTION 906.  Reference in Notes to Supplemental
Indentures.  Notes 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 Notes 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 Notes.

 

SECTION 907.  Notice of Supplemental Indentures.  Promptly after the execution by the Company,
any Guarantor and the Trustee of any supplemental indenture pursuant to the
provisions of Section 902, the Company shall give notice thereof to the
Holders of each Outstanding Note affected, in the manner provided for in
Section 107, setting forth in general terms the substance of such
supplemental indenture.

 

ARTICLE TEN

 

COVENANTS

 

SECTION 1001.  Payment of Principal, Premium, if any, and
Interest.  The Company covenants and
agrees for the benefit of the Holders that it will duly and punctually pay the
principal of (and premium, if any) and interest and Special Interest, if any,
on the Notes in accordance with the terms of the Notes and this Indenture.

 

The Company
shall pay interest on overdue principal at the rate specified therefor in the
Notes, and it shall pay interest on overdue installments of interest at the
same rate to the extent lawful.

 

SECTION 1002.  Maintenance of Office or Agency.  The Company will maintain in The City of
New York, an office or agency where Notes may be presented or surrendered
for payment, where Notes may be surrendered for registration of transfer or
exchange and where notices and demands to or upon the Company in respect of the
Notes and this Indenture may be served. 
The designated office of the Trustee shall be such office or agency of
the Company, unless the Company shall designate and maintain some other office
or agency for one or more of such purposes. 
The Company will give prompt written notice to the Trustee of any change
in the location of any such office or agency. 
If at any time the Company shall fail to maintain any such required
office or agency or

 

73

 

shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee, and the Company hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and
demands.

 

The Company
may also from time to time designate one or more other offices or agencies (in
or outside of The City of New York) where the Notes may be presented or
surrendered for any or all such purposes and may from time to time rescind any
such designation; provided, however,
that no such designation or rescission shall in any manner relieve the Company
of its obligation to maintain an office or agency in The City of New York
for such purposes.  The Company will give
prompt written notice to the Trustee of any such designation or rescission and
any change in the location of any such other office or agency.

 

SECTION 1003.  Money for Notes Payments to Be Held in
Trust.  If the Company shall at any
time act as its own Paying Agent, it will, on or before each due date of the
principal of (or premium, if any) or Special Interest, if any, or interest on
any of the Notes, segregate and hold in trust for the benefit of the Persons
entitled thereto a sum sufficient to pay the principal of (or 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 the Notes, it will, on or
before each due date of the principal of (or premium, if any) or interest on
any Notes, 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 such action or any failure so to act.

 

The Company
will cause each Paying Agent (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
Notes 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;

 

(2)           give the Trustee
notice of any Default by the Company (or any other obligor upon the Notes) in
the making of any payment of principal (and premium, if any) or interest; 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.

 

74

 

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 sums.

 

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 (or premium, if any) or interest on
any Note and remaining unclaimed for two years after such principal, premium or
interest has become due and payable shall 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 Note 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 or such Paying Agent,
before being required to make any such repayment, shall 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 the Borough of Manhattan, The City of 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 1004.  Corporate Existence.  Subject to Article Eight, the Company will do
or cause to be done all things necessary to preserve and keep in full force and
effect the corporate existence and that of each Restricted Subsidiary and the
corporate rights (charter and statutory) and franchises of the Company and each
Restricted Subsidiary; provided, however,
that the Company shall not be required to preserve any such right or franchise
if the Board of Directors of the Company shall determine that the preservation
thereof is no longer desirable in the conduct of the business of the Company
and its Subsidiaries as a whole.

 

SECTION
1005.  Payment
of Taxes and Other Claims.  The
Company will pay or discharge or cause to be paid or discharged, before the
same shall become delinquent, (1) all taxes, assessments and governmental
charges levied or imposed upon the Company or any Subsidiary or upon the
income, profits or property of the Company or any Subsidiary and (2) all
lawful claims for labor, materials and supplies, which, if unpaid, might by law
become a lien upon the property of the Company or any Subsidiary; provided, however, that the Company shall
not be required to pay or discharge or cause to be paid or discharged any such
tax, assessment, charge or claim whose amount, applicability or validity is
being contested in good faith by appropriate proceedings and for which
appropriate reserves, if necessary (in the good faith judgment of management of
the Company) are being maintained in accordance with GAAP.

 

SECTION 1006.  Maintenance of Properties.  The Company will cause all properties owned
by the Company or any Restricted Subsidiary or used or held for use in

 

75

 

the conduct of its business or the business of any Restricted
Subsidiary to be maintained and kept in good condition, repair and working
order and supplied with all necessary equipment and will cause to be made all
necessary repairs, renewals, replacements, betterments and improvements
thereof, all as in the judgment of the Company may be necessary so that the
business carried on in connection therewith may be properly and advantageously
conducted at all times; provided, however,
that nothing in this Section shall prevent the Company from discontinuing the
maintenance of any of such properties if such discontinuance is, in the
judgment of the Company, desirable in the conduct of its business or the
business of any Restricted Subsidiary.

 

SECTION 1007.  Insurance.  The Company will at all times keep all of its
and its Subsidiaries’ properties which are of an insurable nature insured with
insurers, believed by the Company to be responsible, against loss or damage to
the extent that property of similar character is usually so insured by
corporations similarly situated and owning like properties.

 

SECTION 1008.  Statement by Officers as to Default.  (a) The Company will deliver to the Trustee
within 120 days after the end of each fiscal year, an Officers’ Certificate
stating that a review of the activities of the Company and its Restricted
Subsidiaries during the preceding quarter or the preceding fiscal year, as the
case may be, has been made under the supervision of the signing officers with a
view to determining whether it has kept, observed, performed and fulfilled, and
has caused each of its Restricted Subsidiaries to keep, observe, perform and
fulfill its obligations under this Indenture and further stating, as to each
such officer signing such certificate, that, to the best of his or her
knowledge, the Company during such preceding quarter or the preceding fiscal
year, as the case may be, has kept, observed, performed and fulfilled, and has
caused each of its Restricted Subsidiaries to keep, observe, perform and
fulfill each and every such covenant contained in this Indenture and no Default
or Event of Default occurred during such quarter or year, as the case may be,
and at the date of such certificate there is no Default or Event of Default
which has occurred and is continuing or, if such signers do know of such
Default or Event of Default, the certificate shall describe its status, with
particularity and that, to the best of his or her knowledge, no event has
occurred and remains by reason of which payments on the account of the
principal of or interest, if any, on the Notes is prohibited or if such event
has occurred, a description of the event and what action each is taking or
proposes to take with respect thereto.  The
Officers’ Certificate shall also notify the Trustee should the Company elect to
change the manner in which it fixes its fiscal year-end.  For purposes of this Section 1008(a), such
compliance shall be determined without regard to any period of grace or
requirement of notice under this Indenture.

 

(b)           (1)  When any Default or
Event of Default has occurred and is continuing under this Indenture, or (2) if
the trustee for or the holder of any other evidence of Indebtedness of the
Company or any Restricted Subsidiary gives any notice or takes any other action
with respect to a claimed default (other than with respect to Indebtedness in
the principal amount of less than $25,000,000), the Company shall deliver to
the Trustee by registered or certified mail or facsimile transmission an

 

76

 

Officers’ Certificate specifying such event, notice or other action
within five Business Days of its occurrence.

 

SECTION 1009.  Reports and Other Information.  (a) 
Notwithstanding that the Company may not be subject to the reporting
requirements of Section 13 or Section 15(d) of the Exchange Act or otherwise
report on an annual and quarterly basis on forms provided for such annual and
quarterly reporting pursuant to rules and regulations promulgated by the SEC,
the Company shall file with the SEC (and make available to the Trustee and
Holders (without exhibits), without cost to each Holder, within 15 days after
it files with the SEC):

 

(1)           within 90 days
(or any other time period then in effect under the rules and regulations of the
Exchange Act with respect to the filing of a Form 10-K) after the end of each
fiscal year, annual reports on Form 10-K, or any successor or comparable
form, containing the information required to be contained therein, or required
in such successor or comparable form;

 

(2)           within 45 days
(or any other time period then in effect under the rules and regulations of the
Exchange Act with respect to the filing of a Form 10-Q) after the end of each
of the first three fiscal quarters of each fiscal year, reports on
Form 10-Q, containing the information required to be contained therein, or
any successor or comparable form;

 

(3)           promptly from time
to time after the occurrence of an event required to be therein reported, such
other reports on Form 8-K, or any successor or comparable form; and

 

(4)           any other
information, documents and other reports which the Company would be required to
file with the SEC if it were subject to Section 13 or 15(d) of the
Exchange Act;

 

provided that the Company shall not be so
obligated to file such reports with the SEC if the SEC does not permit such
filing, in which event the Company shall make available such information to
prospective purchasers of the Notes, in addition to providing such information
to the Trustee and the Holders, in each case within 15 days after the time
the Company would be required to file such information with the SEC, if it were
subject to Sections 13 or 15(d) of the Exchange Act.

 

Delivery of
such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute
constructive notice of any information contained therein or determinable from
information contained therein, including the Company’s compliance with any of
its covenants hereunder (as to which the Trustee is entitled to rely
exclusively on Officers’ Certificates).

 

In the event
that any direct or indirect parent company of the Company becomes a Guarantor
of the Notes, this Indenture will permit the Company to satisfy its obligations
under this Section 1009 with respect to financial information relating to the

 

77

 

Company by furnishing financial
information relating to such parent; provided
that the same is accompanied by consolidating information that
explains in reasonable detail the differences between the information relating
to such parent, on the one hand, and the information relating to the Company
and the Restricted Subsidiaries on a standalone basis, on the other hand.

 

(b)           Notwithstanding the foregoing, such
requirements shall be deemed satisfied prior to the commencement of the
Exchange Offer or the effectiveness of the Shelf Registration Statement by the
filing with the SEC of the Exchange Offer Registration Statement or Shelf
Registration Statement within the time periods specified in the Registration
Rights Agreement, and any amendments thereto, with such financial information
that satisfies Regulation S-X of the Securities Act.

 

SECTION 1010.  Limitation on Restricted Payments.  (a) 
The Company shall not, and shall not permit any Restricted Subsidiary
to, directly or indirectly:

 

(1)           declare or pay any
dividend or make any distribution on account of the Company’s or any Restricted
Subsidiary’s Equity Interests, including any dividend or distribution payable
in connection with any merger or consolidation other than:

 

(A)  dividends or distributions
by the Company payable in Equity Interests (other than Disqualified Stock) of
the Company or in options, warrants or other rights to purchase such Equity
Interests; or

 

(B)  dividends or distributions
by a Restricted Subsidiary so long as, in the case of any dividend or
distribution payable on or in respect of any class or series of securities
issued by a Subsidiary other than a Wholly-Owned Subsidiary, the Company or a
Restricted Subsidiary receives at least its pro rata share of such dividend or
distribution in accordance with its Equity Interests in such class or series of
securities;

 

(2)           purchase, redeem,
defease or otherwise acquire or retire for value any Equity Interests of the
Company or any direct or indirect parent of the Company, including in
connection with any merger or consolidation;

 

(3)           make any principal
payment on, or redeem, repurchase, defease or otherwise acquire or retire for
value in each case, prior to any scheduled repayment, sinking fund payment or
maturity, any Subordinated Indebtedness, other than:

 

(A)  Indebtedness permitted under
clauses (7) and (8) of Section 1011(b); or

 

(B)  the purchase, repurchase or
other acquisition of Subordinated Indebtedness purchased in anticipation of
satisfying a sinking fund obligation, principal installment or final maturity,
in each case due within one year of the date of purchase, repurchase or
acquisition; or

 

78

 

(4)           make any Restricted
Investment;

 

(all such
payments and other actions set forth in clauses (1) through (4) above
being collectively referred to as “Restricted
Payments”), unless, at the time of such Restricted Payment:

 

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

 

(B)  immediately after giving
effect to such transaction on a pro forma
basis, the Company could incur $1.00 of additional Indebtedness under
Section 1011(a); and

 

(C)  such Restricted Payment,
together with the aggregate amount of all other Restricted Payments made by the
Company and its Restricted Subsidiaries after the Issue Date (including
Restricted Payments permitted by clauses (1), (2) (with respect to the
payment of dividends on Refunding Capital Stock pursuant to clause (B)
thereof only), (5), (6)(A) and (C) and (9) of Section 1010(b), but
excluding all other Restricted Payments permitted by Section 1010(b)), is less
than

 

(1)      50%
of the Consolidated Net Income of the Company for the period (taken as one
accounting period) from the beginning of the first fiscal quarter commencing
after the Issue Date, to the end of the Company’s most recently ended fiscal
quarter for which internal financial statements are available at the time of
such Restricted Payment, or, in the case such Consolidated Net Income for such
period is a deficit, minus 100% of such deficit, plus

 

(2)      100%
of the aggregate net cash proceeds and the fair market value, as determined in
good faith by the Board of Directors of the Company, of marketable securities
or other property received by the Company since immediately after the Issue
Date (other than net cash proceeds to the extent such net cash proceeds have
been used to incur Indebtedness, Disqualified Stock or preferred stock pursuant
to Section 1011(b)(12) from the issue or sale of

 

(x)      Equity
Interests of the Company, including Retired Capital Stock (as defined below),
but excluding cash proceeds and the fair market value, as determined in good
faith by the Board of Directors of the Company, of marketable securities or
other property received from the sale of

 

(A)     Equity Interests to members of management,
directors or consultants of the Company, any direct or indirect parent entity
of the Company and the Company’s Subsidiaries after the Issue Date to the
extent

 

79

 

such amounts
have been applied to Restricted Payments made in accordance with Section 1010(b)(4)
and

 

(B)     Designated Preferred Stock

 

and to the extent actually contributed to the
Company, Equity Interests of the Company’s direct or indirect parent entities
(excluding contributions of the proceeds from the sale of Designated Preferred
Stock of such entities or contributions to the extent such amounts have been
applied to Restricted Payments made in accordance with Section 1010(b)(4)
or

 

(y)      debt
securities of the Company that have been converted into or exchanged for such
Equity Interests of the Company;

 

provided, however,
that this clause (2) shall not include the proceeds from
(a) Refunding Capital Stock (as defined below), (b) Equity Interests
or converted debt securities of the Company sold to a Restricted Subsidiary or
the Company, as the case may be, (c) Disqualified Stock or debt securities
that have been converted into Disqualified Stock or (d) Excluded
Contributions, plus

 

(3)      100%
of the aggregate amount of cash and
the fair market value, as determined in good faith by the Board of Directors of
the Company, of marketable securities or other property contributed to the
capital of the Company following the Issue Date (other than net cash proceeds
to the extent such net cash proceeds have been used to incur Indebtedness,
Disqualified Stock or preferred stock pursuant to Section 1011(b)(12)) (other
than by a Restricted Subsidiary and other than by any Excluded Contributions), plus

 

(4)      to
the extent not already included in Consolidated Net Income, 100% of the
aggregate amount received in cash and the fair market value, as determined in
good faith by the Board of Directors of the Company, of marketable securities
or other property received by means of

 

(A)     the
sale or other disposition (other than to the Company or a Restricted
Subsidiary) of Restricted Investments made by the Company and its Restricted
Subsidiaries and repurchases and redemptions of such Restricted Investments
from the Company and its Restricted Subsidiaries and repayments of loans or
advances which constitute Restricted Investments by the Company and its
Restricted Subsidiaries or

 

80

 

(B)     the
sale (other than to the Company or a Restricted Subsidiary) of the stock of an
Unrestricted Subsidiary or a distribution from an Unrestricted Subsidiary
(other than in each case to the extent the Investment in such Unrestricted
Subsidiary was made by the Company or a Restricted Subsidiary pursuant to
clauses (7) or (10) of Section 1010(b) or to the extent such
Investment constituted a Permitted Investment) or a dividend from an
Unrestricted Subsidiary plus

 

(5)      in
the case of the redesignation of an Unrestricted Subsidiary as a Restricted
Subsidiary, the fair market value of the Investment in such Unrestricted
Subsidiary, as determined by the Board of Directors of the Company in good
faith or if, in the case of an Unrestricted Subsidiary, such fair market value
may exceed $25.0 million, in writing by an independent investment banking
firm of nationally recognized standing, at the time of the redesignation of
such Unrestricted Subsidiary as a Restricted Subsidiary, other than an
Unrestricted Subsidiary to the extent the Investment in such Unrestricted
Subsidiary was made by the Company or a Restricted Subsidiary pursuant to
clauses (7) or (10) of Section 1010(b) or to the extent such
Investment constituted a Permitted Investment.

 

(b)           The foregoing provisions shall not
prohibit:

 

(1)           Subject to clauses
(16) and (17) below, the payment of any dividend within 60 days after
the date of declaration thereof, if at the date of declaration such payment
would have complied with the provisions of this Indenture;

 

(2)           (A)          the
redemption, repurchase, retirement or other acquisition of any Equity Interests
(“Retired Capital Stock”) or
Subordinated Indebtedness of the Company, or any Equity Interests of any direct
or indirect parent entity of the Company, in exchange for, or out of the
proceeds of the substantially concurrent sale (other than to a Restricted
Subsidiary) of, Equity Interests of the Company (in each case, other than any
Disqualified Stock) (“Refunding
Capital Stock”) and

 

(B)  if
immediately prior to the retirement of Retired Capital Stock, the declaration
and payment of dividends thereon was permitted under clause (6) of this
Section 1010(b), the declaration and payment of dividends on the Refunding
Capital Stock (other than Refunding Capital Stock the proceeds of which were
used to redeem, repurchase, retire or otherwise acquire any Equity Interests of
any direct or indirect parent entity of the Company) in an aggregate amount per
year no greater than the aggregate amount of dividends per annum that was
declarable and payable on such Retired Capital Stock immediately prior to such
retirement;

 

81

 

(3)           the redemption,
repurchase or other acquisition or retirement of Subordinated Indebtedness of
the Company made by exchange for, or out of the proceeds of the substantially
concurrent sale of, new Indebtedness of the Company which is incurred in
compliance with Section 1011 so long as:

 

(A)  the principal amount of such
new Indebtedness does not exceed the principal amount of (or accreted value, if
applicable), plus any accrued and unpaid interest on the Subordinated
Indebtedness being so redeemed, repurchased, acquired or retired for value,
plus the amount of any reasonable premium required to be paid under the terms
of the instrument governing the Subordinated Indebtedness being so redeemed,
repurchased, acquired or retired and any reasonable fees and expenses incurred
in connection with the issuance of such new Indebtedness,

 

(B)  such Indebtedness is
subordinated to the Notes at least to the same extent as such Subordinated
Indebtedness so purchased, exchanged, redeemed, repurchased, acquired or
retired for value,

 

(C)  such Indebtedness has a
final scheduled maturity date equal to or later than the final scheduled
maturity date of the Subordinated Indebtedness being so redeemed, repurchased,
acquired or retired and

 

(D)  such Indebtedness has a
Weighted Average Life to Maturity equal to or greater than the remaining
Weighted Average Life to Maturity of the Subordinated Indebtedness being so
redeemed, repurchased, acquired or retired;

 

(4)           a Restricted Payment
to pay for the repurchase, retirement or other acquisition or retirement for
value of common Equity Interests of the Company or any of its direct or
indirect parent entities held by any future, present or former employee,
director or consultant of the Company, any of its Subsidiaries or any of its
direct or indirect parent entities pursuant to any management equity plan or
stock option plan or any other management or employee benefit plan or
agreement; provided,  however,
that the aggregate Restricted Payments made under this clause (4) do not
exceed in any calendar year $10.0 million (with unused amounts in any
calendar year being carried over to succeeding calendar years subject to a
maximum (without giving effect to the following proviso) of $20.0 million
in any calendar year); provided further that such amount in any calendar
year may be increased by an amount not to exceed:

 

(A)  the cash proceeds from the
sale of Equity Interests of the Company and, to the extent contributed to the
Company, Equity Interests of any of the Company’s direct or indirect parent
entities, in each case to members of management, directors or consultants of
the Company, any of its Subsidiaries or any of its direct or indirect parent
entities that occurs after the Issue Date, to the extent the cash proceeds from
the sale of such Equity Interests have not otherwise been applied to the
payment of

 

82

 

Restricted
Payments by virtue of clause (C)(4) of the first paragraph of
Section 1010; plus

 

(B)  the cash proceeds of key man
life insurance policies received by the Company and its Restricted Subsidiaries
after the Issue Date less

 

(C)  the amount of any Restricted
Payments previously made pursuant to clauses (A) and (B) of this
Section 1010(b)(4);

 

and provided further that
cancellation of Indebtedness owing to the Company from members of management of
the Company, any of its direct or indirect parent entities or any Restricted
Subsidiary in connection with a repurchase of Equity Interests of the Company
or any of its direct or indirect parent entities will not be deemed to
constitute a Restricted Payment for purposes of this covenant or any other
provision of this Indenture;

 

(5)           the declaration and
payment of dividends to holders of any class or series of Disqualified Stock of
the Company or any other Restricted Subsidiary issued in accordance with the
covenant described under Section 1011 to the extent such dividends are included
in the definition of Fixed Charges;

 

(6)           (A)  the declaration and payment of dividends to
holders of any class or series of Designated Preferred Stock (other than
Disqualified Stock) issued by the Company after the Issue Date;

 

(B)  the declaration and payment
of dividends to a direct or indirect parent entity of the Company, the proceeds
of which will be used to fund the payment of dividends to holders of any class
or series of Designated Preferred Stock (other than Disqualified Stock) of such
parent entity issued after the Issue Date; provided
that the amount of dividends paid pursuant to this clause (B) shall not
exceed the aggregate amount of cash actually contributed to the Company from
the sale of such Designated Preferred Stock; or

 

(C)  the declaration and payment
of dividends on Refunding Capital Stock in excess of the dividends declarable
and payable thereon pursuant to Section 1010(b)(2);

 

provided, however, in the case of each of (A),
(B) and (C) of this clause (6), that for the most recently ended
four full fiscal quarters for which internal financial statements are available
immediately preceding the date of issuance of such Designated Preferred Stock
or the declaration of such dividends on Refunding Capital Stock, after giving
effect to such issuance or declaration on a pro forma
basis, the Company and the Restricted Subsidiaries would have had a Fixed
Charge Coverage Ratio of at least 2.00 to 1.00;

 

83

 

(7)           Investments in
Unrestricted Subsidiaries having an aggregate fair market value, taken together
with all other Investments made pursuant to this clause (7) that are at
the time outstanding, without giving effect to the sale of an Unrestricted
Subsidiary to the extent the proceeds of such sale do not consist of cash or
marketable securities, not to exceed $30.0 million at the time of such
Investment (with the fair market value of each Investment being measured at the
time made and without giving effect to subsequent changes in value);

 

(8)           repurchases of
Equity Interests deemed to occur upon exercise of stock options or warrants if
such Equity Interests represent a portion of the exercise price of such options
or warrants;

 

