Document:

Exhibit 4.7

 

STEEL DYNAMICS, INC.,

 

as Issuer

 

and

 

SDI INVESTMENT COMPANY

STEEL DYNAMICS SALES NORTH AMERICA, INC.

NEW MILLENNIUM BUILDING SYSTEMS, LLC

ROANOKE ELECTRIC STEEL CORPORATION

NEW MILLENNIUM BUILDING SYSTEMS, INC.

SOCAR OF OHIO, INC.

SHREDDED PRODUCTS, LLC

SHREDDED PRODUCTS II, LLC

JOHN W. HANCOCK, JR., LLC

STEEL OF WEST VIRGINIA, INC.

STEEL VENTURES, INC.

SWVA, INC.

MARSHALL STEEL, INC.

THE TECHS INDUSTRIES, INC.

OMNISOURCE CORPORATION

ADMETCO, INC.

AUBURN INVESTMENT COMPANY, LLC

CAPITOL CITY METALS, LLC

CAROLINA INVESTMENT COMPANY, LLC

GLOBAL SHREDDING TECHNOLOGIES, LTD., LLC

INDUSTRIAL SCRAP CORPORATION

INDUSTRIAL SCRAP, LLC

JACKSON IRON & METAL COMPANY, INC.

LUCKY STRIKE METALS, LLC

MICHIGAN PROPERTIES ECORSE, LLC

OMNISOURCE ATHENS DIVISION, LLC

OMNISOURCE BAY CITY, LLC

OMNISOURCE INDIANAPOLIS, LLC

OMNISOURCE, LLC

OMNISOURCE MEXICO, LLC

OMNISOURCE TRANSPORT, LLC

RECOVERY TECHNOLOGIES, LLC

SCIENTIFIC RECYCLING GROUP, LLC

SUPERIOR ALUMINUM ALLOYS, LLC

as

 

Initial Subsidiary Guarantors

 

and

 

Wells Fargo Bank, National Association

 

as Trustee

 

 

Indenture

 

Dated as of April 3, 2008

 

 

73⁄4% Senior Notes due 2016

 

 

CROSS-REFERENCE
TABLE

 

	
  TIA Sections

  	
   

  	
  Indenture
  Sections

  
	
   

  	
   

  	
   

  	
   

  
	
  § 310(a)(1)

  	
   

  	
   

  	
  7.10

  
	
           (a)(2)

  	
   

  	
   

  	
  7.10

  
	
           (b)

  	
   

  	
   

  	
  7.03; 7.08

  
	
  § 311(a)

  	
   

  	
   

  	
  7.03

  
	
           (b)

  	
   

  	
   

  	
  7.03

  
	
  § 312(a)

  	
   

  	
   

  	
  2.04

  
	
           (b)

  	
   

  	
   

  	
  11.02

  
	
           (c)

  	
   

  	
   

  	
  11.02

  
	
  § 313(a)

  	
   

  	
   

  	
  7.06

  
	
           (b)(2)

  	
   

  	
   

  	
  7.07

  
	
           (c)

  	
   

  	
   

  	
  7.05; 7.06; 11.02

  
	
           (d)

  	
   

  	
   

  	
  7.06

  
	
  § 314(a)

  	
   

  	
   

  	
  4.11; 11.02

  
	
           (a)(4)

  	
   

  	
   

  	
  4.10; 11.02

  
	
           (c)(1)

  	
   

  	
   

  	
  11.03

  
	
           (c)(2)

  	
   

  	
   

  	
  11.03

  
	
           (e)

  	
   

  	
   

  	
  4.10; 11.04

  
	
  § 315(a)

  	
   

  	
   

  	
  7.02

  
	
           (b)

  	
   

  	
   

  	
  7.05; 11.02

  
	
           (c)

  	
   

  	
   

  	
  7.01

  
	
           (d)

  	
   

  	
   

  	
  7.02

  
	
           (e)

  	
   

  	
   

  	
  6.11

  
	
  § 316(a)(1)(A)

  	
   

  	
   

  	
  6.05

  
	
           (a)(1)(B)

  	
   

  	
   

  	
  6.04

  
	
           (b)

  	
   

  	
   

  	
  6.07

  
	
           (c)

  	
   

  	
   

  	
  9.03

  
	
  § 317(a)(1)

  	
   

  	
   

  	
  6.08

  
	
           (a)(2)

  	
   

  	
   

  	
  6.09

  
	
           (b)

  	
   

  	
   

  	
  2.05

  
	
  § 318(a)

  	
   

  	
   

  	
  11.01

  
	
           (c)

  	
   

  	
   

  	
  11.01

  

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  

 

	
  ARTICLE ONE

  
	
  DEFINITIONS AND
  INCORPORATION BY REFERENCE

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
  Definitions

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.02.

  	
  Incorporation
  by Reference of Trust Indenture Act

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.03.

  	
  Rules of
  Construction

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE TWO

  
	
  THE NOTES

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
  Form and
  Dating

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.02.

  	
  Restrictive
  Legends

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.03.

  	
  Execution,
  Authentication and Denominations

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.04.

  	
  Registrar
  and Paying Agent

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.05.

  	
  Paying Agent
  to Hold Money in Trust

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.06.

  	
  Transfer and
  Exchange

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.07.

  	
  Book-Entry
  Provisions for Global Notes

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.08.

  	
  Special
  Transfer Provisions

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.09.

  	
  Replacement
  Notes

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.10.

  	
  Outstanding
  Notes

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.11.

  	
  Temporary
  Notes

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.12.

  	
  Cancellation

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.13.

  	
  CUSIP
  Numbers

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.14.

  	
  Defaulted
  Interest

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.15.

  	
  Issuance of
  Additional Notes

  	
   

  	
  25

  

 

i

 

	
  ARTICLE THREE

  
	
  REDEMPTION

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  Right of
  Redemption

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.02.

  	
  Notices to
  Trustee

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.03.

  	
  Selection of
  Notes to Be Redeemed

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.04.

  	
  Notice of
  Redemption

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.05.

  	
  Effect of
  Notice of Redemption

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.06.

  	
  Deposit of
  Redemption Price

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.07.

  	
  Payment of
  Notes Called for Redemption

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.08.

  	
  Notes
  Redeemed in Part

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE FOUR

  
	
  COVENANTS

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
  Payment of
  Notes

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.02.

  	
  Maintenance
  of Office or Agency

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.03.

  	
  Limitation on Liens

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.04.

  	
  Limitation
  on Sale-Leaseback Transactions

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.05.

  	
  Repurchase
  of Notes upon a Change of Control

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.06.

  	
  Existence

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.07.

  	
  Payment of
  Taxes and Other Claims

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.08.

  	
  Maintenance
  of Properties and Insurance

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.09.

  	
  Notice of
  Defaults

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.10.

  	
  Compliance Certificates

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.11.

  	
  Commission
  Reports and Reports to Holders.

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.12.

  	
  Waiver of
  Stay, Extension or Usury Laws

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.13.

  	
  Issuance of
  Subsidiary Guarantees

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.14.

  	
  Additional
  Interest Notice

  	
   

  	
  33

  

 

ii

 

	
  ARTICLE FIVE

  
	
  SUCCESSOR CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
  When Company
  or Guarantors May Merge, Etc.

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.02.

  	
  Successor
  Substituted

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE SIX

  
	
  DEFAULT AND REMEDIES

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
  Events of
  Default

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.02.

  	
  Acceleration

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.03.

  	
  Other
  Remedies

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.04.

  	
  Waiver of
  Past Defaults

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.05.

  	
  Control by
  Majority

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.06.

  	
  Limitation on Suits

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.07.

  	
  Rights of
  Holders to Receive Payment

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.08.

  	
  Collection
  Suit by Trustee

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.09.

  	
  Trustee
  May File Proofs of Claim

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.10.

  	
  Priorities

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.11.

  	
  Undertaking
  for Costs

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.12.

  	
  Restoration
  of Rights and Remedies

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.13.

  	
  Rights and
  Remedies Cumulative

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.14.

  	
  Delay or
  Omission Not Waiver

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN

  
	
  TRUSTEE

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
  General

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.02.

  	
  Certain
  Rights of Trustee

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.03.

  	
  Individual
  Rights of Trustee

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.04.

  	
  Trustee’s
  Disclaimer

  	
   

  	
  42

  

 

iii

 

	
  SECTION 7.05.

  	
  Notice of
  Default

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.06.

  	
  Reports by
  Trustee to Holders

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.07.

  	
  Compensation
  and Indemnity

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.08.

  	
  Replacement
  of Trustee

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.09.

  	
  Successor
  Trustee by Merger, Etc.

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.10.

  	
  Eligibility

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.11.

  	
  Money Held
  in Trust

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT

  
	
  DISCHARGE OF INDENTURE

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.01.

  	
  Termination
  of Company’s Obligations

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.02.

  	
  Defeasance
  and Discharge of Indenture

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.03.

  	
  Defeasance
  of Certain Obligations

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.04.

  	
  Application
  of Trust Money

  	
   

  	
  50

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.05.

  	
  Repayment to
  Company

  	
   

  	
  50

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.06.

  	
  Reinstatement

  	
   

  	
  50

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE NINE

  
	
  AMENDMENTS, SUPPLEMENTS AND
  WAIVERS

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.01.

  	
  Without
  Consent of Holders

  	
   

  	
  50

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.02.

  	
  With Consent
  of Holders

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.03.

  	
  Revocation
  and Effect of Consent

  	
   

  	
  52

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.04.

  	
  Notation on
  or Exchange of Notes

  	
   

  	
  53

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.05.

  	
  Trustee to
  Sign Amendments, Etc.

  	
   

  	
  53

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.06.

  	
  Conformity
  with Trust Indenture Act

  	
   

  	
  53

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE TEN

  
	
  GUARANTEE OF NOTES

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.01.

  	
  Note
  Guarantee

  	
   

  	
  53

  

 

iv

 

	
  SECTION 10.02.

  	
  Obligations
  Unconditional

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.03.

  	
  Release of
  Note Guarantees

  	
   

  	
  56

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.04.

  	
  Notice to
  Trustee

  	
   

  	
  56

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.05.

  	
  This
  Article Not to Prevent Events of Default

  	
   

  	
  56

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.01.

  	
  Trust
  Indenture Act of 1939

  	
   

  	
  56

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.02.

  	
  Notices

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.03.

  	
  Certificate
  and Opinion as to Conditions Precedent

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.04.

  	
  Statements
  Required in Certificate or Opinion

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.05.

  	
  Rules by
  Trustee, Paying Agent or Registrar

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.06.

  	
  Payment Date
  Other Than a Business Day

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.07.

  	
  Governing
  Law

  	
   

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.08.

  	
  No Adverse
  Interpretation of Other Agreements

  	
   

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.09.

  	
  No Recourse
  Against Others

  	
   

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.10.

  	
  Successors

  	
   

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.11.

  	
  Duplicate
  Originals

  	
   

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.12.

  	
  Separability

  	
   

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.13.

  	
  Table of
  Contents, Headings, Etc.

  	
   

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.14.

  	
  Force
  Majeure

  	
   

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
  Form of Note

  	
   

  	
  A-1

  
	
  EXHIBIT B

  	
  Form of
  Certificate

  	
   

  	
  B-1

  
	
  EXHIBIT C

  	
  Form of Certificate to Be Delivered in Connection
  with Transfers Pursuant to Non-QIB Accredited Investors

  	
  C-1

  
	
  EXHIBIT D

  	
  Form of Certificate to Be Delivered in
  Connection with Transfers Pursuant to Regulation S

  	
  D-1

  

 

v

 

INDENTURE, dated as of April 3, 2008 among STEEL
DYNAMICS, INC., an Indiana corporation (the “Company”), the Initial
Subsidiary Guarantors (as defined herein), and Wells Fargo Bank, National
Association, a national banking association, as trustee (the “Trustee”).

 

RECITALS

 

The Company has duly authorized the execution and
delivery of this Indenture to provide for the issuance initially of up to
$375,000,000 aggregate principal amount of the Company’s 73⁄4% Senior Notes due
2016 (the “Notes”) issuable as provided in this Indenture.  All things necessary to make this Indenture a
valid agreement of the Company and the Initial 
Subsidiary Guarantors, in accordance with its terms, have been done, and
the Company has done all things necessary to make the Notes, when executed by
the Company and authenticated and delivered by the Trustee hereunder and duly
issued by the Company, valid obligations of the Company as hereinafter
provided.

 

This Indenture is subject to, and shall be governed
by, the provisions of the Trust Indenture Act of 1939, as amended, that are
required to be a part of and to govern indentures qualified under the Trust
Indenture Act of 1939, as amended.

 

AND THIS INDENTURE FURTHER WITNESSETH

 

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

 

ARTICLE
ONE

DEFINITIONS AND INCORPORATION BY REFERENCE

 

SECTION 1.01.      Definitions.

 

“Affiliate” means, as applied to any Person,
any other Person directly or indirectly controlling, controlled by, or under
direct or indirect common control with, such Person.  For purposes of this definition, “control”
(including, with correlative meanings, the terms “controlling,” “controlled
by” and “under common control with”), as applied to any Person,
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of such Person, whether through
the ownership of voting securities, by contract or otherwise.

 

“Agent” means any Registrar, Co-Registrar,
Paying Agent or authenticating agent.

 

“Agent Members” has the meaning provided in Section 2.07(a).

 

“Attributable
Debt” in respect of any Sale and Leaseback Transaction, means, as of the
time of determination, the total obligation (discounted to present value at the
rate per annum equal to the discount rate which would be applicable to a
capital lease obligation with like term in accordance with GAAP) of the lessee
for rental payments (other than amounts required 

 

 

to be paid on account of
property taxes, maintenance, repairs, insurance, water rates and other items
which do not constitute payments for property rights) during the remaining
portion of the initial term of the lease included in such Sale and Leaseback
Transaction.

 

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

 

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

 

“Business Day” means any day except a Saturday,
Sunday or other day on which commercial banks in The City of New York or in the
city of the Corporate Trust Office of the Trustee are authorized by law to
close.

 

“Capital Stock” means, with respect to any
Person, any and all shares, interests, participations or other equivalents
(however designated, whether voting or non-voting) in equity of such Person,
whether outstanding on the Closing Date or issued thereafter, including,
without limitation, all common stock and preferred stock.

 

“Change of Control” means such time as:

 

(i)            the direct or indirect sale,
transfer, conveyance or other disposition (other than by way of merger or
consolidation), in one or a series of related transactions, of all or
substantially all of the properties or assets of the Company and its
Subsidiaries, taken as a whole, to any “person” (as that term is used in Section 13(d)(3) of
the Exchange Act);

 

(ii)           a “person” or “group” (within the
meaning of Sections 13(d) and 14(d)(2) of the Exchange Act) becomes
the ultimate “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act) of more than 50% of the total voting power of the Voting Stock of
the Company on a fully diluted basis;

 

(iii)          the adoption of a plan relating to the
liquidation or dissolution of the Company;

 

(iv)          individuals who on the Closing Date
constitute the Board of Directors (together with any new directors whose
election by the Board of Directors or whose nomination by the Board of
Directors for election by the Company’s stockholders was approved by a vote of
at least two-thirds of the members of the Board of Directors then in office who
either were members of the Board of Directors on the Closing Date or whose
election or nomination for election was previously so approved) cease for any
reason to constitute a majority of the members of the Board of Directors then
in office; or

 

(v)           the Company consolidates with, or
merges with or into, any Person, or any Person consolidates with, or merges
with or into the Company, in any such event pursuant to a transaction in which
any of the outstanding Voting Stock of the Company or such other Person is
converted into or exchanged for cash, securities or other property, 

 

2

 

other than any
such transaction where (A) the Voting Stock of the Company outstanding
immediately prior to such transaction is converted into or exchanged for Voting
Stock of the surviving or transferee Person constituting a majority of the
outstanding shares of such Voting Stock of such surviving or transferee Person
(immediately after giving effect to such issuance) and (B) immediately
after such transaction, no “person” or “group” (as such terms are used in Section 13(d) and
14(d) of the Exchange Act) becomes, directly or indirectly, the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act) of 50% or more of
the voting power of the Voting Stock of the surviving or transferee Person.

 

“Closing Date” means the date on which the
Notes are originally issued under this Indenture.

 

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

 

“Company” means the party named as such in the
first paragraph of this Indenture until a successor replaces it pursuant to Article Five
of this Indenture and thereafter means the successor.

 

“Company Order” means a written request or
order signed in the name of the Company (i) by its Chairman, a Vice
Chairman, its President or a Vice President and (ii) by its Treasurer, an
Assistant Treasurer, its Secretary or an Assistant Secretary and delivered to
the Trustee; provided, however,
that such written request or order may be signed by any two of the officers or
directors listed in clause (i) above in lieu of being signed by one of
such officers or directors listed in such clause (i) and one of the
officers listed in clause (ii) above.

 

“Consolidated Tangible Assets” means the total
amount of assets of the Company and its Subsidiaries (less applicable
depreciation, amortization and other valuation reserves), after deducting
therefrom all goodwill, trade names, trademarks, patents, unamortized debt
discount and expense and other like intangibles, all as set forth on the most
recently available quarterly or annual consolidated balance sheet of the
Company and its Subsidiaries, prepared in conformity with GAAP.

 

“Corporate Trust Office” means the designated
office of the Trustee at which the corporate trust business of the Trustee
shall, at any particular time, be administered, which office is, at the date of
this Indenture, located at 230 West Monroe Street, Suite 2900, Chicago, IL
60606; Attention:  Corporate Trust
Services.

 

“Credit Agreement” means the Amended and
Restated Credit Agreement, dated as of June 19, 2007, among the Company,
as Borrower, certain designated “Initial Lenders,” National City Bank as
Collateral Agent, National City Bank and Wells Fargo Bank, National
Association, as Co-Administrative Agents, 
Bank of America, N.A. and National City Bank, as Syndication Agents,
National City Bank, as Paying Agent, Bank of America, N.A., General Electric
Capital Corporation, Fifth Third Bank and BMO Capital Markets Financing, Inc.,
as

 

3

 

Documentation Agents, and
Banc of America Securities LLC and National City Bank, as Joint Lead Arrangers,
and the lenders from time to time party thereto, together with any agreements,
instruments, security agreements, guaranties and other documents executed or
delivered pursuant to or in connection with such credit agreement, as such
credit agreement or such agreements, instruments, security agreements,
guaranties or other documents may be amended, supplemented, extended, restated,
renewed or otherwise modified from time to time and any refunding, refinancing,
replacement or substitution thereof or therefor, whether with the same or
different lenders.

 

“Credit Facilities” means one or more debt
facilities (including, without limitation, the Credit Agreement), commercial
paper facilities or indentures, in each case with banks or other institutional
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), letters of credit or issuance of notes, in each
case, as amended, restated, modified, renewed, refunded, replaced or refinanced
in whole or in part from time to time.

 

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

 

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

 

“Event of Default” has the meaning provided in Section 6.01.

 

“Exchange Act” means the Securities Exchange
Act of 1934, as amended.

 

“Exchange Notes” means any securities of the
Company containing terms identical to the Notes (except that such Exchange
Notes shall be registered under the Securities Act) that are issued and
exchanged for the Notes pursuant to the Registration Rights Agreement and this
Indenture.

 

“fair market value” means the price that would
be paid in an arm’s-length transaction between an informed and willing seller
under no compulsion to sell and an informed and willing buyer under no
compulsion to buy, as determined in good faith by the Board of Directors, whose
determination shall be conclusive if evidenced by a Board Resolution.

 

“Foreign Subsidiary” means any Subsidiary of
the Company that is an entity which is a controlled foreign corporation under Section 957
of the Internal Revenue Code and does not guarantee or otherwise provide direct
credit support for any Indebtedness of the Company or any Subsidiary Guarantor.

 

“Funded Debt” means all Indebtedness having a
maturity of more than 12 months from the date as of which the determination is
made or having a maturity of 12 months or less but by its terms being renewable
or extendable beyond 12 months from such date at the option of the borrower,
but excluding any such Indebtedness owed to the Company or a Subsidiary of the
Company.

 

4

 

“GAAP” means generally accepted accounting
principles in the United States set forth in the opinions and pronouncements of
the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as approved by
a significant segment of the accounting profession which are in effect on the
Closing Date.

 

“Global Notes” has the meaning provided in Section 2.01.

 

“Guarantee” means any obligation, contingent or
otherwise, of any Person directly or indirectly guaranteeing any Indebtedness
of any other Person and, without limiting the generality of the foregoing, any
obligation, direct or indirect, contingent or otherwise, of such Person (1) to
purchase or pay (or advance or supply funds for the purchase or payment of)
such Indebtedness of such other Person (whether arising by virtue of
partnership arrangements, or by agreements to keep-well, to purchase assets,
goods, securities or services (unless such purchase arrangements are on arm’s-length
terms and are entered into in the ordinary course of business), to take-or-pay,
or to maintain financial statement conditions or otherwise) or (2) entered
into for purposes of assuring in any other manner the obligee of such
Indebtedness of the payment thereof or to protect such obligee against loss in
respect thereof (in whole or in part); provided
that the term “Guarantee” shall not include endorsements for collection or
deposit in the ordinary course of business. 
The term “Guarantee” used as a verb has a corresponding meaning.

 

“Holder” or “Noteholder” means the
registered holder of any Note.

 

“Indebtedness” means indebtedness for borrowed money.

 

“Indenture” means
this Indenture as originally executed or as it may be amended or supplemented
from time to time by one or more indentures supplemental to this Indenture
entered into pursuant to the applicable provisions of this Indenture.

 

“Initial Subsidiary Guarantors” means SDI
Investment Company, a Delaware corporation, Steel Dynamics Sales North America, Inc.,
an Indiana corporation, New Millennium Building Systems, LLC, an Indiana
limited liability company, Roanoke Electric Steel Corporation, an Indiana
corporation, New Millennium Building Systems, Inc., a South Carolina
corporation, Socar of Ohio, Inc., an Ohio corporation, Shredded Products,
LLC, a Virginia limited liability company, Shredded Products II, LLC, an
Indiana limited liability company, John W. Hancock, Jr., LLC, a Virginia
limited liability company, Steel of West Virginia, Inc., a Delaware
corporation, Steel Ventures, Inc., a Delaware corporation, SWVA, Inc.,
a Delaware corporation, Marshall Steel, Inc., a Delaware corporation, The
Techs Industries, Inc., a Delaware corporation, OmniSource Corporation, an
Indiana corporation, Admetco, Inc., an Indiana corporation, Auburn Investment
Company, LLC, an Indiana limited liability company, Capitol City Metals, LLC,
an Indiana limited liability company, Carolina Investment Company, LLC, an
Indiana limited liability company, Global Shredding Technologies, Ltd., LLC, an
Indiana limited liability company, Industrial Scrap Corporation, an Indiana
corporation, Industrial Scrap, LLC, an Indiana limited liability company,
Jackson Iron & Metal Company, Inc., a Michigan corporation, Lucky
Strike Metals, LLC, an Indiana limited liability company, Michigan Properties
Ecorse, LLC, an Indiana limited liability company, OmniSource Athens Division,
LLC, an Indiana limited liability company, OmniSource Bay City, LLC, an Indiana
limited 

 

5

 

liability company,
OmniSource Indianapolis, LLC, an Indiana limited liability company, OmniSource,
LLC, an Indiana limited liability company, OmniSource Mexico, LLC, an Indiana
limited liability company, OmniSource Transport, LLC, an Indiana limited
liability company, Recovery Technologies, LLC, an Indiana limited liability
company, Scientific Recycling Group, LLC, an Indiana limited liability company,
and Superior Aluminum Alloys, LLC, an Indiana limited liability company.

 

“Institutional Accredited Investor” means an institution
that is an “accredited investor” as that term is defined in Rule 501(a)(1),
(2), (3) or (7) under the Securities Act.

 

“Interest Payment Date” means each semiannual
interest payment date on April 15 and October 15 of each year,
commencing October 15, 2008.

 

“Investment Grade” means (1) BBB- or
above, in the case of S&P (or its equivalent under any successor Rating
Categories of S&P) and Baa3 or above, in the case of Moody’s (or its
equivalent under any successor Rating Categories of Moody’s) or (2) the
equivalent in respect of the Rating Categories of any Rating Agencies.

 

“Moody’s” means Moody’s Investors Service, Inc.
and its successors.

 

“Mortgage” means, with respect to any property
or assets, any mortgage or deed of trust, pledge, hypothecation, assignment,
security interest, lien, encumbrance, or any other security arrangement of any
kind or nature whatsoever on or with respect to such property or assets
(including any conditional sale or other title retention agreement having
substantially the same economic effect as any of the foregoing).

 

“Net Cash Proceeds” means the proceeds of such
issuance or sale in the form of cash or cash equivalents, including payments in
respect of deferred payment obligations (to the extent corresponding to the principal,
but not interest, component thereof) when received in the form of cash or cash
equivalents and proceeds from the conversion of other property received when
converted to cash or cash equivalents, net of attorney’s fees, accountants’
fees, underwriters’ or placement agents’ fees, discounts or commissions and
brokerage, consultant and other fees incurred in connection with such issuance
or sale and net of taxes paid or payable as a result thereof.

 

“Non-U.S. Person” means a person who is not a “U.S.
person” (as defined in Regulation S).

