Document:

ex10.htm

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      OPERATING
        AGREEMENT

       

      OF

       

      TRANSWORLD
        ASSETS, LLC

       

      A
        LIMITED
        LIABILITY COMPANY

       

      ORGANIZED
        UNDER THE LAWS OF

       

      THE
        STATE
        OF DELAWARE

       

      

       

      

       

      

       

      Effective
        as of July 15, 2007

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      TABLE
        OF CONTENTS

       

      ARTICLE
        1. [INSERT PAGE NUMBER]

      1.1.          Name [INSERT
        PAGE NUMBER]

      1.2.          Principal
        Office of the Company [INSERT PAGE
        NUMBER]

      1.3.          Purpose [INSERT
        PAGE NUMBER]

      1.4.          Term [INSERT
        PAGE NUMBER]

      1.5.          Other
        Activities of Members [INSERT PAGE
        NUMBER]

      1.6.          Defined
        Terms [INSERT PAGE NUMBER]

      ARTICLE
        2. [INSERT PAGE NUMBER]

      2.1.          Capital
        Contributions [INSERT PAGE
        NUMBER]

      2.2.          Maintenance
        of Capital Accounts [INSERT PAGE
        NUMBER]

      2.3.          Withdrawal
        of Capital [INSERT PAGE
        NUMBER]

      2.4.          Additional
        Capital Contributions [INSERT PAGE
        NUMBER]

      2.5.          Interest
        on Capital Contributions [INSERT PAGE
        NUMBER]

      2.6.          Priority
        and Return of Capital [INSERT PAGE
        NUMBER]

      2.7.          Limitation
        on Liability of Member [INSERT PAGE
        NUMBER]

      2.8.          Loans [INSERT
        PAGE NUMBER]

      2.9.          Sale
        of Additional Securities [INSERT PAGE
        NUMBER]

      ARTICLE
        3. [INSERT PAGE NUMBER]

      3.1.          Allocation
        and Distribution of Cash Flow [INSERT PAGE
        NUMBER]

      3.2.          Allocation
        of Profits and Losses. [INSERT PAGE
        NUMBER]

      3.3.          Minimum
        Gain Chargeback [INSERT PAGE
        NUMBER]

      3.4.          Chargeback
        Attributable to Member Non-recourse Debt [INSERT PAGE NUMBER]

      3.5.          Qualified
        Income Offset [INSERT PAGE
        NUMBER]

      3.6.          Limitations
        on Loss Allocations [INSERT PAGE
        NUMBER]

      3.7.          Member
        Non-recourse Deductions [INSERT PAGE
        NUMBER]

      3.8.          Amendments
        to Allocations [INSERT PAGE
        NUMBER]

      ARTICLE
        4. [INSERT PAGE NUMBER]

      4.1.          Management [INSERT
        PAGE NUMBER]

      4.2.          Voting
        Powers of Other Members, General Rules [INSERT
        PAGE NUMBER]

      4.3.          Certain
        Matters [INSERT PAGE NUMBER]

      4.4.          Meetings [INSERT
        PAGE NUMBER]

      4.5.          Written
        Consent. [INSERT PAGE NUMBER]

      4.6.          Vote
        by Proxy. [INSERT PAGE
        NUMBER]

      4.7.          Records. [INSERT
        PAGE NUMBER]

      4.8.          Tenure
        and Qualifications [INSERT PAGE
        NUMBER]

      4.9.          Certain
        Powers of the Manager [INSERT PAGE
        NUMBER]

      4.10.                                                                                                                                       Company
        Basis Elections[INSERT
        PAGE NUMBER]

      4.11.                                                                                                                                       Liability
        for Certain Acts[INSERT
        PAGE NUMBER]

      4.12.                                                                                                                                       The
        Manager has no Exclusive Duty to the Company[INSERT
        PAGE
        NUMBER]

      4.13.                                                                                                                                       Indemnification[INSERT
        PAGE
        NUMBER]

      4.14.                                                                                                                                       Withdrawal[INSERT
        PAGE
        NUMBER]

      4.15.                                                                                                                                       Effect
        of Certain Events[INSERT
        PAGE NUMBER]

      4.16.                                                                                                                                       Vacancies[INSERT
        PAGE
        NUMBER]

      4.17.                                                                                                                                       Officers[INSERT
        PAGE
        NUMBER]

      4.18.                                                                                                                                       Resignation
        of Officer[INSERT
        PAGE NUMBER]

      ARTICLE
        5. [INSERT PAGE NUMBER]

      5.1.          General
        Restriction [INSERT PAGE
        NUMBER]

      5.2.          Assignment
        of Units [INSERT PAGE NUMBER]

      5.3.          Admission
        of Additional Members [INSERT PAGE
        NUMBER]

      5.4.          Conditions
        of Transfers of Units [INSERT PAGE
        NUMBER]

      5.5.          Withdrawal
        of Member [INSERT PAGE
        NUMBER]

      5.6.          Recognition
        of Assignees and Substituted Members [INSERT
        PAGE NUMBER]

      5.7.          Obligations
        of Transferring Member [INSERT PAGE
        NUMBER]

      5.8.          Allocations
        Upon Transfer of Units. [INSERT PAGE
        NUMBER]

      ARTICLE
        6. [INSERT PAGE NUMBER]

      6.1.          Events
        Triggering Dissolution [INSERT PAGE
        NUMBER]

      6.2.          Effect
        of Dissolution [INSERT PAGE
        NUMBER]

      6.3.          Liquidation [INSERT
        PAGE NUMBER]

      6.4.          Revaluation [INSERT
        PAGE NUMBER]

      6.5.          Distributions
        in Kind [INSERT PAGE NUMBER]

      6.6.          Timing
        of Liquidation [INSERT PAGE
        NUMBER]

      6.7.          Certificate
        of Cancellation [INSERT PAGE
        NUMBER]

      ARTICLE
        7. [INSERT PAGE NUMBER]

      7.1.          Fiscal
        Year [INSERT PAGE NUMBER]

      7.2.          Method
        of Accounting [INSERT PAGE
        NUMBER]

      7.3.          Books
        and Records [INSERT PAGE
        NUMBER]

      7.4.          Federal
        Income Tax Returns [INSERT PAGE
        NUMBER]

      7.5.          Reports
        and Statements [INSERT PAGE
        NUMBER]

      7.6.          Bank
        Accounts [INSERT PAGE NUMBER]

      7.7.          Tax
        Matters Partner [INSERT PAGE
        NUMBER]

      ARTICLE
        8. [INSERT PAGE NUMBER]

      8.1.          Amendment [INSERT
        PAGE NUMBER]

      8.2.          Amendments
        Without Consent of Members [INSERT PAGE
        NUMBER]

      8.3.          Amendments
        Requiring Consent of Affected Members [INSERT
        PAGE NUMBER]

      8.4.          Glossary [INSERT
        PAGE NUMBER]

      8.5.          Notices [INSERT
        PAGE NUMBER]

      8.6.          Binding
        Effect [INSERT PAGE NUMBER]

      8.7.          Counterparts [INSERT
        PAGE NUMBER]

      8.8.          Governing
        Law [INSERT PAGE NUMBER]

      8.9.          Severability [INSERT
        PAGE NUMBER]

      8.10.                                                                                                                                       Gender[INSERT
        PAGE
        NUMBER]

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      OPERATING
        AGREEMENT

       

      OF

       

      TRANSWORLD
        ASSETS, LLC

       

      A
        DELAWARE LIMITED LIABILITY COMPANY

       

      This
        OPERATING AGREEMENT of Transworld Assets, LLC (this “Agreement”), is entered
        into and shall be effective as of July 15, 2007 by and among Stratus Sevices
        Group, Inc., a Delaware corporation with offices located at 149 Avenue at
        the
        Commons, Suite 4, Shrewsbury, New Jersey 07702 (“Stratus”), and the parties
        identified on Schedule A hereto (Stratus and such-parties to be collectively
        hereinafter be referred to as the “Members” and each individually as a
“Member”).

       

      RECITAL

       

      WHEREAS,
        Transworld Assets, LLC (the “Company”) has been validly formed by the filing of
        a Certificate of Formation with the Office of the Secretary of State, State
        of
        Delaware on June 26, 2007 under the Delaware Limited Liability Company Act
        (the
“Act”);

       

      WHEREAS,
        the Members desire to enter into this Agreement to set forth the terms of
        their
        understanding and agreement with respect to matters relating to the
        Company;

       

      In
        consideration of the mutual promises in this Agreement, the parties, intending
        to be legally bound, agree as follows:

       

      ARTICLE
        1.                                

      FORMATION,
        PURPOSE AND DEFINITIONS

       

      1.1.  Name

       

      .  Pursuant
        to the terms of this Agreement, the Members intend to carry on a business
        for
        profit as co-owners under the name “TRANSWORLD ASSETS, LLC.”  The
        Company may conduct its activities under any other permissible name designated
        by the Manager.  The Manager shall be responsible for complying with
        any registration requirements in the event an alternate name is used for
        the
        Company.

       

      1.2.  Principal
        Office of the
        Company

       

      .  The
        principal office of the Company shall be located at 149 Avenue at the Commons,
        Suite 4, Shrewsbury, New Jersey 07702, or at such other location as the Manager,
        at its sole discretion, may determine.  The registered agent for the
        service of process and registered office of the Company shall be the person
        and
        location set forth in the Certificate of Formation filed with the Office
        of the
        Secretary of State, State of Delaware, and the Manager may, from time to
        time,
        change such agent and office by appropriate filings as required by
        law.

       

      1.3.  Purpose

       

      .  The
        Company may engage in any lawful business permitted under the laws of the
        State
        of Delaware, including, but not limited to, the acquisition of the business
        and
        assets of Green-Tech Assets, Inc. and CC Laurel, Inc. and the operation of
        such
        businesses following their acquisition.

       

      1.4.  Term

       

      .  The
        term of this Company shall be perpetual, unless the Company is earlier dissolved
        in accordance with the provisions of Article 6 of this Agreement or the
        Act.

       

      1.5.  Other
        Activities of
        Members

       

      .  The
        Members may engage in or possess an interest in other business ventures of
        any
        nature, provided that they are not similar to or competitive with the activities
        of the Company.

       

      1.6.  Defined
        Terms

       

      .  Unless
        defined elsewhere in this Agreement, capitalized words and phrases used in
        this
        Agreement shall have the meanings ascribed to such terms in the Glossary
        contained in Section 8.4 of this Agreement.

       

      ARTICLE
        2.                                

      CONTRIBUTIONS
        AND CAPITAL ACCOUNTS

       

      2.1.  Capital
        Contributions

       

      .  The
        Members have made the Capital Contributions set forth on Schedule A, as the
        same
        may be amended from time to time.  In consideration of the Capital
        Contributions made by the Members, the Members have been credited with the
        Units
        set forth next to their name on Schedule A hereto.

       

      2.2.  Maintenance
        of Capital
        Accounts

       

      .  The
        Company shall establish and maintain a Capital Account for each
        Member.

       

      2.3.  Withdrawal
        of
        Capital

       

      .  A
        Member shall not be entitled to withdraw any part of such Member’s Capital
        Account or to receive any distribution from the Company, except as provided
        in
        this Agreement.  The Manager shall, however, have the authority, in
        the Manager’s sole discretion, to return to the Members all or part of the
        Capital Contributions of the Members, provided that such payments are made
        to
        the Members in proportions permitted under Article 3 below.

       

      2.4.  Additional
        Capital
        Contributions

       

      .  No
        Member shall be required to make any additional capital contribution to the
        Company or to restore any deficit in such Member’s Capital Account, except as
        provided in this Agreement, and such deficit, if any, shall not be considered
        a
        debt owed to the Company or to any other person for any purpose.

       

      2.5.  Interest
        on Capital
        Contributions

       

      .  No
        interest shall be due from the Company on any Capital Contribution of any
        Member.

       

      2.6.  Priority
        and Return of
        Capital

       

      .  Except
        as may be expressly provided in this Agreement, no Member shall have priority
        over any other Member, either for the return of Capital Contributions or
        for
        cash generated from operations, provided that this section shall not apply
        to
        loans (as distinguished from Capital Contributions) which a Member has made
        to
        the Company.

       

      2.7.  Limitation
        on Liability of
        Member

       

      .  The
        Members shall have no liability or obligation for any debts, liabilities
        or
        obligations of the Company beyond each Member’s respective Capital Contribution
        or obligation to make a Capital Contribution, except as expressly required
        by
        this Agreement or applicable law.

       

      2.8.  Loans

       

      .  If
        any Member makes any loan or loans to the Company, or advances money on its
        behalf, the amount of any such loan or advance shall not be deemed an increase
        in, or contribution to, the Capital Account of the lending Member or entitle
        the
        lending Member to any increase in his, her or its share of the distributions
        of
        the Company.  Interest shall accrue on any such loan at an annual rate
        agreed to by the Company and the lending Member (but not in excess of the
        maximum rate allowable under applicable usury laws).

       

      2.9.  Sale
        of Additional
        Securities

       

      .  In
        order to raise additional capital or for any other proper Company purpose,
        the
        Manager is authorized to cause additional interests in the Company, Units
        and
        other securities to be issued, from time to time, to the Manager, Members,
        Unitholders or to other Persons.  In addition, the Manager is
        authorized to cause to be issued, purchased, redeemed, exchanged, traded
        or
        granted by the Company, calls, options, appreciation rights, bonds, debentures
        and other securities from time to time.  Any Company interests, Units,
        calls, options, bonds, debentures and other securities so issued may be issued
        with such designations, preferences and relative participating, operational
        or
        other special rights, powers and duties, including rights, powers and duties
        senior to existing classes and series of Company interests and Units, as
        shall
        be fixed by the Manager in the exercise of its sole and complete discretion,
        including without limitation, (i) the allocation of items of Company income,
        gain, loss, deduction and credit to such securities; (ii) the right of such
        securities to share in Company distributions, (iii) the rights of such
        securities upon dissolution and liquidation of the Company; (iv) the price
        at
        which and the terms and conditions, if any, upon which such securities may
        be
        converted into another class or series of securities of the Company, if such
        securities are convertible into other securities of the Company; (v) the
        terms
        and conditions upon which such securities will be issued, assigned and
        transferred; and (vi) the right of such securities to vote on Company matters,
        including matters relating to the relative rights, preferences and privileges
        of
        such securities.  Upon or prior to the issuance of any additional
        Company securities, the Manager, without the approval at the time of any
        Member
        or Unitholder, each Member or Unitholder hereby approving of any and each
        such
        amendment, may amend any provision of this Agreement and, may execute, swear
        to,
        acknowledge, deliver, file and record such documents as to the Manager may,
        in
        its sole discretion, determine to be necessary or appropriate in connection
        therewith in order to reflect the authorization and issuance of such securities
        and the relative rights and preferences as to matters set forth in the preceding
        sentence.  Any such issuance of Company securities may be made without
        the approval at the time of any Person or Unitholder, each Person and Unitholder
        hereby approving of any and each such issuance.  The Manager will have
        sole and complete discretion in determining the consideration and terms and
        conditions with respect thereto and without the need for any vote or approval
        of
        Members or Unitholders.  The Manager may do all things necessary to
        comply with the Act or other applicable law and is authorized and directed
        to do
        all things it deems necessary or advisable in connection with any such future
        issuance.

       

      ARTICLE
        3.                                

      ALLOCATIONS
        AND DISTRIBUTION

       

      3.1.  Allocation
        and Distribution of Cash
        Flow

       

      .  As
        soon as reasonably practical after the end of each month, the Manager shall
        make
        a determination of Cash Flow From Operations with respect to such
        month.  Cash Flow From Operations shall be made at such times and in
        such amounts as the Manager may, in his discretion, determine; provided,
        however
        that if a distribution of Cash Flow from Operations is made with respect
        to any
        month in a Calendar Quarter, then within sixty (60) days after the
        end  such Calendar Quarter, the Manager shall make a distribution of
        Cash Flow from Operations such that after taking into account all of the
        distributions of Cash Flow from Operations with respect to such Calendar
        Quarter:

       

      (a)
        24.5%
        of the Cash Flow From Operations attributable to such Calendar Quarter shall
        be
        retained by the Company;

       

      (b)
        20%
        of the . Cash Flow From Operations attributable to such Calendar Quarter
        shall
        be distributed to the Class A Unitholders (pro rata based upon the number
        of
        Class A Units held;)

       

      (c)
        51%
        of the Cash Flow From Operations attributable to such Calendar Quarter shall
        be
        distributed to the Class B Unitholder;

       

      (d)
        4.5%
        of the Cash Flow From Operations attributable to such Calendar Quarter shall
        be
        distributed to the holder of the Class A Units

       

      ;provided,
        however, that the Manager may make additional distributions of Cash Flow
        From
        Operations to the Class A Unit Holders and Class C  Unit Holder until
        such time as the total cash distributions made to the Class A Unit Holders
        equal
        40% of the Cash Flow From Operations distributed by the Company and the total
        cash distributions made to the Class C Unit Holder equals 9% of the Cash
        Flow
        From Operations distributed by the Company.  To
        the extent that the Company is required by law to withhold or to make tax
        or
        other payments on behalf of or with respect to any Member, the Company may
        withhold such amounts from any distribution and make such payments as
        required.  For purposes of this Agreement, any such payment or
        withholdings shall be treated as a distribution to the Member on behalf of
        whom
        the withholding or payment was made.

       

      3.2.  Allocation
        and Distribution of Cash
        From Sale.  In the event of a sale of all or substantially all of
        the assets of the Company, a cash distribution will be made (i) first to
        the
        Class A Unit Holders and Class C Unit Holders (pro rata based upon the number
        of
        Class A Units and Class C Units held, respectively) until the total cash
        distributions made to the Class A Unit Holders pursuant to this Agreement
        equal
        40% of the cash distributions made by the Company and the total cash
        distributions made to the Class C Unit Holder pursuant to this agreement
        equal
        9% of the cash distributions made by the Company and (ii) to the Class A
        Unit
        Holders, Class B Unit Holder and Class C Unit Holder in accordance with their
        respective Capital Accounts.

       

      3.3.  Allocation
        of Profits and
        Losses.

       

      (a)  Profits
        shall be allocated to the Members in proportion to their respective Percentages,
        subject to the special allocations contemplated by Sections 3.3 through 3.7
        below.

       

      (b)  Losses
        shall be allocated:

       

      (i)  First
        to
        Members with positive Capital Account balances in accordance with the ratio
        of
        their respective Capital Account balances until no Member has a positive
        Capital
        Account;

       

      (ii)  Then,
        among the Members in proportion to their respective percentages; provided,
        however, that no allocation of Losses shall be made to any Member to the
        extent
        that an allocation would create or increase a deficit Capital Account balance
        in
        that Member’s Capital Account, calculated as required in Treasury Regulations,
        Section 1.704-1(b)(2)(ii)(d), in excess of his proportionate share of Minimum
        Gain defined in Section 1.704-2(d)1-4 of the Treasury Regulations and his
        share of Partner Non-Recourse Debt Minimum Gain described in Treasury
        Regulations, Section 1.704-(2)(i)(5) and any amount that the Member is obligated
        to restore on account of its deficit capital account under Section
        1.704-1(b)(2)(ii)(c) of the Treasury Regulations.

       

      (c)  Notwithstanding
        the foregoing, in the event the Percentage of any Member changes during a
        calendar year for any reason, including without limitation, the transfer
        of any
        interest in the Company, such allocations of taxable income or loss of items
        that are required to be separately stated under Section 702(a) of the Code
        shall
        be adjusted to reflect the varying interests of the Members during such year
        in
        accordance with the method selected by the Members, as required by Section
        706(d) of the Code.

       

      3.4.  Minimum
        Gain
        Chargeback

       

      .  If
        there is a net decrease in Company Minimum Gain during a Company taxable
        year,
        all Members shall be specially allocated items of income and gain for such
        year
        (and, if necessary, for subsequent years) in proportion to, and to the extent
        of, an amount equal to the portion of such Member’s share of the net decrease in
        Minimum Gain during such year as determined under Treasury Regulation Section
        1.704-2(g)(2).  Any such allocations shall be made in accordance with
        and only to the extent required by Treasury Regulation Sections 1.704-2(f)
        and
        1.704-2(j)(2)(i).

       

      3.5.  Chargeback
        Attributable to Member
        Non-recourse Debt

       

      .  If
        there is a net decrease in Company minimum gain during a Company taxable
        year
        attributable to a Member Non-recourse Debt, any Member with a share of minimum
        gain attributable to such debt at the beginning of such year shall be specially
        allocated items of income and gain for such year (and, if necessary, for
        subsequent years) in proportion to, and to the extent of, an amount equal
        to
        such Member’s share of the net decrease in Minimum Gain attributable to such
        Member Non-recourse Debt (which share of such net decrease shall be determined
        under Treasury Regulation Section 1.704-2(i)(4)).  Any such
        allocations shall be made in accordance with and only to the extent required
        by
        Treasury Regulation Sections 1.704-2(i) and 1.704-2(j)(2)(ii).

       

      3.6.  Qualified
        Income
        Offset

       

      .  If
        any Member unexpectedly receives any adjustments, allocations or distributions
        described in Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(4) through
        (6)
        which results in an Adjusted Capital Account Deficit, such Member shall be
        allocated items of income and book gain in an amount and manner sufficient
        to
        eliminate such Adjusted Capital Account Deficit as quickly as
        possible.

       

      3.7.  Limitations
        on Loss
        Allocations

       

      .  Notwithstanding
        anything in Section 3.2 of this Agreement to the contrary, Losses shall not
        be
        allocated to any Members if they would create an Adjusted Capital Account
        Deficit in such Member’s Capital Account, and such Losses shall be reallocated
        under this Section3.6 to Members with a positive Capital Account
        balance.

       

      3.8.  Member
        Non-recourse
        Deductions

       

      .  Items
        of Company loss, deductions or Code Section 705(a)(2)(B) expenditures that
        are
        attributable to a Member Non-recourse Debt (“Member Non-recourse Deductions”)
        shall be allocated among the Members who bear the Economic Risk of Loss for
        such
        Member Non-recourse Liability in the ratio in which they share Economic Risk
        of
        Loss for such Member Non-recourse Liability.  This provision is to be
        interpreted in a manner consistent with the requirements of Treasury Regulation
        Section 1.704-2(i).

       

      3.9.  Amendments
        to
        Allocations

       

      .  In
        order to preserve and protect the contemplated distributions and allocations
        provided for in this Article 3, the Manager is authorized and directed to
        allocate net profit, net loss, or any other item of tax preference, income,
        gain, loss, deduction, or credit arising in any year differently than otherwise
        provided for in this Article 3 if, and to the extent that, allocating such
        items
        in the manner provided in this Article 3 would not to be permitted by Section
        704(b) of the Code or the regulations thereunder.  Any allocations
        made pursuant to this Section 3.8 shall be deemed to be a complete substitute
        for any allocation otherwise provided for in this Article 3, and no amendment
        to
        this Agreement or approval of any Member shall be required.  In making
        any allocation ( the “New Allocation”) as set forth above, the Manager is
        authorized to act only after having determined that the New Allocation either
        more accurately reflects the distributions contemplated by this Article 3
        or is
        not inconsistent with those distributions, and after having been advised
        by tax
        counsel to the Company or the Company’s accountants that, in their opinion,
        after examining the then applicable terms of Section 704(b) of the Code and
        the
        regulations thereunder, along with all relevant administrative and judicial
        authority, (i) the New Allocation is necessary, and (ii) the New Allocation
        is
        the minimum necessary modification of the allocations.  New
        Allocations made by the Manager in reliance upon the advice of tax counsel
        shall
        be deemed to be made pursuant to the fiduciary obligation of the Manager
        to the
        Members, and no such New Allocations shall give rise to any claim or cause
        of
        action by any Members.

       

      ARTICLE
        4.                                

      RIGHTS
        AND DUTIES OF MANAGERS AND MEMBERS

       

      4.1.  Management

       

      .  The
        business and affairs of the Company shall be managed by its Manager (initially,
        Stratus).  The Manager shall direct, manage and control the business
        of the Company to the best of the Manager’s ability.  Except for
        situations in which the approval of the Members is expressly required by
        this
        Operating Agreement or by nonwaivable provisions of applicable law, the Manager
        shall have full and complete authority, power, and discretion to manage and
        control the business, affairs, and properties of the Company, to make all
        decisions regarding those matters and to perform any and all other acts or
        activities customary or incident to the management of the Company’s
        business.  Nothing contained in this Agreement shall require any
        person to inquire into the authority of the Manager to execute and deliver
        any
        document on behalf of the Company or to bind the Company pursuant to such
        document.

       

      4.2.  Voting
        Powers of Other
        Members, General Rules

       

      .  Except
        as otherwise expressly provided for in this Agreement, a Member who is not
        a
        Manager shall not have any voting rights or take any part in the day-to-day
        management or conduct of the business of the Company, nor shall any such
        Member
        have any right or authority to act for or bind the Company in his capacity
        as a
        Member.  Actions and decisions that do require the approval of the
        Members pursuant to any provision of this Agreement may be authorized or
        made by
        affirmative vote of Members holding a majority of the Units.  Such
        vote may be taken at a meeting of the Members or by written consent without
        a
        meeting.

       

      4.3.  Certain
        Matters

       

      .  Without
        limiting the generality of Section 4.2, the unanimous approval of the Manager
        and Members holding a majority of the outstanding Class A Units shall be
        required before any of the following acts involving the Company:

       

      (a)  transferring
        all or substantially all of the assets of the Company;

       

      (b)  any
        merger, consolidation or other business combination with respect to the Company
        or the liquidation or dissolution of the Company or the adoption of any plan
        with respect to any such liquidation or dissolution;

       

      (c)  the
        Company making an assignment for the benefit of creditors, filing a voluntary
        petition in bankruptcy, filing a petition or answer seeking for itself any
        reorganization, arrangement, composition, readjustment, liquidation, dissolution
        or similar relief under any statute, law or regulation, or seeking, consenting
        to or acquiescing in the appointment by a court of a trustee, receiver or
        liquidator of the Company or all or any substantial part of its
        assets;

       

      4.4.  Meetings

       

      .  Any
        Member may call a meeting to consider approval of an action or decision under
        any provision of this Agreement by delivering to the other Member notice
        of the
        time, location (which shall be in the State of New Jersey) and purpose of
        such
        meeting at least five (5) days before the day of such meeting.  A
        Member may waive the requirement of notice of a meeting either by attending
        such
        meeting or executing a written waiver before or after such
        meeting.  Any such meeting shall be held during the regular business
        hours unless Member’s holding a majority of the outstanding Units consent in
        writing or by their attendance at such meeting to its being held at another
        time.

       

      4.5.  Written
        Consent. 

       

      Any
        Member may propose that the Company authorize an action or decision pursuant
        to
        any provision of this Agreement by written consent of Members holding a majority
        of the Units entitled to vote on such matter in lieu of a meeting.  A
        Member’s written consent may be evidenced by a signature on a counterpart of the
        proposal or by a separate writing (including a facsimile) that identifies
        the
        proposal with reasonable specificity and states that the Member consents
        to such
        proposal.

       

      4.6.  Vote
        by Proxy.

       

      A
        Member
        may vote (or execute a written consent) by proxy given to another
        Member.  Any such proxy must be in writing and must identify the
        specific meeting or matter to which the proxy applies or state that it applies
        to all matters (subject to specified reservations, if any) coming before
        the
        Members for approval under any provision of this Agreement prior to a specified
        date (which shall not be later than the first anniversary date on which such
        proxy is given).  Any such proxy shall be revocable at any time and
        shall not be effective at any meeting at which the Member giving such proxy
        is
        in attendance.

       

      4.7.  Records.

       

      The
        Company shall maintain permanent records of all actions taken by the Members
        pursuant to any provision of this Agreement, including minutes of all Company
        meetings, copies of all actions taken by consent of the Members, and copies
        of
        all proxies pursuant to which one Member votes or executes a consent on behalf
        of another.

       

      4.8.  Tenure
        and
        Qualifications

       

      .  Stratus
        shall be the Company’s initial Manager.  The Manager shall hold office
        until the effective date of its withdrawal or upon the occurrence of any
        events
        set forth in Section 4.15.  A Manager need not be a resident of the
        State of Delaware or a Member of the Company.

       

      4.9.  Certain
        Powers of the
        Manager

       

      .  Without
        limiting the generality of Article 4, and except as otherwise set forth in
        Section 4.3, the Manager shall have power and authority, on behalf of the
        Company:

       

      (a)  To
        do and
        perform all acts as may be necessary or appropriate to conduct the Company’s
        business;

       

      (b)  To
        purchase liability and other insurance to protect the Company’s property and
        business;

       

      (c)  To
        hold
        any Company real and/or personal properties in the name of the
        Company;

       

      (d)  To
        invest
        any Company funds temporarily, including without limitation, in time deposits,
        short-term government obligations, commercial paper, or other
        investments;

       

      (e)   To
        execute on behalf of the Company all instruments and documents, including,
        without limitation, checks, drafts, notes and other negotiable instruments,
        mortgages, or deeds of trust, security agreements, financing statements,
        documents providing for the acquisition, mortgage or disposition of the
        Company’s property, assignments, bills of sale, leases, partnership agreements,
        operating agreements of other limited liability companies, and any other
        instruments or documents necessary, in the opinion of the Manager, to the
        business of the Company;

       

      (f)  To
        employ
        accountants, legal counsel managing agents, or other experts or employees
        or
        agents to perform services for the Company and to compensate them from Company
        funds;

       

      (g)  To
        enter
        into any and all other agreements on behalf of the Company with any other
        person
        for any purpose, in such forms as the Manager may approve; and

       

      (h)  To
        do and
        perform all other acts as may be necessary or appropriate to the conduct
        of the
        Company’s business.

       

      4.10.  Company
        Basis Elections

       

      .  In
        the event of the distribution of property by the Company within the meaning
        of
        Section 734 of the Code, or the transfer of an interest in the Company within
        the meaning of Section 743 of the Code, the Manager, in the Manager’s sole and
        absolute discretion, may elect to adjust the basis of the Company property
        pursuant to Sections 734, 743 and 754 of the Code.  Members affected
        by this election, if made, shall supply to the Company the information that
        may
        be required to make the election.

       

      4.11.  Liability
        for Certain Acts

       

      .  The
        Manager shall not have any liability by reason of being or having been a
        Manager
        of the Company.  The Manager does not, in any way, guarantee the
        return of the Members’ Capital Contributions or a profit for the Members from
        the operations of the Company.  To the extent permitted by Delaware
        law, no Member or Manager of the Company shall be personally liable to the
        Company or its Members for damages for breach of any duty owed to the Company
        or
        its Members except that a Member or Manager shall not be relieved from liability
        for any breach of duty based on an act or omission (a) in breach of such
        person’s duty of loyalty to the Company or its Members, (b) not in good faith or
        involving a knowing violation of law or this Agreement, or (c) resulting
        in
        receipt by such person of an improper personal benefit.

       

      4.12.  The
        Manager has no Exclusive Duty to the Company

       

      .  The
        Manager shall not be required to manage the Company as its sole and exclusive
        function and he, she or it may have other business interests and may engage
        in
        other activities in addition to those relating to the
        Company.  Neither the Company nor any Member shall have any right, by
        virtue of this Operating Agreement, to share or participate in such other
        investments or activities of the Manager or to the income or proceeds derived
        from such investments or activities.  The Manager shall incur no
        liability to the Company or to any Member as a result of engaging in any
        other
        business or venture.

       

      4.13.  Indemnification

       

      .

       

      (a)  The
        Manager and the present and former directors, officers, employees and Affiliates
        of the Manager and employees of the Company (individually, an “Indemnitee”),
        will each, to the maximum extent permitted by law, be indemnified and held
        harmless by the Company from and against any and all losses, claims, damages,
        liabilities, joint and several expenses (including legal fees and expenses),
        judgments, fines, costs, settlements, and other amounts arising from any
        and all
        claims, demands, actions, suits or proceedings, civil, criminal, administrative
        or investigative, (1) in which the Indemnitee may be involved, or threatened
        to
        be involved, as a party or otherwise (a) by reason of its present or former
        status as a Manager or a director, officer, employee or Affiliate of the
        Manager
        or the Company, (b) by reason of its present or former status in serving,
        at the
        request of the Company or Manager, as a director, officer, shareholder, employee
        or agent of another corporation, partnership, joint venture, trust or other
        enterprise or as a member of a committee or similar body, or (c) by reason
        of
        its management of the affairs of Manager or the Company, or (2) which relate
        to
        the property, business or affairs of Manager or the Company, whether or not
        the
        Indemnitee continues to be a Manager or a director, officer, employee or
        Affiliate of Manager or employee of the Company at the time any such liability
        or expense is paid or incurred, if the Indemnitee acted in good faith and
        in a
        manner reasonably believed to be in, or not opposed to, the best interests
        of
        the Company, and, with respect to any criminal proceeding, had no reasonable
        cause to believe and did not believe its or his conduct was
        unlawful.  The termination of a proceeding by judgment, order,
        settlement, conviction or upon a plea of nolo contendere, or its equivalent,
        will not, of itself, create a presumption that the Indemnitee did not act
        in
        good faith and in a manner which the Indemnitee reasonably believed to be
        in, or
        not opposed to, the best interests of the Company or a presumption that the
        Indemnitee had reasonable cause to believe or did believe that its conduct
        was
        unlawful.  The Manager will have the right and power, but not the
        obligation unless otherwise agreed, to indemnify and hold harmless present
        or
        former employees, agents, advisers, consultants and counsel of or to the
        Manager, the Company (including any custodian, investment adviser, accountant,
        attorney, corporate fiduciary, trustee, bank, other financial institution,
        or
        other agent or Person who serves or served in such capacity for the Company
        or
        the Manager, on terms similar to those described above against liabilities
        incurred by them in acting in any such capacity.

       

      (b)  An
        Indemnitee will not be entitled to indemnification under this Section 4.13
        for
        any actions that constitute actual fraud or with respect to any claim, issue
        or
        matter in which it has been adjudged liable for gross negligence or willful
        misconduct, unless and only to the extent that the court in which such action
        was brought, or another court of competent jurisdiction, should determine
        upon
        application that, despite the adjudication of liability, but in view of all
        circumstances of the case, the Indemnitee is fairly and reasonably entitled
        to
        indemnification for liabilities and expenses as the court may deem
        proper.

       

      (c)  An
        Indemnitee’s expense (including legal fees and expenses) incurred in defending
        any proceeding will be paid by the Company in advance of the final disposition
        of the proceeding upon receipt of an undertaking by or on behalf of the
        Indemnitee to repay such amount if it is ultimately determined by a court
        of
        competent jurisdiction that the Indemnitee is not entitled to be indemnified
        by
        the Company as authorized hereunder.

       

      (d)  The
        indemnification and advancement of expenses provided by this Section 4.13
        are in
        addition to any other rights to which the Indemnitee may be entitled under
        any
        agreement, bylaw provision, vote of the Partners, as a matter of law or
        otherwise, both as to action in the Indemnitee’s capacity as a Manager, or as a
        present or former partner, shareholder, director, officer, employee or Affiliate
        of the Manager or employee of the Company and to action in any other capacity,
        and will continue as to an Indemnitee who has ceased to serve in such capacity
        and will inure to the benefit of the heirs, successors, assigns and
        administrators of the Indemnitee.  The parties intend for this Section
        4.13 to be liberally construed.

       

      4.14.  Withdrawal

       

      .  The
        Manager may withdraw, resign or retire on thirty (30) days’ written notice to
        the Class A Unitholders.  The Manager may not withdraw, resign or
        retire as the Manager unless the Members holding a majority of the outstanding
        Class A Units have elected a successor to serve as Manager effective on or
        before such withdrawal, resignation or retirement.

       

      4.15.  Effect
        of Certain Events

       

      .  The
        Manager will cease to be the Manager of the Company only upon the occurrence
        of
        any one or more of the following events:

       

      (a)  The
        Manager’s withdrawal, resignation or retirement from the Company, effective as
        provided in Section 4.14;

       

      (b)  Effective
        as provided in (ii) below, an order for relief against the Manager is entered
        under Chapter 7 of the federal bankruptcy law, or the Manager (i) makes a
        general assignment for the benefit of creditors, (ii) files a voluntary petition
        under the federal bankruptcy law, (iii) files a petition or answer seeking
        for
        that Manager any bankruptcy, reorganization, arrangement, composition,
        readjustment, liquidation, dissolution or similar relief under any statute,
        law,
        or regulation, (iv) files an answer or other pleading admitting or failing
        to
        contest the material allegations of a petition filed against that Manager
        in any
        proceeding of this nature, or (v) seeks, consents to, or acquiesces in the
        appointment of a trustee, receiver, or liquidator of the Manager or of all
        or
        any substantial part of that Manager’s properties;

       

      (c)  The
        death
        of an individual Manager.

       

      4.16.  Vacancies

       

      .  Any
        vacancy occurring for any reason in the position of Manager of the Company
        shall
        be filled by the affirmative vote of Members holding at least a majority
        of the
        outstanding Class A Units.

       

      4.17.  Officers

       

      .  The
        Manager may, from time to time, employ or retain persons as may be necessary
        or
        appropriate for the conduct of the Company’s business (subject to the
        supervision and control of the Manager), including employees, agents and
        other
        persons who may be designated as officers of the Company.  Any number
        of offices may be held by the same person.  In its discretion, the
        Manager may choose not to fill any office for any period as it may deem
        advisable.  Any officers so designated shall have such authority and
        perform such duties as the Manager may, from time to time, delegate to them
        by
        written resolution executed by the Manager.  The Manager may assign
        titles to particular officers.  Each officer shall hold office until
        he or she shall resign or shall have been removed in the manner hereinafter
        provided.  The salaries or other compensation, if any, of the officers
        of the Company shall be fixed from time to time by the Manager.  The
        officers, in the performance of their duties as such, shall owe to the Company
        duties of loyalty and due care of the type owed by the officers of a corporation
        to such corporation and its shareholders under the laws of the State of
        Delaware.

       

      4.18.  Resignation
        of Officer

       

      .  Any
        officer may resign as such at any time.  Such resignation shall be
        made in writing and shall take effect at the time specified therein, or if
        no
        time be specified, at the time of its receipt by Manager.  The
        acceptance of a resignation shall not be necessary to make it effective,
        unless
        expressly so provided in the resignation.  Any officer may be removed
        as such, either with or without cause at any time by the
        Manager.  Designation of an officer shall not of itself create any
        contractual rights or employment rights.

       

      ARTICLE
        5.                                

      TRANSFER
        OF UNITS

       

      5.1.  General
        Restriction

       

      .  A
        Member may transfer, whether voluntarily or involuntarily, all or some of
        such
        Member’s Units only as expressly provided for in this Agreement.  For
        purposes of this Agreement, a “transfer” includes, but is not limited to, any
        sale, assignment, gift, exchange, hypothecation, collateral assignment or
        subjection to any security interest.

       

      5.2.  Assignment
        of
Units

       

      .  Subject
        to compliance with the conditions of Section 5.4, a Member shall have the
        right
        to transfer all or some of such Member’s Units by a written instrument of
        assignment, the terms of which are not in contravention of any of the provisions
        of this Agreement.  The assigning Member shall deliver to the Manager
        a written instrument of assignment in form and substance satisfactory to
        the
        Manager, duly executed by the assigning Member or such Member’s personal
        representative or authorized agent.  The assignment shall be
        accompanied by such assurances of genuineness and effectiveness and by such
        consents or authorizations of governmental or other authorities as may be
        reasonably required by the Manager.

       

      5.3.  Admission
        of Additional
        Members

       

      .  Any
        person acceptable to the Manager  may become an additional Member in
        the Company by the issuance of additional Units in exchange for such
        consideration as the Manager may determine.  Such person may become an
        additional Member in the Company only if, in addition to the requirements
        of
        Section 5.4, the person executes such instruments as the Manager may deem
        necessary or desirable to effect such admission.  Admission of an
        additional Member shall be recognized by the Company as provided in Section
        5.7.

       

      5.4.  Conditions
        of Transfers of
Units

       

      .  A
        transfer of Units otherwise permitted by this Article 5 shall be subject
        to the
        limitations set forth below in this Section 5.4 unless the transfer is to
        a
        Permitted Transferee.

       

      (a)  No
        Units
        may be transferred without the written consent of the Manager.

       

      (b)  No
        Units
        may be transferred or issued if such proposed action, in the opinion of counsel
        for the Company, (i) would result in the termination of the Company under
        Section 708 of the Code, or (ii) would result in the cancellation of the
        Certificate of Formation or an obligation to file a Certificate of Cancellation,
        or (iii) would impair the ability of the Company to be taxed as a partnership
        for Federal income tax purposes.

       

      (c)  No
        Units
        may be transferred by a Member unless the transferee confirms in writing
        acceptable to the Members that such transferee has accepted, assumed, and
        agreed
        to be bound subject to and bound by all of the terms and conditions of this
        Agreement.

       

      (d)  No
        Units
        may be transferred unless, if requested, the Manager receives an opinion
        of
        counsel, satisfactory in form and substance to the Company’s counsel, to the
        effect that such transfer will not violate the Federal securities laws, or
        any
        state securities or syndication laws.  Such opinion shall, in the case
        of a transfer by a Member, be furnished at the expense of such
        Member.

       

      5.5.  Withdrawal
        of
        Member

       

      .  Except
        as otherwise provided in this Article 5, no Member shall be entitled to withdraw
        or resign from the Company.

       

      5.6.  Recognition
        of Assignees and
        Substituted Members

       

      .  Amendments
        to the books and records of the Company and, as may be required by law,
        amendments to the Certificate of Formation, shall be made monthly (or less
        frequently to the extent that such assignments or substitutions occur less
        frequently) to recognize the assignments of Units and, as applicable, admission
        of substituted or additional Members.  Assignments of Units and
        admissions of new Members shall be recognized and effective on and as of
        the
        first day of the first month following the date of the satisfaction of the
        conditions to the transfer and substitution set forth in this Article, as
        applicable.

       

      5.7.  Obligations
        of Transferring
        Member

       

      .  Except
        as otherwise agreed to by the Manager, no transfer by a Member of all or
        any
        portion of an interest in the Company shall, to any extent, relieve the
        transferring Member of any of such Member’s obligations to the Company or
        liability, if any, as a Member (whether or not such person remains as a
        Member).

       

      5.8.        Allocations
        Upon Transfer of Units.

       

      (a)  As
        between a Member and his transferee, profits, losses and credits for any
        monthly
        period shall be apportioned to the person who is the holder of the Units
        transferred on the last day of such monthly period, without regard to the
        results of the Company’s operations during the period before or after such
        transfer.  However, in the event that it is determined by the Manager
        that the convention adopted by the Company to allocate income, gain, loss,
        deduction or credit of the Company is not in compliance with Section 706(d)
        of
        the Code, as modified by Regulations promulgated thereunder, then the Manager
        shall revise the method of allocation to comply with such
        Regulations.

       

      (b)  No
        new
        Members shall be entitled to any retroactive allocation of Profits or Losses
        incurred by the Company.  The Manager may, at its option, at the time
        a Member is admitted, or a Unit transferred, close the Company’s books or make
        an allocation of tax items using any reasonable method permitted under Section
        706(d) of the Code and applicable Treasury Regulations.

       

      (c)  Any
        distributions of cash or other property shall be made to the holder of record
        of
        any Units on the date of distribution.

       

      ARTICLE
        6.                                

      DISSOLUTION
        AND LIQUIDATION

       

      6.1.  Events
        Triggering
        Dissolution

       

      .  The
        Company shall dissolve and commence winding up and liquidating upon the first
        to
        occur of any of the following events:

       

      (a)  the
        determination by vote of the Members holding Units representing a majority
        of
        the outstanding Units, that the Company should be dissolved;

       

      (b)  the
        insolvency or bankruptcy of the Company;

       

      (c)  the
        sale
        of all or substantially all of the Company assets; or

       

      (d)  any
        event
        that makes it impossible, unlawful or impractical to carry on the business
        of
        the Company.

       

      6.2.  Effect
        of
        Dissolution

       

      .  No
        dissolution of the Company shall release any of the parties to this Agreement
        for their contractual obligations under this Agreement.