(9)           the declaration and
payment of dividends on the Company’s common stock, following the first public
offering of the Company’s common stock or the common stock of any of its direct
or indirect parent companies after the Issue Date, of up to 6% per annum of the
net cash proceeds received by or contributed to the Company in or from any such
public offering, other than public offerings with respect to the Company’s
common stock registered on Form S-8 and other than any public sale
constituting an Excluded Contribution;

 

(10)         Investments that are
made with Excluded Contributions;

 

(11)         other Restricted
Payments in an aggregate amount not to exceed $50.0 million;

 

(12)         distributions or
payments of Receivables Fees;

 

(13)         any Restricted
Payment used to fund the Transactions and the fees and expenses related thereto
or owed to Affiliates, in each case to the extent permitted by Section 1013;

 

(14)         the repurchase,
redemption or other acquisition or retirement for value of any Subordinated
Indebtedness pursuant to the provisions of Section 1017 and Section 1018; provided that all notes tendered by holders of the notes in
connection with a Change of Control Offer or Asset Sale Offer, as applicable,
have been repurchased, redeemed or acquired for value;

 

(15)         the declaration and
payment of dividends by the Company to, or the making of loans to, any direct
or indirect parent in amounts required for any direct or indirect parent
companies to pay:

 

(A)  franchise taxes and other
fees, taxes and expenses required to maintain their corporate existence,

 

(B)  federal, state and local
income taxes, to the extent such income taxes are attributable to the income of
the Company and the Restricted Subsidiaries and, to the extent of the amount
actually received

 

84

 

from its
Unrestricted Subsidiaries, in amounts required to pay such taxes to the extent
attributable to the income of such Unrestricted Subsidiaries,

 

(C)  customary salary, bonus and
other benefits payable to officers and employees of any direct or indirect
parent company of the Company to the extent such salaries, bonuses and other
benefits are attributable to the ownership or operation of the Company and the
Restricted Subsidiaries, and

 

(D)  general corporate overhead
expenses of any direct or indirect parent company of the Company to the extent
such expenses are attributable to the ownership or operation of the Company and
the Restricted Subsidiaries;

 

(16)         on or after
December 1, 2008, the declaration and payment of a dividend or the making
of a distribution to Holdco to pay cash interest as and when due on the Senior
Discount Notes pursuant to the Senior Discount Indenture as in effect on the
Issue Date in an amount equal to such cash interest payments; provided,
however, that such dividends or distributions made pursuant to this
clause (16) shall not be made more than three business days prior to the
date on which such interest is due pursuant to the Senior Discount Indenture;
and

 

(17)         the
declaration and payment of a dividend or the making of a distribution to Holdco
to redeem, defease, repurchase or otherwise acquire or retire (including by way
of satisfaction and discharge of the terms of the Senior Discount Indenture)
the Senior Discount Notes (other than any Senior Discount Notes beneficially
owned by any Affiliate of the Company) in accordance with the terms of the
Senior Discount Indenture as in effect on the Issue Date, in an amount equal to
such redemption, defeasance, repurchase or other acquisition payment; provided,
however, that such dividends or distributions pursuant to this clause (17)
may only be declared or made, if on the date such dividend or distribution is
declared or made as applicable, the Company’s Debt to EBITDA Ratio would be
equal to or less than 4.25 to 1.00, determined on a pro forma
basis (including after giving pro forma
effect to any such dividend or distribution and any Indebtedness incurred in
connection with the payment of any such dividend or distribution); provided,
further, however, that such dividends or distributions made pursuant to this
clause (17) shall not be made more than three business days prior to the date
on which such redemption, defeasance, repurchase or other acquisition payment
is to be made pursuant to the Senior Discount Indenture as in effect on the
Issue Date;

 

provided, however, that at the time of, and
after giving effect to, any Restricted Payment permitted under clauses (5),
(6), (11), (16) and (17) of this Section 1010(b), no Default or Event of
Default shall have occurred and be continuing or would occur as a consequence
thereof.

 

85

 

(c)           As of the time of issuance of the
Notes, all of the Company’s Subsidiaries shall be Restricted Subsidiaries. The
Company shall not permit any Unrestricted Subsidiary to become a Restricted
Subsidiary except pursuant to the last sentence of the definition of “Unrestricted
Subsidiary” in Section 102 of this Indenture. 
For purposes of designating any Restricted Subsidiary as an Unrestricted
Subsidiary, all outstanding Investments by the Company and its Restricted
Subsidiaries (except to the extent repaid) in the Subsidiary so designated
shall be deemed to be Restricted Payments in an amount determined as set forth
in the last sentence of the definition of “Investment” in Section 102 of this
Indenture.  Such designation will be
permitted only if a Restricted Payment in such amount would be permitted at
such time, whether pursuant to Section 1010(a) or under clauses (7), (10) or
(11) of Section 1010(b), or pursuant to the definition of “Permitted
Investments,” and if such Subsidiary otherwise meets the definition of an Unrestricted
Subsidiary. Unrestricted Subsidiaries shall not be subject to any of the
restrictive covenants set forth in this Indenture.

 

SECTION 1011.  Limitation on Incurrence of Indebtedness
and Issuance of Disqualified Stock.  (a)  The Company shall not, and shall not permit
any Restricted Subsidiary to, directly or indirectly, create, incur, issue,
assume, guarantee or otherwise become directly or indirectly liable,
contingently or otherwise, (collectively, “incur” and collectively, an “incurrence”)
with respect to any Indebtedness (including Acquired Indebtedness) and the
Company shall not issue any shares of Disqualified Stock and shall not permit
any Restricted Subsidiary to issue any shares of Disqualified Stock or
preferred stock; provided, however, that the Company may incur
Indebtedness (including Acquired Indebtedness) or issue shares of Disqualified
Stock, and any Restricted Subsidiary may incur Indebtedness (including Acquired
Indebtedness), issue shares of Disqualified Stock and issue shares of preferred
stock, if the Fixed Charge Coverage Ratio
for the Company’s and the Restricted Subsidiaries’ most recently ended four
fiscal quarters for which internal financial statements are available
immediately preceding the date on which such additional Indebtedness is
incurred or such Disqualified Stock or preferred stock is issued would have
been at least 2.00 to 1.00, determined on a pro forma basis (including a pro forma application of the net proceeds therefrom), as if
the additional Indebtedness had been incurred, or the Disqualified Stock or
preferred stock had been issued, as the case may be, and the application of
proceeds therefrom had occurred at the beginning of such four-quarter period; provided that the amount of Indebtedness
(other than Acquired Indebtedness), Disqualified Stock and preferred stock that
may be incurred pursuant to the foregoing by Restricted Subsidiaries that are
not Guarantors of the Notes shall not exceed $100.0 million at any one
time outstanding.

 

(b)           The foregoing limitations shall not
apply to:

 

(1)           the incurrence of
Indebtedness under Credit Facilities by the Company or any of the Restricted
Subsidiaries and the issuance and creation of letters of credit and bankers’
acceptances thereunder (with letters of credit and bankers’ acceptances being
deemed to have a principal amount equal to the face amount thereof), up to an
aggregate principal amount of $1,420.0 million outstanding at any one
time;  provided,
however, that the aggregate
amount of

 

86

 

Indebtedness
incurred by Restricted Subsidiaries (other than Guarantors) pursuant to this
clause (1) may not exceed $200.0 million outstanding at any one time;

 

(2)           the incurrence by
the Company and any Guarantor of Indebtedness represented by the Notes
(including any Guarantee) (other than any Additional Notes);

 

(3)           Existing
Indebtedness (other than Indebtedness described in clauses (1) and (2) above);

 

(4)           Indebtedness
(including Capitalized Lease Obligations), Disqualified Stock and preferred
stock incurred by the Company or any of its Restricted Subsidiaries, to finance
the purchase, lease or improvement of property (real or personal) or equipment
that is used or useful in a Similar Business, whether through the direct
purchase of assets or the Capital Stock of any Person owning such assets, in an
aggregate principal amount which, when aggregated with the principal amount of
all other Indebtedness, Disqualified Stock and preferred stock then outstanding
and incurred pursuant to this clause (4) and including all Refinancing
Indebtedness incurred to refund, refinance or replace any other Indebtedness,
Disqualified Stock and preferred stock incurred pursuant to this
clause (4), does not exceed the greater of (i) $120.0 million
and (ii) 5.00% of Total Assets.

 

(5)           Indebtedness
incurred by the Company or any Restricted Subsidiary constituting reimbursement
obligations with respect to letters of credit issued in the ordinary course of
business, including letters of credit in respect of workers’ compensation
claims, or other Indebtedness with respect to reimbursement type obligations
regarding workers’ compensation claims; provided, however,
that upon the drawing of such letters of credit or the incurrence of such
Indebtedness, such obligations are reimbursed within 30 days following
such drawing or incurrence;

 

(6)           Indebtedness arising
from agreements of the Company or a Restricted Subsidiary providing for
indemnification, adjustment of purchase price or similar obligations, in each
case, incurred or assumed in connection with the disposition of any business,
assets or a Subsidiary, other than guarantees of Indebtedness incurred by any
Person acquiring all or any portion of such business, assets or a Subsidiary
for the purpose of financing such acquisition; provided,
however, that

 

(A)  such Indebtedness is not
reflected on the balance sheet of the Company or any Restricted Subsidiary
(contingent obligations referred to in a footnote to financial statements and
not otherwise reflected on the balance sheet shall not be deemed to be
reflected on such balance sheet for purposes of this clause (6)(A)) and

 

87

 

(B)  the maximum assumable
liability in respect of all such Indebtedness shall at no time exceed the gross
proceeds including non-cash proceeds (the fair market value of such non-cash
proceeds being measured at the time received and without giving effect to any
subsequent changes in value) actually received by the Company and the
Restricted Subsidiaries in connection with such disposition;

 

(7)           Indebtedness of the
Company to a Restricted Subsidiary;  provided that any such Indebtedness owing to a Restricted Subsidiary
that is not a Guarantor is subordinated in right of payment to the Notes; provided further that any subsequent issuance or transfer of any Capital Stock
or any other event which results in any such Restricted Subsidiary ceasing to
be a Restricted Subsidiary or any other subsequent transfer of any such
Indebtedness (except to the Company or another Restricted Subsidiary) shall be
deemed, in each case to be an incurrence of such Indebtedness;

 

(8)           Indebtedness of a
Restricted Subsidiary to the Company or another Restricted Subsidiary; provided that:

 

(A)  any such Indebtedness is
made pursuant to an intercompany note and

 

(B)  if a Guarantor incurs such
Indebtedness to a Restricted Subsidiary that is not a Guarantor, such
Indebtedness is subordinated in right of payment to the Guarantee of such
Guarantor;

 

provided further that
any subsequent transfer of any such Indebtedness (except to the Company or
another Restricted Subsidiary) shall be deemed, in each case, to be an
incurrence of such Indebtedness;

 

(9)           shares of preferred
stock of a Restricted Subsidiary issued to the Company or another Restricted
Subsidiary; provided that any
subsequent issuance or transfer of any Capital Stock or any other event which
results in any such Restricted Subsidiary ceasing to be a Restricted Subsidiary
or any other subsequent transfer of any such shares of preferred stock (except
to the Company or another Restricted Subsidiary) shall be deemed in each case
to be an issuance of such shares of preferred stock;

 

(10)         Hedging Obligations
(excluding Hedging Obligations entered into for speculative purposes) for the
purpose of limiting interest rate risk, exchange rate risk with respect to any
Indebtedness permitted to be incurred pursuant to this Section 1011 or
commodity pricing risk;

 

(11)         obligations in
respect of performance, bid, appeal and surety bonds and completion guarantees
provided by the Company or any Restricted Subsidiary in the ordinary course of
business;

 

88

 

(12)         Indebtedness,
Disqualified Stock and preferred stock of the Company or any Restricted Subsidiary
not otherwise permitted hereunder in an aggregate principal amount or
liquidation preference, which when aggregated with the principal amount and
liquidation preference of all other Indebtedness, Disqualified Stock and
preferred stock then outstanding and incurred pursuant to this
clause (12), does not at any one time outstanding exceed the sum of
(i) $125.0 million and (ii) 100%
of the net cash proceeds received by the Company since immediately after the
Issue Date from the issue or sale of Equity Interests of the Company or cash
contributed to the capital of the Company (in each case, other than proceeds of
Disqualified Stock or sales of Equity Interests to the Company or any of its
Subsidiaries) as determined in accordance with clauses (2) and (3) of
clause (C) of the first paragraph of Section 1010 to the extent such net
cash proceeds or cash have not been applied pursuant to such clauses to make
Restricted Payments or to make other investments, payments or exchanges
pursuant to Section 1010(b) or to make Permitted Investments (other than
Permitted Investments specified in clauses (1) and (3) of the
definition thereof) (it being understood that any Indebtedness, Disqualified
Stock or preferred stock incurred pursuant to this clause (12) shall cease
to be deemed incurred or outstanding for purposes of this clause (12) but
shall be deemed incurred for the purposes of Section 1011(a) from and after the
first date on which the Company or such Restricted Subsidiary could have
incurred such Indebtedness, Disqualified Stock or preferred stock under Section
1011(a) without reliance on this clause (12));

 

(13)         the incurrence by the
Company or any Restricted Subsidiary of Indebtedness, Disqualified Stock or
preferred stock which serves to refund or refinance any Indebtedness,
Disqualified Stock or preferred stock incurred as permitted under Section
1011(a) and clauses (2) and (3) above, this clause (13) and
clause (14) below or any Indebtedness, Disqualified Stock or preferred stock
issued to so refund or refinance such Indebtedness, Disqualified Stock or
preferred stock including additional Indebtedness, Disqualified Stock or
preferred stock incurred to pay premiums (including reasonable tender
premiums), defeasance costs and fees in connection therewith (the “Refinancing Indebtedness”) prior to
its respective maturity; provided,  however,
that such Refinancing Indebtedness

 

(A)  has a Weighted Average Life
to Maturity at the time such Refinancing Indebtedness is incurred which is not
less than the remaining Weighted Average Life to Maturity of the Indebtedness,
Disqualified Stock or preferred stock being refunded or refinanced,

 

(B)  to the extent such
Refinancing Indebtedness refinances (i) Indebtedness subordinated or pari passu to the Notes or any Guarantee
of the Notes, such Refinancing Indebtedness is subordinated or pari passu to the Notes or such Guarantee
at least to the same extent as the Indebtedness being refinanced or refunded or
(ii) Disqualified Stock or preferred stock, such Refinancing Indebtedness
must be Disqualified Stock or preferred stock, respectively and

 

89

 

(C)  shall not include (i)
Indebtedness, Disqualified Stock or preferred stock of a Subsidiary that
refinances Indebtedness, Disqualified Stock or preferred stock of the Company,
(ii) Indebtedness, Disqualified Stock or preferred stock of a Subsidiary that
is not a Guarantor that refinances Indebtedness, Disqualified Stock or
preferred stock of a Guarantor or (iii) Indebtedness, Disqualified Stock or
preferred stock of the Company or a Restricted Subsidiary that refinances
Indebtedness, Disqualified Stock or preferred stock of an Unrestricted
Subsidiary;

 

and provided further that
subclause (A) above of this clause (13) shall not apply to any
refunding or refinancing of any Indebtedness outstanding under the Senior
Credit Facilities;

 

(14)         Indebtedness,
Disqualified Stock or preferred stock of Persons that are acquired by the
Company or any Restricted Subsidiary or merged into the Company or a Restricted
Subsidiary in accordance with the terms of this Indenture; provided that such Indebtedness,
Disqualified Stock or preferred stock is not incurred in contemplation of such
acquisition or merger; provided
further that after giving effect to such acquisition or merger, either

 

(A)  the Company would be
permitted to incur at least $1.00 of additional Indebtedness pursuant to the
Fixed Charge Coverage Ratio test set forth in Section 1011(a), or

 

(B)  the Fixed Charge Coverage
Ratio of the Company and the Restricted Subsidiaries is greater than
immediately prior to such acquisition or merger;

 

(15)         Indebtedness arising
from the honoring by a bank or other financial institution of a check, draft or
similar instrument drawn against insufficient funds in the ordinary course of
business, provided that such
Indebtedness is extinguished within two Business Days of its incurrence;

 

(16)         Indebtedness of the
Company or any Restricted Subsidiary supported by a letter of credit issued
pursuant to the Senior Credit Facilities, in a principal amount not in excess
of the stated amount of such letter of credit; and

 

(17)         (A)          any guarantee by the Company or a
Guarantor of Indebtedness or other obligations of any Restricted Subsidiary so
long as the incurrence of such Indebtedness incurred by such Restricted
Subsidiary is permitted under the terms of this Indenture, or

 

(B)           any guarantee by a
Restricted Subsidiary of Indebtedness of the Company, provided that such guarantee is incurred
in accordance with Section 1015.

 

(c)           For purposes of determining
compliance with this Section 1011,

 

90

 

(1)           in the event that an
item of Indebtedness, Disqualified Stock or preferred stock meets the criteria
of more than one of the categories of permitted Indebtedness, Disqualified
Stock or preferred stock described in clauses (1) through (17) of
this Section 1011(b) or is entitled to be incurred pursuant to Section 1011(a),
the Company shall, in its sole discretion, classify or reclassify such item of
Indebtedness, Disqualified Stock or preferred stock (or any portion thereof)
and shall only be required to include the amount and type of such Indebtedness,
Disqualified Stock or preferred stock in one of the above clauses of this
Section 1011(b); provided that all Indebtedness
outstanding under the Credit Facilities after the application of the net
proceeds from the sale of the Notes shall be treated as incurred on the Issue
Date under Section 1011(b)(1); and

 

(2)           at the time of
incurrence, the Company shall be entitled to divide and classify an item of
Indebtedness in more than one of the types of Indebtedness described above.

 

Accrual of
interest, the accretion of accreted value and the payment of interest in the
form of additional Indebtedness, Disqualified Stock or preferred stock shall
not be deemed to be an incurrence of Indebtedness, Disqualified Stock or
preferred stock for purposes of this Section 1011.

 

(d)           For purposes of determining
compliance with any U.S. dollar-denominated restriction on the incurrence
of Indebtedness, the U.S. dollar-equivalent principal amount of
Indebtedness denominated in a foreign currency shall be calculated based on the
relevant currency exchange rate in effect on the date such Indebtedness was
incurred, in the case of term debt, or first committed, in the case of
revolving credit debt; provided
that if such Indebtedness is incurred to refinance other Indebtedness
denominated in a foreign currency, and such refinancing would cause the
applicable U.S. dollar denominated restriction to be exceeded if calculated at
the relevant currency exchange rate in effect on the date of such refinancing,
such U.S. dollar-denominated restriction shall be deemed not to have been
exceeded so long as the principal amount of such refinancing Indebtedness does
not exceed the principal amount of such Indebtedness being refinanced.

 

(e)           The principal amount of any
Indebtedness incurred to refinance other Indebtedness, if incurred in a
different currency from the Indebtedness being refinanced, shall be calculated
based on the currency exchange rate applicable to the currencies in which such
respective Indebtedness is denominated that is in effect on the date of such
refinancing.

 

SECTION 1012.  Liens. 
The Company shall not, and shall not permit any Guarantor to, directly
or indirectly, create, incur, assume or suffer to exist any Lien (except
Permitted Liens) that secures Obligations under any Senior Subordinated
Indebtedness or Subordinated Indebtedness on any asset or property of the Company
or such Guarantor, or any income or profits therefrom, or assign or convey any
right to receive income therefrom, unless the Notes (or a Guarantee in the case
of Liens of a Guarantor) are equally and ratably secured with (or in the event
the Lien relates to

 

91

 

Subordinated Indebtedness, are secured on a senior basis to) the
obligations so secured until such time as such obligations are no longer
secured by a Lien.

 

SECTION
1013.  Limitations
on Transactions with Affiliates.  (a)               The Company shall not, and shall
not permit any Restricted Subsidiary to, make any payment to, or sell, lease,
transfer or otherwise dispose of any of its properties or assets to, or
purchase any property or assets from, or enter into or make or amend any
transaction, contract, agreement, understanding, loan, advance or guarantee
with, or for the benefit of, any Affiliate of the Company (each of the
foregoing, an “Affiliate Transaction”) involving aggregate payments or
consideration in excess of $5.0 million, unless

 

(1)           such Affiliate
Transaction is on terms that are not materially less favorable to the Company
or the relevant Restricted Subsidiary than those that would have been obtained
in a comparable transaction by the Company or such Restricted Subsidiary with
an unrelated Person and

 

(2)           the Company delivers
to the Trustee with respect to any Affiliate Transaction or series of related
Affiliate Transactions involving aggregate payments or consideration in excess
of $10.0 million, a resolution adopted by the majority of the Board of
Directors of the Company approving such Affiliate Transaction and set forth in
an Officers’ Certificate certifying that such Affiliate Transaction complies
with clause (1) above.

 

(b)           The foregoing provisions will not
apply to the following:

 

(1)           transactions between
or among the Company or any of the Restricted Subsidiaries;

 

(2)           Restricted Payments
permitted by Section 1010 and the definition of “Permitted Investments”;

 

(3)           the payment of
management, consulting, monitoring and advisory fees and related expenses to
the Investors;

 

(4)           the payment of
reasonable and customary fees paid to, and indemnities provided on behalf of,
officers, directors, employees or consultants of the Company, any of its direct
or indirect parents or any Restricted Subsidiary;

 

(5)           transactions in
which the Company or any Restricted Subsidiary, as the case may be, delivers to
the Trustee a letter from an Independent Financial Advisor stating that such
transaction is fair to the Company or such Restricted Subsidiary from a
financial point of view or meets the requirements of Section 1013(a)(1);

 

(6)           any agreement as in
effect as of the Issue Date, or any amendment thereto (so long as any such
amendment is not disadvantageous to the Holders in any material respect as
compared to the applicable agreement as in effect on the Issue Date);

 

92

 

(7)           the existence of, or
the performance by the Company or any of its Restricted Subsidiaries of its
obligations under the terms of, any stockholders agreement (including any
registration rights agreement or purchase agreement related thereto) to which
it is a party as of the Issue Date and any similar agreements which it may
enter into thereafter; provided, however,
that the existence of, or the performance by the Company or any Restricted
Subsidiary of obligations under any future amendment to any such existing
agreement or under any similar agreement entered into after the Issue Date
shall only be permitted by this clause (7) to the extent that the terms of
any such amendment or new agreement are not otherwise disadvantageous to the
Holders in any material respect;

 

(8)           the Transactions and
the payment of all fees and expenses related to the Transactions, in each case
as disclosed in the Offering Circular;

 

(9)           transactions with
customers, clients, suppliers, or purchasers or sellers of goods or services,
in each case in the ordinary course of business and otherwise in compliance
with the terms of this Indenture which are fair to the Company and the
Restricted Subsidiaries, in the reasonable determination of the Board of
Directors of the Company or the senior management thereof, or are on terms at
least as favorable as might reasonably have been obtained at such time from an
unaffiliated party;

 

(10)         the issuance of
Equity Interests (other than Disqualified Stock) of the Company to any
Permitted Holder or to any director, officer, employee or consultant;

 

(11)         sales of accounts
receivable, or participations therein, in connection with any Receivables
Facility;

 

(12)         payments by the
Company or any Restricted Subsidiary to any of the Investors made for any
financial advisory, financing, underwriting or placement services or in respect
of other investment banking activities, including in connection with
acquisitions or divestitures which payments are approved by a majority of the
Board of Directors of the Company in good faith; and

 

(13)         payments or loans (or
cancellation of loans) to employees or consultants of the Company, any of its
direct or indirect parents or any Restricted Subsidiary and employment
agreements, stock option plans and other similar arrangements with such
employees or consultants which, in each case, are approved by a majority of the
Board of Directors of the Company in good faith.