 

“Note Guarantee” means a Guarantee of the
obligations of the Company under this Indenture and the Notes by any Subsidiary
Guarantor.

 

“Notes” means any of the securities, as defined
in the first paragraph of the recitals hereof, that are authenticated and
delivered under this Indenture.  For all
purposes of this Indenture, the term “Notes” shall include the Notes initially
issued on the Closing Date, any Exchange Notes to be issued and exchanged for
any Notes pursuant to the Registration Rights Agreement and this Indenture and
any other Notes issued after the Closing Date under this Indenture.  For purposes of this Indenture, all Notes
shall vote together as one series of Notes under this Indenture.

 

6

 

“Offer to Purchase” means an offer to purchase
Notes by the Company from the Holders commenced by mailing a notice to the
Trustee and each Holder stating:

 

(i)            that all Notes validly
tendered will be accepted for payment on a pro rata basis;

 

(ii)           the purchase price and
the date of purchase (which shall be a Business Day no earlier than 30 days nor
later than 60 days from the date such notice is mailed) (the “Payment Date”);

 

(iii)          that any Note not
tendered will continue to accrue interest pursuant to its terms;

 

(iv)          that, unless the Company
defaults in the payment of the purchase price, any Note accepted for payment
pursuant to the Offer to Purchase shall cease to accrue interest on and after
the Payment Date;

 

(v)           that Holders electing
to have a Note purchased pursuant to the Offer to Purchase will be required to
surrender the Note, together with the form entitled “Option of the Holder to
Elect Purchase” on the reverse side of the Note completed, to the Paying Agent
at the address specified in the notice prior to the close of business on the
Business Day immediately preceding the Payment Date;

 

(vi)          that Holders will be
entitled to withdraw their election if the Paying Agent receives, not later
than the close of business on the third Business Day immediately preceding the
Payment Date, a telegram, facsimile transmission or letter setting forth the
name of such Holder, the principal amount of Notes delivered for purchase and a
statement that such Holder is withdrawing his election to have such Notes
purchased; and

 

(vii)         that Holders whose Notes
are being purchased only in part will be issued new Notes equal in principal
amount to the unpurchased portion of the Notes surrendered; provided that each Note purchased and each
new Note issued shall be in a principal amount of $2,000 or integral multiples
of $1,000 in excess thereof.

 

On the Payment Date, the Company shall (a) accept for payment on a
pro rata basis (with such adjustments as needed so that no Notes purchased in
part shall be in an unauthorized denomination) Notes or portions thereof
tendered pursuant to an Offer to Purchase; (b) deposit with the Paying
Agent money sufficient to pay the purchase price of all Notes or portions
thereof so accepted; and (c) deliver, or cause to be delivered, to the
Trustee all Notes or portions thereof so accepted together with an Officers’
Certificate specifying the Notes or portions thereof accepted for payment by
the Company.  The Paying Agent shall
promptly mail to the Holders of Notes so accepted payment in an amount equal to
the purchase price, and the Trustee shall promptly authenticate and mail to
such Holders a new Note equal in principal amount to any unpurchased portion of
the Note surrendered; provided
that each Note purchased and each new Note issued shall be in a principal
amount of $2,000 or integral multiples of $1,000 in excess thereof.  The Company will publicly announce the
results of an Offer to Purchase as soon as practicable after the Payment
Date.  The Trustee shall act as the
Paying Agent for an Offer to Purchase. 
The Company will comply with Rule 14e-1 under the Exchange Act and
any other 

 

7

 

securities laws and regulations thereunder to the extent such laws and
regulations are applicable, in the event that the Company is required to
repurchase Notes pursuant to an Offer to Purchase.

 

“Officer” means, with respect to the Company, (i) the
Chairman of the Board, any Vice Chairman of the Board, the Chief Executive
Officer, the President, any Vice President or the Chief Financial Officer, and (ii) the
Treasurer or any Assistant Treasurer, or the Secretary or any Assistant
Secretary.

 

“Officers’ Certificate” means a certificate
signed by one Officer listed in clause (i) of the definition thereof and
one Officer listed in clause (ii) of the definition thereof or two
officers listed in clause (i) of the definition thereof.  Each Officers’ Certificate (other than
certificates provided pursuant to TIA Section 314(a)(4)) shall include the
statements provided for in TIA Section 314(e).

 

“Offshore Global Note” has the meaning provided
in Section 2.01.

 

“Offshore Physical Notes” has the meaning
provided in Section 2.01.

 

“Operating Property” means any real property,
including any manufacturing plant or warehouse erected thereon, or equipment
located in the United States owned by, or leased to, the Company, or any
Subsidiary of the Company, that has a market value in excess of $50.0 million.

 

“Opinion of Counsel” means a written opinion signed
by legal counsel reasonably acceptable to the Trustee, who may be an employee
of or counsel to the Company, that meets the requirements of Section 11.04.  Each such Opinion of Counsel shall include
the statements provided for in TIA Section 314(e).

 

“Paying Agent” has the meaning provided in Section 2.04,
except that, for the purposes of Article Eight, the Paying Agent shall not
be the Company or a Subsidiary of the Company or an Affiliate of any of
them.  The term “Paying Agent”
includes its successors and assigns and any additional Paying Agent.

 

“Paying Agent Office” means the designated
office of the Trustee at which the corporate trust paying agent office of the
Trustee shall, at any particular time, be administered, which office is, at the
date of this Indenture, located at 608 Second Avenue South, MAC N9303-121,
Minneapolis, MN 55479; Attention: Corporate Trust Operation.

 

“Payment Date” has the meaning provided in the
definition of Offer to Purchase.

 

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

 

“Physical Notes” has the meaning provided in Section 2.01.

 

“principal” of a debt security, including the
Notes, means the principal amount due on the Stated Maturity as shown on such
debt security.

 

8

 

“Private Placement Legend” means the legend
initially set forth as the first legend on the Notes in the form set forth in Section 2.02.

 

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

 

“Rating Agencies” means (1) S&P and
Moody’s or (2) if S&P or Moody’s or both of them are not making
ratings publicly available, a nationally recognized U.S. rating agency or
agencies, as the case may be, selected by the Company, which will be
substituted for S&P or Moody’s or both, as the case may be.

 

“Rating Category” means (1) with respect
to S&P, any of the following categories (any of which may include a “+” or
a “-”): AAA, AA, A, BBB, BB, B, CCC, CC, C and D (or equivalent successor
categories), (2) with respect to Moody’s, any of the following
categories:  Aaa, Aa, A, Baa, Ba, B, Caa,
Ca, C and D (or equivalent successor categories) and (3) the equivalent of
any such categories of S&P or Moody’s used by another Rating Agency, if
applicable.

 

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

 

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

 

“Registrar” has the meaning provided in Section 2.04.

 

“Registration Rights Agreement” means the
registration rights agreement among the Company, the Initial Subsidiary
Guarantors, Banc of America Securities LLC, Goldman, Sachs & Co.,
Morgan Stanley & Co. Incorporated, ABN AMRO Incorporated and Wells
Fargo Securities, LLC dated April 3, 2008.

 

“Registration Statement” has the meaning
provided in the Registration Rights Agreement.

 

“Regular Record Date” for the interest payable
on any Interest Payment Date means the April 1 or October 1 (whether
or not a Business Day), as the case may be, next preceding such Interest
Payment Date.

 

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

 

“Responsible Officer,” when used with respect
to the Trustee, means any officer of the Trustee in its Corporate Trust Office,
including any vice president, assistant vice president, assistant treasurer,
assistant secretary, 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, with direct responsibility for
the administration of this Indenture and also means, with respect to a
particular corporate trust matter, any other officer to whom such matter is
referred because of his or her knowledge of and familiarity with the particular
subject.

 

9

 

“Restricted Global Note” means a Global Note
that is a Restricted Note.

 

“Restricted Note” has the meaning set forth in Rule 144(a)(3) under
the Securities Act for the term “restricted securities”; provided, however,
that the Trustee shall be entitled to request and conclusively rely upon an
Opinion of Counsel with respect to whether any Note is a Restricted Note.  Restricted Notes are required to bear the
Private Placement Legend.

 

“Restricted Subsidiary” means any Subsidiary of
the Company other than an Unrestricted Subsidiary.

 

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

 

“Sale and Leaseback Transaction” means any
arrangement with any Person providing for the leasing to the Company or any
Subsidiary of the Company of any property or assets, which property or assets
have been or are to be sold or transferred by the Company or any Subsidiary of
the Company to such Person.

 

“S&P” means Standard & Poor’s
Ratings Group, a division of The McGraw-Hill Companies, and its successors.

 

“Securities Act” means the Securities Act of
1933, as amended.

 

“Security Register” has the meaning provided in
Section 2.04.

 

“Shelf Registration Statement” has the meaning
provided in the Registration Rights Agreement.

 

“Significant Subsidiary” means, at any date of
determination, any Restricted Subsidiary that would constitute a “significant
subsidiary” within the meaning of Article 1 of Regulation S-X of the
Securities Act as in effect on the Closing Date; provided that all references
to 10% in the definition of “significant subsidiary” in Article 1 of
Regulation S-X of the Securities Act shall be deemed to be 7.5%.

 

“Stated Maturity” means, (1) with respect
to any debt security, the date specified in such debt security as the fixed
date on which the final installment of principal of such debt security is due
and payable and (2) with respect to any scheduled installment of principal
of or interest on any debt security, the date specified in such debt security
as the fixed date on which such installment is due and payable.

 

“Subsidiary” means any corporation of which at
least a majority of the outstanding stock having by the terms thereof ordinary
voting power for the election of directors of such corporation (irrespective of
whether or not at the time stock of any other class or classes of such
corporation shall have or might have voting power by reason of the happening of
any contingency) is, or other entity of which at least a majority of the common
equity interests are, at the time directly or indirectly owned by the Company,
or by one or more other Subsidiaries of the Company, or by the Company and one
or more other Subsidiaries of the Company.

 

10

 

“Subsidiary Guarantor”
means any Initial Subsidiary Guarantor and any other Subsidiary of the Company
which provides a Note Guarantee of the Company’s obligations under the
Indenture and the Notes, until such Note Guarantee is released in accordance
with the terms of this Indenture.

 

“TIA” or “Trust
Indenture Act” means the Trust Indenture Act of 1939 (15 U.S. Code
§§ 77aaa-77bbbb), as in effect on the date this Indenture was executed,
except as provided in Section 9.06.

 

“Trustee” means the party named as such in the
first paragraph of this Indenture until a successor replaces it in accordance
with the provisions of Article Seven of this Indenture and thereafter
means such successor.

 

“United States Bankruptcy Code” means the
Bankruptcy Reform Act of 1978, as amended and as codified in Title 11 of the
United States Code, as amended from time to time hereafter, or any successor
federal bankruptcy law.

 

“Unrestricted Global Note” means a Global Note
that is an Unrestricted Note.

 

“Unrestricted Notes” means one or more Notes
that do not and are not required to bear the Private Placement Legend,
including, without limitation, the Exchange Notes and any Notes registered
under the Securities Act pursuant to and in accordance with the Registration
Rights Agreement.

 

“Unrestricted Subsidiary” means STLD Holdings, Inc.,
Dynamic Aviation, LLC, Paragon Steel Enterprises, LLC and each of their
respective direct and indirect Subsidiaries; provided,
however, in the event (a) any such Subsidiary Guarantees
Indebtedness of the Company or any Subsidiary Guarantor in an aggregate amount
exceeds $50 million or (b) the Company or any of its Subsidiaries (other
than an Unrestricted Subsidiary) contributes or otherwise transfers (other than
a sale for fair market value) any Operating Property (including shares of stock
of a Subsidiary that owns the Operating Property) to such Subsidiary, in either
case such Subsidiary shall cease to be an Unrestricted Subsidiary and if such
Subsidiary would be a Significant Subsidiary, such Subsidiary will Guarantee
payment of the principal of, premium if any and interest on the Notes.

 

“U.S. Global Notes” has the meaning provided in
Section 2.01.

 

“U.S. Government Obligations” means securities
that are (1) direct obligations of the United States of America for the
payment of which its full faith and credit is pledged or (2) obligations
of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America the payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United
States of America, which, in either case, are not callable or redeemable at the
option of the issuer thereof at any time prior to the Stated Maturity of the
Notes, and shall also include a depository receipt issued by a bank or trust
company as custodian with respect to any such U.S. Government Obligation or a
specific payment of interest on or principal of any such U.S. Government
Obligation held by such custodian for the account of the holder of a depository
receipt; provided that (except as
required by law) such custodian is not authorized to make any deduction from
the amount payable to the holder of such depository 

 

11

 

receipt from any amount
received by the custodian in respect of the U.S. Government Obligation or the
specific payment of interest on or principal of the U.S. Government Obligation
evidenced by such depository receipt.

 

 “U.S.
Physical Notes” has the meaning provided in Section 2.01.

 

“Voting Stock” means with respect to any
Person, Capital Stock of any class or kind ordinarily having the power to vote
for the election of directors, managers or other voting members of the
governing body of such Person.

 

SECTION 1.02.      Incorporation by Reference of Trust Indenture
Act.  Whenever this Indenture refers
to a provision of the TIA, the provision is incorporated by reference in and
made a part of this Indenture.  The
following TIA terms used in this Indenture have the following meanings:

 

“indenture securities”
means the Notes;

 

“indenture security
holder” means a Holder or a Noteholder;

 

“indenture to be
qualified” means this Indenture;

 

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

 

“obligor” on the
indenture securities means the Company or any other obligor on the Notes.

 

All other TIA terms used in this Indenture that are
defined by the TIA, defined by TIA reference to another statute or defined by a
rule of the Commission and not otherwise defined herein have the meanings
assigned to them therein.

 

SECTION 1.03.      Rules of
Construction.  Unless the context
otherwise requires:

 

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

 

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

 

(iii)          “or”
is not exclusive;

 

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

 

(v)           provisions
apply to successive events and transactions;

 

(vi)          “herein,”
“hereof” and other words of similar import refer to this Indenture as a whole
and not to any particular Article, Section or other subdivision;

 

12

 

(vii)         all
ratios and computations based on GAAP contained in this Indenture shall be
computed in accordance with the definition of GAAP set forth in Section 1.01;
and

 

(viii)        all
references to Sections or Articles refer to Sections or Articles of this
Indenture unless otherwise indicated.

 

ARTICLE
TWO

THE NOTES

 

SECTION 2.01.      Form and
Dating.  The Notes and the Trustee’s certificate of
authentication shall be substantially in the form annexed hereto as Exhibit A
with such appropriate insertions, omissions, substitutions and other variations
as are required or permitted by this Indenture. 
The Notes may have notations, legends or endorsements required by law,
stock exchange agreements to which the Company or any Subsidiary Guarantor is
subject or usage. The Company shall approve the form of the Notes and any
notation, legend or endorsement on the Notes. 
Each Note shall be dated the date of its authentication.

 

The terms and provisions contained in the form of the
Notes annexed hereto as Exhibit A shall constitute, and are hereby
expressly made, a part of this Indenture. 
To the extent applicable, the Company, each Subsidiary Guarantor and the
Trustee, by their execution and delivery of this Indenture, expressly agree to
such terms and provisions and to be bound thereby.

 

Notes offered and sold in reliance on Rule 144A
shall be issued initially in the form of one or more permanent Global Notes in
registered form in substantially the form set forth in Exhibit A (the “U.S.
Global Notes”), registered in the name of the nominee of the Depositary,
deposited with the Trustee, as custodian for the Depositary, duly executed by
the Company and authenticated by the Trustee as hereinafter provided.  The aggregate principal amount of the U.S.
Global Notes may from time to time be increased or decreased by adjustments
made on the records of the Trustee, as custodian for the Depositary or its
nominee, in accordance with the instructions given by the Holder thereof, as
hereinafter provided.

 

Notes offered and sold in offshore transactions in
reliance on Regulation S shall be issued initially in the form of one or more
temporary Global Notes in registered form in substantially the form set forth
in Exhibit A (the “Offshore Global Notes”), registered in the name
of the nominee of the Depositary, deposited with the Trustee, as custodian for
the Depositary, duly executed by the Company and authenticated by the Trustee
as hereinafter provided.  The aggregate
principal amount of the Offshore Global Notes may from time to time be
increased or decreased by adjustments made on the records of the Trustee, as
custodian for the Depositary or its nominee, in accordance with the
instructions given by the Holder thereof, as hereinafter provided.

 

Notes transferred to Institutional Accredited
Investors pursuant to Section 2.08(a) of this Indenture shall be
issued in the form of permanent certificated Notes in registered form in
substantially the form set forth in Exhibit A (the “U.S. Physical Notes”).  Notes issued pursuant to Section 2.07 in
exchange for interests in the Offshore Global Notes shall be in the form of

 

13

 

 

permanent certificated
Notes in registered form substantially in the form set forth in Exhibit A
(the “Offshore Physical Notes”).

 

The Offshore Physical Notes and U.S. Physical Notes
are sometimes collectively herein referred to as the “Physical Notes.”  The U.S. Global Notes and the Offshore Global
Notes are sometimes referred to herein as the “Global Notes.”

 

The definitive Notes shall be typed, printed,
lithographed or engraved or produced by any combination of these methods or may
be produced in any other manner permitted by the rules of any securities
exchange on which the Notes may be listed, all as determined by the Officers
executing such Notes, as evidenced by their execution of such Notes.

 

SECTION 2.02.      Restrictive Legends. 
Unless and until (i) a Note is exchanged for an Exchange Note or
sold in connection with an effective Registration Statement pursuant to the
Registration Rights Agreement or (ii) the Private Placement Legend has
been removed from such Note in accordance with Section 2.08(e) or,
with respect to a Restricted Global Note, all of the beneficial interests in
such Restricted Global Note have been exchanged for beneficial interests in the
Unrestricted Global Note in accordance with Section 2.08(g), (x) each
U.S. Global Note and each U.S. Physical Note shall be a Restricted Note and
bear the legend set forth below on the face thereof and (y) each Offshore
Physical Note and each Offshore Global Note shall be a Restricted Note and bear
the legend set forth below on the face thereof until at least the 41st day
after the Closing Date and receipt by the Company and the Trustee of a
certificate substantially in the form of Exhibit B hereto.

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND ACCORDINGLY, MAY NOT
BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR
BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE.  BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS
THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT) OR (B) IT IS AN INSTITUTIONAL “ACCREDITED
INVESTOR” (AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) OF
REGULATION D UNDER THE SECURITIES ACT) (AN “INSTITUTIONAL ACCREDITED
INVESTOR”) OR (C) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS NOTE IN AN
OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT, (2) AGREES
THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO
STEEL DYNAMICS, INC. OR ANY OF ITS SUBSIDIARIES, (B) TO A QUALIFIED
INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C) INSIDE
THE UNITED STATES TO AN INSTITUTIONAL ACCREDITED INVESTOR THAT, PRIOR TO SUCH
TRANSFER, FURNISHES TO THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
REPRESENTATIONS AND AGREEMENTS RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS
NOTE (THE FORM OF WHICH LETTER CAN BE OBTAINED FROM THE TRUSTEE), AND, IF
SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF NOTES OF LESS
THAN $100,000, AN OPINION OF COUNSEL ACCEPTABLE TO STEEL DYNAMICS, INC. THAT 

 

14

 

SUCH TRANSFER IS IN COMPLIANCE WITH THE SECURITIES
ACT, (D) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN
COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT, (E) PURSUANT TO THE
EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF
AVAILABLE) OR (F) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT AND (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO
WHOM THIS NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS
LEGEND.  IN CONNECTION WITH ANY TRANSFER
OF THIS NOTE, THE HOLDER MUST TRANSFER AND SUBMIT THIS CERTIFICATE TO THE
TRUSTEE.  IF THE PROPOSED TRANSFEREE IS
AN INSTITUTIONAL ACCREDITED INVESTOR OR NON-U.S. PERSON, THE HOLDER MUST, PRIOR
TO SUCH TRANSFER, FURNISH TO THE TRUSTEE AND STEEL DYNAMICS, INC. SUCH
CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS EITHER OF THEM MAY REASONABLY
REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT.  AS USED HEREIN, THE
TERMS “OFFSHORE TRANSACTION”, “UNITED STATES” AND “U.S. PERSON” HAVE THE
MEANINGS GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT.  THE INDENTURE CONTAINS PROVISIONS REQUIRING
THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE IN VIOLATION OF THE
FOREGOING RESTRICTION.

 

Each Global Note, whether or not an Exchange Note,
Restricted Global Note or Unrestricted Global Note shall also bear the
following legend on the face thereof:

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN THE NAME OF SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO
TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR TO A
SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS
GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN SECTION 2.08 OF THE INDENTURE.

 

15

 

SECTION 2.03.      Execution, Authentication and Denominations.  Subject to Article Four and applicable
law, the aggregate principal amount of Notes which may be authenticated and
delivered under this Indenture is unlimited. 
The Notes shall be executed by one Officer of the Company.  The signature of this Officer on the Notes
may be by facsimile or manual signature in the name and on behalf of the
Company.

 

If the Officer whose signature is on a Note no longer
holds that office at the time the Trustee or authenticating agent authenticates
the Note, the Note shall be valid nevertheless.

 

A Note shall not be valid until the Trustee or
authenticating agent manually signs the certificate of authentication on the
Note.  The signature shall be conclusive
evidence that the Note has been authenticated under this Indenture.

 

At any time and from time to time after the execution
of this Indenture, the Trustee or an authenticating agent shall upon receipt of
a Company Order authenticate for original issue Notes in the aggregate
principal amount specified in such Company Order; provided that the Trustee shall be entitled to receive an
Officers’ Certificate and an Opinion of Counsel of the Company in connection
with such authentication of Notes.  Such
Company Order shall specify the amount of Notes to be authenticated and the
date on which the original issue of Notes is to be authenticated and, in case
of an issuance of Notes pursuant to Section 2.15, shall certify that such
issuance is in compliance with Article Four.

 

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

 

The Notes shall be issuable only in registered form
without coupons and only in denominations of $2,000 in principal amount and
multiples of $1,000 in excess thereof.

 

SECTION 2.04.      Registrar and Paying Agent.  The Company shall maintain an office or
agency where Notes may be presented for registration of transfer or for
exchange (the “Registrar”), an office or agency where Notes may be
presented for payment (the “Paying Agent”) and an office or agency where
notices and demands to or upon the Company in respect of the Notes and this
Indenture may be served.  The Company
shall cause the Registrar to keep a register of the Notes and of their transfer
and exchange (the “Security Register”). 
The Security Register shall be in written form or any other form capable
of being converted into written form within a reasonable time.  The Company may have one or more
co-Registrars and one or more additional Paying Agents.

 

The Company shall enter into an appropriate agency
agreement with any Agent not a party to this Indenture.  The agreement shall implement the provisions
of this Indenture that relate to such Agent. 
The Company shall give prompt written notice to the Trustee of the name
and address of any such Agent and any change in the address of such Agent.  If the Company fails to maintain a Registrar,
Paying Agent and/or agent for service of notices and demands, the Company shall
appoint the Trustee to act as, and the Trustee shall act as, such Registrar,
Paying 

 

16

 

Agent and/or agent for
service of notices and demands.  The
Company may remove any Agent upon written notice to such Agent and the Trustee;
provided that no such removal
shall become effective until (i) the acceptance of an appointment by a
successor Agent to such Agent as evidenced by an appropriate agency agreement
entered into by the Company and such successor Agent and delivered to the
Trustee or (ii) notification to the Trustee that the Trustee shall serve
as such Agent until the appointment of a successor Agent in accordance with
clause (i) of this proviso.  The
Company, any Subsidiary of the Company, or any Affiliate of any of them may act
as Paying Agent, Registrar or co-Registrar, and/or agent for service of notice
and demands.

 

The Company hereby initially appoints the Trustee as
Registrar, Paying Agent, authenticating agent and agent for service of notice
and demands.  The Trustee shall preserve
in as current a form as is reasonably practicable the most recent list
available to it of the names and addresses of Holders and shall otherwise
comply with TIA § 312(a).  If
the Trustee is not the Registrar, the Company shall furnish to the Trustee as
of each Regular Record Date and at such other times as the Trustee may
reasonably request the names and addresses of Holders as they appear in the
Security Register, including the aggregate principal amount of Notes held by
each Holder.

 

SECTION 2.05.      Paying Agent to Hold Money in Trust.  Not later than 11:00 a.m. (New York City
time) on each due date of the principal, premium, if any, and interest on any
Notes, the Company shall deposit with the Paying Agent money in immediately
available funds sufficient to pay such principal, premium, if any, and interest
so becoming due.  The Company shall
require each Paying Agent other than the Trustee to agree in writing that such
Paying Agent shall hold in trust for the benefit of the Holders or the Trustee
all money held by the Paying Agent for the payment of principal of, premium, if
any, and interest on the Notes (whether such money has been paid to it by the
Company or any other obligor on the Notes), and such Paying Agent shall
promptly notify the Trustee of any default by the Company (or any other obligor
on the Notes) in making any such payment. 
The Company at any time may require a Paying Agent to pay all money held
by it to the Trustee and account for any funds disbursed, and the Trustee may
at any time during the continuance of any payment default, upon written request
to a Paying Agent, require such Paying Agent to pay all money held by it to the
Trustee and to account for any funds disbursed. 
Upon doing so, the Paying Agent shall have no further liability for the
money so paid over to the Trustee.  If
the Company or any Subsidiary of the Company or any Affiliate of any of them
acts as Paying Agent, it will, on or before each due date of any principal of,
premium, if any, or interest on the Notes, segregate and hold in a separate
trust fund for the benefit of the Holders a sum of money sufficient to pay such
principal, premium, if any, or interest so becoming due until such sum of money
shall be paid to such Holders or otherwise disposed of as provided in this
Indenture, and will promptly notify the Trustee of its action or failure to
act.