       

      6.3.  Liquidation

       

      .  Upon
        dissolution of the Company in accordance with Section 6.1, the Company shall
        be
        liquidated.  The Manager shall select a liquidating manager (who may
        be any Member or the Manager) who shall serve only for purposes of winding
        up
        the Company (“Liquidating Manager”).  The proceeds of such liquidation
        shall be applied and distributed in the following order of
        priority:

       

      (a)  to
        the
        payment of the debts and liabilities of the Company (other than debts or
        liabilities owing to a Member) and the expenses of liquidation (including,
        if
        applicable, the reasonable fees of the Liquidating Manager);

       

      (b)  the
        setting up of any reserves which the Liquidating Manager may deem reasonably
        necessary for any contingent or unforeseen liabilities or obligations of
        the
        Company as the Liquidating Manager may deem advisable, for distribution in
        the
        manner hereinafter provided;

       

      (c)  to
        the
        repayment of any outstanding advances or loans that may have been made by
        any of
        the Members to the Company, other than capital contributions, pro rata among
        them on the basis of such advances and loans to the Company; and

       

      (d)  the
        balance, if any, to the Members (or to their permitted transferees of their
        Interest in the Company, in whole or in part) in accordance with their
        respective Capital Accounts, after adjustment for all income, loss, and gain
        of
        the Company and after adjustment for all previous contributions and
        distributions of the Company.

       

      6.4.  Revaluation

       

      .  If
        the Company assets are not sold, but instead are distributed in kind, such
        assets, for purposes of determining the amount to be distributed to the parties,
        shall be revalued on the Company books to reflect their then current fair
        market
        value as of a date reasonably close to the date of liquidation.  Any
        unrealized appreciation or depreciation shall be allocated among the Members
        and
        taken into account in determining the Capital Accounts of the Members as
        of the
        date of liquidation.

       

      6.5.  Distributions
        in
        Kind

       

      .  The
        Liquidating Manager may make distributions to the Members in cash or in kind,
        or
        partly in cash or partly in kind, in divided or undivided interests, and
        to
        allocate any property towards the satisfaction of any payment or distribution
        due to the Members in such manner as the Liquidating Manager may determine,
        whether or not such distributive shares may as a result be composed of different
        assets.  Distribution of any asset in kind to a Member shall be
        considered as a distribution of an amount equal to the asset’s fair market value
        for purposes of this Article 6.

       

      6.6.  Timing
        of
        Liquidation

       

      .  Distributions
        and liquidation of the Company shall be made in compliance with Treasury
        Regulation Section 1.704-1(b)(2)(ii)(b).  Distributions may be made to
        a trust established for the benefit of the Members for the purposes of
        liquidating Company assets, collecting amounts owed to the Company, and paying
        any contingent or unforeseen liabilities or obligations of the Company or
        of the
        Members arising out of or in connection with the Company.  The assets
        of any such trust shall be distributed to the Members from time to time in
        the
        reasonable discretion of the Liquidating Manager, in the same proportions
        as the
        amount distributed to such trust by the Company would otherwise have been
        distributed to such persons pursuant to this Agreement.

       

      6.7.  Certificate
        of
        Cancellation

       

      .  Upon
        the dissolution of the Company and the completion of the liquidation and
        winding
        up of the Company’s affairs and business, the Liquidating Manager shall (or if
        the Liquidating Manager fails to act, then any Member may) prepare and file
        a
        certificate of cancellation with the Delaware Secretary of State, as required
        by
        the Act.  When such certificate is filed, the Company’s existence
        shall cease.

       

      ARTICLE
        7.                                

      ACCOUNTING
        AND FISCAL MATTERS

       

      7.1.  Fiscal
        Year

       

      .  The
        fiscal year of the Company shall end on September 30 or on such other date
        as
        shall be selected by the Manager.

       

      7.2.  Method
        of
        Accounting

       

      .  The
        Managers shall select a method of accounting for the Company as deemed necessary
        or advisable and shall keep, or cause to be kept, full and accurate records
        of
        all transactions of the Company in accordance with sound accounting principles
        consistently applied.

       

      7.3.  Books
        and Records

       

      .  All
        books of account shall, at all times, be maintained in the principal office
        of
        the Company.  Upon reasonable request, each Member shall have the
        right, during ordinary business hours, to inspect and copy all accounts,
        books,
        and other relevant Company documents at the requesting Member’s
        expense.  Upon written request of any Member, the Managers shall
        provide a list showing the name, addresses, and Units of all Members, and
        a copy
        of the Operating Agreement and Certificate of Formation.

       

      7.4.  Federal
        Income Tax
        Returns

       

      .  The
        Manager shall prepare, or cause to be prepared, Federal income tax returns
        for
        the Company, and, in connection therewith and at the discretion of the Manager,
        make any available or necessary elections, including elections with respect
        to
        the useful lives and rates of depreciation of the properties of the
        Company.

       

      7.5.  Reports
        and
        Statements

       

      .  By
        the first of April of each calendar year of the Company, the Manager shall
        cause
        to be delivered to the Members such information as shall be necessary for
        the
        preparation by the Members of their Federal, state and local income and other
        tax returns.  The Manager shall also furnish such other information to
        the Member as, in the judgment of the Manager, shall be reasonably necessary
        for
        the Members to be advised of the financial status and results of operations
        of
        the Company.

       

      7.6.  Bank
        Accounts

       

      .  The
        Manager shall open and maintain (in the name of the Company) such bank accounts
        in which shall be deposited all funds of the Company.  Withdrawals
        from such account or accounts shall be made upon the signature or signatures
        of
        such person or persons as the Manager shall designate.

       

      7.7.  Tax
        Matters Partner

       

      .  The
        Manager shall act as “Tax Matters Partner” under Section 6231(a)(7) of the
        Internal Revenue Code of 1986, as amended, to manage administrative tax
        proceedings with the Internal Revenue Service.

       

      ARTICLE
        8.                                

      MISCELLANEOUS

       

      8.1.        Amendment

       

      .  Amendments
        to this Agreement may be  made in accordance with the terms of this
        Article 8.

       

      8.2.  Amendments
        Without Consent of
        Members

       

      .  In
        addition to any amendments otherwise authorized in this Agreement, amendments
        may be made to this Agreement from time to time by the Manager, without the
        consent of any Member, which (i) do not adversely affect the rights of the
        Members or their assignees in any material respect; (ii) correct any error
        or
        resolve any ambiguity in or inconsistency among any of the provisions of
        this
        Agreement; (iii) delete or add any provision of this Agreement that is required
        to be so deleted or added by any federal or state securities commission or
        other
        governmental authority; (iv) amend this Agreement and the Certificate of
        Formation to admit new Members or issue new interests, Units or securities
        in
        accordance with this Agreement; and (v) is in response to a change in the
        Act
        that permits or requires an amendment so long as no Member is adversely affected
        in any material respect.

       

      8.3.  Amendments
        Requiring Consent of
        Affected Members

       

      .  Notwithstanding
        anything to the contrary in this Article 8, this Agreement may not be amended,
        without the consent of the Member or Members affected by any amendment to
        this
        Agreement which would (i) materially and adversely affect the rights of the
        Member ( except that the Manager may amend this Agreement and the Certificate
        of
        Formation to admit new Members or issue new interests, Units or securities
        in
        accordance with this Agreement) or (i) modify the limited liability of a
        Member.

       

      8.4.        Glossary

       

      .  As
        used in this Agreement, capitalized words and phrases shall have the meanings
        set forth below:

       

      (a)  Affiliate.  “Affiliate”
        means, with respect to any Person (i) each Person that, directly or indirectly,
        owns or controls, whether beneficially, or as a trustee, guardian or other
        fiduciary, 50% or more of the voting interests of such Person, (ii) each
        Person
        that controls, is controlled by or is under common control with each Person
        or
        any Affiliate of such Person, (iii) each of such Person’s officers, directors,
        managers, joint venturers, members and partners, or (iv) such Person’s spouse,
        children, siblings and parents.  For the purpose of this definition,
“control” of a Person shall mean the possession, directly or indirectly, of the
        power to direct or cause the direction of its management or policies, whether
        through the ownership of voting interests, by contract or
        otherwise.

       

      (b)  Adjusted
        Capital Account Deficit.  “Adjusted Capital Account Deficit” means
        the deficit balance, if any, in a Member’s Capital Account at the end of any
        fiscal year, with the following adjustments:

       

      (i)  Credit
        to
        such Capital Account any amount that such Member is obligated to restore
        under
        Treasury Regulation Section 1.704-1(b)(2)(ii)(c), as well as any addition
        thereto pursuant to the next to last sentences of Treasury Regulation Sections
        1.704-2(g)(1) and 1.704-2(i)(5); and

       

      (ii)  Debit
        to
        such Capital Account the items described in Treasury Regulation Sections
        1.704-1(b)(2)(ii)(d)(4) through (6).  The foregoing definition of
        Adjusted Capital Account Deficit is intended to comply with the provisions
        of
        Treasury Regulation Section 1.704-1(b)(2)(ii)(d) and shall be interpreted
        consistently therewith.

       

      (c)  Bankruptcy.  “Bankruptcy”
        of any individual, corporation or partnership shall be deemed to occur when
        (1)
        such individual, corporation or partnership files a petition in bankruptcy,
        or
        voluntarily takes advantage of any bankruptcy or insolvency law, or (2) is
        the
        subject of a petition or answer proposing the adjudication of such person
        as a
        bankrupt, and such individual, corporation or partnership either consents
        to the
        filing thereof, or fails to cause such petition or answer to be discharged
        or
        denied prior to the expiration of sixty (60) days from the date of such filing,
        or (3) such person’s or entity’s assets are insufficient to pay his, her or its
        liabilities, or he, she or it has so admitted in writing.

       

      (d)  Calendar
        Quarter.  “Calendar Quarter” means any of the three month periods
        ending March 31, June 30, September 30 or December 31.

       

      (e)  Capital
        Account.  “Capital Account” means, with respect to any Member, the
        Capital Account maintained for such Member in accordance with the following
        provisions:

       

      (i)  To
        each
        Member’s Capital Account there shall be credited such Member’s Capital
        Contributions, such Member’s distributive share of Profits and any items in the
        nature of income or gain that are specially allocated pursuant to Article
        3 of
        this Agreement, and the amount of any Company liabilities that are assumed
        by
        such Member or that are secured by any Company property distributed to such
        Member.

       

      (ii)  In
        the
        event any Member transfers all or any of his or her Units in accordance with
        the
        terms of this Agreement, the transferee shall succeed to the Capital Account
        of
        the transferor to the extent it relates to the transferred Units.

       

      (iii)  In
        determining the amount of any liability for purposes of this Section 8.4,
        there
        shall be taken into account Code Section 752(c) and other applicable Code
        Sections and Treasury Regulations.

       

      (iv)  The
        foregoing provisions and the other provisions of this Agreement relating
        to the
        maintenance of Capital Accounts are intended to comply with Treasury Regulation
        Section 1.704-1(b), and shall be interpreted and applied in a manner consistent
        with the Treasury Regulations.  In the event the Manager determines
        that it is prudent to modify the manner in which the Capital Accounts, or
        any
        debits or credits thereto (including, without limitation, debits or credits
        relating to liabilities that are secured by contributed or distributed property
        or that are assumed by the Company or the Members), are computed in order
        to
        comply with such Regulations, the Manager may make such modification, provided
        that it is not likely to have a material effect on the amounts distributable
        to
        any Member pursuant to Article 6 of this Agreement upon the dissolution of
        the
        Company.  The Manager also shall make any appropriate modifications in
        the event unanticipated events might otherwise cause this Agreement not to
        comply with Regulations Section 1.704(b).

       

      (f)  Cash
        Flow From Operations.  “Cash Flow From Operations” means all cash
        funds derived from operations of the Company (including interest received
        on
        reserves), less cash funds to pay current operating expenses and to pay or
        establish reasonable reserves for future expenses, debt payments, capital
        improvements, contingencies, and replacements as determined by the
        Manager.

       

      (g)  Capital
        Contribution.  “Capital Contribution” means, with respect to any
        Member, the amount of money and the initial gross asset value of any property
        (other than money) contributed to the Company with respect to Units held
        by such
        Member.

       

      (h)  Class
        A Unit.  “Class A Unit” means a Unit representing a fractional
        part of the Class A Unitholders’ interest in the profits, losses and
        distribution of the Company and having the rights and obligations specified
        with
        respect to Class A Units in this Agreement.

       

      (i)  Class
        A Unitholder.  “Class A Unitholder” means a holder of Class A
        Units.

       

      (j)  Class
        B Unit.  “Class B Unit” means a Unit representing a fractional
        part of the Class B Unitholders’ interest in the profits, losses and
        distributions of the Company and having the rights and obligations specified
        with respect to the Class B Units in this Agreement.

       

      (k)  Class
        B Unitholder.  “Class B Unitholder” means a holder of Class B
        Units.

       

      (l)  Class
        C Unit.  “Class C Unit” means a Unit representing a fractional
        part of the Class C Unitholders’ interest in the profits, losses and
        distributions of the Company and having the rights and obligations specified
        with respect to the Class C Units in this Agreement.

       

      (m)  Class
        C Unitholder.  “Class C Unitholder” means a holder of Class C
        Units.

       

      (n)  Code.  “Code”
        means the Internal Revenue Code of 1986, as amended from time to time (or
        any
        corresponding provisions of succeeding law).

       

      (o)  Company.  “Company”
        means the limited liability company governed by this Agreement.

       

      (p)  Economic
        Risk of Loss.  “Economic Risk of Loss” means a determination that
        a Member bears the economic risk with respect to a Company liability in
        accordance with Treasury Regulation Section 1.752-2 (without regard to whether
        that section applies to such liability).

       

      (q)  Manager.  “Manager”
        shall initially mean Stratus or such other person or entity later designated
        by
        the Members.

       

      (r)  Members.  “Members”
        means the persons listed on attached Schedule A, and any person admitted
        to the
        Company as a Member in accordance with Article 5.  The Members shall
        have the powers, rights and privileges provided to them in this
        Agreement.

       

      (s)  Membership
        Interest.  “Membership Interest” means a Member’s economic
        interest in the Company and such Member’s right to participate in the management
        of the business and affairs of the Company, including, without limitation,
        the
        right to vote on, consent to, or otherwise participate in any decision or
        action
        of the Members pursuant to this Agreement or the Act.

       

      (t)  Member
        Non-recourse Debt.  “Member Non-recourse Debt” means any
        Non-recourse Liability of the Company for which any Member (or a party related
        to such Member) bears the Economic Risk of Loss.

       

      (u)  Minimum
        Gain.  “Minimum Gain” means, with respect to each Non-recourse
        Liability of the Company, the amount of gain (of whatever character) that
        would
        be realized by the Company if it disposed of the Company property subject
        to
        such liability in a taxable transaction in full satisfaction of such liability
        (and for no other consideration), and by then aggregating the amounts so
        computed.  It is further understood that Minimum Gain shall be
        determined in a manner consistent with the rules of Treasury Regulation Section
        1.704-2(d)(2) (or successor provisions).

       

      (v)  Non-recourse
        Liability.  “Non-recourse Liability” means any Company liability
        (or portion thereof) for which no Member or related persons (within the meaning
        of Treasury Regulation Section 1.752-4(b)) bears the Economic Risk of Loss
        within the meaning of Treasury Regulation Section 1.752-2.

       

      (w)  Percentage.  “Percentage”
        means:

       

      (i)  As
        to a
        Class A Unitholder, the percentage determined by multiplying (A) forty (40)
        by
        (B) a fraction, the numerator of which shall be the total number of Class
        A
        Units held by such Class A Unitholder and the denominator of which shall
        be the
        total number of Class A Units then outstanding;

       

      (ii)  As
        to a
        Class B Unitholder, the percentage determined by multiplying (A) fifty one
        (51)
        by (B) a fraction, the numerator of which shall be the total number of Class
        B
        Units held by such Class B Unitholder and the denominator of which shall
        be the
        total number of Class B Units then outstanding; and

       

      (iii)  As
        to a
        Class C Unitholder, the percentage determined by multiplying (A) nine (9)
        by (B)
        a fraction, the numerator of which shall be the total number of Class C Units
        held by such Unitholder and the denominator of which shall be the total number
        of Class C Units then outstanding.

       

      (x)  Permitted
        Transferee.  “Permitted Transferee” means with respect to a Member
        (i) a spouse, child, grandchild or sibling of the Member or a trust formed
        for
        estate planning purposes by the Member, (ii) a limited liability company,
        partnership or corporation in which the Member has a controlling interest
        or
        (iii) a transferee set forth under such Member’s name on Schedule B
        hereto.

       

      (y)  Person.  “Person”
        means and includes any individual, corporation, partnership, association,
        limited liability company, trust, estate or other entity.

       

      (z)  Profits
        and Losses.  “Profits” and “Losses” means, for each fiscal year or
        other period, an amount equal to the Company’s taxable income or loss for such
        year or period, determined by the Company’s accountant.

       

      (aa)  Treasury
        Regulations.  “Treasury Regulations” means the Income Tax
        Regulations promulgated under the Code, as such regulations may be amended
        from
        time to time (including corresponding provisions of succeeding
        regulations).

       

      (bb)  Unit.  “Unit”
        means a Unitholder’s interest in the profits, losses and distributions of the
        Company representing a fractional part of the aggregate interests in the
        profits, losses and distributions of the Company of all Unitholders; provided
        that any class or group of Units shall have the relative rights, powers duties
        and obligations specified with respect to such class or group of units in
        this
        Agreement, and the interest of such class or group of Units in the profits,
        losses and distributions of the Company shall be determined in accordance
        with
        such relative rights, powers, duties and obligations.

       

      (cc)  Unitholder.  “Unitholder”
        means any owner of one or more Units.

       

      8.5.        Notices

       

      .  Unless
        otherwise provided in this Agreement or by written agreement of the Members,
        all
        notices or other communications required or permitted to be given under this
        Agreement shall be deemed given when delivered personally or mailed by
        registered or certified mail, return receipt required, postage prepaid, or
        delivered by overnight courier service, to the Members at their addresses
        on the
        records of the Company, or at such other addresses as a Member may designate
        in
        writing to the Company.

       

      8.6.        Binding
        Effect

       

      .  Except
        as otherwise provided in this Agreement to the contrary, this Agreement shall
        be
        binding upon and inure to the benefit of the parties, their personal
        representatives, successors and assigns.

       

      8.7.        Counterparts

       

      .  This
        Agreement may be executed in several counterparts, each of which shall be
        deemed
        an original, but all of which shall be considered one and the same instrument
        which may be sufficiently evidenced by one counterpart.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      8.8.        Governing
        Law

       

      .  This
        Agreement shall be governed by, and construed in accordance with, the laws
        of
        the State of Delaware.

       

      8.9.        Severability

       

      .  The
        invalidity or unenforceability of any particular provision of this Agreement
        shall be construed in all respects as if such invalid or unenforceable
        provisions were omitted.

       

      8.10.  Gender

       

      .  As
        used in this Agreement, the masculine gender shall include the feminine and
        the
        neuter, and vice versa.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      CERTIFICATION

       

      The
        undersigned agree, acknowledge and certify that the foregoing document
        constitutes the Operating Agreement adopted by the Members of the Company
        as of
        the date of this Agreement.

       

      STRATUS
        SERVICES GROUP,
        INC.

       

      

       

      By:  /s/
        Michael A.
        Maltzman                                                    

      Name:
        Michael A. Maltzman

      Title:
        Executive Vice President &
CFO

       

      TRANSWORLD ASSETS,
        LLC

      By:
        STRATUS SERVICES GROUP, INC., Manager

                                   

       

      By:
        /s/Michael A.
        Maltzman

      Name:
        Michael A. Maltzman

      Title:
        Executive Vice President &
CFO

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      OPERATING
        AGREEMENT

       

      SIGNATURE
        PAGE FOR TRANSWORLD ASSETS, LLC.

       

      CLASS
        A
        UNITHOLDER

       

      NAME
        OF
        CLASS A
        UNITHOLDER:                                                                                                                                          

       

      ADDRESS:                                                                

       

      

       

      TELEPHONE
        NO.                                                                (     )                                                                           

       

      *NAME
        OF
        TRUSTEE:                                                                

       

      

       

      *NAME
        OF
        PLAN
        SPONSOR:                                                                                                                                          

       

      *ADDRESS
        OF PLAN
        SPONSOR:                                                                                                                                          

       

      

       

      TAX
        ID
        (EIN)
        NO.:                                                                

       

      CAPITAL
        CONTRIBUTION:                                                                

       

      SIGNATURE
        OF THE CLASS A UNITHOLDER

       

                                                                      By:

                                                                      Name:

                                                                      Title:

       

      

       

      

       

      *If
        applicable.

       

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        A

       

      Capital
        Contribution and Units

       

      
        	
                 

                Member

              	
                Capital

                Contributions

              	
                Class
                  A

                Units

              	
                Class
                  B

                Units

              	
                Class
                  C

                Units

              
	
                Stratus
                  Services Group, Inc.

              	
                $100,000*

              	
                ----

              	
                51

              	
                ----

              
	
                Transworld
                  Holding, Inc.

              	
                $---------

              	
                ----

              	
                ----

              	
                9

              

      

      *Represents
        agreed upon value of 1,000,000 shares of Stratus Services Group, Inc. common
        stock which have been contributed to the Company and an aggregate 1,000,000
        shares of Stratus Services Group, Inc. common stock issued by Stratus Services
        Group at the request of the Company to investors (which shares shall be deemed
        to have been contributed to the Company by Stratus Services Group, Inc. and
        distributed by the Company to the other Members).Exhibit
4.1

 

 

 

 

INDENTURE

 

Dated as of February 14, 2007

 

Among

 

PGS SOLUTIONS, INC.,

 

THE GUARANTORS NAMED ON THE SIGNATURE PAGES HERETO

 

and

 

THE BANK OF NEW YORK,

as Trustee

 

95/8% SENIOR SUBORDINATED NOTES DUE 2015

 

 

 

 

CROSS-REFERENCE TABLE*

 

	
  Trust
  Indenture Act Section

  	
   

  	
  Indenture Section

  
	
  310

  	
  (a)(1)

  	
  7.10

  
	
   

  	
  (a)(2)

  	
  7.10

  
	
   

  	
  (a)(3)

  	
  N.A.

  
	
   

  	
  (a)(4)

  	
  N.A.

  
	
   

  	
  (a)(5)

  	
  7.10

  
	
   

  	
  (b)

  	
  7.10

  
	
   

  	
  (c)

  	
  N.A.

  
	
  311

  	
  (a)

  	
  7.11

  
	
   

  	
  (b)

  	
  7.11

  
	
   

  	
  (c)

  	
  N.A.

  
	
  312

  	
  (a)

  	
  2.05

  
	
   

  	
  (b)

  	
  12.03

  
	
   

  	
  (c)

  	
  12.03

  
	
  313

  	
  (a)

  	
  7.06

  
	
   

  	
  (b)(1)

  	
  N.A.

  
	
   

  	
  (b)(2)

  	
  7.06; 7.07

  
	
   

  	
  (c)

  	
  7.06; 12.02

  
	
   

  	
  (d)

  	
  7.06

  
	
  314

  	
  (a)

  	
  4.03; 12.02; 12.05

  
	
   

  	
  (b)

  	
  N.A.

  
	
   

  	
  (c)(1)

  	
  12.04

  
	
   

  	
  (c)(2)

  	
  12.04

  
	
   

  	
  (c)(3)

  	
  N.A.

  
	
   

  	
  (d)

  	
  N.A.

  
	
   

  	
  (e)

  	
  12.05

  
	
   

  	
  (f)

  	
  N.A.

  
	
  315

  	
  (a)

  	
  7.01

  
	
   

  	
  (b)

  	
  7.05; 12.02

  
	
   

  	
  (c)

  	
  7.01

  
	
   

  	
  (d)

  	
  7.01

  
	
   

  	
  (e)

  	
  6.14

  
	
  316

  	
  (a)(last sentence)

  	
  2.09

  
	
   

  	
  (a)(1)(A)

  	
  6.05

  
	
   

  	
  (a)(1)(B)

  	
  6.04

  
	
   

  	
  (a)(2)

  	
  N.A.

  
	
   

  	
  (b)

  	
  6.07

  
	
   

  	
  (c)

  	
  2.12; 9.04

  
	
  317

  	
  (a)(1)

  	
  6.08

  
	
   

  	
  (a)(2)

  	
  6.12

  
	
   

  	
  (b)

  	
  2.04

  
	
  318

  	
  (a)

  	
  12.01

  
	
   

  	
  (b)

  	
  N.A.

  
	
   

  	
  (c)

  	
  12.01

  
				

 

N.A.
means not applicable.

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

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1

  	
   

  
	
   

  	
   

  	
   

  
	
  DEFINITIONS AND INCORPORATION BY REFERENCE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.01

  	
  Definitions

  	
  1

  
	
  Section 1.02

  	
  Other Definitions

  	
  23

  
	
  Section 1.03

  	
  Incorporation by Reference of Trust Indenture Act

  	
  24

  
	
  Section 1.04

  	
  Rules of Construction

  	
  25

  
	
  Section 1.05

  	
  Acts of Holders

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
   

  
	
   

  	
   

  	
   

  
	
  THE NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.01

  	
  Form and Dating; Terms

  	
  26

  
	
  Section 2.02

  	
  Execution and Authentication

  	
  28

  
	
  Section 2.03

  	
  Registrar and Paying Agent

  	
  28

  
	
  Section 2.04

  	
  Paying Agent to Hold Money in Trust

  	
  28

  
	
  Section 2.05

  	
  Holder Lists

  	
  29

  
	
  Section 2.06

  	
  Transfer and Exchange

  	
  29

  
	
  Section 2.07

  	
  Replacement Notes

  	
  40

  
	
  Section 2.08

  	
  Outstanding Notes

  	
  41

  
	
  Section 2.09

  	
  Treasury Notes

  	
  41

  
	
  Section 2.10

  	
  Temporary Notes

  	
  41

  
	
  Section 2.11

  	
  Cancellation

  	
  41

  
	
  Section 2.12

  	
  Defaulted Interest

  	
  42

  
	
  Section 2.13

  	
  CUSIP Numbers

  	
  42

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
   

  
	
   

  	
   

  	
   

  
	
  REDEMPTION

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.01

  	
  Notices to Trustee

  	
  42

  
	
  Section 3.02

  	
  Selection of Notes to Be Redeemed or Purchased

  	
  43

  
	
  Section 3.03

  	
  Notice of Redemption or Repurchase

  	
  43

  
	
  Section 3.04

  	
  Effect of Notice of Redemption

  	
  44

  
	
  Section 3.05

  	
  Deposit of Redemption or Purchase Price

  	
  44

  
	
  Section 3.06

  	
  Notes Redeemed or Purchased in Part

  	
  45

  
	
  Section 3.07

  	
  Optional Redemption

  	
  45

  
	
  Section 3.08

  	
  Mandatory Redemption

  	
  46

  
	
  Section 3.09

  	
  Offers to Repurchase by Application of Excess Proceeds

  	
  46

  

 

i

 

	
  ARTICLE 4

  	
   

  
	
   

  	
   

  	
   

  
	
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.01

  	
  Payment of Notes

  	
  47

  
	
  Section 4.02

  	
  Maintenance of Office or Agency

  	
  48

  
	
  Section 4.03

  	
  Reports

  	
  48

  
	
  Section 4.04

  	
  Compliance Certificate

  	
  49

  
	
  Section 4.05

  	
  Taxes

  	
  50

  
	
  Section 4.06

  	
  Stay, Extension and Usury Laws

  	
  50

  
	
  Section 4.07

  	
  Restricted Payments

  	
  50

  
	
  Section 4.08

  	
  Dividend and Other Payment Restrictions Affecting Restricted
  Subsidiaries

  	
  54

  
	
  Section 4.09

  	
  Limitation on Incurrence of Indebtedness

  	
  56

  
	
  Section 4.10

  	
  Asset Sales

  	
  59

  
	
  Section 4.11

  	
  Transactions with Affiliates

  	
  60

  
	
  Section 4.12

  	
  Liens

  	
  62

  
	
  Section 4.13

  	
  Corporate Existence

  	
  62

  
	
  Section 4.14

  	
  Offer to Repurchase upon Change of Control

  	
  62

  
	
  Section 4.15

  	
  Limitation on Senior Subordinated Debt

  	
  64

  
	
  Section 4.16

  	
  Business Activities

  	
  64

  
	
  Section 4.17

  	
  Payments for Consent

  	
  64

  
	
  Section 4.18

  	
  Subsidiary Guarantees

  	
  65

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
   

  
	
   

  	
   

  	
   

  
	
  SUCCESSORS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.01

  	
  Merger, Consolidation or Sale of All or Substantially All Assets

  	
  65

  
	
  Section 5.02

  	
  Successor Corporation Substituted

  	
  66

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
   

  
	
   

  	
   

  	
   

  
	
  DEFAULTS AND REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.01

  	
  Events of Default

  	
  67

  
	
  Section 6.02

  	
  Acceleration

  	
  68

  
	
  Section 6.03

  	
  Other Remedies

  	
  69

  
	
  Section 6.04

  	
  Waiver of Past Defaults

  	
  69

  
	
  Section 6.05

  	
  Control by Majority

  	
  69

  
	
  Section 6.06

  	
  Limitation on Suits

  	
  69

  
	
  Section 6.07

  	
  Rights of Holders of Notes to Receive Payment

  	
  70

  
	
  Section 6.08

  	
  Collection Suit by Trustee

  	
  70

  
	
  Section 6.09

  	
  Restoration of Rights and Remedies

  	
  70

  
	
  Section 6.10

  	
  Rights and Remedies Cumulative

  	
  70

  
	
  Section 6.11

  	
  Delay or Omission Not Waiver

  	
  70

  
	
  Section 6.12

  	
  Trustee May File Proofs of Claim

  	
  71

  
	
  Section 6.13

  	
  Priorities

  	
  71

  
	
  Section 6.14

  	
  Undertaking for Costs

  	
  71

  

 

ii

 

	
  ARTICLE 7

  	
   

  
	
   

  	
   

  	
   

  
	
  TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.01

  	
  Duties of Trustee

  	
  72

  
	
  Section 7.02

  	
  Rights of Trustee

  	
  73

  
	
  Section 7.03

  	
  Individual Rights of Trustee

  	
  74

  
	
  Section 7.04

  	
  Trustee’s Disclaimer

  	
  74

  
	
  Section 7.05

  	
  Notice of Defaults

  	
  74

  
	
  Section 7.06

  	
  Reports by Trustee to Holders of the Notes

  	
  74

  
	
  Section 7.07

  	
  Compensation and Indemnity

  	
  75

  
	
  Section 7.08

  	
  Replacement of Trustee

  	
  75

  
	
  Section 7.09

  	
  Successor Trustee by Merger, etc

  	
  76

  
	
  Section 7.10

  	
  Eligibility; Disqualification

  	
  76

  
	
  Section 7.11

  	
  Preferential Collection of Claims Against Company

  	
  77

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
   

  
	
   

  	
   

  	
   

  
	
  LEGAL DEFEASANCE AND COVENANT DEFEASANCE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.01

  	
  Option to Effect Legal Defeasance or Covenant Defeasance

  	
  77

  
	
  Section 8.02

  	
  Legal Defeasance and Discharge

  	
  77

  
	
  Section 8.03

  	
  Covenant Defeasance

  	
  78

  
	
  Section 8.04

  	
  Conditions to Legal or Covenant Defeasance

  	
  78

  
	
  Section 8.05

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

  	
  79

  
	
  Section 8.06

  	
  Repayment to Company

  	
  80

  
	
  Section 8.07

  	
  Reinstatement

  	
  80

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
   

  
	
   

  	
   

  	
   

  
	
  AMENDMENT, SUPPLEMENT AND WAIVER

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.01

  	
  Without Consent of Holders of Notes

  	
  80

  
	
  Section 9.02

  	
  With Consent of Holders of Notes

  	
  81

  
	
  Section 9.03

  	
  Compliance with Trust Indenture Act

  	
  83

  
	
  Section 9.04

  	
  Revocation and Effect of Consents

  	
  83

  
	
  Section 9.05

  	
  Notation on or Exchange of Notes

  	
  83

  
	
  Section 9.06

  	
  Trustee to Sign Amendments, etc

  	
  83

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
   

  
	
   

  	
   

  	
   

  
	
  GUARANTEES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.01

  	
  Guarantee

  	
  84

  
	
  Section 10.02

  	
  Subordination of Guarantor Payments

  	
  85

  
	
  Section 10.03

  	
  Limitation on Guarantor Liability

  	
  85

  
	
  Section 10.04

  	
  Execution and Delivery

  	
  86

  
	
  Section 10.05

  	
  Subrogation

  	
  86

  
	
  Section 10.06

  	
  Benefits Acknowledged

  	
  86

  
	
  Section 10.07

  	
  Release of Guarantees

  	
  87

  

 

iii

 

	
  ARTICLE 11

  	
   

  
	
   

  	
   

  	
   

  
	
  SATISFACTION AND DISCHARGE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.01

  	
  Satisfaction and Discharge

  	
  87

  
	
  Section 11.02

  	
  Application of Trust Money

  	
  88

  
	
  Section 11.03

  	
  Repayment to the Company

  	
  88

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12

  	
   

  
	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 12.01

  	
  Trust Indenture Act Controls

  	
  89

  
	
  Section 12.02

  	
  Notices

  	
  89

  
	
  Section 12.03

  	
  Communication by Holders of Notes with Other Holders of Notes

  	
  90

  
	
  Section 12.04

  	
  Certificate and Opinion as to Conditions Precedent

  	
  90

  
	
  Section 12.05

  	
  Statements Required in Certificate or Opinion

  	
  90

  
	
  Section 12.06

  	
  Rules by Trustee and Agents

  	
  91

  
	
  Section 12.07

  	
  No Personal Liability of Directors, Officers, Employees and
  Stockholders

  	
  91

  
	
  Section 12.08

  	
  Governing Law

  	
  91

  
	
  Section 12.09

  	
  Waiver of Jury Trial

  	
  91

  
	
  Section 12.10

  	
  Force Majeure

  	
  91

  
	
  Section 12.11

  	
  No Adverse Interpretation of Other Agreements

  	
  92

  
	
  Section 12.12

  	
  Successors

  	
  92

  
	
  Section 12.13

  	
  Severability

  	
  92

  
	
  Section 12.14

  	
  Counterpart Originals

  	
  92

  
	
  Section 12.15

  	
  Table of Contents, Headings, etc

  	
  92

  
	
  Section 12.16

  	
  Qualification of Indenture

  	
  92

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13

  	
   

  
	
   

  	
   

  	
   

  
	
  SUBORDINATION OF NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 13.01

  	
  Agreement to Subordinate

  	
  92

  
	
  Section 13.02

  	
  Liquidation; Dissolution; Bankruptcy

  	
  93

  
	
  Section 13.03

  	
  Default on Designated Senior Debt

  	
  93

  
	
  Section 13.04

  	
  Acceleration of Notes

  	
  94

  
	
  Section 13.05

  	
  When Distribution Must Be Paid Over

  	
  94

  
	
  Section 13.06

  	
  Notice by the Company

  	
  94

  
	
  Section 13.07

  	
  Subrogation

  	
  95

  
	
  Section 13.08

  	
  Relative Rights

  	
  95

  
	
  Section 13.09

  	
  Subordination May Not Be Impaired by the Company

  	
  95

  
	
  Section 13.10

  	
  Distribution or Notice to Representative

  	
  95

  
	
  Section 13.11

  	
  Rights of Trustee and Paying Agent

  	
  95

  
	
  Section 13.12

  	
  Authorization to Effect Subordination

  	
  96

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  Form of Note

  	
   

  
	
  Exhibit B

  	
  Form of Certificate of Transfer

  	
   

  

 

iv

 

	
  Exhibit C

  	
  Form of Certificate of Exchange

  	
   

  
	
  Exhibit D

  	
  Form of Guarantee

  	
   

  

 

v

 

INDENTURE, dated as of February 14,
2007, among PGS Solutions, Inc., a Delaware corporation (the “Company”),
the Guarantors (as defined herein) listed on the signature pages hereto
and The Bank of New York, a New York banking corporation, as Trustee.

 

W  I  T  N  E  S  S
E  T  H :

 

WHEREAS, the Company has
duly authorized the creation of an issue of $190,000,000 aggregate principal
amount of 9 5/8% Senior Subordinated Notes due 2015
(the “Initial Notes”);

 

WHEREAS, each of the Company
and each of the Guarantors has duly authorized the execution and delivery of
this Indenture.

 

NOW, THEREFORE, the Company,
the Guarantors and the Trustee agree as follows for the benefit of each other
and for the equal and ratable benefit of the Holders of the Notes.

 

ARTICLE 1

 

DEFINITIONS AND INCORPORATION
BY REFERENCE

 

Section 1.01                                Definitions.

 

“144A Global Note”
means a Global Note substantially in the form of Exhibit A hereto,
as the case may be, bearing the Global Note Legend and the Private Placement
Legend and deposited with or on behalf of, and registered in the name of, the
Depositary or its nominee that will be issued in a denomination equal to the
outstanding principal amount of the Notes sold in reliance on Rule 144A.

 

“Acquired Debt”
means, with respect to any specified Person, (i) Indebtedness of any other
Person existing at the time such other Person is merged with or into or becomes
a Subsidiary of such specified Person, including, without limitation,
Indebtedness incurred in connection with, or in contemplation of, such other
Person merging with or into or becoming a Subsidiary of such specified Person,
and (ii) Indebtedness secured by a Lien encumbering any asset acquired by
such specified Person.

 

“Acquisition” means
the acquisition directly or indirectly by PGS Holding Corp. of Pearson
Government Solutions, Inc. and the Transactions relating thereto.

 

“Additional Interest”
means all additional interest then owing, if any, pursuant to the Registration
Rights Agreement.

 

“Additional Notes”
means additional Notes (other than the Initial Notes and other than Exchange
Notes for such Initial Notes issued pursuant to Sections 2.06, 2.07, 2.10 and
3.06) issued from time to time under this Indenture in accordance with Sections 2.01,
2.02 and 4.09 hereof.

 

“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; provided that beneficial
ownership of 10% or more of the Voting Stock of a Person shall be deemed to be
control.

 

 

“Agent” means any
Registrar or Paying Agent.

 

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

 

(i)            1.0%
of the principal amount of the Note; or

 

(ii)           the
excess of:

 

(a)           the present value at such redemption
date of (x) the redemption price of the Note at February 15, 2011
(such redemption price being set forth in Section 3.07 hereof) plus
(y) all required interest payments due on the Note through February 15,
2011 (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, if
greater.

 

“Applicable Procedures”
means, with respect to any transfer, redemption or exchange of or for
beneficial interests in any Global Note, the rules and procedures of the
Depositary, Euroclear and/or Clearstream that apply to such transfer,
redemption or exchange.

 

“Asset Acquisition”
means, with respect to any Person, (i) an Investment by such Person or any
Restricted Subsidiary of such Person in any third Person pursuant to which such
third Person shall become a Restricted Subsidiary of such Person or any
Restricted Subsidiary of such Person, or shall be merged with or into such
Person or any Restricted Subsidiary of such Person, or (ii) the acquisition
by such Person or any Restricted Subsidiary of such Person of the assets of any
third Person (other than a Restricted Subsidiary of such Person) which
constitute all or substantially all of the assets of such third Person or comprises
any division or line of business of such third Person or any other properties
or assets of such third Person other than in the ordinary course of business.

 

“Asset Sale” means (i) the
sale, lease, conveyance or other disposition of any assets or rights
(including, without limitation, by way of a sale and leaseback), in each case
in the ordinary course of business (provided
that the sale, lease, conveyance or other disposition of all or substantially
all of the assets of the Company and its Subsidiaries taken as a whole will be
governed by Sections 4.14 and/or 5.01 and not by Section 4.10); and (ii) the
issue or the sale by the Company or any of its Subsidiaries of Equity Interests
in any of the Company’s Restricted Subsidiaries other than director’s
qualifying shares or shares required by applicable law to be held by a Person
other than the Company or a Restricted Subsidiary, in the case of either
clause (i) or (ii), whether in a single transaction or a series of
related transactions (a) that have a fair market value in excess of
$2.5 million or (b) for net proceeds in excess of
$2.5 million.  Notwithstanding the
foregoing, the following items shall not be deemed to be Asset Sales:  (i) a transfer, sale or other
disposition of assets by the Company to a Restricted Subsidiary or by a
Restricted Subsidiary to the Company or to another Restricted Subsidiary; (ii) an
issuance, sale, transfer or other disposition of Equity Interests by a
Restricted Subsidiary to the Company or to another Restricted Subsidiary; (iii) a
Restricted Payment that is permitted by Section 4.07 or the definition of
Permitted Investment; (iv) any sale, lease, sublease or other disposition
of assets that are no longer used, or are damaged, worn-out or obsolete, by the
Company or any of its Restricted Subsidiaries; (v) issuance of Equity
Interests by a Restricted Subsidiary of the Company in which the Company’s
percentage interest (direct and indirect) in the Equity Interests of such
Restricted Subsidiary, after giving effect to such issuance, is at least equal
to its percentage interest prior thereto; (vi) the sale or other
disposition of Cash Equivalents or Marketable Securities; (vii) the sale,
lease, sublease, license, sublicense or consignment of accounts receivable,
equipment,

 

2

 

inventory, real property, or
other assets in the ordinary course of business, including leases or subleases
with respect to facilities which are temporarily not in use or pending their
disposition; (viii) trade or exchange of assets of equivalent fair market
value; (ix) the licensing of intellectual property or other general
intangibles to third Persons on customary terms as determined by the Board of
Directors in good faith; (x) the good faith surrender or waiver of
contract rights or the settlement, release or surrender of claims of any kind;
and (xi) the sale or other disposal of property or assets pursuant to the
exercise of any remedies pursuant to the Credit Facilities or the other
security documents relating to any Indebtedness permitted under this Indenture.

 

“Attributable Debt”
in respect of a sale and leaseback transaction means, at the time of
determination, the present value (discounted at the rate of interest implicit
in such transaction, determined in accordance with GAAP) of the obligation of
the lessee for net rental payments during the remaining term of the lease
included in such sale and leaseback transaction (including any period for which
such lease has been extended or may, at the option of the lessor, be extended).

 

“Average Market Price”
means, with respect to any Marketable Securities as of any relevant date of
determination the average of the Closing Price per share or other unit of such
Marketable Securities for the period of five full Trading Days ending on and
including the third full Trading Day prior to such relevant date of
determination (appropriately adjusted to reflect the effect of any stock
splits, reverse splits, stock dividends and any other similar events affecting
such security).

 

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

 

“Board of Directors”
means (i) with respect to a corporation, the board of directors of the
corporation or any committee thereof duly authorized to act on behalf of such
board, (ii) with respect to a partnership, the Board of Directors of the
general partner of the partnership, (iii) with respect to a limited
liability company, the managing member or members or any controlling committee
or board of directors of the sole member or of the managing member thereof and (iv) with
respect to any other Person, the board or committee of such Person serving a
similar function.

 

“Broker-Dealer” has
the meaning set forth in the Registration Rights Agreement.

 

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

 

“Capital Interests”
means (i) in the case of a corporation, corporate stock, (ii) in the
case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate
stock, (iii) in the case of a partnership
or limited liability company, partnership or membership interests (whether
general or limited) and (iv) 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 (other than earn-outs or
similar consideration payable in connection with an acquisition).

 

“Capital 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 on a balance sheet in accordance with GAAP.

 

“Cash Equivalents”
means:

 

(i)            United
States dollars;

 

3

 

(ii)           securities
issued or directly and fully guaranteed or insured by the United States
government or any agency or instrumentality thereof (provided that the
full faith and credit of the United States of America is pledged in support thereof)
having maturities of not more than twelve months from the date of acquisition;

 

(iii)          certificates
of deposit and eurodollar time deposits with maturities of six months or less
from the date of acquisition, bankers’ acceptances with maturities not
exceeding six months and overnight bank deposits, in each case with any lender
party to the New Credit Facility or with any commercial bank organized under
the laws of the United States of America or any state thereof or the District
of Columbia or any foreign country recognized by the United States of America
having capital and surplus, at the time of acquisition thereof, in excess of
$500 million (or foreign currency equivalent thereof) and a Thompson Bank
Watch Rating of “B” or better;

 

(iv)          repurchase
obligations with a term of not more than seven days for underlying securities
of the types described in clauses (ii) and (iii) above entered into
with any financial institution meeting the qualifications specified in
clause (iii) above;

 

(v)           commercial
paper having at the time of acquisition one of the two highest ratings
obtainable from Moody’s Investors Service, Inc. or Standard &
Poor’s Rating Services, Inc. and in each case maturing within nine months
after the date of acquisition;

 

(vi)          securities
issued by any state of the United States of America or any political
subdivision of any such state or any public instrumentality thereof maturing
within one year from the date of acquisition thereof and, at the time of
acquisition thereof, having one of the two highest ratings obtainable from
either Standard & Poor’s Rating Services, Inc. or Moody’s
Investors Service, Inc.;

 

(vii)         investments
by Restricted Subsidiaries in local currencies in instruments issued by or with
entities in jurisdictions outside of the United States of America having
correlative attributes to the foregoing; and

 

(viii)        money
market funds at least 95% of the assets of which constitute Cash Equivalents of
the kinds described in clauses (i) through (vii) of this definition.