 

SECTION 1014.  Limitations on Dividend and Other Payment
Restrictions Affecting Restricted Subsidiaries.  The Company shall not, and shall not permit
any Restricted Subsidiary to, directly or indirectly, create or otherwise cause
or suffer to exist or become effective any consensual encumbrance or consensual
restriction on the ability of any such Restricted Subsidiary to:

 

93

 

(a)           (1) pay dividends or make any other
distributions to the Company or any Restricted Subsidiary on its Capital Stock
or with respect to any other interest or participation in, or measured by, its
profits, or (2) pay any Indebtedness owed to the Company or any Restricted
Subsidiary;

 

(b)           make loans or advances to the Company
or any Restricted Subsidiary; or

 

(c)           sell, lease or transfer any of its
properties or assets to the Company or any Restricted Subsidiary, except (in
each case) for such encumbrances or restrictions existing under or by reason
of:

 

(1)           contractual
encumbrances or restrictions in effect on the Issue Date, including, pursuant
to the Senior Credit Facilities and the related documentation;

 

(2)           this Indenture and
the Notes;

 

(3)           purchase money
obligations for property acquired in the ordinary course of business that
impose restrictions of the nature discussed in clause (c) above on the
property so acquired;

 

(4)           applicable law or
any applicable rule, regulation or order;

 

(5)           any agreement or
other instrument of a Person acquired by the Company or any Restricted
Subsidiary in existence at the time of such acquisition (but not created in
contemplation thereof), which encumbrance or restriction is not applicable to
any Person, or the properties or assets of any Person, other than the Person,
or the property or assets of the Person, so acquired;

 

(6)           contracts for the
sale of assets, including customary restrictions with respect to a Subsidiary
pursuant to an agreement that has been entered into for the sale or disposition
of all or substantially all of the Capital Stock or assets of such Subsidiary;

 

(7)           secured Indebtedness
otherwise permitted to be incurred pursuant to Sections 1011 and 1012 that
limit the right of the debtor to dispose of the assets securing such Indebtedness;

 

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

 

(9)           other Indebtedness,
Disqualified Stock or preferred stock of Restricted Subsidiaries permitted to
be incurred subsequent to the Issue Date pursuant to Section 1011;

 

(10)         customary provisions
in joint venture agreements and other similar agreements;

 

94

 

(11)         customary provisions
contained in leases and other agreements entered into in the ordinary course of
business;

 

(12)         any encumbrances or
restrictions of the type referred to in clauses (a), (b) and (c) above
imposed by any amendments, modifications, restatements, renewals, increases,
supplements, refundings, replacements or refinancings of the contracts,
instruments or obligations referred to in clauses (1) through (11) above, provided that such amendments, modifications, restatements,
renewals, increases, supplements, refundings, replacements or refinancings are,
in the good faith judgment of the Board of Directors of the Company no more
restrictive with respect to such encumbrance and other restrictions than those
prior to such amendment, modification, restatement, renewal, increase,
supplement, refunding, replacement or refinancing; and

 

(13)         restrictions created
in connection with any Receivables Facility that, in the good faith
determination of the Board of Directors of the Company, are necessary or
advisable to effect such Receivables Facility.

 

SECTION 1015.  Limitation on Guarantees of Indebtedness
by Restricted Subsidiaries.  The
Company shall not permit any Restricted Subsidiary that is a Domestic
Subsidiary, other than a Guarantor or a special-purpose Restricted Subsidiary
formed in connection with Receivables Facilities, to guarantee the payment of
any Indebtedness of the Company or any other Guarantor unless:

 

(1)           such Restricted
Subsidiary simultaneously executes and delivers a supplemental indenture to
this Indenture providing for a Guarantee by such Restricted Subsidiary, except
that with respect to a guarantee of Indebtedness of the Company or any
Guarantor (A) if the Notes or such Guarantor’s
Guarantee of the Notes are subordinated in right of payment to such
Indebtedness, the Guarantee under the supplemental indenture shall be
subordinated to such Restricted Subsidiary’s guarantee with respect to such
Indebtedness substantially to the same extent as the Notes or such Guarantee,
as applicable, are subordinated to such Indebtedness under this Indenture and
(B) if such Indebtedness is by its express terms subordinated in right
of payment to the Notes or such Guarantor’s Guarantee of the Notes, any such
guarantee of such Restricted Subsidiary with respect to such Indebtedness shall
be subordinated in right of payment to such Restricted Subsidiary’s Guarantee
with respect to the Notes substantially to the same extent as such Indebtedness
is subordinated to the Notes;

 

(2)           such Restricted
Subsidiary waives and shall not in any manner whatsoever claim or take the
benefit or advantage of, any rights of reimbursement, indemnity or subrogation
or any other rights against the Company or any other Restricted Subsidiary as a
result of any payment by such Restricted Subsidiary under its Guarantee; and

 

(3)           such Restricted
Subsidiary shall deliver to the Trustee an Opinion of Counsel to the effect
that

 

95

 

(A)  such Guarantee has been duly
executed and authorized, and

 

(B)  such Guarantee constitutes a
valid, binding and enforceable obligation of such Restricted Subsidiary, except
insofar as enforcement thereof may be limited by any Bankruptcy Law (including
all laws relating to fraudulent transfers) and except insofar as enforcement
thereof is subject to general principles of equity;

 

provided that this Section 1015 shall not be
applicable to any guarantee of any Restricted Subsidiary that existed at the
time such Person became a Restricted Subsidiary and was not incurred in
connection with, or in contemplation of, such Person becoming a Restricted
Subsidiary.

 

SECTION 1016.  Limitation on Other Senior Subordinated
Indebtedness.  The Company shall not,
and shall not permit any Guarantor to, directly or indirectly, incur any
Indebtedness (including Acquired Indebtedness) that is subordinate in right of
payment to any Indebtedness of the Company or any Guarantor, as the case may
be, unless such Indebtedness is either

 

(A)  equal in right of payment
with the Notes or such Guarantor’s Guarantee, as the case may be, or

 

(B)  expressly subordinated in
right of payment to the Notes or such Subsidiary Guarantor’s Guarantee, as the
case may be.

 

SECTION 1017.  Change of Control.  (a)  If
a Change of Control occurs, the Company shall make an offer to purchase all of
the Notes pursuant to the offer described below (the “Change of Control Offer”)
at a price in cash (the “Change of Control Payment”) equal to 101% of the
aggregate principal amount thereof plus accrued and unpaid interest and Special
Interest, if any, to the date of purchase, subject to the right of Holders of
record on the relevant record date to receive interest due on the relevant
Interest Payment Date. Within 30 days following any Change of Control, the
Company shall send notice of such Change of Control Offer by first class mail,
with a copy to the Trustee, to each Holder to the address of such Holder
appearing in the Note Register with a copy to the Trustee, with the following
information:

 

(1)           a Change of Control
Offer is being made pursuant to this Section 1017 and that all Notes properly
tendered pursuant to such Change of Control Offer will be accepted for payment;

 

(2)           the purchase price
and the purchase date, which will be no earlier than 30 days nor later
than 60 days from the date such notice is mailed (the “Change of Control Payment Date”);

 

(3)           any Note not
properly tendered will remain outstanding and continue to accrue interest;

 

96

 

(4)           unless the Company
defaults in the payment of the Change of Control Payment, all Notes accepted
for payment pursuant to the Change of Control Offer will cease to accrue
interest on the Change of Control Payment Date;

 

(5)           Holders electing to
have any Notes purchased pursuant to a Change of Control Offer will be required
to surrender the Notes, with the form entitled “Option of Holder to Elect
Purchase” on the reverse of the Notes completed, to the Paying Agent specified
in the notice at the address specified in the notice prior to the close of
business on the third business day preceding the Change of Control Payment
Date;

 

(6)           Holders will be
entitled to withdraw their tendered Notes and their election to require the
Company to purchase such Notes, provided that the Paying Agent receives, not
later than the close of business on the last day of the Offer Period, a
telegram, telex, facsimile transmission or letter setting forth the name of the
Holder of the Notes, the principal amount of Notes tendered for purchase, and a
statement that such Holder is withdrawing his tendered Notes and his election
to have such Notes purchased; and

 

(7)           that Holders whose
Notes are being purchased only in part will be issued new Notes equal in
principal amount to the unpurchased portion of the Notes surrendered, which
unpurchased portion must be equal to $1,000 in principal amount or an integral
multiple thereof.

 

(b)           While the Notes are in global form
and the Company makes an offer to purchase all of the Notes pursuant to the
Change of Control Offer, a Holder may exercise its option to elect for the
purchase of the Notes through the facilities of the Depositary subject to its
rules and regulations.

 

(c)           The Company shall comply with the
requirements of Rule 14e-1 under the Exchange Act and any other securities
laws and regulations thereunder to the extent such laws or regulations are
applicable in connection with the repurchase of the Notes pursuant to a Change
of Control Offer. To the extent that the provisions of any securities laws or
regulations conflict with the provisions of this Indenture, the Company shall
comply with the applicable securities laws and regulations and shall not be
deemed to have breached its obligations described in this Indenture by virtue
thereof.

 

(d)           On the Change of Control Payment
Date, the Company shall, to the extent permitted by law,

 

(1)           accept for payment
all Notes or portions thereof properly tendered pursuant to the Change of
Control Offer,

 

(2)           deposit with the
Paying Agent an amount equal to the aggregate Change of Control Payment in
respect of all Notes or portions thereof so tendered and

 

97

 

(3)           deliver, or cause to
be delivered, to the Trustee for cancellation the Notes so accepted together
with an Officers’ Certificate stating that such Notes or portions thereof have
been tendered to and purchased by the Company.

 

(e)           The Paying Agent shall promptly mail
to each Holder the Change of Control Payment for such Notes, and the Trustee
shall promptly authenticate and mail to each Holder a new Note equal in
principal amount to any unpurchased portion of the Notes surrendered, if any; provided, that each such new Note shall be
in a principal amount of $1,000 or an integral multiple thereof. The Company
shall publicly announce the results of the Change of Control Offer on or as
soon as practicable after the Change of Control Payment Date.

 

(f)            The
Company shall not be required to make a Change of Control Offer following a
Change of Control if a third party makes the Change of Control Offer in the
manner, at the times and otherwise in compliance with the requirements set
forth in this Indenture applicable to a Change of Control Offer made by the
Company and purchases all Notes validly tendered and not withdrawn under such
Change of Control Offer. Notwithstanding anything to the contrary herein, a
Change of Control Offer may be made in advance of a Change of Control,
conditional upon such Change of Control, if a definitive agreement is in place
for the Change of Control at the time of making of the Change of Control Offer.

 

SECTION 1018.  Asset Sales.  (a) 
The Company shall not, and shall not permit any Restricted Subsidiary
to, cause, make or suffer to exist an Asset Sale, unless:

 

(1)           the Company or such
Restricted Subsidiary, as the case may be, receives consideration at the time
of such Asset Sale at least equal to the fair market value (as determined in
good faith by the Board of Directors of the Company) of the assets sold or
otherwise disposed of and

 

(2)           except in the case
of a Permitted Asset Swap, at least 75% of the consideration therefor received
by the Company or such Restricted Subsidiary, as the case may be, is in the
form of cash or Cash Equivalents; provided that
the amount of:

 

(A)  any liabilities (as shown on
the Company’s, or such Restricted Subsidiary’s, most recent balance sheet or in
the footnotes thereto) of the Company or any Restricted Subsidiary, other than
liabilities that are by their terms subordinated to the Notes, that are assumed
by the transferee of any such assets and for which the Company and all
Restricted Subsidiaries have been validly released by all creditors in writing,

 

(B)  any securities received by
the Company or such Restricted Subsidiary from such transferee that are
converted by the Company or such Restricted Subsidiary into cash (to the extent
of the cash received) within 180 days following the closing of such Asset
Sale and

 

98

 

(C)  any Designated Noncash
Consideration received by the Company or any Restricted Subsidiary in such Asset
Sale having an aggregate fair market value, taken together with all other
Designated Noncash Consideration received pursuant to this clause (C) that
is at that time outstanding, not to exceed the greater of (x) $100.0
million and (y) 5.00% of Total Assets at the time of the receipt of such
Designated Noncash Consideration, with the fair market value of each item of
Designated Noncash Consideration being measured at the time received and
without giving effect to subsequent changes in value,

 

shall be deemed to be cash for purposes of this provision and for no
other purpose.

 

(b)           Within 365 days after the Company’s
or any Restricted Subsidiary’s receipt of the Net Proceeds of any Asset Sale,
the Company or such Restricted Subsidiary, at its option, may apply the Net
Proceeds from such Asset Sale

 

(1)           to permanently
reduce:

 

(A)  Obligations under the Senior
Credit Facilities, and to correspondingly reduce commitments with respect
thereto.

 

(B)  Obligations under other
Senior Indebtedness (and to correspondingly reduce commitments with respect
thereto) or Senior Subordinated Indebtedness, provided that if the Company
shall so reduce Obligations under Senior Subordinated Indebtedness, it shall
equally and ratably reduce Obligations under the Notes if the Notes are then
prepayable or, if the Notes may not then be prepaid, the Company shall make an
offer (in accordance with the procedures set forth below for an Asset Sale
Offer) to all Holders to purchase their Notes at 100% of the principal amount
thereof, plus the amount of accrued but unpaid interest, if any, on the amount
of Notes that would otherwise be prepaid, or

 

(C)  Indebtedness of a Restricted
Subsidiary which is not a Guarantor, other than Indebtedness owed to the
Company or another Restricted Subsidiary (but only to the extent such Net
Proceeds from such Asset Sale are from an Asset Sale of or affecting such
Restricted Subsidiary which is not a Guarantor),

 

(2)           to an investment in
(A) any one or more businesses, provided that such investment in any business
is in the form of the acquisition of Capital Stock and results in the Company
or a Restricted Subsidiary, as the case may be, owning an amount of the Capital
Stock of such business such that it constitutes a Restricted Subsidiary,
(B) capital expenditures or (C) acquisitions of other assets, in each
of (A), (B) and (C), used or useful in a Similar Business, or

 

(3)           to an investment in
(A) any one or more businesses, provided that such investment in any business
is in the form of the acquisition of Capital Stock

 

99

 

and results in
the Company or a Restricted Subsidiary, as the case may be, owning an amount of
the Capital Stock of such business such that it constitutes a Restricted
Subsidiary, (B) properties or (C) other assets that, in each
of (A), (B) and (C) replace the businesses, properties and assets
that are the subject of such Asset Sale;

 

provided, that
in the case of clauses (2) and (3) above, a binding commitment shall
be treated as a permitted application of the Net Proceeds from the date of such
commitment so long as the Company or such Restricted Subsidiary enters into
such commitment with the good faith expectation that such Net Proceeds will be
applied to satisfy such commitment (an “Acceptable Commitment”) and, in the
event any Acceptable Commitment is later canceled or terminated for any reason
before such Net Proceeds are so applied, the Company or such Restricted
Subsidiary enters into another Acceptable Commitment within nine months of such
cancellation or termination.

 

(c)           Any Net Proceeds from the Asset Sale
that are not invested or applied as provided and within the time period set
forth in Section 1018(b) shall be deemed to constitute “Excess Proceeds.” When
the aggregate amount of Excess Proceeds exceeds $20.0 million, the Company
shall make an offer to all Holders of the Notes, and, if required by the terms
of any Senior Subordinated Indebtedness of the Company, to the holders of such
Senior Subordinated Indebtedness of the Company, (an “Asset Sale Offer”), to purchase the maximum principal amount of
Notes and such Senior Secured Indebtedness of the Company, that is an integral
multiple of $1,000 that may be purchased out of the Excess Proceeds at an offer
price in cash in an amount equal to 100% of the principal amount thereof, plus
accrued and unpaid interest and Special Interest, if any, to the date fixed for
the closing of such offer, in accordance with the procedures set forth in this
Indenture. The Company shall commence an Asset Sale Offer with respect to
Excess Proceeds within ten Business Days after the date that Excess Proceeds
exceeds $20.0 million by mailing the notice required pursuant to the terms
of this Indenture, with a copy to the Trustee. To the extent that the aggregate
amount of Notes and such Senior Subordinated Indebtedness of the Company
tendered pursuant to an Asset Sale Offer is less than the Excess Proceeds, the
Company may use any remaining Excess Proceeds for general corporate purposes,
subject to other covenants contained in this Indenture. If the aggregate
principal amount of Notes or the Senior Subordinated Indebtedness of the
Company surrendered by such holders thereof exceeds the amount of Excess
Proceeds, the Trustee shall select the Notes and such Senior Subordinated
Indebtedness of the Company to be purchased on a pro rata basis based on the
accreted value or principal amount of the Notes or such Senior Subordinated
Indebtedness of the Company tendered. Upon completion of any such Asset Sale
Offer, the amount of Excess Proceeds shall be reset at zero.

 

(d)           Pending the final application of any
Net Proceeds pursuant to this Section 1018, the Company or the applicable
Restricted Subsidiary may apply such Net Proceeds temporarily to reduce
Indebtedness outstanding under a revolving credit facility or otherwise invest
such Net Proceeds in any manner not prohibited by this Indenture.

 

100

(e)           The Company shall comply with the
requirements of Rule 14e-1 under the Exchange Act and any other securities
laws and regulations thereunder to the extent such laws or regulations are
applicable in connection with the repurchase of the Notes pursuant to an Asset
Sale Offer. To the extent that the provisions of any securities laws or
regulations conflict with the provisions of this Indenture, the Company shall
comply with the applicable securities laws and regulations and shall not be
deemed to have breached its obligations described in this Indenture by virtue
thereof.

 

(f)            If less than all of the Notes or
such Senior Subordinated Indebtedness of the Company are to be redeemed at any
time, selection of such Notes for redemption, will be made by the Trustee on a
pro rata basis to the extent practicable; provided that no Notes of $1,000 or less shall be purchased or
redeemed in part.

 

(g)           Notices of purchase or redemption
shall be mailed by first class mail, postage prepaid, at least 30 but not more
than 60 days before the purchase or redemption date to each Holder to be
purchased or redeemed at such Holder’s registered address, except that
redemption notices may be mailed more than 60 days prior to a redemption date
if the notice is issued in connection with a defeasance of the Notes or a
satisfaction and discharge of this Indenture. If any Note is to be purchased or
redeemed in part only, any notice of purchase or redemption that relates to
such Note shall state the portion of the principal amount thereof that has been
or is to be purchased or redeemed.

 

(h)           A new Note in principal amount equal
to the unpurchased or unredeemed portion of any Note purchased or redeemed in
part shall be issued in the name of the Holder thereof upon cancellation of the
original Note. On and after the purchase or redemption date, unless the Company
defaults in payment of the purchase or Redemption Price, interest shall cease
to accrue on Notes or portions thereof purchased or called for redemption.

 

SECTION 1019.  Special Interest Notice.  In the event that the Company is required to
pay Special Interest to Holders of Notes pursuant to the Registration Rights
Agreement, the Company will provide written notice (“Special Interest Notice”)
to the Trustee of its obligation to pay Special Interest no later than fifteen
days prior to the proposed payment date for the Special Interest, and the
Special Interest Notice shall set forth the amount of Special Interest to be
paid by the Company on such payment date. The Trustee shall not at any time be
under any duty or responsibility to any Holder of Notes to determine the
Special Interest, or with respect to the nature, extent, or calculation of the
amount of Special Interest owed, or with respect to the method employed in such
calculation of the Special Interest.

 

SECTION 1020.  Suspension of Covenants.  (a) 
During any period of time that: (1) the Notes have Investment Grade
Ratings from both Rating Agencies and (2) no Default or Event of Default
has occurred and is continuing under this Indenture (the occurrence of the
events described in the foregoing clauses (1) and (2) being
collectively referred to as a “Covenant Suspension Event”), the Company and the
Restricted Subsidiaries shall not be subject to the following provisions of
this Indenture:

 

101

 

(A)  clause (a)(4) of Section
801;

 

(B)  Section 1010;

 

(C)  Section 1011;

 

(D)  Section 1013;

 

(E)  Section 1014;

 

(F)  Section 1015;

 

(G)  Section 1016; and

 

(H)  Section 1018;

 

(collectively, the “Suspended Covenants”). Upon the occurrence of a
Covenant Suspension Event, the amount of Excess Proceeds from Net Proceeds
shall be set at zero. In addition, the Guarantees of the Guarantors shall also
be suspended as of such date (the “Suspension Date”). In the event that the
Company and the Restricted Subsidiaries are not subject to the Suspended
Covenants for any period of time as a result of the foregoing, and on any
subsequent date (the “Reversion Date”) one or both of the Rating Agencies withdraws
its Investment Grade Rating or downgrades the rating assigned to the notes
below an Investment Grade Rating or a Default or Event of Default occurs and is
continuing, then the Company and the Restricted Subsidiaries shall thereafter
again be subject to the Suspended Covenants with respect to future events and
the Guarantees shall be reinstated. The period of time between the Suspension
Date and the Reversion Date is referred to in this description as the “Suspension
Period”. Notwithstanding that the Suspended Covenants may be reinstated, no
Default or Event of Default shall be deemed to have occurred as a result of a
failure to comply with the Suspended Covenants during the Suspension Period (or
upon termination of the Suspension Period or after that time based solely on
events that occurred during the Suspension Period).

 

(b)           On the Reversion Date, all
Indebtedness incurred, or Disqualified Stock issued, during the Suspension
Period shall be classified to have been incurred or issued pursuant to Sections
1011(a) or 1011(b) (in each case, to the extent such Indebtedness or
Disqualified Stock would be permitted to be incurred or issued thereunder as of
the Reversion Date and after giving effect to Indebtedness incurred or issued
prior to the Suspension Period and outstanding on the Reversion Date). To the
extent such Indebtedness or Disqualified Stock would not be so permitted to be
incurred or issued pursuant to Section 1011(a) or 1011(b), such Indebtedness or
Disqualified Stock shall be deemed to have been outstanding on the Issue Date,
so that it is classified as permitted under Section 1011(b)(3). Calculations
made after the Reversion Date of the amount available to be made as

 

102

 

Restricted Payments under Section 1010 shall be made as though Section
1010 had been in effect since the Issue Date and throughout the Suspension
Period. Accordingly, Restricted Payments made during the Suspension Period
shall reduce the amount available to be made as Restricted Payments under
1010(a).