 

SECTION 2.06.      Transfer and Exchange. 
The Notes are issuable only in registered form.  A Holder may transfer a Note only by written
application to the Registrar stating the name of the proposed transferee and
otherwise complying with the terms of this Indenture.  No such transfer shall be effected until, and
such transferee shall succeed to the rights of a Holder only upon, final
acceptance and registration of the transfer by the Registrar in the Security
Register.  Prior to the registration of
any transfer by a Holder as provided herein, the Company, the Trustee, and any
agent of the Company shall treat the person in whose name the 

 

17

 

Note is registered as the owner thereof for
all purposes whether or not the Note shall be overdue, and neither the Company,
the Trustee, nor any such agent shall be affected by notice to the
contrary.  Furthermore, any Holder of a
Global Note shall, by acceptance of such Global Note, agree that transfers of
beneficial interests in such Global Note may be effected only through a book
entry system maintained by the Holder of such Global Note (or its agent) and
that ownership of a beneficial interest in the Note shall be required to be reflected
in a book entry.  When Notes are
presented to the Registrar or a co-Registrar with a request to register the
transfer or to exchange them for an equal principal amount of Notes of other
authorized denominations (including an exchange of Notes for Exchange Notes),
the Registrar shall register the transfer or make the exchange as requested if
its requirements for such transactions are met (including that such Notes are
duly endorsed or accompanied by a written instrument of transfer in form
satisfactory to the Trustee and Registrar duly executed by the Holder thereof
or by an attorney who is authorized in writing to act on behalf of the Holder);
provided that no exchanges of
Notes for Exchange Notes shall occur until a Registration Statement shall have
been declared effective by the Commission and that any Notes that are exchanged
for Exchange Notes shall be cancelled by the Trustee.  To permit registrations of transfers and
exchanges, the Company shall execute and the Trustee shall authenticate Notes
at the Registrar’s request.  No service
charge shall be made for any registration of transfer or exchange or redemption
of the Notes, but the Company may require payment of a sum sufficient to cover
any transfer tax or similar governmental charge payable in connection therewith
(other than any such transfer taxes or other similar governmental charge
payable upon exchanges pursuant to Section 2.11, 3.08 or 9.04).

 

The Registrar shall not be required (i) to issue,
register the transfer of or exchange any Note during a period beginning at the
opening of business 15 days before the day of the mailing of a notice of
redemption of Notes selected for redemption under Section 3.03 and ending
at the close of business on the day of such mailing, or (ii) to register
the transfer of or exchange any Note so selected for redemption in whole or in
part, except the unredeemed portion of any Note being redeemed in part.

 

SECTION 2.07.      Book-Entry Provisions for Global Notes.  The U.S. Global Notes and Offshore Global
Notes initially shall (i) be registered in the name of the Depositary for
such Global Notes or the nominee of such Depositary, (ii) be delivered to
the Trustee as custodian for such Depositary and (iii) bear legends as set
forth in Section 2.02.

 

(a)           Members of, or participants in, the
Depositary (“Agent Members”) shall have no rights under this Indenture
with respect to any Global Note held on their behalf by the Depositary, or the
Trustee as its custodian, or under such Global Note, and the Depositary may be
treated by the Company, the Trustee and any agent of the Company or the Trustee
as the absolute owner of such Global Note for all purposes whatsoever.
Notwithstanding the foregoing, nothing herein shall prevent the Company, the
Trustee or any agent of the Company or the Trustee, from giving effect to any
written certification, proxy or other authorization furnished by the Depositary
or impair, as between the Depositary and its Agent Members, the operation of
customary practices governing the exercise of the rights of a holder of any
Note.

 

(b)           Transfers of a Global Note shall be
limited to transfers of such Global Note in whole, but not in part, to the
Depositary, its successors or their respective 

 

18

 

nominees. Interests of beneficial owners in
Global Notes may be transferred in accordance with the rules and
procedures of the Depositary and the provisions of Section 2.08.  In addition, U.S. Physical Notes and Offshore
Physical Notes shall be transferred to all beneficial owners in exchange for
their beneficial interests in the U.S. Global Notes or the Offshore Global
Notes, as the case may be, if (i) the Depositary notifies the Company that
it is unwilling or unable to continue as Depositary for the U.S. Global Notes or
the Offshore Global Notes, as the case may be, and a successor depositary is
not appointed by the Company within 90 days of such notice, (ii) an Event
of Default has occurred and is continuing and the Registrar has received a
written request from the Depositary or (iii) in accordance with the rules and
procedures of the Depositary and the provisions of Section 2.08.

 

(c)           Any beneficial interest in one of the
Global Notes that is transferred to a person who takes delivery in the form of
an interest in another Global Note will, upon transfer, cease to be an interest
in another Global Note and become an interest in such other Global Note and,
accordingly, will thereafter be subject to all transfer restrictions, if any,
and other procedures applicable to beneficial interests in such other Global
Note for as long as it remains such an interest.

 

(d)           In connection with any transfer of a
portion of the beneficial interests in a Global Note to beneficial owners
pursuant to paragraph (b) of this Section 2.07, the Registrar shall
reflect on its books and records the date and a decrease in the principal
amount of the Global Note in an amount equal to the principal amount of the
beneficial interest in the Global Note to be transferred, and the Company shall
execute, and the Trustee shall authenticate and deliver, one or more U.S.
Physical Notes or Offshore Physical Notes, as the case may be, of like tenor
and amount.

 

(e)           In connection with the transfer of
the U.S. Global Notes or the Offshore Global Notes, in whole, to beneficial
owners pursuant to paragraph (b) of this Section 2.07, the U.S.
Global Notes or Offshore Global Notes, as the case may be, shall be deemed to
be surrendered to the Trustee for cancellation, and the Company shall execute,
and the Trustee shall authenticate and deliver, to each beneficial owner
identified by the Depositary in exchange for its beneficial interest in the
U.S. Global Notes or Offshore Global Notes, as the case may be, an equal
aggregate principal amount of U.S. Physical Notes or Offshore Physical Notes,
as the case may be, of authorized denominations.

 

(f)            Any U.S. Physical Note delivered in
exchange for an interest in the U.S. Global Notes pursuant to paragraph (b), (d) or
(e) of this Section 2.07 shall, except as otherwise provided by
paragraph (f) of Section 2.08, bear the legend regarding transfer
restrictions applicable to the U.S. Physical Note set forth in Section 2.02.

 

(g)           Any Offshore Physical Note delivered
in exchange for an interest in the Offshore Global Notes pursuant to paragraph
(b), (d) or (e) of this Section 2.07 shall, except as otherwise
provided by paragraph (f) of Section 2.08, bear the legend regarding
transfer restrictions applicable to the Offshore Physical Note set forth in Section 2.02.

 

19

 

(h)           The registered holder of a Global
Note may grant proxies and otherwise authorize any person, including Agent
Members and persons that may hold interests through Agent Members, to take any
action which a Holder is entitled to take under this Indenture or the Notes.

 

SECTION 2.08.      Special Transfer Provisions.  Unless and until (i) a Note is exchanged
for an Exchange Note or sold in connection with an effective Shelf Registration
Statement pursuant to the Registration Rights Agreement or (ii) the
Private Placement Legend is no longer required pursuant to Section 2.02,
the following provisions shall apply:

 

(a)           Transfers to Non-QIB Institutional
Accredited Investors.  The following
provisions shall apply with respect to the registration of any proposed
transfer of a Note to any Institutional Accredited Investor which is not a QIB
(excluding Non-U.S. Persons):

 

(i)            The
Registrar shall register the transfer of any Note, whether or not such Note
bears the Private Placement Legend, if the proposed transferee has delivered to
the Registrar (A) a certificate substantially in the form of Exhibit C
hereto and (B) if the aggregate principal amount of the Notes being
transferred is less than $100,000, an opinion of counsel acceptable to the
Company that such transfer is in compliance with the Securities Act.

 

(ii)           If
the proposed transferor is an Agent Member holding a beneficial interest in the
U.S. Global Notes, upon receipt by the Registrar of (x) the documents, if
any, required by paragraph (i) above and (y) instructions given in
accordance with the Depositary’s and the Registrar’s procedures, the Registrar
shall reflect on its books and records the date and a decrease in the principal
amount of the U.S. Global Notes in an amount equal to the principal amount of
the beneficial interest in the U.S. Global Notes to be transferred, and the
Company shall execute, and the Trustee shall authenticate and deliver, one or
more U.S. Physical Notes of like tenor and amount.

 

(b)           Transfers to QIBs.  The following provisions shall apply with
respect to the registration of any proposed transfer of U.S. Physical Notes or
an interest in U.S. Global Notes to a QIB (excluding Non-U.S. Persons):

 

(i)            If
the Note to be transferred consists of (x) either Offshore Physical Notes
prior to the removal of the Private Placement Legend or U.S. Physical Notes,
the Registrar shall register the transfer if such transfer is being made by a
proposed transferor who has checked the box provided for on the form of Note
stating, or has otherwise advised the Company and the Registrar in writing,
that the sale has been made in compliance with the provisions of Rule 144A
to a transferee who has signed the certification provided for on the form of
Note stating, or has otherwise advised the Company and the Registrar in
writing, that it is purchasing the Note for its own account or an account with
respect to which it exercises sole investment discretion and that it and any
such account is a QIB within the meaning of Rule 144A and is aware that
the sale to it is being 

 

20

 

made in reliance on Rule 144A and acknowledges that it has
received such information regarding the Company as it has requested pursuant to
Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon its foregoing representations in
order to claim the exemption from registration provided by Rule 144A or (y) an
interest in the U.S. Global Notes, the transfer of such interest may be
effected only through the book entry system maintained by the Depositary.

 

(ii)           If
the proposed transferee is an Agent Member, and the Note to be transferred
consists of U.S. Physical Notes, upon receipt by the Registrar of the documents
referred to in paragraph (i) above and instructions given in accordance
with the Depositary’s and the Registrar’s procedures, the Registrar shall
reflect on its books and records the date and an increase in the principal
amount of U.S. Global Notes in an amount equal to the principal amount of the
U.S. Physical Notes to be transferred, and the Trustee shall cancel the U.S.
Physical Notes so transferred.

 

(c)           Transfers of Interests in the
Offshore Global Notes or Offshore Physical Notes.  The following provisions shall apply with
respect to any transfer of interests in the Offshore Global Notes or Offshore
Physical Notes:

 

(i)            Prior
to the removal of the Private Placement Legend from an Offshore Global Note or
Offshore Physical Note pursuant to Section 2.02, the Registrar shall
refuse to register such transfer unless such transfer complies with Section 2.08(b) or
Section 2.08(d), as the case may be; and

 

(ii)           After
such removal, the Registrar shall register the transfer of any such Note
without requiring additional certification.

 

(d)           Transfers to Non-U.S. Persons at
Any Time.  The following provisions
shall apply with respect to any transfer of a Note to a Non-U.S. Person:

 

(i)            The
Registrar shall register any proposed transfer to any Non-U.S. Person if the
Note to be transferred is a U.S. Physical Note or an interest in U.S. Global
Notes, upon receipt of a certificate substantially in the form of Exhibit D
hereto from the proposed transferor.

 

(ii)           (a) If
the proposed transferor is an Agent Member holding a beneficial interest in the
U.S. Global Notes, upon receipt by the Registrar of (x) the documents, if
any, required by paragraph (i) and (y) instructions in accordance
with the Depositary’s and the Registrar’s procedures, the Registrar shall
reflect on its books and records the date and a decrease in the principal
amount  of the U.S. Global Notes in an
amount equal to the principal amount of the beneficial interest in the U.S.
Global Notes to be transferred, and (b) if the proposed transferee is an
Agent Member, upon receipt by the Registrar of instructions given in accordance
with the Depositary’s and the Registrar’s procedures, the Registrar shall
reflect on its books and records the date and an increase in the principal
amount of the 

 

21

 

Offshore Global Notes in an amount equal to the principal amount of the
U.S. Physical Notes or the U.S. Global Notes, as the case may be, to be
transferred, and the Trustee shall cancel the Physical Note, if any, so
transferred or decrease the amount of the U.S. Global Notes.

 

(e)           Private Placement Legend.  Upon the transfer, exchange or replacement of
Unrestricted Notes, the Registrar shall deliver Unrestricted Notes that do not
bear the Private Placement Legend. Upon the transfer, exchange or replacement
of Restricted Notes or beneficial interests in Restricted Global Notes, the
Registrar shall deliver only Restricted Notes or credit the account of the
applicable transferee with a beneficial interest in a Restricted Global Note,
as the case may be, unless the Private Placement Legend is no longer required
by Section 2.02 and either (i) there is delivered to the Registrar an
Opinion of Counsel reasonably satisfactory to the Company and the Trustee to
the effect that neither such legend nor the related restrictions on transfer
are required or advisable in order to ensure that subsequent transfers of the
Notes are effected in compliance with the Securities Act or (ii) the
Trustee has received from the Company an Officers’ Certificate and an Opinion
of Counsel, in form and substance reasonably satisfactory to the Trustee, to
the effect that neither such legend nor the related restrictions on transfer
are required or advisable in order to ensure that subsequent transfers on the
Notes are effected in compliance with the Securities Act, including without
limitation, in connection with a mandatory conversion consummated in accordance
with Section 2.08(g).  In the case
of Global Notes, upon receipt of such Officers’ Certificate and Opinion of
Counsel as provided above, the Trustee shall direct the Registrar to exchange
the Restricted Global Notes for Unrestricted Global Notes with such exchange to
occur in accordance with Section 2.08(g).

 

(f)            General.  By its acceptance of any Note bearing the
Private Placement Legend, each Holder of such a Note acknowledges receipt of a
Restricted Note with restrictions on the transfer of such Note set forth in
this Indenture and in the Private Placement Legend and agrees that it will
transfer such Note only as provided in this Indenture until such time as the
Private Placement Legend is no longer required pursuant to Section 2.02
and such Private Placement legend is removed pursuant to Section 2.02. The
Registrar shall not register a transfer of any Note unless such transfer
complies with the restrictions on transfer of such Note set forth in this
Indenture. In connection with any transfer of Notes, each Holder agrees by its
acceptance of the Notes to furnish the Registrar or the Company such
certifications, legal opinions or other information as either of them may
reasonably require to confirm that such transfer is being made pursuant to an
exemption from, or a transaction not subject to, the registration requirements
of the Securities Act until such time as the Private Placement Legend is no
longer required pursuant to Section 2.02 and such Private Placement legend
is removed pursuant to Section 2.02; provided
that the Registrar shall not be required to determine (but may rely on a
determination made by the Company with respect to) the sufficiency of any such
certifications, legal opinions or other information.

 

(g)           Mandatory
Exchange from Restricted Global Note into an Unrestricted Global Note.  Beneficial interests in the Restricted Global
Note will be automatically exchanged into beneficial interests in the
Unrestricted Global Note on April 4, 2009 if (i) 

 

22

 

such exchange or transfer complies with the
requirements of Section 2.06 above and (ii) the provisions of the
second sentence of 2.08(e) would not prohibit the Registrar from
delivering Notes that do not bear a Private Placement Legend.  Upon satisfaction of the conditions set forth
in the immediately preceding sentence, the Company shall (i) provide at least
10 days prior written notice to the Trustee instructing the Trustee to direct
the Depository to transfer all of the outstanding beneficial interests in a
particular Restricted Global Note to the Unrestricted Global Note, which the
Company shall have previously otherwise made eligible for transfer within DTC,
and (ii) provide prior written notice to all Holders of such transfer,
which notice must include the date of such transfer to occur, the CUSIP number
of the relevant Restricted Global Note and the CUSIP number of the Unrestricted
Global Note into which such Holders’ beneficial interests will be
transferred.  As a condition to any such
transfer pursuant to this Section 2.08(g), the  Company shall provide, and the Trustee shall
be entitled to rely upon, an Officers’ Certificate and an Opinion of Counsel,
in the form and substance reasonably satisfactory to the Trustee to the effect
that the Private Placement Legend and the related restrictions on transfer are
not required or advisable in order to maintain compliance with the provisions
of the Securities Act.  Upon such
transfer of beneficial interests pursuant to this Section 2.08(g), the
Registrar shall endorse the schedule identified as Schedule A to the relevant
Global Notes to reflect the relevant increase or decrease in the principal
amount of such Global Note resulting from the applicable transfer.  Following any such transfer pursuant to this Section 2.08(g),
the Relevant Global Note shall be cancelled.

 

The Registrar shall retain copies of all letters,
notices and other written communications received pursuant to Section 2.07
or this Section 2.08. The Company, at its sole cost and expense, shall
have the right to inspect and make copies of all such letters, notices or other
written communications at any reasonable time upon the giving of reasonable
written notice to the Registrar.

 

SECTION 2.09.      Replacement Notes. 
If a mutilated Note is surrendered to the Trustee or if the Holder
claims that the Note has been lost, destroyed or wrongfully taken, then, in the
absence of written notice to the Company or the Trustee that such Note has been
acquired by a protected purchaser, the Company shall issue and the Trustee
shall authenticate a replacement Note of like tenor and principal amount and
bearing a number not contemporaneously outstanding; provided that the requirements of this Section 2.09 are
met.  If required by the Trustee or the
Company, an indemnity bond must be furnished that is sufficient in the judgment
of both the Trustee and the Company to protect the Company, the Trustee or any
Agent from any loss that any of them may suffer if a Note is replaced.  The Company may charge such Holder for its
expenses and the expenses of the Trustee in replacing a Note.  In case any such mutilated, lost, destroyed
or wrongfully taken Note has become or is about to become due and payable, the
Company in its discretion may pay such Note instead of issuing a new Note in
replacement thereof.

 

Every replacement Note is an additional obligation of
the Company and each Subsidiary Guarantor and shall be entitled to the benefits
of this Indenture.

 

23

 

SECTION 2.10.            Outstanding Notes.  Notes outstanding at any time are all Notes
that have been authenticated by the Trustee except for those cancelled by it,
those delivered to it for cancellation and those described in this Section 2.10
as not outstanding.

 

If a Note is replaced pursuant to Section 2.09,
it ceases to be outstanding unless and until the Trustee and the Company
receive proof satisfactory to them that the replaced Note is held by a
protected purchaser.

 

If the Paying Agent (other than the Company or an
Affiliate of the Company) holds on the maturity date money sufficient to pay
Notes payable on that date, then on and after that date such Notes cease to be
outstanding and interest on them shall cease to accrue.

 

A Note does not cease to be outstanding because the
Company or one of its Affiliates holds such Note, provided, however, that in determining whether the Holders
of the requisite principal amount of the outstanding Notes have given any
request, demand, authorization, direction, notice, consent or waiver hereunder,
Notes owned by the Company or any other obligor upon the Notes or any Affiliate
of the Company or of such other obligor shall be disregarded and deemed not to
be outstanding, except that, in determining whether the Trustee shall be
protected in relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only Notes which the Trustee has actual knowledge to
be so owned shall be so disregarded. 
Notes so owned which have been pledged in good faith may be regarded as
outstanding if the pledgee establishes to the satisfaction of the Trustee the
pledgee’s right so to act with respect to such Notes and that the pledgee is
not the Company or any other obligor upon the Notes or any Affiliate of the
Company or of such other obligor.

 

SECTION 2.11.            Temporary Notes.  Until definitive Notes are ready for
delivery, the Company may prepare and execute and the Trustee shall
authenticate temporary Notes.  Temporary
Notes shall be substantially in the form of definitive Notes but may have
insertions, substitutions, omissions and other variations determined to be
appropriate by the Officers executing the temporary Notes, as evidenced by
their execution of such temporary Notes. 
If temporary Notes are issued, the Company will cause definitive Notes
to be prepared without unreasonable delay. 
After the preparation of definitive Notes, the temporary Notes shall be
exchangeable for definitive Notes upon surrender of the temporary Notes at the
office or agency of the Company designated for such purpose pursuant to Section 4.02,
without charge to the Holder.  Upon
surrender for cancellation of any one or more temporary Notes, the Company
shall execute and the Trustee shall authenticate and deliver in exchange
therefor a like principal amount of definitive Notes of authorized
denominations.  Until so exchanged, the
temporary Notes shall be entitled to the same benefits under this Indenture as
definitive Notes.

 

SECTION 2.12.            Cancellation.  The Company, at any time, may deliver to the
Trustee for cancellation any Notes previously authenticated and delivered
hereunder which the Company may have acquired in any manner whatsoever, and may
deliver to the Trustee for cancellation any Notes previously authenticated
hereunder.  The Registrar and the Paying
Agent shall forward to the Trustee any Notes surrendered to them for transfer,
exchange or payment.  The Trustee shall
cancel all Notes surrendered for transfer, exchange, payment or cancellation
and shall destroy them in accordance with its normal procedure.

 

24

 

SECTION 2.13.            CUSIP Numbers.  The Company in issuing the Notes may use “CUSIP,”
“CINS” or “ISIN” numbers (if then generally in use), and the Company and the
Trustee shall use CUSIP, CINS or ISIN numbers, as the case may be, in notices
of redemption or exchange as a convenience to Holders; provided that any such notice shall state
that no representation is made as to the correctness of such numbers either as
printed on the Notes or as contained in any notice of redemption or exchange
and that reliance may be placed only on the other identification numbers
printed on the Notes.  The Company shall
promptly notify the Trustee of any change in “CUSIP,” “CINS” or “ISIN” numbers
for the Notes.

 

SECTION 2.14.            Defaulted Interest.  If the Company defaults in a payment of
interest on the Notes, it shall pay, or shall deposit with the Paying Agent
money in immediately available funds sufficient to pay, the defaulted interest,
plus (to the extent lawful) any interest payable on the defaulted interest, to
the Persons who are Holders on a subsequent special record date.  A special record date, as used in this Section 2.14
with respect to the payment of any defaulted interest, shall mean the 15th day next preceding
the date fixed by the Company for the payment of defaulted interest, whether or
not such day is a Business Day.  At least
15 days before the subsequent special record date, the Company shall mail to each
Holder and to the Trustee a notice that states the subsequent special record
date, the payment date and the amount of defaulted interest to be paid.

 

SECTION 2.15.            Issuance of Additional Notes.  The Company may, subject to Article Four
of this Indenture and applicable law, issue additional Notes under this
Indenture.  The Notes issued on the
Closing Date and any additional Notes subsequently issued shall be treated as a
single class for all purposes under this Indenture.

 

ARTICLE
THREE

REDEMPTION

 

SECTION 3.01.            Right of Redemption.  (a)  The Notes are redeemable, at the
Company’s option, in whole or in part, at any time or from time to time, on or
after April 15, 2012 and prior to maturity, upon not less than 30 nor more
than 60 days’ prior written notice mailed by first-class mail to each Holder’s
last address, as it appears in the Security Register, at the following
Redemption Prices (expressed in percentages of principal amount), plus accrued
and unpaid interest to the Redemption Date (subject to the right of Holders of
record on the relevant Regular Record Date that is prior to the Redemption Date
to receive interest due on an Interest Payment Date), if redeemed during the
12-month period commencing on April 15 of the years set forth below:

 

	
   

  	
   

  	
  Redemption

  	
   

  
	
  Year

  	
   

  	
  Price

  	
   

  
	
  2012

  	
   

  	
  103.875

  	
  %

  
	
  2013

  	
   

  	
  101.938

  	
  %

  
	
  2014 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(b)           In
addition, at any time prior to April 15, 2011, the Company may redeem up
to 35% of the aggregate principal amount of the Notes with the Net Cash
Proceeds of one or more sales of common stock of the Company at any time as a
whole or from time to time in part, 

 

25

 

at a Redemption Price
(expressed as a percentage of principal amount) of 107.750%, plus accrued and
unpaid interest to the Redemption Date (subject to the rights of Holders of
record on the relevant Regular Record Date that is prior to the Redemption Date
to receive interest due on an Interest Payment Date); provided that (i) at least 65% of the
aggregate principal amount of Notes originally issued on the Closing Date
remains outstanding after each such redemption and (ii) notice of any such
redemption is mailed within 60 days after each such sale of common stock.

 

SECTION 3.02.            Notices to Trustee.   If the Company elects to redeem Notes
pursuant to Section 3.01, it shall notify the Trustee in writing of the
Redemption Date and the principal amount of Notes to be redeemed and the clause
of this Indenture pursuant to which redemption shall occur.

 

The Company shall give each notice provided for in this
Section 3.02 in an Officers’ Certificate at least 45 days before the
Redemption Date (unless a shorter period shall be satisfactory to the Trustee).

 

SECTION 3.03.            Selection of Notes to Be Redeemed.  If less than all of the Notes are to be
redeemed at any time, the Trustee shall select the Notes to be redeemed in
compliance with the requirements, as certified to it by the Company, of the
principal national securities exchange, if any, on which the Notes are listed
or, if the Notes are not listed on a national securities exchange or automated
quotation system, by lot or by such other method as the Trustee in its sole
discretion shall deem fair and appropriate; provided
that no Note of $2,000 in principal amount or less shall be redeemed in part.