 

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

 

(i)            any
sale, lease, exchange or other transfer (other than a Lien permitted by this
Indenture or by way of consolidation or merger), in one transaction 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 or group of
related Persons for purposes of Section 13(d) of the Exchange Act (a “Group”),
other than in all such cases to one or more Permitted Holders;

 

(ii)           the
approval by the holders of Capital Interests of the Company of any plan for the
liquidation or dissolution of the Company;

 

(iii)          any
Person or Group (other than the Permitted Holders and any entity formed for the
purpose of owning Capital Interests of Parent or any direct or indirect parent
of Parent) shall become the owner, directly or indirectly, beneficially or of
record, of shares representing more than 50% of the aggregate ordinary voting
power represented by the issued and outstanding Capital Interests of the
Company; or

 

4

 

(iv)          the
replacement over a two-year period of a majority of the Board of Directors of
Parent (or if Parent has been liquidated or dissolved, the Company) who
constituted the Board of Directors of Parent or the Company, as the case may
be, at the beginning of such period, and such replacement shall not have been
approved by a vote of at least a majority of the Continuing Directors.

 

“Clearstream” means
Clearstream Banking Société Anonyme and any successor thereto.

 

“Code” means the
Internal Revenue Code of 1986, as amended.

 

“Company Order” means
a written request or order signed on behalf of the Company by an Officer of the
Company, who must be the principal executive officer, the principal financial
officer, the treasurer or the principal accounting officer of the Company, and
delivered to the Trustee.

 

“Consolidated Cash Flow”
means, with respect to any Person, for any period, the sum (without
duplication) of:

 

(i)            Consolidated
Net Income; and

 

(ii)           to
the extent Consolidated Net Income has been reduced thereby:

 

(a)           all taxes based on income, gross
receipts or gross profits of such Person and its Restricted Subsidiaries, paid
or accrued in accordance with GAAP for such period;

 

(b)           the Fixed Charges of such Person and
its Restricted Subsidiaries for such period;

 

(c)           Consolidated Non-Cash Charges;

 

(d)           any Management Fees paid by the
Company and its Restricted Subsidiaries in such period;

 

(e)           all transaction, restructuring and transition
costs and expenses (including, without limitation, any retention bonuses paid
to employees) incurred during such period in connection with any Asset
Acquisition and any severance payments made to former employees in an aggregate
amount not to exceed five percent of the total enterprise value of such Asset
Acquisition; and

 

(f)            all expenses and costs incurred and
all other payments made or losses incurred in connection with the TSA
Government Investigation and the negotiation of any related settlement with respect
thereto;

 

all as
determined on a consolidated basis for such Person and its Restricted
Subsidiaries in accordance with GAAP.

 

“Consolidated Interest
Expense” means, with respect to any Person for any period, the sum of,
without duplication, the aggregate interest expense of such Person and its Restricted
Subsidiaries for such period, whether paid or accrued and whether or not
capitalized (including, without limitation, amortization of debt issuance costs
and original issue discount, write-off of deferred financing cost, non-cash
interest payments, the interest component of any deferred payment obligations,
the interest component

 

5

 

of all payments associated
with Capital Lease Obligations (paid or accrued), imputed interest with respect
to Attributable Debt, commissions, discounts and other fees and charges
incurred in respect of letter of credit or bankers’ acceptance financings, and
net payments (if any) pursuant to Hedging Obligations (including fees and
premiums)), to the extent that any such expense was deducted in computing such
Consolidated Net Income on a consolidated basis for such Person and its
Restricted Subsidiaries and determined in accordance with GAAP.

 

“Consolidated Net Income”
means, with respect to any Person, for any period, the aggregate net income (or
loss) of such Person and its
Restricted Subsidiaries for such period on a consolidated basis, determined in
accordance with GAAP, provided
that there shall be excluded therefrom (without duplication):

 

(i)            gains
or losses realized in connection with (a) any Asset Sales (without regard
to the $2,500,000 limitation set forth in the definition thereof) or (b) other
dispositions, abandonments or reserves relating thereto or the extinguishment
of any Indebtedness, in each case, together with any related provision for
taxes on such gains or losses;

 

(ii)           extraordinary
gains and extraordinary losses, together with any related provision for taxes
on such extraordinary gains or extraordinary losses;

 

(iii)          the
net income or loss of any Person for any period prior to the date it becomes a
Restricted Subsidiary of the referent Person or is merged or consolidated with
the referent Person or any Restricted Subsidiary of the referent Person;

 

(iv)          solely
for purpose of calculating Consolidated Net Income to determine the amount of
Restricted Payments permitted under Section 4.07, the net income of any
Restricted Subsidiary of the Company to the extent that the declaration of
dividends or similar distributions by that Restricted Subsidiary of that income
is restricted by a contract, operation of law or otherwise, except to the
extent that such net income is actually, or permitted to be, paid to the
Company or a Restricted Subsidiary thereof by loans, advances, intercompany
transfers, principal repayments or otherwise; provided that the net loss of such Restricted Subsidiary
shall not be excluded to the extent the Company is required to make an
Investment in such Restricted Subsidiary in an amount equal to such loss;

 

(v)           all
gains realized on or because of the purchase or other acquisition by the Company
or any of its Restricted Subsidiaries of any securities of such Person or any
of its Restricted Subsidiaries;

 

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

 

(vii)         any
gain or loss due solely to fluctuations in currency values and the related tax
effects in accordance with GAAP;

 

(viii)        any
non-cash expenses or charges resulting from employee benefit or management
compensation plans or the grant, issuance or repricing of stock, stock options
or other equity-based awards (including any such expenses or charges of a
direct or indirect parent of the Company to the extent such expenses and
charges relate to benefits for members of the Board of Directors of the Company
(in their capacity as such) or employees of the Company and its Restricted
Subsidiaries);

 

(ix)           unrealized
non-cash gains or losses in respect of Hedging Obligations;

 

6

 

(x)            any
amortization of the consideration paid for any non-competition agreements or
arrangements entered into in connection with the Transactions;

 

(xi)           any
goodwill impairment charges;

 

(xii)          the
net income of any Person that is not a Restricted Subsidiary of the referent
Person, except to the extent of cash dividends or distributions paid to the
referent Person or to a Restricted Subsidiary of the referent Person by such
Person;

 

(xiii)         any
restoration to income of any contingency reserve, except to the extent that
provision for such reserve was made out of Consolidated Net Income accrued at
any time following the Issue Date;

 

(xiv)        income
or loss attributable to discontinued operations (including, without limitation,
operations disposed of during such period whether or not such operations were
classified as discontinued);

 

(xv)         all
transaction, restructuring and transition costs and expenses (including,
without limitation, any retention bonuses paid to employees) incurred during
such period in connection with the Acquisition;

 

(xvi)        in
the case of a successor to the referent Person by consolidation or merger or as
a transferee of the referent Person’s assets, any earnings of the successor
corporation prior to such consolidation, merger or transfer of assets; and

 

(xvii)       any
non-cash charges from the application of the purchase method of accounting in
connection with the Acquisition or any future acquisition.

 

In addition,
Consolidated Net Income shall be reduced (to the extent not otherwise deducted
in the provision for income taxes for such period) by the amount of any payment
during such period pursuant to clause (ii) of the definition of “Permitted
Payments to Parent.”

 

“Consolidated Non-Cash
Charges” means, with respect to any Person and its Restricted Subsidiaries,
for any period, depreciation, amortization (including amortization of goodwill
and other intangibles but excluding amortization of prepaid cash expenses that
were paid in a prior period) and other non-cash expenses (excluding any such
non-cash expense to the extent that it represents an accrual of or reserve for
cash expenses in any future period or amortization of a prepaid cash expense
that was paid in a prior period) of any Person and its Subsidiaries for such
period to the extent that such depreciation, amortization and other non-cash expenses
were deducted in computing such Consolidated Net Income, minus non-cash items
increasing such Consolidated Net Income for such period (other than accruals of
revenue in the ordinary course of business and reversals in such period of an
accrual of, or reserve for, a cash expense in a prior period, to the extent
such accrual or reserve did not increase Consolidated Cash Flow in a prior
period) on a consolidated basis for such Person and its Restricted Subsidiaries
and determined in accordance with GAAP.

 

“Continuing Directors”
means, as of any date of determination, any member of the Board of Directors of
the Company who (i) was a member of such Board of Directors on the date of
this Indenture, (ii) was nominated for election or elected to such Board
of Directors with the approval of a majority of the Continuing Directors who
were members of such Board of Directors at the time of such nomination or
election, or (iii) was nominated for election to such Board of Directors
by a Permitted Holder.

 

7

 

“Corporate Trust Office
of the Trustee”  means the principal
office of the Trustee at which at any time its corporate trust business shall
be administered, which office at the date hereof is located at 101 Barclay
Street, Floor 8 West, New York, New York 10286, Attention:  Corporate Trust Administration, or such other
address as the Trustee may designate from time to time by notice to the Holders
and the Company, or the principal corporate trust office of any successor
Trustee (or such other address as such successor Trustee may designate from
time to time by written notice to the Holders and the Company).

 

“Credit Facilities”
means one or more debt facilities (including, without limitation, the New
Credit Facility) or commercial paper facilities or indentures with banks or
other lenders or a trustee 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 such
receivables), issuance of notes or letters of credit, in each case, as amended,
restated, modified, substituted, renewed, refunded, replaced (whether upon
termination or otherwise) or refinanced (including by means of sales of debt
securities to institutional investors) in whole or in part from time to time.

 

“Custodian” means the
Trustee, as custodian with respect to the Notes issuable or issued in whole or
in part in global form, or any successor entity thereto appointed as a
custodian hereunder and having become such pursuant to the applicable
provisions of this Indenture.

 

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

 

“Definitive Note”
means a certificated Note registered in the name of the Holder thereof and
issued in accordance with Section 2.06(c) hereof, substantially in
the form of Exhibit A hereto, as the case may be, except that such
Note shall not bear the Global Note Legend and shall not have the “Schedule of
Exchanges of Interests in the Global Note” attached thereto.

 

“Depositary” means,
with respect to the Notes issuable or issued in whole or in part in global
form, the Person specified in Section 2.03 hereof as the Depositary with
respect to such Notes, its nominees and any and all successors thereto
appointed as Depositary hereunder and having become such pursuant to the applicable
provisions of this Indenture.

 

“Designated Senior Debt”
means:

 

(i)            any Indebtedness outstanding under
the New Credit Facility; and

 

(ii)           any other Senior Debt, including
under the Credit Facilities, 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 Debt.”

 

“Disqualified Interests”
means any Capital Interests that, by its terms (or by the terms of any security
into which it is convertible, or for which it is exchangeable, at the option of
the holder thereof), or upon the happening of any event (other than an event
that would constitute a Change of Control), matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable
at the sole option of the holder thereof (except in each case, upon the
occurrence of a Change of Control or to the extent such Capital Interest is
only redeemable or exchangeable into Qualified Capital Interests), in whole or
in part, on or prior to the date on which the Notes mature, for cash or is convertible
into or exchangeable for debt securities of the Company or its Subsidiaries at
any time prior to such date; provided,  however,
that any Capital Interests that would constitute Disqualified Interests solely
because the holders thereof have the right to require the Company to repurchase
or redeem such Capital Interests

 

8

 

upon the occurrence of a Change of Control or an
Asset Sale shall not constitute Disqualified Interests if the terms of such
Capital Interests provide that the Company may not repurchase or redeem any
such Capital Interests pursuant to such provisions unless such repurchase or
redemption complies with Section 4.07.

 

“Domestic Subsidiary”
means any Restricted Subsidiary of the Company that was formed under the laws
of the United States of America or any state of the United States of America or
the District of Columbia.

 

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

 

“Equity Offering”
means any public or private sale of Qualified Capital Interests of the Company
or any direct or indirect parent entity of the Company, provided that, in the event of an
Equity Offering by any direct or indirect parent entity of the Company, such
parent entity contributes to the capital of the Company the portion of the net
cash proceeds of such Equity Offering necessary to pay the aggregate redemption
price (plus accrued interest to the redemption date) of the Notes to be
redeemed pursuant to Section 3.07.

 

“Euroclear” means
Euroclear S.A./N.V., as operator of the Euroclear system and any successor
thereto.

 

“Exchange Act” means
the Securities Exchange Act of 1934, as amended, or any successor statute or
statutes thereto, and the rules and regulations of the SEC promulgated
thereunder.

 

“Exchange Notes”
means the Notes issued in the Exchange Offer pursuant to Section 2.06(f) hereof.

 

“Exchange Offer” has
the meaning set forth in the Registration Rights Agreement.

 

“Exchange Offer
Registration Statement” has the meaning set forth in the Registration
Rights Agreement.

 

“Fixed Charge Coverage
Ratio” means, with respect to any Person, the ratio of total Consolidated
Cash Flow of such Person and its Restricted Subsidiaries during the four
quarter period ending prior to the date of the transaction giving rise to the
need to calculate the Fixed Charge Coverage Ratio for which financial
statements are available (the “FCCR Transaction Date”) to Fixed Charges
of such Person for the four quarter period. 
In addition to and without limitation of the foregoing, for purposes of
this definition, Consolidated Cash Flow and Fixed Charges shall be calculated
after giving effect on a pro forma
basis for the period of such calculation to:

 

(i)            the
incurrence, repayment or other discharge of any Indebtedness of such Person or
any of its Restricted Subsidiaries, or the issuance or redemption of any
preferred stock by such Person or any of its Restricted Subsidiaries (in each
case, and the application of the proceeds thereof) giving rise to the need to
make such calculation and any incurrence or repayment of other Indebtedness (or
the issuance or redemption or other repayment of any other preferred stock) by
such Person or any of its Restricted Subsidiaries (in each case, and the
application of the proceeds thereof), other than the incurrence or repayment of
Indebtedness in the ordinary course of business for working capital purposes
pursuant to working capital facilities, occurring during the four quarter
period or at any time subsequent to the last day of the four quarter period and
on or prior 

 

9

 

to the FCCR Transaction Date,
as if such incurrence or repayment, as the case may be (and the application of
the proceeds thereof), occurred on the first day of the Four Quarter Period;

 

(ii)           any
asset sales or other dispositions or any acquisitions (including the
Acquisition and any other Asset Acquisitions) occurring during the four quarter
period or at any time subsequent to the last day of the four quarter period and
on or prior to the FCCR Transaction Date (including, without limitation, any
acquisition giving rise to the need to make such calculation as a result of
such Person or one of its Restricted Subsidiaries (including any Person who
becomes a Restricted Subsidiary as a result of any acquisition) incurring,
assuming or otherwise becoming liable for any Indebtedness and also including (a) any
Pro Forma Cost Savings from the Acquisition with respect to the second full
fiscal quarter commencing after the date of this offering and any fiscal
quarter prior thereto, to the extent included in the four quarter period, and (b) any
Consolidated Cash Flow (including any Pro Forma Cost Savings) attributable to
the Person or assets which are the subject of the acquisition or asset sale or
other disposition during the four quarter period or at any time subsequent to
the last day of the four quarter period and on or prior to the FCCR Transaction
Date), in each case as if such asset sale or other disposition or acquisition
(including the incurrence, assumption or liability for any such Indebtedness)
occurred on the first day of the four quarter period;

 

(iii)          the
Fixed Charges attributable to discontinued operations, as determined in
accordance with GAAP, and operations or businesses (and ownership interests
therein) disposed of prior to the FCCR Transaction Date, will be excluded, but
only to the extent that the obligations giving rise to such Fixed Charges will
not be obligations of the specified Person or any of its Restricted Subsidiaries
following the FCCR Transaction Date.

 

In calculating Fixed Charges
attributable to interest on any Indebtedness computed on a pro forma basis: (a) interest on
outstanding Indebtedness determined on a fluctuating basis as of the FCCR
Transaction Date and which will continue to be so determined thereafter shall
be deemed to have accrued at a fixed rate per annum equal to the rate of
interest on such Indebtedness in effect on the FCCR Transaction Date; (b) if
interest on any Indebtedness actually incurred on the FCCR Transaction Date may
optionally be determined at an interest rate based upon a factor of a prime or
similar rate, a eurocurrency interbank offered rate, or other rates, then the
interest rate in effect on the FCCR Transaction Date will be deemed to have
been in effect during the four-quarter period; and (c) notwithstanding
clause (a) above, interest on Indebtedness determined on a
fluctuating basis, to the extent such interest is covered by agreements
relating to interest rate swaps, caps or collars, shall be deemed to accrue at
the rate per annum resulting after giving effect to the operation of such
agreement.

 

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

 

(i)            the
Consolidated Interest Expense of such Person and its Restricted Subsidiaries
for such period to the extent required to be paid in cash, whether paid or
accrued (but, for the purposes of determining the denominator of the Fixed
Charge Coverage Ratio only, excluding any one-time, non-cash charges or
non-cash expenses associated with the write-off of deferred debt issuance costs
relating to Indebtedness that is retired with the proceeds of the notes issued
on the date of this Indenture); and

 

(ii)           the
product of (a) all cash dividend payments on any series of preferred
equity of such Person or any of its Restricted Subsidiaries paid during such
period to any Person other than such Person or any of its Restricted
Subsidiaries times (b) a fraction, the numerator of which is one and the
denominator of which is one minus the then current combined federal, state and
local 

 

10

 

statutory tax rate of such Person, expressed as a decimal, in each
case, on a consolidated basis and in accordance with GAAP.

 

“Foreign Subsidiaries”
means any Subsidiary of the Company that is not a Domestic Subsidiary.

 

“GAAP” means
generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or in such other statements by such other entity as
have been approved by a significant segment of the accounting profession, as in
effect from time to time.

 

“Global Note Legend”
means the legend set forth in Section 2.06(g)(ii) hereof, which is required to be
placed on all Global Notes issued under this Indenture.

 

“Global Notes” means,
individually and collectively, each of the Restricted Global Notes and the
Unrestricted Global Notes, substantially in the form of Exhibit A
hereto issued in accordance with Section 2.01, 2.06(b), 2.06(d) or
2.06(f) hereof.

 

“Government Securities”
means securities that are direct obligations (or certificates representing an
ownership interest in such obligations) of, or obligations guaranteed by, the
United States of America (including any agency or instrumentality thereof), and
the payment for which the United States of America pledges its full faith and
credit.

 

“Guarantee” means a
guarantee (other than by endorsement of negotiable instruments for collection
in the ordinary course of business), direct or indirect, in any manner
(including, without limitation, by way of a pledge of assets or through letters
of credit or reimbursement agreements in respect thereof), of all or any part
of any Indebtedness.

 

“Guarantors” means
each of (i) Blueprint Technologies, Inc., a Virginia corporation and
Pearson Analytical Solutions, Inc., a Virginia corporation; and (ii) any
other Domestic Subsidiary of the Company or of any co-issuer or co-obligor of
the Notes that executes a Guarantee in accordance with the provisions of this
Indenture, and their respective successors and assigns, in each case, until the
Guarantee of such Person has been released in accordance with the provisions of
this Indenture.

 

“Hedging Obligations”
means, with respect to any specified Person, the obligations of such Person
under (i) interest rate swap agreements, interest rate cap agreements,
interest rate collar agreements and other agreements or arrangements designed
for the purpose of fixing, hedging or swapping interest rate risk; (ii) commodity
swap agreements, commodity option agreements, forward contracts and other
agreements or arrangements designed for the purpose of fixing, hedging or
swapping commodity price risk; and (iii) foreign exchange contracts,
currency swap agreements and other agreements or arrangements designed for the
purpose of fixing, hedging or swapping foreign currency exchange rate risk.

 

“Heirs” of any
individual mean such individual’s estate, spouse, lineal relatives (including adoptive
descendants), administrator, committee or other personal representative or
other estate planning vehicle and any custodian or trustee for the benefit of
any spouse or lineal relatives (including adoptive descendants) of such individual.

 

“Holders” means a
Person in whose name a Note is registered.

 

11

 

“Indebtedness” means,
with respect to any Person, any indebtedness of such Person, whether or not
contingent, in respect of borrowed money or evidenced by bonds, notes,
debentures or similar instruments or letters of credit (or reimbursement
agreements in respect thereof but excluding Obligations with respect to letters
of credit (including trade letters of credit) to the extent such Obligations
are cash collateralized or such letters of credit secure Obligations (other
than obligations described above and Obligations in connection with Capitalized
Lease Obligations) entered into in the ordinary course of business of such
Person and such letters of credit are not drawn upon or, if drawn upon, to the
extent any such drawing is reimbursed no later than three Business Days
following receipt by such Person of a demand for reimbursement) or banker’s
acceptances or representing Capital Lease Obligations or the balance deferred
and unpaid of the purchase price of any property or representing any Hedging
Obligations, except any such balance that constitutes an accrued expense or
trade payable, if and to the extent any of the foregoing (other than letters of
credit and Hedging Obligations) would appear as a liability upon a balance
sheet of such Person prepared in accordance with GAAP, as well as all
Indebtedness of others secured by a Lien on any asset of such Person (whether
or not such Indebtedness is assumed by such Person), Attributable Debt and, to
the extent not otherwise included, the Guarantee by such Person of any
Indebtedness of any other Person.  The
amount of any Indebtedness outstanding as of any date shall be (i) the
accreted value thereof, in the case of any Indebtedness issued with original
issue discount, (ii) the principal amount thereof, together with any
interest thereon that is more than 30 days past due, in the case of any
other Indebtedness, and (iii) in respect of Indebtedness of another Person
secured by a Lien on the assets of the specified Person, the lesser of (a) the
fair market value of such assets at the date of determination; and (b) the
amount of the Indebtedness of the other Person. 
Indebtedness also includes all Disqualified Interests issued by such
Person with the amount of Indebtedness represented by such Disqualified
Interests being equal to its maximum fixed repurchase price, but excluding
accrued dividends, if any.  For purposes
hereof, the “maximum fixed repurchase price” of any Disqualified Interests,
which does not have a fixed repurchase price shall be calculated in accordance
with the terms of such Disqualified Interests as if such Disqualified Interests
were purchased on any date on which 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 Interests, such fair
market value shall be determined reasonably and in good faith by the Board of
Directors of the issuer of such Disqualified Interests.  Notwithstanding the foregoing, in connection
with the Asset Acquisition or other purchase by the Company or any Restricted
Subsidiary of any business or assets not in the ordinary course of business,
the term “Indebtedness” will exclude post-closing payment adjustments to which
the seller may become entitled to the extent such payment is determined by a
final closing balance sheet or such payment depends on the performance of such
business after the closing; provided,  however,
that at the time of closing, the amount of any such payment is not determinable
and, to the extent such payment thereafter becomes fixed and determined, the
amount is paid within 30 days thereafter.

 

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

 

“Indirect Participant”
means a Person who holds a beneficial interest in a Global Note through a
Participant.

 

“Initial Notes” as
defined in the recitals hereto.

 

“Initial Purchasers”
means Wachovia Capital Markets, LLC and Goldman, Sachs & Co.

 

“Interest Payment Date”
means February 15 and August 15 of each year to stated maturity,
commencing August 15, 2007.

 

“Investments” means,
with respect to any Person, all investments by such Person in other Persons
(including Affiliates) in the form of direct or indirect loans (including
guarantees of Indebtedness 

 

12

 

or other obligations),
advances or capital contributions (excluding extensions of credit to customers
or advances, deposits or payments to or with suppliers, lessors or utilities or
for worker’s compensation, in each case, in the ordinary course of business
that are required to be recorded in accordance with GAAP as accounts
receivable, prepaid expenses or deposits on the balance sheet of such Person
and excluding commissions, travel and similar advances to officers and
employees made consistent with past practices) and purchases or other
acquisitions for consideration of Indebtedness, Equity Interests or other
securities.  If the Company or any
Restricted Subsidiary of the Company sells or otherwise disposes of any Equity
Interests of any Restricted Subsidiary of the Company such that, after giving
effect to any such sale or disposition, such Person is no longer a Restricted
Subsidiary of the Company, the Company shall be deemed to have made an
Investment on the date of any such sale or disposition equal to the fair market
value of the Equity Interests of such Restricted Subsidiary not sold or
disposed of in an amount determined as provided in Section 4.07.  Except as otherwise provided for herein, the
amount of an investment shall be its fair market value at the time the
Investment is made and without giving effect to subsequent changes in value.

 

“Issue Date” means February 14,
2007.

 

“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.

 

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

 

“Lien” means, with
respect to any asset, any mortgage, lien, pledge, charge, security interest or
encumbrance of any kind in respect of such asset, 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 grant a security interest in such asset).

 

“Management Fees”
means management fees not in excess of $1,000,000 per annum, provided that such management fee
may increase by an amount equal to $1,000,000 per annum upon the consummation
of each acquisition by the Company or any of its Restricted Subsidiaries of all
of the Capital Interests of any Person or all or substantially all of the
assets or any business unit or division of any Person, in each case, engaged
primarily in a Permitted Business and such Person becomes a Restricted
Subsidiary or such assets, business unit or division are acquired by a
Restricted Subsidiary subject to a maximum aggregate amount of management fees
of $3,000,000 in any twelve-month period, which in the event of a bankruptcy of
the Company shall be subordinated to the prior payment in full, in cash, of all
Obligations due in respect of the Notes (including interest after the
commencement of any bankruptcy proceeding at the rate specified in the Notes)
and payment of which shall be suspended during the continuance of a payment
default in respect of the Notes.

 

“Marketable Securities”
means any securities listed or quoted on any national securities exchange that
has registered with the SEC pursuant to Section 6(a) of the Exchange
Act, the Nasdaq National Market or any designated offshore securities market as
defined in Regulation S under the Securities Act.

 

“Net Proceeds” means
the aggregate cash proceeds received by the Company or any of its Restricted Subsidiaries
in respect of any Asset Sale (including, without limitation, any cash received
upon the sale or other disposition of any non-cash consideration received in
any Asset Sale), net of the direct costs relating to such Asset Sale or
disposition of such non-cash consideration, including, without limitation, (i) legal,
accounting and investment banking fees, sales commissions, and any severance
and relocation

 

13

 

expenses incurred as a result thereof, (ii) all
taxes paid or payable as a result thereof, in each case, after taking into
account any available tax credits or deductions and any tax sharing
arrangements, (iii) amounts required to be applied to the repayment of
Indebtedness (other than revolving credit Indebtedness, unless there is a
required reduction in commitments) secured by a Lien on the asset or assets
that were the subject of such Asset Sale, (iv) appropriate amounts to be
provided by the Company or any Restricted Subsidiary, as the case may be, as a
reserve, (a) against any liabilities associated with such Asset Sale and
retained by the Company or any Restricted Subsidiary, as the case may be, after
such Asset Sale, including, without limitation, pension and other
post-employment benefit liabilities, liabilities related to environmental
matters and liabilities under any indemnification obligations associated with
such Asset Sale, or (b) for adjustment in respect of the sale price of the
property or assets that are the subject of such Asset Sale; and (v) amounts
required to be paid to any Person (other than the Company or any of its
Restricted Subsidiaries) owning a beneficial interest in the assets that are
the subject of the Asset Sale.

 

“New Credit Facility”
means the credit agreement as in effect on the Closing Date among the Company,
the guarantors party thereto, Wachovia Bank, National Association as agent and
the lenders party thereto and any related notes, instruments, collateral
documents, letters of credit, Guarantees, and other agreements executed in
connection therewith including any appendices, exhibits or schedules to any of
the foregoing (as the same may be in effect from time to time), in each case,
as such agreements may be amended, modified, renewed, refunded, replaced
(whether upon termination or otherwise), substituted, refinanced (including by
means of sales of debt securities to institutional investors), supplemented or
restated in whole or in part from time to time (whether with the original
agents and lenders or other agents or lenders or otherwise, and whether
provided under the original credit agreement or other credit agreements or
otherwise, including any agreement extending the maturity of, refinancing,
replacing, or otherwise restructuring (including increasing the amount of
available borrowings or letters of credit thereunder or adding Subsidiaries of
the Company as additional borrowers or guarantors thereunder) all or any
portion of the Indebtedness under such agreement or any successor or replacement
agreement.

 

“Non-Recourse Debt”
means Indebtedness (i) as to which neither the Company nor any of its
Restricted Subsidiaries (a) provides credit support of any kind (including
any undertaking, agreement or instrument that would constitute Indebtedness), (b) is
directly or indirectly liable (as a guarantor or otherwise), or (c) constitutes
the lender; and (ii) as to which (a) the explicit terms provide that
there is no recourse against any assets of the Company or any of its Restricted
Subsidiaries or (b) the lenders have been notified in writing that they will
not have any recourse to the stock or assets of the Company or any of its
Restricted Subsidiaries.

 

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

 

“Notes” means,
collectively, the Initial Notes and the Additional Notes.  For all purposes of this Indenture, the term “Notes”
shall also include any Additional Notes that may be issued under a supplemental
indenture.  The Initial Notes (including
any Exchange Notes issued in exchange therefor) and any Additional Notes shall
be treated as a single class for all purposes under this Indenture, including,
without limitation, waivers, amendments, redemptions and offers to purchase.

 

“Obligations” means
any principal, interest, penalties, fees, indemnifications, reimbursements,
damages and other liabilities payable under the documentation governing any Indebtedness.

 

“Offering Memorandum”
means the offering memorandum, dated February 7, 2007, relating to the
sale of the Initial Notes.

 

“Officer” means (i) with
respect to any Person that is a corporation, the Chairman of the Board, the
Chief Executive Officer, the Chief Financial Officer, the President, any
Executive Vice President,

 

14

 

Senior Vice President or Vice President, the
Treasurer, the Controller or the Secretary of the Company and (ii) with
respect to any other Person, the individuals designated to perform functions
similar to those of the officers in clause (i) above.

 

“Officers’ Certificate”
means a certificate signed on behalf of the Company by an Officer or Officers
of the Company, at least one of whom shall 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 Section 12.05
of this Indenture.

 

“Opinion of Counsel”
means a written opinion from legal counsel that meets the requirements of Section 12.05
hereof.  The counsel may be an employee
of or counsel to the Company or any Subsidiary of the Company.

 

“Parent” means PGS Holding
Corp., a Delaware corporation.

 

“Participant” means,
with respect to the Depositary, Euroclear or Clearstream, a Person who has an
account with the Depositary, Euroclear or Clearstream, respectively (and, with
respect to DTC, shall include Euroclear and Clearstream).

 

“Permitted Business”
means the business of the Company and its Restricted Subsidiaries, as presently
conducted by the Company and its Restricted Subsidiaries and other businesses
that are ancillary or related thereto or are a reasonable extension,
development or expansion thereof.

 

“Permitted Holders”
means (i) Veritas Capital Fund Management, L.L.C. and any Person
controlling, controlled by, or under common control with, and any account
controlled or managed by or under common control or management with Veritas
Capital Fund Management, L.L.C. or (ii) Veritas Capital Fund Management,
L.L.C. and employees, management and directors of (including any of their
Heirs), and Persons owning accounts managed or advised by or controlled by any
of the foregoing and their respective Affiliates.

 

“Permitted Investments”
means:

 

(i)            any
Investment in the Company or in a Restricted Subsidiary of the Company;

 

(ii)           any
Investment in Cash Equivalents or Marketable Securities;

 

(iii)          any
Investment by the Company or any Restricted Subsidiary of the Company in a
Person, if as a result of such Investment (a) such Person becomes a
Restricted Subsidiary of the Company or (b) such Person is merged,
consolidated or amalgamated with or into, or transfers or conveys substantially
all of its assets to, or is liquidated into, the Company or a Restricted Subsidiary
of the Company and that is engaged in a Permitted Business;

 

(iv)          any
Investment made as a result of the receipt of non-cash consideration from an
Asset Sale that was made pursuant to and in compliance with Section 4.10;

 

(v)           any
acquisition of assets solely in exchange for the issuance of Equity Interests
(other than Disqualified Interests) of the Company or any parent of the
Company;

 

(vi)          Investments
represented by guarantees that are otherwise permitted under this Indenture;

 

15

 

(vii)         Investments
existing on the Issue Date;

 

(viii)        Hedging
Obligations entered into in the ordinary course of the Company’s or its
Restricted Subsidiaries’ businesses, consistent with past practice, and
otherwise in compliance with this Indenture;

 

(ix)           Investments
in the Notes;

 

(x)            Investments
in securities of trade creditors or customers received pursuant to any plan of
reorganization or similar arrangement upon the bankruptcy or insolvency of such
trade creditors or customers in exchange for claims against such trade
creditors or customers or in good faith settlement of delinquent obligations of
such trade creditors and customers;

 

(xi)           advances
to suppliers and customers in the ordinary course of business;

 

(xii)          loans
and advances, including advances for travel and moving expenses, to employees
that are not officers or directors of the Company and its Restricted
Subsidiaries in the ordinary course of business, for bona fide business
purposes not in excess of $1.0 million at any one time outstanding;

 

(xiii)         Investments
in joint ventures engaged in a Permitted Business having an aggregate value
(measured on the date such Investment was made and without giving effect to
subsequent changes in value), when taken together with all other Investments
made pursuant to this clause (xiii) since the date of this Indenture not
to exceed $10 million; and

 

(xiv)        other
Investments in any Person having an aggregate fair market value (measured on
the date each such Investment was made and without giving effect to subsequent
changes in value), when taken together with all other Investments made pursuant
to this clause (xiv) since the date of this Indenture, not to exceed $10.0 million.

 

“Permitted Junior
Securities” means (i) Equity Interests in the Company or any Guarantor
or (ii) debt securities that are subordinated to all Senior Debt and any
debt securities issued in exchange for Senior Debt to substantially the same
extent as, or to a greater extent than, the Notes and the Guarantees thereof
are subordinated to Senior Debt under this Indenture.

 

“Permitted Liens”
means:

 

(i)            Liens
on assets of the Company or any of its Restricted Subsidiaries securing Senior
Debt that is permitted by the terms of this Indenture to be incurred;

 

(ii)           Liens
in favor of the Company or the Guarantors;

 

(iii)          Liens
to secure Indebtedness (including Capital Lease Obligations and Attributable
Debt) permitted by Section 4.09(b)(iv) which liens with respect
solely to Capital Lease Obligations, Attributable Debt and purchase money
obligations and not mortgage financings, shall cover only the assets acquired,
constructed, installed, designed, or improved with the proceeds of such Indebtedness;

 

(iv)          Liens
upon specific items of inventory or other goods and proceeds of any Person
securing such Person’s obligations in respect of bankers’ acceptances issued or
created for the

 

16

 

account of such Person to
facilitate the purchase, shipment or storage of such inventory or other goods;

 

(v)           Liens
securing reimbursement obligations with respect to commercial letters of credit
which encumber documents and other property relating to such letters of credit
and products and proceeds thereof;

 

(vi)          Liens
securing Hedging Obligations that relate to Indebtedness that is otherwise
permitted under this Indenture;

 

(vii)         Liens
arising by reason of any judgment, decree or order, but not giving rise to an
Event of Default, so long as such Lien is adequately bonded and any appropriate
legal proceedings which may have been duly initiated for the review of such
judgment decree on order shall not have been finally terminated or the period
within such proceedings may be initiated shall not have expired;

 

(viii)        Liens
securing the Notes and all other monetary obligations under this Indenture and
the Guarantees thereof;

 

(ix)           Liens
securing Permitted Refinancing Indebtedness incurred to refinance any Indebtedness
which has been secured by a Lien permitted under this paragraph and incurred in
accordance with Section 4.09; provided
that such Liens:  (a) taken as a
whole are no less favorable to the Holders and are not more favorable in any
material respect to the lien holders with respect to such Liens than the Liens
in respect of the Indebtedness being refinanced; and (b) do not extend to
or cover any property or assets (other than improvements and accessions thereto
or proceeds and distributions thereof) of the Company or any of its Restricted
Subsidiaries not securing the Indebtedness so refinanced;

 

(x)            Liens
to secure additional Capital Lease Obligations and additional mortgage
financings that were permitted to be incurred pursuant to the Fixed Charge
Coverage Ratio test set forth in Section 4.09(a), which liens with respect
solely to Capital Lease Obligations and not mortgage financings, shall cover
only the assets acquired, constructed, installed, designed, or improved with
the proceeds of such Indebtedness;

 

(xi)           Liens
existing on the Issue Date;

 

(xii)          Precautionary
financing statements filed with respect to operating leases or other transactions
not involving the incurrence of Indebtedness;

 

(xiii)         Liens
securing Acquired Debt incurred in accordance with Section 4.09; provided that:

 

(a)           such Liens secured such Acquired Debt
at the time of and prior to the incurrence of such Acquired Debt by the Company
or a Restricted Subsidiary of the Company and were not granted in connection
with, or in anticipation of, the incurrence of such Acquired Debt by the
Company or a Restricted Subsidiary of the Company; and

 

(b)           such Liens do not extend to or cover
any property or assets of the Company or any of its Restricted Subsidiaries
other than the property or assets that secured the Acquired Debt prior to the
time such indebtedness became Acquired Debt of the Company or a Restricted
Subsidiary of the Company and are no more favorable in any 

 

17

 

material respect to the lien holders than those securing the Acquired
Debt prior to the incurrence of such Acquired Debt by the Company or a
Restricted Subsidiary of the Company;

 

(xiv)        Liens
securing Indebtedness permitted by clauses (ix), (xv) and (xvi) of
the third paragraph under Section 4.09;

 

(xv)         Liens
to secure the performance of statutory obligations, surety or appeal bonds,
performance bonds or other obligations of a like nature incurred in the
ordinary course of business;

 

(xvi)        Liens
incurred or pledges or deposits made in the ordinary course of business in
connection with workers’ compensation, unemployment insurance and other types
of social security and employee health and disability benefits, or casualty-liability
insurance or self insurance including Liens securing letters of credit issued
in the ordinary course of business consistent with past practice in connection
therewith; and

 

(xvii)       any
extension, renewal or replacement, in whole or in part, of any Lien described
in clauses (iii), (x), (xi), (xiii) or (xiv) of the definition of “Permitted
Liens”; provided that
any such extension, renewal or replacement is no more restrictive in any
material respect than the Lien so extended, renewed or replaced and does not
extend to any additional property or assets, in conformity with GAAP.

 

“Permitted Payments to
Parent” means, without duplication as to amounts:

 

(i)            payments
to Parent or any direct or indirect parent of Parent to permit Parent or any
direct or indirect parent of Parent to pay franchise taxes, directors’ fees and
reasonable accounting, legal and administrative expenses of Parent or any
direct or indirect parent of Parent when due, in an aggregate amount not to
exceed $1,500,000 per annum;

 

(ii)           for
so long as the Company is a member of a group filing a consolidated or combined
tax return with Parent or any direct or indirect parent of Parent, payments to
Parent or any direct or indirect parent of Parent in respect of an allocable
portion of the tax liabilities of such group that is attributable to the
Company and its Subsidiaries (“Tax Payments”) and to pay franchise or
similar taxes of Parent or any direct or indirect parent of Parent required to
maintain any such entity’s corporate existence. 
The Tax Payments shall not exceed the lesser of (a) the amount of
the relevant tax (including any penalties and interest) that the Company would
owe if the Company were filing a separate tax return (or a separate
consolidated or combined return with its Subsidiaries that are members of the
consolidated or combined group), taking into account any carryovers and
carrybacks of tax attributes (such as net operating losses) of the Company and
such Subsidiaries from other taxable years and (b) the net amount of the
relevant tax that Parent or any direct or indirect parent of Parent actually
owes to the appropriate taxing authority. 
Any Tax Payments received from the Company shall be paid over to the
appropriate taxing authority within 30 days of Parent’s or any direct or
indirect parent of Parent’s receipt of such Tax Payments or refunded to the
Company; and

 

(iii)          payments
to Parent or any direct or indirect parent of Parent to permit the Parent or
any direct or indirect parent of Parent to make certain payments permitted to
be made under Section 4.07.

 

18

 

“Permitted Refinancing
Indebtedness” means any Indebtedness of the Company or any of its
Restricted Subsidiaries issued in exchange for, or the net proceeds of which
are used to extend, refinance, renew, redeem, replace, defease, discharge or
refund other indebtedness of the Company or any of its Restricted Subsidiaries
(other than intercompany Indebtedness); provided that:

 

(i)            the
principal amount (or accreted value, if applicable) of such Permitted Refinancing
Indebtedness does not exceed the principal amount of (or accreted value, if
applicable), plus fees, expenses, premiums, defeasance costs and accrued
interest on, the Indebtedness so extended, refinanced, renewed, redeemed,
replaced, defeased, discharged or refunded (plus the amount of reasonable
expenses incurred in connection therewith);

 

(ii)           such
Permitted Refinancing Indebtedness has a final maturity date later than the
final maturity date of, and has a Weighted Average Life to Maturity equal to or
greater than the Weighted Average Life to Maturity of, the Indebtedness being
extended, refinanced, renewed, redeemed, replaced, defeased, discharged or
refunded;

 

(iii)          if
the Indebtedness being extended, refinanced, renewed, replaced, defeased,
discharged or refunded is subordinated in right of payment to the Notes, or is
Disqualified Interests, then the Permitted Refinancing Indebtedness must have a
final maturity date later than the final maturity date of, and be subordinated
in right of payment to, the Notes on terms at least as favorable to the Holders
of Notes as those contained in the documentation governing the Indebtedness
being extended, refinanced, renewed, redeemed, replaced, defeased, discharged
or refunded; and

 

(iv)          such
Indebtedness is incurred either by the Company or by the Restricted Subsidiary
who is the obligor on the Indebtedness being extended, refinanced, renewed,
replaced, defeased, discharged or refunded.

 

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

 

“Private Placement Legend”
means the legend set forth in Section 2.06(g)(i) hereof to be placed
on all Notes issued under this Indenture, except where otherwise permitted by
the provisions of this Indenture.

 

“Pro Forma Cost Savings”
means, with respect to any period, the reduction in net costs and related adjustments
that (i) were directly attributable to an acquisition that occurred on or
prior to the applicable calculation date and calculated on a basis that is
consistent with Regulation S-X under the Securities Act as in effect and
applied as of the date of this Indenture, (ii) were actually implemented
by the business that was the subject of any such acquisition within six months
after the date of the acquisition and prior to the calculation date that are
supportable and quantifiable by the underlying accounting records of such
business or (iii) relate to the business that is the subject of any such
acquisition and that the Company reasonably determines are probable based upon
specifically identifiable actions to be taken within six months of the date of
the acquisition and, in the case of each of (i), (ii) and (iii) above,
are described, as provided below, in an Officers’ Certificate, as if all such
reductions in costs had been effected as of the beginning of such period.  Pro Forma Cost Savings described above shall
be accompanied by a certificate delivered to the Trustee from the Company’s
chief financial officer that outlines the specific actions taken or to be
taken, the net cost savings achieved or to be achieved from each such action
and that, in the case of clause (iii) above, such savings have been
determined to be probable.

 

“QIB” means a “qualified
institutional buyer” as defined in Rule 144A.

 

19

 

“Qualified Capital
Interest” means a Capital Interest that is not a Disqualified Interest.

 

“Record Date” means,
with respect to interest or Additional Interest, if any, payable on any
applicable Interest Payment Date, February 1 or August 1(whether or
not a Business Day) immediately preceding such Interest Payment Date.

 

“Registration Rights
Agreement” means the Registration Rights Agreement related to the Notes
dated as of the Issue Date, among the Company, the Guarantors and the Initial
Purchasers, as such agreement may be amended, modified or
supplemented from time to time and, with respect to any Additional Notes, one
or more registration rights agreements between the Company 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.

 

“Regulation S” means
Regulation S promulgated under the Securities Act.

 

“Regulation S Global Note”
means a Regulation S Temporary Global Note or Regulation S Permanent Global
Note, as applicable.

 

“Regulation S Permanent
Global Note” means a permanent Global Note in the form of Exhibit A
hereto, as the case may be, bearing the Global Note Legend and the Private
Placement Legend and deposited with or on behalf of and registered in the name
of the Depositary or its nominee, issued in a denomination equal to the
outstanding principal amount of the Regulation S Temporary Global Note upon
expiration of the Restricted Period.