 

(c)           The Company shall give the Trustee
prompt (and in any event not later than five business days after a Covenant
Suspension Event) written notice of any Covenant Suspension Event.  In the absence of such notice, the Trustee
shall assume the Suspended Covenants apply and are in full force and
effect.  The Company shall give the
Trustee prompt (and in any event not later than five business days after a
Covenant Suspension Event) written notice of any occurrence of a Reversion
Date.  After any such notice of the
occurrence of a Reversion Date, the Trustee shall assume the Suspended
Covenants apply and are in full force and effect.

 

ARTICLE
ELEVEN

 

REDEMPTION
OF NOTES

 

SECTION 1101.  Right of Redemption.  At any time prior to October 1, 2008,
the Company may redeem all or a part of the Notes, upon not less than 30 nor
more than 60 days’ prior notice mailed by first-class mail to each
Holder’s registered address, at a redemption price equal to 100% of the
principal amount of Notes redeemed plus the Applicable Premium as of, and
accrued and unpaid interest and Special Interest, if any, to the date of
redemption (the “Redemption Date”), subject to the rights of Holders on the
relevant record date to receive interest due on the relevant interest payment
date.

 

On or after
October 1, 2008, the Company may redeem the Notes, in whole or in part, upon
not less than 30 nor more than 60 days’ prior notice by first class mail,
postage prepaid, with a copy to the Trustee, to each Holder of Notes to the
address of such Holder appearing in the Note Register at the Redemption Prices
(expressed as percentages of principal amount) set forth below, plus accrued
and unpaid interest thereon and Special Interest, if any, to the applicable Redemption Date, subject to the right of
Holders of record on the relevant Regular Record Date to receive interest due
on the relevant Interest Payment Date, if redeemed during the twelve-month
period beginning on October 1 of each of the years indicated below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2008

  	
   

  	
  103.813

  	
  %

  
	
  2009

  	
   

  	
  101.906

  	
  %

  
	
  2010 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

In addition,
until October 1, 2007, the Company may, at its option, redeem up to 35% of the
aggregate principal amount of Notes issued under this Indenture at a redemption
price equal to 107.625% of the aggregate principal amount thereof, plus accrued
and unpaid interest thereon and Special Interest, if any, to the applicable
Redemption Date, subject to the right of Holders of record on the relevant
record date to receive interest due on the relevant interest payment date, with
the net cash proceeds of

 

103

 

one or more Equity Offerings of
the Company or any direct or indirect parent of the Company to the extent such
net cash proceeds are contributed to the Company; provided that at least 65% of the sum of the aggregate
principal amount of Notes originally issued under this Indenture and any
Additional Notes issued under this Indenture after the Issue Date remains
outstanding immediately after the occurrence of each such redemption; provided further that each such redemption
occurs within 90 days of the date of closing of each such Equity Offering.

 

SECTION 1102.  Applicability of Article.  Redemption of Notes at the election of the
Company or otherwise, as permitted or required by any provision of this
Indenture, shall be made in accordance with such provision and this Article.

 

SECTION
1103.  Election
to Redeem; Notice to Trustee.  The
election of the Company to redeem any Notes pursuant to Section 1101 above
shall be evidenced by a Board Resolution. 
In case of any redemption at the election of the Company, the Company
shall, at least 60 days prior to the Redemption Date fixed by the Company (unless
a shorter notice shall be satisfactory to the Trustee), notify the Trustee of
such Redemption Date and of the principal amount of Notes to be redeemed and
shall deliver to the Trustee such documentation and records as shall enable the
Trustee to select the Notes to be redeemed pursuant to Section 1104.

 

SECTION 1104.  Selection by Trustee of Notes to Be
Redeemed.  If less than all of the
Notes or such Senior Subordinated Indebtedness of the Company are to be
redeemed at any time, selection of such Notes for redemption will be made by
the Trustee on a pro rata basis to the extent practicable; provided that no notes of $1,000 or less
shall be purchased or redeemed in part.

 

Notices of
purchase or redemption shall be mailed by first class mail, postage prepaid, at
least 30 but not more than 60 days before the purchase or redemption date to
each Holder of Notes to be purchased or redeemed at such Holder’s registered
address, except that redemption notices may be mailed more than 60 days
prior to a redemption date if the notice is issued in connection with a
defeasance of the Notes or a satisfaction and discharge of this Indenture. If
any Note is to be purchased or redeemed in part only, any notice of purchase or
redemption that relates to such Note shall state the portion of the principal
amount thereof that has been or is to be purchased or redeemed.

 

A new Note in
principal amount equal to the unpurchased or unredeemed portion of any Note
purchased or redeemed in part will be issued in the name of the Holder thereof
upon cancellation of the original Note. On and after the purchase or Redemption
Date, unless the Company defaults in payment of the purchase or Redemption
Price, interest shall cease to accrue on Notes or portions thereof purchased or
called for redemption.

 

SECTION 1105.  Notice of Redemption.  Notice of redemption shall be given in the
manner provided for in Section 107 not less than 30 nor more than 60 days
prior to the Redemption Date, to each Holder to be redeemed.

 

104

 

All notices of
redemption shall state:

 

(1)           the Redemption Date,

 

(2)           the Redemption Price
and the amount of accrued interest to the Redemption Date payable as provided
in Section 1107, if any,

 

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

 

(4)           in case any Note is
to be redeemed in part only, the notice which relates to such Note shall state
that on and after the Redemption Date, upon surrender of such Note, the Holder
will receive, without charge, a new Note or Notes of authorized denominations
for the principal amount thereof remaining unredeemed,

 

(5)           that on the
Redemption Date the Redemption Price (and accrued interest, if any, to the Redemption
Date payable as provided in Section 1107) will become due and payable upon
each such Note, or the portion thereof, to be redeemed, and that interest
thereon will cease to accrue on and after said date,

 

(6)           the place or places
where such Notes are to be surrendered for payment of the Redemption Price and
accrued interest, if any,

 

(7)           the name and address
of the Paying Agent,

 

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

 

(9)           the “CUSIP” number,
ISIN or “Common Code” number and that no representation is made as to the
accuracy or correctness of the “CUSIP” number, ISIN or “Common Code” number, if
any, listed in such notice or printed on the Notes, and

 

(10)         the paragraph of the
Notes pursuant to which the Notes are to be redeemed.

 

Notice of
redemption of Notes 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 1106.  Deposit of Redemption Price.  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 1003) an amount of money sufficient to pay the Redemption Price
of, and accrued interest and Special Interest, if any, on, all the Notes which
are to be redeemed on that date.

 

105

 

SECTION 1107.  Notes Payable on Redemption Date.  Notice of redemption having been given as
aforesaid, the Notes so to be redeemed shall, on the Redemption Date, become
due and payable at the Redemption Price therein specified (together with
accrued interest and Special Interest, if any, to the Redemption Date), and
from and after such date (unless the Company shall default in the payment of
the Redemption Price and accrued interest) such Notes shall cease to bear
interest.  Upon surrender of any such
Note for redemption in accordance with said notice, such Note shall be paid by
the Company at the Redemption Price, together with accrued interest and Special
Interest, if any, to the Redemption Date and such Notes shall be canceled by
the Trustee; 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 Notes, or one or more
Predecessor Notes, registered as such at the close of business on the relevant
Record Dates according to their terms and the provisions of Section 306.

 

If any Note
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 borne by the Notes.

 

SECTION 1108.  Notes Redeemed in Part.  Any Note which is to be redeemed only in part
(pursuant to the provisions of this Article) shall be surrendered at the office
or agency of the Company maintained for such purpose pursuant to
Section 1002 (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 such Holder’s
attorney duly authorized in writing), and the Company shall execute, and the Trustee
shall authenticate and deliver to the Holder of such Note without service
charge, a new Note or Notes, of any authorized denomination as requested by
such Holder, in aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Note so surrendered.

 

ARTICLE
TWELVE

 

GUARANTEES

 

SECTION 1201.  Guarantees.  Each Guarantor hereby jointly and severally,
unconditionally and irrevocably guarantees the Notes and obligations of the
Company hereunder and thereunder, and guarantees to each Holder of a Note
authenticated and delivered by the Trustee, and to the Trustee for itself and
on behalf of such Holder, that: (1) the principal of (and premium, if any) and
interest on, or Special Interest in respect of, the Notes will be paid in full
when due, whether at Stated Maturity, by acceleration or otherwise (including
the amount that would become due but for the operation of the automatic stay
under Section 362(a) of the Bankruptcy Law), together with interest on the
overdue principal, if any, and interest on any overdue interest, to the extent
lawful, and all other obligations of the Company to the Holders or the Trustee
hereunder or thereunder will be paid in full or performed, all in accordance
with the terms hereof and thereof; and (2) in case of any extension of time of
payment or renewal of any Notes or of any such other obligations, the same
shall be paid in full when due or performed in accordance with the terms of the
extension or renewal, whether at Stated

 

106

 

Maturity, by acceleration or otherwise, subject, however, in the case
of clauses (1) and (2) above, to the limitation set forth in Section 1205
hereof.

 

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

 

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

 

If any Holder
or the Trustee is required by any court or otherwise to return to the Company
or any Guarantor, or any custodian, trustee, liquidator or other similar
official acting in relation to either the Company or any Guarantor, any amount
paid by any of them to the Trustee or such Holder, the Guarantee of each of the
Guarantors, to the extent theretofore discharged, shall be reinstated in full
force and effect.  Each Guarantor further
agrees that, as between each Guarantor, on the one hand, and the Holders and
the Trustee on the other hand, (1) subject to this Article Twelve, the Maturity
of the obligations guaranteed hereby may be accelerated as provided in Article
Five hereof for the purposes of the Guarantee of such Guarantor notwithstanding
any stay, injunction or other prohibition preventing such acceleration in
respect of the obligations guaranteed hereby, and (2) in the event of any
acceleration of such obligation as provided in Article Five hereof, such
obligations (whether or not due and payable) shall forthwith become due and
payable by each Guarantor for the purpose of the Guarantee of such Guarantor.

 

107

 

Each Guarantee
shall remain in full force and effect and continue to be effective should any
petition be filed by or against the Company for liquidation, reorganization,
should the Company become insolvent or make an assignment for the benefit of
creditors or should a receiver or trustee be appointed for all or any
significant part of the Company’s assets, and shall, to the fullest extent
permitted by law, continue to be effective or be reinstated, as the case may
be, if at any time payment and performance of the Notes are, pursuant to
applicable law, rescinded or reduced in amount, or must otherwise be restored
or returned by any obligee on the Notes, whether as a “voidable preference”, “fraudulent
transfer” or otherwise, all as though such payment or performance had not been
made.  In the event that any payment or
any part thereof, is rescinded, reduced, restored or returned, the Notes shall,
to the fullest extent permitted by law, be reinstated and deemed reduced only
by such amount paid and not so rescinded, reduced, restored or returned. The
form of Notation of Guarantee to be executed on each Note by each Guarantor is
attached as Exhibit B hereto.

 

SECTION 1202.  Severability.  In case any provision of any Guarantee shall
be invalid, illegal or unenforceable, the validity, legality, and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby to the extent permitted by applicable law.

 

SECTION 1203.  Restricted Subsidiaries.  The Company shall cause any Restricted
Subsidiary required to guarantee payment of the Notes pursuant to the terms and
provisions of Section 1015 to (1) execute and deliver to the Trustee any
amendment or supplement to this Indenture in accordance with the provisions of
Article Nine of this Indenture pursuant to which such Restricted Subsidiary
shall guarantee all of the obligations on the Notes, whether for principal,
premium, if any, interest (including interest accruing after the filing of, or
which would have accrued but for the filing of, a petition by or against the
Company under any Bankruptcy Law, whether or not such interest is allowed as a
claim after such filing in any proceeding under such law) and other amounts due
in connection therewith (including any fees, expenses and indemnities), on an
unsecured senior subordinated basis and (2) deliver to such Trustee an Opinion
of Counsel reasonably satisfactory to such Trustee to the effect that such
amendment or supplement has been duly executed and delivered by such Restricted
Subsidiary and is in compliance with the terms of this Indenture.  Upon the execution of any such amendment or
supplement, the obligations of the Guarantors and any such Restricted
Subsidiary under their respective Guarantees shall become joint and several and
each reference to the “Guarantor” in this Indenture shall, subject to Section
1208, be deemed to refer to all Guarantors, including such Restricted
Subsidiary.  Such Guarantee shall be
released in accordance with Section 803 and Section 1209.

 

SECTION 1204.  Subordination of Guarantees.  The Guarantee issued by any Guarantor shall
be unsecured senior subordinated obligations of such Guarantor, ranking pari
passu with all other existing and future Senior Subordinated Indebtedness of
such Guarantor, if any.  The Indebtedness
evidenced by such Guarantee shall be subordinated on the same basis to Senior
Indebtedness of such Guarantor as the Notes are subordinated to Senior
Indebtedness under Article Fourteen.

 

108

 

SECTION 1205.  Limitation of Guarantors’ Liability.  Each Guarantor and by its acceptance hereof
each Holder confirms that it is the intention of all such parties that the
guarantee by each such Guarantor pursuant to its Guarantee not constitute a
fraudulent transfer or conveyance for purposes of the Bankruptcy Law, the
Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any
similar federal or state law or the provisions of its local law relating to
fraudulent transfer or conveyance.  To
effectuate the foregoing intention, the Holders and each such Guarantor hereby
irrevocably agree that the obligations of such Guarantor under its Guarantee
shall be limited to the maximum amount that will not, after giving effect to
all other contingent and fixed liabilities of such Guarantor and after giving
effect to any collections from or payments made by or on behalf of any other
Guarantor in respect of the obligations of such other Guarantor under its
Guarantee or pursuant to this Section 1205, result in the obligations of such
Guarantor under its Guarantee constituting such fraudulent transfer or
conveyance.

 

SECTION 1206.  Contribution.  In order to provide for just and equitable
contribution among the Guarantors, the Guarantors agree, inter se, that in the event any payment or
distribution is made by any Guarantor (a “Funding Guarantor”) under a
Guarantee, such Funding Guarantor shall be entitled to a contribution from all
other Guarantors in a pro rata
amount based on the Adjusted Net Assets (as defined below) of each Guarantor
(including the Funding Guarantor) for all payments, damages and expenses
incurred by that Funding Guarantor in discharging the Company’s obligations
with respect to the Notes or any other Guarantor’s obligations with respect to
the Guarantee of such Guarantor.  “Adjusted
Net Assets” of such Guarantor at any date shall mean the lesser of (1) the
amount by which the fair value of the property of such Guarantor exceeds the
total amount of liabilities, including contingent liabilities (after giving
effect to all other fixed and contingent liabilities incurred or assumed on
such date), but excluding liabilities under the Guarantee of such Guarantor at
such date and (2) the amount by which the present fair salable value of the
assets of such Guarantor at such date exceeds the amount that will be required
to pay the probable liability of such Guarantor on its debts (after giving
effect to all other fixed and contingent liabilities incurred or assumed on
such date), excluding debt in respect of the Guarantee of such Guarantor, as
they become absolute and matured.

 

SECTION 1207.  Subrogation.  Each Guarantor shall be subrogated to all
rights of Holders against the Company in respect of any amounts paid by any
Guarantor pursuant to the provisions of Section 1201; provided, however, that, if an Event of
Default has occurred and is continuing, no Guarantor shall be entitled to
enforce or receive any payments arising out of, or based upon, such right of
subrogation until all amounts then due and payable by the Company under this
Indenture or the Notes shall have been paid in full.

 

SECTION 1208.  Reinstatement.  Each Guarantor hereby agrees (and each Person
who becomes a Guarantor shall agree) that the Guarantee provided for in Section
1201 shall continue to be effective or be reinstated, as the case may be, if at
any time, payment, or any part thereof, of any obligations or interest thereon
is rescinded or must

 

109

 

otherwise be restored by a Holder to the Company upon the bankruptcy or
insolvency of the Company or any Guarantor.

 

SECTION 1209.  Release of a Guarantor.  Any Guarantee by a Restricted Subsidiary of
the Notes shall be automatically and unconditionally released and discharged
upon:

 

(1)           (A)          any
sale, exchange or transfer (by merger or otherwise) of all of the Company’s
Capital Stock in such Guarantor (including any sale, exchange or transfer
following which the applicable Guarantor is no longer a Restricted Subsidiary)
or all or substantially all the assets of such Guarantor, which sale, exchange
or transfer is made in compliance with the applicable provisions of this
Indenture;

 

(B)  the release or discharge of
the guarantee by such Restricted Subsidiary which resulted in the creation of
such Guarantee, except a discharge or release by or as a result of payment
under such guarantee;

 

(C)  if the Company properly
designates any Restricted Subsidiary that is a Guarantor as an Unrestricted
Subsidiary; or

 

(D)  the Legal Defeasance of the
Notes under Section 1302 hereof, or the Covenant Defeasance of the Notes under
Section 1303 hereof, or if the Company’s obligations under this Indenture are
discharged in accordance with Section 401; and

 

(2)           such Guarantor has
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel,
each stating that all conditions precedent herein provided for relating to such
transaction have been complied with.

 

SECTION 1210.  Benefits Acknowledged.  Each Guarantor acknowledges that it will
receive direct and indirect benefits from the financing arrangements
contemplated by this Indenture and from its guarantee and waivers pursuant to
its Guarantees under this Article Twelve.

 

ARTICLE
THIRTEEN

 

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

 

SECTION 1301.  Company’s Option to Effect Legal
Defeasance or Covenant Defeasance. 
The Company may, at its option by Board Resolution, at any time, with
respect to the Notes, elect to have either Section 1302 or
Section 1303 be applied to all Outstanding Notes upon compliance with the
conditions set forth below in this Article Thirteen.

 

SECTION 1302.  Legal Defeasance and Discharge.  Upon the Company’s exercise under
Section 1301 of the option applicable to this Section 1302, each of
the Company and the Guarantors shall be deemed to have been discharged from its

 

110

 

respective obligations with respect to all Outstanding Notes on the
date the conditions set forth in Section 1304 are satisfied (hereinafter, “Legal
Defeasance”).  For this purpose, such
Legal Defeasance means that each of the Company and the Guarantors shall be
deemed to have paid and discharged the entire indebtedness represented by the
Outstanding Notes, which shall thereafter be deemed to be “Outstanding” only
for the purposes of Section 1305 and the other Sections of this Indenture
referred to in (1) and (2) below, and to have satisfied all its other
obligations under such Notes and this Indenture insofar as such Notes are
concerned (and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging the same), except for the following which shall
survive until otherwise terminated or discharged hereunder: (1) the rights of Holders of Outstanding Notes to
receive payments in respect of the principal of (and premium, if any, on) and
interest on such Notes when such payments are due, solely out of the trust
described in Section 1304, (2) the
Company’s obligations with respect to such Notes under Sections 303, 304, 305,
1002 and 1003, (3) the rights,
powers, trusts, duties and immunities of the Trustee hereunder, and the
obligations of each of the Company and the Guarantors in connection therewith
and (4) this Article Thirteen. 
Subject to compliance with this Article Thirteen, the Company may
exercise its option under this Section 1302 notwithstanding the prior
exercise of its option under Section 1303 with respect to the Notes.

 

SECTION 1303.  Covenant Defeasance.   Upon
the Company’s exercise under Section 1301 of the option applicable to this
Section 1303, each of the Company and the Guarantors shall be released
from its respective obligations under any covenant contained in
Sections 801, 802 and in Sections 1005, 1006, 1007 and 1009 through
and including 1018 with respect to the Outstanding Notes on and after the date
the conditions set forth below are satisfied (hereinafter, “Covenant Defeasance”),
and the Notes shall thereafter be deemed not to be “Outstanding” for the
purposes of any direction, waiver, consent or declaration or Act of Holders
(and the consequences of any thereof) in connection with such covenants, but
shall continue to be deemed “Outstanding” for all other purposes
hereunder.  For this purpose, such
Covenant Defeasance means that, with respect to the Outstanding Notes, the
Company or any Guarantor, as applicable, may omit to comply with and shall have
no liability in respect of any term, condition or limitation set forth in any
such covenant, whether directly or indirectly, by reason of any reference
elsewhere herein to any such covenant or by reason of any reference in any such
covenant to any other provision herein or in any other document and such
omission to comply shall not constitute a Default or an Event of Default under
Sections 501(3), 501(4), 501(5), 501(6), 501(7) and 501(9) and, with
respect to only any Significant Subsidiary and not the Company, Section 501(8),
but, except as specified above, the remainder of this Indenture and such Notes
shall be unaffected thereby.

 

SECTION 1304.  Conditions to Legal Defeasance or Covenant
Defeasance.  The following shall be
the conditions to application of either Section 1302 or Section 1303
to the Outstanding Notes:

 

(1)           The Company shall irrevocably have deposited or caused
to be deposited with the Trustee (or another trustee satisfying the
requirements of Section 608 who shall agree to comply with the provisions
of this Article Thirteen

 

111

 

applicable to
it) 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 Notes; (A)
cash in U.S. dollars, or (B) non-callable Government Securities, or (C) a
combination thereof, in such amounts as will be 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, the principal of (and premium, if any) and interest on the
Outstanding Notes on the Stated Maturity (or Redemption Date, if applicable) of
such principal (and premium, if any, or, interest due on the Notes; provided that the Trustee shall have been irrevocably
instructed to apply such cash or the proceeds of such Government Securities to
said payments with respect to the Notes; and provided
further that upon the effectiveness of this Section 1304, the
cash or Government Securities deposited shall not be subject to the rights of
the holders of Senior Indebtedness pursuant to the provisions of
Article Fourteen.  Before such a
deposit, the Company may give to the Trustee, in accordance with
Section 1103 hereof, a notice of its election to redeem all of the
Outstanding Notes at a future date in accordance with Article Eleven
hereof, which notice shall be irrevocable. 
Such irrevocable redemption notice, if given, shall be given effect in
applying the foregoing;

 

(2)           in the case of Legal
Defeasance, the Company shall have delivered to the Trustee an Opinion of
Counsel in the United States reasonably acceptable to the Trustee confirming
that, subject to customary assumptions and exclusions,

 

(A)  the Company has received
from, or there has been published by, the United States Internal Revenue
Service a ruling, or

 

(B)  since the issuance of the
Notes, there has been a change in the applicable U.S. Federal income tax law,

 

in either case to the effect that, and based thereon such Opinion of
Counsel in the United States shall confirm that, subject to customary
assumptions and exclusions, the Holders of the Outstanding Notes will not
recognize income, gain or loss for U.S. Federal income tax purposes as a result
of such Legal Defeasance and will be subject to U.S. Federal income tax on the
same amounts, in the same manner and at the same times as would have been the
case if such Legal Defeasance had not occurred;

 

(3)           in the case of
Covenant Defeasance, the Company shall have delivered to the Trustee an Opinion
of Counsel in the United States reasonably acceptable to the Trustee confirming
that, subject to customary assumptions and exclusions, the Holders of the
Outstanding Notes will not recognize income, gain or loss for U.S. Federal
income tax purposes as a result of such Covenant Defeasance and will be subject
to such 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;

 

112

 

(4)           no Default or Event
of Default (other than that resulting from borrowing funds to be applied to
make such deposit) shall have occurred and be continuing on the date of such
deposit;

 

(5)           such Legal
Defeasance or Covenant Defeasance shall not result in a breach or violation of,
or constitute a default under the Senior Credit Facilities or any other
material agreement or instrument (other than this Indenture) to which, the
Company or any Guarantor is a party or by which the Company or any Guarantor is
bound;

 

(6)           the Company shall
have delivered to the Trustee an Opinion of Counsel to the effect that, as of
the date of such opinion and subject to customary assumptions and exclusions
following the deposit, the trust funds will not be subject to the effect of
Section 547 of Title II of the United States Code;

 

(7)           the Company shall
have delivered to the Trustee an Officers’ Certificate stating that the deposit
was not made by the Company with the intent of defeating, hindering, delaying
or defrauding any creditors of the Company or any Guarantor or others; and

 

(8)           the Company shall
have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel in the United States (which Opinion of Counsel may be subject to
customary assumptions and exclusions) each stating that all conditions
precedent provided for or relating to the Legal Defeasance or the Covenant
Defeasance, as the case may be, have been complied with.