 

The Trustee shall make the selection from the Notes
outstanding and not previously called for redemption.  Notes in denominations of $2,000 in principal
amount may only be redeemed in whole. 
The Trustee may select for redemption portions (equal to $2,000 in
principal amount or multiples of $1,000 in excess thereof) of Notes that have
denominations larger than $2,000 in principal amount.  Provisions of this Indenture that apply to
Notes called for redemption also apply to portions of Notes called for
redemption.  The Trustee shall notify the
Company and the Registrar promptly in writing of the Notes or portions of Notes
to be called for redemption.

 

SECTION 3.04.            Notice of Redemption.  With respect to any redemption of Notes
pursuant to Section 3.01, at least 30 days but not more than 60 days
before a Redemption Date, the Company shall mail a notice of redemption by
first-class mail to each Holder whose Notes are to be redeemed.

 

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

 

(i)            the Redemption Date;

 

(ii)           the Redemption
Price;

 

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

 

26

 

(iv)          that Notes called
for redemption must be surrendered to the Paying Agent in order to collect the
Redemption Price;

 

(v)           that, unless the
Company defaults in making the redemption payment, interest on Notes called for
redemption ceases to accrue on and after the Redemption Date and the only
remaining right of the Holders is to receive payment of the Redemption Price
plus accrued interest to the Redemption Date upon surrender of the Notes to the
Paying Agent;

 

(vi)          that, if any Note is
being redeemed in part, the portion of the principal amount (equal to $2,000 in
principal amount or any integral multiple thereof) of such Note to be redeemed
and that, on and after the Redemption Date, upon surrender of such Note, a new
Note or Notes in principal amount equal to the unredeemed portion thereof will
be reissued; and

 

(vii)         that, if any Note
contains a CUSIP, CINS or ISIN number as provided in Section 2.13, no
representation is being made as to the correctness of the CUSIP, CINS or ISIN
number either as printed on the Notes or as contained in the notice of
redemption and that reliance may be placed only on the other identification
numbers printed on the Notes.

 

At the Company’s request (which request may be revoked
by the Company at any time prior to the time at which the Trustee shall have
given such notice to the Holders), made in writing to the Trustee at least
45 days (or such shorter period as shall be satisfactory to the Trustee)
before a Redemption Date, the Trustee shall give the notice of redemption in
the name and at the expense of the Company. 
If, however, the Company gives such notice to the Holders, the Company
shall concurrently deliver to the Trustee an Officers’ Certificate stating that
such notice has been given.

 

SECTION 3.05.            Effect of Notice of Redemption.  Once notice of redemption is mailed, Notes
called for redemption become due and payable on the Redemption Date and at the
Redemption Price.  Upon surrender of any
Notes to the Paying Agent, such Notes shall be paid at the Redemption Price,
plus accrued interest, if any, to the Redemption Date.

 

Notice of redemption shall be deemed to be given when
mailed, whether or not the Holder receives the notice.  In any event, failure to give such notice, or
any defect therein, shall not affect the validity of the proceedings for the
redemption of Notes held by Holders to whom such notice was properly given.

 

SECTION 3.06.            Deposit of Redemption Price.  On or prior to 11:00 a.m., New York City
time, on any Redemption Date, the Company shall deposit with the Paying Agent
(or, if the Company is acting as its own Paying Agent, shall segregate and hold
in trust as provided in Section 2.05) money sufficient to pay the
Redemption Price of and accrued interest on all Notes to be redeemed on that
date other than Notes or portions thereof called for redemption on that date
that have been delivered by the Company to the Trustee for cancellation.

 

SECTION 3.07.            Payment of Notes Called for
Redemption.  If notice of redemption
has been given in the manner provided above, the Notes or portion of Notes
specified 

 

27

 

in
such notice to be redeemed shall become due and payable on the Redemption Date
at the Redemption Price stated therein, together with accrued interest to such
Redemption Date, and on and after such date (unless the Company shall default
in the payment of such Notes at the Redemption Price and accrued interest to
the Redemption Date, in which case the principal, until paid, shall bear
interest from the Redemption Date at the rate prescribed in the Notes), such
Notes shall cease to accrue interest. 
Upon surrender of any Note for redemption in accordance with a notice of
redemption, such Note shall be paid and redeemed by the Company at the
Redemption Price, together with accrued interest, if any, to the Redemption
Date; provided that installments
of interest whose Stated Maturity is on or prior to the Redemption Date shall
be payable to the Holders registered as such at the close of business on the
relevant Regular Record Date.

 

SECTION 3.08.            Notes Redeemed in Part.  Upon surrender of any Note that is redeemed
in part, the Company shall execute and the Trustee shall authenticate and
deliver to the Holder without service charge, a new Note equal in principal
amount to the unredeemed portion of such surrendered Note.

 

ARTICLE FOUR

COVENANTS

 

SECTION 4.01.            Payment of Notes.  The Company shall pay the principal of,
premium, if any, and interest on the Notes on the dates and in the manner
provided in the Notes and this Indenture. 
An installment of principal, premium, if any, or interest shall be considered
paid on the date due if the Trustee or Paying Agent (other than the Company, a
Subsidiary of the Company, or any Affiliate of any of them) holds on that date
money designated for and sufficient to pay the installment.  If the Company or any Subsidiary of the
Company or any Affiliate of any of them acts as Paying Agent, an installment of
principal, premium, if any, or interest shall be considered paid on the due
date if the entity acting as Paying Agent complies with the last sentence of Section 2.05.  As provided in Section 6.09, upon any
bankruptcy or reorganization procedure relative to the Company, the Trustee
shall serve as the Paying Agent, if any, for the Notes.

 

The Company shall pay interest on overdue principal
and premium, if any, and interest on overdue installments of interest, to the
extent lawful, at the rate per annum specified in the Notes.

 

SECTION 4.02.            Maintenance of Office or Agency.  The Company shall maintain an office or
agency where Notes may be surrendered for registration of transfer or exchange
or for presentation for payment and where notices and demands to or upon the
Company in respect of the Notes and this Indenture may be served.  The Company will give prompt written notice
to the Trustee of the location, and any change in the location, of such office
or agency.  If at any time the Company
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the address of the Trustee set
forth in Section 11.02.

 

28

 

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

 

The Company hereby initially designates the Paying
Agent Office of the Trustee as such office or agency of the Company where Notes
may be surrendered for registration of transfer or exchange or for presentation
for payment.

 

The Company hereby initially designates the Corporate
Trust Office of the Trustee as such office where notices and demands to or upon
the Company in respect of the Notes and this Indenture may be served.

 

SECTION 4.03.            Limitation on Liens.  The
Company will not, and will not permit any of its Significant Subsidiaries to,
create, incur, issue, assume or guarantee any Indebtedness secured by a
Mortgage upon any of its properties or assets, whether owned on the Closing
Date or thereafter acquired, without effectively providing concurrently that
the Notes are secured equally and ratably with or, at the Company’s option,
prior to such Indebtedness so long as such Indebtedness shall be so secured.

 

The foregoing restriction shall not apply to, and
there shall be excluded from Indebtedness in any computation under such
restriction, Indebtedness secured by:

 

(i)            Mortgages on any
property or assets existing at the time of the acquisition thereof by the
Company or any Significant Subsidiary;

 

(ii)           Mortgages on
property or assets of a Person existing at the time such Person is merged into
or consolidated with the Company or any of its Significant Subsidiaries or at
the time of a sale, lease or other disposition of the properties and assets of
such Person (or a division thereof) as an entirety or substantially as an
entirety to the Company or any of its Significant Subsidiaries; provided that any such Mortgage does not extend to any
property or assets owned by the Company or any of its Significant Subsidiaries
immediately prior to such merger, consolidation, sale, lease or disposition;

 

(iii)          Mortgages on
property or assets of a Person existing at the time such Person becomes a
Significant Subsidiary of the Company;

 

(iv)          Mortgages in favor
of the Company or any of its Restricted Subsidiaries;

 

(v)           Mortgages on
property or assets (including shares of Capital Stock of any Subsidiary formed
to acquire, construct, develop or improve such property) to secure all or part
of the cost of acquisition, construction, development or improvement of such
property, or to secure Indebtedness incurred to provide funds for any such
purpose; provided that the commitment of the
creditor to extend the credit secured by any such Mortgage shall have been
obtained no later than 360 days after the later of (a) the 

 

29

 

completion
of the acquisition, construction, development or improvement of such property
or assets or (b) the placing in operation of such property or assets;

 

(vi)          Mortgages to secure
obligations under Credit Facilities in an aggregate principal amount not to
exceed the greater of (A) $1,000 million and (B) the sum of the
amounts equal to (x) 70% of the consolidated book value of the inventory
of the Company and its Subsidiaries and (y) 90% of the consolidated book
value of the accounts receivable of the Company and its Subsidiaries, in each
case as of the Company’s most recently ended fiscal quarter for which financial
statements are available;

 

(vii)         Mortgages in favor
of the United States of America or any State thereof, or any department, agency
or instrumentality or political subdivision thereof, to secure partial,
progress, advance or other payments; and

 

(viii)        Mortgages existing
on the date of this Indenture or any extension, renewal, replacement or
refunding of any Indebtedness secured by a Mortgage existing on the date of
this Indenture or referred to in clauses (i), (ii), (iii) or (v) of
this Section 4.03; provided that
any such extension, renewal, replacement or refunding of such Indebtedness
shall be created within 360 days of repaying the Indebtedness secured by the
Mortgage referred to in clauses (i), (ii), (iii) and (v) of this Section 4.03,
and the principal amount of the Indebtedness secured thereby and not otherwise
authorized by clauses (i), (ii), (iii) or (v) of this Section 4.03
shall not exceed the principal amount of Indebtedness, plus any premium or fee
payable in connection with any such extension, renewal, replacement or
refunding, so secured at the time of such extension, renewal, replacement or
refunding.

 

Notwithstanding the restrictions described above, the
Company and any of its Significant Subsidiaries may create, incur, issue, assume
or guarantee Indebtedness secured by Mortgages without equally and ratably
securing the Notes, if at the time of such creation, incurrence, issuance,
assumption or guarantee, after giving effect thereto and to the retirement of
any Indebtedness which is concurrently being retired, the aggregate amount of
all such Indebtedness secured by Mortgages which would otherwise be subject to
restrictions (other than any Indebtedness secured by Mortgages permitted as
described in clauses (i) through (viii) of this Section 4.03)
plus all Attributable Debt of the Company and its Significant Subsidiaries in
respect of Sale and Leaseback Transactions (with the exception of such
transactions which are permitted under clauses (i) through (iv) of Section 4.04)
does not exceed 10% of Consolidated Tangible Assets.

 

SECTION 4.04.            Limitation on Sale and Leaseback
Transactions.  The Company will not,
and will not permit any of its Significant Subsidiaries to, enter into any Sale
and Leaseback Transaction unless:

 

(i)            the
Sale and Leaseback Transaction is solely with the Company or any of its
Restricted Subsidiaries;

 

(ii)           the
lease is for a period not in excess of 24 months, including renewals;

 

(iii)          the
Company or such Significant Subsidiary would (at the time of entering into such
arrangement) be entitled under clauses (i) through (viii) of Section 4.03,

 

30

 

without equally and ratably securing the Notes then
outstanding under this Indenture, to create, incur, issue, assume or guarantee
Indebtedness secured by a Mortgage on such property or assets in the amount of
the Attributable Debt arising from such Sale and Leaseback Transaction;

 

(iv)          the
Company or such Significant Subsidiary within 360 days after the sale of
property or assets in connection with such Sale and Leaseback Transaction is
completed, applies an amount equal to the greater of (A) the net proceeds
of the sale of such property or assets or (B) the fair market value of
such property or assets to (i) the retirement of the Notes, other Funded
Debt of the Company ranking on a parity with the Notes or Funded Debt of a
Restricted Subsidiary or (ii) the purchase of property or assets; or

 

(v)           the
Attributable Debt of the Company and its Significant Subsidiary in respect of
such Sale and Leaseback Transaction and all other Sale and Leaseback
Transactions entered into after the Closing Date (other than any such Sale and
Leaseback Transaction as would be permitted as described in clauses (i) through
(iv) of this Section 4.09), plus the aggregate principal amount of
Indebtedness secured by Mortgages then outstanding (not including any such
Indebtedness secured by Mortgages described in clauses (i) through (viii) of
Section 4.03) which do not equally and ratably secure the Notes (or secure
Notes on a basis that is prior to other Indebtedness secured thereby), would
not exceed 10% of Consolidated Tangible Assets.

 

SECTION 4.05.            Repurchase of Notes upon a Change
of Control.  The Company must
commence, within 30 days of the occurrence of a Change of Control, and
consummate an Offer to Purchase for all Notes then outstanding, at a purchase
price equal to 101% of their principal amount, plus accrued interest (if any)
to the Payment Date.  The Company will
not be required to make an Offer to Purchase upon the occurrence of a Change of
Control pursuant to this Section 4.05, if a third party makes an offer to
purchase the Notes in the manner, at the times and price and otherwise in
compliance with this Indenture applicable to an Offer to Purchase and purchases
all Notes validly tendered and not withdrawn in such Offer to Purchase.

 

SECTION 4.06.            Existence.  Subject to Articles Four and Five of this
Indenture, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect its existence and the existence of
each of its Restricted Subsidiaries in accordance with the respective
organizational documents of the Company and each Restricted Subsidiary and the
rights (whether pursuant to charter, certificate of formation, article of
incorporation, partnership certificate, agreement, statute or otherwise),
licenses and franchises of the Company and each Restricted Subsidiary; provided that the Company shall not be
required to preserve any such right, license or franchise, or the existence of
any Restricted Subsidiary, if the maintenance or preservation thereof is no
longer desirable in the conduct of the business of the Company and its
Restricted Subsidiaries taken as a whole.

 

SECTION 4.07.            Payment of Taxes and Other Claims.  The Company shall pay or discharge and shall
cause each of its Subsidiaries to pay or discharge, or cause to be paid or
discharged, before the same shall become delinquent (i) all material
taxes, assessments and 

 

31

 

governmental
charges levied or imposed upon (a) the Company or any such Subsidiary, (b) the
income or profits of any such Subsidiary which is a corporation or (c) the
property of the Company or any such Subsidiary and (ii) all material
lawful claims for labor, materials and supplies that, if unpaid, might by law
become a lien upon the property of the Company or any such Subsidiary; provided that the Company shall not be
required to pay or discharge, or cause to be paid or discharged, any such tax,
assessment, charge or claim the amount, applicability or validity of which is
being contested in good faith by appropriate proceedings and for which adequate
reserves have been established.

 

SECTION 4.08.            Maintenance of Properties and Insurance.  The Company shall cause all properties used
or useful in the conduct of its business or the business of any of its
Restricted Subsidiaries to be maintained and kept in good condition, repair and
working order and supplied with all necessary equipment and will cause to be
made all necessary repairs, renewals, replacements, betterments and
improvements thereof, all as in the judgment of the Company may be necessary so
that the business carried on in connection therewith may be properly and advantageously
conducted at all times; provided
that nothing in this Section 4.08 shall prevent the Company or any
Restricted Subsidiary from discontinuing the use, operation or maintenance of
any of such properties or disposing of any of them, if such discontinuance or
disposal is, in the judgment of the Company, desirable in the conduct of the
business of the Company or such Restricted Subsidiary.

 

The Company will provide or cause to be provided, for
itself and its Restricted Subsidiaries, insurance (including appropriate
self-insurance) against loss or damage of the kinds customarily insured against
by corporations similarly situated and owning like properties, including, but
not limited to, products liability insurance and public liability insurance,
with reputable insurers or with the government of the United States of America,
or an agency or instrumentality thereof, in such amounts, with such deductibles
and by such methods as shall be customary for corporations similarly situated
in the industry in which the Company or any such Restricted Subsidiary, as the
case may be, is then conducting business.

 

SECTION 4.09.            Notice of Defaults.  In the event that any Officer becomes aware
of any Default or Event of Default, the Company shall promptly deliver to the
Trustee an Officers’ Certificate specifying such Default or Event of Default,
its status and what action the Company is taking or proposes to take with
respect thereto.

 

SECTION 4.10.            Compliance Certificates.  The Company shall deliver to the Trustee,
within 90 days after the end of the last fiscal quarter of each year, an
Officers’ Certificate stating whether or not the signers know of any Default or
Event of Default that occurred during such fiscal year.  Such certificate shall contain a
certification from the principal executive officer, principal financial officer
or principal accounting officer of the Company that a review has been conducted
of the activities of the Company and its Restricted Subsidiaries and the
Company’s and its Restricted Subsidiaries’ performance under this Indenture and
that the Company has complied with all conditions and covenants under this
Indenture.  For purposes of this Section 4.10,
such compliance shall be determined without regard to any period of grace or
requirement of notice provided under this Indenture.  If any of the officers of the Company signing
such certificate has knowledge of such a Default or Event of Default, the
certificate shall describe any such Default or Event of Default and its
status.  The first certificate to be
delivered 

 

32

 

pursuant
to this Section 4.10 shall be for the fiscal year beginning after the
execution of this Indenture.

 

SECTION 4.11.            Commission Reports and Reports to
Holders.  Whether or not the Company
is required to file reports with the Commission, the Company shall file with
the Commission all such reports and other information as it would be required
to file with the Commission by Section 13(a) or 15(d) under the
Securities Exchange Act of 1934 if it were subject thereto within the time
periods specified by the Commission’s rules and regulations.  The Company shall supply the Trustee and each
Holder who so requests or shall supply to the Trustee for forwarding to each
such Holder, without cost to such Holder, copies of such reports and other
information.

 

SECTION 4.12.            Waiver of Stay, Extension or
Usury Laws.  The Company covenants
(to the extent that it may lawfully do so) that it will not at any time insist
upon, or plead, or in any manner whatsoever claim or take the benefit or
advantage of, any stay or extension law or any usury law or other law that
would prohibit or forgive the Company from paying all or any portion of the
principal of, premium, if any, or interest on the Notes as contemplated herein,
wherever enacted, now or at any time hereafter in force, or that may affect the
covenants or the performance of this Indenture; and (to the extent that it may
lawfully do so) the Company hereby expressly waives all benefit or advantage of
any such law and covenants that it will not hinder, delay or impede the
execution of any power herein granted to the Trustee, but will suffer and
permit the execution of every such power as though no such law had been
enacted.

 

SECTION 4.13.            Issuances of Subsidiary
Guarantees.  The Company shall cause
each Significant Subsidiary of the Company (other than a Foreign Subsidiary or
a Significant Subsidiary that is already a Subsidiary Guarantor) that (a) Guarantees
Indebtedness of the Company or any Subsidiary Guarantor in an aggregate amount
in excess of $50 million or (b) incurs or otherwise becomes liable for
Indebtedness or Attributable Debt in respect of Sale and Leaseback
Transactions, in an aggregate amount in excess of $50 million (other than (x) Indebtedness
secured by a Mortgage permitted by clause (i), (ii), (iii), (iv) or (v) of
Section 4.03 hereof or unsecured Indebtedness incurred to provide funds
for the cost of acquisition, construction, development or improvement of
property of such Significant Subsidiary and (y) Attributable Debt
permitted by clauses (i) through (iv) of Section 4.04 hereof)
shall execute and deliver a supplemental indenture to this Indenture providing
for a Note Guarantee by such Significant Subsidiary pursuant to Article Ten.

 

SECTION 4.14             Additional
Interest Notice.  In the event that the Company is required
to pay interest to holders of Notes at an increased rate pursuant to the terms
of the Notes, the Company will provide written notice (“Additional
Interest Notice”) to the Trustee of its obligation to pay interest
at an increased rate no later than fifteen days prior to the proposed payment
date for the interest, and the Additional Interest Notice shall set forth the
amount of interest to be paid by the Company on such payment date. The Trustee
shall not at any time be under any duty or responsibility to any holder of
Notes to determine the interest, or with respect to the nature, extent, or
calculation of the amount of interest owed, or with respect to the method
employed in such calculation of the interest.

 

33

 

ARTICLE FIVE

SUCCESSOR CORPORATION

 

SECTION 5.01.            When Company or Subsidiary
Guarantors May Merge, Etc. The Company will not consolidate with,
merge with or into, or sell, convey, transfer, lease or otherwise dispose of
all or substantially all of its property and assets (as an entirety or
substantially an entirety in one transaction or a series of related
transactions) to, any Person or permit any Person to merge with or into it
unless:

 

(i)            it shall be the
continuing Person, or the Person (if other than it) formed by such
consolidation or into which it is merged or that acquired or leased such
property and assets (the “Surviving Person”), shall be a corporation
organized and validly existing under the laws of the United States of America
or any jurisdiction thereof and shall expressly assume, by a supplemental
indenture, executed and delivered to the Trustee, all of the Company’s
obligations under this Indenture and the Notes;

 

(ii)           immediately after
giving effect to such transaction, no Default or Event of Default shall have
occurred and be continuing;

 

(iii)          it delivers to the
Trustee an Officers’ Certificate and Opinion of Counsel, in each case stating
that such consolidation, merger or transfer and such supplemental indenture
complies with this Section 5.01 and that all conditions precedent provided
for herein relating to such transaction have been complied with; and

 

(iv)          each Subsidiary
Guarantor, unless such Subsidiary Guarantor is the Person with which the
Company has entered into a transaction under this Section 5.01, shall have
by amendment to its Note Guarantee confirmed that its Note Guarantee shall
apply to the obligations of the Company or the Surviving Person in accordance
with the Notes and this Indenture.

 

Each Subsidiary Guarantor (other than any Subsidiary
Guarantor whose Note Guarantee is to be released in accordance with the terms
of its Note Guarantee and this Indenture, in connection with the sale, exchange
or transfer to any Person (other than an Affiliate of the Company) of all the Capital
Stock of such Subsidiary Guarantor) will not, and the Company will not cause or
permit any Subsidiary Guarantor to, consolidate with or merge with or into any
Person other than the Company or any other Subsidiary Guarantor unless:

 

(i)            such Subsidiary
Guarantor is the surviving corporation or the Person formed by or surviving any
such consolidation or merger (if other than the Subsidiary Guarantor) is a
corporation organized and existing under the laws of the United States or any
State thereof or the District of Columbia and such Person assumes by
supplemental indenture all of the obligations of the Subsidiary Guarantor on
its Note Guarantee; and

 

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

 

SECTION 5.02.            Successor Substituted.  Upon any consolidation or merger, or any
sale, conveyance, transfer, lease or other disposition of all or substantially
all of the 

 

34

 

property
and assets of the Company or any Subsidiary Guarantor in accordance with Section 5.01
of this Indenture, the successor Person formed by such consolidation or into
which the Company or any Subsidiary Guarantor is merged or to which such sale,
conveyance, transfer, lease or other disposition is made shall succeed to and
be substituted for, and may exercise every right and power of, the Company or
such Subsidiary Guarantor under this Indenture with the same effect as if such
successor Person had been named as the Company or such Subsidiary Guarantor
herein; provided that the Company
shall not be released from its obligation to pay the principal of, premium, if
any, or interest on the Notes and such Subsidiary Guarantor shall not be
released from its Note Guarantee in the case of a lease of all or substantially
all of its property and assets.

 

ARTICLE SIX

DEFAULT AND REMEDIES

 

SECTION 6.01.            Events of Default.  The following events will be defined as “Events
of Default” in this Indenture:

 

(a)           default in the payment of principal of (or premium, if
any, on) any Note when the same becomes due and payable at maturity, upon
acceleration, redemption or otherwise;

 

(b)           default in the payment of interest on any Note when the
same becomes due and payable, and such default continues for a period of
30 days;

 

(c)           (1) the Company defaults in the performance of or
breaches any other covenant or agreement in this Indenture or under the Notes
(other than a default specified in clause (a) or (b) above and
other than a default related to the obligations of the Company under Section 4.11)
and such default or breach continues for a period of 30 consecutive days after
written notice by the Trustee or the Holders of 25% or more in aggregate
principal amount of the Notes and (2) the Company defaults in the
performance of or breaches its obligations under Section 4.11 and such
default or breach continues for a period of 90 consecutive days after written
notice by the Trustee or the Holders of 25% or more in aggregate principal
amount of the Notes;

 

(d)           there occurs with respect to any issue or issues of
Indebtedness of the Company, any Subsidiary Guarantor or any Significant
Subsidiary having an outstanding principal amount of $75 million or more in the
aggregate for all such issues of all such Persons, whether such Indebtedness
now exists or shall hereafter be created, (A) an event of default that has
caused the holder thereof to declare such Indebtedness to be due and payable
prior to its Stated Maturity and such Indebtedness has not been discharged in
full or such acceleration has not been rescinded or annulled within
30 days of such acceleration and/or (B) the failure to make a
principal payment at the final (but not any interim) fixed maturity and such
defaulted payment shall not have been made, waived or extended within 30 days
of such payment default;

 

(e)           any final judgment or order (not covered by insurance) for
the payment of money in excess of $75 million in the aggregate for all such
final judgments or orders 

 

35

 

against all such Persons (treating any
deductibles, self-insurance or retention as not so covered) shall be rendered
against the Company, any Subsidiary Guarantor or any Significant Subsidiary and
shall not be paid or discharged, and there shall be any period of
60 consecutive days following entry of the final judgment or order that
causes the aggregate amount for all such final judgments or orders outstanding
and not paid or discharged against all such Persons to exceed $75 million
during which a stay of enforcement of such final judgment or order, by reason
of a pending appeal or otherwise, shall not be in effect;

 

(f)            a court having jurisdiction in the premises enters a
decree or order for (A) relief in respect of the Company, any Subsidiary
Guarantor or any Significant Subsidiary in an involuntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, (B) appointment of a receiver, liquidator, assignee, custodian,
trustee, sequestrator or similar official of the Company, any Subsidiary
Guarantor or any Significant Subsidiary or for all or substantially all of the
property and assets of the Company, any Subsidiary Guarantor or any Significant
Subsidiary or (C) the winding-up or liquidation of the affairs of the
Company, any Subsidiary Guarantor or any Significant Subsidiary and, in each
case, such decree or order shall remain unstayed and in effect for a period of
60 consecutive days;

 

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

 

(h)           any Subsidiary Guarantor repudiates its obligations under
its Note Guarantee or, except as permitted by this Indenture, any Note
Guarantee is determined to be unenforceable or invalid or shall for any reason
cease to be in full force and effect.