 

“Regulation S Temporary
Global Note” means a temporary Global Note in the form of Exhibit A
hereto, as the case may be, bearing the Global Note Legend, the Private Placement
Legend and the Regulation S Temporary Global Note Legend and deposited with or
on behalf of and registered in the name of the Depositary or its nominee,
issued in a denomination equal to the outstanding principal amount of the Notes
initially sold in reliance on Rule 903.

 

“Regulation S Temporary
Global Note Legend” means the legend set forth in Section 2.06(g)(iii) hereof.

 

“Representatives”
means the trustee, agent or representatives, if any, or an issuer of Senior
Debt.

 

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

 

“Restricted Definitive
Note” means a Definitive Note bearing the Private Placement Legend.

 

“Restricted Global Note”
means a Global Note bearing the Private Placement Legend.

 

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

 

20

 

“Restricted Period”
means the 40 day distribution compliance period as defined in Regulation S.

 

“Restricted Subsidiary”
of a Person means any Subsidiary of the referent Person that is not an
Unrestricted Subsidiary.

 

“Rule 144” means
Rule 144 promulgated under the Securities Act.

 

“Rule 144A”
means Rule 144A promulgated under the Securities Act.

 

“Rule 903” means
Rule 903 promulgated under the Securities Act.

 

“Rule 904” means
Rule 904 promulgated under the Securities Act.

 

“SEC” means the U.S. Securities and Exchange Commission.

 

“Senior Debt” means,
with respect to the Company or any Guarantor, the principal of, premium, if
any, and interest (including any interest accruing after the commencement of
any bankruptcy proceeding at the rate provided for in the documentation with
respect thereto, whether or not such interest is an allowed or allowable claim
under applicable law) on any Indebtedness of the Company or any Guarantor,
whether outstanding on the date of this Indenture or thereafter created,
incurred or assumed, unless, in the case of any particular obligation, the instrument
creating or evidencing the same or pursuant to which the same is outstanding
expressly provides that such obligation shall be subordinate or pari passu in right of payment to the
Notes or the Guarantees thereof.  Without
limiting the generality of the foregoing, “Senior Debt” shall also include the
principal of, premium, if any, interest (including any interest accruing after
the commencement of any bankruptcy proceeding at the rate provided for in the
documentation with respect thereto, whether or not such interest is an allowed
or allowable claim under applicable law) on, and all other amounts owing in
respect of (including guarantees of the foregoing obligations):

 

(i)      all
monetary obligations of every nature of the Company or of any Guarantor under,
or with respect to, the Credit Facilities, including, without limitation,
obligations to pay principal, premium and interest, reimbursement obligations
under letters of credit, fees, expenses and indemnities (and guarantees
thereof); and

 

(ii)     all
Hedging Obligations (and guarantees thereof),

 

in each case
whether outstanding on the date of the Indenture or thereafter incurred.

 

“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 date of
this Indenture.

 

“Stated Maturity”
means, with respect to any installment of interest or principal on any series
of Indebtedness, the date on which such payment of interest or principal was
scheduled to be paid in the original documentation governing such Indebtedness,
and shall not include any contingent obligations to repay, redeem or repurchase
any such interest or principal prior to the date originally scheduled for the
payment thereof.

 

“Subsidiary” means,
with respect to any Person, (i) any corporation, association or other
business entity of which more than 50% of the total voting power of shares of
Capital Interests entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers or 

 

21

 

trustees thereof is at the time owned or controlled,
directly or indirectly, by such Person or one or more of the other Subsidiaries
of that Person (or a combination thereof) and (ii) any partnership (a) the
sole general partner or the managing general partner of which is such Person or
a Subsidiary of such Person or (b) the only general partners of which are such
Person or one or more Subsidiaries of such Person (or any combination thereof).

 

“Trading Day” means,
with respect to any Marketable Securities, a day on which the principal United
States of America or foreign securities exchange on which such security is
listed or admitted to trading, or the Nasdaq National Market if such security
is not listed or admitted to trading on any such securities exchange, as
applicable, is open for the transaction of business (unless such trading shall
have been suspended for the entire day).

 

“Transactions” means
the “Transactions” as defined in and described under the caption “The
Transactions” in the Offering Memorandum.

 

“Treasury Rate”
means, as obtained by the Company as of any redemption date, the yield to
maturity as of such redemption date of United States of America 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 or similar market data)) most nearly equal to the period from the
redemption date to February 15, 2011; provided,  however, that if the period
from the redemption date to February 15, 2011, is less than one year, the
weekly average yield on actually traded United States of America Treasury
securities adjusted to a constant maturity of one year will be used.

 

“Trust
Indenture Act” means the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb),
as amended.

 

“Trustee” means The
Bank of New York, as trustee, until a successor replaces it in accordance with
the applicable provisions of this Indenture and thereafter means the successor
serving hereunder.

 

“TSA Government
Investigation” means the investigation by the government of the United
States of America in connection with a contract awarded by the Transportation
Security Administration to NCS Pearson, Inc., in 2002 and described under
the captions “The Transactions” and “Business—Legal Proceedings” in the
Offering Memorandum.

 

“Unrestricted Definitive
Note” means one or more Definitive Notes that do not bear and are not
required to bear the Private Placement Legend.

 

“Unrestricted Global Note”
means a permanent Global Note, substantially in the form of Exhibit A
attached hereto, as the case may be, that bears the Global Note Legend and that
has the “Schedule of Exchanges of Interests in the Global Note” attached
thereto, and that is deposited with or on behalf of and registered in the name
of the Depositary, representing Notes that do not bear the Private Placement Legend.

 

“Unrestricted Subsidiary”
means any Subsidiary that is designated by the Board of Directors as an
Unrestricted Subsidiary pursuant to a Board Resolution, but only to the extent
that such Subsidiary:

 

(1)           has
no Indebtedness other than Non-Recourse Debt;

 

22

 

(2)           is
not party to any agreement, contract, arrangement or understanding with the
Company or any Restricted Subsidiary of the Company unless the terms of any
such agreement, contract, arrangement or understanding are no less favorable to
the Company or such Restricted Subsidiary than those that might be obtained at
the time from Persons who are not Affiliates of the Company;

 

(3)           is
a Person with respect to which neither the Company nor any of its Restricted
Subsidiaries has any direct or indirect obligation (x) to subscribe for
additional Equity Interests or (y) to maintain or preserve such Person’s
financial condition or to cause such Person to achieve any specified levels of
operating results; and

 

(4)           has
not guaranteed or otherwise directly or indirectly provided credit support for
any Indebtedness of the Company or any of its Restricted Subsidiaries unless
such guarantee or credit support is released upon its designation as an
Unrestricted Subsidiary.

 

Any such designation by the
Board of Directors shall be evidenced to the Trustee by filing with the Trustee
a certified copy of the Board Resolution giving effect to such designation and
an Officers’ Certificate certifying that such designation complied with the
foregoing conditions and was permitted by Section 4.07.  If, at any time, any Unrestricted Subsidiary
would fail to meet the foregoing requirements as an Unrestricted Subsidiary, it
shall thereafter cease to be an Unrestricted Subsidiary for purposes of this
Indenture and any Indebtedness of such Subsidiary shall be deemed to be
incurred by a Restricted Subsidiary of the Company as of such date (and, if
such Indebtedness is not permitted to be incurred as of such date under Section 4.09,
the Company shall be in Default).  The
Board of Directors of the Company may at any time designate any Unrestricted
Subsidiary to be a Restricted Subsidiary; provided that such designation shall be deemed to be an
incurrence of Indebtedness by a Restricted Subsidiary of the Company of any
outstanding Indebtedness of such Unrestricted Subsidiary and such designation
shall only be permitted if (i) such Indebtedness is permitted under Section 4.09,
calculated on a pro forma basis
as if such designation had occurred at the beginning of the Four Quarter
period, and (ii) no Default or Event of Default would be in existence
following such designation; and provided,  further,
that, to the extent applicable, the Company shall cause such Subsidiary to
comply with Section 4.18.

 

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

 

“Voting Stock” of any
Person as of any date means the Capital Interests of such Person that is at the
time entitled to vote in the election of the Board of Directors of such Person.

 

“Weighted Average Life to
Maturity” means, when applied to any Indebtedness at any date, the number
of years obtained by dividing (i) the sum of the products obtained by
multiplying (a) the amount of each then remaining installment, sinking
fund, serial maturity or other required payments of principal, including
payment at final maturity, in respect thereof, by (b) the number of years
(calculated to the nearest one-twelfth) that will elapse between such date and
the making of such payment, by (ii) the then outstanding principal amount
of such Indebtedness.

 

Section 1.02                                Other
Definitions.

 

	
  

  Term

  	
   

  	
  Defined in 

  Section

  
	
  “Affiliate Transaction”

  	
   

  	
  4.11

  
	
  “Asset Sale Offer”

  	
   

  	
  4.10

  
	
  “Authentication Order”

  	
   

  	
  2.02

  
	
  “Change of Control Offer”

  	
   

  	
  4.14

  

 

23

 

	
  

  Term

  	
   

  	
  Defined in 

  Section

  
	
   

  	
   

  	
   

  
	
  “Change of Control Payment”

  	
   

  	
  4.14

  
	
  “Change of Control Payment Date”

  	
   

  	
  4.14

  
	
  “Covenant Defeasance”

  	
   

  	
  8.03

  
	
  “DTC”

  	
   

  	
  2.03

  
	
  “Event of Default”

  	
   

  	
  6.01

  
	
  “Excess Proceeds”

  	
   

  	
  4.10

  
	
  “incur”

  	
   

  	
  4.09

  
	
  “Legal Defeasance”

  	
   

  	
  8.02

  
	
  “Measurement Date”

  	
   

  	
  4.07

  
	
  “Offer Amount”

  	
   

  	
  3.09

  
	
  “Offer Period”

  	
   

  	
  3.09

  
	
  “Paying Agent”

  	
   

  	
  2.03

  
	
  “Payment Blockage Notice”

  	
   

  	
  13.03

  
	
  “Permitted Debt”

  	
   

  	
  4.09

  
	
  “Primary Lien”

  	
   

  	
  4.12

  
	
  “Purchase Date”

  	
   

  	
  3.09

  
	
  “Redemption Date”

  	
   

  	
  3.07

  
	
  “Registrar”

  	
   

  	
  2.03

  
	
  “Restricted Payments”

  	
   

  	
  4.07

  
	
  “Trustee”

  	
   

  	
  8.05

  

 

Section 1.03                                Incorporation
by Reference of Trust Indenture Act.

 

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

 

The following Trust
Indenture Act terms used in this Indenture have the following meanings:

 

“indenture securities” means
the Notes and the Guarantees thereof;

 

“indenture security holder”
means a Holder of a Note and Guarantees;

 

“indenture to be qualified”
means this Indenture;

 

“indenture trustee” or “institutional
trustee” means the Trustee; and

 

“obligor” on the Notes and the Guarantees
means the Company and the Guarantors, respectively, and any successor obligor
upon the Notes and the Guarantees, respectively.

 

All other terms used in this
Indenture that are defined by the Trust Indenture Act, defined by Trust
Indenture Act reference to another statute or defined by SEC rule under
the Trust Indenture Act and not otherwise defined herein have the meanings so
assigned to them either in the Trust Indenture Act or SEC rule.

 

24

 

Section 1.04                                Rules of
Construction.

 

Unless the context otherwise
requires:

 

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

 

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

 

(c)           “or” is not
exclusive;

 

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

 

(e)           “will” shall be
interpreted to express a command;

 

(f)            provisions apply to
successive events and transactions;

 

(g)           references to
sections of, or rules under, the Securities Act shall be deemed to include
substitute, replacement or successor sections or rules adopted by the SEC
from time to time;

 

(h)           unless the context
otherwise requires, any reference to an “Article,” “Section” or “clause” refers
to an Article, Section or clause, as the case may be, of this Indenture;
and

 

(i)            the words “herein,”
“hereof” and “hereunder” and other words of similar import refer to this
Indenture as a whole and not any particular Article, Section, clause or other
subdivision.

 

Section 1.05           Acts
of Holders.

 

(a)           Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture
to be given or taken by Holders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Holders in person or
by an agent duly appointed in writing. 
Except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments or record or both are delivered
to the Trustee and, where it is hereby expressly required, to the Company.  Proof of execution of any such instrument or
of a writing appointing any such agent, or the holding by any Person of a Note,
shall be sufficient for any purpose of this Indenture and (subject to Section 7.01)
conclusive in favor of the Trustee and the Company, if made in the manner
provided in this Section 1.05.

 

(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 the certificate of any notary public or other
officer authorized by law to take acknowledgments of deeds, certifying that the
individual signing such instrument or writing acknowledged to him the execution
thereof.  Where such execution is by or
on behalf of any legal entity other than an individual, such certificate or
affidavit shall also constitute proof of the authority of the Person executing
the same.  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.

 

(c)           The ownership of Notes shall be
proved by the Register maintained by the Registrar.

 

25

 

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

 

(e)           The Company may, in the circumstances
permitted by the Trust Indenture Act, set a record date for purposes of
determining the identity of Holders entitled to give any request, demand,
authorization, direction, notice, consent, waiver or take any other act, or to
vote or consent to any action by vote or consent authorized or permitted to be
given or taken by Holders.  Unless
otherwise specified, if not set by the Company prior to the first solicitation
of a Holder made by any Person in respect of any such action, or in the case of
any such vote, prior to such vote, any such record date shall be the later of
30 days prior to the first solicitation of such consent or the date of the most
recent list of Holders furnished to the Trustee prior to such solicitation.

 

(f)            Without limiting the foregoing, a
Holder entitled to take any action hereunder with regard to any particular Note
may do so with regard to all or any part of the principal amount of such Note
or by one or more duly appointed agents, each of which may do so pursuant to
such appointment with regard to all or any part of such principal amount.  Any notice given or action taken by a Holder
or its agents with regard to different parts of such principal amount pursuant
to this paragraph shall have the same effect as if given or taken by separate
Holders of each such different part.

 

(g)           Without limiting the generality of
the foregoing, a Holder, including DTC that is the Holder of a Global Note, may
make, give or take, by a proxy or proxies duly appointed in writing, any
request, demand, authorization, direction, notice, consent, waiver or other
action provided in this Indenture to be made, given or taken by Holders, and
DTC that is the Holder of a Global Note may provide its proxy or proxies to the
beneficial owners of interests in any such Global Note through such depositary’s
standing instructions and customary practices.

 

(h)           The Company may fix a record date for
the purpose of determining the Persons who are beneficial owners of interests
in any Global Note held by DTC entitled under the procedures of such depositary
to make, give or take, by a proxy or proxies duly appointed in writing, any
request, demand, authorization, direction, notice, consent, waiver or other
action provided in this Indenture to be made, given or taken by Holders.  If such a record date is fixed, the Holders
on such record date or their duly appointed proxy or proxies, and only such
Persons, shall be entitled to make, give or take such request, demand,
authorization, direction, notice, consent, waiver or other action, whether or not
such Holders remain Holders after such record date.  No such request, demand, authorization,
direction, notice, consent, waiver or other action shall be valid or effective
if made, given or taken more than 90 days after such record date.

 

ARTICLE 2

 

THE NOTES

 

Section 2.01                                Form and
Dating; Terms.

 

(a)           General.  The
Notes and the Trustee’s certificate of authentication shall be substantially in
the form of Exhibit A hereto. 
The Notes may have notations, legends or endorsements required by law,
stock exchange rules or usage.  Each
Note shall be dated the date of its authentication.  The Notes shall be in denominations of $1,000
and integral multiples of $1,000 in excess thereof.  The amount

 

26

 

of Additional Notes which may be issued from
time to time under this Indenture is unlimited, subject to all the provisions
of this Indenture including Section 4.09.

 

(b)           Global Notes. 
Notes issued in global form shall be substantially in the form of Exhibit A
hereto (including the Global Note Legend thereon and the “Schedule of
Exchanges of Interests in the Global Note” attached thereto).  Notes issued in definitive form shall be
substantially in the form of Exhibit A hereto (but without the
Global Note Legend thereon and without the “Schedule of Exchanges of
Interests in the Global Note” attached thereto).  Each Global Note shall represent such of the
outstanding Notes as shall be specified in the “Schedule of Exchanges of
Interests in the Global Note” attached thereto and each shall provide that it
shall represent up to the aggregate principal amount of Notes from time to time
endorsed thereon and that the aggregate principal amount of outstanding Notes
represented thereby may from time to time be reduced or increased, as
applicable, to reflect exchanges and redemptions.  Any endorsement of a Global Note to reflect
the amount of any increase or decrease in the aggregate principal amount of
outstanding Notes represented thereby shall be made by the Trustee or the
Custodian, at the direction of the Trustee, in accordance with instructions
given by the Holder thereof as required by Section 2.06 hereof.

 

(c)           Temporary Global Notes.  Notes offered and sold in reliance on
Regulation S shall be issued initially in the form of the Regulation S
Temporary Global Note, which shall be deposited on behalf of the purchasers of
the Notes represented thereby with the Trustee, as custodian for the
Depositary, and registered in the name of the Depositary or the nominee of the
Depositary for the accounts of designated agents holding on behalf of Euroclear
or Clearstream, duly executed by the Company and authenticated by the Trustee
as hereinafter provided.  The Restricted
Period shall be terminated upon:

 

(i)            receipt
by the Company of a written certificate from the Depositary, together with
copies of certificates from Euroclear and Clearstream certifying that they have
received certification of non-United States beneficial ownership of 100% of the
aggregate principal amount of the Regulation S Temporary Global Note (except to
the extent of any beneficial owners thereof who acquired an interest therein
during the Restricted Period pursuant to another exemption from registration
under the Securities Act and who shall take delivery of a beneficial ownership
interest in a 144A Global Note bearing a Private Placement Legend, all as
contemplated by Section 2.06(b) hereof); and

 

(ii)           following such receipt, delivery of an
Officers’ Certificate to the Trustee

 

Following the termination of
the Restricted Period, beneficial interests in the Regulation S Temporary
Global Note shall be exchanged for beneficial interests in the Regulation S
Permanent Global Note pursuant to the Applicable Procedures.  Simultaneously with the authentication of the
Regulation S Permanent Global Note, the Trustee shall cancel the Regulation S
Temporary Global Note.  The aggregate
principal amount of the Regulation S Temporary Global Note and the Regulation S
Permanent Global Note may from time to time be increased or decreased by
adjustments made on the records of the Trustee and the Depositary or its
nominee, as the case may be, in connection with transfers of interest as
hereinafter provided.

 

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

 

27

 

Section 2.02                                Execution
and Authentication.

 

At least one Officer shall
execute the Notes on behalf of the Company by manual or facsimile signature.

 

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

 

A Note shall not be entitled
to any benefit under this Indenture or be valid or obligatory for any purpose
until authenticated substantially in the form of Exhibit A attached
hereto, as the case may be, by the manual signature of the Trustee.  The signature shall be conclusive evidence
that the Note has been duly authenticated and delivered under this Indenture.

 

On the Issue Date, the
Trustee shall, authenticate and deliver the Initial Notes.  In addition, at any time, from time to time,
the Trustee shall, upon receipt of a Company Order (an “Authentication Order”),
authenticate and deliver any Exchange Notes for an aggregate principal amount
specified in such Authentication Order for such Exchange Notes issued
hereunder.  Additional Notes may be
issued from time to time subject to the terms of this Indenture including Section 4.09.  The Initial Notes and the Additional Notes
shall be treated as a single class for all purposes of this Indenture,
including, without limitation, waivers, amendments, redemptions and offers to
purchase.

 

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

 

Section 2.03                                Registrar
and Paying Agent.

 

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

 

The Company initially
appoints The Depository Trust Company (“DTC”) to act as Depositary with
respect to the Global Notes.

 

The Company initially
appoints the Trustee to act as the Paying Agent and Registrar for the Notes and
to act as Custodian with respect to the Global Notes and the Trustee hereby
agrees to so initially act.

 

Section 2.04                                Paying
Agent to Hold Money in Trust.

 

The Company shall require
each Paying Agent other than the Trustee to agree in writing that the Paying
Agent shall hold in trust for the benefit of Holders or the Trustee all assets
held by the Paying Agent for the payment of principal, premium, if any, or
Additional Interest, if any, or interest on the Notes, and will notify the
Trustee of any default by the Company in making any such payment. While 

 

28

 

any such default continues, the Trustee may require
a Paying Agent to pay all money held by it to the Trustee.  The Company at any time may require a Paying
Agent to pay all money held by it to the Trustee.  Upon payment over to the Trustee, the Paying
Agent (if other than the Company or one of its Subsidiaries) shall have no
further liability for the money.  If the
Company or one of its Subsidiaries acts as Paying Agent, it shall segregate and
hold in a separate trust fund for the benefit of the Holders all money held by
it as Paying Agent.  Upon any Event of
Default under Sections 6.01(vi) or 6.01(vii) relating to the
Company, the Trustee shall serve as Paying Agent for the Notes.

 

Section 2.05                                Holder
Lists.

 

The Trustee shall preserve
in as current a form as is reasonably practicable the most recent list
available to it of the names and addresses of all Holders and shall otherwise
comply with Section 312(a) of the Trust Indenture Act.  If the Trustee is not the Registrar, the
Company shall furnish to the Trustee at least two Business Days before each
Interest Payment Date and at such other times as the Trustee may request in
writing, a list in such form and as of such date as the Trustee may reasonably
require of the names and addresses of the Holders of Notes and the Company
shall otherwise comply with Section 312(a) of the Trust Indenture
Act.

 

Section 2.06                                Transfer
and Exchange.

 

(a)           Transfer and Exchange of Global Notes.  Except as otherwise set forth in this Section 2.06,
a Global Note may be transferred, in whole and not in part, only to another
nominee of the Depositary or to a successor Depositary or a nominee of such
successor Depositary.  A beneficial
interest in a Global Note may not be exchanged for a Definitive Note unless (i) the
Depositary (x) notifies the Company that it is unwilling or unable to continue
as Depositary for such Global Note or (y) has ceased to be a clearing agency
registered under the Exchange Act and, in either case, a successor Depositary
is not appointed by the Company within 120 days or (ii) there shall have
occurred and be continuing a Default with respect to the Notes.  Upon the occurrence of any of the preceding
events in (i) or (ii) above, Definitive Notes delivered in exchange
for any Global Note or beneficial interests therein will be registered in the
names, and issued in any approved denominations, requested by or on behalf of
the Depositary (in accordance with its customary procedures).  Global Notes also may be exchanged or replaced,
in whole or in part, as provided in Sections 2.07 and 2.10 hereof.  Every Note authenticated and delivered in
exchange for, or in lieu of, a Global Note or any portion thereof, pursuant to
this Section 2.06 or Section 2.07 or 2.10 hereof, shall be
authenticated and delivered in the form of, and shall be, a Global Note, except
for Definitive Notes issued subsequent to any of the preceding events in (i) or
(ii) above and pursuant to Section 2.06(c) hereof.  A Global Note may not be exchanged for
another Note other than as provided in this Section 2.06(a); provided,
however, that beneficial interests in a Global Note may be transferred
and exchanged as provided in Section 2.06(b), (c) or (f) hereof.

 

(b)           Transfer and Exchange of Beneficial Interests in the
Global Notes.  The transfer and
exchange of beneficial interests in the Global Notes shall be effected through
the Depositary, in accordance with the provisions of this Indenture and the
Applicable Procedures.  Beneficial
interests in the Restricted Global Notes shall be subject to restrictions on
transfer comparable to those set forth herein to the extent required by the
Securities Act.  Transfers of beneficial
interests in the Global Notes also shall require compliance with either
subparagraph (i) or (ii) below, as applicable, as well as one or more
of the other following subparagraphs, as applicable:

 

(i)            Transfer of
Beneficial Interests in the Same Global Note.  Beneficial interests in any Restricted Global
Note may be transferred to Persons who take delivery thereof in the form of a
beneficial interest in the same Restricted Global Note in accordance with the
transfer restrictions set forth in the Private Placement Legend; provided,
however, that prior to the expiration of 

 

29

 

the
Restricted Period, transfers of beneficial interests in the Regulation S
Temporary Global Note may not be made to a U.S. Person or for the account or
benefit of a U.S. Person (other than an Initial Purchaser).  Beneficial interests in any Unrestricted
Global Note may be transferred to Persons who take delivery thereof in the form
of a beneficial interest in an Unrestricted Global Note.  No written orders or instructions shall be
required to be delivered to the Registrar to effect the transfers described in
this Section 2.06(b)(i).

 

(ii)           All Other
Transfers and Exchanges of Beneficial Interests in Global Notes.  In connection with all transfers and
exchanges of beneficial interests that are not subject to Section 2.06(b)(i) hereof, the transferor of such
beneficial interest must deliver to the Registrar either (A) (1) a
written order from a Participant or an Indirect Participant given to the
Depositary in accordance with the Applicable Procedures directing the Depositary
to credit or cause to be credited a beneficial interest in another Global Note
in an amount equal to the beneficial interest to be transferred or exchanged
and (2) instructions given in accordance with the Applicable Procedures containing
information regarding the Participant account to be credited with such increase
or (B) (1) a written order from a Participant or an Indirect
Participant given to the Depositary in accordance with the Applicable
Procedures directing the Depositary to cause to be issued a Definitive Note in
an amount equal to the beneficial interest to be transferred or exchanged and (2) instructions
given by the Depositary to the Registrar containing information regarding the
Person in whose name such Definitive Note shall be registered to effect the
transfer or exchange referred to in (1) above; provided that in no
event shall Definitive Notes be issued upon the transfer or exchange of
beneficial interests in the Regulation S Temporary Global Note prior to (A) the
expiration of the Restricted Period and (B) the receipt by the Registrar
of any certificates required pursuant to Rule 903.  Upon consummation of an Exchange Offer by the
Company in accordance with Section 2.06(f) hereof, the requirements
of this Section 2.06(b)(ii) shall be deemed to have been satisfied
upon receipt by the Registrar of the instructions contained in the Letter of
Transmittal delivered by the Holder of such beneficial interests in the
Restricted Global Notes.  Upon
satisfaction of all of the requirements for transfer or exchange of beneficial
interests in Global Notes contained in this Indenture and the Notes or
otherwise applicable under the Securities Act, the Trustee shall adjust the
principal amount of the relevant Global Note(s) pursuant to Section 2.06(h) hereof.

 

(iii)          Transfer of
Beneficial Interests to Another Restricted Global Note.  A beneficial interest in any Restricted
Global Note may be transferred to a Person who takes delivery thereof in the
form of a beneficial interest in another Restricted Global Note if the transfer
complies with the requirements of Section 2.06(b)(ii) hereof and the Registrar receives the
following:

 

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

 

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

 

(iv)          Transfer and
Exchange of Beneficial Interests in a Restricted Global Note for Beneficial
Interests in an Unrestricted Global Note. 
A beneficial interest in any Restricted Global Note may be exchanged by
any holder thereof for a beneficial interest in an Unrestricted Global Note or
transferred to a Person who takes delivery thereof in the form of a beneficial
interest in an Unrestricted Global Note if the exchange or transfer complies
with the requirements of Section 2.06(b)(ii) hereof and:

 

30

 

(A)          such exchange or
transfer is effected pursuant to the Exchange Offer in accordance with the Registration
Rights Agreement and the holder of the beneficial interest to be transferred,
in the case of an exchange, or the transferee, in the case of a transfer,
certifies in the applicable Letter of Transmittal that it is not (1) a
Broker-Dealer, (2) a Person participating in the distribution of the
Exchange Notes or (3) a Person who is an affiliate (as defined in Rule 144)
of the Company;

 

(B)           such transfer is
effected pursuant to the Shelf Registration Statement in accordance with the
Registration Rights Agreement;

 

(C)           such transfer is
effected by a Broker-Dealer pursuant to the Exchange Offer Registration
Statement in accordance with the Registration Rights Agreement; or

 

(D)          the Registrar
receives the following:

 

(1)           if the holder of such beneficial
interest in a Restricted Global Note proposes to exchange such beneficial
interest for a beneficial interest in an Unrestricted Global Note, a
certificate from such Holder substantially in the form of Exhibit C
hereto, including the certifications in item (1)(a) thereof; or

 

(2)           if the holder of such beneficial
interest in a Restricted Global Note proposes to transfer such beneficial
interest to a Person who shall take delivery thereof in the form of a
beneficial interest in an Unrestricted Global Note, a certificate from such
holder in the form of Exhibit B hereto, including the
certifications in item (4) thereof;

 

and, in each such case set
forth in this subparagraph (D), if the Registrar so requests or if the
Applicable Procedures so require, an Opinion of Counsel in form reasonably
acceptable to the Registrar to the effect that such exchange or transfer is in
compliance with the Securities Act and that the restrictions on transfer
contained herein and in the Private Placement Legend are no longer required in
order to maintain compliance with the Securities Act.

 

If any such transfer is effected pursuant to
subparagraph (B) or (D) above at a time when an Unrestricted Global
Note has not yet been issued, the Company shall issue and, upon receipt of an
Authentication Order in accordance with Section 2.02 hereof, the Trustee
shall authenticate one or more Unrestricted Global Notes in an aggregate
principal amount equal to the aggregate principal amount of beneficial
interests transferred pursuant to subparagraph (B) or (D) above.

 

Beneficial interests in an Unrestricted
Global Note cannot be exchanged for, or transferred to Persons who take
delivery thereof in the form of, a beneficial interest in a Restricted Global
Note.

 

(c)           Transfer or Exchange of Beneficial Interests for
Definitive Notes.

 

(i)            Beneficial
Interests in Restricted Global Notes to Restricted Definitive Notes.  If any holder of a beneficial interest in a
Restricted Global Note proposes to exchange such beneficial interest for a
Restricted Definitive Note or to transfer such beneficial interest to a Person
who takes delivery thereof in the form of a Restricted Definitive Note, then,
upon the occurrence of any of the events in Section 2.06(a)(i) or (ii) hereof and receipt by the Registrar
of the following documentation:

 

31

 

(A)          if the holder of such
beneficial interest in a Restricted Global Note proposes to exchange such
beneficial interest for a Restricted Definitive Note, a certificate from such
holder substantially in the form of Exhibit C hereto, including the
certifications in item (2)(a) thereof;

 

(B)           if such beneficial
interest is being transferred to a QIB in accordance with Rule 144A, a
certificate substantially in the form of Exhibit B hereto, including
the certifications in item (1) thereof;

 

(C)           if such beneficial
interest is being transferred to a Non-U.S. Person in an offshore transaction
in accordance with Rule 903 or Rule 904, a certificate substantially
in the form of Exhibit B hereto, including the certifications in
item (2) thereof;

 

(D)          if such beneficial
interest is being transferred pursuant to an exemption from the registration
requirements of the Securities Act in accordance with Rule 144, a
certificate substantially in the form of Exhibit B hereto,
including the certifications in item (3)(a) thereof;

 

(E)           if such beneficial
interest is being transferred to the Company or any of its Restricted
Subsidiaries, a certificate substantially in the form of Exhibit B
hereto, including the certifications in item (3)(b) thereof; or

 

(F)           if such beneficial
interest is being transferred pursuant to an effective registration statement
under the Securities Act, a certificate substantially in the form of Exhibit B
hereto, including the certifications in item (3)(c) thereof,

 

the Trustee shall cause the
aggregate principal amount of the applicable Global Note to be reduced
accordingly pursuant to Section 2.06(h) hereof, and the Company shall
execute and the Trustee shall authenticate and mail to the Person designated in
the instructions a Definitive Note in the applicable principal amount.  Any Definitive Note issued in exchange for a
beneficial interest in a Restricted Global Note pursuant to this Section 2.06(c) shall
be registered in such name or names and in such authorized denomination or denominations
as the holder of such beneficial interest shall instruct the Registrar through
instructions from the Depositary and the Participant or Indirect
Participant.  The Trustee shall mail such
Definitive Notes to the Persons in whose names such Notes are so
registered.  Any Definitive Note issued
in exchange for a beneficial interest in a Restricted Global Note pursuant to
this Section 2.06(c)(i) shall bear the Private Placement Legend and
shall be subject to all restrictions on transfer contained therein.

 

(ii)           Beneficial
Interests in Regulation S Temporary Global Note to Definitive Notes.  Notwithstanding Sections 2.06(c)(i)(A) and
(C) hereof, a beneficial interest in the Regulation S Temporary Global Note
may not be exchanged for a Definitive Note or transferred to a Person who takes
delivery thereof in the form of a Definitive Note prior to (A) the
expiration of the Restricted Period and (B) the receipt by the Registrar
of any certificates required pursuant to Rule 903(b)(3)(ii)(B) of the
Securities Act, except in the case of a transfer pursuant to an exemption from
the registration requirements of the Securities Act other than Rule 903 or
Rule 904.

 

(iii)          Beneficial
Interests in Restricted Global Notes to Unrestricted Definitive Notes.  A holder of a beneficial interest in a
Restricted Global Note may exchange such beneficial interest for an
Unrestricted Definitive Note or may transfer such beneficial interest to a
Person who takes delivery thereof in the form of an Unrestricted Definitive
Note only upon the occurrence of any of the events in Section 2.06(a)(i) or
(ii) hereof and if:

 

(A)          such exchange or
transfer is effected pursuant to the Exchange Offer in accordance with the
Registration Rights Agreement and the holder of such beneficial interest, in
the 

 

32

 

case
of an exchange, or the transferee, in the case of a transfer, certifies in the
applicable Letter of Transmittal that it is not (1) a Broker-Dealer, (2) a
Person participating in the distribution of the Exchange Notes or (3) a
Person who is an affiliate (as defined in Rule 144) of the Company;

 

(B)           such transfer is
effected pursuant to the Shelf Registration Statement in accordance with the
Registration Rights Agreement;

 

(C)           such transfer is
effected by a Broker-Dealer pursuant to the Exchange Offer Registration
Statement in accordance with the Registration Rights Agreement; or

 

(D)          the Registrar
receives the following:

 

(1)            if the holder of such beneficial
interest in a Restricted Global Note proposes to exchange such beneficial
interest for an Unrestricted Definitive Note, a certificate from such holder
substantially in the form of Exhibit C hereto, including the certifications
in item (1)(b) thereof; or

 

(2)            if the holder of such beneficial
interest in a Restricted Global Note proposes to transfer such beneficial
interest to a Person who shall take delivery thereof in the form of an
Unrestricted Definitive Note, a certificate from such holder substantially in
the form of Exhibit B hereto, including the certifications in item (4) thereof;

 

and,
in each such case set forth in this subparagraph (D), if the Registrar so
requests or if the Applicable Procedures so require, an Opinion of Counsel in
form reasonably acceptable to the Registrar to the effect that such exchange or
transfer is in compliance with the Securities Act and that the restrictions on
transfer contained herein and in the Private Placement Legend are no longer
required in order to maintain compliance with the Securities Act.

 

(iv)          Beneficial
Interests in Unrestricted Global Notes to Unrestricted Definitive Notes.  If any holder of a beneficial interest in an
Unrestricted Global Note proposes to exchange such beneficial interest for a Definitive
Note or to transfer such beneficial interest to a Person who takes delivery
thereof in the form of a Definitive Note, then, upon the occurrence of any of
the events in subsection (i) or (ii) of Section 2.06(a) hereof and satisfaction of the conditions
set forth in Section 2.06(b)(ii) hereof, the Trustee shall cause the
aggregate principal amount of the applicable Global Note to be reduced
accordingly pursuant to Section 2.06(h) hereof, and the Company shall
execute and the Trustee shall authenticate and mail to the Person designated in
the instructions a Definitive Note in the applicable principal amount.  Any Definitive Note issued in exchange for a
beneficial interest pursuant to this Section 2.06(c)(iv) shall be
registered in such name or names and in such authorized denomination or denominations
as the holder of such beneficial interest shall instruct the Registrar through
instructions from or through the Depositary and the Participant or Indirect
Participant.  The Trustee shall mail such
Definitive Notes to the Persons in whose names such Notes are so
registered.  Any Definitive Note issued
in exchange for a beneficial interest pursuant to this Section 2.06(c)(iv) shall
not bear the Private Placement Legend.

 

(d)           Transfer and Exchange of Definitive Notes for
Beneficial Interests.

 

(i)            Restricted
Definitive Notes to Beneficial Interests in Restricted Global Notes.  If any Holder of a Restricted Definitive Note
proposes to exchange such Note for a beneficial interest in a Restricted Global
Note or to transfer such Restricted Definitive Note to a Person who takes
delivery thereof in the form of a beneficial interest in a Restricted Global
Note, then, upon receipt by the Registrar of the following documentation:

 

33

 

(A)          if the Holder of such
Restricted Definitive Note proposes to exchange such Note for a beneficial
interest in a Restricted Global Note, a certificate from such Holder
substantially in the form of Exhibit C hereto, including the
certifications in item (2)(b) thereof;

 

(B)           if such Restricted
Definitive Note is being transferred to a QIB in accordance with Rule 144A,
a certificate substantially in the form of Exhibit B hereto,
including the certifications in item (1) thereof;

 

(C)           if such Restricted
Definitive Note is being transferred to a Non-U.S. Person in an offshore
transaction in accordance with Rule 903 or Rule 904, a certificate
substantially in the form of Exhibit B hereto, including the
certifications in item (2) thereof;

 

(D)          if such Restricted
Definitive Note is being transferred pursuant to an exemption from the
registration requirements of the Securities Act in accordance with Rule 144,
a certificate substantially in the form of Exhibit B hereto,
including the certifications in item (3)(a) thereof;

 

(E)           if such Restricted
Definitive Note is being transferred to the Company or any of its Restricted
Subsidiaries, a certificate substantially in the form of Exhibit B
hereto, including the certifications in item (3)(b) thereof; or

 

(F)           if such Restricted
Definitive Note is being transferred pursuant to an effective registration
statement under the Securities Act, a certificate substantially in the form of Exhibit B
hereto, including the certifications in item (3)(c) thereof,

 

the Trustee shall cancel the
Restricted Definitive Note, increase or cause to be increased the aggregate
principal amount of, in the case of clause (A) above, the applicable
Restricted Global Note, in the case of clause (B) above, the applicable
144A Global Note, and in the case of clause (C) above, the applicable
Regulation S Global Note.

 

(ii)           Restricted
Definitive Notes to Beneficial Interests in Unrestricted Global Notes.  A Holder of a Restricted Definitive Note may
exchange such Note for a beneficial interest in an Unrestricted Global Note or
transfer such Restricted Definitive Note to a Person who takes delivery thereof
in the form of a beneficial interest in an Unrestricted Global Note only if:

 

(A)          such exchange or
transfer is effected pursuant to the Exchange Offer in accordance with the
Registration Rights Agreement and the Holder, in the case of an exchange, or
the transferee, in the case of a transfer, certifies in the applicable Letter
of Transmittal that it is not (1) a Broker-Dealer, (2) a Person
participating in the distribution of the Exchange Notes or (3) a Person
who is an affiliate (as defined in Rule 144) of the Company;

 

(B)           such transfer is
effected pursuant to the Shelf Registration Statement in accordance with the
Registration Rights Agreement;

 

(C)           such transfer is
effected by a Broker-Dealer pursuant to the Exchange Offer Registration
Statement in accordance with the Registration Rights Agreement; or

 

(D)          the Registrar
receives the following:

 

(1)           if the Holder of such Definitive
Notes proposes to exchange such Notes for a beneficial interest in the
Unrestricted Global Note, a certificate from such Holder 

 

34

 

substantially in the form of
Exhibit C hereto, including the certifications in item (1)(c) thereof;
or

 

(2)           if the Holder of such Definitive
Notes proposes to transfer such Notes to a Person who shall take delivery
thereof in the form of a beneficial interest in the Unrestricted Global Note, a
certificate from such Holder substantially in the form of Exhibit B
hereto, including the certifications in item (4) thereof;

 

and,
in each such case set forth in this subparagraph (D), if the Registrar so
requests or if the Applicable Procedures so require, an Opinion of Counsel in
form reasonably acceptable to the Registrar to the effect that such exchange or
transfer is in compliance with the Securities Act and that the restrictions on
transfer contained herein and in the Private Placement Legend are no longer
required in order to maintain compliance with the Securities Act.

 

Upon satisfaction of the
conditions of any of the subparagraphs in this Section 2.06(d)(ii), the
Trustee shall cancel the Definitive Notes and increase or cause to be increased
the aggregate principal amount of the Unrestricted Global Note.

 

(iii)          Unrestricted
Definitive Notes to Beneficial Interests in Unrestricted Global Notes.  A Holder of an Unrestricted Definitive Note
may exchange such Note for a beneficial interest in an Unrestricted Global Note
or transfer such Definitive Notes to a Person who takes delivery thereof in the
form of a beneficial interest in an Unrestricted Global Note at any time.  Upon receipt of a request for such an
exchange or transfer, the Trustee shall cancel the applicable Unrestricted
Definitive Note and increase or cause to be increased the aggregate principal
amount of one of the Unrestricted Global Notes.

 

If any such exchange or
transfer from a Definitive Note to a beneficial interest is effected pursuant
to subparagraph (ii)(B), (ii)(D) or (iii) above at a time when an Unrestricted
Global Note has not yet been issued, the Company shall issue and, upon receipt
of an Authentication Order in accordance with Section 2.02 hereof, the
Trustee shall authenticate one or more Unrestricted Global Notes in an aggregate
principal amount equal to the principal amount of Definitive Notes so
transferred.

 

(e)           Transfer and Exchange of Definitive Notes for
Definitive Notes.  Upon request by a
Holder of Definitive Notes and such Holder’s compliance with the provisions of
this Section 2.06(e), the Registrar shall register the transfer or
exchange of Definitive Notes.  Prior to
such registration of transfer or exchange, the requesting Holder shall present
or surrender to the Registrar the Definitive Notes duly endorsed or accompanied
by a written instruction of transfer in form satisfactory to the Registrar duly
executed by such Holder or by its attorney, duly authorized in writing.  In addition, the requesting Holder shall
provide any additional certifications, documents and information, as
applicable, required pursuant to the following provisions of this Section 2.06(e):

 

(i)            Restricted
Definitive Notes to Restricted Definitive Notes.  Any Restricted Definitive Note may be
transferred to and registered in the name of Persons who take delivery thereof
in the form of a Restricted Definitive Note if the Registrar receives the following:

 

(A)          if the transfer will
be made pursuant to a QIB in accordance with Rule 144A, then the
transferor must deliver a certificate substantially in the form of Exhibit B
hereto, including the certifications in item (1) thereof;

 

(B)           if the transfer will
be made pursuant to Rule 903 or Rule 904 then the transferor must
deliver a certificate in the form of Exhibit B hereto, including
the certifications in item (2) thereof; or

 

35

 

(C)           if the transfer will
be made pursuant to any other exemption from the registration requirements of
the Securities Act, then the transferor must deliver a certificate in the form
of Exhibit B hereto, including the certifications required by item (3) thereof,
if applicable.

 

(ii)           Restricted
Definitive Notes to Unrestricted Definitive Notes.  Any Restricted Definitive Note may be
exchanged by the Holder thereof for an Unrestricted Definitive Note or
transferred to a Person or Persons who take delivery thereof in the form of an
Unrestricted Definitive Note if:

 

(A)          such exchange or
transfer is effected pursuant to the Exchange Offer in accordance with the
Registration Rights Agreement and the Holder, in the case of an exchange, or
the transferee, in the case of a transfer, certifies in the applicable Letter
of Transmittal that it is not (1) a Broker-Dealer, (2) a Person
participating in the distribution of the Exchange Notes or (3) a Person
who is an affiliate (as defined in Rule 144) of the Company;

 

(B)           any such transfer is
effected pursuant to the Shelf Registration Statement in accordance with the
Registration Rights Agreement;

 

(C)           any such transfer is
effected by a Broker-Dealer pursuant to the Exchange Offer Registration
Statement in accordance with the Registration Rights Agreement; or

 

(D)          the Registrar
receives the following:

 

(1)           if the Holder of such Restricted
Definitive Notes proposes to exchange such Notes for an Unrestricted Definitive
Note, a certificate from such Holder substantially in the form of Exhibit C
hereto, including the certifications in item (1)(d) thereof; or

 

(2)           if the Holder of such Restricted
Definitive Notes proposes to transfer such Notes to a Person who shall take
delivery thereof in the form of an Unrestricted Definitive Note, a certificate
from such Holder substantially in the form of Exhibit B hereto,
including the certifications in item (4) thereof;

 

and, in each such case set
forth in this subparagraph (D), if the Registrar so requests, an Opinion of
Counsel in form reasonably acceptable to the Registrar to the effect that such
exchange or transfer is in compliance with the Securities Act and that the
restrictions on transfer contained herein and in the Private Placement Legend
are no longer required in order to maintain compliance with the Securities Act.