 

SECTION 1305.  Deposited Money and Government Securities
to Be Held in Trust; Other Miscellaneous Provisions.  Subject to the provisions of the last
paragraph of Section 1003, all cash and Government Securities (including
the proceeds thereof) deposited with the Trustee (or other qualifying trustee,
collectively for purposes of this Section 1305, the “Qualifying Trustee”)
pursuant to Section 1304 in respect of the Outstanding Notes shall be held
in trust and applied by the Qualifying Trustee, in accordance with the
provisions of such Notes and this Indenture, to the payment, either directly or
through any Paying Agent (including the Company acting as its own Paying Agent)
as the Qualifying Trustee may determine, to the Holders of such Notes of all
sums due and to become due thereon in respect of principal (and premium, if
any) and interest, but such money or Government Securities need not be
segregated from other funds except to the extent required by law.

 

The Company
shall pay and indemnify the Qualifying Trustee against any tax, fee or other
charge imposed on or assessed against the Government Securities deposited
pursuant to Section 1304 or the principal and interest received in respect
thereof other than any such tax, fee or other charge which by law is for the
account of the Holders of the Outstanding Notes.

 

Anything in
this Article Thirteen to the contrary notwithstanding, the Qualifying Trustee
shall deliver or pay to the Company from time to time upon Company

 

113

 

Request any money or Government
Securities held by it as provided in Section 1304 which, in the opinion of
a nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Qualifying Trustee, are in
excess of the amount thereof which would then be required to be deposited to
effect an equivalent Legal Defeasance or Covenant Defeasance, as applicable, in
accordance with this Article.

 

SECTION 1306.  Reinstatement.  If the Trustee or any Paying Agent is unable
to apply any money or Government Securities in accordance with
Section 1305 by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, then the Company’s and each Guarantor’s obligations under this
Indenture and the Outstanding Notes shall be revived and reinstated as though
no deposit had occurred pursuant to Section 1302 or 1303, as the case may
be, until such time as the Trustee or Paying Agent is permitted to apply all
such money or Government Securities in accordance with Section 1305; provided, however, that if the Company
makes any payment of principal of (or premium, if any) or interest on any Note following
the reinstatement of its obligations, the Company shall be subrogated to the
rights of the Holders of such Notes to receive such payment from the money or
Government Securities held by the Trustee or Paying Agent.

 

ARTICLE
FOURTEEN

 

SUBORDINATION

 

SECTION 1401.  Agreement To Subordinate.  The Company agrees, and each Holder by
accepting a Note agrees, that the Indebtedness evidenced by the Notes is
subordinated in right of payment, to the extent and in the manner provided in
this Article Fourteen, to the prior payment of all Senior Indebtedness of the
Company and that the subordination is for the benefit of and enforceable by the
holders of such Senior Indebtedness. All provisions of this
Article Fourteen shall be subject to Section 1412 hereof.

 

SECTION 1402.  Liquidation, Dissolution, Bankruptcy.  Upon any payment or distribution of the
assets of the Company to creditors upon a total or partial liquidation or a
total or partial dissolution of the Company or in a bankruptcy, reorganization,
insolvency, receivership or similar proceeding relating to the Company or its
property:

 

(1)           holders of Senior
Indebtedness of the Company
shall be entitled to receive payment in full in cash of such Senior
Indebtedness before Holders shall be entitled to receive any payment of
principal of or interest on the Notes;

 

(2)           until such Senior
Indebtedness is paid in full in cash, any payment or distribution to which
Holders would be entitled but for this Article Fourteen shall be made to
holders of such Senior Indebtedness as their interests may appear, except that
Holders may receive Permitted Junior Securities; and

 

114

 

(3)           if a distribution is
made to holders of the Notes that, due to the subordination provisions, should
not have been made to them, such holders of the Notes are required to hold it
in trust for the holders of Senior Indebtedness of the Company and pay it over
to them as their interests may appear.

 

SECTION 1403.  Default on Designated Senior Indebtedness
of the Company.  The Company shall
not pay the principal of, premium, if any, or interest on the Notes or make any
deposit pursuant to Article Four or Article Thirteen and may not purchase,
redeem or otherwise retire any Notes (collectively, “pay the Notes”) (except in
the form of Permitted Junior Securities) if either of the following (a “Payment
Default”) occurs: (a) any Obligation on Designated Senior Indebtedness of
the Company is not paid in full in cash when due (after giving effect to any
applicable grace period); or (b) any other default on Designated Senior
Indebtedness of the Company occurs and the maturity of such Designated Senior
Indebtedness is accelerated in accordance with its terms unless, in either
case, the Payment Default has been cured or waived and any such acceleration
has been rescinded or such Designated Senior Indebtedness has been paid in full
in cash; provided, however, that
the Company shall be entitled to pay the Notes without regard to the foregoing
if the Company and the Trustee receive written notice approving such payment
from the Representatives of all Designated Senior Indebtedness with respect to
which the Payment Default has occurred and is continuing.  During the continuance of any default (other
than a Payment Default) with respect to any Designated Senior Indebtedness of
the Company pursuant to which the maturity thereof may be accelerated
immediately without further notice (except such notice as may be required to
effect such acceleration) or the expiration of any applicable grace periods,
the Company shall not pay the Notes (except in the form of Permitted Junior
Securities) for a period (a “Payment Blockage Period”) commencing upon the
receipt by the Trustee of (with a copy to the Company) written notice (a “Blockage
Notice”) of such default from the Representative of such Designated Senior
Indebtedness specifying an election to effect a Payment Blockage Period and
ending 179 days thereafter.  The
Payment Blockage Period shall end earlier if such Payment Blockage Period is
terminated (1) by written notice to the Trustee and the Company from the
Person or Persons who gave such Blockage Notice; (2) because the default
giving rise to such Blockage Notice is cured, waived or otherwise no longer
continuing; or (3) because such Designated Senior Indebtedness has been
discharged or repaid in full in cash.

 

Notwithstanding
the provisions described in the immediately preceding two sentences (but
subject to the provisions contained in the first sentence of this
Section 1403), unless the holders of such Designated Senior Indebtedness
or the Representative of such Designated Senior Indebtedness shall have
accelerated the maturity of such Designated Senior Indebtedness, the Company
shall be entitled to resume payments on the Notes after termination of such
Payment Blockage Period.  The Notes shall
not be subject to more than one Payment Blockage Period in any consecutive
365-day period, irrespective of the number of defaults with respect to Designated
Senior Indebtedness of the Company during such period; provided
that if any Blockage Notice within such 365-day period is delivered to the
Trustee by or on behalf of any holders of Designated Senior Indebtedness of the
Company (other than holders of Indebtedness under the Senior Credit Facilities),
a Representative of holders of Indebtedness under the

 

115

 

Senior Credit Facilities shall
be entitled to give another Blockage Notice within such period; provided further, however, that
in no event shall the total number of days during which any Payment Blockage
Period or Periods is in effect exceed 179 days in the aggregate during any
365-consecutive-day period, and there must be at least 186 days during any
consecutive 365-day period during which no Payment Blockage Period is in
effect.  For purposes of this Section
1403, no Default or Event of Default which existed or was continuing on the
date of the commencement of any Payment Blockage Period with respect to the
Designated Senior Indebtedness of the Company initiating such Payment Blockage
Period shall be, or be made, the basis of the commencement of a subsequent
Payment Blockage Period by the Representative of such Designated Senior
Indebtedness, whether or not within a period of 365 consecutive days.

 

SECTION 1404.  Acceleration of Payment of Securities.  If payment of the Notes is accelerated
because of an Event of Default, the Company or the Trustee shall promptly
notify the holders of the Designated Senior Indebtedness of the Company (or their
Representatives) of the acceleration.

 

SECTION 1405.  When Distribution Must Be Paid Over.  If a distribution is made to Holders that
because of this Article Fourteen should not have been made to them, the Holders
who receive the distribution shall hold it in trust for holders of Senior
Indebtedness of the Company and pay it over to them as their interests may
appear.

 

SECTION 1406.  Subrogation.  After all Senior Indebtedness of the Company
is paid in full and until the Notes are paid in full, Holders shall be
subrogated to the rights of holders of such Senior Indebtedness to receive
distributions applicable to such Senior Indebtedness.  A distribution made under this Article
Fourteen to holders of such Senior Indebtedness which otherwise would have been
made to Holders is not, as between the Company and Holders, a payment by the
Company on such Senior Indebtedness.

 

SECTION 1407.  Relative Rights.  This Article Fourteen defines the relative
rights of Holders and holders of Senior Indebtedness of the Company.  Nothing in this Indenture shall:

 

(1)           impair, as between
the Company and Holders, the obligation of the Company, which is absolute and
unconditional, to pay principal of and interest on the Notes in accordance with
their terms; or

 

(2)           prevent the Trustee
or any Holder from exercising its available remedies upon a Default, subject to
the rights of holders of Senior Indebtedness of the Company to receive distributions otherwise payable to
Holders.

 

SECTION 1408.  Subordination May Not Be Impaired by Company.  No right of any holder of Senior Indebtedness
of the Company to enforce the subordination of the Indebtedness evidenced by
the Notes shall be impaired by any act or failure to act by the Company or by
its failure to comply with this Indenture.

 

116

 

SECTION 1409.  Rights of Trustee and Paying Agent.  Notwithstanding Section 1403, the
Trustee or Paying Agent shall continue to make payments on the Notes and shall
not be charged with knowledge of the existence of facts that under this Article
Fourteen would prohibit the making of any such payments unless, not less than
two Business Days prior to the date of such payment, a trust officer of the
Trustee receives notice satisfactory to it that such payments are prohibited by
this Article Fourteen.  The Company, the
Registrar or co-registrar, the Paying Agent, a Representative or a holder of
Senior Indebtedness of the Company shall be entitled to give the notice; provided, however, that, if an issue of
Senior Indebtedness of the Company has a Representative, only the
Representative shall be entitled to give the notice.

 

The Trustee in
its individual or any other capacity shall be entitled to hold Senior
Indebtedness of the Company
with the same rights it would have if it were not Trustee.  The Registrar and co-registrar and the Paying
Agent shall be entitled to do the same with like rights.  The Trustee shall be entitled to all the rights
set forth in this Article Fourteen with respect to any Senior Indebtedness of the Company which may at any time
be held by it, to the same extent as any other holder of such Senior
Indebtedness; and nothing in Article Six shall deprive the Trustee 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 Section 607.

 

SECTION 1410.  Distribution or Notice to Representative.  Whenever any Person is to make a distribution
or give a notice to holders of Senior Indebtedness of the Company, such Person
shall be entitled to make such distribution or give such notice to their
Representative (if any).

 

SECTION 1411.  Article Fourteen Not To Prevent
Events of Default or Limit Right To Accelerate.  The failure to make a payment pursuant to the
Notes by reason of any provision in this Article Fourteen shall not be
construed as preventing the occurrence of a Default.  Nothing in this Article Fourteen shall have
any effect on the right of the Holders or the Trustee to accelerate the
maturity of the Notes.

 

SECTION 1412.  Trust Moneys Not Subordinated.  Notwithstanding anything contained herein to
the contrary, payments from money or the proceeds of U.S. Government
Obligations held in trust under Article Four or Article Thirteen by the Trustee
for the payment of principal of and interest on the Notes shall not be
subordinated to the prior payment of any Senior Indebtedness of the Company 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 Indebtedness of the Company or any other creditor of the
Company.

 

SECTION 1413.  Trustee Entitled To Rely.  Upon any payment or distribution pursuant to
this Article Fourteen, the Trustee and the Holders shall be entitled to rely
(a) upon any order or decree of a court of competent jurisdiction in which
any proceedings of the nature referred to in Section 1402 are pending,
(b) upon a certificate of the liquidating trustee or agent or other Person
making such payment or distribution to the Trustee or to the Holders or
(c) upon the Representatives of Senior Indebtedness of

 

117

 

the Company for the purpose of ascertaining the Persons entitled to
participate in such payment or distribution, the holders of such Senior
Indebtedness 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.  In the event that the Trustee determines, in
good faith, that evidence is required with respect to the right of any Person
as a holder of Senior Indebtedness of the Company to participate in any payment
or distribution pursuant to this Article Fourteen, the Trustee shall be
entitled to request such Person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of such Senior Indebtedness held
by such Person, the extent to which such Person is entitled to participate in such
payment or distribution and other facts pertinent to the rights of such Person
under this Article Fourteen, and, if such evidence is not furnished, the
Trustee shall be entitled to defer any payment to such Person pending judicial
determination as to the right of such Person to receive such payment.  The provisions of Sections 601 and 603 shall
be applicable to all actions or omissions of actions by the Trustee pursuant to
this Article Fourteen.

 

SECTION 1414.  Trustee To Effectuate Subordination.  Each Holder by accepting a Note authorizes
and directs the Trustee on his behalf to take such action as may be necessary
or appropriate to acknowledge or effectuate the subordination between the
Holders and the holders of Senior Indebtedness of the Company as provided in
this Article Fourteen and appoints the Trustee as attorney-in-fact for any and
all such purposes.

 

SECTION 1415.  Trustee Not Fiduciary for Holders of
Senior Indebtedness of the Company. 
The Trustee shall not be deemed to owe any fiduciary duty to the holders
of Senior Indebtedness of the Company and shall not be liable to any such
holders if it shall mistakenly pay over or distribute to Holders or the Company
or any other Person, money or assets to which any holders of Senior
Indebtedness of the Company shall be entitled by virtue of this Article
Fourteen or otherwise.

 

SECTION 1416.  Reliance by Holders of Senior Indebtedness
of the Company on Subordination Provisions. 
Each Holder by accepting a Note acknowledges and agrees that the
foregoing subordination provisions are, and are intended to be, an inducement
and a consideration to each holder of any Senior Indebtedness of the Company,
whether such Senior Indebtedness was created or acquired before or after the
issuance of the Notes, to acquire and continue to hold, or to continue to hold,
such Senior Indebtedness and such holder of such Senior Indebtedness shall be
deemed conclusively to have relied on such subordination provisions in
acquiring and continuing to hold, or in continuing to hold, such Senior
Indebtedness.

 

118

 

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

 

	
   

  	
  JOSTENS IH CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ David Tayeh

  	
   

  
	
   

  	
   

  	
  Name: David Tayeh

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JOSTENS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ David Tayeh

  	
   

  
	
   

  	
   

  	
  Name: David Tayeh

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  VON HOFFMANN HOLDINGS INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Gary C. Wetzel

  	
   

  
	
   

  	
   

  	
  Name: Gary C. Wetzel

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  VON HOFFMANN CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Gary C. Wetzel

  	
   

  
	
   

  	
   

  	
  Name: Gary C. Wetzel

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE LEHIGH PRESS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Gary C. Wetzel

  	
   

  
	
   

  	
   

  	
  Name: Gary C. Wetzel

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  

 

119

 

	
   

  	
  PRECISION OFFSET PRINTING COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Gary C. Wetzel

  	
   

  
	
   

  	
   

  	
  Name: Gary C. Wetzel

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ANTHOLOGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Gary C. Wetzel

  	
   

  
	
   

  	
   

  	
  Name: Gary C. Wetzel

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AHC I ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Kenneth A. Budde

  	
   

  
	
   

  	
   

  	
  Name: Kenneth A. Budde

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AKI HOLDING CORP.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Kenneth A. Budde

  	
   

  
	
   

  	
   

  	
  Name: Kenneth A. Budde

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AKI, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Kenneth A. Budde

  	
   

  
	
   

  	
   

  	
  Name: Kenneth A. Budde

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  IST CORP.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Kenneth A. Budde

  	
   

  
	
   

  	
   

  	
  Name: Kenneth A. Budde

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  

 

120

 

	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Dorothy Miller

  	
   

  
	
   

  	
   

  	
  Name: Dorothy Miller

  
	
   

  	
   

  	
  Title: Vice President

  

 

121

SCHEDULE I

 

Guarantors

 

Jostens,
Inc.

Von Hoffmann Holdings Inc.

Von Hoffmann Corporation

The
Lehigh Press, Inc.

Precision
Offset Printing Company, Inc.

Anthology,
Inc.

AHC
I Acquisition Corp.

AKI
Holding Corp.

AKI,
Inc.

IST
Corp.

 

 

Rule 144A / Regulation S / IAI Appendix

 

PROVISIONS RELATING TO INITIAL NOTES,

PRIVATE EXCHANGE NOTES

AND EXCHANGE NOTES

 

1.             Definitions

 

1.1           Definitions.

 

For the
purposes of this Appendix the following terms shall have the meanings indicated
below:

 

“Applicable
Procedures” means, with respect to any transfer or transaction involving a
Temporary Regulation S Global Note or beneficial interest therein, the rules
and procedures of the Depository for such a Temporary Regulation S Global Note,
to the extent applicable to such transaction and as in effect from time to
time.

 

“Definitive
Note” means a certificated Initial Note or Exchange Note or Private Exchange
Note bearing, if required, the appropriate restricted notes legend set forth in
Section 2.3(e).

 

“Depository”
means The Depository Trust Company, its nominees and their respective
successors.

 

“Distribution
Compliance Period”, with respect to any Notes, means the period of 40
consecutive days beginning on and including the later of (i) the day on which
such Notes are first offered to Persons other than distributors (as defined in
Regulation S under the Securities Act) in reliance on Regulation S and (ii) the
issue date with respect to such Notes.

 

“Exchange
Notes” means (1) the 7 5/8%
Senior Subordinated Notes Due 2012 issued pursuant to the Indenture in
connection with a Registered
Exchange Offer pursuant to a
Registration Rights Agreement and
(2) Additional Notes, if any, issued pursuant to a registration statement
filed with the SEC under the Securities Act.

 

“IAI” means an
institutional “accredited investor”, as defined in Rule 501(a)(1), (2),
(3) and (7) of Regulation D under the Securities Act.

 

“Initial Notes”
means (1) $500,000,000
aggregate principal amount of 7 5/8% Senior Subordinated Notes Due 2012
issued on the Issue Date and
(2) Additional Notes, if any, issued in a transaction exempt from the
registration requirements of the Securities Act.

 

“Initial
Purchasers” means (1) with
respect to the Initial Notes issued on the Issue Date,  Credit Suisse First Boston LLC, Deutsche
Bank Securities Inc., Banc of America Securities LLC, Calyon Securities (USA)
Inc., CIT Capital Securities LLC, Greenwich Capital Markets, Inc., ING
Financial Markets LLC and NatCity Investments, Inc., and (2) with respect to each issuance of Additional Notes, the
Persons purchasing such Additional Notes under the related Purchase Agreement.

 

 

“Notes” means
the Initial Notes, the Exchange Notes and the Private Exchange Notes, treated
as a single class.

 

“Notes
Custodian” means the custodian with respect to a Global Notes (as appointed by
the Depository), or any successor Person thereto and shall initially be the
Trustee.

 

“Private
Exchange” means the offer by the Company, pursuant to a Registration Rights Agreement, to the Initial Purchasers to issue and deliver to each Initial Purchaser, in exchange
for the Initial Notes held by the Initial Purchaser as part of its initial
distribution, a like aggregate principal amount of Private Exchange Notes.

 

“Private
Exchange Notes” means any 7 5/8% Senior Subordinated Notes Due 2012 issued in
connection with a Private Exchange.

 

“Purchase
Agreement” means (1) with respect
to the Initial Notes issued on the Issue Date, the Purchase Agreement
dated September 23, 2004, among the Company, the Guarantors and the Representatives
on behalf of the Initial Purchasers,
and (2) with respect to each issuance of Additional Notes, the purchase
agreement or underwriting agreement among the Company, the Guarantors and the
Persons purchasing such Additional Notes.

 

“QIB” means a “qualified
institutional buyer” as defined in Rule 144A.

 

“Registered
Exchange Offer” means the offer by the Company, pursuant to a Registration Rights Agreement, to
certain Holders of Initial Notes, to issue and deliver to such Holders, in
exchange for the Initial Notes, a like aggregate principal amount of Exchange
Notes registered under the Securities Act.

 

“Registration
Rights Agreement” means (1) with
respect to the Initial Notes issued on the Issue Date, the Exchange and
Registration Rights Agreement dated October 4, 2004, among the Company,
the Guarantors and the Representatives on behalf of the Initial Purchasers and (2) with respect to each issuance of
Additional Notes issued in a transaction exempt from the registration
requirements of the Securities Act, the registration rights agreement, if any,
among the Company and the Persons purchasing such Additional Notes under the
related Purchase Agreement.

 

“Representatives”
means Credit Suisse First Boston LLC and Deutsche Bank Securities Inc., as representatives
of the Initial Purchasers.

 

“Rule 144A
Notes” means all Notes offered and sold to QIBs in reliance on Rule 144A.

 

“Securities
Act” means the Securities Act of 1933.

 

“Shelf
Registration Statement” means the registration statement issued by the Company
in connection with the offer and sale of Initial Notes or Private Exchange
Notes pursuant to a Registration
Rights Agreement.

 

2

 

“Transfer
Restricted Notes” means Notes that bear or are required to bear the legend
relating to restrictions on transfer relating to the Securities Act set forth
in Section 2.3(e) hereto.

 

1.2           Other
Definitions.

 

 

	
  Term

  	
   

  	
  Defined in

  Section:

  
	
  “Agent Members”

  	
   

  	
  2.1(b)

  
	
  “Global Notes”

  	
   

  	
  2.1(a)

  
	
  “IAI Global Note”

  	
   

  	
  2.1(a)

  
	
  “Permanent Regulation S Global Note”

  	
   

  	
  2.1(a)

  
	
  “Regulation S”

  	
   

  	
  2.1(a)

  
	
  “Regulation S Global Note”

  	
   

  	
  2.1(a)

  
	
  “Rule 144A”

  	
   

  	
  2.1(a)

  
	
  “Rule 144A Global Note”

  	
   

  	
  2.1(a)

  
	
  “Temporary Regulation S Global Note”

  	
   

  	
  2.1(a)

  

 

2.             The Notes.

 

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

 

3

 

only upon certification in form reasonably
satisfactory to the Trustee that (i) beneficial ownership interests in
such Temporary Regulation S Global Note are owned either by non-U.S. persons or
U.S. persons who purchased such interests in a transaction that did not require
registration under the Securities Act and (ii) in the case of an exchange
for an IAI Global Note, certification that the interest in the Temporary
Regulation S Global Note is being transferred to an institutional “accredited
investor” under the Securities Act that is an institutional accredited investor
acquiring the notes for its own account or for the account of an institutional
accredited investor.