 

SECTION 6.02.            Acceleration.  If an Event of Default (other than an Event
of Default specified in clause (f) or (g) of Section 6.01
that occurs with respect to the Company or any Subsidiary Guarantor) occurs and
is continuing under this Indenture, the Trustee or the Holders of at least 25%
in aggregate principal amount of the Notes then outstanding, by written notice
to the Company (and to the Trustee if such notice is given by the Holders),
may, and the Trustee at the request of such Holders shall, declare the
principal of, premium, if any, and accrued interest on the Notes to be
immediately due and payable.  Upon a declaration
of acceleration, such principal of, premium, if any, and accrued interest shall
be immediately due and payable.  In the
event of a declaration of acceleration because an Event of Default set forth in
clause (d) of Section 6.01 has occurred and is continuing, such
declaration of acceleration shall be automatically rescinded and annulled if
the event of default triggering such Event of Default pursuant to clause (d) of
Section 6.01 shall be remedied or cured by the Company, the relevant
Subsidiary Guarantor or the relevant Significant Subsidiary or waived by the
holders of 

 

36

 

the
relevant Indebtedness within 60 days after the declaration of acceleration
with respect thereto.  If an Event of
Default specified in clause (f) or (g) of Section 6.01
occurs with respect to the Company or any Subsidiary Guarantor, the principal
of, premium, if any, and accrued interest on the Notes then outstanding shall
automatically become and be immediately due and payable without any declaration
or other act on the part of the Trustee or any Holder.

 

Any time after such declaration of acceleration, but
before a judgment or decree for the payment of money due has been obtained by
the Trustee, the Holders of at least a majority in principal amount of the
outstanding Notes by written notice to the Company and to the Trustee, may
waive all past defaults and rescind and annul a declaration of acceleration and
its consequences if (a) the Company has paid or deposited with the Trustee
a sum sufficient to pay (i) all sums paid or advanced by the Trustee
hereunder and the reasonable compensation, expenses and disbursements and
advances of the Trustee, its agents and counsel, (ii) all overdue interest
on all Notes, (iii) the principal of and premium, if any, on any Notes
that have become due otherwise than by such declaration or occurrence of
acceleration and interest thereon at the rate prescribed therefor by such
Notes, and (iv) to the extent that payment for such interest is lawful,
interest upon overdue interest, if any, at the rate prescribed therefor by such
Notes, (b) all existing Events of Default, other than the nonpayment of
the principal of, premium, if any, and interest on the Notes that have become
due solely by such declaration of acceleration, have been cured or waived and (c) the
rescission would not conflict with any judgment or decree of a court of
competent jurisdiction.

 

SECTION 6.03.            Other Remedies.  If an Event of Default occurs and is
continuing, the Trustee may, and at the direction of the Holders of at least a
majority in principal amount of the outstanding Notes shall, pursue any
available remedy by proceeding at law or in equity to collect the payment of
principal of, premium, if any, or interest on the Notes or to enforce the
performance of any provision of the Notes or this Indenture.

 

The Trustee may maintain a proceeding even if it does
not possess any of the Notes or does not produce any of them in the proceeding.

 

SECTION 6.04.            Waiver of Past Defaults.  Subject to Sections 6.02, 6.07 and 9.02, the
Holders of at least a majority in principal amount of the outstanding Notes, by
notice to the Trustee, may waive an existing Default or Event of Default and
its consequences, except a Default in the payment of principal of, premium, if
any, or interest on any Note as specified in clause (a) or (b) of Section 6.01
or in respect of a covenant or provision of this Indenture which cannot be
modified or amended without the consent of the Holder of each outstanding Note affected.  Upon any such waiver, such Default shall
cease to exist, and any Event of Default arising therefrom shall be deemed to
have been cured, for every purpose of this Indenture; but no such waiver shall
extend to any subsequent or other Default or Event of Default or impair any
right consequent thereto.

 

SECTION 6.05.            Control by Majority.  The Holders of at least a majority in
aggregate principal amount of the outstanding Notes may direct the time, method
and place of conducting any proceeding for any remedy available to the Trustee
or exercising any trust or power conferred on the Trustee.  However, the Trustee may refuse to follow any
direction that conflicts with law or this Indenture, that may involve the Trustee
in personal liability, or that the 

 

37

 

Trustee
determines in good faith may be unduly prejudicial to the rights of Holders of
Notes not joining in the giving of such direction and may take any other action
it deems proper that is not inconsistent with any such direction received from
Holders of Notes.

 

SECTION 6.06.            Limitation on Suits.  A
Holder may not institute any proceeding, judicial or otherwise, with respect to
this Indenture or the Notes, or for the appointment of a receiver or trustee,
or for any other remedy hereunder, unless:

 

(i)            the Holder has
previously given the Trustee written notice of a continuing Event of Default;

 

(ii)           the Holders of at least 25% in aggregate
principal amount of outstanding Notes shall have made a written request to the
Trustee to pursue such remedy;

 

(iii)          such Holder or
Holders offer the Trustee indemnity reasonably satisfactory to the Trustee
against any costs, liability or expense;

 

(iv)          the Trustee does not
comply with the request within 60 days after receipt of the request and the
offer of indemnity; and

 

(v)           during such 60-day
period, the Holders of a majority in aggregate principal amount of the
outstanding Notes do not give the Trustee a direction that is inconsistent with
the request.

 

For purposes of Section 6.05 of this Indenture
and this Section 6.06, the Trustee shall comply with TIA Section 316(a) in
making any determination of whether the Holders of the required aggregate
principal amount of outstanding Notes have concurred in any request or direction
of the Trustee to pursue any remedy available to the Trustee or the Holders
with respect to this Indenture or the Notes or otherwise under the law.

 

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

 

SECTION 6.07.            Rights of Holders to Receive
Payment.  Notwithstanding any other
provision of this Indenture, the right of any Holder of a Note to receive
payment of the principal of, premium, if any, or interest on, such Note or to
bring suit for the enforcement of any such payment, on or after the due date
expressed in the Notes, shall not be impaired or affected without the consent
of such Holder.

 

SECTION 6.08.            Collection Suit by Trustee.  If an Event of Default in payment of
principal, premium or interest specified in clause (a) or (b) of Section 6.01
occurs and is continuing, the Trustee may recover judgment in its own name and
as trustee of an express trust against the Company or any other obligor of the
Notes for the whole amount of principal, premium, if any, and accrued interest
remaining unpaid, together with interest on overdue principal, premium, if any,
and, to the extent that payment of such interest is lawful, interest on overdue
installments of interest, in each case at the rate specified in the Notes, and
such further amount as shall be sufficient to cover the costs and expenses of
collection, including the

 

38

 

reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel.

 

SECTION 6.09.            Trustee May File Proofs of
Claim.  The Trustee may file such
proofs of claim and other papers or documents as may be necessary or advisable
in order to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due the Trustee under Section 7.07)
and the Holders allowed in any judicial proceedings relative to the Company (or
any other obligor of the Notes), its creditors or its property and shall be
entitled and empowered to collect and receive any monies, securities or other
property payable or deliverable upon conversion or exchange of the Notes or
upon any such claims and to distribute the same, and any custodian, receiver,
assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Holder to make such
payments to the Trustee and, in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any
amount due to it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 7.07.  Nothing
herein contained shall be deemed to empower the Trustee to authorize or consent
to, or accept or adopt on behalf of any Holder, any plan of reorganization,
arrangement, adjustment or composition affecting the Notes or the rights of any
Holder thereof, or to authorize the Trustee to vote in respect of the claim of
any Holder in any such proceeding.

 

SECTION 6.10.            Priorities.  If the Trustee collects any money or property
pursuant to this Article Six, it shall pay out the money or property in
the following order:

 

First:  to the
Trustee for all amounts due under Section 7.07;

 

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

 

Third:  to the
Company or any other obligors of the Notes, as their interests may appear, or
as a court of competent jurisdiction may direct.

 

The Trustee, upon prior written notice to the Company,
may fix a record date and payment date for any payment to Holders pursuant to
this Section 6.10.

 

SECTION 6.11.            Undertaking for Costs.   In any suit for the enforcement of any right
or remedy under this Indenture or in any suit against the Trustee for any
action taken or omitted by it as Trustee, a court may require any party
litigant in such suit to file an undertaking to pay the costs of the suit, and
the court may assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in the suit having due regard to the merits and good
faith of the claims or defenses made by the party litigant.  This Section 6.11 does not apply to a
suit by the Trustee, a suit by a Holder pursuant to Section 6.07, or a
suit by Holders of more than 10% in principal amount of the outstanding Notes.

 

39

 

SECTION 6.12.            Restoration of Rights and
Remedies.  If the Trustee or any
Holder has instituted any proceeding to enforce any right or remedy under this
Indenture and such proceeding has been discontinued or abandoned for any
reason, or has been determined adversely to the Trustee or to such Holder,
then, and in every such case, subject to any determination in such proceeding,
the Company, the Trustee and the Holders shall be restored severally and
respectively to their former positions hereunder and thereafter all rights and
remedies of the Company, Trustee and the Holders shall continue as though no
such proceeding had been instituted.

 

SECTION 6.13.            Rights and Remedies Cumulative.  Except as otherwise provided with respect to
the replacement or payment of mutilated, destroyed, lost or wrongfully taken
Notes in Section 2.09, 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 6.14.            Delay or Omission Not Waiver.  No delay or omission of the Trustee or of any
Holder to exercise any right or remedy accruing upon any Event of Default shall
impair any such right or remedy or constitute a waiver of any such Event of
Default or an acquiescence therein. 
Every right and remedy given by this Article Six or by law to the
Trustee or to the Holders may be exercised from time to time, and as often as
may be deemed expedient, by the Trustee or by the Holders, as the case may be.

 

ARTICLE
SEVEN

TRUSTEE

 

SECTION 7.01.            General.  The duties and responsibilities of the
Trustee shall be as provided by the TIA and as set forth herein.  Notwithstanding the foregoing, no provision
of this Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not assured to it.  Whether or not herein expressly so provided,
every provision of this Indenture relating to the conduct or affecting the
liability of or affording protection to the Trustee shall be subject to the
provisions of this Article Seven.

 

Except during the continuance of an Event of Default,
the Trustee need only perform such duties as are specifically set forth in this
Indenture.  If an Event of Default has
occurred and is continuing, the Trustee will use the same degree of care and
skill in its exercise of the rights and powers vested in it under this
Indenture as a prudent person would exercise under the circumstances in the
conduct of such person’s own affairs.

 

SECTION 7.02.            Certain Rights of Trustee.  Subject to TIA Sections 315(a) through
(d):

 

40

 

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

 

(ii)           before the Trustee
acts or refrains from acting, it may require an Officers’ Certificate or an
Opinion of Counsel, which shall conform to Section 11.04.  The Trustee shall not be liable for any
action it takes or omits to take in good faith in reliance on such certificate
or opinion;

 

(iii)          the Trustee may act
through its attorneys and agents and shall not be responsible for the
misconduct or negligence of any attorney or agent appointed with due care by it
hereunder;

 

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

 

(v)           the Trustee shall
not be liable for any action it takes or omits to take in good faith that it
believes to be authorized or within its rights or powers or for any action it
takes or omits to take in accordance with the direction of the Holders of a
majority in aggregate principal amount of the outstanding Notes relating to the
time, method and place of conducting any proceeding for any remedy available to
the Trustee or exercising any trust or power conferred on the Trustee, provided that the Trustee’s conduct does
not constitute negligence or bad faith;

 

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

 

(vii)         the Trustee shall
not be bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, financial statement,
report, notice, request, direction, consent, order, bond, debenture, note,
other evidence of indebtedness or other paper or document, but the Trustee, in
its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit, and, if the Trustee shall determine to make such
further inquiry or investigation, it shall be entitled, at the Company’s sole
cost and expense, 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;

 

41

 

(viii)        the Trustee shall
not be charged with knowledge of any Default or Event of Default with respect
to the Notes unless either (1) a Responsible Officer shall have actual
knowledge of such Default or Event of Default or (2) written notice of
such Default or Event of Default shall have been given to the Trustee by the
Company, any Subsidiary Guarantor or by any Holder of the Notes;

 

(ix)           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 in respect of any action taken, suffered or omitted by it hereunder
in good faith and in reliance thereon;

 

(x)            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;

 

(xi)           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 Securities and this Indenture;

 

(xii)          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; and

 

(xiii)         the Trustee may request that the
Company deliver a certificate setting forth the names of individuals and/or
titles of officers authorized at such time to take specified actions pursuant
to this Indenture.

 

SECTION 7.03.            Individual Rights of Trustee.  The Trustee, in its individual or any other
capacity, may become the owner or pledgee of Notes and may otherwise deal with
the Company or its Affiliates with the same rights it would have if it were not
the Trustee.  Any Agent may do the same
with like rights.  However, the Trustee
is subject to TIA Sections 310(b) and 311.

 

SECTION 7.04.            Trustee’s Disclaimer.   The Trustee (i) makes no representation
as to the validity or adequacy of this Indenture or the Notes, (ii) shall
not be accountable for the Company’s use or application of the proceeds from
the Notes and (iii) shall not be responsible for any statement in the
Notes other than its certificate of authentication.

 

SECTION 7.05.            Notice of Default.  If any Default or any Event of Default occurs
and is continuing and if such Default or Event of Default is known to any
Responsible Officer of the Trustee, the Trustee shall mail to each Holder in
the manner and to the extent provided in TIA Section 313(c) notice of
the Default or Event of Default within 60 days after it occurs, unless such
Default or Event of Default has been cured; provided,
however, that, except 

 

42

 

in
the case of a default in the payment of the principal of, premium, if any, or
interest on any Note, the Trustee shall be protected in withholding such notice
if and so long as a trust committee of Responsible Officers of the Trustee in
good faith determine that the withholding of such notice is in the interest of
the Holders.

 

SECTION 7.06.            Reports by Trustee to Holders.  Within 60 days after each May 15,
beginning with May 15, 2008, the Trustee shall mail to each Holder as
provided in TIA Section 313(c) a brief report dated as of such May 15,
if required by TIA Section 313(a).

 

A copy of each report at the time of its mailing to
the Holders of Securities shall be mailed to the Company and filed with the
Commission and each stock exchange on which the Securities are listed in
accordance with TIA Section 313(d). 
The Company shall promptly notify the Trustee when the Securities are
listed on any stock exchange or of any delisting thereof.

 

SECTION 7.07.            Compensation and Indemnity.   The Company shall pay to the Trustee such
compensation as shall be agreed upon in writing, from time to time, for its
services hereunder.  The compensation of
the Trustee shall not be limited by any law on compensation of a trustee of an
express trust.  The Company shall
reimburse the Trustee upon request for all reasonable disbursements, expenses
and advances incurred or made by the Trustee without negligence or bad faith on
its part.  Such expenses shall include
the reasonable compensation and expenses of the Trustee’s agents and counsel.

 

The Company and each Subsidiary Guarantor, jointly and
severally, shall indemnify each of the Trustee or any predecessor Trustee and
their agents for, and hold them harmless against, any and all loss, damage,
claims, liability or expense, including taxes (other than taxes based upon,
measured by or determined by the income of the Trustee), arising out of or in
connection with the acceptance or administration of the trust or trusts
hereunder, including the costs and expenses of defending itself against any
claim (whether asserted by the Company, or any Holder or any other Person) or
liability in connection with the exercise or performance of any of its powers
or duties hereunder, or in connection with enforcing the provisions of this
Section, except to the extent that such loss, damage, claim, liability or
expense is due to its own negligence or bad faith.  The Trustee shall notify the Company promptly
of any claim for which it may seek indemnity. 
Failure by the Trustee to so notify the Company shall not relieve the
Company of its obligations hereunder, unless the Company is materially
prejudiced thereby.  The Company shall
defend the claim and the Trustee shall cooperate in the defense provided, however,
that the Trustee shall have the right to defend such claim if, upon the advice
of counsel, its interests may be prejudiced by the conduct of such defense by
the Company.  Unless otherwise set forth
herein, the Trustee may have separate counsel and the Company shall pay the
reasonable fees and expenses of such counsel. 
The Company need not pay for any settlement made without its consent,
which consent shall not be unreasonably withheld.

 

To secure the Company’s payment obligations in this Section 7.07,
the Trustee shall have a lien prior to the Notes on all money or property held
or collected by the Trustee, in its capacity as Trustee, except money or
property held in trust to pay principal of, premium, if any, and interest on
particular Notes.

 

43

 

If the Trustee incurs expenses or renders services
after the occurrence of an Event of Default specified in clause (f) or (g) of
Section 6.01, the expenses and the compensation for the services will be
intended to constitute expenses of administration under Title 11 of the United
States Bankruptcy Code or any applicable federal or state law for the relief of
debtors.

 

The provisions of this Section 7.07 shall survive
the resignation or removal of the Trustee and termination of this Indenture.

 

The Trustee shall comply with the provisions of TIA Section 313(b)(2) to
the extent applicable.

 

SECTION 7.08.      Replacement of Trustee.  
A resignation or removal of the Trustee and appointment of a successor
Trustee shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section 7.08.

 

The Trustee may resign at any time by so notifying the
Company in writing at least 30 days prior to the date of the proposed
resignation.  The Holders of a majority
in principal amount of the outstanding Notes may remove the Trustee by so
notifying the Trustee in writing and may appoint a successor Trustee with the
consent of the Company.  The Company may
remove the Trustee if:  (i) the
Trustee is no longer eligible under Section 7.10; (ii) the Trustee is
adjudged a bankrupt or an insolvent; (iii) a receiver or other public
officer takes charge of the Trustee or its property; or (iv) the Trustee
becomes incapable of acting.

 

If the Trustee resigns or is removed, or if a vacancy
exists in the office of Trustee for any reason, the Company shall promptly
appoint a successor Trustee.  Within one
year after the successor Trustee takes office, the Holders of a majority in
principal amount of the outstanding Notes may appoint a successor Trustee to replace
the successor Trustee appointed by the Company. 
If the successor Trustee does not deliver its written acceptance
required by the next succeeding paragraph of this Section 7.08 within 30
days after the retiring Trustee resigns or is removed, the retiring Trustee,
the Company or the Holders of a majority in principal amount of the outstanding
Notes may, at the expense of the Company, petition any court of competent
jurisdiction for the appointment of a successor Trustee.

 

A successor Trustee shall deliver a written acceptance
of its appointment to the retiring Trustee and to the Company.  Immediately after the delivery of such
written acceptance, subject to the lien provided in Section 7.07, (i) the
retiring Trustee shall transfer all property held by it as Trustee to the
successor Trustee, (ii) the resignation or removal of the retiring Trustee
shall become effective and (iii) the successor Trustee shall have all the
rights, powers and duties of the Trustee under this Indenture.  A successor Trustee shall mail notice of its
succession to each Holder.  No successor
Trustee shall accept its appointment unless at the time of such acceptance such
successor Trustee shall be qualified and eligible under this Article.

 

If the Trustee is no longer eligible under Section 7.10
or shall fail to comply with TIA Section 310(b), any Holder who satisfies
the requirements of TIA Section 310(b) may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a
successor Trustee.  If at any time the
Trustee shall cease to be eligible in accordance with the 

 

44

 

provisions of this Section 7.08,
the Trustee shall resign immediately in the manner and with the effect provided
in this Section.

 

The Company shall give notice of any resignation and
any removal of the Trustee and each appointment of a successor Trustee to all
Holders.  Each notice shall include the
name of the successor Trustee and the address of its Corporate Trust Office.

 

Notwithstanding replacement of the Trustee pursuant to
this Section 7.08, the Company’s obligation under Section 7.07 shall
continue for the benefit of the retiring Trustee.  Upon the Trustee’s resignation or removal,
the Company shall promptly pay the Trustee all amounts owed by the Company to
the Trustee.

 

SECTION 7.09.      Successor Trustee by Merger, Etc.  If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all of its corporate trust
business to, another corporation or national banking association, the
resulting, surviving or transferee corporation or national banking association
without any further act shall be the successor Trustee with the same effect as
if the successor Trustee had been named as the Trustee herein, provided such
corporation shall be otherwise qualified and eligible under this Article.

 

SECTION 7.10.      Eligibility.  This Indenture shall always have a Trustee
who satisfies the requirements of TIA Section 310(a)(1).  The Trustee shall have a combined capital and
surplus of at least $25 million as set forth in its most recent published
annual report of condition that is subject to the requirements of applicable
federal or state supervising or examining authority.  If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section 7.10, the
Trustee shall resign immediately in the manner and with the effect specified in
this Article.

 

SECTION 7.11.      Money Held in Trust.  The Trustee shall not be liable for interest
on any money received by it except as the Trustee may agree with the
Company.  Money held in trust by the
Trustee need not be segregated from other funds except to the extent required
by law and except for money held in trust under Article Eight of this
Indenture.

 

ARTICLE
EIGHT

DISCHARGE OF INDENTURE

 

SECTION 8.01.      Termination of Company’s Obligations.  Except as otherwise provided in this Section 8.01,
the Company may terminate its obligations under the Notes and this Indenture
if:

 

(i)            all Notes
previously authenticated and delivered (other than destroyed, lost or stolen
Notes that have been replaced or Notes that are paid pursuant to Section 4.01
or Notes for whose payment money or securities have theretofore been held in
trust and thereafter repaid to the Company, as provided in Section 8.05)
have been delivered to the Trustee for cancellation and the Company has paid
all sums payable by it hereunder; or

 

(ii)           (A) the Notes
mature within one year or all of them are to be called for redemption within
one year under arrangements satisfactory to the Trustee for giving the notice
of redemption, (B) the Company irrevocably deposits in trust with the
Trustee 

 

45

 

during
such one-year period, under the terms of an irrevocable trust agreement in form
and substance satisfactory to the Trustee, as trust funds solely for the
benefit of the Holders for that purpose, money or U.S. Government Obligations
sufficient (in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the
Trustee), without consideration of any reinvestment of any interest thereon, to
pay principal, premium, if, any, and interest on the Notes to maturity or
redemption, as the case may be, and to pay all other sums payable by it
hereunder, (C) no Default or Event of Default with respect to the Notes
shall have occurred and be continuing on the date of such deposit, (D) such
deposit will not result in a breach or violation of, or constitute a default
under, this Indenture or any other agreement or instrument to which the Company
is a party or by which it is bound and (E) the Company has delivered to
the Trustee an Officers’ Certificate and an Opinion of Counsel, in each case
stating that all conditions precedent provided for herein relating to the
satisfaction and discharge of this Indenture have been complied with.

 

With respect to the foregoing clause (i), the Company’s
obligations under Section 7.07 shall survive.  With respect to the foregoing
clause (ii), the Company’s obligations in Sections 2.02, 2.03, 2.04, 2.05,
2.06, 2.07, 2.08, 2.09, 2.14, 4.01, 4.02, 7.07, 7.08, 8.04, 8.05 and 8.06 shall
survive until the Notes are no longer outstanding.  Thereafter, only the Company’s obligations in
Sections 7.07, 8.04, 8.05 and 8.06 shall survive.  After any such irrevocable deposit, the
Trustee upon request shall acknowledge in writing the discharge of the Company’s
obligations under the Notes and this Indenture except for those surviving obligations
specified above.