 

(iii)          Unrestricted
Definitive Notes to Unrestricted Definitive Notes.  A Holder of Unrestricted Definitive Notes may
transfer such Notes to a Person who takes delivery thereof in the form of an
Unrestricted Definitive Note.  Upon
receipt of a request to register such a transfer, the Registrar shall register
the Unrestricted Definitive Notes pursuant to the instructions from the Holder
thereof.

 

(f)            Exchange Offer. 
Upon the occurrence of the Exchange Offer in accordance with the
Registration Rights Agreement, the Company shall issue and, upon receipt of an
Authentication Order in accordance with Section 2.02 hereof, the Trustee
shall authenticate (i) one or more Unrestricted Global 

 

36

 

Notes in an aggregate principal amount equal
to the principal amount of the beneficial interests in the Restricted Global
Notes tendered for acceptance by Persons that certify in the applicable Letters
of Transmittal that (x) they are not Broker-Dealers, (y) they are not
participating in a distribution of the Exchange Notes and (z) they are not
affiliates (as defined in Rule 144) of the Company, and accepted for exchange
in the Exchange Offer and (ii) Unrestricted Definitive Notes in an
aggregate principal amount equal to the principal amount of the Restricted
Definitive Notes tendered for acceptance by Persons that certify in the
applicable Letters of Transmittal that (x) they are not Broker-Dealers, (y)
they are not participating in a distribution of the Exchange Notes and (z) they
are not affiliates (as defined in Rule 144) of the Company, and accepted
for exchange in the Exchange Offer. 
Concurrently with the issuance of such Notes, the Trustee shall cause
the aggregate principal amount of the applicable Restricted Global Notes to be
reduced accordingly, and the Company shall execute and the Trustee shall
authenticate and mail to the Persons designated by the Holders of Definitive
Notes so accepted Unrestricted Definitive Notes in the applicable principal
amount.  Any Notes that remain
outstanding after the consummation of the Exchange Offer, and Exchange Notes
issued in connection with the Exchange Offer, shall be treated as a single
class of securities under this Indenture.

 

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

 

(i)            Private
Placement Legend.

 

(A)            Except as permitted by
subparagraph (B) below, each Global Note and each Definitive Note (and all
Notes issued in exchange therefor or substitution thereof) shall bear the legend
in substantially the following form:

 

“THIS NOTE (OR
ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT
FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”). 
THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT, AND ACCORDINGLY, MAY NOT
BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER, OR AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF, THE SECURITIES ACT, IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION AND
IN ACCORDANCE WITH TRANSFER RESTRICTIONS CONTAINED IN THE INDENTURE UNDER WHICH
THIS NOTE WAS ISSUED AND THE OFFERING MEMORANDUM PURSUANT TO WHICH THIS NOTE
WAS ORIGINALLY SOLD.  THE HOLDER OF THE
NOTE WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY A PROPOSED
TRANSFEREE OF THE NOTICE OF THE RESALE RESTRICTIONS APPLICABLE TO THE NOTE.

 

THIS SECURITY MAY NOT
BE ACQUIRED OR HELD WITH THE ASSETS OF (I) AN “EMPLOYEE BENEFIT PLAN” (AS
DEFINED IN THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”))
THAT IS SUBJECT TO ERISA, (II) A “PLAN” DESCRIBED IN SECTION 4975 OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), (III) ANY ENTITY DEEMED
TO HOLD “PLAN ASSETS” OF 

 

37

 

ANY OF THE
FOREGOING BY REASON OF AN EMPLOYEE BENEFIT PLAN’S OR PLAN’S INVESTMENT IN SUCH
ENTITY, OR (IV) A GOVERNMENTAL PLAN OR CHURCH PLAN SUBJECT TO APPLICABLE LAW
THAT IS SUBSTANTIALLY SIMILAR TO THE FIDUCIARY RESPONSIBILITY OR PROHIBITED
TRANSACTION PROVISIONS OF ERISA OR SECTION 4975 OF THE CODE (“SIMILAR LAW”),
UNLESS THE ACQUISITION AND HOLDING OF THIS SECURITY BY THE PURCHASER OR
TRANSFEREE, THROUGHOUT THE PERIOD THAT IT HOLDS THIS SECURITY, ARE EXEMPT FROM
THE PROHIBITED TRANSACTION RESTRICTIONS UNDER ERISA AND SECTION 4975 OF
THE CODE OR ANY PROVISIONS OF SIMILAR LAW, AS APPLICABLE, PURSUANT TO ONE OR
MORE PROHIBITED TRANSACTION STATUTORY OR ADMINISTRATIVE EXEMPTIONS.  BY ITS ACQUISITION OR HOLDING OF THIS
SECURITY, EACH PURCHASER AND TRANSFEREE WILL BE DEEMED TO HAVE REPRESENTED AND
WARRANTED THAT THE FOREGOING REQUIREMENTS HAVE BEEN SATISFIED.”

 

(B)           Notwithstanding the
foregoing, any Global Note or Definitive Note issued pursuant to subparagraph
(b)(iv), (c)(iii), (c)(iv), (d)(ii), (d)(iii), (e)(ii), (e)(iii) or (f) of
this Section 2.06 (and all Notes issued in exchange therefor or
substitution thereof) shall not bear the Private Placement Legend.

 

(ii)           Global
Note Legend.  Each Global Note shall
bear a legend in substantially the following form:

 

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE
INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE
BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY
CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON
AS MAY BE REQUIRED PURSUANT TO SECTION 2.06(h) OF THE INDENTURE,
(II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT
TO SECTION 2.06(a) OF THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE
DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE
INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR
DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.  UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR
IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY
OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY
OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. 
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”) TO
THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND
ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH
OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE

 

38

 

OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER
ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
AN INTEREST HEREIN.”

 

(iii)          Regulation
S Temporary Global Note Legend. The Regulation S Temporary Global Note
shall bear a legend in substantially the following form:

 

“THE RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY
GLOBAL NOTE, AND THE CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE FOR
CERTIFICATED NOTES, ARE AS SPECIFIED IN THE INDENTURE (AS DEFINED HEREIN).”

 

(h)           Cancellation and/or Adjustment of Global Notes.  At such time as all beneficial interests in a
particular Global Note have been exchanged for Definitive Notes or a particular
Global Note has been redeemed, repurchased or canceled in whole and not in
part, each such Global Note shall be returned to or retained and canceled by
the Trustee in accordance with Section 2.11 hereof.  At any time prior to such cancellation, if
any beneficial interest in a Global Note is exchanged for or transferred to a
Person who will take delivery thereof in the form of a beneficial interest in
another Global Note or for Definitive Notes, the principal amount of Notes
represented by such Global Note shall be reduced accordingly and an endorsement
shall be made on such Global Note by the Trustee or by the Depositary at the
direction of the Trustee to reflect such reduction; and if the beneficial
interest is being exchanged for or transferred to a Person who will take
delivery thereof in the form of a beneficial interest in another Global Note,
such other Global Note shall be increased accordingly and an endorsement shall
be made on such Global Note by the Trustee or by the Depositary at the
direction of the Trustee to reflect such increase.

 

(i)            General Provisions Relating to Transfers and Exchanges.

 

(i)            To
permit registrations of transfers and exchanges, the Company shall execute and
the Trustee shall authenticate Global Notes and Definitive Notes upon receipt
of an Authentication Order in accordance with Section 2.02 hereof or at
the Registrar’s request.

 

(ii)           No
service charge shall be made to a holder of a beneficial interest in a Global
Note or to a Holder of a Definitive Note for any registration of transfer or
exchange, but the Company will require payment of a sum sufficient to cover any
tax or similar governmental charge payable in connection therewith (other than
any such transfer taxes or similar governmental charge payable upon exchange or
transfer pursuant to Sections 2.07, 2.10, 3.06, 3.09, 4.10, 4.14 and 9.05
hereof).

 

(iii)          Neither
the Registrar nor the Company shall be required to register the transfer of or
exchange any Note selected for redemption in whole or in part, except the unredeemed
portion of any Note being redeemed in part.

 

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

 

(v)           The
Company shall not be required (A) to issue, to register the transfer of or
to exchange any Notes during a period beginning at the opening of business 15
days before the day of any 

 

39

 

mailing of a notice of redemption under Section 3.02
hereof and ending at the close of business on the day of such mailing, (B) to
register the transfer of or to exchange any Note so selected for redemption in
whole or in part, except the unredeemed portion of any Note being redeemed in
part or (C) to register the transfer of or to exchange a Note between a
Record Date and the next succeeding Interest Payment Date.

 

(vi)          Prior
to due presentment for the registration of a transfer of any Note, the Trustee,
any Agent and the Company may deem and treat the Person in whose name any Note
is registered as the absolute owner of such Note for the purpose of receiving
payment of principal of (and premium, if any) and interest (including
Additional Interest, if any) on such Notes and for all other purposes, and none
of the Trustee, any Agent or the Company shall be affected by notice to the
contrary.

 

(vii)         Upon
surrender for registration of transfer of any Note at the office or agency of
the Company designated pursuant to Section 4.02 hereof, the Company shall execute, and the Trustee shall
authenticate and mail, in the name of the designated transferee or transferees,
one or more replacement Notes of any authorized denomination or denominations
of a like aggregate principal amount.

 

(viii)        At
the option of the Holder, Notes may be exchanged for other Notes of any
authorized denomination or denominations of a like aggregate principal amount
upon surrender of the Notes to be exchanged at such office or agency.  Whenever any Global Notes or Definitive Notes
are so surrendered for exchange, the Company shall execute, and the Trustee
shall authenticate and mail, the replacement Global Notes and Definitive Notes
which the Holder making the exchange is entitled to in accordance with the
provisions of Section 2.02 hereof.

 

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

 

(x)            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 Depositary Participants or beneficial owners of
interests in any Global Note) other than to require delivery of such
certificates and other documentation or evidence as are expressly required by,
and to do so if and when expressly required by the terms of, this Indenture,
and to examine the same to determine substantial compliance as to form with the
express requirements hereof.

 

Section 2.07                                Replacement
Notes.

 

If any mutilated Note is
surrendered to the Trustee, the Registrar or the Company and the Trustee receives
evidence to its satisfaction of the ownership and destruction, loss or theft of
any Note, the Company shall issue and the Trustee, upon receipt of an
Authentication Order, shall authenticate a replacement Note if the Trustee’s
requirements are met.  If required by the
Trustee or the Company, an indemnity bond must be supplied by the Holder that
is sufficient in the judgment of the Trustee and the Company to protect the
Company, the Trustee, any Agent and any authenticating agent from any loss that
any of them may suffer if a Note is replaced. 
The Company may charge for its expenses in replacing a Note including
reasonable fees and expenses of its counsel and of the Trustee and its counsel.

 

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

 

40

 

Section 2.08                                Outstanding
Notes.

 

The Notes outstanding at any
time are all the Notes authenticated by the Trustee except for those canceled
by it, those delivered to it for cancellation, those reductions in the interest
in a Global Note effected by the Trustee in accordance with the provisions
hereof, and those described in this Section 2.08 as not outstanding.  Except as set forth in Section 2.09
hereof, a Note does not cease to be outstanding because the Company or an Affiliate
of the Company holds the Note.

 

If a Note is replaced
pursuant to Section 2.07 hereof, it ceases to be outstanding unless the
Trustee receives proof satisfactory to it that the replaced Note is held by a
bona fide purchaser.

 

If the principal amount of
any Note is considered paid under Section 4.01 hereof, it ceases to be
outstanding and interest on it ceases to accrue.

 

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

 

Section 2.09                                Treasury
Notes.

 

In determining whether the
Holders of the required principal amount of Notes have concurred in any direction,
waiver or consent, Notes owned by the Company, or by any Affiliate of the Company,
shall be considered as though not outstanding, except that for the purposes of
determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent, only Notes that a Responsible Officer of the
Trustee knows are so owned shall be so disregarded.  Notes so owned which have been pledged in
good faith shall not be disregarded if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right to deliver any such direction,
waiver or consent with respect to the Notes and that the pledgee is not the
Company or any obligor upon the Notes or any Affiliate of the Company or of
such other obligor.

 

Section 2.10                                Temporary
Notes.

 

Until certificates
representing Notes are ready for delivery, the Company may prepare and the
Trustee, upon receipt of an Authentication Order, shall authenticate temporary
Notes.  Temporary Notes shall be
substantially in the form of certificated Notes but may have variations that
the Company considers appropriate for temporary Notes and as shall be
reasonably acceptable to the Trustee. 
Without unreasonable delay, the Company shall prepare and the Trustee
shall authenticate definitive Notes in exchange for temporary Notes.

 

Holders and beneficial
holders, as the case may be, of temporary Notes shall be entitled to all of the
benefits accorded to Holders, or beneficial holders, respectively, of Notes
under this Indenture.

 

Section 2.11                                Cancellation.

 

The Company at any time may
deliver Notes to the Trustee for cancellation. The Registrar and Paying Agent
shall forward to the Trustee any Notes surrendered to them for registration of
transfer, exchange or payment.  The
Trustee or, at the direction of the Trustee, the Registrar or the Paying Agent
and no one else shall cancel all Notes surrendered for registration of
transfer, exchange, payment, replacement or cancellation and shall dispose of
such cancelled Notes in accordance with its customary 

 

41

 

procedures (subject to the
record retention requirement of the Exchange Act).  Certification of the disposal of all
cancelled Notes shall be delivered to the Company upon its request
therefor.  The Company may not issue new
Notes to replace Notes that it has paid or that have been delivered to the
Trustee for cancellation.

 

Section 2.12                                Defaulted
Interest.

 

If the Company defaults in a
payment of interest on the Notes, it shall pay the defaulted interest in any
lawful manner plus, to the extent lawful, interest payable on the defaulted
interest to the Persons who are Holders on a subsequent special record date, in
each case at the rate provided in the Notes and in Section 4.01
hereof.  The Company shall notify the Trustee
in writing in the form of an Officers’ Certificate 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 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 provided in this Section 2.12.  The Trustee shall fix or cause to be fixed
each such special record date and payment date; provided that no such
special record date shall be less than 10 days prior to the related payment
date for such defaulted interest.  The
Trustee shall promptly notify the Company of such special record date.  At least 15 days before the special record
date, the Company (or, upon the written request of the Company, the Trustee in
the name and at the expense of the Company) shall mail or cause to be mailed,
first-class postage prepaid, to each Holder a notice at his or her address as
it appears in the register maintained by the Registrar that states the special
record date, the related payment date and the amount of such interest to be
paid.

 

Subject to the foregoing
provisions of this Section 2.12 and for greater certainty, 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 2.13                                CUSIP
Numbers.

 

The Company in issuing the
Notes may use CUSIP numbers (if then generally in use) and, if so, the Trustee
shall use CUSIP numbers in notices of redemption as a convenience to Holders; provided,
that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Notes or as contained in
any notice of redemption and that reliance may be placed only on the other
identification numbers printed on the Notes, and any such redemption shall not
be affected by any defect in or omission of such numbers.  The Company will as promptly as practicable
notify the Trustee of any change in the CUSIP numbers.

 

ARTICLE 3

 

REDEMPTION

 

Section 3.01                                Notices
to Trustee.

 

If the Company elects to
redeem the Notes pursuant to Section 3.07 hereof, it shall furnish to the
Trustee, at least 10 Business Days before notice of redemption is required to
be mailed or caused to be mailed to Holders pursuant to Section 3.03
hereof but not more than 60 days before a redemption or purchase date, an
Officers’ Certificate complying with the applicable provisions of Section 12.05
setting forth (i) the paragraph or subparagraph of such Note and/or Section of
this Indenture pursuant to which the redemption or purchase shall occur, (ii) the
redemption or purchase date, (iii) the principal amount of the Notes to be
redeemed or purchased, (iv) the redemption or purchase price and (v) the

 

42

 

CUSIP number, if any.  Any optional redemption referenced in such
Officers’ Certificate may be cancelled by the Company at any time prior to a
Notice of Redemption being mailed to any Holder and, thereafter, shall be null
and void.

 

Section 3.02                                Selection
of Notes to Be Redeemed or Purchased.

 

If less than all of the
Notes are to be redeemed or purchased in an offer to purchase at any time, the
Trustee shall select the Notes to be redeemed or purchased on a pro rata basis unless otherwise required by law or
applicable stock exchange requirements; provided that no partial
redemption will reduce the principal amount of a Note not redeemed to be less
than $1,000.

 

The Trustee shall promptly
notify the Company in writing of the Notes selected for redemption or purchase
and, in the case of any Note selected for partial redemption or purchase, the
principal amount thereof to be redeemed or purchased.  Notes and portions of Notes selected shall be
in amounts of $1,000 or whole multiples of $1,000; no Notes of $1,000 or less
can be redeemed in part, except that if all of the Notes of a Holder are to be
redeemed or purchased, the entire outstanding amount of Notes held by such
Holder, even if not a multiple of $1,000, shall be redeemed or purchased.  Except as provided in the preceding sentence,
provisions of this Indenture that apply to Notes called for redemption or
purchase also apply to portions of Notes called for redemption or purchase.

 

Section 3.03                                Notice
of Redemption or Repurchase.

 

Subject to Section 3.09
hereof, the Company shall mail or cause to be mailed by first-class mail
notices of redemption or repurchase at least 30 days but not more than 60 days
before the redemption or repurchase date to each Holder of Notes to be redeemed
or repurchased at such Holder’s registered address, except that redemption or
repurchase notices may be mailed more than 60 days prior to a redemption or
repurchase date if the notice is issued in connection with Article 8 or Article 11
hereof.  Except as set forth in Section 3.07(b) hereof,
notices of redemption or repurchase may not be conditional.  Failure to give notice of redemption, or any
defect therein to any Holder of any Note selected for redemption shall not
impair or affect the validity of the redemption of any other Note.

 

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

 

(a)           the redemption or
repurchase date;

 

(b)           the redemption or
repurchase price;

 

(c)           if any Note is to be
redeemed or repurchased in part only, the portion of the principal amount of
that Note that is to be redeemed or repurchased and that, after the redemption
or repurchase date upon surrender of such Note, a new Note or Notes in
principal amount equal to the unredeemed unpurchased portion of the original
Note representing the same indebtedness to the extent not redeemed or
repurchased will be issued in the name of the Holder of the Notes (unless such
unredeemed or unrepurchased portion is equal to or less than $1,000 in
principal amount) or transferred by book entry upon cancellation of the
original Note;

 

(d)           the name and address
of the Paying Agent;

 

(e)           that Notes called
for redemption or repurchase must be surrendered to the Paying Agent to collect
the redemption or repurchase price;

 

43

 

(f)            that, unless the
Company defaults in making such redemption payment, interest and Additional
Interest, if any, on Notes called for redemption or repurchase ceases to accrue
on and after the redemption or repurchase date;

 

(g)           the paragraph or
subparagraph of the Notes and/or Section of this Indenture pursuant to
which the Notes called for redemption or repurchase are being redeemed or
repurchased, as applicable;

 

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

 

(i)            if in connection
with a redemption or repurchase pursuant to Section 3.07(b) hereof,
any condition to such redemption or repurchase.

 

At the Company’s request,
the Trustee shall give the notice of redemption in the Company’s name and at
its expense; provided that the Company shall have delivered to the
Trustee, at least 10 Business Days before notice of redemption is required to
be mailed or caused to be mailed to Holders pursuant to this Section 3.03
(unless a shorter notice shall be agreed to by the Trustee), an Officers’
Certificate requesting that the Trustee give such notice and setting forth the
information to be stated in such notice as provided in the preceding paragraph.

 

Section 3.04                                Effect
of Notice of Redemption.

 

Once notice of redemption is
mailed in accordance with Section 3.03 hereof, Notes called for redemption
become irrevocably due and payable on the redemption date at the redemption
price (except as provided for in Section 3.07(b) hereof).  The notice, if mailed in a manner herein
provided, shall be conclusively presumed to have been given, whether or not the
Holder receives such notice.  In any
case, failure to give such notice by mail or any defect in the notice to the
Holder of any Note designated for redemption in whole or in part shall not
affect the validity of the proceedings for the redemption of any other
Note.  Subject to Section 3.05
hereof, on and after the redemption date, interest and Additional Interest, if
any, cease to accrue on Notes or portions of Notes called for redemption.

 

Section 3.05                                Deposit
of Redemption or Purchase Price.

 

Prior to 12:00 p.m.
(New York City time) on the redemption or purchase date, the Company shall
deposit with the Trustee or with the Paying Agent money sufficient to pay the
redemption or purchase price of and accrued and unpaid interest (including
Additional Interest, if any) on all Notes (or a portion thereof) to be redeemed
or purchased on that date.  The Trustee
or the Paying Agent shall promptly, and in any event within two Business Days
after the redemption or repurchase date, return to the Company any money
deposited with the Trustee or the Paying Agent by the Company in excess of the
amounts necessary to pay the redemption price of, and accrued and unpaid
interest on, all Notes to be redeemed or purchased.

 

If the Company complies with
the provisions of the preceding paragraph, on and after the redemption or
purchase date, interest and Additional Interest, if any, shall cease to accrue
on the Notes or the portions of Notes called for redemption or purchase whether
or not such Notes are presented for payment. 
If a Note is redeemed or purchased on or after a Record Date but on or
prior to the related Interest Payment Date, then any accrued and unpaid
interest to the redemption or purchase date shall be paid to the Person in
whose name such Note was registered at the close of business on such Record
Date.  If any Note called for redemption
or purchase shall not be so paid upon surrender for redemption or purchase 

 

44

 

because of the failure of
the Company to comply with the preceding paragraph, interest shall be paid on
the unpaid principal, from the redemption or purchase date until such principal
is paid, and to the extent lawful on any interest accrued to the redemption or
purchase date not paid on such unpaid principal, in each case at the rate
provided in the Notes and in Section 4.01 hereof.

 

Section 3.06                                Notes
Redeemed or Purchased in Part.

 

Upon surrender and
cancellation of a Note that is redeemed or purchased in part, the Company shall
issue and the Trustee shall authenticate for the Holder at the expense of the
Company a new Note equal in principal amount to the unredeemed or unpurchased
portion of the Note surrendered representing the same indebtedness to the
extent not redeemed or purchased; provided that each new Note will be in
a principal amount of $1,000 or an integral multiple of $1,000 in excess
thereof.

 

Section 3.07                                Optional
Redemption.

 

(a)           At any time prior to February 15,
2011, 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 Additional Interest, if any, to the date of
redemption (the “Redemption Date”), subject to the rights of the Holders
of Notes on the relevant Record Date to receive interest due on the relevant
Interest Payment Date.  The Company may
acquire any Notes by means other than redemption, whether pursuant to a Company
tender offer, in open market transactions, or otherwise, assuming such acquisition
does not otherwise violate the terms of this Indenture.

 

(b)           Notwithstanding anything herein to the contrary, at
any time on or prior to February 15, 2010, the Company may on any one or
more occasions redeem the Notes with the net cash proceeds of one or more
Equity Offerings, at 109.625% of the principal amount thereof, plus accrued and
unpaid interest and Additional Interest, if any, thereon to the Redemption
Date, provided that at
least 65% of the principal amount of Notes originally issued remains
outstanding immediately following such redemption (excluding Notes held by the
Company or any of its Subsidiaries); and provided,  further, that such
redemption shall occur within 90 days of the date of the closing of any
such Equity Offering.

 

(c)           The Notes will be redeemable, in
whole or in part on any one or more occasions, at the option of the Company, on
or after February 15, 2011, upon not less than 30 nor more than
60 days’ notice, at the redemption prices (expressed as percentages of
principal amount) set forth below plus accrued and unpaid interest and
Additional Interest, if any, thereon to the applicable redemption date, if redeemed
during the twelve-month period beginning on February 15, 2011 of the years
indicated below, subject to the rights of the Holders of the Notes on the
relevant Record Date to receive interest on the relevant Interest Payment Date:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2011

  	
   

  	
  104.8125

  	
  %

  
	
  2012

  	
   

  	
  102.4063

  	
  %

  
	
  2013 and thereafter

  	
   

  	
  100.0000

  	
  %

  

 

(d)           Any redemption pursuant to this Section 3.07
shall be made pursuant to the provisions of Sections 3.01 through 3.06 hereof.

 

45

 

Section 3.08                                Mandatory
Redemption.

 

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

 

Section 3.09                                Offers
to Repurchase by Application of Excess Proceeds.

 

(a)           In the event that, pursuant to Section 4.10 hereof,
the Company shall be required to commence an Asset Sale Offer, it shall follow
the procedures specified below.

 

(b)           The Asset Sale Offer shall remain open for a period of 20
Business Days following its commencement and no longer, except to the extent
that a longer period is required by applicable law (the “Offer Period”).  No later than five Business Days after the
termination of the Offer Period (the “Purchase Date”), the Company shall
apply all Excess Proceeds (the “Offer Amount”) to the purchase of Notes
and, if required, pari passu Indebtedness (on a pro rata basis, if applicable), or, if less than the Offer
Amount has been tendered, all Notes and pari passu
Indebtedness tendered in response to the Asset Sale Offer.  Payment for any Notes so purchased shall be
made in the same manner as interest payments are made in accordance with Section 4.01
hereof.

 

(c)           If the Purchase Date is on or after a Record Date and on
or before the related Interest Payment Date, any accrued and unpaid interest
and Additional Interest, if any, up to but excluding the Purchase Date, shall
be paid to the Person in whose name a Note is registered at the close of
business on such Record Date, and no additional interest shall be payable to
Holders who tender Notes pursuant to the Asset Sale Offer.

 

(d)           Upon the commencement of an Asset Sale Offer, the Company
shall send, by first-class mail, a notice to each of the Holders, with a copy
to the Trustee. The notice shall contain all instructions and materials
necessary to enable such Holders to tender Notes pursuant to the Asset Sale
Offer.  The Asset Sale Offer shall be
made to all Holders and holders of pari passu
Indebtedness.  The notice, which shall
govern the terms of the Asset Sale Offer, shall state:

 

(i)            that the Asset Sale
Offer is being made pursuant to this Section 3.09 and Section 4.10
hereof and the length of time the Asset Sale Offer shall remain open;

 

(ii)           the Offer Amount,
the purchase price and the Purchase Date;

 

(iii)          that any Note not
properly tendered or accepted for payment will remain outstanding and shall
continue to accrue interest in accordance with the terms hereof;

 

(iv)          that, unless the
Company defaults in making such payment, any Note accepted for payment pursuant
to the Asset Sale Offer shall cease to accrue interest on the Purchase Date;

 

(v)           that Holders
electing to have a Note purchased pursuant to an Asset Sale Offer may elect to
have Notes purchased in integral multiples of $1,000 only;

 

(vi)          that Holders
electing to have a Note purchased pursuant to any Asset Sale Offer shall be
required to surrender such Note, with the form entitled “Option of Holder to
Elect Purchase” attached to the Note completed, or transfer by book-entry
transfer, to the Company, the Depositary, if appointed by the Company, or a
Paying Agent at the address specified in the notice prior to the close of
business at least three Business Days before the Purchase Date;

 

46

 

(vii)         that Holders shall
be entitled to withdraw their election if the Company, the Depositary or the
Paying Agent, as the case may be, receives, not later than the expiration of
the Offer Period, a facsimile transmission or letter setting forth the name of
the Holder, the principal amount of the Note the Holder delivered for purchase
and a statement that such Holder is withdrawing its election to have such Note
purchased;

 

(viii)        that, if the
aggregate principal amount of Notes and pari passu
Indebtedness surrendered by the holders thereof exceeds the Offer Amount, the
Trustee shall select the Notes and the applicable Person (but not the Trustee)
shall select such pari passu Indebtedness to be
purchased on a pro rata basis based on the
principal amount of the Notes or such pari passu
Indebtedness tendered (with such adjustments as may be deemed appropriate by
the Trustee, so that only Notes in denominations of $1,000, or integral
multiples thereof, shall be purchased); and

 

(ix)           that Holders whose
Notes were purchased only in part shall be issued new Notes equal in principal
amount to the unpurchased (to the extent that such unpurchased portion is equal
to $1,000 in principal amount or an integral multiples thereof) portion of the
Notes surrendered (or transferred by book-entry transfer) representing the same
indebtedness to the extent not repurchased.

 

(e)           On or before the Purchase Date, the Company shall, to the
extent lawful, (1) accept for payment, on a pro rata
basis to the extent necessary, the Offer Amount of Notes or portions thereof
validly tendered and not withdrawn pursuant to the Asset Sale Offer, or if less
than the Offer Amount has been tendered, all Notes promptly tendered and not
withdrawn and (2) deliver or cause to be delivered to the Trustee the
Notes properly accepted together with an Officers’ Certificate stating the
aggregate principal amount of such Notes or portions thereof so accepted for
payment by the Company in accordance with this Section 3.09.

 

(f)            The Company, the Depositary or the Paying Agent, as the
case may be, shall promptly mail or deliver to each tendering Holder an amount
equal to the purchase price of the Notes properly tendered and not withdrawn by
such Holder and accepted by the Company for purchase, and the Company shall
promptly issue a new Note, and the Trustee, upon receipt of an Authentication
Order, shall authenticate and mail or deliver (or cause to be transferred by
book-entry) such new Note to such Holder in a principal amount equal to any
unpurchased portion of the Note surrendered representing the same indebtedness
to the extent not repurchased; provided that each such new Note shall be
in a principal amount of $1,000 or an integral multiple of $1,000 in excess
thereof.  Any Note not so accepted shall
be promptly mailed or delivered by the Company to the Holder thereof.  The Company shall publicly announce the
results of the Asset Sale Offer on, or as soon as practicable after, the
Purchase Date.

 

Other than as specifically
provided in this Section 3.09 or Section 4.10 hereof, any purchase
pursuant to this Section 3.09 shall be made pursuant to the applicable
provisions of Sections 3.01 through 3.06 hereof.

 

ARTICLE 4

 

COVENANTS

 

Section 4.01                                Payment
of Notes.

 

The Company shall pay or
cause to be paid the principal of, premium, if any, Additional Interest, if
any, and interest on the Notes on the dates and in the manner provided in the
Notes.  Principal, premium, if any, Additional
Interest, if any, and interest shall be considered paid on the date due if the 

 

47

 

Paying Agent, if other than
the Company or a Subsidiary, holds as of 12:00 p.m. Eastern Time on the
due date money deposited by the Company in immediately available funds and
designated for and sufficient to pay all principal, premium, if any, and
interest then due.  Such Paying Agent
shall return to the Company promptly, and in any event, no later than two
Business Days following the date of payment, any money (including accrued
interest) that exceeds such amount of principal, premium, if any, and interest
paid on the Notes.  If a payment date is
a Legal Holiday at a place of payment, payment may be made at that place on the
next succeeding day that is not a Legal Holiday, and no interest shall accrue
on such payment for the intervening period.

 

The Company shall pay all
Additional Interest, if any, in the same manner on the dates and in the amounts
set forth in the Registration Rights Agreement.

 

The Company shall pay
interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal at the rate equal to the then applicable
interest rate on the Notes to the extent lawful; it shall pay interest
(including post-petition interest in any proceeding under any Bankruptcy Law)
on overdue installments of interest and Additional Interest (without regard to
any applicable grace period) at the same rate to the extent lawful.

 

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

 

Section 4.02                                Maintenance
of Office or Agency.

 

The Company shall maintain
in the Borough of Manhattan, the City and State of New York, an office or
agency (which may be an office of the Trustee or an affiliate of the Trustee,
Registrar or co-registrar) where the Notes may be presented or surrendered for
registration of transfer or for exchange and where notices and demands to or
upon the Company in respect of the Notes and this Indenture may be served.  The Company shall give prompt written notice
to the Trustee of the location, and any change in the location, of such office
or agency.  If at any time the Company
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at The Corporate Trust Office of the
Trustee.

 

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

 

The Company hereby
designates the Corporate Trust Office of the Trustee as one such office or
agency of the Company in accordance with Section 2.03 hereof.

 

Section 4.03                                Reports.

 

(a)           Whether or not required by the rules and
regulations of the Securities and Exchange Commission (the “Commission”),
so long as any Notes (but not the Exchange Notes) are outstanding, the Company
will furnish to the Trustee on behalf of the Holders of Notes (i) all
quarterly and annual financial information that would be required to be
contained in a filing with the Commission on Forms 10-Q and 10-K if the
Company were required to file such Forms, including a “Management’s Discussion
and Analysis of Financial Condition and Results of Operations” that describes
the financial condition and 

 

48

 

results of operations of the
Company and its consolidated Subsidiaries (showing in reasonable detail, either
on the face of the financial statements or in the footnotes thereto, the
financial condition and results of operations of the Company and its Restricted
Subsidiaries separate from the financial condition and results of operations of
the Unrestricted Subsidiaries of the Company) and, with respect to the annual
information only, a report thereon by the Company’s certified independent
accountants; provided,
that with respect to the financial information that would be required for the
fiscal year ended December 31, 2006, the Company shall be deemed to have
complied with this Section 4.03 so long as the Company provides, no later
than April 30, 2007, the balance sheets and statements of operations for
the periods that would be required by Form 10-K for such fiscal year,
together with a report thereon by the Company’s certified independent
accountants and a “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” that describes the financial condition and results
of operations of the Company and its consolidated Subsidiaries for such periods
in substantially similar form to that provided in the Offering Memorandum and (ii) all
current reports that would be required to be filed with the Commission on Form 8-K
if the Company were required to file such reports, in each case within the time
periods specified in the Commission’s rules and regulations (together with
any extensions granted by the Commission); provided, however,
that if the Commission will accept the filings of the Company, the Company, at
its option, need not furnish such reports to the Trustee to the extent it
elects to file such reports with the Commission.  In addition, following the consummation of
the exchange offer contemplated by the Registration Rights Agreement, whether
or not required by the rules and regulations of the Commission, the
Company will file a copy of all such information and reports with the
Commission for public availability within the time periods specified in the
Commission’s rules and regulations (unless the Commission will not accept
such a filing).  In addition, the Company
and the Guarantors have agreed that, for so long as any Notes remain
outstanding, they will furnish to the Holders, upon their request, the
information required to be delivered pursuant to Rule 144A(d)(4) under
the Securities Act.

 

Notwithstanding the
foregoing, such requirements will be deemed satisfied prior to the commencement
of the exchange offer or the effectiveness of a shelf registration statement by
the filing with the Commission of the registration statement relating to the
exchange offer and/or the shelf registration statement, and any amendments
thereto, with such financial information that satisfies Regulation S-X of
the Securities Act; provided
that any such registration statement is filed within the time period required
for filing such quarterly or annual report as specified above.

 

(b)           In the event that (i) the rules and regulations
of the Commission permit the Company and any direct or indirect parent entity
(including Parent) to report at such parent entity’s level on a consolidated
basis, (ii) such parent entity is not engaged in any business other than
the Permitted Business of Parent and (iii) such parent entity’s
consolidated capitalization (including cash and cash equivalents) does not
differ materially from that of the Company and its Subsidiaries on a
consolidated basis, the information and reports required by this Section 4.03
may be those of such parent entity on a consolidated basis; provided that such information
and reports distinguish in all material respects between the Company and its
Subsidiaries and such parent entity and its other subsidiaries, if any.

 

(c)           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).  Upon request by the Company, the Trustee
shall forward such reports to the Holders.

 

Section 4.04                                Compliance
Certificate.

 

(a)           The Company and each Guarantor (to the extent that such
Guarantor is so required under the Trust Indenture Act) shall deliver to the
Trustee, within 90 days after the end of each fiscal year of the Company ending
after the Issue Date, a certificate from the principal executive officer,

 

49

 

principal financial officer or principal
accounting officer stating that a review of the activities of the Company and
its Restricted Subsidiaries during the preceding fiscal year has been made
under the supervision of the signing Officers with a view to determining whether
the Company has performed its obligations under this Indenture, and further
stating, as to such Officer signing such certificate, that to the best of his
or her knowledge the Company has performed each and every covenant contained in
this Indenture that is applicable to it in all material respects and is not in
default in the performance or observance of any of the terms, provisions,
covenants and conditions of this Indenture (or, if a Default shall have
occurred, describing all such Defaults of which he or she may have knowledge
and what action the Company is taking or proposes to take with respect
thereto).

 

(b)           So long as any of the Notes are outstanding, when any
Default has occurred and is continuing under this Indenture, the Company shall
promptly (which shall be no more than ten (10) Business Days) deliver to
the Trustee by registered or certified mail or by facsimile transmission an Officers’
Certificate specifying such Default and what action the Company is taking or
proposes to take with respect thereto.

 

Section 4.05                                Taxes.

 

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

 

Section 4.06                                Stay,
Extension and Usury Laws.

 

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

 

Section 4.07                                Restricted
Payments.

 

(a)           The Company shall not, and shall not
permit any of its Restricted Subsidiaries to, directly or indirectly:

 

(i)            declare
or pay any dividend or make any other payment or distribution on account of the
Company’s or any of its Restricted Subsidiaries’ Equity Interests (including, without
limitation, any payment in connection with any merger or consolidation
involving the Company or any of its Restricted Subsidiaries) or to the direct
or indirect holders of the Company’s or any Restricted Subsidiary’s Equity
Interest in their capacity as such (other than dividends or distributions
payable in Equity Interests (other than Disqualified Interests) of the Company
and other than dividends or distributions payable to the Company or a
Restricted Subsidiary of the Company);

 

(ii)           purchase,
redeem or otherwise acquire or retire for value (including, without limitation,
in connection with any merger or consolidation involving the Company) any
Equity 

 

50

 

Interests of the Company or any direct or indirect parent of the
Company (other than any such Equity Interests owned by the Company or any
Restricted Subsidiary of the Company);

 

(iii)    make
any payment on or with respect to, or purchase, redeem, defease or otherwise
acquire or retire for value any Indebtedness that is subordinated to the Notes
(excluding any intercompany Indebtedness between or among the Company and any
of its Restricted Subsidiaries) except (A) a payment of interest or
principal at the Stated Maturity thereof or (B) the purchase, repurchase
or other acquisition of any such Indebtedness in anticipation of satisfying a
sinking fund obligation, principal installment or final maturity, in each case,
due within one year of the date of such purchase, repurchase or other
acquisition; or

 

(iv)    make
any Restricted Investment

 

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

 

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

 

(B)           the Company would, at the time of
such Restricted Payment and after giving pro forma effect thereto as if such
Restricted Payment had been made at the beginning of the applicable
four-quarter period, have been permitted to incur at least $1.00 of additional
Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in Section 4.09;
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 date of this Indenture (excluding
Restricted Payments permitted by clauses (ii), (iii), (iv), (v), (vi), (viii),
(x) and (xiii) of Section 4.07(b)), is less than the sum,
without duplication, of

 

(1)           50% of the Consolidated Net Income of
the Company for the period (taken as one accounting period) from the beginning
of the first full fiscal quarter commencing after the date of this Indenture
(the “Measurement 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, if such Consolidated Net Income for such
period is a deficit, less 100% of such deficit), plus

 

(2)           100% of the aggregate net proceeds,
including the fair market value of any property, received by the Company since
the Measurement Date as a contribution to its equity capital or from the issue
or sale of Equity Interests of the Company (other than Disqualified Interests)
or from the issue or sale of Disqualified Interests or debt securities of the
Company that have been converted into such Equity Interests (other than Equity
Interests (or Disqualified Interests or convertible debt securities) sold to a
Subsidiary of the Company), together with the aggregate cash and Cash
Equivalents received by the Company or any of its Restricted Subsidiaries at
the time of such conversion or exchange plus the amount by which Indebtedness
of the Company and its Restricted Subsidiaries is reduced upon the conversion
or exchange subsequent to the date of this Indenture of any Indebtedness which
is convertible into or exchangeable for Qualified Capital Interests of the
Company or any of its Restricted Subsidiaries; plus

 

(3)           to the extent that any Restricted
Investment that was made after the date of this Indenture is sold for cash or
otherwise disposed of or is repurchased, redeemed, 

 

51

 

liquidated or repaid for cash, the lesser of (x) the cash return
of capital including for the release of any guarantee and the fair market value
of other property received with respect to such Restricted Investment (less the
cost of disposition, if any) and (y) the aggregate amount of such
Restricted Investment that was treated as a Restricted Payment when made; plus

 

(4)           to the extent that any Unrestricted
Subsidiary of the Company designated as such after the date of this Indenture
is redesignated as a Restricted Subsidiary after the date of this Indenture,
the lesser of (x) the fair market value of the Company’s Investment in
such Subsidiary as of the date of such redesignation and (y) the aggregate
amount of such Investment that was treated as a Restricted Payment at the time
of designation of such Unrestricted Subsidiary as such.

 

The Board of Directors may
designate any Restricted Subsidiary to be an Unrestricted Subsidiary if such
designation would not cause a Default.  For purposes of making such determination,
all outstanding Investments by the Company and its Restricted Subsidiaries
in the Subsidiary so designated will be deemed to be Restricted Payments at the
time of such designation and will reduce the amount available for Restricted
Payments under this Section 4.07(a). 
All such outstanding Investments will be deemed to constitute
Investments in an amount equal to the fair market value of such Investments at
the time of such designation.  Such
designation will only be permitted if such Restricted Payments would be
permitted at such time and if such Restricted Subsidiary otherwise meets the
definition of an Unrestricted Subsidiary.

 

(b)           The foregoing provisions will not
prohibit:

 

(i)            the
payment of any dividend or other distribution or redemption within 60 days
after the date of declaration or call for redemption thereof, if at said date
of declaration or call for redemption such payment would have complied with the
provisions of this Indenture;

 

(ii)           the
making of any Restricted Payment in exchange for, or out of the net cash
proceeds of the substantially concurrent sale (other than to a Subsidiary of
the Company) of, Equity Interests of the Company (other than any Disqualified
Interests) or from the substantially concurrent contribution of common equity
capital to the Company; provided
that the amount of any such net cash proceeds that are utilized for any such
redemption, repurchase, retirement, defeasance or other acquisition shall be
excluded from Section 4.07(a)(C)(2);

 

(iii)          the
defeasance, redemption, repurchase or other acquisition of subordinated
Indebtedness or Disqualified Interests with the net cash proceeds from an
incurrence of Permitted Refinancing Indebtedness;

 

(iv)          the
declaration, or payment of any dividend or other distribution by a Subsidiary
of the Company to the holders of its common Equity Interests on a pro rata
basis;

 

(v)           the
repurchase, redemption or other acquisition or retirement for value of any
Equity Interests of the Company or any Subsidiary of the Company and any
distribution, loan or advance to Parent or any direct or indirect parent of
Parent for the repurchase, redemption or other acquisition or retirement for
value of any Equity Interests of Parent or any direct or indirect parent of
Parent, in each case, held by any current or former officer, director,
consultant or employee of Company or any of its Restricted Subsidiaries (or
Heirs or other permitted transferees thereof); provided that the aggregate price paid for all such
repurchased, redeemed, acquired or retired Equity Interests may not exceed
$1.0 million in any calendar year; provided,  further that 

 

52

 

the Company may carry over and make in subsequent calendar years, in
addition to the amounts permitted for such calendar year, the amount of such
purchases, redemptions or other acquisitions or retirements for value (or
distributions, loans or advances to Parent or a direct or indirect Parent)
permitted to have been made but not made in any preceding calendar year up to a
maximum of $2.0 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 net cash
proceeds from the sale of Equity Interests (other than Disqualified Interests)
of the Company (or Parent or any direct or indirect parent of Parent to the
extent such net cash proceeds are contributed to the common equity of the
Company) to employees, officers, directors or consultants of the Company and
its Restricted Subsidiaries (or Heirs or other permitted transferees thereof)
that occurs after the date of this Indenture (to the extent the cash proceeds
from the sale of such Equity Interests have not otherwise been applied to the
payment of Restricted Payments) plus (B) the cash proceeds of key man life
insurance policies received by the Company and its Restricted Subsidiaries
after the date of this Indenture less any amounts previously applied to the
payment of Restricted Payments pursuant to this clause (v); provided  further
that cancellation of Indebtedness owing to the Company from employees,
officers, directors and consultants of the Company or any of its Restricted
Subsidiaries in connection with the repurchase of Equity Interests from such
Persons will not be deemed to constitute a Restricted Payment for purposes of
this Section 4.07 or any other provisions of this Indenture; and provided  further
that the net cash proceeds from such sales of Equity Interests described in
sub-clause (A) of this clause (v) shall be excluded from Section 4.07(a)(C)(2) to
the extent such proceeds have been or are applied to the payment of Restricted
Payments pursuant to this clause (v);

 

(vi)          the
repurchase of Equity Interests deemed to occur upon the exercise of options,
warrants or other convertible securities to the extent such Equity Interests
represent a portion of the exercise price of those options, warrants or other
convertible securities and cash payments in lieu of the issuance of fractional
shares in connection with the exercise of options, warrants, or other convertible
securities;

 

(vii)         the
purchase, redemption, acquisition, cancellation or other retirement for value
of Equity Interests of the Company or any Restricted Subsidiary to the extent
necessary, in good faith judgment of the Board of Directors of the Company, to
prevent the loss or secure the renewal or reinstatement of any license, permit
or eligibility held by the Company or any of its Restricted Subsidiaries under
any applicable law or governmental regulation or the policies of any
governmental authority or other regulatory body in an aggregate amount not to
exceed $250,000;

 

(viii)        the
payment of intercompany Indebtedness that is expressly subordinated to the
Notes or any Guarantee, the incurrence of which is permitted under Section 4.09(b)(vi);
provided, however, that no Default has
occurred and in continuing or would otherwise result therefrom;

 

(ix)           the
declaration and payment of dividends and distributions to holders of any class
or series of Disqualified Interest of the Company or any of its Restricted
Subsidiaries issued or incurred after the date of this Indenture in accordance
with Section 4.09 hereof;

 

(x)            upon
the occurrence of a Change of Control and within 60 days after completion
of the offer to repurchase Notes pursuant to Section 4.14 (including the
purchase of all Notes tendered), any purchase or redemption of Indebtedness of
the Company subordinated to the Notes that is required to be repurchased or
redeemed pursuant to the terms thereof as a result of such Change of Control,
at a purchase price not greater than 101% of the outstanding principal amount
thereof (plus accrued and unpaid interest);

 

53

 

(xi)           within
60 days after the completion of an Asset Sale Offer pursuant to Section 4.10
(including the purchase of all Notes tendered), any purchase or redemption of
Indebtedness of the Company that is contractually subordinated to the Notes or
any Guarantee that is required to be repurchased or redeemed pursuant to the
terms thereof as a result of such Asset Sale, at a purchase price not greater
than 100% of the outstanding principal amount thereof (plus accrued and unpaid
interest) with any Excess Proceeds that remain after consummation of an Asset
Sale Offer; provided
that, prior to such repayment or repurchase, the Company shall have made the
Asset Sale Offer with respect to the Notes as required by this Indenture, and
the Company shall have repurchased all Notes validly tendered for payment and
not withdrawn in connection with such Asset Sale Offer;

 

(xii)          Permitted
Payments to Parent;

 

(xiii)         payments
in connection with or as a result of the Acquisition (including, without
limitation, to make payments in respect of earnout obligations) as described in
the Offering Memorandum; and

 

(xiv)        additional
Restricted Payments not to exceed $10.0 million after the date of this
Indenture.