 

Beneficial
interests in Temporary Regulation S Global Notes or IAI Global Notes may be
exchanged for interests in Rule 144A Global Notes if (1) such
exchange occurs in connection with a transfer of Notes in compliance with
Rule 144A and (2) the transferor of the beneficial interest in the
Temporary Regulation S Global Note or the IAI Global Note, as applicable,
first delivers to the Trustee a written certificate (in a form satisfactory to
the Trustee) to the effect that the beneficial interest in the Temporary
Regulation S Global Note or the IAI Global Note, as applicable, is being
transferred to a Person (a) who the transferor reasonably believes to be a QIB,
(b) purchasing for its own account or the account of a QIB in a
transaction meeting the requirements of Rule 144A, and (c) in accordance with
all applicable securities laws of the States of the United States and other jurisdictions.

 

Beneficial
interests in Temporary Regulation S Global Notes and Rule 144A Global
Notes may be exchanged for an interest in IAI Global Notes if (1) such
exchange occurs in connection with a transfer of the notes in compliance with
an exemption under the Securities Act and (2) the transferor of the
Regulation S Global Note or Rule 144A Global Note, as applicable, first
delivers to the trustee a written certificate (substantially in the form of
Exhibit 2) to the effect that (A) the Regulation S Global Note or Rule
144A Global Note, as applicable, is being transferred (a) to an “accredited
investor” within the meaning of 501(a)(1),(2),(3) and (7) under the Securities
Act that is an institutional investor acquiring the notes for its own account
or for the account of such an institutional accredited investor, in each case
in a minimum principal amount of the notes of $250,000, for investment purposes
and not with a view to or for offer or sale in connection with any distribution
in violation of the Securities Act and (B) in accordance with all applicable
securities laws of the States of the United States and other jurisdictions.

 

Beneficial
interests in a Rule 144A Global Note or an IAI Global Note may be
transferred to a Person who takes delivery in the form of an interest in a
Regulation S Global Note, whether before or after the expiration of the
Distribution Compliance Period, only if the transferor first delivers to the
Trustee a written certificate (in the form provided in the Indenture) to the effect
that such transfer is being made in accordance with Rule 903 or 904 of
Regulation S or Rule 144 (if applicable).

 

The Rule 144A
Global Note, the IAI Global Note, the Temporary Regulation S Global Note and
the Permanent Regulation S Global Note are collectively referred to herein as “Global
Notes”.  The aggregate principal amount
of the Global

 

4

 

Notes may from time to time be
increased or decreased by adjustments made on the records of the Trustee and
the Depository or its nominee as hereinafter provided.

 

(b)           Book-Entry
Provisions.  This Section 2.1(b)
shall apply only to a Global Note deposited with or on behalf of the
Depository.

 

The Company
shall execute and the Trustee shall, in accordance with this Section 2.1(b),
authenticate and deliver initially one or more Global Notes that (a) shall
be registered in the name of the Depository for such Global Note or Global
Notes or the nominee of such Depository and (b) shall be delivered by the
Trustee to such Depository or pursuant to such Depository’s instructions or
held by the Trustee as custodian for the Depository.

 

Members of, or
participants in, the Depository (“Agent Members”) shall have no rights under
this Indenture with respect to any Global Note held on their behalf by the
Depository or by the Trustee as the custodian of the Depository or under such
Global Note, and the Company, the Trustee and any agent of the Company or the
Trustee shall be entitled to treat the Depository as the absolute owner of such
Global Note for all purposes whatsoever. 
Notwithstanding the foregoing, nothing herein shall prevent the Company,
the Trustee or any agent of the Company or the Trustee from giving effect to
any written certification, proxy or other authorization furnished by the
Depository or impair, as between the Depository and its Agent Members, the
operation of customary practices of such Depository governing the exercise of
the rights of a holder of a beneficial interest in any Global Note.

 

(c)           Definitive Notes.  Except as provided in this Section 2.1 or
Section 2.3 or 2.4, owners of beneficial interests in Global Notes shall
not be entitled to receive physical delivery of Definitive Notes.

 

2.2           Authentication.  The
Trustee shall authenticate and deliver: 
(1) on the Issue Date, an aggregate principal amount of $500,000,000 7
5/8% Senior Subordinated Notes Due 2012,
(2) any Additional Notes for an original issue in an aggregate principal
amount specified in the written order of the Company pursuant to
Section 202 of the Indenture  and
(3) Exchange Notes or
Private Exchange Notes for issue only in a Registered Exchange Offer or a
Private Exchange, respectively, pursuant to a Registration Rights Agreement,
for a like principal amount of Initial Notes, in each case upon a written order
of the Company signed by two Officers or by an Officer and either an Assistant
Treasurer or an Assistant Secretary of the Company.  Such order shall specify the amount of the
Notes to be authenticated and the date on which the original issue of Notes is
to be authenticated and, in the case of
any issuance of Additional Notes pursuant to Section 312 of the Indenture,
shall certify that such issuance is in compliance with Section 1011 of the
Indenture.

 

2.3           Transfer and
Exchange.

 

(a)           Transfer and
Exchange of Definitive Notes.  When
Definitive Notes are presented to the Registrar with a request:

 

5

 

(x)to
register the transfer of such Definitive Notes; or

 

(y)to
exchange such Definitive Notes for an equal principal amount of Definitive
Notes of other authorized denominations,

 

the Registrar
shall register the transfer or make the exchange as requested if its reasonable
requirements for such transaction are met; provided, however, that the Definitive Notes surrendered for transfer
or exchange:

 

(i)            shall
be duly endorsed or accompanied by a written instrument of transfer in form
reasonably satisfactory to the Company and the Registrar, duly executed by the
Holder thereof or its attorney duly authorized in writing; and

 

(ii)           if
such Definitive Notes are required to bear a restricted notes legend, they are
being transferred or exchanged pursuant to an effective registration statement
under the Securities Act, pursuant to Section 2.3(b) or pursuant to clause (A),
(B) or (C) below, and are accompanied by the following additional information
and documents, as applicable:

 

(A)          if such Definitive
Notes are being delivered to the Registrar by a Holder for registration in the
name of such Holder, without transfer, a certification from such Holder to that
effect; or

 

(B)           if such Definitive
Notes are being transferred to the Company, a certification to that effect; or

 

(C)           if such Definitive
Notes are being transferred (x) pursuant to an exemption from registration
in accordance with Rule 144A, Regulation S or Rule 144 under the
Securities Act; or (y) in reliance upon another exemption from the requirements
of the Securities Act: (i) a certification to that effect (in the form set
forth on the reverse of the Note) and (ii) if the Company so requests, an
opinion of counsel or other evidence reasonably satisfactory to it as to the
compliance with the restrictions set forth in the legend set forth in
Section 2.3(e)(i).

 

(b)           Restrictions on
Transfer of a Definitive Note for a Beneficial Interest in a Global Note.  A Definitive Note may not be exchanged
for a beneficial interest in a Rule 144A Global Note, an IAI Global Note or a
Permanent Regulation S Global Note except upon satisfaction of the
requirements set forth below.  Upon
receipt by the Trustee of a Definitive Note, duly endorsed or accompanied by
appropriate instruments of transfer, in form satisfactory to the Trustee,
together with:

 

(i)            certification, in the form set forth
on the reverse of the Note, that such Definitive Note is either (A) being
transferred to a QIB in accordance with Rule 144A, (B) being
transferred to an IAI or (C) being transferred after expiration of the
Distribution Compliance Period by a Person who initially purchased such Note in
reliance on Regulation S to a

 

6

 

buyer who elects to hold its interest in such
Note in the form of a beneficial interest in the Permanent Regulation S Global
Note; and

 

(ii)           written instructions directing the
Trustee to make, or to direct the Notes Custodian to make, an adjustment on its
books and records with respect to such Rule 144A Global Note (in the case of a
transfer pursuant to clause (b)(i)(A)), IAI Global Note (in the case of a
transfer pursuant to clause (b)(1)(B)) or Permanent Regulation S
Global Note (in the case of a transfer pursuant to clause (b)(i)(B)) to reflect
an increase in the aggregate principal amount of the Notes represented by the
Rule 144A Global Note, IAI Global Note or Permanent Regulation S Global
Note, as applicable, such instructions to contain information regarding the
Depository account to be credited with such increase,

 

then the
Trustee shall cancel such Definitive Note and cause, or direct the Notes
Custodian to cause, in accordance with the standing instructions and procedures
existing between the Depository and the Notes Custodian, the aggregate
principal amount of Notes represented by the Rule 144A Global Note, IAI Global
Note or Permanent Regulation S Global Note, as applicable, to be increased by
the aggregate principal amount of the Definitive Note to be exchanged and shall
credit or cause to be credited to the account of the Person specified in such
instructions a beneficial interest in the Rule 144A Global Note, IAI Global
Note or Permanent Regulation S Global Note, as applicable, equal to the
principal amount of the Definitive Note so canceled.  If no Rule 144A Global Notes, IAI Global
Notes or Permanent Regulation S Global Notes, as applicable, are then
outstanding, the Company shall issue and the Trustee shall authenticate, upon
written order of the Company in the form of an Officers’ Certificate of the
Company, a new Rule 144A Global Note, IAI Global Note or Permanent Regulation S
Global Note, as applicable, in the appropriate principal amount.

 

(c)           Transfer and
Exchange of Global Notes.

 

(i)            The transfer and exchange of Global
Notes or beneficial interests therein shall be effected through the Depository,
in accordance with this Indenture (including applicable restrictions on
transfer set forth herein, if any) and the procedures of the Depository
therefor.  A transferor of a beneficial
interest in a Global Note shall deliver to the Registrar a written order given
in accordance with the Depository’s procedures containing information regarding
the participant account of the Depository to be credited with a beneficial
interest in the Global Note.  The
Registrar shall, in accordance with such instructions instruct the Depository
to credit to the account of the Person specified in such instructions a
beneficial interest in the Global Note and to debit the account of the Person
making the transfer the beneficial interest in the Global Note being
transferred.

 

(ii)           If the proposed transfer is a
transfer of a beneficial interest in one Global Note to a beneficial interest
in another Global Note, the Registrar shall reflect on its books and records
the date and an increase in

 

7

 

the principal amount of the Global Note to
which such interest is being transferred in an amount equal to the principal
amount of the interest to be so transferred, and the Registrar shall reflect on
its books and records the date and a corresponding decrease in the principal
amount of the Global Note from which such interest is being transferred.

 

(iii)          Notwithstanding any other provisions
of this Appendix (other than the provisions set forth in Section 2.4), a
Global Note may not be transferred as a whole except by the Depository to a
nominee of the Depository or by a nominee of the Depository to the Depository
or another nominee of the Depository or by the Depository or any such nominee
to a successor Depository or a nominee of such successor Depository.

 

(iv)          In the event that Global Note is
exchanged for Definitive Notes to Section 2.4 of this Appendix, prior to the
consummation of a Registered Exchange Offer or the effectiveness of a Shelf
Registration Statement with respect to such Notes, such Notes may be exchanged
only in accordance with such procedures as are substantially consistent with
the provisions of this Section 2.3 (including the certification requirements
set forth on the reverse of the Initial Notes intended to ensure that such
transfers comply with Rule 144A, Regulation S or another applicable exemption
under the Securities Act, as the case may be) and such other procedures as may
from time to time be adopted by the Company.

 

(d)           Restrictions on
Transfer of Temporary Regulation S Global Notes.  During the Distribution Compliance Period,
beneficial ownership interests in Temporary Regulation S Global Notes may only
be sold, pledged or transferred in accordance with the Applicable Procedures
and only (i) to the Company, (ii) in an offshore transaction in
accordance with Regulation S (other than a transaction resulting in an
exchange for an interest in a Permanent Regulation S Global Note),
(iii) pursuant to an effective registration statement under the Securities
Act, in each case in accordance with any applicable securities laws of any
State of the United States.

 

(e)           Legend.

 

(i)            Except as permitted by the following
paragraphs (ii), (iii) and (iv), each Note certificate evidencing the
Global Notes (and all Notes issued in exchange therefor or in substitution
thereof), in the case of Notes offered otherwise than in reliance on
Regulation S shall bear a legend in substantially the following form:

 

THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH

 

8

 

REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.  EACH PURCHASER OF THIS NOTE IS HEREBY
NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM THE
PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A
THEREUNDER.

 

THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE COMPANY THAT
(A) THIS NOTE MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED,
ONLY (I) TO THE COMPANY, (II) IN THE UNITED STATES TO A PERSON WHOM THE
SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS
OF RULE 144A, (III) TO AN “ACCREDITED INVESTOR” WITHIN THE MEANING OF
RULE 501(A)(1),(2),(3) OR (7) UNDER THE SECURITIES ACT THAT, PRIOR TO SUCH
TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
REPRESENTATIONS AND AGREEMENTS RELATING TO THE TRANSFER OF THIS NOTE (THE FORM
OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT
OF AN AGGREGATE PRINCIPAL AMOUNT OF NOTES LESS THAN $250,000, AN OPINION OF
COUNSEL ACCEPTABLE TO THE COMPANY THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE
SECURITIES ACT, (IV) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION
IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (V) PURSUANT TO
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144
THEREUNDER (IF AVAILABLE) OR (VI) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (VI) IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED
TO, NOTIFY ANY PURCHASER OF THIS NOTE FROM IT OF THE RESALE RESTRICTIONS
REFERRED TO IN (A) ABOVE.

 

Each
certificate evidencing a Note offered in reliance on Regulation S shall, in
addition to the foregoing, bear a legend in substantially the following form:

 

THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
ORIGINALLY EXEMPT FROM

 

9

 

REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND MAY NOT BE TRANSFERRED IN THE UNITED STATES OR TO, OR FOR THE
ACCOUNT OR BENEFIT OF, ANY U.S. PERSON EXCEPT PURSUANT TO AN AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ALL
APPLICABLE STATE SECURITIES LAWS.  TERMS
USED ABOVE HAVE THE MEANINGS GIVEN TO THEM IN REGULATION S UNDER THE SECURITIES
ACT.

 

Each
Definitive Note shall also bear the following additional legend:

 

IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE
REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH
TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES
WITH THE FOREGOING RESTRICTIONS.

 

(ii)           Upon any sale or transfer of a
Transfer Restricted Note (including any Transfer Restricted Note represented by
a Global Note) pursuant to Rule 144 under the Securities Act, the Registrar
shall permit the transferee thereof to exchange such Transfer Restricted Note
for a certificated Note that does not bear the legend set forth above and
rescind any restriction on the transfer of such Transfer Restricted Note, if
the transferor thereof certifies in writing to the Registrar that such sale or
transfer was made in reliance on Rule 144 (such certification to be in the
form set forth on the reverse of the Note).

 

(iii)          After a transfer of any Initial Notes
or Private Exchange Notes pursuant to and during the period of the
effectiveness of a Shelf Registration Statement with respect to such Initial
Notes or Private Exchange Notes, as the case may be, all requirements pertaining
to legends on such Initial Note or such Private Exchange Note will cease to
apply, the requirements requiring any such Initial Note or such Private
Exchange Note issued to certain Holders be issued in global form will cease to
apply, and a certificated Initial Note or Private Exchange Note or an Initial
Note or Private Exchange Note in global form, in each case without restrictive
transfer legends, will be available to the transferee of the Holder of such
Initial Notes or Private Exchange Notes upon exchange of such transferring
Holder’s certificated Initial Note or Private Exchange Note or directions to
transfer such Holder’s interest in the Global Note, as applicable.

 

(iv)          Upon the consummation of a Registered
Exchange Offer with respect to the Initial Notes, all requirements pertaining
to such Initial

 

10

 

Notes that Initial Notes issued to certain
Holders be issued in global form will still apply with respect to Holders of
such Initial Notes that do not exchange their Initial Notes, and Exchange Notes
in certificated or global form, in each case without the restricted notes
legend set forth in Exhibit 1 hereto will be available to Holders that
exchange such Initial Notes in such Registered Exchange Offer.

 

(v)           Upon the consummation of a Private
Exchange with respect to the Initial Notes, all requirements pertaining to such
Initial Notes that Initial Notes issued to certain Holders be issued in global
form will still apply with respect to Holders of such Initial Notes that do not
exchange their Initial Notes, and Private Exchange Notes in global form with
the global notes legend and the applicable restricted notes legend set forth in
Exhibit 1 hereto will be available to Holders that exchange such Initial
Notes in such Private Exchange.

 

(f)            Cancellation or
Adjustment of Global Note.  At such
time as all beneficial interests in a Global Note have either been exchanged
for Definitive Notes, redeemed, purchased or canceled, such Global Note shall
be returned to the Depository for cancellation or retained and canceled by the
Trustee.  At any time prior to such
cancellation, if any beneficial interest in a Global Note is exchanged for
certificated Notes, redeemed, purchased or canceled, the principal amount of
Notes represented by such Global Note shall be reduced and an adjustment shall
be made on the books and records of the Trustee (if it is then the Notes
Custodian for such Global Note) with respect to such Global Note, by the
Trustee or the Notes Custodian, to reflect such reduction.

 

(g)           No Obligation of
the Trustee.

 

(i)            The Trustee shall have no
responsibility or obligation to any beneficial owner of a Global Note, a member
of, or a participant in the Depository or other Person with respect to the
accuracy of the records of the Depository or its nominee or of any participant
or member thereof, with respect to any ownership interest in the Notes or with
respect to the delivery to any participant, member, beneficial owner or other
Person (other than the Depository) of any notice (including any notice of
redemption) or the payment of any amount, under or with respect to such
Notes.  All notices and communications to
be given to the Holders and all payments to be made to Holders under the Notes
shall be given or made only to or upon the order of the registered Holders
(which shall be the Depository or its nominee in the case of a Global
Note).  The rights of beneficial owners
in any Global Note shall be exercised only through the Depository subject to
the applicable rules and procedures of the Depository.  The Trustee may rely and shall be fully
protected in relying upon information furnished by the Depository with respect
to its members, participants and any beneficial owners.

 

11

 

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

 

2.4           Definitive Notes.

 

(a)           A Global Note
deposited with the Depository or with the Trustee as Notes Custodian for the
Depository pursuant to Section 2.1 shall be transferred to the beneficial
owners thereof in the form of Definitive Notes in an aggregate principal amount
equal to the principal amount of such Global Note, in exchange for such Global
Note, only if such transfer complies with Section 2.3 hereof and
(i) the Depository notifies the Company that it is unwilling or unable to
continue as Depository for such Global Note and the Depository fails to appoint
a successor depository or if at any time such Depository ceases to be a “clearing
agency” registered under the Exchange Act, in either case, and a successor
depository is not appointed by the Company within 90 days of such notice,
or (ii) an Event of Default has occurred and is continuing or (iii) the
Company, in its sole discretion, notifies the Trustee in writing that it elects
to cause the issuance of Definitive Notes under this Indenture.

 

(b)           Any Global Note that
is transferable to the beneficial owners thereof pursuant to this
Section 2.4 shall be surrendered by the Depository to the Trustee located
at its principal corporate trust office in the Borough of Manhattan, The City
of New York, to be so transferred, in whole or from time to time in part,
without charge, and the Trustee shall authenticate and deliver, upon such
transfer of each portion of such Global Note, an equal aggregate principal
amount of Definitive Notes of authorized denominations.  Any portion of a Global Note transferred
pursuant to this Section 2.4 shall be executed, authenticated and
delivered only in denominations of $1,000 principal amount and any integral
multiple thereof and registered in such names as the Depository shall
direct.  Any Definitive Note delivered in
exchange for an interest in the Transfer Restricted Note shall, except as
otherwise provided by Section 2.3(e) hereof, bear the applicable
restricted notes legend and definitive notes legend set forth in Exhibit 1
hereto.

 

(c)           Subject to the
provisions of Section 2.4(b) hereof, the registered Holder of a Global
Note shall be entitled to grant proxies and otherwise authorize any Person,
including Agent Members and Persons that may hold interests through Agent
Members, to take any action which a Holder is entitled to take under this
Indenture or the Notes.

(d)           In the event of the
occurrence of one of the events specified in Section 2.4(a) hereof, the
Company shall promptly make available to the Trustee a

12

 

reasonable supply of definitive notes in definitive,
fully registered form without interest coupons. 
in the event that such definitive notes are not issued, the company
expressly acknowledges, with respect to the right of any holder to pursue a
remedy pursuant to this indenture, including pursuant to section 507, the right
of any beneficial owner of notes to pursue such remedy with respect to the
portion of the global note that represents such beneficial owner’s notes as if
such definitive notes had been issued. 

13

 

EXHIBIT 1

to Rule 144A / Regulation S / IAI Appendix

 

[FORM OF FACE OF INITIAL
NOTE][Global Notes Legend]

 

UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

TRANSFERS OF
THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND
TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN
ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE
REVERSE HEREOF.

 

[[FOR
REGULATION S GLOBAL NOTE ONLY] UNTIL 40 DAYS AFTER THE LATER OF COMMENCEMENT OR
COMPLETION OF THE OFFERING, AN OFFER OR SALE OF SECURITIES WITHIN THE UNITED
STATES BY A DEALER (AS DEFINED IN THE SECURITIES ACT) MAY VIOLATE THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IF SUCH OFFER OR SALE IS MADE
OTHERWISE THAN IN ACCORDANCE WITH RULE 144A THEREUNDER.]

 

[Restricted
Notes Legend for Notes offered otherwise

than in Reliance on Regulation S]

 

THIS NOTE (OR
ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE
ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.  EACH PURCHASER OF THIS NOTE IS HEREBY
NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM THE
PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A
THEREUNDER.

 

THE HOLDER OF
THIS NOTE AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS NOTE MAY BE
OFFERED, RESOLD, PLEDGED OR

 

 

OTHERWISE TRANSFERRED, ONLY
(I) TO THE COMPANY, (II) WITHIN THE UNITED STATES TO A PERSON WHOM THE
SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A, (III) TO AN “ACCREDITED INVESTOR” WITHIN
THE MEANING OF RULE 501(A)(1),(2),(3) OR (7) UNDER THE SECURITIES ACT
THAT, PRIOR TO SUCH TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING
CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE TRANSFER OF THIS NOTE
(THE FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH TRANSFER IS
IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF NOTES LESS THAN $250,000, AN
OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY THAT SUCH TRANSFER IS IN
COMPLIANCE WITH THE SECURITIES ACT, (IV) OUTSIDE THE UNITED STATES IN AN
OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT,
(V) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (VI) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I)
THROUGH (VI) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF
THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS
REQUIRED TO, NOTIFY ANY PURCHASER OF THIS NOTE FROM IT OF THE RESALE RESTRICTIONS
REFERRED TO IN (A) ABOVE.