 

SECTION 8.02.      Defeasance and Discharge of Indenture.  The Company will be deemed to have paid and
will be discharged from any and all obligations in respect of the Notes on the
123rd day after the deposit referred to in clause (A) of this Section 8.02,
and the provisions of this Indenture will no longer be in effect with respect
to the Notes (except for, among other matters, certain obligations to register
the transfer or exchange of the Notes, to replace stolen, lost or mutilated
Notes, to maintain paying agencies and to hold monies for payment in trust) and
the Trustee, at the expense of the Company, shall execute proper instruments
acknowledging the same if:

 

(A)          With reference to
this Section 8.02, the Company has irrevocably deposited or caused to be
irrevocably deposited with the Trustee (or another trustee satisfying the
requirements of Section 7.10) and conveyed all right, title and interest
to the Trustee for the benefit of the Holders, under the terms of an
irrevocable trust agreement in form and substance satisfactory to the Trustee
as trust funds in trust specifically pledged to the Trustee for the benefit of
the Holders as security for payment of the principal of, or premium, if any, on
the Notes and dedicated solely to, the benefit of the Holders, in and to (1) money
in an amount, (2) U.S. Government Obligations that through the payment of
interest and principal in respect thereof in accordance with their terms, will
provide, not later than one day before the due date of any payment referred to
in clause (A), money in an amount or (3) a combination thereof in an
amount sufficient, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge, without consideration of the
reinvestment of such interest and after payment of all 

 

46

 

federal,
state and local taxes or other charges and assessments in respect thereof payable
by the Trustee, the principal of, premium if any, and accrued interest on the
outstanding Notes (i) on the Stated Maturity of such principal and
interest; provided that the Trustee shall have been irrevocably instructed to
apply such money or the proceeds of such U.S. Government Obligations to the
payment of such principal, premium, if any, and interest with respect to the
Notes or (ii) on any earlier Redemption Date pursuant to the terms of the
Indenture and the Notes; provided that the Company has provided the Trustee
with irrevocable instructions to redeem all of the outstanding Notes on such
Redemption Date;

 

(B)           The Company has
delivered to the Trustee (1) either (x) an Opinion of Counsel to the
effect that Holders will not recognize income, gain or loss for federal income
tax purposes as a result of the Company’s exercise of its option under this Section 8.02
and will be subject to federal income tax on the same amount and in the same
manner and at the same times as would have been the case if such deposit,
defeasance and discharge had not occurred, which Opinion of Counsel shall be
based upon (and accompanied by a copy of) a ruling of the Internal Revenue
Service to the same effect unless there has been a change in applicable federal
income tax law after the Closing Date such that a ruling is no longer required
or (y) a ruling directed to the Trustee received from the Internal Revenue
Service to the same effect as the aforementioned Opinion of Counsel and (2) an
Opinion of Counsel to the effect that the creation of the defeasance trust does
not violate the Investment Company Act of 1940 and that after the passage of
123 days following the deposit (except, with respect to any trust funds for the
account of any Holder who may be deemed to be an “insider” for purposes of the
United States Bankruptcy Code, after one year following the deposit), the trust
funds will not be subject to the effect of Section 547 of the United
States Bankruptcy Code or Section 15 of the New York Debtor and Creditor
Law in a case commenced by or against the Company under either such statute,
and either (I) the trust funds will no longer remain the property of the
Company (and therefore will not be subject to the effect of any applicable
bankruptcy, insolvency, reorganization or similar laws affecting creditors’
rights generally) or (II) if a court were to rule under any such law
in any case or proceeding that the trust funds remained property of the
Company, (a) assuming such trust funds remained in the possession of the
Trustee prior to such court ruling to the extent not paid to the Holders, the
Trustee will hold, for the benefit of the Holders, a valid and perfected
security interest in such trust funds that is not avoidable in bankruptcy or
otherwise except for the effect of Section 552(b) of the United
States Bankruptcy Code on interest on the trust funds accruing after the
commencement of a case under such statute and (b) the Holders will be
entitled to receive adequate protection of their interests in such trust funds
if such trust funds are used in such case or proceeding;

 

(C)           immediately after
giving effect to such deposit on a pro forma basis, no
Event of Default, or event that after the giving of notice or lapse of time or
both would become an Event of Default, shall have occurred and be continuing on
the date of such deposit or during the period ending on the 123rd day
after the date of such deposit, and such deposit shall not result in a breach
or violation of, or constitute a default under, any other material agreement or
instrument to which the Company or any of its Subsidiaries is a party or by
which the Company or any of its Subsidiaries is bound;

 

47

 

(D)          if the Notes are then
listed on a national securities exchange, the Company has delivered to the
Trustee an Opinion of Counsel to the effect that the Notes will not be delisted
as a result of such deposit, defeasance and discharge; and

 

(E)           the Company has
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, in
each case stating that all conditions precedent provided for herein relating to
the defeasance contemplated by this Section 8.02 have been complied with.

 

Notwithstanding the foregoing, prior to the end of the
123-day (or one-year) period referred to in clause (B)(2) of this Section 8.02,
none of the Company’s obligations under this Indenture shall be
discharged.  Subsequent to the end of
such 123-day (or one year) period with respect to this Section 8.02, the
Company’s obligations in Sections 2.02, 2.03, 2.04, 2.05, 2.06, 2.07, 2.08,
2.09, 2.14, 4.01, 4.02, 8.04, 8.05, 8.06 and the rights, powers, trusts, duties
and immunities of the Trustee hereunder and Article Eleven (with respect to
payments in respect of Senior Subordinated Obligations other than with the
assets held in trust as described in this Section 8.02) shall survive
until the Notes are no longer outstanding. 
Thereafter, only the Company’s obligations in Sections 7.07, 8.04, 8.05
and 8.06 shall survive.  If and when a
ruling from the Internal Revenue Service or an Opinion of Counsel referred to
in clause (B)(1) of this Section 8.02 is able to be provided
specifically without regard to, and not in reliance upon, the continuance of
the Company’s obligations under Section 4.01, then the Company’s
obligations under such Section 4.01 shall cease upon delivery to the
Trustee of such ruling or Opinion of Counsel and compliance with the other
conditions precedent provided for herein relating to the defeasance
contemplated by this Section 8.02.

 

After any such irrevocable deposit, the Trustee upon
request shall acknowledge in writing the discharge of the Company’s obligations
under the Notes and this Indenture except for those surviving obligations in
the immediately preceding paragraph.

 

SECTION 8.03.      Defeasance of Certain Obligations.  The Company may omit to comply with any term,
provision or condition set forth in Sections 4.03 through 4.05 and such
omission shall be deemed not to be an Event of Default under clause (c) of
Section 6.01 and clauses (d) and (e) of Section 6.01 of
this Indenture, shall be deemed not to be Events of Default, in each case with
respect to the outstanding Notes if:

 

(i)            with reference to
this Section 8.03, the Company has irrevocably deposited or caused to be irrevocably
deposited with the Trustee (or another trustee satisfying the requirements of Section 7.10)
and conveyed all right, title and interest to the Trustee for the benefit of
the Holders, under the terms of an irrevocable trust agreement in form and substance
satisfactory to the Trustee as trust funds in trust, specifically pledged to
the Trustee for the benefit of the Holders as security for payment of the
principal of, premium, if any, and interest, if any, on the Notes, and
dedicated solely to, the benefit of the Holders, in and to (A) money in an
amount, (B) U.S. Government Obligations that, through the payment of
interest, premium, if any, and principal in respect thereof in accordance with
their terms, will provide, not later than one day before the due date of any
payment referred to in this clause (i), money in an amount or (C) a
combination thereof in an amount sufficient, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification 

 

48

 

thereof
delivered to the Trustee, to pay and discharge, without consideration of the
reinvestment of such interest and after payment of all federal, state and local
taxes or other charges and assessments in respect thereof payable by the
Trustee, the principal of, premium, if any, and interest on the outstanding
Notes (i) on the Stated Maturity of such principal or interest; provided that the Trustee shall have been
irrevocably instructed to apply such money or the proceeds of such U.S.
Government Obligations to the payment of such principal, premium, if any, and
interest with respect to the Notes or (ii) on any earlier Redemption Date
pursuant to the terms of the Indenture and the Notes; provided that the Company has provided the
Trustee with irrevocable instructions to redeem all of the outstanding Notes on
such redemption Date;

 

(ii)           the Company has
delivered to the Trustee an Opinion of Counsel to the effect that (A) the
creation of the defeasance trust does not violate the Investment Company Act of
1940, (B) after the passage of 123 days following the deposit (except,
with respect to any trust funds for the account of any Holder who may be deemed
to be an “insider” for purposes of the United States Bankruptcy Code, after one
year following the deposit), the trust funds will not be subject to the effect
of Section 547 of the United States Bankruptcy Code or Section 15 of
the New York Debtor and Creditor Law in a case commenced by or against the
Company under either such statute, and either (1) the trust funds will no
longer remain the property of the Company (and therefore will not be subject to
the effect of any applicable bankruptcy, insolvency, reorganization or similar
laws affecting creditors’ rights generally) or (2) if a court were to rule under
any such law in any case or proceeding that the trust funds remained property
of the Company, (x) assuming such trust funds remained in the possession
of the Trustee prior to such court ruling to the extent not paid to the
Holders, the Trustee will hold, for the benefit of the Holders, a valid and
perfected security interest in such trust funds that is not avoidable in
bankruptcy or otherwise (except for the effect of Section 552(b) of
the United States Bankruptcy Code on interest on the trust funds accruing after
the commencement of a case under such statute) and (y) the Holders will be
entitled to receive adequate protection of their interests in such trust funds
if such trust funds are used in such case or proceeding, (C) the Holders
will not recognize income, gain or loss for federal income tax purposes as a
result of such deposit and defeasance of certain covenants and Events of
Default and will be subject to federal income tax on the same amount and in the
same manner and at the same times as would have been the case if such deposit
and defeasance had not occurred and (D) the Trustee, for the benefit of
the Holders, has a valid first-priority security interest in the trust funds;

 

(iii)          immediately after
giving effect to such deposit on a pro forma basis, no Default or Event of
Default shall have occurred and be continuing on the date of such deposit or
during the period ending on the 123rd day after such date of such deposit, and
such deposit shall not result in a breach or violation of, or constitute a
default under, this Indenture or any other agreement or instrument to which the
Company or any of its Subsidiaries is a party or by which the Company or any of
its Subsidiaries is bound;

 

(iv)          if the Notes are then
listed on a national securities exchange, the Company has delivered to the
Trustee an Opinion of Counsel to the effect that the Notes will not be delisted
as a result of such deposit, defeasance and discharge; and

 

49

 

(v)           the Company has
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, in
each case stating that all conditions precedent provided for herein relating to
the defeasance contemplated by this Section 8.03 have been complied with.

 

SECTION 8.04.      Application of Trust Money.  Subject to Section 8.06, the Trustee or
Paying Agent shall hold in trust money or U.S. Government Obligations deposited
with it pursuant to Section 8.01, 8.02 or 8.03, as the case may be, and
shall apply the deposited money and the money from U.S. Government Obligations
in accordance with the Notes and this Indenture to the payment of principal of,
premium, if any, and interest on the Notes; but such money need not be
segregated from other funds except to the extent required by law.

 

SECTION 8.05.      Repayment to Company.  Subject to any applicable escheat and
abandoned property laws and Sections 7.07, 8.01, 8.02 and 8.03, the Trustee and
the Paying Agent shall promptly pay to the Company upon request set forth in an
Officers’ Certificate any excess money held by them at any time and thereupon
shall be relieved from all liability with respect to such money.  The Trustee and the Paying Agent shall pay to
the Company upon request any money held by them for the payment of principal,
premium, if any, or interest that remains unclaimed for two years; provided that the Trustee or Paying Agent
before being required to make any payment may cause to be published at the
expense of the Company once in a newspaper of general circulation in The City
of New York or mail to each Holder entitled to such money at such Holder’s
address (as set forth in the Security Register) notice that such money remains
unclaimed and that after a date specified therein (which shall be at least 30
days from the date of such publication or mailing) any unclaimed balance of
such money then remaining will be repaid to the Company.  After payment to the Company, Holders
entitled to such money must look to the Company for payment as general creditors
unless an applicable law designates another Person, and all liability of the
Trustee and such Paying Agent with respect to such money shall cease.

 

SECTION 8.06.      Reinstatement.  If the Trustee or Paying Agent is unable to
apply any money or U.S. Government Obligations in accordance with Section 8.01,
8.02 or 8.03, as the case may be, by reason of any legal proceeding or by
reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the Company’s
obligations under this Indenture and the Notes shall be revived and reinstated
as though no deposit had occurred pursuant to Section 8.01, 8.02 or 8.03,
as the case may be, until such time as the Trustee or Paying Agent is permitted
to apply all such money or U.S. Government Obligations in accordance with Section 8.01,
8.02 or 8.03, as the case may be; provided
that, if the Company has made any payment of principal of, premium, if any, or
interest on any Notes because of the reinstatement of its obligations, the
Company shall be subrogated to the rights of the Holders of such Notes to
receive such payment from the money or U.S. Government Obligations held by the
Trustee or Paying Agent.

 

ARTICLE NINE

AMENDMENTS, SUPPLEMENTS AND WAIVERS

 

SECTION 9.01.      Without Consent of Holders.  The Company, when authorized by a resolution
of its Board of Directors (as evidenced by a Board Resolution 

 

50

 

delivered
to the Trustee), the Subsidiary Guarantors and the Trustee may amend or
supplement this Indenture or the Notes without notice to or the consent of any
Holder to:

 

(1)           cure
any ambiguity, defect or inconsistency in this Indenture;

 

(2)           comply
with Article Five or Section 4.13;

 

(3)           comply
with any requirements of the Commission in connection with the qualification of
this Indenture under the TIA or in order to maintain such qualification;

 

(4)           evidence
and provide for the acceptance of appointment hereunder by a successor Trustee;

 

(5)           provide
for Additional Notes; or

 

(6)           make
any change that, in the good faith opinion of the Board of Directors, as
evidenced by a Board Resolution, does not materially and adversely affect the
rights of any Holder.

 

SECTION 9.02.      With Consent of Holders.  Subject to Sections 6.04 and 6.07 and without
prior notice to the Holders, the Company, when authorized by its Board of
Directors (as evidenced by a Board Resolution delivered to the Trustee), the
Subsidiary Guarantors and the Trustee may amend this Indenture and the Notes
with the consent of the Holders of a majority in aggregate principal amount of
the Notes then outstanding, and the Holders of a majority in aggregate
principal amount of the Notes then outstanding by written notice to the Trustee
may waive future compliance by the Company with any provision of this Indenture
or the Notes.

 

Notwithstanding the provisions of this Section 9.02,
without the consent of each Holder affected, an amendment or waiver, including
a waiver pursuant to Section 6.04, may not:

 

(i)            change the Stated
Maturity of the principal of, or any installment of interest on, any Note;

 

(ii)           reduce the
principal amount of, or premium, if any, or interest on, any Note;

 

(iii)          change the optional
redemption dates or optional redemption prices of the Notes from that stated in
Section 3.01;

 

(iv)          change any place or
currency of payment of principal of, or premium, if any, or interest on, any
Note;

 

(v)           impair the right to
institute suit for the enforcement of any payment on or after the Stated
Maturity (or, in the case of redemption, on or after the Redemption Date) of
any Note;

 

51

 

(vi)          waive a Default in
the payment of principal of, premium, if any, or interest on, any Note;

 

(vii)         modify any of the
provisions of this Section 9.02, except to increase any such percentage or
to provide that certain other provisions of this Indenture cannot be modified
or waived without the consent of the Holder of each outstanding Note affected
thereby;

 

(viii)        release any Subsidiary
Guarantor from its Note Guarantee, except as provided in this Indenture;

 

(ix)           amend, change or
modify the obligation of the Company to make and consummate an Offer to
Purchase under Section 4.05 after a Change of Control has occurred,
including amending, changing or modifying any definition relating thereto; or

 

(x)            reduce the
percentage or aggregate principal amount of outstanding Notes the consent of
whose Holders is necessary for waiver of compliance with certain provisions of
the Indenture or for waiver of certain Defaults.

 

It shall not be necessary for the consent of the
Holders under this Section 9.02 to approve the particular form of any
proposed amendment, supplement or waiver, but it shall be sufficient if such
consent approves the substance thereof.

 

After an amendment, supplement or waiver under this Section 9.02
becomes effective, the Company shall mail to the Holders affected thereby a
notice briefly describing the amendment, supplement or waiver.  The Company will mail supplemental indentures
to Holders upon request.  Any failure of
the Company to mail such notice, or any defect therein, shall not, however, in
any way impair or affect the validity of any such supplemental indenture or
waiver.

 

SECTION 9.03.      Revocation and Effect of Consent.  Until an amendment or waiver becomes
effective, a consent to it by a Holder is a continuing consent by the Holder
and every subsequent Holder of a Note or portion of a Note that evidences the
same debt as the Note of the consenting Holder, even if notation of the consent
is not made on any Note.  However, any
such Holder or subsequent Holder may revoke the consent as to its Note or
portion of its Note.  Such revocation shall
be effective only if the Trustee receives the notice of revocation before the
date the amendment, supplement or waiver becomes effective.  An amendment, supplement or waiver shall
become effective on receipt by the Trustee of written consents from the Holders
of the requisite percentage in principal amount of the outstanding Notes.

 

The Company may, but shall not be obligated to, fix a
record date for the purpose of determining the Holders entitled to consent to
any amendment, supplement or waiver.  If
a record date is fixed, then, notwithstanding the last two sentences of the immediately
preceding paragraph, those persons who were Holders at such record date (or
their duly designated proxies) and only those persons shall be entitled to
consent to such amendment, supplement or waiver or to revoke any consent
previously given, whether or not such persons continue to be Holders after such
record date.  No such consent shall be
valid or effective for more than 90 days after such record date.

 

52

 

After an amendment, supplement or waiver becomes
effective, it shall bind every Holder unless it is of the type described in the
second paragraph of Section 9.02. 
In case of an amendment or waiver of the type described in the second
paragraph of Section 9.02, the amendment or waiver shall bind each Holder
who has consented to it and every subsequent Holder of a Note that evidences
the same indebtedness as the Note of the consenting Holder.

 

SECTION 9.04.      Notation on or Exchange of Notes.  If an amendment, supplement or waiver changes
the terms of a Note, the Trustee may require the Holder to deliver such Note to
the Trustee.  At the Company’s expense,
the Trustee may place an appropriate notation on the Note about the changed
terms and return it to the Holder and the Trustee may place an appropriate
notation on any Note thereafter authenticated. 
Alternatively, if the Company or the Trustee so determines, the Company
in exchange for the Note shall issue and the Trustee shall authenticate a new
Note that reflects the changed terms. 
Failure to make the appropriate notation, or issue a new Note, shall not
affect the validity and effect of such amendment, supplement or waiver.

 

SECTION 9.05.      Trustee to Sign Amendments, Etc.  The Trustee shall be entitled to receive, and
shall be fully protected in relying upon, an Opinion of Counsel stating that
the execution of any amendment, supplement or waiver authorized pursuant to
this Article Nine is authorized or permitted by this Indenture and that it
will be valid and binding upon the Company. 
Subject to the preceding sentence, the Trustee shall sign such
amendment, supplement or waiver if the same does not adversely affect the
rights, duties, liabilities or immunities of the Trustee.  The Trustee may, but shall not be obligated
to, execute any such amendment, supplement or waiver that affects the Trustee’s
own rights, duties or immunities under this Indenture or otherwise.

 

SECTION 9.06.      Conformity with Trust Indenture Act.  Every supplemental indenture executed
pursuant to this Article Nine shall conform to the requirements of the TIA
as then in effect.

 

ARTICLE TEN

GUARANTEE OF NOTES

 

SECTION 10.01.    Note Guarantee.  Subject to the provisions of this Article Ten,
each Subsidiary Guarantor hereby, jointly and severally, fully and
unconditionally Guarantees to each Holder of Notes hereunder and to the Trustee
on behalf of the Holders:  (i) the
due and punctual payment of the principal of, premium, if any, on and interest
on each Note, when and as the same shall become due and payable, whether at
maturity, by acceleration or otherwise, the due and punctual payment of
interest on the overdue principal of and interest, if any, on the Notes, to the
extent lawful, and the due and punctual performance of all other obligations of
the Company to the Holders or the Trustee, all in accordance with the terms of
such Note and this Indenture and (ii) in the case of any extension of time
of payment or renewal of any Notes or any of such other obligations, that the
same will be promptly paid in full when due or performed  in accordance with the terms of the extension
or renewal, at Stated Maturity, by acceleration or otherwise, subject, however, in the case of clauses (i) and (ii) above, to
the limitations set forth in the next succeeding paragraph.

 

53

 

Each Subsidiary Guarantor and by its acceptance hereof
each Holder hereby confirms that it is the intention of all such parties that
the Guarantee by any Subsidiary Guarantor pursuant to its Note Guarantee not
constitute a fraudulent transfer or conveyance for purposes of the United
States Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the Uniform
Fraudulent Transfer Act or any similar Federal or state law.  To effectuate the foregoing intention, the
Holders and each Subsidiary Guarantor hereby irrevocably agree that the
obligations of each Subsidiary Guarantor under its Note Guarantee shall be
limited to the maximum amount as will, after giving effect to all other
contingent and fixed liabilities of each Subsidiary Guarantor and after giving
effect to any collections from or payments made by or on behalf of any other
Subsidiary Guarantor in respect of the obligations of such other Subsidiary
Guarantor under its Note Guarantee or pursuant to the following paragraph,
result in the obligations of such Subsidiary Guarantor under its Note Guarantee
not constituting such fraudulent transfer or conveyance.

 

In order to provide for just and equitable
contribution among the Subsidiary Guarantors, the Subsidiary Guarantors agree, inter se, that in the event any payment or
distribution is made by any Subsidiary Guarantor (a “Funding Guarantor”)
under its Note Guarantee, such Funding Guarantor shall be entitled to a
contribution from all other Subsidiary Guarantors in a pro rata amount based on the Adjusted Net Assets
of each Subsidiary Guarantor (including the Funding Guarantor) for all
payments, damages and expenses incurred by that Funding Guarantor in
discharging the Company’s obligations with respect to the Notes or any other
Subsidiary Guarantor’s obligations with respect to its Note Guarantee.  “Adjusted Net Assets” of such
Subsidiary Guarantor at any date shall mean the lesser of the amount by which (x) the
fair value of the property of such Subsidiary Guarantor exceeds the total
amount of liabilities, including, without limitation, contingent liabilities
(after giving effect to all other fixed and contingent liabilities incurred or
assumed on such date), but excluding liabilities under the Note Guarantee, of
such Guarantor at such date and (y) the present fair salable value of the
assets of such Subsidiary Guarantor at such date exceeds the amount that will
be required to pay the probable liability of such Subsidiary Guarantor on its
debts (after giving effect to all other fixed and contingent liabilities incurred
or assumed on such date and after giving effect to any collection from any
Subsidiary of such Subsidiary Guarantor in respect of the obligations of such
Subsidiary under the Note Guarantee of such Subsidiary Guarantor), excluding
debt in respect of its Note Guarantee of such Subsidiary Guarantor), excluding
debt in respect of its Note Guarantee, as they become absolute and matured.

 

Each Subsidiary Guarantor hereby waives diligence,
presentment, demand of payment, filing of claims with a court in the event of
merger or bankruptcy of the Company, any right to require a proceeding first
against the Company, the benefit of discussion, protest or notice with respect
to any such Note or the debt evidenced thereby and all demands whatsoever
(except as specified above), and covenants that this Note Guarantee will not be
discharged as to any such Note except by payment in full of the principal
thereof and interest thereon and as provided in Sections 8.01,  8.02 and 8.03. In the event of any
declaration of acceleration of such obligations as provided in Article Six,
such obligations (whether or not due and payable) shall forthwith become due
and payable by each Subsidiary Guarantor for the purposes of this Article Ten.  In addition, without limiting the foregoing
provisions, upon the effectiveness of an acceleration under Article Six,
the Trustee shall promptly make a demand for payment on the Notes under the
Note Guarantee provided for in this Article Ten.

 

54

 

The obligations of each Subsidiary Guarantor under its
Note Guarantee are independent of the obligations Guaranteed by the Subsidiary
Guarantor hereunder, and a separate action or actions may be brought and
prosecuted by the Trustee on behalf of, or by, the Holders, subject to the
terms and conditions set forth in this Indenture, against any Subsidiary
Guarantor to enforce this Note Guarantee, irrespective of whether any action is
brought against the Company or whether the Company is joined in any such action
or actions.

 

If the Trustee or the Holder is required by any court
or otherwise to return to the Company or any Subsidiary Guarantor, or any
custodian, receiver, liquidator, trustee, sequestrator or other similar
official acting in relation to Company or any Subsidiary Guarantor, any amount
paid to the Trustee or such Holder in respect of a Note, this Note Guarantee,
to the extent theretofore discharged, shall be reinstated in full force and
effect.  Each Subsidiary Guarantor
further agrees, to the fullest extent that it may lawfully do so, that, as
between it, on the one hand, and the Holders and the Trustee, on the other
hand, the maturity of the obligations Guaranteed hereby may be accelerated as
provided in Article Six hereof for the purposes of this Note Guarantee,
notwithstanding any stay, injunction or other prohibition extant under any
applicable bankruptcy law preventing such acceleration in respect of the
obligations Guaranteed hereby.

 

Each Subsidiary Guarantor hereby irrevocably waives
any claim or other rights which it may now or hereafter acquire against the
Company or any other Subsidiary Guarantor that arise from the existence,
payment, performance or enforcement of its obligations under this Note
Guarantee and this Indenture, including, without limitation, any right of
subrogation, reimbursement, exoneration, contribution, indemnification, any
right to participate in any claim or remedy of the Holders against the Company
or any Subsidiary Guarantor or any collateral which any such Holder or the
Trustee on behalf of such Holder hereafter acquires, whether or not such claim,
remedy or right arises in equity, or under contract, statute or common law,
including, without limitation, the right to take or receive from the Company or
a Subsidiary Guarantor, directly or indirectly, in cash or other property or by
set-off or in any other manner, payment or security on account of such claim or
other rights.  If any amount shall be
paid to a Subsidiary Guarantor in violation of the preceding sentence and the
principal of, premium, if any, and accrued interest on the Notes shall not have
been paid in full, such amount shall be deemed to have been paid to such
Subsidiary Guarantor for the benefit of, and held in trust for the benefit of,
the Holders, and shall forthwith be paid to the Trustee for the benefit of the
Holders to be credited and applied upon the principal of, premium, if any, and
accrued interest on the Notes.  Each
Subsidiary Guarantor acknowledges that it will receive direct and indirect benefits
from the issuance of the Notes pursuant to this Indenture and that the waivers
set forth in this Section 10.01 are knowingly made in contemplation of
such benefits.