 

The amount of all Restricted
Payments (other than cash) shall be the fair market value on the date of the
Restricted Payment of the asset(s) or securities proposed to be transferred or
issued by the Company or such Subsidiary, as the case may be, pursuant to the
Restricted Payment.  The fair market
value of any non-cash Restricted Payment shall be determined by the Board of Directors
whose resolution with respect thereto shall be delivered to the Trustee, such
determination to be based upon an opinion or appraisal issued by an accounting,
appraisal or investment banking firm of national standing if such fair market
value exceeds $10.0 million.

 

Section 4.08                                Dividend
and Other Payment Restrictions Affecting Restricted Subsidiaries.

 

(a)           The Company shall not, and shall not
permit any of its Restricted Subsidiaries to, directly or indirectly, create or
suffer to exist or become effective any consensual encumbrance or restriction
on the ability of any Restricted Subsidiary to:

 

(i)            (x)
pay dividends or make any other distributions to the Company or any of its
Restricted Subsidiaries on its Capital Interests or (y) pay any
Indebtedness owed to the Company or any of its Restricted Subsidiaries;

 

(ii)           make
loans or advances to the Company or any of its Subsidiaries; or

 

(iii)          transfer
any of its properties or assets to the Company or any of its Restricted
Subsidiaries.

 

(b)           However, the foregoing restrictions
will not apply to encumbrances or restrictions existing under or by reason of:

 

(i)            this
Indenture, the Notes and any Guarantees thereof;

 

(ii)           applicable
law, rule or regulation or order;

 

54

 

(iii)          any
instrument governing Indebtedness or Capital Interests of a Person acquired by
the Company or any of its Restricted Subsidiaries as in effect at the time of
such acquisition (except to the extent such Indebtedness or Capital Interest
was incurred or issued in connection with or in contemplation of such
acquisition), which encumbrance or restriction is not applicable to any Person,
or the properties or assets of any Person, other than the Person, or the
property or assets of the Person, so acquired, provided
that, in the case of Indebtedness, such Indebtedness was permitted by the terms
of this Indenture to be incurred;

 

(iv)          customary
non-assignment provisions in leases, contracts, licenses and other agreements
entered into in the ordinary course of business and consistent with past
practices;

 

(v)           purchase
money obligations for property acquired in the ordinary course of business and
Capital Lease Obligations that impose restrictions of the nature described in
clause (iii) above on the property so acquired;

 

(vi)          any
agreement for the sale or other disposition of Equity Interests or assets of a
Restricted Subsidiary or an agreement entered into for the sale of specified
assets that restricts distributions by that Restricted Subsidiary pending such
sale or other disposition;

 

(vii)         Permitted
Refinancing Indebtedness, provided
that the restrictions contained in the agreements governing such Permitted
Refinancing Indebtedness are no more materially restrictive, taken as a whole,
than those contained in the agreements governing the Indebtedness being
refinanced;

 

(viii)        provisions
limiting the disposition or distribution of assets or property in joint venture
agreements, partnership agreements, limited liability company operating
agreements, asset sale agreements, sale-leaseback agreements, stock sale
agreements, lease agreements, licenses and other similar agreements entered
into with the approval of the Board of Directors of the Company, which
limitation is applicable only to the assets that are the subject of such agreements;

 

(ix)           secured
Indebtedness otherwise permitted to be incurred pursuant to Section 4.12
hereof that limits the right of the debtor to dispose of the assets securing
such Indebtedness;

 

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

 

(xi)           in
the case of clause (a)(iii) of this Section 4.08, encumbrances
or restrictions arising or agreed to in the ordinary course of business, not
relating to any Indebtedness, and that do not, individually or in the
aggregate, detract from the value of property or assets of the Company or any
of its Restricted Subsidiaries in any manner material to the Company or any of
its Restricted Subsidiaries;

 

(xii)          provisions
in agreements or instruments that prohibit the payment of dividends or the
making of other distributions with respect to any Capital Interests of a Person
other than on a pro rata basis;

 

(xiii)         restrictions
in other Indebtedness incurred in compliance with Section 4.09 hereof; provided that such restrictions,
taken as a whole, are, in the good faith judgment of the Company’s Board of
Directors, no more materially restrictive with respect to such encumbrances and
restrictions than those contained in the New Credit Facility and this
Indenture;

 

55

 

(xiv)        agreements
governing existing Indebtedness or Capital Interests and the Credit Facilities
as in effect on the date of this Indenture and any amendments, restatements,
modifications, renewals, increases, supplements, refundings, replacements or
refinancings of those agreements; provided
that the amendments, restatements, modifications, renewals, increases,
supplements, refundings, replacements or refinancings are not materially more
restrictive, taken as a whole, with respect to such encumbrances and
restrictions than those contained in those agreements on the date of this
Indenture; and

 

(xv)         any
encumbrances or restrictions imposed by any amendments, modifications,
restatements, renewals, increases, supplements, refundings, replacements or
refinancings of the contracts, instruments or obligations referred to in
clauses (i) through (xiii) above; provided that the encumbrances or restrictions in such
amendments, modifications, restatements, renewals, increases, supplements,
refundings, replacements or refinancings are not materially more restrictive,
in the good faith judgment of the Board of Directors of the Company, taken as a
whole, than the encumbrances or restrictions prior to such amendment,
modification, restatement, renewal, increase, supplement, refunding,
replacement or refinancing.

 

Section 4.09                                Limitation
on Incurrence of Indebtedness.

 

(a)           The Company shall not, and shall not
permit any of its Restricted Subsidiaries to, directly or indirectly, create,
incur, issue, assume, guarantee or otherwise become directly or indirectly
liable, contingently or otherwise, with respect to (collectively, “incur”)
any Indebtedness (including Acquired Debt); provided, however,
that the Company may incur Indebtedness (including Acquired Debt) and any of
the Company’s Restricted Subsidiaries that is a Guarantor or, upon such
incurrence becomes a Guarantor, may incur Indebtedness if, in each case, the
Fixed Charge Coverage Ratio for the Company’s most recently ended four full
fiscal quarters for which internal financial statements are available
immediately preceding the date on which such additional Indebtedness is incurred
would have been at least 2.00 to 1, determined on a pro forma basis (including
a pro forma application of the net proceeds therefrom), as if the additional
Indebtedness had been incurred, as the case may be, at the beginning of such
four-quarter period.

 

(b)           The provisions of Section 4.09(a) hereof
shall not apply to the incurrence of any of the following items of Indebtedness
(collectively, “Permitted Debt”):

 

(i)            the
incurrence by the Company (and the Guarantee thereof by the Guarantors) of
Indebtedness and letters of credit (with letters of credit being deemed to have
a principal amount equal to the maximum potential liability of the Company and
its Subsidiaries thereunder) under Credit Facilities in an aggregate amount not
to exceed $290.0 million; less
the aggregate amount of all Net Proceeds of Asset Sales applied by the Company
or any Restricted Subsidiary since the date of this Indenture to repay any term
Indebtedness under a Credit Facility or to repay any revolving credit
Indebtedness under a Credit Facility and effect a corresponding commitment reduction
thereunder pursuant to Section 4.10;

 

(ii)           Indebtedness
outstanding on the Issue Date;

 

(iii)          the
incurrence by the Company (and the Guarantee thereof by the Guarantors) of
Indebtedness represented by the Notes and the related Guarantees thereof issued
on the Issue Date and the Exchange Notes and any related Guarantees to be
issued therefor pursuant to the Registration Rights Agreement;

 

56

 

(iv)          the incurrence by the Company or any of its
Restricted Subsidiaries of Indebtedness (x) represented by Capital Lease
Obligations, Attributable Debt, mortgage financings or purchase money
obligations, in each case incurred for the purpose of financing all or any of
the purchase price or cost of construction, installation, design, or
improvement of real or personal property, plant or equipment used in the
business of the Company or such Restricted Subsidiary (whether through the
direct acquisition of such assets or the acquisition of Equity Interests of any
Person owning such assets) and (y) represented solely by mortgage
financings incurred for any other purpose permitted under this Indenture, in an
aggregate principal amount not to exceed $10.0 million at any time outstanding;

 

(v)           the incurrence by the Company or any of its
Restricted Subsidiaries of Permitted Refinancing Indebtedness in exchange for,
or the net proceeds of which are used to renew, refund, refinance, defease,
discharge or replace Indebtedness permitted to be incurred by this Indenture
(other than Indebtedness permitted under clause (i) above);

 

(vi)          the incurrence by the Company or any of its
Restricted Subsidiaries of intercompany Indebtedness between or among the
Company and any of its Restricted Subsidiaries; provided, however, that (A) if the Company or
any Guarantor is the obligor on such Indebtedness and the payee is not the
Company or a Guarantor, such Indebtedness is expressly subordinated to the
prior payment in full in cash of all Obligations with respect to the Notes and
the Guarantees thereof and (B) (1) any subsequent issuance or
transfer of Equity Interests that results in any such Indebtedness being held
by a Person other than the Company or a Subsidiary thereof and (2) any
sale or other transfer of any such Indebtedness to a Person that is not either
the Company or a Restricted Subsidiary thereof shall be deemed, in each case,
to constitute an incurrence of such Indebtedness by the Company or such
Restricted Subsidiary, as the case may be, that was not permitted by this
clause (vi);

 

(vii)         the incurrence by the Company or any of its
Restricted Subsidiaries of Hedging Obligations that are incurred for the
purpose of fixing or hedging interest rate risk with respect to any floating
rate Indebtedness that is permitted by the terms of this Indenture to be
outstanding or commodity price risk or currency exchange rate risk, and in any
such case, not for speculative purposes;

 

(viii)        the Guarantee by the Company or any of the
Guarantors of Indebtedness of the Company or a Restricted Subsidiary of the
Company that was permitted to be incurred by another provision of this Section 4.09;

 

(ix)           the incurrence by the Company’s Unrestricted
Subsidiaries of Non-Recourse Debt, provided, however, that if any such Indebtedness ceases to be
Non-Recourse Debt of an Unrestricted Subsidiary, such event shall be deemed to
constitute an incurrence of Indebtedness by a Restricted Subsidiary of the
Company that was not permitted by this clause (ix);

 

(x)            Indebtedness consisting of Permitted
Investments of the kind described in clauses (vi) and (xi) of the
definition of “Permitted Investments”;

 

(xi)           Indebtedness arising from the honoring by a
bank or other financial institution of a check, draft or similar instrument
inadvertently (except in the case of daylight overdrafts) drawn against
insufficient funds in the ordinary course of business; provided, however,
that such Indebtedness is extinguished within five Business Days of incurrence;

 

57

 

(xii)          Indebtedness of the Company or any of its
Restricted Subsidiaries in respect of performance bonds, bankers’ acceptances,
workers’ compensation claims, surety and appeal bonds, completion guarantees,
payment obligations in connection with self insurance or similar requirements
(including Indebtedness represented by letters of credit for the account of the
Company or such Restricted Subsidiary, as the case may be, opened to provide
security for any of the foregoing) incurred in the ordinary course of business;

 

(xiii)         Indebtedness arising from agreements of the
Company or a Subsidiary providing for guarantee, indemnification, earnouts,
adjustment of purchase price or similar obligations, in each case, incurred or assumed
in connection with the disposition of any business, assets or Capital Interests
of the Company or of any Subsidiary, other guarantees of Indebtedness incurred
by any Person acquiring all or any portion of such business, assets or Capital
Interests of the Company or of any Subsidiary for the purpose of financing such
acquisition; provided
that the maximum aggregate liability in respect of all such Indebtedness shall
at no time exceed the gross proceeds actually received by the Company and the
Subsidiary in connection with such disposition;

 

(xiv)        Indebtedness of the Company or any of its
Restricted Subsidiaries to the extent the proceeds thereof are promptly used to
redeem the Notes in full or deposited to defease or discharge the Notes, in
each case, in accordance with this Indenture;

 

(xv)         Indebtedness incurred by Foreign Subsidiaries
in an aggregate principal amount outstanding not to exceed $5.0 million;

 

(xvi)        the incurrence by the Company or any of its
Restricted Subsidiaries of additional Indebtedness in an aggregate principal
amount (or accreted value, as applicable) at any time outstanding, including
all outstanding Permitted Refinancing Indebtedness incurred to refund,
refinance or replace any Indebtedness incurred pursuant to this clause (xvi),
not to exceed $35.0 million;

 

(xvii)       the issuance by any of the Company’s Restricted
Subsidiaries to the Company or to any of its Restricted Subsidiaries of shares
of preferred stock; provided,
however, that:

 

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

 

(b)           any sale or other transfer
of any such preferred stock to a Person that is not either the Company or a
Restricted Subsidiary of the Company,

 

will be deemed, in each case, to constitute
an issuance of such preferred stock by such Restricted Subsidiary that was not
permitted by this clause (xvii); and

 

(xviii)      contingent liabilities arising out of endorsements
of checks and other negotiable instruments for deposit or collection in the
ordinary course of business.

 

For purposes of determining
compliance with this Section 4.09, in the event that an item of
Indebtedness (or any portion thereof) meets the criteria of more than one of
the categories of Permitted Debt described in clauses (i) through
(xviii) above or is entitled to be incurred pursuant to Section 4.09(a),
the Company, in its sole discretion, will be permitted to divide and classify
such item of Indebtedness (or any portion thereof), on the date of incurrence,
and at any time and from time to time may reclassify such item in any manner
that complies with this Section 4.09. 
Accrual of interest, accretion or amortization of 

 

58

 

original issue discount, the
payment of interest on any Indebtedness in the form of additional Indebtedness
with the same terms, and the payment of dividends on Disqualified Stock in the
form of additional shares of the same class of Disqualified Stock for purposes
of this Section 4.09 shall not be deemed an incurrence of Indebtedness; provided, in each such case, that the amount is
included in Fixed Charges of the Company as accrued.  Notwithstanding any other provision of this Section 4.09,
the maximum amount of Indebtedness that the Company or any Restricted
Subsidiary may incur pursuant to this Section 4.09 shall not be deemed to
be exceeded solely as a result of fluctuations in exchange rates or currency
values.

 

Section 4.10          Asset Sales.

 

(a)           The Company shall not,
and shall not permit any of its Restricted Subsidiaries to, consummate an Asset
Sale unless:

 

(i)            the Company (or the 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 assets or Equity Interests issued or sold or otherwise disposed
of; and

 

(ii)           at least 75% of the consideration therefor
received by the Company or such Restricted Subsidiary is in the form of cash,
Cash Equivalents or a combination thereof; provided that the amount of (x) any liabilities (as
shown on the Company’s or such Restricted Subsidiary’s most recent balance
sheet) of the Company or any Restricted Subsidiary (other than contingent
liabilities and liabilities that are by their terms subordinated to the Notes
or any Guarantee thereof) that are assumed by the transferee of any such assets
pursuant to a customary assumption agreement that releases the Company or such
Restricted Subsidiary from further liability and (y) any securities, notes
or other obligations received by the Company or any such Restricted Subsidiary
from such transferee that are within 90 days of the receipt thereof converted
by the Company or such Restricted Subsidiary into cash (to the extent of the
cash received), shall be deemed to be cash for purposes of this provision.

 

Additionally, the following
shall also be deemed to be cash for purposes of this Section 4.10:

 

(A)          any assets of the kind
referred to in Section 4.10(b)(ii);

 

(B)           cash held in escrow as
security for any purchase price settlement, for damages in respect of a breach
of representations and warranties or covenants or for payment of other
contingent obligations in connection with the Asset Sale; and

 

(C)           any Marketable
Securities valued based on the Average Market Price of such Marketable
Securities at the time of the consummation of such Asset Sale.

 

(b)           Within 365 days
after the receipt of any Net Proceeds from an Asset Sale, the Company or any of
its Restricted Subsidiaries may apply such Net Proceeds:

 

(i)            to repay Senior Debt (and if the Senior
Debt repaid is revolving credit Indebtedness, to correspondingly reduce
commitments with respect thereto) and repay any other Permitted Debt secured by
a Lien on the property or assets that is the subject of such Asset Sale, or

 

59

 

(ii)           to the acquisition of a majority of the
assets of, or a majority of the voting Capital Interests of, another Person (or
division or business unit thereof) engaged principally in a Permitted Business,
the making of a capital expenditure or the acquisition of other tangible
long-term assets, in each case, that are used or useful in a Permitted Business.

 

Pending the
final application of any such Net Proceeds, the Company may temporarily reduce
revolving credit borrowings or otherwise invest such Net Proceeds in any manner
that is not prohibited by this Indenture.

 

(c)           Any Net Proceeds from
Asset Sales that are not applied or invested as provided in Section 4.10(b) will
be deemed to constitute “Excess Proceeds.”  When the aggregate amount of Excess Proceeds
exceeds $7.5 million, the Company will be required to make an offer to all
Holders of Notes and all holders of other Indebtedness that is pari passu with the Notes containing
provisions similar to those set forth in this Indenture with respect to offers
to purchase or redeem with the proceeds of sales of assets (an “Asset Sale
Offer”) to purchase the maximum principal amount of Notes and such other
indebtedness that may be purchased out of the Excess Proceeds, at an offer
price in cash in an amount equal to 100% of the principal amount thereof plus
accrued and unpaid interest and Additional Interest thereon, if any, to the
date of purchase, in accordance with the procedures set forth in Section 3.09
of this Indenture and such other Indebtedness. 
To the extent that any Excess Proceeds remain after consummation of an
Asset Sale Offer, the Company may use such Excess Proceeds for any purpose not
otherwise prohibited by this Indenture. 
If the aggregate principal amount of Notes surrendered by Holders
thereof and other pari passu
Indebtedness described above tendered into such Asset Sale Offer exceeds the
amount of Excess Proceeds, the respective aggregate amount of the Notes and
such other Indebtedness to be purchased shall be determined on a pro rata
basis, and the Trustee shall select the Notes to be purchased in such aggregate
amount on a pro rata basis.  Upon completion
of such offer to purchase, the amount of Excess Proceeds shall be reset at
zero.

 

(d)           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 and
regulations are applicable in connection with the repurchase of Notes pursuant
to an Asset Sale Offer.  To the extent
that the provisions of any securities laws or regulations conflict with this Section 4.10,
the Company shall comply with the applicable securities laws and regulations
and shall not be deemed to have breached its obligations under this Section 4.10
by virtue of such compliance.

 

Section 4.11          Transactions with
Affiliates.

 

(a)           The Company shall not,
and shall not permit any of its Restricted Subsidiaries 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 (each of the foregoing, an “Affiliate
Transaction”), unless

 

(i)            such Affiliate Transaction is on terms that
are no less favorable to the Company or the relevant Restricted Subsidiary than
those that would have been obtained in a comparable transaction by the Company
or such Restricted Subsidiary with an unrelated Person; and

 

(ii)           the Company delivers to the Trustee (A) with
respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $2.5 million,
a resolution of the Board of Directors set forth in an Officers’ Certificate
certifying that such Affiliate Transaction complies with clause (i) above
and that such Affiliate Transaction has either been approved by a majority of
the disinterested members of the Board of Directors or

 

60

 

has been approved in an opinion issued by an accounting, appraisal or
investment banking firm of national standing as being fair to the Holders from
a financial point of view and (B) with respect to any Affiliate
Transaction or series of related Affiliate Transactions involving aggregate
consideration in excess of $15.0 million (other than Affiliate
Transactions in connection with joint venture, joint bidding, joint marketing
or other similar arrangements for the provision of services in a Permitted
Business), an opinion as to the fairness to the Holders of such Affiliate
Transaction from a financial point of view issued by an accounting, appraisal
or investment banking firm of national standing.

 

(b)           Notwithstanding the
foregoing, the following items shall not be deemed to be Affiliate Transactions
and, therefore, will not be subject to the provisions of Section 4.11(a):

 

(i)            any consulting or employment agreement or
arrangements, incentive compensation plan, benefit arrangements or plan,
severance or expense reimbursement arrangement or similar arrangements entered
into by the Company or any of its Restricted Subsidiaries in the ordinary
course of business of the Company or any of its Restricted Subsidiaries and
payments pursuant thereto;

 

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

 

(iii)          payment of reasonable directors’ fees to
directors of the Company or any Restricted Subsidiary of the Company and other
reasonable fees, compensation, benefits and indemnities paid or entered into
with directors, officers and employees of the Company or any Restricted Subsidiary
of the Company;

 

(iv)          any issuance of Equity Interests and the
granting or performance of registration rights in respect of any Equity
Interests, which rights have been approved by the Board of Directors of the Company;

 

(v)           the sale or purchase of goods or provision
of services in the ordinary course of business, at terms comparable to those
available to third party customers or suppliers, to or with an Affiliate which
would constitute an Affiliate Transaction solely as a result of the Company or
any of its Restricted Subsidiaries being in or under common control with such Affiliate;

 

(vi)          any agreement in effect on the date of this
Indenture or any amendment thereto or transaction contemplated thereby (and any
replacement or amendment of any such agreement so long as any such amendment or
replacement thereof is not materially less favorable to the Holders than the
original agreement in effect on the date of this Indenture);

 

(vii)         Restricted Payments that are permitted by Section 4.07;

 

(viii)        transactions with a joint venture engaged in a
Permitted Business; provided
that all the outstanding ownership interests of such joint venture are owned
only by the Company, its Restricted Subsidiaries and Persons that are not Affiliates
of the Company;

 

(ix)           the payment to any Permitted Holder of the
Management Fees and the other payments and agreements described under the
caption “Certain Relationships and Related Party Transactions” in the Offering
Memorandum and any replacement or amendment of any such agreement so long as
any such amendment or replacement thereof is not materially less favorable to
the Holders;

 

61

 

(x)            repurchases of Notes if repurchased on the
same terms as offered to non-affiliates; and

 

(xi)           loans or advances to employees in the
ordinary course of business not to exceed $1.0 million in the aggregate at
any one time outstanding.

 

Section 4.12          Liens.

 

(a)           The Company shall not,
and shall not permit any of its Restricted Subsidiaries to, directly or
indirectly, create, incur, assume or suffer to exist any Lien securing
Indebtedness ranking pari passu
with or subordinated to the Notes on any asset now owned or hereafter acquired,
or any income or profits therefrom, except Permitted Liens, unless
contemporaneously therewith:

 

(i)            in the case of any Lien securing
Indebtedness that ranks pari passu
with the Notes or the Guarantees thereof, effective provision is made to secure
the Notes or such Guarantee, as the case may be, at least equally and ratably
with or prior to such obligation with a Lien on the same collateral; and

 

(ii)           in the case of any Lien securing Indebtedness that is subordinated in right of
payment to the Notes or the Guarantees thereof, effective
provision is made to secure the Notes or such Guarantee, as the case may be,
with a Lien on the same collateral that is prior to the Lien securing such
subordinated obligation,

 

in each case,
for so long as such Indebtedness is secured by such Lien (such Lien, a “Primary
Lien”).

 

(b)           Any Lien created for
the benefit of the Holders of the Notes pursuant to the immediately preceding
paragraph shall automatically and unconditionally be released and discharged
upon the release and discharge of the Primary Lien, without any further action
on the part of any Person.

 

Section 4.13          Corporate Existence.

 

Subject to Article 5
hereof, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect (i) its corporate existence,
and the corporate, partnership or other existence of each of its Restricted
Subsidiaries, in accordance with the respective organizational documents (as
the same may be amended from time to time) of the Company or any such
Restricted Subsidiary and (ii) the material rights (charter and statutory),
licenses and franchises of the Company and its Restricted Subsidiaries; provided
that the Company shall not be required to preserve any such right, license or
franchise, or the corporate, partnership or other existence of any of its
Restricted Subsidiaries, if the Company in good faith shall determine that the
preservation thereof is no longer desirable in the conduct of the business of
the Company and its Restricted Subsidiaries, taken as a whole.

 

Section 4.14          Offer to Repurchase
upon Change of Control.

 

(a)           Upon the occurrence of
a Change of Control, each Holder of Notes will have the right to require the
Company to repurchase all or any part (equal to $1,000 or an integral multiple
thereof) of such Holder’s Notes pursuant to the offer described below (the “Change
of Control Offer”) at an offer price in cash equal to 101% of the aggregate
principal amount thereof plus accrued and unpaid interest and Additional
Interest thereon, if any, to the date of purchase (the “Change of Control
Payment”).  Within 30 days
following any Change of Control, the Company will mail a notice to each Holder
stating:

 

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(i)            that a Change of Control Offer is being
made pursuant to this Section 4.14 and, to the extent lawful, that all
Notes properly tendered pursuant to such Change of Control Offer will be
accepted for payment by the Company;

 

(ii)           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”);

 

(iii)          that any Note not properly tendered or
accepted for payment will remain outstanding and shall continue to accrue interest
in accordance with the terms hereof;

 

(iv)          that, unless the Company defaults in the
payment of the Change of Control Payment, all Notes accepted for payment
pursuant to the Change of Control Offer will cease to accrue interest and
Additional Interest, if any, on the Change of Control Payment Date;

 

(v)           that Holders electing to have any Notes
purchased pursuant to a Change of Control Offer will be required to surrender
such Notes, with the form entitled “Option of Holder to Elect Purchase” on the
reverse of such Notes completed, or transfer by book entry transfer, to the
Company, the Depository (if appointed by the Company) or a Paying Agent prior
to the close of business at least three Business Days preceding the Change of
Control Payment Date;

 

(vi)          that Holders shall be entitled to withdraw
their tendered Notes and their election to require the Company to purchase such
Notes; provided that the
Company, the Depository or the Paying Agent, as the case may be, receives, not
later than the close of business on the 30th day following the date of the
Change of Control notice, a facsimile transmission or letter setting forth the
name of the Holder, the principal amount of Notes tendered for purchase, and a
statement that such Holder is withdrawing its tendered Notes and its election
to have such Notes purchased;

 

(vii)         that if the Company is redeeming less than all
of the Notes, the Holders of the remaining Notes will be issued new Notes and
such new Notes will be equal in principal amount to the unpurchased portion of
the Notes surrendered.  The unpurchased
portion of the Notes must be equal to $1,000 or an integral multiple thereof or
transferred by book-entry transfer; and

 

(viii)        the other instructions, as determined by the
Company, consistent with this Section 4.14, that a Holder must follow.

 

The notice, if
mailed in a manner herein provided, shall be conclusively presumed to have been
given, whether or not the Holder receives such notice.  If (x) the notice is mailed in a manner
herein provided and (y) any Holder fails to receive such notice or a Holder
receives such notice but it is defective, such Holder’s failure to receive such
notice or such defect shall not affect the validity of the proceedings for the
purchase of the Notes as to all other Holders that properly received such
notice without defect.

 

(b)           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 and
regulations are applicable in connection with the repurchase of the Notes as a
result of a Change of Control.  To the extent
that the provisions of any securities laws or regulations conflict with the
Change of Control 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 under this Section 4.14 by virtue of such compliance.

 

63

 

(c)           On the Change of
Control Payment Date, the Company shall, to the extent lawful, (1) accept
for payment all Notes or portions thereof properly tendered and not withdrawn
pursuant to the Change of Control Offer, (2) deposit with the Paying Agent
an amount equal to the Change of Control Payment in respect of all Notes or portions
thereof so tendered and (3) deliver or cause to be delivered to the
Trustee the Notes so accepted together with an Officers’ Certificate stating
the aggregate principal amount of Notes or portions thereof being purchased by
the Company.  The Paying Agent will
promptly mail to each Holder of Notes so tendered the Change of Control Payment
for such Notes, and the Trustee will promptly authenticate and mail (or cause
to be transferred by book entry) to each Holder a new Note equal in principal
amount to any unpurchased portion of the Notes surrendered, if any; provided that each such new Note
will be in a principal amount of $1,000 or an integral multiple thereof.  The Company will publicly announce the
results of the Change of Control Offer on or as soon as practicable after the
Change of Control Payment Date.

 

The Company shall not be
required to make a Change of Control Offer upon a Change of Control if (1) a
third party makes the Change of Control Offer in the manner, at the times and
otherwise in compliance with the requirements set forth in this 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, (2) notice
of redemption has been given pursuant to this Indenture as described above
under Section 3.07 unless and until there is a default in payment of the
applicable redemption price, or (3) if, in connection with or in
contemplation of any Change of Control, it or a third party has made an offer
to purchase (an “Alternate Offer”) any and all Notes validly tendered at a cash
price equal to or higher than the Change of Control Payment and has purchased
all Notes properly tendered and not withdrawn in accordance with the terms of
such Alternate Offer.  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 the Change of Control Offer.  Notes repurchased pursuant to a Change of Control
Offer will be retired and cancelled.

 

Section 4.15          Limitation on Senior
Subordinated Debt.

 

The Company shall not incur
any Indebtedness that is contractually subordinate in right of payment to any
Senior Debt of the Company unless it is pari
passu or subordinate in right of payment to the Notes.  No Guarantor will incur any Indebtedness that
is contractually subordinate in right of payment to the Senior Debt of such
Guarantor unless it is pari passu
or subordinate in right of payment to such Guarantor’s Guarantee of the
Notes.  For purposes of the foregoing, no
Indebtedness will be deemed to be subordinated in right of payment to any other
Indebtedness of the Company or any Guarantor, as applicable, solely by reason
of any Liens or guarantees arising or created in respect of such other Indebtedness
of the Company or any Guarantor or by virtue of the fact that the holders of
any secured Indebtedness have entered into intercreditor agreements giving one
or more of such holders priority over the other holders in the collateral held
by them.

 

Section 4.16          Business Activities.

 

The Company shall not, and
the Company shall not permit any of its Restricted Subsidiaries to, engage in
any business other than Permitted Businesses, except to such extent as would
not be material to the Company and its Restricted Subsidiaries taken as a
whole.

 

Section 4.17          Payments for Consent.

 

Neither the Company nor any
of its Subsidiaries will, directly or indirectly, pay or cause to be paid any
consideration, whether by way of interest, fee or otherwise, to any Holder of
any Notes for or as an inducement to any consent, waiver or amendment of any of
the terms or provisions of this Indenture 

 

64

 

or the Notes unless such
consideration is offered to be paid or is paid to all Holders of the Notes that
consent, waive or agree to amend in the time frame set forth in the
solicitation documents relating to such consent, waiver or amendment.

 

Section 4.18          Subsidiary Guarantees.

 

If the Company or any of its
Restricted Subsidiaries shall acquire or create another Domestic Subsidiary
after the date of this Indenture, then such newly acquired or created Domestic
Subsidiary shall become a Guarantor and execute a supplemental Indenture and
deliver an opinion of counsel to the Trustee within 20 Business Days of the
date on which it was acquired or created, in accordance with the terms of this
Indenture; provided that
the foregoing shall not apply to any Subsidiary that has properly been
designated as an Unrestricted Subsidiary in accordance with this Indenture for
so long as it continues to constitute an Unrestricted Subsidiary.

 

ARTICLE 5

 

SUCCESSORS

 

Section 5.01          Merger, Consolidation
or Sale of All or Substantially All Assets.

 

(a)           The Company may not
consolidate or merge with or 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 another
corporation, Person or entity unless:

 

(i)      either:  (A) the
Company is the surviving corporation; or (B) the Person formed by or
surviving any such consolidation or merger (if other than the Company) or to
which such sale, assignment, transfer, lease, conveyance or other disposition shall
have been made is a corporation, limited liability company or limited
partnership organized or existing under the laws of the United States of
America, any state thereof or the District of Columbia; provided that, in the case of a
limited liability company or a partnership, a co-obligor of the Notes is a
corporation;

 

(ii)     the entity or Person formed by or surviving any
such consolidation or merger (if other than the Company) or the entity or
Person to which such sale, assignment, transfer, lease, conveyance or other
disposition shall have been made assumes all the obligations of the Company
under the Registration Rights Agreement, the Notes and this Indenture pursuant
to a supplemental indenture in a form reasonably satisfactory to the Trustee;

 

(iii)    immediately after giving effect to such transaction
no Default or Event of Default exists; and

 

(iv)    except in the case of a consolidation, amalgamation
or merger with or into or a sale, assignment, transfer, conveyance or other
disposition of all or substantially all of the property and assets of the
Company and any of its Restricted Subsidiaries to a Wholly Owned Restricted
Subsidiary of the Company, the Company or the entity or 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, will, at the time of such transaction and after giving
pro forma effect thereto as if such transaction had occurred at the beginning of
the applicable four-quarter period, (A) be permitted to incur at least
$1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio
test set forth in Section 4.09(a) or

 

65

 

(B) the Company would have a Fixed
Charge Coverage Ratio that is greater than the Fixed Charge Coverage Ratio of
the Company immediately prior to such transaction.

 

(b)           No Guarantor may
consolidate with or merge with or into (whether or not such Guarantor is the
surviving Person), another corporation, Person or entity whether or not
affiliated with such Guarantor unless:

 

(i)      subject to the provisions of the following
paragraph, the Person formed by or surviving any such consolidation or merger
(if other than such Guarantor) assumes all the obligations of such Guarantor,
pursuant to a supplemental indenture in form and substance reasonably
satisfactory to the Trustee, under the Notes, this Indenture and the
Registration Rights Agreement;

 

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

 

(iii)    either:  (A) the
Company would be permitted by virtue of the Company’s pro forma Fixed Charge
Coverage Ratio, immediately after giving effect to such transaction, to incur
at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage
Ratio test set forth in Section 4.09(a); or (B) the Company would
have a Fixed Charge Coverage Ratio that is greater than the Fixed Charge
Coverage Ratio of the Company immediately prior to such transaction.

 

(c)           In the event of a sale
or other disposition of all of the assets of any Guarantor, by way of merger,
consolidation or otherwise, or a sale or other disposition of all of the
Capital Interests of any Guarantor, then such Guarantor (in the event of a sale
or other disposition, by way of such a merger, consolidation or otherwise, of
all of the Capital Interests of such Guarantor) or the corporation acquiring
the property (in the event of a sale or other disposition of all of the assets
of such Guarantor) will be released and relieved of any obligations under its
Guarantee; provided that
the Net Proceeds of such sale or other disposition are applied in accordance
with Section 4.10.

 

(d)           This Section 5.01
will not apply to a merger of the Company or a Guarantor with an Affiliate
solely for the purpose, and with the effect, of reincorporating the Company or
such a Guarantor, as the case may be, in another jurisdiction of the United
States of America.  In addition, nothing
in this Section 5.01 will prohibit any Restricted Subsidiary from
consolidating or amalgamating with, merging with or into or conveying,
transferring or leasing, in one transaction or a series of transactions, all or
substantially all of its assets to the Company or another Restricted
Subsidiary.

 

Section 5.02          Successor Corporation
Substituted.

 

Upon any consolidation or
merger, or any sale, assignment, transfer, lease, conveyance or other
disposition of all or substantially all of the assets of the Company in
accordance with Section 5.01 hereof, the successor corporation formed by
such consolidation or into or with which the Company is merged or to which such
sale, assignment, transfer, lease, conveyance or other disposition is made
shall succeed to, and be substituted for (so that from and after the date of
such consolidation, merger, sale, lease, conveyance or other disposition, the
provisions of this Indenture referring to the Company shall refer instead to
the successor corporation and not to the Company), and may exercise every right
and power of the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein; provided that the
predecessor Company shall not be relieved from the obligation to pay the
principal of and interest and Additional Interest, if any, on the Notes except
in the case 

 

66

 

of a sale, assignment,
transfer, conveyance or other disposition of all of the Company’s assets that
meets the requirements of Section 5.01 hereof.

 

ARTICLE 6

 

DEFAULTS AND REMEDIES

 

Section 6.01          Events of Default.

 

(a)           Each of the following
shall be an “Event of Default” for purposes of this Indenture:

 

(i)      default for 30 days in the payment when due
of interest on, or Additional Interest, if any, on, the Notes;

 

(ii)     default in payment when due of the principal of or
premium, if any, on the Notes;

 

(iii)    a default by the Company or any Guarantor in the
observance or performance of any other covenant or agreement contained in this
Indenture which default continues for a period of 60 days after the
Company or such Guarantor receives written notice specifying the default (and
demanding that such default be remedied and stating that such notice is a “Notice
of Default”) from the Trustee or the Holders of at least 25% of the outstanding
principal amount of the Notes (except in the case of a default with respect to Section 5.01,
which will constitute an Event of Default with such notice requirement but
without such passage of time requirement);

 

(iv)    the failure to pay at final maturity (giving effect
to any applicable grace periods and any extensions thereof) the principal
amount of any Indebtedness of the Company, any Significant Subsidiary of the
Company or any group of Restricted Subsidiaries of the Company that, taken
together, would constitute a Significant Subsidiary, or the acceleration of the
final stated maturity of any such Indebtedness, if the aggregate principal
amount of such Indebtedness, together with the principal amount of any other
such Indebtedness in default for failure to pay principal at final maturity or
which has been accelerated, aggregates $10.0 million or more at any time
and such failure shall not have been cured or waived within 30 days
thereof;

 

(v)     failure by the Company, any Significant Subsidiary
of the Company or any group of Restricted Subsidiaries of the Company that,
taken together, would constitute a Significant Subsidiary, to pay final and
non-appealable judgments entered by a court or courts of competent jurisdiction
(to the extent such judgments are not paid or covered by an insurance carrier
or pursuant to which the Company is not indemnified by a third party who has
agreed to honor such obligation) aggregating in excess of $10.0 million,
which judgments are not paid, discharged or stayed for a period of 60 days
after such judgments have become final and non-appealable;

 

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

 

(1)           commences a voluntary case,

 

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

 

67

 

(3)           consents to the appointment of a Custodian
of it or for all or substantially all of its property, makes a general
assignment for the benefit of its creditors, or

 

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

 

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

 

(1)           is for relief against the Company or any of
its Restricted Subsidiaries that is a Significant Subsidiary in an involuntary
case,

 

(2)           appoints a Custodian of the Company or any
of its Restricted Subsidiaries that is a Significant Subsidiary or for all or
substantially all of the property of the Company or any of its Restricted
Subsidiaries that is a Significant Subsidiary, or

 

(3)           orders the liquidation of the Company or any
of its Restricted Subsidiaries that is a Significant Subsidiary,

 

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

 

(viii)  except as permitted by this Indenture, any Guarantee
shall be held in any judicial proceeding to be unenforceable or shall cease for
any reason to be in full force and effect or any Guarantor, or any Person
acting on behalf of any Guarantor, shall deny or disaffirm its obligation under
its Guarantee.

 

(b)           The Company shall
deliver to the Trustee annually a statement regarding compliance with this
Indenture, and the Company shall upon becoming aware of any Default or Event of
Default, to deliver to the Trustee a statement specifying such Default or Event
of Default.

 

Section 6.02          Acceleration.

 

If any Event of Default
occurs and is continuing, the Trustee or the Holders of at least 25% in
principal amount of the then outstanding Notes shall notify the Company in
writing, specifying the Event of Default, demanding that the Default be
remedied and stating that such notice is a “Notice of Default” following which
such Holders may declare all the Notes to be due and payable immediately.  Upon such declaration of acceleration
pursuant to a Notice of Default, the aggregate principal of and accrued and
unpaid interest on the outstanding Notes shall become due and payable without
further action or notice; provided, however, that in the event of a declaration of acceleration
because an Event of Default set forth in Section 6.01(a)(iv) has
occurred and is continuing, such declaration of acceleration shall be
automatically rescinded and annulled if the failure to pay or acceleration
triggering such Event of Default pursuant to Section 6.01(a)(iv) shall
be remedied or cured or waived by the holders of the relevant Indebtedness
within 60 days after the declaration of acceleration with respect
thereto.  Notwithstanding the foregoing,
in the case of an Event of Default arising under Section 6.01(a)(vi) or
(vii), with respect to the Company, any Significant Subsidiary or any group of
Restricted Subsidiaries that, taken together, would constitute a Significant
Subsidiary, all outstanding Notes will become due and payable without further
action or notice.  If any Designated
Senior Debt is outstanding, the Company may only pay amounts due on the notes
if otherwise permitted by Article 13. 
Holders of the Notes may not enforce this Indenture or the Notes except
as provided in this Indenture or the Trust Indenture Act.  Subject to certain limitations, Holders of a
majority in principal amount of the then outstanding Notes may direct the
Trustee in its exercise of any trust or power. 
The Trustee may withhold from Holders of the Notes notice of

 

68

 

any continuing Default or
Event of Default (except a Default or Event of Default relating to the payment
of principal or interest) if it determines that withholding notice is in their
interest.

 

Section 6.03          Other Remedies.

 

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

 

The Trustee may maintain a
proceeding even if it does not possess any of the Notes or does not produce any
of them in the proceeding.  A delay or
omission by the Trustee or any Holder of a Note in exercising any right or
remedy accruing upon an Event of Default shall not impair the right or remedy
or constitute a waiver of or acquiescence in the Event of Default.  All remedies are cumulative to the extent
permitted by law.

 

Section 6.04          Waiver of Past
Defaults.

 

The Holders of a majority in
aggregate principal amount of the then outstanding Notes by notice to the
Trustee may on behalf of the Holders of all of the Notes waive, rescind or
cancel any declaration of an existing or past Default or Event of Default and
its consequences under this Indenture except a continuing Default or Event of
Default in the payment of interest on, or the principal of, the Notes (other
than nonpayment of principal or interest that has become due solely because of
acceleration).  Upon any such waiver,
such Default shall cease to exist, and any Event of Default arising therefrom
shall be deemed to have been cured for every purpose of this Indenture; but no
such waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.

 

Section 6.05          Control by Majority.

 

Holders of a majority in
aggregate principal amount of the then outstanding Notes will have the right to
direct the time, method and place of conducting any proceeding for exercising
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 this
Indenture or that the Trustee determines is unduly prejudicial to the rights of
other Holders of a Note or that would involve the Trustee in personal liability.

 

Section 6.06          Limitation on Suits.