 

[Restricted
Notes Legend for Notes Offered in Reliance on Regulation S]

 

THIS NOTE (OR
ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION ORIGINALLY EXEMPT FROM
REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND MAY NOT BE TRANSFERRED IN THE UNITED STATES OR TO,
OR FOR THE ACCOUNT OR BENEFIT OF, ANY U.S. PERSON EXCEPT PURSUANT TO AN
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
AND ALL APPLICABLE STATE SECURITIES LAWS. 
TERMS USED ABOVE HAVE THE MEANINGS GIVEN TO THEM IN REGULATION S UNDER
THE SECURITIES ACT.

 

[Temporary
Regulation S Global Note Legend]

 

EXCEPT AS SET
FORTH BELOW, BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY REGULATION S
GLOBAL NOTE WILL NOT BE EXCHANGEABLE FOR INTERESTS IN THE PERMANENT
REGULATION S GLOBAL NOTE OR ANY OTHER NOTE REPRESENTING AN INTEREST IN THE
NOTES REPRESENTED HEREBY WHICH DO NOT CONTAIN A LEGEND CONTAINING RESTRICTIONS
ON TRANSFER, UNTIL THE EXPIRATION OF THE “40-DAY DISTRIBUTION COMPLIANCE PERIOD”
(WITHIN THE MEANING OF RULE 903(b)(2) OF REGULATION S UNDER THE SECURITIES
ACT) AND

 

2

 

THEN ONLY UPON CERTIFICATION IN
FORM REASONABLY SATISFACTORY TO THE TRUSTEE THAT SUCH BENEFICIAL INTERESTS ARE
OWNED EITHER BY NON-U.S. PERSONS OR U.S. PERSONS WHO PURCHASED SUCH INTERESTS
IN A TRANSACTION THAT DID NOT REQUIRE REGISTRATION UNDER THE SECURITIES
ACT.  DURING SUCH 40-DAY DISTRIBUTION
COMPLIANCE PERIOD, BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY
REGULATION S GLOBAL NOTE MAY ONLY BE SOLD, PLEDGED OR TRANSFERRED
(I) TO THE COMPANY, (II) OUTSIDE THE UNITED STATES IN A TRANSACTION IN
ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, OR
(III) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT, IN EACH OF CASES (I) THROUGH (III) IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.  HOLDERS OF INTERESTS IN THIS TEMPORARY
REGULATION S GLOBAL NOTE WILL NOTIFY ANY PURCHASER OF THIS NOTE OF THE
RESALE RESTRICTIONS REFERRED TO ABOVE, IF THEN APPLICABLE.

 

AFTER THE
EXPIRATION OF THE DISTRIBUTION COMPLIANCE PERIOD BENEFICIAL INTERESTS IN THIS
TEMPORARY REGULATION S GLOBAL NOTE MAY BE EXCHANGED FOR INTERESTS IN A
RULE 144A GLOBAL NOTE ONLY IF (1) SUCH EXCHANGE OCCURS IN CONNECTION WITH
A TRANSFER OF THE NOTES IN COMPLIANCE WITH RULE 144A AND (2) THE
TRANSFEROR OF THE REGULATION S GLOBAL NOTE FIRST DELIVERS TO THE TRUSTEE A
WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO THIS CERTIFICATE) TO THE EFFECT
THAT THE REGULATION S GLOBAL NOTE IS BEING TRANSFERRED (A) TO A PERSON WHO
THE TRANSFEROR REASONABLY BELIEVES TO BE A QUALIFIED INSTITUTIONAL BUYER WITHIN
THE MEANING OF RULE 144A, (B) TO A PERSON WHO IS PURCHASING FOR ITS OWN ACCOUNT
OR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A, AND (C) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES
LAWS OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS.

 

AFTER THE
EXPIRATION OF THE DISTRIBUTION COMPLIANCE PERIOD, BENEFICIAL INTERESTS IN THIS
TEMPORARY REGULATION S GLOBAL NOTE MAY BE EXCHANGED FOR INTERESTS IN AN IAI
GLOBAL NOTE ONLY IF (1) SUCH EXCHANGE OCCURS IN CONNECTION WITH A TRANSFER
OF THE NOTES IN COMPLIANCE WITH AN EXEMPTION UNDER THE SECURITIES ACT AND
(2) THE TRANSFEROR OF THE REGULATION S GLOBAL NOTE FIRST DELIVERS TO
THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO THIS CERTIFICATE) TO
THE EFFECT THAT THE REGULATION S GLOBAL NOTE IS BEING TRANSFERRED (A) TO
AN “ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501(A)(1),(2),(3) OR
(7) UNDER THE SECURITIES ACT THAT, PRIOR TO SUCH TRANSFER, FURNISHES THE
TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS
RELATING TO THE TRANSFER OF

 

3

 

THIS NOTE (THE FORM OF WHICH
CAN BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN
AGGREGATE PRINCIPAL AMOUNT OF NOTES LESS THAN $250,000, AN OPINION OF COUNSEL
ACCEPTABLE TO THE COMPANY THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE
SECURITIES ACT AND (B) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS
OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS.

 

BENEFICIAL
INTERESTS IN A RULE 144A GLOBAL NOTE OR AN IAI GLOBAL NOTE MAY BE TRANSFERRED
TO A PERSON WHO TAKES DELIVERY IN THE FORM OF AN INTEREST IN THE REGULATION S
GLOBAL NOTE, WHETHER BEFORE OR AFTER THE EXPIRATION OF THE 40-DAY DISTRIBUTION
COMPLIANCE PERIOD, ONLY IF THE TRANSFEROR FIRST DELIVERS TO THE TRUSTEE A WRITTEN
CERTIFICATE (IN THE FORM ATTACHED TO THIS CERTIFICATE) TO THE EFFECT THAT SUCH
TRANSFER IS BEING MADE IN ACCORDANCE WITH RULE 903 OR 904 OF REGULATION S
OR RULE 144 (IF AVAILABLE).

 

[Definitive
Notes Legend]

 

IN CONNECTION
WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT
SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY
REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

 

4

 

	
  No.           

  	
  $         

  

 

7 5/8% Senior
Subordinated Notes Due 2012

 

Jostens IH
Corp., a Delaware corporation, promises to pay to                 ,
or registered assigns, the principal sum of                 
Dollars on October 1, 2012.

 

Interest Payment
Dates:  April 1 and October 1.

 

Record
Dates:  March 15 and September 15.

 

Additional
provisions of this Note are set forth on the other side of this Note.

 

Dated:

 

	
  JOSTENS IH CORP.

  
	
  By

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
    Name:

  
	
   

  	
    Title:

  
	
   

  	
   

  
	
  By

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
    Name:

  
	
   

  	
    Title:

  

 

 

	
  TRUSTEE’S CERTIFICATE OF

  AUTHENTICATION

  	
   

  
	
   

  	
   

  
	
  THE BANK OF NEW YORK

  	
   

  
	
  as Trustee, certifies

  that this is one of

  the Notes referred

  to in the Indenture.

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
    Authorized Signatory

  	
   

  
				

 

5

 

[FORM OF REVERSE SIDE OF INITIAL NOTE]

7 5/8% Senior
Subordinated Note Due 2012

 

1.             Principal and Interest; Subordination

 

The Company
will pay the principal of this Note on October 1, 2012.

 

The Company
promises to pay interest and Special Interest, if any, on the principal amount
of this Note on each Interest Payment Date, as set forth below, at the rate of
7 5/8% per annum (subject to adjustment as provided below).

 

Interest, and
Special Interest, if any, will be payable semi-annually (to the Holders of
record of the Notes (or any Predecessor Notes) at the close of business on
March 15 or September 15 immediately preceding the Interest Payment Date) on
each Interest Payment Date, commencing April 1, 2005.

 

The Holder of
this Note is entitled to the benefits of the Exchange and Registration Rights
Agreement, dated October 4, 2004, among the Company, the Guarantors and
the Initial Purchasers named therein (the “Registration Rights Agreement”).

 

Interest on
this Note will accrue from the most recent date to which interest has been paid
or, if no interest has been paid, from October 4, 2004[; provided that, if there is no existing
default in the payment of interest and if this Note is authenticated between a
Regular Record Date referred to on the face hereof and the next succeeding
Interest Payment Date, interest shall accrue from such Interest Payment
Date].  Interest will be computed on the
basis of a 360-day year of twelve 30-day months.

 

The Company
shall pay interest and Special Interest if any, on overdue principal and
premium, if any, and interest on overdue installments of interest, to the
extent lawful, at a rate per annum equal to the rate of interest applicable to
the Notes.

 

The
indebtedness evidenced by the Notes is, to the extent and in the manner
provided in the Indenture, subordinate and subject in right of payment to the
prior payment in full of all Senior Indebtedness, and this Note is issued
subject to such provisions.  Each Holder
of this Note, by accepting the same, (a) agrees to and shall be bound by
such provisions, (b) authorizes and directs the Trustee on its behalf to
take such action as may be necessary or appropriate to effectuate the
subordination as provided in the Indenture and (c) appoints the Trustee its
attorney in-fact for such purpose.

 

2.             Method of Payment.

 

The Company
will pay interest (except defaulted interest) on the principal amount of the
Notes on each April 1 and October 1 to the Persons who are Holders (as
reflected in the Note Register at the close of business on March 15 and September
15 immediately preceding the Interest Payment Date), in each case, even if the
Note is cancelled on registration of transfer or registration of exchange after
such Regular Record Date; provided
that, with respect to the payment of principal, the Company will make

 

6

 

payment to the Holder that
surrenders this Note to any Paying Agent on or after October 1, 2012.

 

The Company
will pay principal (premium, if any) and interest in money of the United States
that at the time of payment is legal tender for payment of public and private
debts.  However, the Company may pay
principal (premium, if any) and interest by its check payable in such money.  The Company may pay interest on the Notes
either (a) by mailing a check for such interest to a Holder’s registered
address (as reflected in the Note Register) or (b) by wire transfer to an
account located in the United States maintained by the payee.  If a payment date is a date other than a
Business Day at a place of payment, payment may be made at that place on the
next succeeding day that is a Business Day and no interest shall accrue for the
intervening period.

 

3.             Paying Agent and Note Registrar.

 

Initially, The
Bank of New York, a New York banking corporation (the “Trustee”) will act as
Paying Agent and Note Registrar.  The
Company may change any Paying Agent or Note Registrar upon written notice
thereto.  The Company, any Subsidiary or
any Affiliate of any of them may act as Paying Agent, Note Registrar or
co-registrar.

 

4.             Indenture.

 

The Company
issued the Notes under an Indenture dated as of October 4, 2004 (the “Indenture”),
among the Company, the Guarantors and the Trustee.  Capitalized terms herein are used as defined
in the Indenture unless otherwise indicated. 
The terms of the Notes include those stated in the Indenture and those
made part of the Indenture by reference to the Trust Indenture Act.  The Notes are subject to all such terms, and
Holders are referred to the Indenture and the Trust Indenture Act for a
statement of all such terms.  To the
extent permitted by applicable law, in the event of any inconsistency between
the terms of this Note and the terms of the Indenture, the terms of the
Indenture shall control.

 

The Notes are
unsecured senior obligations of the Company. 
The Indenture does not limit the aggregate principal amount of the
Notes.

 

5.             Redemption.

 

Optional
Redemption.  At
any time prior to October 1, 2008, the Company may redeem all or a part of the
Notes, upon not less than 30 nor more than 60 days’ prior notice mailed by
first-class mail to each Holder’s registered address, at a redemption price
equal to 100% of the principal amount of Notes redeemed plus the Applicable
Premium as of, and accrued and unpaid interest and Special Interest, if any, to
the Redemption Date, subject to the rights of Holders of Notes on the relevant
record date to receive interest due on the relevant interest payment date.

 

On and after
October 1, 2008, the Company may redeem the Notes, in whole or in part, upon
not less than 30 nor more than 60 days’ prior notice by first class

 

7

 

mail, postage prepaid, with a
copy to the Trustee, to each Holder of Notes to the address of such Holder
appearing in the Note Register at the Redemption Prices (expressed as
percentages of principal amount) set forth below, plus accrued and unpaid
interest thereon and Special Interest, if any, to the applicable Redemption
Date, subject to the right of Holders of record on the relevant Record Date to
receive interest due on the relevant Interest Payment Date, if redeemed during
the twelve-month period beginning on October 1 of each of the years
indicated below:

 

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2008

  	
   

  	
  103.813

  	
  %

  
	
  2009

  	
   

  	
  101.906

  	
  %

  
	
  2010 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

In addition,
until October 1, 2007, the Company may, at its option, redeem up to 35% of the
aggregate principal amount of Notes issued under the Indenture at a redemption
price equal to 107.625% of the aggregate principal amount thereof, plus accrued
and unpaid interest thereon and Special Interest, if any, to the applicable
Redemption Date, subject to the right of Holders of record on the relevant
record date to receive interest due on the relevant interest payment date, with
the net cash proceeds of one or more Equity Offerings of the Company or any
direct or indirect parent of the Company to the extent such net cash proceeds
are contributed to the Company; provided that
at least 65% of the sum of the aggregate principal amount of Notes originally
issued under the Indenture remains outstanding immediately after the occurrence
of each such redemption; provided further that
each such redemption occurs within 90 days of the date of closing of each
such Equity Offering.

 

6.             Repurchase upon a Change of Control and Asset Sales.

 

Upon the
occurrence of (a) a Change of Control, the Holders of the Notes will have
the right to require that the Company purchase such Holder’s outstanding Notes,
in whole or in part, at a purchase price of 101% of the principal amount
thereof, plus accrued and unpaid interest and Special Interest, if any, to the
date of purchase and (b) Asset Sales, the Company may be obligated to make
offers to purchase Notes and Senior Subordinated Indebtedness of the Company
with a portion of the Net Proceeds of such Asset Sales at a redemption price of
100% of the principal amount thereof plus accrued and unpaid interest, if any,
to the date of purchase.

 

7.             Denominations; Transfer; Exchange.

 

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

 

8

 

(except, in the case of a Note
to be redeemed in part, the portion of the Note not to be redeemed) or any
Notes for a period of 15 days before a selection of Notes to be redeemed or 15
days before an interest payment date.

 

8.             Persons Deemed Owners.

 

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

 

9.             Unclaimed Money.

 

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

 

10.           Discharge and Defeasance Prior to Redemption or
Maturity.

 

If the Company
irrevocably deposits, or causes to be deposited, with the Trustee money or
Government Securities sufficient to pay the then outstanding principal of
(premium, if any) and accrued interest on the Notes (a) to Redemption or
Maturity Date, the Company will be discharged from its obligations under the
Indenture and the Notes, except in certain circumstances for certain covenants
thereof, and (b) to the Stated Maturity, the Company will be discharged
from certain covenants set forth in the Indenture.

 

11.           Amendment; Supplement; Waiver.

 

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

 

12.           Restrictive Covenants.

 

The Indenture
contains certain covenants, including covenants with respect to the following
matters: (i) Restricted Payments; (ii) Incurrence of Indebtedness and
Issuance of Disqualified Stock; (iii) Liens; (iv) transactions with Affiliates;
(v) dividend and other payment restrictions affecting Restricted
Subsidiaries; (vi) guarantees of Indebtedness by Restricted Subsidiaries;
(vii) incurrence of other Senior Subordinated Indebtedness; (viii) merger
and certain transfers of assets; (ix) purchase of Notes upon a Change in
Control; and (x) disposition of proceeds of Asset

 

9

 

Sales.  Within 120 days (or the successor time period
then in effect under the rules and regulations of the Exchange Act) after the
end of each fiscal year, the Company must report to the Trustee on compliance
with such limitations.

 

13.           Successor Persons.

 

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

 

14.           Remedies for Events of Default.

 

If an Event of
Default, as defined in the Indenture, occurs and is continuing, the Trustee or
the Holders of at least 30% in principal amount of the Outstanding Notes may
declare all the Notes to be immediately due and payable; provided, however, that,
so long as any Indebtedness permitted to be incurred under the Indenture as
part of the Senior Credit Facilities shall be outstanding, no such acceleration
shall be effective until the earlier of (1) acceleration of any such
Indebtedness under the Senior Credit Facilities, or (2)           five Business Days after the giving of written notice of
such acceleration to the Company and the administrative agent under the Senior
Credit Facilities.  If a
bankruptcy or insolvency default with respect to the Company or any of its
Significant Subsidiaries occurs and is continuing, the Notes automatically
become immediately due and payable. 
Subject to the provisions of the Indenture relating to the duties of the
Trustee, in case an Event of Default occurs and is continuing, the Trustee
shall be under no obligation to exercise any rights or powers under the
Indenture at the request or direction of any of the Holders of the Notes unless
such Holders have offered to the Trustee reasonable indemnity or security
against any loss, liability or expense. 
Subject to certain restrictions, the Holders of a majority in principal
amount of the outstanding Notes are given the right to direct the time, method
and place of conducting any proceeding for any remedy available to the Trustee
or of exercising any trust or power conferred on the Trustee.  The Trustee, however, may refuse to follow
any direction that conflicts with law or the Indenture or that the Trustee
determines is unduly prejudicial to the rights of any other Holder of a Note or
that would involve the Trustee in personal liability.

 

15.           Guarantees.

 

The Company’s
obligations under the Notes are fully, irrevocably and unconditionally
guaranteed on an unsecured senior subordinated basis, to the extent set forth
in the Indenture, by each of the Guarantors.

 

16.           Trustee Dealings with Company.

 

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

 

10

 

17.           Authentication.

 

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

 

18.           Abbreviations.

 

Customary
abbreviations may be used in the name of a Holder or an assignee, such as:  TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (= Custodian) and U/G/M/A (= Uniform Gifts
to Minors Act).

 

19.           CUSIP Numbers.

 

Pursuant to a
recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused CUSIP numbers to be printed on the Notes and
has directed the Trustee to use CUSIP numbers in notices of redemption as a
convenience to Holders.  No
representation is made as to the accuracy of such numbers either as printed on
the Notes or as contained in any notice of redemption and reliance may be
placed only on the other identification numbers placed thereon.

 

20.           Holders’ Compliance with the Registration Rights
Agreement.

 

Each Holder of
a Note, by acceptance hereof, acknowledges and agrees to the provisions of the
Registration Rights Agreement, including the obligations of the Holders with
respect to a registration and the indemnification of the Company to the extent
provided therein.

 

21.           Governing Law.

 

THIS
SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK.

 

The Company
will furnish to any Holder upon written request and without charge a copy of
the Indenture.  Requests may be made to
Jostens IH Corp., 5501 American Boulevard West, Minneapolis, Minnesota
55437, Attention: General Counsel.

 

Capitalized
terms used herein but not defined herein shall have the meanings given to such
terms in the Indenture.

 

11

 

ASSIGNMENT FORM

 

To assign this
Note, fill in the form below:

 

I or we assign
and transfer this Note to

 

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

 

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

 

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

 

	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  
	
   

  

 

Sign exactly
as your name appears on the other side of this Note.

 

In connection
with any transfer of any of the Notes evidenced by this certificate occurring
prior to the expiration of the period referred to in Rule 144(k) under the
Securities Act after the later of the date of original issuance of such
Notes and the last date, if any, on which such Notes were owned by the Company
or any Affiliate of the Company, the undersigned confirms that such Notes are
being transferred in accordance with its terms:

 

CHECK ONE BOX
BELOW

 

o            to the Company; or

 

(1)                                o            pursuant to an effective
registration statement under the Securities Act of 1933; or

 

(2)                                o            inside the United States to a “qualified
institutional buyer” (as defined in Rule 144A under the Securities Act of
1933) that purchases for its own account or for the account of a qualified
institutional buyer to whom notice is given that such transfer is being made in
reliance on Rule 144A, in each case pursuant to and in compliance with
Rule 144A under the Securities Act of 1933; or

 

(3)                                  o            outside the United States in an offshore
transaction within the meaning of Regulation S under the Securities Act in
compliance with Rule 904 under the Securities Act of 1933; or

 

(4)                                  o            pursuant to the exemption from
registration provided by Rule 144 under the Securities Act of 1933; or

 

12

 

(5)                                  o            to
an institutional “accredited investor” (as defined in Rule 501(a)(1),(2),(3) or
(7) under the Securities Act of 1933) that has furnished to the Trustee a
signed letter containing certain representations and agreements relating to the
transfer of this Note (the form of which can be obtained from the Trustee) and,
if such transfer is in respect of an aggregate principal amount of notes less
than $250,000, an opinion of counsel acceptable to the Company that such
transfer is in compliance with the Securities Act.

 

Unless one of
the boxes is checked, the Trustee will refuse to register any of the Notes
evidenced by this certificate in the name of any person other than the
registered holder thereof; provided, however, that if box (4) is
checked, the Trustee shall be entitled to require, prior to registering any
such transfer of the Notes, such legal opinions, certifications and other
information as the Company has reasonably requested to confirm that such transfer
is being made pursuant to an exemption from, or in a transaction not subject
to, the registration requirements of the Securities Act of 1933, such as the
exemption provided by Rule 144 under such Act.

 

	
   

  	
   

  
	
  Signature

  
	
   

  
	
  Signature Guarantee:

  
	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature must be guaranteed

  	
  Signature

  
					

 

Signatures
must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Notes Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program (“STAMP”) or
such other “signature guarantee program” as may be determined by the Notes
Registrar in addition to, or in substitution for, STAMP, all in accordance with
the Securities Exchange Act of 1934, as amended.

 

13

 

TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS
CHECKED.

 

The
undersigned represents and warrants that it is purchasing this Note for its own
account or an account with respect to which it exercises sole investment
discretion and that it and any such account is a “qualified institutional buyer”
within the meaning of Rule 144A under the Securities Act of 1933, and is
aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the
undersigned has requested pursuant to Rule 144A or has determined not to
request such information and that it is aware that the transferor is relying
upon the undersigned’s foregoing representations in order to claim the
exemption from registration provided by Rule 144A.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Notice:To be executed by

  an executive officer

  

 

14

 

[TO BE ATTACHED TO GLOBAL NOTES]

 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL
NOTE

The following
increases or decreases in this Global Note have been made:

 

 

	
  Date of

  Exchange

  	
   

  	
  Amount of decrease in

  Principal amount of this

  Global Note

  	
   

  	
  Amount of increase in

  Principal amount of this

  Global Note

  	
   

  	
  Principal amount of this

  Global Note following such

  decrease or increase)

  	
   

  	
  Signature of authorized

  officer of Trustee or Notes

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

15

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to
elect to have this Note purchased by the Company pursuant to Section 1017 or  1018 of the
Indenture, check the box:       o

 

o  If you
want to elect to have only part of this Note purchased by the Company pursuant
to Section 1017 or 1018 of
the Indenture, state the amount in principal amount:  $

 

 

	
  Dated:

  	
   

  	
   

  	
  Your Signature:

  	
   

  	
   

  
	
   

  	
   

  	
  (Sign exactly as your name appears on

  the other side of this Note.)

  
	
   

  
	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
	
   

  	
  (Signature must be guaranteed)

  
								

 

Signatures
must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Notes Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program (“STAMP”) or
such other “signature guarantee program” as may be determined by the Notes
Registrar in addition to, or in substitution for, STAMP, all in accordance with
the Securities Exchange Act of 1934, as amended.