 

The Note Guarantee set forth in this Section 10.01
shall not be valid or become obligatory for any purpose with respect to a Note
until the certificate of authentication on such Note shall have been signed by
or on behalf of the Trustee.

 

SECTION 10.02.    Obligations Unconditional. 
Nothing contained in this Article Ten or elsewhere in this Indenture
or in the Notes is intended to or shall impair, as among any Subsidiary
Guarantor and the holders of the Notes, the obligation of such Subsidiary
Guarantor, which is absolute and unconditional, upon failure by the Company to
pay to the 

 

55

 

holders of the Notes the principal of,
premium, if any, and interest on the Notes as and when the same shall become
due and payable in accordance with their terms, or is intended to or shall
affect the relative rights of the Holders and creditors of such Subsidiary
Guarantor, nor shall anything herein or therein prevent any Holder or the
Trustee on their behalf from exercising all remedies otherwise permitted by
applicable law upon default under this Indenture.

 

Without limiting the foregoing, nothing contained in
this Article Ten will restrict the right of the Trustee or the Holders to
take any action to declare the Note Guarantee to be due and payable prior to
the Stated Maturity of any Notes pursuant to Section 6.02 or to pursue any
rights or remedies hereunder.

 

SECTION 10.03.    Release of Note Guarantees.  The Note Guarantee of any Subsidiary
Guarantor will be automatically and unconditionally released and discharged
upon:

 

(i)            any sale, exchange
or transfer (including by way of merger or consolidation) to any Person (other
than an Affiliate of the Company) of all of the Capital Stock of such
Subsidiary Guarantor;

 

(ii)           the release or
discharge of the guarantee by such Subsidiary Guarantor of Indebtedness of the
Company or the repayment of the Indebtedness (or Attributable Debt) of such
Subsidiary Guarantor, in each case which resulted in the obligation to
Guarantee the Notes; provided that such Subsidiary Guarantor has not Guaranteed
any other Indebtedness of the Company or any Subsidiary Guarantor or incurred
or otherwise become liable for any other Indebtedness (or Attributable Debt)
which would have resulted in an obligation to Guarantee the Notes;.

 

(iii)          if
the Notes are rated Investment Grade by both Rating Agencies and no Default or
Event of Default shall have occurred and then be continuing; or

 

(iv)          if
the Notes are defeased in accordance with the terms of this Indenture.

 

SECTION 10.04.    Notice to Trustee. 
Each Subsidiary Guarantor shall give prompt written notice to the
Trustee of any fact known to such Subsidiary Guarantor which would prohibit the
making of any payment to or by the Trustee in respect of the Note Guarantee
pursuant to the provisions of this Article Ten.

 

SECTION 10.05.    This Article Not to Prevent Events of Default.  The failure to make a payment on account of
principal of, premium, if any, or interest on the Notes by reason of any
provision of this Article Ten will not be construed as preventing the
occurrence of an Event of Default.

 

ARTICLE
ELEVEN

MISCELLANEOUS

 

SECTION 11.01.    Trust Indenture Act of 1939.  Prior to the effectiveness of the
Registration Statement, this Indenture shall incorporate and be governed by the
provisions of the TIA that are required to be part of and to govern indentures
qualified under the TIA.  After the
effectiveness of the Registration Statement, this Indenture shall be subject to
the provisions 

 

56

 

of the TIA that are required to be a part of
this Indenture and shall, to the extent applicable, be governed by such
provisions.

 

SECTION 11.02.    Notices.  Any
notice, request or communication shall be sufficiently given if in writing and
delivered in person, mailed by first-class mail or sent by telecopier
transmission addressed as follows:

 

if to the Company:

 

Steel Dynamics, Inc.

6714 Pointe Inverness Way, Suite 200

Fort Wayne, Indiana 
46804

Telecopier No.: 
(219) 969-3590

 

Attention: 
Chief Financial Officer

 

if to the Trustee:

 

Wells Fargo Bank, National Association

230 West Monroe Street, Suite 2900

Chicago, IL 60606

Telecopier No.: 
(312) 726-2158 

 

Attention: 
Corporate Trust Services

 

The Company or the Trustee by notice to the other may
designate additional or different addresses for subsequent notices or communications.

 

Any notice or communication mailed to a Holder shall
be mailed to it at its address as it appears on the Security Register by
first-class mail and shall be sufficiently given to the Holder if so mailed
within the time prescribed.  Any notice
or communication shall also be so mailed to any Person described in TIA Section 313(c),
to the extent required by the TIA. 
Copies of any such communication or notice to a Holder shall also be
mailed to the Trustee and each Agent at the same time.

 

Failure to mail a notice or communication to a Holder
as provided herein or any defect in any such notice or communication shall not
affect its sufficiency with respect to other Holders.  Except for a notice to the Trustee, which is
deemed given only when received, and except as otherwise provided in this
Indenture, if a notice or communication is mailed in the manner provided in
this Section 11.02, it is duly given, whether or not the addressee
receives it.

 

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

 

57

 

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.

 

Holders may communicate pursuant to TIA Section 312(b) with
other Holders with respect to their rights under this Indenture or the
Notes.  The Company, the Trustee, the
Registrar and anyone else shall have the protection of TIA Section 312(c).

 

SECTION 11.03.    Certificate and Opinion as to Conditions Precedent.  Upon any request or application by the
Company to the Trustee to take any action under this Indenture, the Company
shall furnish to the Trustee:

 

(i)            an
Officers’ Certificate stating that, in the opinion of the signers, all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with; and

 

(ii)           an
Opinion of Counsel stating that, in the opinion of such Counsel, all such
conditions precedent have been complied with.

 

SECTION 11.04.    Statements Required in Certificate or
Opinion.   Each certificate or
opinion with respect to compliance with a condition or covenant provided for in
this Indenture shall include:

 

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

 

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

 

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

 

(iv)          a
statement as to whether or not, in the opinion of each such person, such
condition or covenant has been complied with; provided,
however, that, with respect to matters of fact, an Opinion of
Counsel may rely on an Officers’ Certificate or certificates of public
officials.

 

SECTION 11.05.    Rules by Trustee, Paying Agent or Registrar.  The Trustee may make reasonable rules for
action by or at a meeting of Holders. 
The Paying Agent or Registrar may make reasonable rules for its
functions.

 

SECTION 11.06.    Payment Date Other Than a Business Day.  If an Interest Payment Date, Redemption Date,
Payment Date, Stated Maturity or date of maturity of any Note shall not be a
Business Day, then payment of principal of, premium, if any, or interest on
such 

 

58

 

Note, as the case may be, need not be made on
such date, but may be made on the next succeeding Business Day with the same
force and effect as if made on the Interest Payment Date, Payment Date or
Redemption Date, or at the Stated Maturity or date of maturity of such Note; provided that no interest shall accrue for
the period from and after such Interest Payment Date, Payment Date, Redemption
Date, Stated Maturity or date of maturity, as the case may be.

 

SECTION 11.07.    Governing Law.  This
Indenture and the Notes shall be governed by the laws of the State of New
York.  The Trustee, the Company and the
Holders agree to submit to the jurisdiction of the courts of the State of New
York in any action or proceeding arising out of or relating to this Indenture
or the Notes.

 

SECTION 11.08.    No Adverse Interpretation of Other
Agreements.  This Indenture may not
be used to interpret another indenture, loan or debt agreement of the Company
or any Subsidiary of the Company.  Any
such indenture, loan or debt agreement may not be used to interpret this
Indenture.

 

SECTION 11.09.    No Recourse Against Others.  No recourse for the payment of the principal
of, premium, if any, or interest on any of the Notes, or for any claim based
thereon or otherwise in respect thereof, and no recourse under or upon any
obligation, covenant or agreement of the Company contained in this Indenture or
in any of the Notes, or because of the creation of any Indebtedness represented
thereby, shall be had against any incorporator or against any past, present or
future partner, stockholder, other equityholder, officer, director, employee or
controlling person, as such, of the Company or of any successor Person, either
directly or through the Company or any successor Person, whether by virtue of
any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise; it being expressly understood that all such
liability is hereby expressly waived and released as a condition of, and as a
consideration for, the execution of this Indenture and the issue of the Notes.

 

SECTION 11.10.    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 successor.

 

SECTION 11.11.    Duplicate Originals. 
The parties may sign any number of copies of this Indenture.  Each signed copy shall be an original, but
all of them together represent the same agreement.

 

SECTION 11.12.    Separability.   In
case any provision in this Indenture or in the Notes shall be invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

 

SECTION 11.13.    Table of Contents, Headings, Etc.  The Table of Contents, Cross-Reference Table
and headings of the Articles and Sections of this Indenture have been inserted
for convenience of reference only, are not to be considered a part hereof and
shall in no way modify or restrict any of the terms and provisions hereof.

 

SECTION 11.14.    Force
Majeure.  In no event shall the
Trustee be responsible or liable for any failure or delay in the performance of
its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, 

 

59

 

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 and hardware) services; it
being understood that the Trustee shall use reasonable efforts which are
consistent with accepted practices in the banking industry to resume
performance as soon as practicable under the circumstances.

 

60

 

SIGNATURES

 

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

 

	
   

  	
  STEEL DYNAMICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SDI INVESTMENT COMPANY

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Theresa E.
  Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  NEW MILLENNIUM BUILDING SYSTEMS, LLC

  
	
   

  	
   

  
	
   

  	
  By:Steel Dynamics, Inc., its sole member

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E.
  Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
  STEEL DYNAMICS SALES NORTH AMERICA, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E.
  Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
  ROANOKE ELECTRIC STEEL CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E.
  Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
  SHREDDED PRODUCTS, LLC

  
	
   

  	
   

  
	
   

  	
  By: ROANOKE ELECTRIC STEEL CORPORATION, MANAGER AND SOLE MEMBER

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E.
  Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
										

 

61

 

	
   

  	
  JOHN W. HANCOCK, JR., LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:  ROANOKE ELECTRIC STEEL
  CORPORATION, MANAGER AND SOLE MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E.
  Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NEW MILLENNIUM BUILDING SYSTEMS,

  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E.
  Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SOCAR OF OHIO, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E.
  Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  STEEL OF WEST VIRGINIA, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E.
  Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SWVA, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E.
  Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
  MARSHALL STEEL, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E.
  Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  STEEL VENTURES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E.
  Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
									

 

62

 

	
   

  	
   

  	
  SHREDDED PRODUCTS II, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:  STEEL DYNAMICS, INC.,
  MANAGER AND SOLE MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E.
  Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE TECHS INDUSTRIES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E.
  Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ADMETCO, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E.
  Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AUBURN INVESTMENT COMPANY, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:  OMNISOURCE CORPORATION,
  SOLE MEMBER

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E.
  Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CAPITOL CITY METALS, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:  OMNISOURCE CORPORATION,
  SOLE MEMBER

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E.
  Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CAROLINA INVESTMENT COMPANY, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:  OMNISOURCE CORPORATION,
  SOLE MEMBER

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E.
  Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
						

 

63

 

	
   

  	
  GLOBAL SHREDDING TECHNOLOGIES, LTD.,

  LLC

  
	
   

  	
   

  
	
   

  	
  By: OMNISOURCE CORPORATION, SOLE

  MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  INDUSTRIAL SCRAP CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  INDUSTRIAL SCRAP, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  JACKSON IRON & METAL COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  LUCKY STRIKE METALS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: OMNISOURCE CORPORATION, SOLE

  MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  MICHIGAN PROPERTIES ECORSE, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: OMNISOURCE CORPORATION, SOLE

  MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

64

 

	
   

  	
  OMNISOURCE BAY CITY, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: JACKSON IRON & METAL COMPANY,

  INC., SOLE MEMBER

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  OMNISOURCE ATHENS DIVISION, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: OMNISOURCE CORPORATION, SOLE

  MEMBER

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  OMNISOURCE CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  OMNISOURCE INDIANAPOLIS, LLC

  
	
   

  	
   

  
	
   

  	
  By: OMNISOURCE CORPORATION, SOLE

  MEMBER

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  OMNISOURCE MEXICO, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: OMNISOURCE CORPORATION, SOLE

  MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  OMNISOURCE TRANSPORT, LLC

  
	
   

  	
   

  
	
   

  	
  By: OMNISOURCE CORPORATION, SOLE

  MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

65

 

	
   

  	
  OMNISOURCE, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  RECOVERY TECHNOLOGIES, LLC

  
	
   

  	
   

  
	
   

  	
  By: OMNISOURCE CORPORATION, SOLE

  MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  SCIENTIFIC RECYCLING GROUP, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: OMNISOURCE CORPORATION, SOLE

  MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  SUPERIOR ALUMINUM ALLOYS, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

66

 

	
   

  	
  WELLS FARGO BANK, NATIONAL 

  ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory S. Clarke

  
	
   

  	
   

  	
  Name:

  	
  Gregory S. Clarke

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

67

 

EXHIBIT A

 

[APPLICABLE LEGENDS]

 

[FACE OF NOTE]

 

STEEL DYNAMICS, INC.

 

73⁄4% Senior Note due 2016

 

144A CUSIP:    
858119 AL4

144A ISIN:  US858119
AL46

 

REG S CUSIP:   
U85795 AE9

REG S ISIN: 
USU8579 AE98

	
  No.

  	
   

  	
  $

  

 

STEEL DYNAMICS, INC. an Indiana corporation (the “Company”,
which term includes any successor under the Indenture hereinafter referred to),
for value received, promises to pay to                             ,
or its registered assigns, the principal sum of
                        
($        ) on April 15, 2016.

 

Interest Payment Dates:  April 15 and October 15, commencing
October 15, 2008.

 

Regular Record Dates: 
April 1 and October 1.

 

SDI Investment Company, a Delaware corporation, Steel
Dynamics Sales North America, Inc., an Indiana corporation, New Millennium
Building Systems, LLC, an Indiana limited liability company, Roanoke Electric
Steel Corporation, an Indiana corporation, New Millennium Building Systems, Inc.,
a South Carolina corporation, Socar of Ohio, Inc., an Ohio corporation,
Shredded Products, LLC, a Virginia limited liability company, Shredded Products
II, LLC, an Indiana limited liability company, John W. Hancock, Jr., LLC,
a Virginia limited liability company, Steel of West Virginia, Inc., a
Delaware corporation, Steel Ventures, Inc., a Delaware corporation, SWVA, Inc.,
a Delaware corporation, Marshall Steel, Inc., a Delaware corporation, The
Techs Industries, Inc., a Delaware corporation, OmniSource Corporation, an
Indiana corporation, Admetco, Inc., an Indiana corporation, Auburn
Investment Company, LLC, an Indiana limited liability company, Capitol City
Metals, LLC, an Indiana limited liability company, Carolina Investment Company,
LLC, an Indiana limited liability company, Global Shredding Technologies, Ltd.,
LLC, an Indiana limited liability company, Industrial Scrap Corporation, an
Indiana corporation, Industrial Scrap, LLC, an Indiana limited liability
company, Jackson Iron & Metal Company, Inc., a Michigan
corporation, Lucky Strike Metals, LLC, an Indiana limited liability company,
Michigan Properties Ecorse, LLC, an Indiana limited liability company,
OmniSource Athens Division, LLC, an Indiana limited liability company,
OmniSource Bay City, LLC, an Indiana limited liability company, OmniSource
Indianapolis, LLC, an Indiana limited liability company, OmniSource, LLC, an
Indiana limited liability company, OmniSource Mexico, LLC, an Indiana limited
liability company, OmniSource Transport, LLC, an Indiana limited liability
company, Recovery Technologies, LLC, an Indiana limited liability company, 

 

A-1

 

Scientific Recycling
Group, LLC, an Indiana limited liability company, and Superior Aluminum Alloys,
LLC, an Indiana limited liability company and any future Subsidiary Guarantors
(collectively, the “Subsidiary Guarantors,” which term includes any
successors under the Indenture hereinafter referred to and any Restricted
Subsidiary that provides a Note Guarantee pursuant to the Indenture), has fully
and unconditionally guaranteed the payment of principal of premium, if any, and
interest on the Notes.

 

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

 

A-2

 

IN WITNESS WHEREOF, the Company has caused this Note
to be signed manually or by facsimile by its duly authorized officers.

 

	
   

  	
  STEEL DYNAMICS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name: 

  	
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  

 

 

(Trustee’s Certificate of Authentication)

 

This is one of the 73⁄4% Senior Notes due 2016 described
in the within-mentioned Indenture.

 

	
  Date:

  	
  WELLS FARGO BANK, NATIONAL

  ASSOCIATION

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signer

  

 

A-3

 

[REVERSE SIDE OF NOTE]

 

STEEL DYNAMICS, INC.

 

73⁄4% Senior Note due 2016

 

1.             Principal and Interest.

 

The Company will pay the principal of this Note on April 15,
2016.

 

The Company promises to pay interest on the principal
amount of this Note on each Interest Payment Date, as set forth below, at a
rate of 73⁄4% per annum, subject to increase as described below.

 

Interest will be payable semiannually (to the holders
of record of the Notes at the close of business on the April 1 or October 1
immediately preceding the Interest Payment Date) on each Interest Payment Date,
commencing October 15, 2008.

 

In certain circumstances, the Notes may be subject to
the payment of additional interest pursuant to the provisions of the
Registration Rights Agreement.

 

Interest on the Notes will accrue from the most recent
date to which interest has been paid or, if no interest has been paid, from April 3,
2008; provided that, if there is
no existing default in the payment of interest and this Note is authenticated
between a Regular Record Date referred to on the face hereof and the next succeeding
Interest Payment Date, interest shall accrue from such Interest Payment
Date.  Interest will be computed on the
basis of a 360-day year of twelve 30-day months.

 

The Company shall pay interest on overdue principal
and premium, if any, and interest on overdue installments of interest, to the
extent lawful, at a rate per annum that is 2% in excess of the rate otherwise
payable.

 

2.             Method of Payment.

 

The Company will pay interest (except defaulted
interest) on the principal amount of the Notes as provided above on each April 15
and October 15, commencing October 15, 2008 to the persons who are
Holders (as reflected in the Security Register at the close of business on the April 1
or October 1 immediately preceding the Interest Payment Date), in each case,
even if the Note is cancelled on registration of transfer or registration of
exchange after such record date; provided
that, with respect to the payment of principal, the Company will make payment
to the Holder that surrenders this Note to a Paying Agent on or after April 15,
2016.

 

This Note is a “book-entry” note and is being
registered in the name of Cede & Co. as nominee of The Depositary
Trust Company (“DTC”), a clearing agency. 
As long as this Note is registered in the name of DTC or its nominee,
the Trustee will make payments of principal, premium, if any, and interest on
this Note by wire transfer of immediately available funds to DTC or its
nominee.  With respect to any Note that
is not registered in the name of DTC or its nominee, the Company may pay
principal, premium, if any, and interest by its check 

 

A-4

 

payable in such money of
the United States that at the time of payment is legal tender for payment of
public and private debts.  It may mail an
interest check to a Holder’s registered address (as reflected in the Security
Register).  If a payment date is a date
other than a Business Day at a place of payment, payment may be made at that
place on the next succeeding day that is a Business Day and no interest shall
accrue for the intervening period.

 

The Notes may be exchanged or transferred at the
office or agency of the Company. 
Initially, the paying agent office of the Trustee will serve as such
office.

 

3.             Paying Agent and Registrar.

 

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

 

4.             Indenture; Limitations.

 

The Company issued the Notes under an Indenture dated
as of April 3, 2008 (the “Indenture”), among the Company, the
Initial Subsidiary Guarantors and Wells Fargo Bank, National Association, as
trustee (the “Trustee”). 
Capitalized terms herein are used as defined in the Indenture unless
otherwise indicated.  The terms of the
Notes include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act.  The Notes are subject to all such terms, and
Holders are referred to the Indenture and the Trust Indenture Act for a
statement of all such terms.  To the
extent permitted by applicable law, in the event of any inconsistency between
the terms of this Note and the terms of the Indenture, the terms of the
Indenture shall control.

 

The Notes are general unsecured obligations of the
Company.

 

The Company may, subject to and applicable law, issue
additional Notes under the Indenture. 
The Indenture does not limit the amount of Notes that may be issued.

 

5.             Optional Redemption.

 

The Notes are redeemable, at the Company’s option, in
whole or in part, at any time or from time to time, on or after April 15,
2012 and prior to maturity, upon not less than 30 nor more than 60 days’ prior
notice mailed by first-class mail to each Holder’s last address, as it appears
in the Security Register, at the following Redemption Prices (expressed in
percentages of principal amount), plus accrued and unpaid interest to the
Redemption Date (subject to the right of Holders of record on the relevant
Regular Record Date that is prior to the Redemption Date to receive interest
due on an Interest Payment Date), if redeemed during the 12-month period
commencing April 1 of the years set forth below:

 

	
   

  	
   

  	
  Redemption

  	
   

  
	
  Year

  	
   

  	
  Price

  	
   

  
	
  2012

  	
   

  	
  103.875

  	
  %

  
	
  2013

  	
   

  	
  101.938

  	
  %

  
	
  2014 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

A-5

 

In addition, at any time prior to April 15, 2011,
the Company may redeem up to 35% of the aggregate principal amount of the Notes
with the Net Cash Proceeds of one or more sales of common stock of the Company
at a Redemption Price (expressed as a percentage of principal amount) of
107.750%, plus accrued and unpaid interest to the Redemption Date (subject to
the rights of Holders of record on the relevant Regular Record Date that is
prior to the Redemption Date to receive interest due on an Interest Payment
Date); provided that (i) at
least 65% of the aggregate principal amount of Notes originally issued on the
Closing Date remains outstanding after each such redemption and (ii) notice
of such redemption is mailed within 60 days after such sale of common stock.

 

Notes in original denominations larger than $2,000 may
be redeemed in part.  On and after the
Redemption Date, interest ceases to accrue on Notes or portions of Notes called
for redemption, unless the Company defaults in the payment of the Redemption
Price.

 

6.             Repurchase upon Change of Control.

 

Upon the occurrence of any Change of Control, each
Holder shall have the right to require the repurchase of its Notes by the
Company in cash pursuant to the offer described in the Indenture at a purchase
price equal to 101% of the principal amount thereof plus accrued and unpaid
interest, if any, to the date of purchase (the “Payment Date”).

 

A notice of such Change of Control will be mailed
within 30 days after any Change of Control occurs to each Holder at its last
address as it appears in the Security Register. 
Notes in original denominations larger than $2,000 may be sold to the
Company in part.  On and after the
Payment Date, interest ceases to accrue on Notes or portions of Notes
surrendered for purchase by the Company, unless the Company defaults in the
payment of the purchase price.

 

7.             Denominations; Transfer;
Exchange.

 

The Notes are in registered form without coupons in
denominations of $2,000 of principal amount and multiples of $1,000 in excess
thereof.  A Holder may register the
transfer or exchange of Notes in accordance with the Indenture.  The Registrar may require a Holder, among
other things, to furnish appropriate endorsements and transfer documents and to
pay any taxes and fees required by law or permitted by the Indenture.  The Registrar need not register the transfer
or exchange of any Notes selected for redemption.  Also, it need not register the transfer or
exchange of any Notes for a period of 15 days before the day of mailing of a
notice of redemption of Notes selected for redemption.

 

8.             Persons Deemed Owners.

 

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

 

9.             Unclaimed Money.

 

Subject to any applicable escheat and abandoned
property laws, if money for the payment of principal, premium, if any, or
interest remains unclaimed for two years, the Trustee 

 

A-6

 

and the Paying Agent will
pay the money back to the Company at its request.  After that, Holders entitled to the money
must look to the Company for payment, unless an abandoned property law
designates another Person, and all liability of the Trustee and such Paying
Agent with respect to such money shall cease.

 

10.           Discharge Prior to Redemption or
Maturity.

 

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

 

11.           Amendment; Supplement; Waiver.

 

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

 

12.           Restrictive Covenants.

 

The Indenture imposes certain limitations on the
ability of the Company and its Restricted Subsidiaries, among other things,
suffer to exist or incur Liens, enter into sale-leaseback transactions, or
merge, consolidate or transfer substantially all of its assets.  Within 90 days after the end of the last
fiscal quarter of each year, the Company shall deliver to the Trustee an
Officers’ Certificate stating whether or not the signers thereof know of any
Default or Event of Default under such restrictive covenants.