 

Subject to Section 6.07 hereof, no Holder of a Note may
pursue any remedy with respect to this Indenture or the Notes unless:

 

(1)           such Holder has previously given the Trustee notice that an Event of
Default is continuing;

 

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

 

(3)           Holders of the Notes have offered the Trustee 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

 

69

 

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

 

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

 

Section 6.07          Rights of Holders of Notes to Receive
Payment.

 

Notwithstanding any other
provision of this Indenture, the right of any Holder of a Note to receive
payment of principal, premium, if any, and Additional Interest, if any, and
interest on the Note, on or after the respective due dates expressed in the
Note, or to bring suit for the enforcement of any such payment on or after such
respective dates, shall not be impaired or affected without the consent of such
Holder.

 

Section 6.08          Collection Suit by
Trustee.

 

If an Event of Default
specified in Section 6.01(a)(i) or (ii) hereof occurs and is continuing, the Trustee is authorized to
recover judgment in its own name and as trustee of an express trust against the
Company for the whole amount of principal of, premium, if any, and Additional
Interest, if any, and interest remaining unpaid on the Notes and interest on
overdue principal and, to the extent lawful, interest and such further amount
as shall be sufficient to cover the costs and expenses of collection, including
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel.

 

Section 6.09          Restoration of Rights
and Remedies.

 

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

 

Section 6.10          Rights and Remedies
Cumulative.

 

Except as otherwise provided
with respect to the replacement or payment of mutilated, destroyed, lost or
stolen Notes in Section 2.07 hereof, 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 6.11          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.

 

70

 

Section 6.12          Trustee May File
Proofs of Claim.

 

The Trustee is authorized to
file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and the Holders of the Notes allowed in any
judicial proceedings relative to the Company (or any other obligor upon the
Notes including the Guarantors), its creditors or its property and shall be
entitled and empowered to participate as a member in any official committee of
creditors appointed in such matter and to collect, receive and distribute any
money or other property payable or deliverable on any such claims and any
custodian in any such judicial proceeding is hereby authorized by each Holder
to make such payments to the Trustee, and in the event that the Trustee shall
consent to the making of such payments directly to the Holders, to pay to the
Trustee any amount due to it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 7.07 hereof.  To the extent that the payment of any such
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 7.07
hereof out of the estate in any such proceeding, shall be denied for any
reason, payment of the same shall be secured by a Lien on, and shall be paid
out of, any and all distributions, dividends, money, securities and other
properties that the Holders may be entitled to receive in such proceeding
whether in liquidation or under any plan of reorganization or arrangement or
otherwise.  Nothing herein contained
shall be deemed to authorize the Trustee to authorize or consent to or accept
or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Notes or the rights of any Holder, or
to authorize the Trustee to vote in respect of the claim of any Holder in any
such proceeding.

 

Section 6.13          Priorities.

 

If the Trustee collects any
money pursuant to this Article 6, it shall pay out the money in the following
order:

 

(i)      to the
Trustee, its agents and attorneys for amounts due under Section 7.07
hereof, including payment of all compensation, expenses and liabilities
incurred, and all advances made, by the Trustee and the costs and expenses of
collection;

 

(ii)     to Holders
of Notes for amounts due and unpaid on the Notes for principal, premium, if
any, and Additional Interest, if any, and interest, ratably, without preference
or priority of any kind, according to the amounts due and payable on the Notes
for principal, premium, if any, and Additional Interest, if any, and interest,
respectively; and

 

(iii)    to the
Company or to such party as a court of competent jurisdiction shall direct
including a Guarantor, if applicable.

 

The Trustee may fix a record
date and payment date for any payment to Holders of Notes pursuant to this Section 6.13.

 

Section 6.14          Undertaking for Costs.

 

In any suit for the
enforcement of any right or remedy under this Indenture or in any suit against
the Trustee for any action taken or omitted by it as a Trustee, a court in its
discretion may require the filing by any party litigant in the suit of an
undertaking to pay the costs of the suit, and the court in its discretion may
assess reasonable costs, including reasonable attorneys’ fees and expenses,
against any party litigant in the suit, having due regard to the merits and
good faith of the claims or defenses made by 

 

71

 

the party litigant.  This Section 6.14 does not apply to a
suit by the Trustee, a suit by a Holder of a Note pursuant to Section 6.07
hereof, or a suit by Holders of more than 10% in principal amount of the then
outstanding Notes.

 

ARTICLE 7

 

TRUSTEE

 

Section 7.01          Duties of Trustee.

 

(a)           If an Event of Default has occurred and is continuing, the Trustee
shall exercise such of the rights and powers vested in it by this Indenture,
and use the same degree of care and skill in its exercise, as a prudent Person
would exercise or use under the circumstances in the conduct of such Person’s
own affairs.

 

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

 

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

 

(ii)     in the
absence of bad faith on its part, the Trustee may conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed therein,
upon certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture.  However,
in the case of any such certificates or opinions which by any provision hereof
are specifically required to be furnished to the Trustee, the Trustee shall
examine the certificates and opinions to determine whether or not they conform
to the requirements of this Indenture.

 

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

 

(i)      this
paragraph does not limit the effect of paragraph (b) of this Section 7.01;

 

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

 

(iii)    the Trustee
shall not be liable with respect to any action it takes or omits to take in
good faith in accordance with a direction received by it pursuant to Section 6.05
hereof.

 

(d)           Whether or not therein expressly so provided, every provision of this
Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b) and
(c) of this Section 7.01.

 

(e)           The Trustee shall be under no obligation to exercise any of its rights
or powers under this Indenture at the request or direction of any of the
Holders of the Notes unless such Holders have offered to the Trustee indemnity
or security reasonably satisfactory to it against any loss, liability or expense.

 

72

 

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

 

Section 7.02          Rights of Trustee.

 

(a)           The Trustee may conclusively rely upon any document believed by it to
be genuine and to have been signed or presented by the proper Person.  The Trustee need not investigate any fact or
matter stated in the document, 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 sole cost of the
Company and shall incur no liability or additional liability of any kind by
reason of such inquiry or investigation.

 

(b)           Before the Trustee acts or refrains from acting, it may require an
Officers’ Certificate or an Opinion of Counsel or both.  The Trustee shall not be liable for any
action it takes or omits to take in good faith in reliance on such Officers’
Certificate or Opinion of Counsel.  The
Trustee may consult with counsel of its selection and the advice of such counsel
or any Opinion of Counsel shall be full and complete authorization and
protection from liability in respect of any action taken, suffered or omitted
by it hereunder in good faith and in reliance thereon.

 

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

 

(d)           The Trustee shall not be liable for any action it takes or omits to take
in good faith that it believes to be authorized or within the rights or powers
conferred upon it by this Indenture.

 

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

 

(f)            None of the provisions of this Indenture
shall require the Trustee to expend or risk its own funds or otherwise to incur
any liability, financial or otherwise, 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 indemnity
satisfactory to it against such risk or liability is not assured to it.

 

(g)           The Trustee shall not be deemed to have notice of any Default or Event
of Default unless a Responsible Officer of the Trustee has actual knowledge
thereof or unless written notice of any event which is in fact such a Default
is received by the Trustee at the Corporate Trust Office of the Trustee, and
such notice references the Notes and this Indenture.

 

(h)           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.

 

(i)            The rights, privileges, protections,
immunities and benefits given to the Trustee, including, without limitation,
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.

 

73

 

(j)            In the event the Company is required to pay
Additional Interest, the Company will provide written notice to the Trustee of
the Company’s obligation to pay Additional Interest no later than 15 days prior
to the next Interest Payment Date, which notice shall set forth the amount of
the Additional Interest to be paid by the Company.  The Trustee shall not at any time be under
any duty or responsibility to any Holders to determine whether the Additional
Interest is payable and the amount thereof.

 

Section 7.03          Individual Rights of
Trustee.

 

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

 

Section 7.04          Trustee’s Disclaimer.

 

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

 

Section 7.05          Notice of Defaults.

 

If a Default occurs and is
continuing and if it is known to the Trustee, the Trustee shall mail to Holders
of Notes a notice of the Default within 90 days after it occurs.  Except in the case of a Default relating to
the payment of principal, premium, if any, or interest and Additional Interest,
if any, on any Note, the Trustee may withhold from the Holders notice of any
continuing Default if and so long as a committee of its Responsible Officers in
good faith determines that withholding the notice is in the interests of the
Holders of the Notes.

 

Section 7.06          Reports by Trustee to
Holders of the Notes.

 

(a)           Within 60 days after
each May 15, beginning with the May 15 following the date of this
Indenture, and for so long as Notes remain outstanding, the Trustee shall mail
to the Holders of the Notes a brief report dated as of such reporting date that
complies with Section 313(a) of the Trust Indenture Act (but if no
event described in Section 313(a) of the Trust Indenture Act has
occurred within the twelve months preceding the reporting date, no report need
be transmitted).  The Trustee also shall
comply with Section 313(b)(2) of the Trust Indenture Act.  The Trustee shall also transmit by mail all
reports as required by Section 313(c) of the Trust Indenture Act.

 

(b)           A copy of each report
at the time of its mailing to the Holders of Notes shall be mailed to the
Company and filed with the SEC and each stock exchange on which the Notes are
listed in accordance with Section 313(d) of the Trust Indenture
Act.  The Company shall promptly notify
the Trustee when the Notes are listed on any stock exchange.

 

74

 

Section 7.07          Compensation and
Indemnity.

 

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

 

(b)           The Company and the
Guarantors, jointly and severally, shall indemnify the Trustee for, and hold
the Trustee harmless against, any and all loss, damage, claims, liability or
expense (including attorneys’ fees) incurred by it in connection with the
acceptance or administration of this trust and the performance of its duties
hereunder (including the costs and expenses of enforcing this Indenture against
the Company or any of the Guarantors (including this Section 7.07) or
defending itself against any claim whether asserted by any Holder, the Company
or any Guarantor, or liability in connective with the acceptance, exercise or
performance of any of its powers or duties hereunder).  The Trustee shall notify the Company in
writing promptly of any claim of which the Trustee has received written notice
for which it may seek indemnity.  Failure
by the Trustee to so notify the Company shall not relieve the Company of its
obligations hereunder.  The Company shall
defend the claim and the Trustee will cooperate in the defense of such claim
and may have separate counsel and the Company shall pay the fees and expenses
of such counsel.  The Company need not
(x) pay for any settlement made without its written consent, which shall
not be unreasonably withheld, or (y) reimburse any expense or indemnify
against any of the foregoing loss, liability, damage, claim or expense incurred
by the Trustee through the Trustee’s own willful misconduct, negligence or bad
faith.

 

(c)           The obligations of the
Company under this Section 7.07 shall survive the satisfaction and
discharge of this Indenture or the earlier resignation or removal of the
Trustee.

 

(d)           To secure the payment
obligations of the Company and the Guarantors in this Section 7.07, the
Trustee shall have a Lien prior to the Notes on all money or property held or
collected by the Trustee, except that held in trust to pay principal and
interest on particular Notes.  Such Lien
shall survive the satisfaction and discharge of this Indenture.

 

(e)           When the Trustee incurs
expenses or renders services after an Event of Default specified in Section 6.01(a)(vi) or
(vii) hereof occurs, the expenses and the compensation for the services
(including the reasonable fees and expenses of its agents and counsel) are
intended to constitute expenses of administration under any Bankruptcy Law.

 

(f)            The Trustee shall
comply with the provisions of Section 313(b)(2) of the Trust
Indenture Act to the extent applicable.

 

Section 7.08          Replacement of
Trustee.

 

(a)           A resignation or
removal of the Trustee and appointment of a successor Trustee shall become
effective only upon the successor Trustee’s acceptance of such appointment as
provided in this Section 7.08.

 

(b)           The Trustee may resign
in writing at any time and be discharged from the trust hereby created by so
notifying the Company.  The Holders of a
majority in principal amount of the then 

 

75

 

outstanding Notes may remove
the Trustee by so notifying the Trustee and the Company in writing.  The Company may remove the Trustee if:

 

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

 

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

 

(iii)    a custodian or public officer takes charge of the
Trustee or its property; or

 

(iv)    the Trustee becomes incapable of acting as Trustee
hereunder or with respect to the Notes.

 

(c)           If the Trustee resigns
or is removed or if a vacancy exists in the office of Trustee for any reason,
the Company shall promptly appoint a successor Trustee.  Within one year after the successor Trustee
takes office, the Holders of a majority in principal amount of the then
outstanding Notes may appoint a successor Trustee to replace the successor
Trustee appointed by the Company.

 

(d)           If a successor Trustee
does not take office within 60 days after the retiring Trustee resigns or is
removed, the retiring Trustee (at the Company’s expense), the Company or the
Holders of at least 10% in principal amount of the then outstanding Notes may
petition any court of competent jurisdiction for the appointment of a successor
Trustee.

 

(e)           If the Trustee, after
written request by any Holder who has been a Holder for at least six months,
fails to comply with Section 7.10 hereof, such Holder may petition any
court of competent jurisdiction for the removal of the Trustee and the appointment
of a successor Trustee.

 

(f)            A successor Trustee
shall deliver a written acceptance of its appointment to the retiring Trustee
and to the Company.  Thereupon, the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture.  The successor
Trustee shall mail a notice of its succession to Holders.  The retiring Trustee shall promptly transfer
all property held by it as Trustee to the successor Trustee and execute and
deliver an instrument transferring to such successor Trustee all the rights,
powers and trusts of the retiring Trustee; provided all sums owing to
the Trustee hereunder have been paid and subject to the Lien provided for in Section 7.07
hereof.  Notwithstanding replacement of
the Trustee pursuant to this Section 7.08, the Company’s obligations under
Section 7.07 hereof shall continue for the benefit of the retiring Trustee.

 

Section 7.09          Successor Trustee by
Merger, etc.

 

If the Trustee consolidates,
merges or converts into, or transfers all or substantially all of its corporate
trust business to, another corporation, the successor corporation without any
further act shall be the successor Trustee; provided, however,
that such Person shall be otherwise qualified and eligible under Article 7
hereof.

 

Section 7.10          Eligibility;
Disqualification.

 

There shall at all times be
a Trustee hereunder that is a corporation organized and doing business under
the laws of the United States of America or of any state thereof that is
authorized under such laws to exercise corporate trustee power, that is subject
to supervision or examination by federal or 

 

76

 

state authorities and that
has a combined capital and surplus of at least $150,000,000 as set forth in its
most recent published annual report of condition.

 

This Indenture shall always
have a Trustee who satisfies the requirements of Sections 310(a)(1), (2) and
(5) of the Trust Indenture Act.  The
Trustee is subject to Section 310(b) of the Trust Indenture Act.

 

Section 7.11          Preferential
Collection of Claims Against Company.

 

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

 

ARTICLE 8

 

LEGAL DEFEASANCE AND
COVENANT DEFEASANCE

 

Section 8.01          Option to Effect
Legal Defeasance or Covenant Defeasance.

 

The Company may, at its
option and at any time, elect to have either Section 8.02 or 8.03 hereof
applied to all outstanding Notes and all obligations of the Guarantors upon
compliance with the conditions set forth below in this Article 8.

 

Section 8.02          Legal Defeasance and
Discharge.

 

(a)           Upon the Company’s
exercise under Section 8.01 hereof of the option applicable to this Section 8.02,
the Company and the Guarantors shall, subject to the satisfaction of the conditions
set forth in Section 8.04 hereof, be deemed to have been discharged from
their obligations with respect to all outstanding Notes and Guarantees with
respect thereto on the date the conditions set forth below are satisfied (“Legal
Defeasance”).  For this purpose,
Legal Defeasance means that the Company and the Guarantors shall be deemed to
have paid and discharged the entire Indebtedness represented by the outstanding
Notes (including, the Guarantees thereof), which shall thereafter be deemed to
be “outstanding” only for the purposes of Section 8.05 hereof and the
other Sections of this Indenture referred to in (i) and (ii) below,
and to have satisfied all their other obligations under such Notes, the
Guarantees thereof and this Indenture (and the Trustee, on demand of and at the
expense of the Company, shall execute proper instruments acknowledging the
same), except for the following provisions which shall survive until otherwise
terminated or discharged hereunder:

 

(i)      the rights of Holders of outstanding Notes to
receive payments in respect of the principal of, premium, if any, and interest
and Additional Interest, if any, on such Notes when such payments are due from
the trust referred to in Section 8.04 hereof;

 

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

 

(iii)    the rights, powers, trusts, duties and immunities
of the Trustee, and the Company’s obligations in connection therewith; and

 

(iv)    this Section 8.02.

 

77

 

(b)           If the Company
exercises the Legal Defeasance option, payment of the Notes may not be
accelerated because of an Event of Default with respect to the Notes.  Subject to compliance with this Article 8,
the Company may exercise its option under this Section 8.02
notwithstanding the prior exercise of its option under Section 8.03
hereof.

 

Section 8.03          Covenant Defeasance.

 

Upon the Company’s exercise
under Section 8.01 hereof of the option applicable to this Section 8.03,
the Company and the Guarantors shall, subject to the satisfaction of the
conditions set forth in Section 8.04 hereof, be released from their
obligations under the covenants contained in Sections 4.03 through 4.18 hereof
and Section 5.01(a)(iv) and (b)  hereof with respect to the
outstanding Notes on and after the date the conditions set forth in Section 8.04
hereof are satisfied (“Covenant Defeasance”), and the Notes shall
thereafter be deemed not “outstanding” for the purposes of any direction,
waiver, consent or declaration or act of Holders (and the consequences of any
thereof) in connection with such covenants, but shall continue to be deemed “outstanding”
for all other purposes hereunder (it being understood that such Notes shall not
be deemed outstanding for accounting purposes). 
For this purpose, Covenant Defeasance means that, with respect to the
outstanding Notes and the Guarantees thereof, the Company and the Guarantor may
omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such covenant, whether directly or
indirectly, by reason of any reference elsewhere herein to any such covenant or
by reason of any reference in any such covenant to any other provision herein
or in any other document and such omission to comply shall not constitute a
Default or an Event of Default under Section 6.01 hereof, but, except as
specified above, the remainder of this Indenture and such Notes and Guarantees
shall be unaffected thereby.  In
addition, upon the Company’s exercise under Section 8.01 hereof of the
option applicable to this Section 8.03 hereof, subject to the satisfaction
of the conditions set forth in Section 8.04 hereof, Sections 6.01(iii),
6.01(iv), 6.01(v), 6.01(vi) (solely with respect to Restricted
Subsidiaries that are Significant Subsidiaries), 6.01(vii) (solely with
respect to Restricted Subsidiaries that are Significant Subsidiaries) and 6.01(viii) shall
not constitute Events of Default.

 

Section 8.04          Conditions to Legal
or Covenant Defeasance.

 

In order to exercise either
Legal Defeasance or Covenant Defeasance under either Section 8.02 or 8.03:

 

(i)      the Company must irrevocably deposit with the
Trustee, in trust, for the benefit of the Holders of the Notes, cash in U.S.
dollars, noncallable Government Securities, or a combination thereof, in such
amounts as will be sufficient, in the opinion of a nationally recognized
investment bank, appraisal firm or firm of independent public accountants, to
pay the principal of, premium, if any, and interest and Additional Interest, if
any, on the outstanding Notes on the stated maturity or on the applicable
redemption date, as the case may be, and the Company must specify whether the
Notes are being defeased to maturity or to a particular redemption date;

 

(ii)     in the case of Legal Defeasance, the Company shall
have delivered to the Trustee an opinion of counsel in the United States of
America reasonably acceptable to the Trustee confirming that (A) the
Company has received from, or there has been published by, the Internal Revenue
Service a ruling or (B) since the date of this Indenture, there has been a
change in the applicable federal income tax law, in either case to the effect
that, and based thereon such opinion of counsel shall confirm that, the Holders
of the outstanding Notes will not recognize income, gain or loss for federal
income tax purposes as a result of such Legal Defeasance and will be subject to
federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Legal Defeasance had not occurred;

 

78

 

(iii)    in the case of Covenant Defeasance, the Company
shall have delivered to the Trustee an opinion of counsel in the United States
of America reasonably acceptable to the Trustee confirming that the Holders of
the outstanding Notes will not recognize income, gain or loss for federal
income tax purposes as a result of such Covenant Defeasance and will be subject
to federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Covenant Defeasance had not occurred;

 

(iv)    no Default or Event of Default shall have occurred
and be continuing on the date of such deposit (other than a Default or Event of
Default resulting from the borrowing of funds to be applied to such deposit);

 

(v)     such Legal Defeasance or Covenant Defeasance shall
not result in a breach or violation of, or constitute a default under any
material agreement or instrument (other than this Indenture) to which the
Company or any of its Subsidiaries is a party or by which the Company or any of
its Subsidiaries is bound;

 

(vi)    the Company must deliver to the Trustee an officers’
certificate stating that the deposit was not made by the Company with the
intent of preferring the Holders of Notes over the other creditors of the
Company with the intent of defeating, hindering, delaying or defrauding
creditors of the Company or others; and

 

(vii)   the Company must deliver to the Trustee an officers’
certificate and an opinion of counsel, each stating that all conditions
precedent provided for relating to the Legal Defeasance or the Covenant
Defeasance have been complied with.

 

Section 8.05           Deposited Money and
Government Securities to Be Held in Trust; 

Other Miscellaneous Provisions.                                                               

 

Subject to Section 8.06
hereof, all money and Government Securities (including the proceeds thereof)
deposited with the Trustee (or other qualifying trustee, collectively for
purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04
hereof in respect of the outstanding Notes shall be held in trust and applied
by the Trustee, in accordance with the provisions of such Notes and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company or a Guarantor acting as Paying Agent) as the Trustee
may determine, to the Holders of such Notes of all sums due and to become due
thereon in respect of principal, premium and Additional Interest, if any, and interest,
but such money need not be segregated from other funds except to the extent required
by law.

 

The Company shall pay and
indemnify the Trustee against any tax, fee or other charge imposed on or
assessed against the cash or Government Securities deposited pursuant to Section 8.04
hereof or the principal and interest received in respect thereof other than any
such tax, fee or other charge which by law is for the account of the Holders of
the outstanding Notes.

 

Anything in this Article 8
to the contrary notwithstanding, the Trustee shall deliver or pay to the
Company from time to time upon the request of the Company any money or Government
Securities held by it as provided in Section 8.04 hereof which, in the
opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee (which
may be the opinion delivered under Section 8.04(a) hereof), are in
excess of the amount thereof that would then be required to be deposited to
effect an equivalent Legal Defeasance or Covenant Defeasance.

 

79

 

Section 8.06          Repayment to Company.

 

The Trustee shall promptly,
and in any event, no later than three Business Days, pay to the Company after
request therefor, any excess money or Government Securities held with respect
to the Notes at such time in excess of amounts required to pay any of the
Company’s Obligations then owing with respect to the Notes.  Any money deposited with the Trustee or any
Paying Agent, or then held by the Company, in trust for the payment of the
principal of, premium and Additional Interest, if any, or interest on any Note
and remaining unclaimed for two years after such principal, and premium and
Additional Interest, if any, or interest has become due and payable shall be
paid to the Company on its request or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Note shall thereafter 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.

 

Section 8.07          Reinstatement.

 

If the Trustee or Paying
Agent is unable to apply any United States dollars or Government Securities in
accordance with Section 8.02 or 8.03 hereof, as the case may be, by reason
of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, then the Company’s
obligations under this Indenture and the Notes shall be revived and reinstated
as though no deposit had occurred pursuant to Section 8.02 or 8.03 hereof
until such time as the Trustee or Paying Agent is permitted to apply all such
money in accordance with Section 8.02 or 8.03 hereof, as the case may be; provided
that, if the Company makes any payment of principal of, premium and Additional
Interest, 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 held by the Trustee or Paying
Agent.

 

ARTICLE 9

 

AMENDMENT, SUPPLEMENT AND
WAIVER

 

Section 9.01          Without Consent of
Holders of Notes.

 

(a)           Notwithstanding Section 9.02
hereof, the Company, any Guarantor (with respect to a Guarantee or this
Indenture) and the Trustee may amend or supplement this Indenture and any
Guarantee thereof or the Notes or other agreements or instruments entered into
by the Company in connection with this Indenture without the consent of any
Holder:

 

(i)      to cure any ambiguity, defect or inconsistency;

 

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

 

(iii)    to provide for the assumption of the Company’s or a
Guarantor’s obligations to Holders of Notes in the case of a merger or
consolidation or sale of all or substantially all of the Company’s or such
Guarantor’s assets, as applicable;

 

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

 

80

 

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

 

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

 

(vii)   to provide
for the issuance of Additional Notes in accordance with the limitations set
forth in this Indenture as in effect on the date hereof;

 

(viii)  to allow any
Guarantor to execute a supplemental indenture and/or a Guarantee with respect to
the Notes;

 

(ix)    to comply
with the rules of any applicable securities depository; or

 

(x)     to add a
co-issuer or co-obligor of the Notes.

 

(b)           Upon the request of the
Company accompanied by a resolution of its Board of Directors authorizing the
execution of any such amended or supplemental indenture, and upon receipt by
the Trustee of the documents described in Section 9.06 hereof, the Trustee
shall join with the Company and the Guarantors in the execution of any amended
or supplemental indenture authorized or permitted by the terms of this
Indenture and to make any further appropriate agreements and stipulations that
may be therein contained, but the Trustee shall not be obligated to enter into
such amended or supplemental indenture that affects its own rights, duties or
immunities under this Indenture or otherwise.

 

Section 9.02          With Consent of
Holders of Notes.

 

(a)           Except as provided
below in this Section 9.02, the Company and the Trustee may amend or
supplement this Indenture, the Notes, the Guarantees or the Notes or other
agreements or instruments entered into by the Company in connection with this
Indenture with the consent of the Holders of at least a majority in principal
amount of the Notes then outstanding voting as a single class (including, without
limitation, consents obtained in connection with a tender offer or exchange
offer for, or purchase of, the Notes), and, subject to Sections 6.04 and 6.07
hereof, any existing Default or Event of Default or compliance with any
provision of this Indenture, the Guarantees thereof or the Notes may be waived
with the consent of the Holders of a majority in principal amount of the then
outstanding Notes voting as a single class (including, without limitation,
consents obtained in connection with a tender offer or exchange offer for, or
purchase of, the Notes).  Section 2.08
hereof and Section 2.09 hereof shall determine which Notes are considered
to be “outstanding” for the purposes of this Section 9.02.

 

(b)           Upon the request of the
Company accompanied by a resolution of its board of directors authorizing the
execution of any such amended or supplemental indenture, and upon the filing
with the Trustee of evidence satisfactory to the Trustee of the consent of the
Holders of Notes as aforesaid, and upon receipt by the Trustee of the documents
described in Section 9.06 hereof, the Trustee shall join with the Company
and the Guarantors in the execution of such amended or supplemental indenture
unless such amended or supplemental indenture directly affects the Trustee’s
own rights, duties or immunities under this Indenture or otherwise, in which
case the Trustee may in its discretion, but shall not be obligated to, enter
into such amended or supplemental indenture.

 

81

 

(c)           It shall not be
necessary for the consent of the Holders of Notes under this Section 9.02
to approve the particular form of any proposed amendment, consent, supplement
or waiver, but it shall be sufficient if such consent approves the substance
thereof.

 

(d)           After an amendment,
supplement or waiver under this Section 9.02 becomes effective, the
Company shall (or cause the Trustee, at the expense of and at the request of
the Company, to) mail to the Holders of Notes affected thereby a notice briefly
describing the amendment, supplement or waiver. 
Any failure of the Company to mail such notice, or any defect therein,
shall not, however, in any way impair or affect the validity of any such
amended or supplemental indenture or waiver.

 

(e)           Without the consent of
each Holder affected, an amendment or waiver may not (with respect to any Notes
held by a nonconsenting Holder):

 

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

 

(ii)     reduce the principal of or change the fixed
maturity of any Note or alter the provisions with respect to the redemption of
the Notes (other than provisions relating to Section 4.10 or 4.14);

 

(iii)    reduce the rate of or change the time for payment
of interest on any Note;

 

(iv)    waive a Default or Event of Default in the payment
of principal of or premium, if any, or interest on the Notes (except a
rescission of acceleration of the Notes by the Holders of at least a majority
in aggregate principal amount of the Notes and a waiver of the payment default
that resulted from such acceleration);

 

(v)     make any Note payable in money other than that
stated in the Notes;

 

(vi)    make any change in the provisions of this Indenture
relating to waivers of past Defaults or the rights of Holders of Notes to
receive payments of principal of or premium, if any, or interest on the Notes;

 

(vii)   after the Company’s obligation to purchase Notes
arises under this Indenture, amend, change or modify in any material respect
the obligation of the Company to make and consummate a Change of Control Offer
in the event of a Change of Control or make and consummate an Asset Sale Offer
with respect to any Asset Sale that has been consummated or modify any of the
provisions or definitions with respect thereto;

 

(viii)  release any Guarantor that is a Significant
Subsidiary from any of its obligations under its Guarantee or this Indenture
otherwise than in accordance with the terms of this Indenture; or

 

(ix)    make any change in the foregoing amendment and
waiver provisions.

 

(f)            In addition, any
amendment to, or waiver of the provisions of this Indenture relating to
subordination that adversely affects the rights of Holders, will require the
consent of Holders of at least 75% in aggregate principal amount of Notes then
outstanding.  The consent of the Holders
is not necessary under this Indenture to approve the particular form of any
proposed amendment, waiver or consent. 
It is sufficient if the consent approves the substance of the proposed
amendment, waiver or consent.

 

82

 

Section 9.03          Compliance with Trust
Indenture Act.

 

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

 

Section 9.04          Revocation and Effect
of Consents.

 

Until an amendment,
supplement or waiver becomes effective, a consent to it by a Holder of a Note
is a continuing consent by the Holder of a Note and every subsequent Holder of
a Note or portion of a Note that evidences the same debt as the consenting
Holder’s Note, even if notation of the consent is not made on any Note.  However, any such Holder of a Note or
subsequent Holder of a Note may revoke the consent as to its Note if the
Trustee receives written notice of revocation before the date the waiver,
supplement or amendment becomes effective. 
An amendment, supplement or waiver becomes effective in accordance with
its terms and thereafter binds every Holder.

 

The Company may, but shall
not be obligated to, fix a record date for the purpose of determining the
Holders entitled to consent to any amendment, supplement, or waiver.  If a record date is fixed, then,
notwithstanding the preceding paragraph, those Persons who were Holders at such
record date (or their duly designated proxies), and only such Persons, shall be
entitled to consent to such amendment, supplement, or waiver or to revoke any
consent previously given, whether or not such Persons continue to be Holders
after such record date.  No such consent
shall be valid or effective for more than 120 days after such record date
unless the consent of the requisite number of Holders has been obtained.

 

Section 9.05          Notation on or
Exchange of Notes.

 

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

 

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

 

Section 9.06          Trustee to Sign
Amendments, etc.

 

The Trustee shall sign any
amendment, supplement or waiver authorized pursuant to this Article 9 if
the amendment or supplement does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. 
The Company may not sign an amendment, supplement or waiver until the
board of directors approves it.  In
executing any amendment, supplement or waiver, the Trustee shall be provided
with and (subject to Section 7.01 hereof) shall be fully protected in
relying upon, in addition to the documents required by Section 12.04
hereof, an Officers’ Certificate and an Opinion of Counsel stating that the
execution of such amended or supplemental indenture is authorized or permitted
by this Indenture and that such amendment, supplement or waiver is the legal,
valid and binding obligation of the Company and any Guarantors party thereto,
enforceable against them in accordance with its terms, subject to customary exceptions,
and complies with the provisions hereof (including Section 9.03).

 

83

 

ARTICLE 10

 

GUARANTEES

 

Section 10.01        Guarantee.

 

(a)           Subject to this Article 10
and Article 13, each of the Guarantors hereby, jointly and severally,
unconditionally guarantees to each Holder of a Note authenticated and delivered
by the Trustee and to the Trustee and its successors and assigns, irrespective
of the validity and enforceability of this Indenture, the Notes or the
obligations of the Company hereunder or thereunder, that:  (i) the principal of, interest, premium
and Additional Interest, if any, on the Notes shall be promptly paid in full
when due, whether at maturity, by acceleration, redemption or otherwise, and
interest on the overdue principal of and interest on the Notes, if any, if
lawful, and all other obligations of the Company to the Holders or the Trustee
hereunder or thereunder shall be promptly paid in full or performed, all in
accordance with the terms hereof and thereof; and (ii) in case of any
extension of time of payment or renewal of any Notes or any of such other
obligations, that the same shall be promptly paid in full when due or performed
in accordance with the terms of the extension or renewal, whether at stated
maturity, by acceleration or otherwise. 
Failing payment when due of any amount so guaranteed or any performance
so guaranteed for whatever reason, the Guarantors shall be jointly and
severally obligated to pay the same immediately.  Each Guarantor agrees that this is a guarantee
of payment and not a guarantee of collection.

 

(b)           The Guarantors hereby
agree that their obligations hereunder shall be unconditional, irrespective of
the validity, regularity or enforceability of the Notes or this Indenture, the
absence of any action to enforce the same, any waiver or consent by any Holder
of the Notes with respect to any provisions hereof or thereof, the recovery of
any judgment against the Company, any action to enforce the same or any other
circumstance which might otherwise constitute a legal or equitable discharge or
defense of a guarantor.  Each Guarantor
hereby waives diligence, presentment, demand of payment, filing of claims with
a court in the event of insolvency or bankruptcy of the Company, any right to
require a proceeding first against the Company, protest, notice and all demands
whatsoever and covenants that this Guarantee shall not be discharged except by
complete performance of the obligations contained in the Notes and this Indenture.

 

(c)           Each Guarantor also
agrees to pay any and all costs and expenses (including reasonable attorneys’
fees) incurred by the Trustee or any Holder in enforcing any rights under this Section 10.01.

 

(d)           If any Holder or the
Trustee is required by any court or otherwise to return to the Company, the
Guarantors or any custodian, trustee, liquidator or other similar official
acting in relation to either the Company or the Guarantors, any amount paid
either to the Trustee or such Holder, this Guarantee, to the extent theretofore
discharged, shall be reinstated in full force and effect.

 

(e)           Each Guarantor agrees
that it shall not be entitled to any right of subrogation in relation to the
Holders in respect of any obligations guaranteed hereby until payment in full
of all obligations guaranteed hereby. 
Each Guarantor further agrees that, as between the Guarantors, on the
one hand, and the Holders and the Trustee, on the other hand, (x) the maturity
of the obligations guaranteed hereby may be accelerated as provided in Article 6
hereof for the purposes of this Guarantee, notwithstanding any stay, injunction
or other prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (y) in the event of any declaration of acceleration of
such obligations as provided in Article 6 hereof, such obligations
(whether or not due and payable) shall forthwith become due and payable by the
Guarantors for the purpose of this Guarantee. 
The Guarantors shall have the right to seek contribution 

 

84

 

from any non-paying Guarantor
so long as the exercise of such right does not impair the rights of the Holders
under the Guarantees.

 

(f)            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 or Guarantees, 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.

 

(g)           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.

 

(h)           The Guarantee issued by
any Guarantor shall be a general unsecured senior subordinated obligation of
such Guarantor and shall be (x) subordinated in right of payment with all
existing and future Senior Debt of such Guarantor, if any, pursuant to the
terms of Section 10.02 and Article 13 hereof and (y) pari passu in right of payment with all
existing and future Senior Subordinated Indebtedness of such Guarantor, if any.

 

(i)            Each payment to be made
by a Guarantor in respect of its Guarantee shall be made without set-off,
counterclaim, reduction or diminution of any kind or nature.

 

Section 10.02        Subordination of
Guarantor Payments.

 

Each Guarantor agrees, and
each Holder by accepting a Note agrees, that the Obligations of each Guarantor
under its Guarantee, are subordinated and junior in right of payment to the
prior payment of all Senior Debt on the same basis as the Obligations on, or
relating to the Notes, are subordinated and junior in right of payment to the
prior payment of all Senior Debt of the Company pursuant to Article 13.  In furtherance of the foregoing, each
Guarantor agrees, and each of the Trustee and each Holder by accepting a Note
agrees, that the subordination and related provisions applicable to the
Obligations of each Guarantor under its Guarantee by virtue of the preceding
sentence shall be as set forth in Article 13 as if each reference to “Company”
therein were instead a reference to “a Guarantor”, each reference to “Senior Debt
of the Company” therein were instead a reference to “Senior Debt of each
Guarantor” and each reference to “Notes” therein were instead a reference to “this
Guarantee”, with such appropriate modifications as the context may
require.  For the purposes of the
foregoing sentence, the Trustee and the Holders shall have the right to receive
and/or retain payments by any of the Guarantors only at such times as they may
receive and/or retain payments in respect of the Notes pursuant to this
Indenture, including Article 13 hereof.

 

Section 10.03        Limitation on Guarantor
Liability.

 

Each Guarantor, and by its
acceptance of Notes, each Holder, hereby confirms that it is the intention of
all such parties that the Guarantee of such Guarantor not constitute a
fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform
Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar
federal or state law to the extent applicable to any Guarantee.  To 

 

85

 

effectuate the foregoing
intention, the Trustee, the Holders and the Guarantors hereby irrevocably agree
that the obligations of each Guarantor shall be limited to the maximum amount
as will, after giving effect to such maximum amount and all other contingent
and fixed liabilities of such Guarantor that are relevant under such laws and
after giving effect to any collections from, rights to receive contribution
from or payments made by or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under this Article 10, result in the
obligations of such Guarantor under its Guarantee not constituting a fraudulent
conveyance or fraudulent transfer under applicable law.  Each Guarantor that makes a payment under its
Guarantee shall be entitled upon payment in full of all guaranteed obligations
under this Indenture to a contribution from each other Guarantor in an amount
equal to such other Guarantor’s pro rata
portion of such payment based on the respective net assets of all the
Guarantors at the time of such payment determined in accordance with GAAP.

 

Section 10.04        Execution and Delivery.

 

(a)           To evidence its
Guarantee set forth in Section 10.01, each Guarantor hereby agrees that a
notation of such Guarantee substantially in the form included in Exhibit D
shall be endorsed by an Officer of such Guarantor on each Note authenticated
and delivered by the Trustee and that this Indenture shall be executed on
behalf of such Guarantor by one of its Officers.

 

(b)           Each Guarantor hereby
agrees that its Guarantee set forth in Section 10.01 hereof shall remain in full force and
effect notwithstanding the absence of the endorsement of any notation of such
Guarantee on the Notes.

 

(c)           If an Officer whose
signature is on this Indenture no longer holds that office at the time the
Trustee authenticates the Note, the Guarantee shall be valid nevertheless.

 

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

 

(e)           If required by Section 4.15
hereof, the Company shall cause any newly created or acquired Restricted
Subsidiary to comply with the provisions of Section 4.15 hereof and this Article 10, to
the extent applicable.

 

Section 10.05        Subrogation.

 

Each Guarantor shall be
subrogated to all rights of Holders of Notes against the Company in respect of
any amounts paid by any Guarantor pursuant to the provisions of Section 10.01 hereof; provided 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 10.06        Benefits Acknowledged.

 

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

 

86

 

Section 10.07         Release of Guarantees.

 

(a)           A Guarantee by a
Guarantor shall be automatically and unconditionally released and discharged,
and no further action by such Guarantor, the Company or the Trustee or any
Holder is required for the release of such Guarantor’s Guarantee:

 

(i)      if (A) all of the Capital Interests issued
by such Guarantor or all or substantially all of the assets of such Guarantor
are sold or otherwise disposed of (including by way of merger or consolidation)
to a Person other than the Company or any of its Restricted Subsidiaries or (B) such
Guarantor ceases to be a Restricted Subsidiary, and in each case of (A) and
(B) the Company otherwise complies, to the extent applicable, with Section 4.10;
or

 

(ii)     if the Company designates such Guarantor as an
Unrestricted Subsidiary in accordance with Section 4.07; or

 

(iii)    if the Company exercises its legal defeasance
option or covenant defeasance pursuant to Section 8.01, and upon delivery
by the Company to the Trustee of an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for in this
Indenture relating to such transaction have been complied with in all material
respects.

 

(b)           At the request and at
the expense of the Company, the Trustee shall execute and deliver any
instrument reasonably requested evidencing such release.

 

ARTICLE 11

 

SATISFACTION AND DISCHARGE

 

Section 11.01         Satisfaction and
Discharge.

 

(a)           This Indenture shall be
discharged and shall cease to be of further effect (except as to surviving
rights or registration of transfer or exchange of the Notes, as expressly
provided for herein) as to all outstanding Notes, when:

 

(i)      either:

 

(A)          all the Notes theretofore authenticated and
delivered (except lost, stolen or destroyed Notes or Notes which have been
replaced or paid and Notes for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Company and
thereafter repaid to the Company or discharged from such trust) have been
delivered to the Trustee for cancellation; or

 

(B)           all Notes not theretofore delivered to the
Trustee for cancellation (1) have become due and payable or (2) will
become due and payable within one year, or are to be called for redemption
within one year, under arrangements reasonably satisfactory to the Trustee for
the giving of notice of redemption by the Trustee in the name, and at the
expense, of the Company, and the Company has irrevocably deposited or caused to
be deposited with the Trustee funds in an amount sufficient to pay and
discharge the entire Indebtedness on the Notes not theretofore delivered to the
Trustee for cancellation, for principal of, premium, if any, and interest on
the Notes to the date of deposit together with irrevocable instructions from
the Company directing the Trustee to apply such funds to the payment thereof at
maturity or redemption, as the case may be;

 

87

 

(ii)     the Company has paid all other sums payable under
this Indenture by the Company; and

 

(iii)    the Company has delivered to the Trustee an
Officers’ Certificate and an opinion of counsel stating that all conditions
precedent under this Indenture relating to the satisfaction and discharge of
this Indenture have been complied with.

 

(b)           Notwithstanding the
satisfaction and discharge of this Indenture, if money shall have been
deposited with the Trustee pursuant to subclause (B) of Section 11.01(a)(i),
the provisions of Section 11.02 and Section 8.06 hereof shall survive
such satisfaction and discharge.

 

Section 11.02         Application of Trust
Money.

 

(a)           Subject to the
provisions of Section 8.06 hereof, all money deposited with the Trustee
pursuant to Section 11.01 hereof shall be held in trust and applied by it,
in accordance with the provisions of the Notes and this Indenture, to the
payment, either directly or through any Paying Agent (including the Company acting
as its own Paying Agent) as the Trustee may determine, to the Persons entitled
thereto, of the principal (and premium and Additional Interest, if any) and
interest for whose payment such money has been deposited with the Trustee; but
such money need not be segregated from other funds except to the extent
required by law.

 

(b)           If the Trustee or
Paying Agent is unable to apply any money or Government Securities in
accordance with Section 11.01 hereof by reason of any legal proceeding or
by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the Company’s
and any Guarantor’s obligations under this Indenture and the Notes shall be revived
and reinstated as though no deposit had occurred pursuant to Section 11.01
hereof; provided that if the Company has made any payment of principal
of, premium and Additional Interest, 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.

 

Section 11.03         Repayment to the
Company.

 

The Trustee shall promptly,
and in any event, no later than three Business Days, pay to the Company after
request therefor, any excess money or Government Securities held with respect
to the Notes at such time in excess of amounts required to pay any of the
Company’s Obligations then owing with respect to the Notes.  Any money deposited with the Trustee or any
Paying Agent, or then held by the Company, in trust for the payment of the
principal of, premium and Additional Interest, if any, or interest on any Note
and remaining unclaimed for two years after such principal, and premium and Additional
Interest, if any, or interest has become due and payable shall be paid to the
Company on its request or (if then held by the Company) shall be discharged
from such trust; and the Holder of such Note shall thereafter 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.

 

88

 

ARTICLE 12

 

MISCELLANEOUS

 

Section 12.01         Trust Indenture Act
Controls.

 

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

 

Section 12.02         Notices.

 

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

 

If to the Company and/or any
Guarantor:

 

PGS Solutions, Inc.

4250 North Fairfax Drive, Suite 1200

Arlington, VA  22203

Attention:  Chief Financial Officer

 

with a copy to:

 

Schulte Roth &
Zabel LLP 

919 Third Avenue

New York, New York  10022

Attention:  Michael R. Littenberg, Esq.

 

If to the Trustee:

 

The Bank of New York

101 Barclay Street, Floor 8W

New York, New York  10286

Fax No.:  (212) 815-5704

Attention:  Corporate Trust
Administration

 

The Company,
any Guarantor or the Trustee, by notice to the others, may designate additional
or different addresses for subsequent notices or communications.