 

16

 

EXHIBIT 2

to Rule 144A / Regulation S / IAI Appendix

 

Form of

Transferee Letter of Representation

 

Jostens IH
Corp.

5501 American Boulevard West

Minneapolis, Minnesota 55437

 

In care of

[          ]

[          ]

[          ]

 

Ladies and
Gentlemen:

 

This certificate
is delivered to request a transfer of $                  
principal amount of the 7 5/8% Senior Subordinated Notes Due 2012 (the “Notes”)
of Jostens IH Corp., a Delaware corporation (the “Company”).

 

Upon transfer,
the Notes would be registered in the name of the new beneficial owner as
follows:

 

	
  Name:

  	
   

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  
	
  Taxpayer ID
  Number:

  	
   

  	
   

  
					

 

The
undersigned represents and warrants to you that:

 

1.             We are an
institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) under the Securities Act of 1933, as amended (the “Securities Act”)),
purchasing for our own account or for the account of such an institutional “accredited
investor” at least $250,000 principal amount of the Notes, and we are acquiring
the Notes not with a view to, or for offer or sale in connection with, any
distribution in violation of the Securities Act.  We have such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risks of our investment in the Notes, and we invest in or purchase securities
similar to the Notes in the normal course of our business.  We, and any accounts for which we are acting,
are each able to bear the economic risk of our or its investment.

 

2.             We understand that the Notes have
not been registered under the Securities Act and, unless so registered, may not
be sold except as permitted in the following sentence.  We agree on our own behalf and on behalf of
any investor account for which we are purchasing Notes to offer, sell or otherwise
transfer such Notes prior to the date that is two years after the later of the
date of original issue and the last date on which the Company or any affiliate
of the Company was the owner of such Notes (or any

 

 

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

 

	
   

  	
  TRANSFEREE:                                                       ,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  by:

  	
   

  	
   

  

 

2

 

EXHIBIT A

 

[FORM OF FACE OF EXCHANGE NOTE

OR PRIVATE EXCHANGE NOTE] */**/

 

 

 

*/ [If the Note is to be issued in global form add the Global Notes
Legend from Exhibit 1 to Appendix A and the attachment from such Exhibit 1
captioned “[TO BE ATTACHED TO GLOBAL NOTES] SCHEDULE OF INCREASES OR DECREASES
IN GLOBAL NOTE.”

 

**/ [If the Note is a Private Exchange Note issued in a Private
Exchange to an Initial Purchaser holding an unsold portion of its initial
allotment, add the Restricted Notes Legend from Exhibit 1 to Appendix A and
replace the Assignment Form included in this Exhibit A with the Assignment Form
included in such Exhibit 1.]  

 

 

	
  No.           

  	
  $        

  

 

7 5/8% Senior
Subordinated Notes Due 2012

 

Jostens IH
Corp., a Delaware corporation, promises to pay to                 ,
or registered assigns, the principal sum of                 
Dollars on October 1, 2012.

 

Interest
Payment Dates:  April 1 and October 1.

 

Record
Dates:  March 15 and September 15.

 

Additional
provisions of this Note are set forth on the other side of this Note.

 

Dated:

 

	
  JOSTENS IH CORP.

  
	
  By

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
    Name:

  
	
   

  	
    Title:

  
	
   

  	
   

  
	
  By

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
    Name:

  
	
   

  	
    Title:

  

 

 

	
  TRUSTEE’S CERTIFICATE OF

  AUTHENTICATION

  	
   

  
	
   

  	
   

  
	
  THE BANK OF NEW YORK

  	
   

  
	
  as Trustee, certifies

  that this is one of

  the Notes referred

  to in the Indenture.

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
    Authorized Signatory

  	
   

  
				

 

2

 

[FORM OF REVERSE SIDE OF EXCHANGE NOTE

OR PRIVATE EXCHANGE NOTE]

 

7 5/8% Senior
Subordinated Note Due 2012

 

1.             Principal and Interest; Subordination.

 

The Company
will pay the principal of this Note on October 1, 2012.

 

The Company
promises to pay interest and Special Interest, if any, on the principal amount
of this Note on each Interest Payment Date, as set forth below, at the rate of
7 5/8% per annum (subject to adjustment as provided below) except that interest
accrued on this Note pursuant to the fourth paragraph of this Section 1 for
periods prior to the applicable dates on which the Exchange Offer Registration
Statement or Shelf Registration Statement (as such terms are defined in the
Registration Rights Agreement referred to below) will accrue at the rate or
rates borne by the Notes from time to time during such periods.

 

Interest, and
Special Interest, if any, will be payable semi-annually (to the Holders of
record of the Notes (or any Predecessor Notes) at the close of business on
March 15 or September 15 immediately preceding the Interest Payment Date) on
each Interest Payment Date, commencing April 1, 2005.

 

The Holder of
this Note is entitled to the benefits of the Exchange and Registration Rights
Agreement, dated October 4, 2004, among the Company, the Guarantors and
the Initial Purchasers named therein (the “Registration Rights Agreement”).

 

Interest on
this Note will accrue from the most recent date to which interest has been paid
on this Note or the Note surrendered in exchange herefor or, if no interest has
been paid, from October 4, 2004; provided
that, if there is no existing default in the payment of interest and
if this Note is authenticated between a Regular Record Date referred to on the
face hereof and the next succeeding Interest Payment Date, interest shall
accrue from such Interest Payment Date. 
Interest will be computed on the basis of a 360-day year of twelve 30-day
months.

 

The Company
shall pay interest and Special Interest if any, on overdue principal and
premium, if any, and interest on overdue installments of interest, to the
extent lawful, at a rate per annum equal to the rate of interest applicable to
the Notes.

 

The
indebtedness evidenced by the Notes is, to the extent and in the manner
provided in the Indenture, subordinate and subject in right of payment to the
prior payment in full of all Senior Indebtedness, and this Note is issued
subject to such provisions.  Each Holder
of this Note, by accepting the same, (a) agrees to and shall be bound by
such provisions, (b) authorizes and directs the Trustee on its behalf to
take such action as may be necessary or appropriate to effectuate the
subordination as provided in the Indenture and (c) appoints the Trustee its
attorney in-fact for such purpose

 

3

 

2.             Method of Payment.

 

The Company
will pay interest (except defaulted interest) on the principal amount of the
Notes on each April 1 and October 1 to the Persons who are Holders (as
reflected in the Note Register at the close of business on March 15 and
September 15 immediately preceding the Interest Payment Date), in each case,
even if the Note is cancelled on registration of transfer or registration of
exchange after such Regular Record Date; provided
that, with respect to the payment of principal, the Company will make payment
to the Holder that surrenders this Note to any Paying Agent on or after October
1, 2012.

 

The Company
will pay principal (premium, if any) and interest in money of the United States
that at the time of payment is legal tender for payment of public and private
debts.  However, the Company may pay
principal (premium, if any) and interest by its check payable in such
money.  The Company may pay interest on
the Notes either (a) by mailing a check for such interest to a Holder’s
registered address (as reflected in the Note Register) or (b) by wire transfer
to an account located in the United States maintained by the payee.  If a payment date is a date other than a
Business Day at a place of payment, payment may be made at that place on the
next succeeding day that is a Business Day and no interest shall accrue for the
intervening period.

 

3.             Paying Agent and Note Registrar.

 

Initially, The
Bank of New York, a New York banking corporation (the “Trustee”) will act as
Paying Agent and Note Registrar.  The
Company may change any Paying Agent or Note Registrar upon written notice
thereto.  The Company, any Subsidiary or
any Affiliate of any of them may act as Paying Agent, Note Registrar or
co-registrar.

 

4.             Indenture.

 

The Company
issued the Notes under an Indenture dated as of October 4, 2004 (the “Indenture”),
among the Company, the Guarantors and the Trustee.  Capitalized terms herein are used as defined
in the Indenture unless otherwise indicated. 
The terms of the Notes include those stated in the Indenture and those
made part of the Indenture by reference to the Trust Indenture Act.  The Notes are subject to all such terms, and
Holders are referred to the Indenture and the Trust Indenture Act for a
statement of all such terms.  To the
extent permitted by applicable law, in the event of any inconsistency between
the terms of this Note and the terms of the Indenture, the terms of the
Indenture shall control.

 

The Notes are
unsecured senior obligations of the Company. 
The Indenture does not limit the aggregate principal amount of the
Notes.

 

5.             Redemption.

 

Optional
Redemption.  At
any time prior to October 1, 2008, the Company may redeem all or a part of the
Notes, upon not less than 30 nor more than 60 days’ prior

 

4

 

notice mailed by first-class
mail to each Holder’s registered address, at a redemption price equal to 100%
of the principal amount of Notes redeemed plus the Applicable Premium as of,
and accrued and unpaid interest and Special Interest, if any, to the Redemption
Date, subject to the rights of Holders of Notes on the relevant record date to
receive interest due on the relevant interest payment date.

 

On and after
October 1, 2008, the Company may redeem the Notes, in whole or in part, upon
not less than 30 nor more than 60 days’ prior notice by first class mail,
postage prepaid, with a copy to the Trustee, to each Holder of Notes to the
address of such Holder appearing in the Note Register at the Redemption Prices
(expressed as percentages of principal amount) set forth below, plus accrued
and unpaid interest thereon and Special Interest, if any, to the applicable
Redemption Date, subject to the right of Holders of record on the relevant
Record Date to receive interest due on the relevant Interest Payment Date, if
redeemed during the twelve-month period beginning on October 1 of each of
the years indicated below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2008

  	
   

  	
  103.813

  	
  %

  
	
  2009

  	
   

  	
  101.906

  	
  %

  
	
  2010 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

 

In addition,
until October 1, 2007, the Company may, at its option, redeem up to 35% of the
aggregate principal amount of Notes issued under the Indenture at a redemption
price equal to 107.625% of the aggregate principal amount thereof, plus accrued
and unpaid interest thereon and Special Interest, if any, to the applicable
Redemption Date, subject to the right of Holders of record on the relevant
record date to receive interest due on the relevant interest payment date, with
the net cash proceeds of one or more Equity Offerings of the Company or any
direct or indirect parent of the Company to the extent such net cash proceeds
are contributed to the Company; provided that
at least 65% of the sum of the aggregate principal amount of Notes originally
issued under the Indenture remains outstanding immediately after the occurrence
of each such redemption; provided further that
each such redemption occurs within 90 days of the date of closing of each
such Equity Offering.

 

6.             Repurchase upon a Change of Control and Asset Sales.

 

Upon the
occurrence of (a) a Change of Control, the Holders of the Notes will have the
right to require that the Company purchase such Holder’s outstanding Notes, in
whole or in part, at a purchase price of 101% of the principal amount thereof,
plus accrued and unpaid interest and Special Interest, if any, to the date of
purchase and (b) Asset Sales, the Company may be obligated to make offers to
purchase Notes and Senior Subordinated Indebtedness of the Company with a
portion of the Net Proceeds of such Asset Sales at a redemption price of 100%
of the principal amount thereof plus accrued and unpaid interest, if any, to
the date of purchase.

 

5

 

7.             Denominations; Transfer; Exchange.

 

The Notes are
in registered form without coupons in denominations of $1,000 principal amount
and whole multiples of $1,000.  A Holder
may transfer or exchange Notes in accordance with the Indenture.  The Note Registrar may require a Holder,
among other things, to furnish appropriate endorsements and transfer documents
and to pay any taxes and fees required by law or permitted by the
Indenture.  The Note Registrar need not
register the transfer or exchange of any Notes selected for redemption (except,
in the case of a Note to be redeemed in part, the portion of the Note not to be
redeemed) or any Notes for a period of 15 days before a selection of Notes to
be redeemed or 15 days before an interest payment date.

 

8.             Persons Deemed Owners.

 

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

 

9.             Unclaimed Money.

 

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

 

10.           Discharge and Defeasance Prior to Redemption or
Maturity.

 

If the Company
irrevocably deposits, or causes to be deposited, with the Trustee money or
Government Securities sufficient to pay the then outstanding principal of
(premium, if any) and accrued interest on the Notes (a) to Redemption or
Maturity Date, the Company will be discharged from its obligations under the
Indenture and the Notes, except in certain circumstances for certain covenants
thereof, and (b) to the Stated Maturity, the Company will be discharged from
certain covenants set forth in the Indenture.

 

11.           Amendment; Supplement; Waiver.

 

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

 

6

 

12.           Restrictive Covenants.

 

The Indenture
contains certain covenants, including covenants with respect to the following
matters: (i) Restricted Payments; (ii) Incurrence of Indebtedness and Issuance
of Disqualified Stock; (iii) Liens; (iv) transactions with Affiliates;
(v) dividend and other payment restrictions affecting Restricted
Subsidiaries; (vi) guarantees of Indebtedness by Restricted Subsidiaries;
(vii) incurrence of other Senior Subordinated Indebtedness; (viii) merger and
certain transfers of assets; (ix) purchase of Notes upon a Change in
Control; and (x) disposition of proceeds of Asset Sales.  Within 120 days (or the successor time period
then in effect under the rules and regulations of the Exchange Act) after the
end of each fiscal year, the Company must report to the Trustee on compliance
with such limitations.

 

13.           Successor Persons.

 

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

 

14.           Remedies for Events of Default.

 

If an Event of
Default, as defined in the Indenture, occurs and is continuing, the Trustee or
the Holders of at least 30% in principal amount of the Outstanding Notes may
declare all the Notes to be immediately due and payable; provided, however, that,
so long as any Indebtedness permitted to be incurred under the Indenture as
part of the Senior Credit Facilities shall be outstanding, no such acceleration
shall be effective until the earlier of (1) acceleration of any such
Indebtedness under the Senior Credit Facilities, or (2) five Business Days
after the giving of written notice of such acceleration to the Company and the
administrative agent under the Senior Credit Facilities.  If a bankruptcy or insolvency default with
respect to the Company or any of its Significant Subsidiaries occurs and is
continuing, the Notes automatically become immediately due and payable.  Subject to the provisions of the Indenture
relating to the duties of the Trustee, in case an Event of Default occurs and
is continuing, the Trustee shall be under no obligation to exercise any rights
or powers under the Indenture at the request or direction of any of the Holders
of the Notes unless such Holders have offered to the Trustee reasonable
indemnity or security against any loss, liability or expense.  Subject to certain restrictions, the Holders
of a majority in principal amount of the outstanding Notes are given the right
to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee or of exercising any trust or power conferred
on the Trustee.  The Trustee, however,
may refuse to follow any direction that conflicts with law or the Indenture or
that the Trustee determines is unduly prejudicial to the rights of any other
Holder of a Note or that would involve the Trustee in personal liability.

 

7

 

15.           Guarantees.

 

The Company’s
obligations under the Notes are fully, irrevocably and unconditionally
guaranteed on an unsecured senior subordinated basis, to the extent set forth
in the Indenture, by each of the Guarantors.

 

16.           Trustee Dealings with Company.

 

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

 

17.           Authentication.

 

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

 

18.           Abbreviations.

 

Customary
abbreviations may be used in the name of a Holder or an assignee, such as:  TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (= Custodian) and U/G/M/A (= Uniform Gifts
to Minors Act).

 

19.           CUSIP Numbers.

 

Pursuant to a
recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused CUSIP numbers to be printed on the Notes and
has directed the Trustee to use CUSIP numbers in notices of redemption as a
convenience to Holders.  No
representation is made as to the accuracy of such numbers either as printed on
the Notes or as contained in any notice of redemption and reliance may be placed
only on the other identification numbers placed thereon.

 

20.           Holders’ Compliance with the Registration Rights
Agreement.

 

Each Holder of
a Note, by acceptance hereof, acknowledges and agrees to the provisions of the
Registration Rights Agreement, including the obligations of the Holders with
respect to a registration and the indemnification of the Company to the extent
provided therein.

 

21.           Governing Law.

 

THIS SECURITY SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

8

 

The Company
will furnish to any Holder upon written request and without charge a copy of
the Indenture.  Requests may be made to
Jostens IH Corp., 5501 American Boulevard West, Minneapolis, Minnesota 55437,
Attention: General Counsel.

 

Capitalized
terms used herein but not defined herein shall have the meanings given to such
terms in the Indenture.

 

9

 

ASSIGNMENT FORM

 

To assign this
Note, fill in the form below:

 

I or we assign
and transfer this Note to

 

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

 

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

 

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

 

	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  
	
   

  

 

Sign exactly as your name appears on the other side of this Note.

 

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to
elect to have this Note purchased by the Company pursuant to Section 1017 or  1018 of the
Indenture, check the box:  o

 

o  If you
want to elect to have only part of this Note purchased by the Company pursuant
to Section 1017 or 1018 of
the Indenture, state the amount in principal amount:  $

 

	
  Dated:

  	
   

  	
   

  	
  Your Signature:

  	
   

  	
   

  
	
   

  	
   

  	
  (Sign
  exactly as your name appears

  on the other side of this Note.)

  
	
   

  
	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
	
   

  	
  (Signature must be guaranteed)

  
								

 

Signatures must be guaranteed by an “eligible guarantor institution”
meeting the requirements of the Notes Registrar, which requirements include
membership or participation in the Security Transfer Agent Medallion Program (“STAMP”)
or such other “signature guarantee program” as may be determined by the Notes
Registrar in addition to, or in substitution for, STAMP, all in accordance with
the Securities Exchange Act of 1934, as amended.

 

 

EXHIBIT B

 

[FORM OF NOTATION OF GUARANTEE]

 

For value
received, each Guarantor (which term includes any successor Person under the
Indenture) has, jointly and severally, unconditionally guaranteed, to the
extent set forth in the Indenture and subject to the provisions in the
Indenture dated as of October 4, 2004 (the “Indenture”) among Jostens IH
Corp. (the “Company”), the Guarantors party thereto and The Bank of New York,
as trustee (the “Trustee”), (a) the due and punctual payment of the principal
of, premium and Special Interest, if any, and interest on, the Notes, whether
at maturity, by acceleration, redemption or otherwise, the due and punctual
payment of interest on overdue principal of and interest on the Notes, if any,
if lawful, and the due and punctual performance of all other obligations of the
Company to the Holders or the Trustee all in accordance with the terms of the
Indenture and (b) in case of any extension of time of payment or renewal of any
Notes or any of such other obligations, that the same will be promptly paid in
full when due or performed in accordance with the terms of the extension or
renewal, whether at stated maturity, by acceleration or otherwise.  The obligations of the Guarantors to the
Holders of Notes and to the Trustee pursuant to the Guarantee and the Indenture
are expressly set forth in Article 12 of the Indenture and reference is hereby
made to the Indenture for the precise terms of the Note Guarantee.  Each Holder of a Note, by accepting the same,
agrees to and shall be bound by such provisions.

 

Capitalized
terms used but not defined herein have the meanings given to them in the
Indenture.

 

	
   

  	
  [NAME OF GUARANTOR(S)]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

EXHIBIT C

 

FORM OF SUPPLEMENTAL INDENTURE

TO BE DELIVERED BY SUBSEQUENT GUARANTORS

 

SUPPLEMENTAL
INDENTURE (this “Supplemental Indenture”), dated as of
                               ,
200   , among                                 
(the “Guaranteeing Subsidiary”), a subsidiary of Jostens IH Corp. (or its
permitted successor), a Delaware corporation (the “Company”), the Company, the
other Guarantors (as defined in the Indenture referred to herein) and The Bank
of New York, as trustee under the Indenture referred to below (the “Trustee”).

 

W I T N E S S E T H

 

WHEREAS, the
Company has heretofore executed and delivered to the Trustee an indenture (the “Indenture”),
dated as of October 4, 2004 providing for the issuance of 7 5/8% Senior
Subordinated Notes Due 2012 (the “Notes”);

 

WHEREAS, the
Indenture provides that under certain circumstances the Guaranteeing Subsidiary
shall execute and deliver to the Trustee a supplemental indenture pursuant to
which the Guaranteeing Subsidiary shall unconditionally guarantee all of the
Company’s Obligations under the Notes and the Indenture on the terms and
conditions set forth herein (the “Guarantee”); and

 

WHEREAS,
pursuant to Section 901 of the Indenture, the Trustee is authorized to execute
and deliver this Supplemental Indenture.

 

NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guaranteeing
Subsidiary and the Trustee mutually covenant and agree for the equal and
ratable benefit of the Holders of the Notes as follows:

 

1.             CAPITALIZED TERMS.  Capitalized terms used herein without
definition shall have the meanings assigned to them in the Indenture.

 

2.             AGREEMENT TO GUARANTEE.  The Guaranteeing Subsidiary hereby agrees to
provide an unconditional Guarantee on the terms and subject to the conditions
set forth in the Note Guarantee and in the Indenture including but not limited
to Article 12 thereof.

 

3.             NO RECOURSE AGAINST OTHERS.  No past, present or future director, officer,
employee, incorporator, stockholder or agent of the Guaranteeing Subsidiary, as
such, shall have any liability for any obligations of the Company or any
Guaranteeing Subsidiary under the Notes, any Note Guarantees, the Indenture or
this Supplemental Indenture or for any claim based on, in respect of, or by
reason of, such obligations or their creation. 
Each Holder of the Notes by accepting a Note waives and releases all
such liability.  The waiver and release
are part of the consideration for issuance of the Notes.  Such waiver may not be effective to waive
liabilities under the federal securities laws and it is the view of the SEC
that such a waiver is against public policy.

 

 

4.             GOVERNING LAW.  THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

5.             COUNTERPARTS.  The parties may sign any number of copies of
this Supplemental Indenture.  Each signed
copy shall be an original, but all of them together represent the same
agreement.

 

6.             EFFECT OF HEADINGS.  The Section headings herein are for
convenience only and shall not affect the construction hereof.

 

7.             THE TRUSTEE.  The Trustee shall not be responsible in any
manner whatsoever for or in respect of the validity or sufficiency of this
Supplemental Indenture or for or in respect of the recitals contained herein,
all of which recitals are made solely by the Guaranteeing Subsidiary and the
Company.

 

2

 

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

 

	
  Dated: , 20

  	
   

  
	
   

  	
   

  
	
   

  	
  [GUARANTEEING SUBSIDIARY]

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JOSTENS IH CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Existing Guarantors]

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Bank of New York, as
  Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

3

 

EXHIBIT D

 

INCUMBENCY CERTIFICATE

 

The
undersigned,                         ,
being the                         
of                         
(the “Company”) does hereby certify that the individuals listed below are
qualified and acting officers of the Company as set forth in the right column
opposite their respective names and the signatures appearing in the extreme right
column opposite the name of each such officer is a true specimen of the genuine
signature of such officer and such individuals have the authority to execute
documents to be delivered to, or upon the request of, The Bank of New York, as
Trustee under the Indenture dated as of October 4, 2004, by and between
the Company and The Bank of New York.

 

 

	
  Name

  	
   

  	
  Title

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

IN WITNESS
WHEREOF, the undersigned has duly executed and delivered this Certificate as of
the          day of                 ,
20    .

 

	
   

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

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