 

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

 

Any notice or
communication to a Holder shall be mailed by first-class mail, certified or
registered, return receipt requested, or by overnight air courier guaranteeing
next day delivery to its address shown on the register kept by the
Registrar.  Any notice or communication
shall also be so mailed to any Person described in Section 313(c) of
the Trust Indenture Act, to the extent required by the Trust

 

89

 

Indenture Act.  Failure to mail a notice or communication to
a Holder or any defect in it shall not affect its sufficiency with respect to
other Holders.

 

If a notice or
communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it.

 

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

 

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 on such waiver.

 

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

 

Section 12.03         Communication by
Holders of Notes with Other Holders of Notes.

 

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

 

Section 12.04         Certificate and
Opinion as to Conditions Precedent.

 

Upon any request or
application by the Company or any of the Guarantors to the Trustee to take any
action under this Indenture, the Company or such Guarantor, as the case may be,
shall furnish to the Trustee:

 

(a)           An Officers’ Certificate in form and
substance reasonably satisfactory to the Trustee (which shall include the statements
set forth in Section 12.05 hereof) stating that, in the opinion of the
signers, all conditions precedent and covenants, if any, provided for in this
Indenture relating to the proposed action have been satisfied; and

 

(b)           An Opinion of Counsel in form and substance
reasonably satisfactory to the Trustee (which shall include the statements set
forth in Section 12.05 hereof)
stating that, in the opinion of such counsel, all such conditions precedent and
covenants have been satisfied.

 

Notwithstanding the
foregoing, no such Opinion shall be given with respect to the delivery of the
Initial Notes.

 

Section 12.05         Statements Required in
Certificate or Opinion.

 

Each certificate or opinion
with respect to compliance with a condition or covenant provided for in this
Indenture (other than a certificate provided pursuant to Section 4.04
hereof or Section 314(a)(4) of the Trust Indenture Act) shall comply
with the provisions of Section 314(e) of the Trust Indenture Act and
shall include:

 

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

 

90

 

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

 

(c)           a statement that, in the opinion of such
Person, he or she has made such examination or investigation as is necessary to
enable him to express an informed opinion as to whether or not such covenant or
condition has been complied with (and, in the case of an Opinion of Counsel,
may be limited to reliance on an Officers’ Certificate as to matters of fact);
and

 

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

 

Section 12.06         Rules by Trustee
and Agents.

 

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

 

Section 12.07         No Personal Liability
of Directors, Officers, Employees and Stockholders.

 

No past, future or present
director, officer, employee, partner, manager, agent, member (or Person forming
any limited liability company), incorporator or stockholder of the Company or
any Guarantor, as such, shall have any liability for any obligations of the
Company or any Guarantor 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.  Each Holder of Notes by
accepting a Note and Guarantee in respect thereof waives and releases all such
liability.  This waiver and release are
part of the consideration for issuance of the Notes and the Guarantees thereof.

 

Section 12.08         Governing Law.

 

THIS INDENTURE, THE NOTES
AND ANY GUARANTEE WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF
CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAW OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.

 

Section 12.09         Waiver of Jury Trial.

 

EACH OF THE COMPANY, THE
GUARANTORS AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 12.10         Force Majeure.

 

In no event shall the
Trustee be responsible or liable for any failure or delay in the performance of
its obligations under this Indenture arising out of or caused by, directly or
indirectly, forces beyond its reasonable control, including without limitation
strikes, work stoppages, accidents, acts of war or terrorism, civil or military
disturbances, nuclear or natural catastrophes or acts of God, and
interruptions, loss or malfunctions of utilities, communications or computer
(software or hardware) services.

 

91

 

Section 12.11         No Adverse
Interpretation of Other Agreements.

 

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

 

Section 12.12         Successors.

 

All agreements of the
Company in this Indenture and the Notes shall bind its successors.  All agreements of the Trustee in this
Indenture shall bind its successors.  All
agreements of each Guarantor in this Indenture shall bind its successors,
except as otherwise provided in Section 10.05 hereof.

 

Section 12.13         Severability.

 

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

 

Section 12.14         Counterpart Originals.

 

The parties may sign any
number of copies of this Indenture.  Each
signed copy shall be an original, but all of them together represent the same agreement.

 

Section 12.15         Table of Contents,
Headings, etc.

 

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

 

Section 12.16         Qualification of
Indenture.

 

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

 

ARTICLE 13

 

SUBORDINATION
OF NOTES

 

Section 13.01         Agreement to
Subordinate.

 

The Company agrees, and each
Holder by accepting a Note or a Guarantee thereof agrees, that payment of
principal, premium and Additional Interest, if any, and interest on (or any
other Obligations relating to) the Notes is subordinated in right of payment,
to the extent and in the manner provided in this Article 13, to the prior
payment in full of all Senior Debt of the Company (whether outstanding

 

92

 

on the date hereof or
hereafter created, incurred, assumed or guaranteed), and that the subordination
is for the benefit of the holders of Senior Debt.

 

Section 13.02         Liquidation;
Dissolution; Bankruptcy.

 

The holders of Senior Debt
shall be entitled to receive payment in full of all Obligations due in respect
of Senior Debt (including interest after the commencement of any bankruptcy proceeding
at the rate specified in the applicable Senior Debt, whether or not such
interest is allowed in such proceeding) before the Holders of Notes will be
entitled to receive any payment with respect to the Notes (except that Holders
of Notes may receive and retain Permitted Junior Securities and payments made
from either of the trusts, if any, described under Article 8 and Article 11
hereof), in the event of any distribution to creditors of the Company:

 

(a)           in a liquidation or
dissolution of the Company;

 

(b)           in a bankruptcy,
reorganization, insolvency, receivership or similar proceeding relating to the
Company or its property;

 

(c)           in an assignment for
the benefit of creditors; or

 

(d)           in any marshaling of
the Company’s assets and liabilities.

 

The Company shall give
prompt written notice to the Trustee of the occurrence of any event described
in clauses (a) through (d) above.

 

Section 13.03         Default on Designated
Senior Debt.

 

(a)           The Company may not
make any payment in respect of the Notes (except in respect of Permitted Junior
Securities or from the trusts described under Article 8 and Article 11
hereof) if:

 

(i)      a payment default on Designated Senior Debt
occurs and is continuing beyond any applicable grace period; or

 

(ii)     any other default occurs and is continuing on any
series of Designated Senior Debt that permits holders of that series of
Designated Senior Debt to accelerate its maturity and the Trustee receives a
notice of such default (a “Payment Blockage Notice”) from the Company or
the holders of any Designated Senior Debt.

 

Notwithstanding the
foregoing, the Company may make payment on the Notes if the Company and the
Trustee receive written notice approving such payment from the Representatives
of any Designated Senior Debt with respect to which either of the events set
forth in clauses (i) and (ii) of this Section 13.03(a) has
occurred and is continuing.

 

(b)           Payments on the Notes
may and shall be resumed at the first to occur of the following:

 

(i)      in the case of a payment default, upon the date
on which such default is cured or waived; and

 

(ii)     in the case of any other default, upon the earlier
of (A) the date on which such nonpayment default is cured or waived, (B) 179 days
after the date on which the applicable Payment

 

93

 

Blockage Notice is received, or (C) the date the Trustee receives
notice from a Representative of any Designated Senior Debt, rescinding the
Payment Blockage Notice, unless the maturity of any Designated Senior Debt has
been accelerated.

 

(c)           No new Payment Blockage
Notice may be delivered unless and until:

 

(i)      360 days have elapsed since the delivery of
the immediately prior Payment Blockage Notice; and

 

(ii)     all scheduled payments of principal, interest and
premium and Additional Interest, if any, on the Notes that have come due have
been paid in full in cash.

 

(d)           No nonpayment default
that existed or was
continuing on the date of delivery of any Payment Blockage Notice to the Trustee
will be, or be made, the basis for a subsequent Payment Blockage Notice unless
such default has been cured or waived for a period of not less than
90 days.

 

Section 13.04         Acceleration of Notes.

 

The Company shall promptly
notify Representatives of its Senior Debt if payment on the Notes is
accelerated because of an Event of Default.

 

Section 13.05         When Distribution Must
Be Paid Over.

 

(a)           If the Trustee or any
Holder of the Notes receives a payment in respect of the Notes (except in
Permitted Junior Securities or from the trusts described under Article 8
and Article 11) when:

 

(i)      the payment is prohibited by these subordination
provisions; and

 

(ii)     the Trustee or the Holder has actual knowledge
that the payment is prohibited, then, the Trustee or the Holder, as the case
may be, will hold the payment in trust for the benefit of the holders of Senior
Debt.  Upon the proper written request of
the holders of Senior Debt, the Trustee or the holder, as the case may be, will
deliver the amounts in trust to the Representatives of Senior Debt.

 

(b)           With respect to the
holders of Senior Debt, the Trustee undertakes to perform only such obligations
on the part of the Trustee as are specifically set forth in this Article 13,
and no implied covenants or obligations with respect to the holders of Senior
Debt shall be read into this Indenture against the Trustee.  The Trustee
shall not be deemed to owe any fiduciary duty to the holders of Senior Debt,
and shall not be liable to any such holders if the Trustee shall mistakenly pay
over or distribute to or on behalf of Holders or the Company or any other
Person money or assets to which any holders of Senior Debt shall be entitled by
virtue of this Article 13, except if such payment is made as a result of
the willful misconduct or gross negligence of the Trustee.

 

Section 13.06         Notice by the Company.

 

The Company shall promptly
notify the Trustee and the Paying Agent in writing of any facts known to the
Company that would cause a payment of any Obligations with respect to the Notes
to violate this Article 13, but failure to give such notice shall not
affect the subordination of the Notes to the Senior Debt as provided in this Article 13.

 

94

 

Section 13.07         Subrogation.

 

After all Senior Debt is
paid in full and until the Notes are paid in full, Holders of Notes shall be
subrogated to the rights of holders of Senior Debt to receive distributions
applicable to Senior Debt to the extent that distributions otherwise payable to
the Holders of Notes have been applied to the payment of Senior Debt.  A
distribution made under this Article 13 to holders of Senior Debt that
otherwise would have been made to Holders of Notes is not, as between the
Company and Holders, a payment by the Company on the Notes.

 

Section 13.08         Relative Rights.

 

(a)           This Article 13
defines the relative rights of Holders of Notes and holders of Senior
Debt.  Nothing in this Indenture shall:

 

(i)      impair, as between the Company and Holders of
Notes, the obligation of the Company, which is absolute and unconditional, to
pay principal of and interest on the Notes in accordance with their terms;

 

(ii)     affect the relative rights of Holders of Notes and
creditors of the Company other than their rights in relation to holders of
Senior Debt; or

 

(iii)    prevent the Trustee or any Holder of Notes from
exercising its available remedies upon a Default or Event of Default, subject
to the rights of holders and owners of Senior Debt to receive distributions and
payments otherwise payable to Holders of Notes.

 

(b)           If the Company fails
because of this Article 13 to pay principal of or interest on a Note on
the due date, the failure is still a Default or Event of Default.

 

Section 13.09         Subordination May Not
Be Impaired by the Company.

 

No right of any holder of
Senior Debt 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 any
Holder or by the failure of the Company or any Holder to comply with this Indenture.

 

Section 13.10         Distribution or Notice
to Representative.

 

Whenever a distribution is
to be made or a notice given to holders of Senior Debt, the distribution may be
made and the notice given to their Representative.

 

Upon any payment or
distribution of assets of the Company referred to in this Article 13, the
Trustee and the Holders of Notes shall be entitled to rely upon any order or
decree made by any court of competent jurisdiction or upon any certificate of
such Representative or of the liquidating trustee or agent or other Person
making any distribution to the Trustee or to the Holders of Notes for the
purpose of ascertaining the Persons entitled to participate in such
distribution, the holders of the Senior Debt and other Indebtedness of the Company,
the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article 13.

 

Section 13.11         Rights of Trustee and
Paying Agent.

 

Notwithstanding the
provisions of this Article 13 or any other provision of this Indenture,
the Trustee shall not be charged with knowledge of the existence of any facts
that would prohibit the making

 

95

 

of any payment or
distribution by the Trustee, and the Trustee and the Paying Agent may continue
to make payments on the Notes, unless the Trustee shall have received at its
Corporate Trust Office at least five Business Days prior to the date of such
payment written notice of facts that would cause the payment of any Obligations
with respect to the Notes to violate this Article 13.  Only the Company or a Representative may give
the notice.  Nothing in this Article 13 shall impair the claims of,
or payments to, the Trustee under or pursuant to Section 7.07 hereof.

 

The Trustee in its
individual or any other capacity may hold Senior Debt with the same rights it
would have if it were not Trustee.  Any Agent may do the same with like
rights.

 

Section 13.12         Authorization to
Effect Subordination.

 

Each Holder of Notes, by the
Holder’s acceptance thereof, authorizes and directs the Trustee on such Holder’s
behalf to take such action as may be necessary or appropriate to effectuate the
subordination as provided in this Article 13, and appoints the Trustee to
act as such Holder’s attorney-in-fact for any and all such purposes.  If the Trustee does not file a proper proof
of claim or proof of debt in the form required in any proceeding referred to in
Section 6.12 hereof at least 30 days before the expiration of the time to
file such claim, the lenders under the Credit Facilities are hereby authorized
to file an appropriate claim for and on behalf of the Holders of the Notes.

 

[Signatures on following pages]

 

96

 

	
   

  	
  PGS SOLUTIONS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John M. Curtis

  	
   

  
	
   

  	
   

  	
  Name: John M. Curtis

  
	
   

  	
   

  	
  Title: President & CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BLUEPRINT
  TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christine Bailey

  	
   

  
	
   

  	
   

  	
  Name: Christine Bailey

  
	
   

  	
   

  	
  Title: SVP/CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PEARSON ANALYTICAL SOLUTIONS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John M. Curtis

  	
   

  
	
   

  	
   

  	
  Name: John M. Curtis

  
	
   

  	
   

  	
  Title: President & CEO

  
						

 

S-1

 

	
   

  	
  THE BANK OF NEW YORK,

  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Remo Reale

  	
   

  
	
   

  	
   

  	
  Name: Remo Reale

  
	
   

  	
   

  	
  Title: Vice President

  

 

S-2

 

EXHIBIT A

 

[Face of Note]

 

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

 

[Insert the Private
Placement Legend, if applicable pursuant to the provisions of the Indenture]

 

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

 

A-1

 

CUSIP [                     ]

ISIN [                     ]

 

[[RULE 144A][REGULATION S] GLOBAL NOTE

representing up to

$190,000,000

9 5/8% Senior Subordinated Notes due
2015

 

	
  No.         

  	
  [$                       ]

  

 

PGS SOLUTIONS, INC.

 

promises to
pay to                                
or registered assigns, the principal sum of                              
United States Dollars on February 15, 2015.

 

Interest
Payment Dates:  February 15 and August 15.

 

Record
Dates:  February 1 and August 1.

 

A-2

 

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

 

Dated: 
[           ]

	
   

  	
  PGS
  SOLUTIONS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-3

 

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

 

	
   

  	
  THE BANK OF NEW YORK,

  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

A-4

 

[Back of Note]

 

9 5/8% Senior Subordinated Notes due
2015

 

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

 

1.             INTEREST.  PGS Solutions, Inc., a Delaware
corporation, promises to pay interest on the principal amount of this Note at  9 5/8% per annum from February 14, 2007 until
maturity and shall pay the Additional Interest, if any, payable pursuant to the
Registration Rights Agreement referred to below.  The Company will pay interest and Additional
Interest, if any, semi-annually in arrears on February 15 and August 15 of each year,
or if any such day is not a Business Day, on the next succeeding Business Day
(each, an “Interest Payment Date”). 
Interest on the Notes will accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from the date of
original issuance; provided that if there is no existing Default in the
payment of interest, and if this Note is authenticated between a record date
referred to on the face hereof and the next succeeding Interest Payment Date,
interest shall accrue from such next succeeding Interest Payment Date; provided,
further, that, the first Interest Payment Date shall be August 15,
2007.  The Company will pay interest
(including post-petition interest in any proceeding under Bankruptcy Law) on
overdue principal and premium, if any, from time to time on demand at the then
applicable interest rate on the Notes; it shall pay interest (including
post-petition interest in any proceeding under Bankruptcy Law) on overdue
installments of interest and Additional Interest, if any (without regard to any
applicable grace periods), from time to time on demand at the then applicable
interest rate on the Notes to the extent lawful.  Interest on the Notes will be computed on the
basis of a 360-day year comprised of twelve 30-day months.

 

2.             METHOD OF PAYMENT.  The Company will pay interest on the Notes
and Additional Interest, if any, to the Persons who are registered Holders of
Notes at the close of business on the February 1 or August 1 (whether
or not a Business Day), as the case may be, immediately preceding the Interest
Payment Date, even if such Notes are canceled after such record date and on or
before such Interest Payment Date, except as provided in Section 2.12 of
the Indenture with respect to defaulted interest.  The Notes will be payable as to principal,
premium and Additional Interest, if any, and interest at the office or agency
of the Company maintained for such purpose within the City and State of New
York, or, at the option of the Company, payment of interest and Additional
Interest, if any, may be made by check mailed to the Holders at their
respective addresses set forth in the register of Holders; provided that
payment by wire transfer of immediately available funds will be required with
respect to principal of and interest, premium and Additional Interest, if any,
on, all Global Notes and all other Notes to the extent that the Holders of such
Notes have provided wire transfer instructions to the Company or the Paying
Agent.  Such payment will be in such coin
or currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts.

 

3.             PAYING AGENT AND
REGISTRAR.  Initially, The Bank of New
York, the Trustee under the Indenture, will act as Paying Agent and
Registrar.  The Company may change any Paying
Agent or Registrar without prior notice to the Holders.  The Company or any of its Subsidiaries may
act in any such capacity.

 

4.             INDENTURE.  The Company issued the Notes under an
Indenture, dated as of February 14, 2007 (the “Indenture”), among
PGS Solutions, Inc., the Guarantors named therein and the Trustee.  This Note is one of a duly authorized issue
of notes of the Company designated as its 9 5/8% Senior Subordinated Notes due 2015. 
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 of 1939, as
amended (the “Trust Indenture 

 

A-5

 

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 such terms.  To the extent
any provision of this Note conflicts with the express provisions of the
Indenture, the provisions of the Indenture shall govern and be
controlling.  The Notes are unsecured
obligations of the Company subordinated in right of payment to all existing and
future Senior Debt of the Company. 
Subject to the conditions set forth in the Indenture, the Company may
issue Additional Notes.  The Notes
(including any Exchange Notes issued in exchange therefor) and any Additional
Notes (collectively, referred to herein as the “Notes”) subsequently
issued under the Indenture will be treated as a single class for all purposes
under the Indenture, including, without limitation, waivers, amendments,
redemptions and offers to purchase.

 

5.             OPTIONAL REDEMPTION.

 

(a)           At any time prior to February 15,
2011, 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 Additional Interest, if any, to the date of redemption (the “Redemption
Date”), subject to the rights of the Holders of Notes on the relevant
Record Date to receive interest due on the relevant Interest Payment Date.  The Company is not prohibited by the terms of
the Indenture from acquiring the Notes by means other than redemption, whether
pursuant to a Company tender offer, in open market transactions, or otherwise,
assuming such acquisition does not otherwise violate the terms of the
Indenture.

 

(b)           Notwithstanding anything
herein to the contrary, at any time on or prior to February 15,
2010, the Company may on any one or more occasions redeem the Notes with the
net cash proceeds of one or more Equity Offerings, at 109.625% of the principal
amount thereof, plus accrued and unpaid interest and Additional Interest, if
any, thereon to the Redemption Date; provided that at least 65% of the
principal amount of the Notes originally issued remains outstanding immediately
following such redemption (excluding Notes held by the Company or any of its
Subsidiaries); and provided, further, that such redemption shall
occur within 90 days of the date of the closing of any such Equity Offering.

 

(c)           The Notes will be
redeemable, in whole or in part on any one or more occasions, at the option of
the Company, on or after February 15, 2011, upon not less than 30 nor more
than 60 days’ notice, at the redemption prices (expressed as percentages of
principal amount) set forth below plus accrued and unpaid interest and
Additional Interest, if any, thereon to the applicable Redemption Date, if
redeemed during the twelve-month period beginning on February 15 of the
years indicated below, subject to the rights of the Holders of the Notes on the
relevant Record Date to receive interest on the relevant Interest Payment Date:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2011

  	
   

  	
  104.8125

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2012

  	
   

  	
  102.4063

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2013 and thereafter

  	
   

  	
  100.0000

  	
  %

  

 

(d)           Any redemption pursuant to
this paragraph 5 shall be made pursuant to the provisions of
Sections 3.01 through 3.06 of the Indenture.

 

6.             MANDATORY REDEMPTION.  The Company shall not be required to make
mandatory redemption or sinking fund payments with respect to the Notes.

 

A-6

 

7.             NOTICE OF REDEMPTION.  Subject to Section 3.03 of the
Indenture, notice of redemption will be mailed by first-class mail at least 30
days but not more than 60 days before the redemption date to each Holder whose
Notes are to be redeemed at its registered address, 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 the Indenture.  Notes in
denominations larger than $1,000 may be redeemed in part but only in whole
multiples of $1,000, unless all of the Notes held by a Holder are to be
redeemed.  On and after the redemption
date, interest and Additional Interest, if any, ceases to accrue on Notes or
portions thereof called for redemption.

 

8.             OFFER TO REPURCHASE.

 

(a)           Upon the occurrence of a
Change of Control, Article 3 and Section 4.14 of the Indenture shall
apply to the extent applicable.

 

(b)           If the Company or any of its
Restricted Subsidiaries consummates an Asset Sale, Article 3 and Section 4.10
of the Indenture shall apply to the extent applicable.

 

9.             DENOMINATIONS, TRANSFER,
EXCHANGE.  The Notes are in registered
form without coupons in denominations of $1,000 and integral multiples of
$1,000 in excess thereof.  The transfer of
Notes may be registered and Notes may be exchanged as provided in the Indenture.  The Registrar and the Trustee may require a
Holder, among other things, to furnish appropriate endorsements and transfer
documents and the Company will require a Holder to pay all taxes or similar
government charges due on such transfer or exchange.  The Company need not exchange or register the
transfer of any Note or portion of a Note selected for redemption, except for
the unredeemed portion of any Note being redeemed in part.  Also, the Company need not exchange or
register the transfer of any Notes (x) for a period of 15 days before the
mailing of a notice of redemption of Notes to be redeemed or (y) between a
Record Date and the next succeeding Interest Payment Date.

 

10.           PERSONS DEEMED OWNERS.  The registered Holder of a Note may be
treated as its owner for all purposes. 
Only registered Holders will have rights under the Indenture.

 

11.           AMENDMENT, SUPPLEMENT AND
WAIVER.  The Indenture, the Guarantees or
the Notes may be amended or supplemented as provided in the Indenture.

 

12.           DEFAULTS AND REMEDIES.  The Events of Default relating to the Notes
are defined in Section 6.01 of the Indenture.  If any Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the then outstanding Notes may, subject to certain conditions and limitations
set forth in the Indenture, declare the principal, premium, if any, interest
and any other monetary obligations on all the then outstanding Notes to be due
and payable immediately.  Notwithstanding
the foregoing, in the case of an Event of Default arising from certain events
of bankruptcy or insolvency described in the Indenture, all outstanding Notes
will become due and payable immediately without further action or notice.  If any Designated Senior Debt is outstanding,
the Company may only pay amounts due on the Notes if otherwise permitted under Article 13
of the Indenture.  Holders may not
enforce the Indenture, the Notes or the Guarantees except as provided in the
Indenture or the Trust Indenture Act. 
Subject to certain limitations, Holders of a majority in aggregate
principal amount of the then outstanding Notes may direct the Trustee in its
exercise of any trust or power.  The
Trustee may withhold from Holders of the Notes notice of any continuing Default
or Event of Default (except a Default or Event of Default relating to the
payment of principal, premium, if any, Additional Interest, if any, or
interest) if it determines that withholding notice is in their interest.  The Holders of a majority in aggregate principal
amount of the Notes then outstanding by notice to the Trustee may on behalf of
the Holders of all of the Notes waive any existing or past Default or Event of
Default and its consequences under the Indenture

 

A-7

 

except a continuing Default
or Event of Default in payment of the principal of, premium, if any, Additional
Interest, if any, or interest on, any of the Notes (other than nonpayment of
principal or interest that has become due solely because of acceleration) held
by a non-consenting Holder.  The Company
and each Guarantor (to the extent that such Guarantor is so required under the
Trust Indenture Act) is required to deliver to the Trustee annually a statement
regarding compliance with the Indenture, and the Company is required after
becoming aware of any Default, to deliver to the Trustee a statement specifying
such Default and what action the Company proposes to take with respect thereto.

 

13.           SUBORDINATION.  Payment of principal, interest, premium and
Additional Interest, if any, on the Notes is subordinated to the prior payment
in full of Senior Debt in accordance with and subject to the terms provided in
the Indenture.

 

14.           AUTHENTICATION.  This Note shall not be entitled to any
benefit under the Indenture or be valid or obligatory for any purpose until
authenticated by the manual signature of the Trustee.

 

15.           ADDITIONAL RIGHTS OF HOLDERS
OF RESTRICTED GLOBAL NOTES AND RESTRICTED DEFINITIVE NOTES.  In addition to the rights provided to Holders
of Notes under the Indenture, Holders of Restricted Global Notes and Restricted
Definitive Notes shall have all the rights set forth in the Registration Rights
Agreement, dated as of February 14, 2007 among PGS Solutions, Inc.,
the Guarantors named therein and the other parties named on the signature pages thereof
or, in the case of Additional Notes, Holders of Restricted Global Notes and
Restricted Definitive Notes will have the right set forth in one or more
registration rights agreements, if any, among the Company, the Guarantors and
the other parties thereto, relating to rights given by the Company and the
Guarantors to the purchasers of any Additional Notes (collectively, the “Registration
Rights Agreement”), including the right to receive Additional Interest (as
defined in the Registration Rights Agreement).

 

16.           NO PERSONAL LIABILITY OF
DIRECTORS, OFFICERS, EMPLOYEES AND STOCKHOLDERS.  No past, future or present director, officer,
employee, partner, manager, agent, member (or Person forming any limited liability
company), incorporator or stockholder of the Company or any Guarantor, as such,
shall have any liability for any obligations of the Company or any Guarantor
under the Notes, the Guarantees or the Indenture or for any claim based on, in
respect of, or by reason of, such obligations or their creation.  Each Holder of Notes by accepting a Note and
Guarantee in respect thereof waives and releases all such liability.  This waiver and release are part of the
consideration for issuance of the Notes and the Guarantees thereof.

 

17.           GOVERNING LAW.  THE LAWS OF THE STATE OF NEW YORK SHALL
GOVERN AND BE USED TO CONSTRUE THE INDENTURE, THE NOTES AND THE GUARANTEES
WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE
EXTENT THAT THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY.

 

18.           CUSIP NUMBERS.  Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Company has
caused CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP
numbers in notices of redemption as a convenience to Holders.  No representation is made as to the accuracy
of such numbers either as printed on the Notes or as contained in any notice of
redemption and reliance may be placed only on the other identification numbers
placed thereon.

 

19.  ABBREVIATIONS.  Customary abbreviations may be used in the
name of a Holder or an assignee, as such: 
TEN COM (= tenants in common), TEN ENT (= tenants by the
entireties), JT 

 

A-8

 

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).

 

The Company will furnish to
any Holder upon written request and without charge a copy of the Indenture
and/or the Registration Rights Agreement. 
Requests may be made to the Company at the following address:

 

PGS Solutions, Inc.

4250 North Fairfax Drive, Suite 1200

Arlington, VA  22203

Attention:  Chief Financial Officer

 

A-9

 

ASSIGNMENT FORM

 

To assign this Note, fill in
the form below:

 

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

  	
   

  
	
   

  	
   

  	
         (Insert
  assignee’ legal name)

  
	
   

  	
   

  
	
   

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

  
	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  and irrevocably appoint

  	
   

  
	
  to transfer this Note on the books of the Company. The agent may
  substitute another to act for him.

  	
   

  
	
   

  	
   

  
	
  Date: 

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Your
  Signature:

  	
   

  	
   

  
	
   

  	
   

  	
  (Sign
  exactly as your name appears on

  the face of this Note)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature
  Guarantee*:

  	
   

  	
   

  
										

 

*
Participant in a recognized Signature Guarantee Medallion

Program (or other signature guarantor acceptable to the Trustee).

 

A-10

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to elect to have
this Note purchased by the Company pursuant to Section 4.10 or 4.14 of the
Indenture, check the appropriate box below:

 

o Section 4.10                      o Section 4.14

 

If you want to elect to have
only part of this Note purchased by the Company pursuant to Section 4.10
or Section 4.14 of the Indenture, state the amount you elect to have
purchased:

 

$                  

 

	
  Date: 

  	
   

  	
   

  
	
   

  
	
   

  	
  Your
  Signature:

  	
   

  
	
   

  	
   

  	
  (Sign
  exactly as your name appears on

  the face of this Note)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Tax Identification No.:

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature Guarantee*:

  	
   

  	
   

  
								

 

*
Participant in a recognized Signature Guarantee Medallion

Program (or other signature guarantor acceptable to the Trustee).

 

A-11

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE*

 

The initial outstanding
principal amount of this Global Note is $                         .  The following exchanges of a part of this
Global Note for an interest in another Global Note or for a Definitive Note, or
exchanges of a part of another Global or Definitive Note for an interest in
this Global Note, have been made:

 

	
  Date of

  Exchange

  	
   

  	
  Amount of

  decrease

  in Principal

  Amount

  	
   

  	
  Amount of increase

  in Principal

  Amount of this

  Global Note

  	
   

  	
  Principal Amount

  of

  this Global Note

  following such

  decrease or

  increase

  	
   

  	
  Signature of

  authorized officer

  of Trustee or 

  Note Custodian

  	
   

  
	
             

  	
   

  	
            

  	
   

  	
            

  	
   

  	
            

  	
   

  	
            

  	
   

  
	
            

  	
   

  	
            

  	
   

  	
            

  	
   

  	
            

  	
   

  	
            

  	
   

  
	
            

  	
   

  	
            

  	
   

  	
            

  	
   

  	
            

  	
   

  	
            

  	
   

  

 

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

 

A-12

 

EXHIBIT B

 

FORM OF CERTIFICATE OF TRANSFER

 

PGS Solutions, Inc.

4250 North Fairfax Drive, Suite 1200

Arlington, VA  22203

Attention:  Chief Financial Office

 

The
Bank of New York

101 Barclay Street, Floor 8W

New York, New York  10286

Fax No.:  

Attention:  Corporate Trust
Administration

 

Re:  9 5/8% Senior Subordinated Notes due 2015

 

Reference is hereby made to
the Indenture, dated as of February 14, 2007 (the “Indenture”),
among PGS Solutions, Inc., the Guarantors named therein and the Trustee.  Capitalized terms used but not defined herein
shall have the meanings given to them in the Indenture.

 

                             
(the “Transferor”) owns and proposes to transfer the Note[s] or interest
in such Note[s] specified in Annex A hereto, in the principal amount of $                       
in such Note[s] or interests (the “Transfer”), to                            
(the “Transferee”), as further specified in Annex A hereto.  In connection with the Transfer, the
Transferor hereby certifies that:

 

[CHECK ALL THAT APPLY]

 

1.             o CHECK IF
TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN THE 144A GLOBAL NOTE
OR A DEFINITIVE NOTE PURSUANT TO RULE 144A. 
The Transfer is being effected pursuant to and in accordance with Rule 144A
under the United States Securities Act of 1933, as amended (the “Securities
Act”), and, accordingly, the Transferor hereby further certifies that the
beneficial interest or Definitive Note is being transferred to a Person that
the Transferor reasonably believes is purchasing the beneficial interest or
Definitive Note for its own account, or for one or more accounts with respect
to which such Person exercises sole investment discretion, and such Person and
each such account is a “qualified institutional buyer” within the meaning of Rule 144A
in a transaction meeting the requirements of Rule 144A and such Transfer
is in compliance with any applicable blue sky securities laws of any state of
the United States.

 

2.             o CHECK IF
TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN THE REGULATION S
GLOBAL NOTE OR A DEFINITIVE NOTE PURSUANT TO REGULATION S.  The Transfer is being effected pursuant to
and in accordance with Rule 903 or Rule 904 under the Securities Act
and, accordingly, the Transferor hereby further certifies that (i) the
Transfer is not being made to a person in the United States and (x) at the time
the buy order was originated, the Transferee was outside the United States or
such Transferor and any Person acting on its behalf reasonably believed and
believes that the Transferee was outside the United States or (y) the transaction
was executed in, on or through the facilities of a designated offshore securities
market and neither such Transferor nor any Person acting on its behalf knows
that the transaction was prearranged with a buyer in the United States, (ii) no
directed selling efforts have been made in contravention of the requirements of
Rule 903(b)

 

B-1

 

or Rule 904(b) of
Regulation S under the Securities Act (iii) the transaction is not part of
a plan or scheme to evade the registration requirements of the Securities Act
and (iv) if the proposed transfer is being made prior to the expiration of
the Restricted Period, the transfer is not being made to a U.S. Person or for
the account or benefit of a U.S. Person (other than an Initial Purchaser).  Upon consummation of the proposed transfer in
accordance with the terms of the Indenture, the transferred beneficial interest
or Definitive Note will be subject to the restrictions on Transfer enumerated
in the Indenture and the Securities Act.

 

3.             o CHECK AND
COMPLETE IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN THE
DEFINITIVE NOTE PURSUANT TO ANY PROVISION OF THE SECURITIES ACT OTHER THAN RULE
144A OR REGULATION S.  The Transfer is
being effected in compliance with the transfer restrictions applicable to
beneficial interests in Restricted Global Notes and Restricted Definitive Notes
and pursuant to and in accordance with the Securities Act and any applicable
blue sky securities laws of any state of the United States, and accordingly the
Transferor hereby further certifies that (check one):

 

(a)           o such
Transfer is being effected pursuant to and in accordance with Rule 144
under the Securities Act;

 

or

 

(b)           o such
Transfer is being effected to the Company or a subsidiary thereof;

 

or

 

(c)           o such
Transfer is being effected pursuant to an effective registration statement
under the Securities Act and in compliance with the prospectus delivery
requirements of the Securities Act.

 

4.             o CHECK IF
TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN AN UNRESTRICTED
GLOBAL NOTE OR OF AN UNRESTRICTED DEFINITIVE NOTE.

 

(a)           o CHECK IF
TRANSFER IS PURSUANT TO RULE 144. (i) The Transfer is being effected
pursuant to and in accordance with Rule 144 under the Securities Act and
in compliance with the transfer restrictions contained in the Indenture and any
applicable blue sky securities laws of any state of the United States and (ii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities
Act.  Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Note will no longer be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted
Global Notes, on Restricted Definitive Notes and in the Indenture.

 

(b)           o CHECK IF
TRANSFER IS PURSUANT TO REGULATION S. (i) The Transfer is being effected
pursuant to and in accordance with Rule 903 or Rule 904 under the
Securities Act and in compliance with the transfer restrictions contained in
the Indenture and any applicable blue sky securities laws of any state of the
United States and (ii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act. 
Upon consummation of the proposed Transfer in accordance with the terms
of the Indenture, the transferred beneficial interest or Definitive Note will
no longer be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Restricted Global Notes, on Restricted
Definitive Notes and in the Indenture.

 

B-2

 

(c)           o CHECK IF
TRANSFER IS PURSUANT TO OTHER EXEMPTION. 
(i)  The Transfer is being effected pursuant to and in
compliance with an exemption from the registration requirements of the
Securities Act other than Rule 144, Rule 903 or Rule 904 and in
compliance with the transfer restrictions contained in the Indenture and any
applicable blue sky securities laws of any State of the United States and (ii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities
Act.  Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Note will not be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Global
Notes or Restricted Definitive Notes and in the Indenture.

 

B-3

 

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

 

	
   

  	
  [Insert
  Name of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  Dated:  

  	
   

  	
   

  	
   

  
						

 

B-4

 

ANNEX A TO CERTIFICATE OF TRANSFER

 

	
   

  	
   

  
	
  1.

  	
  The Transferor owns and
  proposes to transfer the following:

  
	
   

  	
   

  
	
   

  	
  [CHECK
  ONE OF (a) OR (b)]

  
	
   

  	
   

  
	
  (a)

  	
  o a beneficial interest in the:

  
	
   

  	
   

  	
   

  
	
   

  	
  (i)

  	
  o 144A Global Note (CUSIP), or

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  o Regulation S Global Note (CUSIP), or

  
	
   

  	
   

  	
   

  
	
  (b)

  	
  o a Restricted Definitive Note.

  
	
   

  	
   

  
	
  2.

  	
  After the Transfer the
  Transferee will hold:

  
	
   

  	
   

  
	
   

  	
  [CHECK
  ONE]

  
	
   

  	
   

  
	
  (a)

  	
  o a beneficial interest in the:

  
	
   

  	
   

  	
   

  
	
   

  	
  (i)

  	
  o 144A Global Note (CUSIP), or

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  o Regulation S Global Note (CUSIP), or

  
	
   

  	
   

  	
   

  
	
   

  	
  (iii)

  	
  o Unrestricted Global Note (CUSIP); or

  
	
   

  	
   

  	
   

  
	
  (b)

  	
  o a Restricted Definitive Note; or

  
	
   

  	
   

  
	
  (c)

  	
  o an Unrestricted Definitive Note, in
  accordance with the terms of the Indenture.

  
				

 

B-5

 

EXHIBIT C

 

FORM OF CERTIFICATE OF EXCHANGE

 

PGS Solutions, Inc.

4250 North Fairfax Drive, Suite 1200

Arlington,
VA  22203

Attention:  Chief Financial Office

 

The
Bank of New York

101 Barclay Street, Floor 8W

New York, New York 10286

Fax No.: (212) 815-3272

Attention:  Corporate Trust
Administration

 

Re:  9 5/8% Senior Subordinated Notes due 2015

 

Reference is hereby made to
the Indenture, dated as of February 14, 2007 (the “Indenture”),
among PGS Solutions, Inc., the Guarantors named therein and the Trustee.  Capitalized terms used but not defined herein
shall have the meanings given to them in the Indenture.

 

                          
(the “Owner”) owns and proposes to exchange the Note[s] or interest in
such Note[s] specified herein, in the principal amount of $                     
in such Note[s] or interests (the “Exchange”).  In connection with the Exchange, the Owner
hereby certifies that:

 

(1)           EXCHANGE OF RESTRICTED
DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN A RESTRICTED GLOBAL NOTE FOR
UNRESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN AN UNRESTRICTED GLOBAL
NOTE

 

(a)           o
CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED GLOBAL NOTE TO
BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE.  In connection with the Exchange of the Owner’s
beneficial interest in a Restricted Global Note for a beneficial interest in an
Unrestricted Global Note in an equal principal amount, the Owner hereby
certifies (i) the beneficial interest is being acquired for the Owner’s
own account without transfer, (ii) such Exchange has been effected in
compliance with the transfer restrictions applicable to the Global Notes and
pursuant to and in accordance with the United States Securities Act of 1933, as
amended (the “Securities Act”), (iii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in
order to maintain compliance with the Securities Act and (iv) the
beneficial interest in an Unrestricted Global Note is being acquired in
compliance with any applicable blue sky securities laws of any state of the
United States.

 

(b)           o
CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED GLOBAL NOTE TO
UNRESTRICTED DEFINITIVE NOTE.  In
connection with the Exchange of the Owner’s beneficial interest in a Restricted
Global Note for an Unrestricted Definitive Note, the Owner hereby certifies (i) the
Definitive Note is being acquired for the Owner’s own account without transfer,
(ii) such Exchange has been effected in compliance with the transfer
restrictions applicable to the Restricted Global Notes and pursuant to and in
accordance with the Securities Act, (iii) the restrictions on transfer
contained in the Indenture and the 

 

C-1

 

Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the Definitive Note is being
acquired in compliance with any applicable blue sky securities laws of any
state of the United States.

 

(c)           o
CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO BENEFICIAL INTEREST IN
AN UNRESTRICTED GLOBAL NOTE.  In
connection with the Owner’s Exchange of a Restricted Definitive Note for a
beneficial interest in an Unrestricted Global Note, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without
transfer, (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to Restricted Definitive Notes and pursuant to
and in accordance with the Securities Act, (iii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the
beneficial interest is being acquired in compliance with any applicable blue
sky securities laws of any state of the United States.

 

(d)           o
CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO UNRESTRICTED DEFINITIVE
NOTE.  In connection with the Owner’s
Exchange of a Restricted Definitive Note for an Unrestricted Definitive Note,
the Owner hereby certifies (i) the Unrestricted Definitive Note is being
acquired for the Owner’s own account without transfer, (ii) such Exchange
has been effected in compliance with the transfer restrictions applicable to
Restricted Definitive Notes and pursuant to and in accordance with the
Securities Act, (iii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act and (iv) the Unrestricted
Definitive Note is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States.

 

(2)           EXCHANGE OF RESTRICTED
DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN RESTRICTED GLOBAL NOTES FOR
RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN RESTRICTED GLOBAL NOTES

 

(a)           o
CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED GLOBAL NOTE TO
RESTRICTED DEFINITIVE NOTE.  In
connection with the Exchange of the Owner’s beneficial interest in a Restricted
Global Note for a Restricted Definitive Note with an equal principal amount,
the Owner hereby certifies that the Restricted Definitive Note is being
acquired for the Owner’s own account without transfer.  Upon consummation of the proposed Exchange in
accordance with the terms of the Indenture, the Restricted Definitive Note
issued will continue to be subject to the restrictions on transfer enumerated
in the Private Placement Legend printed on the Restricted Definitive Note and
in the Indenture and the Securities Act.

 

(b)           o
CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO BENEFICIAL INTEREST IN
A RESTRICTED GLOBAL NOTE.  In connection
with the Exchange of the Owner’s Restricted Definitive Note for a beneficial
interest in the [CHECK ONE]  o
144A Global Note o Regulation S
Global Note, with an equal principal amount, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without
transfer and (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to the Restricted Global Notes and pursuant to
and in accordance with the Securities Act, and in compliance with any
applicable blue sky securities laws of any state of the United States.  Upon consummation of the proposed Exchange in
accordance with the terms of the Indenture, the beneficial interest issued will
be subject to the restrictions on transfer enumerated in the Private

 

C-2

 

Placement Legend printed on the relevant Restricted Global Note and in
the Indenture and the Securities Act.

 

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

 

	
   

  	
  [Insert Name of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:  

  	
   

  	
   

  	
   

  	
   

  
					

 

C-3

 

EXHIBIT D

 

[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 and subject to
the provisions set forth in the Indenture, dated as of February 14, 2007,
among PGS Solutions, Inc., a Delaware corporation (the “Company”),
the Guarantors party thereto and The Bank of New York, as trustee (as amended
or supplemented, the “Indenture”) (a) the due and prompt payment of
the principal of, premium and Additional Interest, if any, and interest on, the
Notes, whether at maturity, by acceleration, redemption or otherwise, the due
and prompt payment of interest on overdue principal of and interest on the
Notes, if any, if lawful, and the due and prompt 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
shall 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 this
Guarantee and the Indenture are expressly set forth in Article 10 of the
Indenture and reference is hereby made to the Indenture for the precise terms
of such Guarantee.  Each Holder of a
Note, by accepting the same, (a) agrees to and shall be bound by such
provisions, (b) authorizes and directs the Trustee, on behalf of such
Holder, to take such action as may be necessary or appropriate to effectuate
the subordination as provided in the Indenture and (c) appoints the
Trustee attorney-in-fact of such Holder for such purpose; provided,
however, that the Indebtedness evidenced
by this Guarantee shall cease to be so subordinated and subject to right of
payment upon any defeasance of the Notes or discharge and satisfaction of the
Indenture in accordance with and subject to the provisions of the Indenture.

 

Capitalized terms used but
not defined herein have the meanings given to them in the Indenture.

 

The validity and
enforceability of this Guarantee shall not be affected by the fact that it is
not affixed to any particular Note.

 

THIS GUARANTEE SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT
WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT
THAT THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY.  Each Guarantor hereby agrees
to submit to the jurisdiction of the courts of the State of New York in any
action or proceeding arising out of or relating to this Guarantee.

 

This Guarantee is subject to
release upon the terms set forth in Article 10 of the Indenture.

 

	
   

  	
  [Insert Guarantors]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

D-1

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