 

13.           Successor Persons.

 

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

 

14.           Defaults and Remedies.

 

Any of the following events constitutes an “Event
of Default” under the Indenture:

 

default in the payment of
principal of (or premium, if any, on) any Note when the same becomes due and
payable at maturity, upon acceleration, redemption or otherwise;

 

A-7

 

default in the payment of
interest on any Note when the same becomes due and payable, and such default
continues for a period of 30 days;

 

(1) the Company defaults in
the performance of or breaches any other covenant or agreement in the Indenture
or under the Notes (other than a default specified in clause (a) or (b) above
and other than a default related to the obligations of the Company under Section 4.11
of the Indenture) and such default or breach continues for a period of 30
consecutive days after written notice by the Trustee or the Holders of 25% or
more in aggregate principal amount of the Notes and (2) the Company
defaults in the performance of or breaches its obligations under section 4.11
of the Indenture and such default or breach continues for a period of 90
consecutive days after written notice by the Trustee or the Holders of 25% or
more in aggregate principal amount of the Notes;

 

there occurs with respect to any
issue or issues of Indebtedness of the Company, any Subsidiary Guarantor or any
Significant Subsidiary having an outstanding principal amount of $75 million or
more in the aggregate for all such issues of all such Persons, whether such
Indebtedness now exists or shall hereafter be created, (A) an event of
default that has caused the holder thereof to declare such Indebtedness to be
due and payable prior to its Stated Maturity and such Indebtedness has not been
discharged in full or such acceleration has not been rescinded or annulled
within 30 days of such acceleration and/or (B) the failure to make a
principal payment at the final (but not any interim) fixed maturity and such
defaulted payment shall not have been made, waived or extended within 30 days
of such payment default;

 

any final judgment or order (not
covered by insurance) for the payment of money in excess of $75 million in the
aggregate for all such final judgments or orders against all such Persons
(treating any deductibles, self-insurance or retention as not so covered) shall
be rendered against the Company, any Subsidiary Guarantor or any Significant
Subsidiary and shall not be paid or discharged, and there shall be any period
of 60 consecutive days following entry of the final judgment or order that
causes the aggregate amount for all such final judgments or orders outstanding
and not paid or discharged against all such Persons to exceed $75 million
during which a stay of enforcement of such final judgment or order, by reason
of a pending appeal or otherwise, shall not be in effect;

 

a court having jurisdiction in
the premises enters a decree or order for (A) relief in respect of the
Company, any Subsidiary Guarantor or any Significant Subsidiary in an
involuntary case under any applicable bankruptcy, insolvency or other similar
law now or hereafter in effect, (B) appointment of a receiver, liquidator,
assignee, custodian, trustee, sequestrator or similar official of the Company,
any Subsidiary Guarantor or any Significant Subsidiary or for all or
substantially all of the property and assets of the Company, any Subsidiary
Guarantor or any Significant Subsidiary or (C) the winding-up or
liquidation of the affairs of the Company, any Subsidiary Guarantor or any
Significant Subsidiary and, in each case, such decree or order shall remain unstayed
and in effect for a period of 60 consecutive days;

 

A-8

 

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

 

(h)           any
Subsidiary Guarantor repudiates its obligations under its Note Guarantee or,
except as permitted by the Indenture, any Note Guarantee is determined to be
unenforceable or invalid or shall for any reason cease to be in full force and
effect.

 

If an Event of Default, as defined in the Indenture,
occurs and is continuing, the Trustee may, and at the direction of the Holders
of at least 25% in aggregate principal amount of the Notes then outstanding
shall, declare all the Notes to be due and payable.  If a bankruptcy or insolvency default with
respect to the Company or any Subsidiary Guarantor occurs and is continuing,
the Notes automatically become due and payable. 
Holders may not enforce the Indenture or the Notes except as provided in
the Indenture.  The Trustee may require
indemnity satisfactory to it before it enforces the Indenture or the
Notes.  Subject to certain limitations,
Holders of at least a majority in principal amount of the Notes then outstanding
may direct the Trustee in its exercise of any trust or power.

 

15.           Guarantee.

 

The Company’s obligations
under the Notes are fully and unconditionally guaranteed, jointly and
severally, by the Subsidiary Guarantors.

 

16.           Trustee Dealings with the Company.

 

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

 

17.           No Recourse Against Others.

 

No incorporator or any past, present or future
partner, stockholder, other equityholder, officer, director, employee or
controlling person, as such, of the Company or of any successor Person shall
have any liability for any obligations of the Company under the Notes or the
Indenture or for any claim based on, in respect of or by reason of, such
obligations or their creation.  Each
Holder by accepting a Note waives and releases all such liability.  The waiver and release are part of the
consideration for the issuance of the Notes.

 

A-9

 

18.           Authentication.

 

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

 

19.           Abbreviations.

 

Customary abbreviations may be used in the name of a
Holder or an assignee, such as:  TEN COM
(= tenants in common), TEN ENT (= tenants by the entireties), JT TEN
(= joint tenants with right of survivorship and not as tenants in common),
CUST (= Custodian) and U/G/M/A (= Uniform Gifts to Minors Act).

 

20.           Governing Law.

 

THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

The Company will furnish a copy of the Indenture to
any Holder upon written request and without charge.  Requests may be made to Steel Dynamics, Inc.,
6714 Pointe Inverness Way, Suite 200, Fort Wayne, Indiana 46804;
Attention: Chief Financial Officer.

 

A-10

 

[FORM OF
TRANSFER NOTICE]

 

FOR VALUE RECEIVED the undersigned registered holder
hereby sell(s), assign(s) and transfer(s) unto

 

Insert Taxpayer Identification No.

 

 

Please print or typewrite name and address including
zip code of assignee

 

 

the within Note and all rights thereunder, hereby
irrevocably constituting and appointing                                                           
attorney to transfer said Note on the books of the Company with full power of
substitution in the premises.

 

[THE FOLLOWING PROVISION TO BE INCLUDED ON ALL NOTES
OTHER THAN EXCHANGE NOTES, UNLEGENDED OFFSHORE GLOBAL NOTES AND UNLEGENDED
OFFSHORE PHYSICAL NOTES]

 

In connection with any transfer of this Note occurring
prior to the date which is the earlier of (i) the date the Note is
exchanged for an Exchange Note or sold in connection with an effective Shelf
Registration Statement pursuant to the Registration Rights Agreement or (ii) the
Private Placement Legend is removed from the Note pursuant to Section 2.02(ii) of
the Indenture, the undersigned confirms that without utilizing any general
solicitation or general advertising that:

 

[Check One]

 

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

 

or

 

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

 

A-11

 

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

 

	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

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

  

 

Signature must be guaranteed by a participant in a
recognized signature guaranty medallion program or other signature guarantor
acceptable to the Trustee.

 

TO BE COMPLETED BY PURCHASER IF (a) ABOVE IS CHECKED.

 

The undersigned represents and warrants that it is
purchasing this Note for its own account or an account with respect to which it
exercises sole investment discretion and that it and any such account is a “qualified
institutional buyer” within the meaning of Rule 144A under the Securities
Act of 1933 and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as
the undersigned has requested pursuant to Rule 144A or has determined not
to request such information and that it is aware that the transferor is relying
upon the undersigned’s foregoing representations in order to claim the exemption
from registration provided by Rule 144A.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NOTICE: To be executed by an executive officer

  

 

A-12

 

OPTION OF HOLDER
TO ELECT PURCHASE

 

If you wish to have this Note purchased by the Company
pursuant to Section 4.05 of the Indenture, check the Box:  :

 

If you wish to have a portion of this Note purchased
by the Company pursuant to Section 4.05 of the Indenture, state the
principal amount: 
$                                      .

 

Date:

 

	
  Your Signature:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

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

  	
   

  

 

	
  Signature Guarantee:

  	
   

  	
   

  	
   

  

 

Signature must be guaranteed by a participant in a
recognized signature guaranty medallion program or other signature guarantor
acceptable to the Trustee.

 

A-13

 

[include for Global
Notes]

 

SCHEDULE OF INCREASES OR
DECREASES IN GLOBAL NOTE

 

The following increases
or decreases in this Global Note have been made:

 

	
  Date

  	
   

  	
  Amount of

  decreases in

  principal amount

  	
   

  	
  Amount of

  increases in

  principal amount

  	
   

  	
  Principal amount

  of this Global

  Note following

  such decrease or

  increase

  	
   

  	
  Signature of

  authorized officer of

  Trustee or Notes

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-14

 

EXHIBIT B

 

Form of
Certificate

 

                ,

 

Wells Fargo Bank, National Association

230 West Monroe Street, Suite 2900

Chicago, IL 60606

Attention: Corporate Trust Services

 

Re:  Steel Dynamics, Inc. (the “Company”)

	
   

  	
  73⁄4% Senior Notes due
  2016 (the “Notes”)

  

 

Dear Sirs:

 

This letter relates to
U.S. $              
 principal amount of Notes represented by
a Note (the “Legended Note”) which bears a legend outlining restrictions
upon transfer of such Legended Note. 
Pursuant to Section 2.02 of the Indenture dated as of April 3,
2008 (the “Indenture”) relating to the Notes, we hereby certify that we
are (or we will hold such securities on behalf of) a person outside the United
States to whom the Notes could be transferred in accordance with Rule 904
of Regulation S promulgated under the U.S. Securities Act of 1933.  Accordingly, you are hereby requested to
exchange the legended certificate for an unlegended certificate representing an
identical principal amount of Notes, all in the manner provided for in the
Indenture.

 

You and the Company are
entitled to rely upon this letter and are irrevocably authorized to produce
this letter or a copy hereof to any interested party in any administrative or
legal proceedings or official inquiry with respect to the matters covered
hereby.  Terms used in this certificate
have the meanings set forth in Regulation S.

 

	
   

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Name of Holder]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signature

  

 

B-1

 

EXHIBIT C

 

Form of
Certificate to Be

Delivered in
Connection with

Transfers to
Non-QIB Accredited Investors

 

The Bank of New York
Trust Company, N.A.

230 West Monroe Street, Suite 2900

Chicago, IL 60606

Attention:  Corporate Trust Services

 

Re:  Steel Dynamics, Inc. (the “Company”)

	
   

  	
  73⁄4% Senior Notes due
  2016 (the “Notes”)

  

 

Dear Sirs:

 

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

 

1.  We
understand that any subsequent transfer of the Notes is subject to certain
restrictions and conditions set forth in the Indenture dated as of April 3,
2008 (the “Indenture”) relating to the Notes and the undersigned agrees
to be bound by, and not to resell, pledge or otherwise transfer the Notes
except in compliance with such restrictions and conditions and the Securities
Act of 1933, as amended (the “Securities Act”).

 

2.  We
understand that the offer and sale of the Notes have not been registered under
the Securities Act, and that the Notes may not be offered or sold except as
permitted in the following sentence.  We
agree, on our own behalf and on behalf of any accounts for which we are acting
as hereinafter stated, that if we should sell any Notes, we will do so only (A) to
the Company or any subsidiary thereof, (B) in accordance with Rule 144A
under the Securities Act to a “qualified institutional buyer” (as defined
therein), (C) to an institutional “accredited investor” (as defined below)
that, prior to such transfer, furnishes (or has furnished on its behalf by a
U.S. broker-dealer) to you and to the Company a signed letter substantially in
the form of this letter and, if such transfer is in respect of an aggregate
principal amount of less than $100,000, an opinion of counsel acceptable to the
Company that such transfer is in compliance with the Securities Act, (D) outside
the United States in accordance with Rule 904 of Regulation S under the
Securities Act, (E) pursuant to the exemption from registration provided
by Rule 144 under the Securities Act (if available) or (F) pursuant
to an effective registration statement under the Securities Act, and we further
agree to provide to any person purchasing any of the Notes from us a notice
advising such purchaser that resales of the Notes are restricted as stated
herein.

 

3.  We
understand that, on any proposed resale of any Notes, we will be required to
furnish to you and the Company such certifications, legal opinions and other
information as you and the Company may reasonably require to confirm that the
proposed sale complies with 

 

C-1

 

the foregoing
restrictions.  We further understand that
the Notes purchased by us will bear a legend to the foregoing effect.

 

4.  We are an
institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) of Regulation D under the Securities Act) and have such knowledge and
experience in financial and business matters as to be capable of evaluating the
merits and risks of our investment in the Notes, and we and any accounts for
which we are acting are each able to bear the economic risk of our or its
investment.

 

5.  We are
acquiring the Notes purchased by us for our own account or for one or more
accounts (each of which is an institutional “accredited investor”) as to
each of which we exercise sole investment discretion.

 

You and the Company are entitled to rely upon this
letter and are irrevocably authorized to produce this letter or a copy hereof
to any interested party in any administrative or legal proceedings or official
inquiry with respect to the matters covered hereby.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [Name of Transferee]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  

 

C-2

 

EXHIBIT D

 

Form of Certificate to Be Delivered in

Connection with Transfers Pursuant to Regulation S

 

            ,

 

Wells Fargo Bank,
National Association

230 West Monroe Street, Suite 2900

Chicago, IL 60606

Attention:  Corporate Trust
Services

 

Re:  Steel Dynamics, Inc. (the “Company”)

	
   

  	
  73⁄4% Senior Notes due
  2016 (the “Notes”)

  

 

Dear Sirs:

 

In connection with our proposed sale of U.S.$                  
aggregate principal amount of the Notes, we confirm that such sale has been
effected pursuant to and in accordance with Regulation S under the Securities
Act of 1933 and, accordingly, we represent that:

 

(1)  the offer of the Notes was not made to a
person in the United States;

 

(2)  at the time the buy order was originated,
the transferee was outside the United States or we and any person acting on our
behalf reasonably believed that the transferee was outside the United States;

 

(3)  no directed selling efforts have been made
by us in the United States in contravention of the requirements of Rule 903(b) or
Rule 904(b) of Regulation S, as applicable; and

 

(4)  the transaction is not part of a plan or
scheme to evade the registration requirements of the U.S. Securities Act of
1933.

 

You and the Company are entitled to rely upon this
letter and are irrevocably authorized to produce this letter or a copy hereof
to any interested party in any administrative or legal proceedings or official
inquiry with respect to the matters covered hereby.  Terms used in this certificate have the
meanings set forth in Regulation S.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [Name of Transferor]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  

 

D-1EXHIBIT
10.1

 

SEVERANCE AGREEMENT

 

This SEVERANCE
AGREEMENT (this “Agreement”)
is entered into as of the 4th day of April, 2008 (the “Effective
Date”), by and between Force Protection, Inc., a Nevada
corporation (the “Company”),
and Damon Walsh (“Executive”).

 

W I T N E S S E T H:

 

WHEREAS, the
Executive currently serves as a key employee of the Company and the Executive’s
services and knowledge are valuable to the Company in connection with the
management of one or more of the Company’s principal operating facilities,
divisions, departments or Subsidiaries (as defined in Section 1);

 

WHEREAS, the
Board (as defined in Section 1) has determined that it is in the
best interests of the Company and its stockholders to improve upon the existing
severance protections for its key employees and to provide an additional
inducement to secure the Executive’s continued services and, in the event of
any threat or occurrence of, or negotiation or other action that could lead to,
or create the possibility of, a Change in Control (as defined in Section 1)
of the Company, to ensure the Executive’s continued and undivided dedication to
the Executive’s duties when faced with the possibility of  Change in Control; and

 

WHEREAS, the
Board has authorized the Company to enter into this Agreement.

 

NOW, THEREFORE,
for and in consideration of the promises and the mutual covenants and
agreements herein contained, the Company and the Executive hereby agree as
follows:

 

1.             Definitions.  As
used in this Agreement, the following terms shall have the respective meanings
set forth below:

 

(a)           “Board”
means the Board of Directors of the Company.

 

(b)           “Cause”
means (i) the Executive’s material breach of the Executive’s duties and
responsibilities (other than as a result of the Executive’s Disability) which
is (x) demonstrably willful and deliberate on the Executive’s part, (y) committed
in bad faith or without reasonable belief that such breach is in the best
interests of the Company and (z) not remedied within ten (10) days
after receipt of written notice from the Company specifying such breach; (ii) the
Executive’s indictment for, conviction of, or plea of nolo
contendere to, a felony; or (iii) the Executive’s gross
negligence or any act of theft, fraud, misappropriation, malfeasance or
dishonesty by the Executive in connection with the performance of the Executive’s
duties to the Company which is demonstrably willful and deliberate on the
Executive’s part.

 

Cause shall not exist unless and until the Company has
delivered to the Executive a copy of a resolution duly adopted by a majority of
the entire Board at any duly called meeting of the Board (after reasonable
notice to the Executive and an opportunity for the Executive, together with
counsel, to be heard before the Board), finding that in the good faith opinion
of the Board an event set forth in clauses (i), (ii) or (iii) has
occurred and specifying the particulars thereof in detail.

 

The Company must notify the Executive of any event
constituting Cause (in accordance with the provisions of Section 14(b))
within ninety (90) days following the Board’s (excluding, if applicable, the
Executive) knowledge of its existence or such event shall not constitute Cause
under this Agreement.

 

(c)           “Change in
Control” means the occurrence of any one of the following
events:

 

 

(i)            any “person” (as such
term is defined in Section 3(a)(9) of the Securities Exchange Act of
1934 (the “Exchange
Act”) and as used in Sections 13(d)(3) and
14(d)(2) of the Exchange Act) is or becomes a “beneficial owner” (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing 35% or more of the combined voting power
of the Company’s then outstanding securities eligible to vote for the election
of the Board (the “Company
Voting Securities”); provided, however,
that the event described in this paragraph (i) shall not be deemed to be a
Change in Control by virtue of any of the following acquisitions:  (A) by the Company or any Subsidiary; (B) by
any employee benefit plan (or related trust) sponsored or maintained by the
Company or any Subsidiary; (C) by any underwriter temporarily holding
securities pursuant to an offering of such securities; (D) pursuant to a
Non-Control Transaction (as defined in paragraph (iii) below); or (E) a
transaction (other than one described in paragraph (iii) below) in which
Company Voting Securities are acquired from the Company, if a majority of the
Incumbent Board (as defined in paragraph (ii) below) approves a resolution
providing expressly that the acquisition pursuant to this clause (E) does
not constitute a Change in Control under this paragraph (i);

 

(ii)           individuals who, on February 29,
2008, constitute the Board (the “Incumbent Board”)
cease for any reason to constitute at least a majority thereof, provided that
any person becoming a director subsequent to February 29, 2008, whose
election or nomination for election was approved by a vote of at least
two-thirds of the directors comprising the Incumbent Board (either by a
specific vote or by approval of the proxy statement of the Company in which
such person is named as a nominee for director, without objection to such
nomination) shall be considered a member of the Incumbent Board; provided,
however, that no individual initially elected or nominated as a director
of the Company as a result of an actual or threatened election contest with
respect to directors or any other actual or threatened solicitation of proxies
or consents by or on behalf of any person other than the Board shall be deemed
to be a member of the Incumbent Board;

 

(iii)          the consummation of a
merger, consolidation, share exchange or similar form of corporate transaction
involving the Company or any of its Subsidiaries that requires the approval of
the Company’s stockholders (whether for such transaction or the issuance of
securities in the transaction or otherwise) (a “Reorganization”),
unless immediately following such Reorganization:  (A) more than 60% of the total voting
power of (x) the corporation resulting from such Reorganization (the “Surviving Company”), or (y) if
applicable, the ultimate parent corporation that directly or indirectly has
beneficial ownership of 95% of the voting securities eligible to elect
directors of the Surviving Company (the “Parent Company”),
is represented by Company Voting Securities that were outstanding immediately
prior to such Reorganization (or, if applicable, is represented by shares into
which such Company Voting Securities were converted pursuant to such
Reorganization), and such voting power among the holders thereof is in
substantially the same proportion as the voting power of such Company Voting
Securities among holders thereof immediately prior to the Reorganization; (B) no
person (other than any employee benefit plan (or related trust) sponsored or
maintained by the Surviving Company or the Parent Company) is or becomes the
beneficial owner, directly or indirectly, of 35% or more of the total voting
power of the outstanding voting securities eligible to elect directors of the
Parent Company (or, if there is no Parent Company, the Surviving Company); and (C) at
least a majority of the members of the board of directors of the Parent Company
(or, if there is no Parent Company, the Surviving Company) following the
consummation of the Reorganization were members of the Incumbent Board at the
time of the Board’s approval of the execution of the initial agreement
providing for such Reorganization (any Reorganization which satisfies all of
the criteria specified in (A), (B) and (C) above shall be deemed to
be a “Non-Control
Transaction”);

 

(iv)          the stockholders of the
Company approve a plan of complete liquidation or dissolution; or

 

2

 

(v)           the consummation of a
sale (or series of sales) of all or substantially all of the assets of the
Company and its Subsidiaries to an entity that is not an affiliate of the
Company.

 

Notwithstanding the
foregoing, a Change in Control shall not be deemed to occur solely because any
person acquires beneficial ownership of 35% or more of the Company Voting
Securities as a result of the acquisition of Company Voting Securities by the
Company which reduces the number of Company Voting Securities outstanding;
provided, that, if after such acquisition by the Company such person becomes
the beneficial owner of additional Company Voting Securities that increases the
percentage of outstanding Company Voting Securities beneficially owned by such
person, a Change in Control shall then occur.

 

(d)           “Change in Control Termination Period”
means the period of time beginning with a Change in Control and ending at the
end of the Window Period.

 

(e)           “Date of Termination” means (i) the
effective date on which the Executive’s employment with the Company terminates,
as specified in a prior written notice by the Company or the Executive, as the
case may be, to the other, delivered pursuant to Section 14, or (ii) if
the Executive’s employment with the Company terminates by reason of death, the
date of death of the Executive.

 

(f)            “Disability” means the Executive’s
incapacity due to physical or mental illness, as evidenced by a written
statement from a licensed physician acceptable to the Company or by the
insurance company which insures the Company’s long-term disability plan in
which the Executive is eligible to participate which confirms the Executive’s
inability to perform due to such physical or mental illness.

 

(g)           “Good
Reason” means, without the Executive’s express written consent,
the occurrence of any of the following events following a Change in Control:

 

(i)            (A) any change in
the authority, duties or responsibilities that is inconsistent in any material
and adverse respect with the Executive’s authority, position(s), duties,
responsibilities or status with the Company immediately prior to such Change in
Control (including any material and adverse diminution of such duties or
responsibilities) or (B) a material and adverse change in the Executive’s
reporting responsibilities, titles or offices with the Company as in effect
immediately prior to such Change in Control;

 

(ii)           a material reduction by
the Company in the Executive’s rate of annual base salary or annual target
bonus opportunity (including any material and adverse change in the formula for
such annual bonus target) as in effect immediately prior to such Change in
Control or as the same may be increased from time to time thereafter;

 

(iii)          any requirement of the
Company that the Executive be based anywhere more than fifty (50) miles from
the place of business where the Executive is located at the time of the Change
in Control;

 

(iv)          the failure of the
Company to continue in effect any employee benefit plan or compensation plan in
which the Executive is participating immediately prior to such Change in
Control and which is material to the Executive’s overall compensation, unless
the Executive is permitted to participate in other plans providing the
Executive with benefits or compensation which are not materially less, or the
taking of any action by the Company which would materially and adversely affect
the Executive’s participation in or materially and adversely reduce the
Executive’s benefits under any such plan; or

 

(v)           a material breach by
the Company of this Agreement or any other material agreement in effect between
the Executive and the Company.

 

3

 

Any event described in this Section 1(g) which occurs
prior to a Change in Control, but was at the request of a third party who had
indicated an intention or taken steps reasonably calculated to effect a Change
in Control and who effectuates a Change in Control, shall constitute Good
Reason following a Change in Control for purposes of this Agreement (treating
the date of such event as the date of the Change in Control) notwithstanding that
it occurred prior to the Change in Control. 
For purposes of this Agreement, any good faith determination of Good
Reason made by the Executive shall be conclusive; provided, however,
that an isolated, insubstantial and inadvertent action taken in good faith and
which is remedied by the Company promptly after receipt of notice thereof given
by the Executive shall not constitute Good Reason.  The Executive must provide notice of
termination of employment (in accordance with the provisions of Section 14(b))
within ninety (90) days of the Executive’s knowledge of an event constituting
Good Reason or such event shall not constitute Good Reason under this
Agreement.  The Company shall have thirty
(30) days following its receipt of a notice of termination of employment from
the Executive to remedy the condition the Executive claimed to provide a basis
for such termination in the notice of termination.

 

(h)           “Nonqualifying
Termination” means a termination of the Executive’s employment (i) by
the Company for Cause, (ii) by the Executive for any reason other than (x) for
Good Reason during the Change in Control Termination Period or (y) for any
reason during the Window Period, (iii) as a result of the Executive’s
death, or (iv) by the Company due to the Executive’s absence from the
Executive’s duties with the Company on a full-time basis for at least one
hundred thirty (130) business days during any consecutive twelve month period
as a result of the Executive’s Disability.

 

(i)            “Subsidiary”
means any corporation
or other entity in which the Company has a direct or indirect ownership
interest of 50% or more of the total combined voting power of the then
outstanding securities or interests of such corporation or other entity
entitled to vote generally in the election of directors or in which the Company
has the right to receive 50% or more of the distribution of profits or 50% of
the assets on liquidation or dissolution.

 

(j)            “Window
Period” means the thirty (30) day period immediately following
the six (6) month anniversary of a Change in Control.

 

2.             Obligations of the Executive.  The
Executive agrees that if a Change in Control shall occur, the Executive shall
not voluntarily leave the employ of the Company without Good Reason until
ninety (90) days following such Change in Control.

 

3.             Severance Payments. 
Except as otherwise provided in Section 4 and subject to Section 6
and Section 19, if the Executive’s employment with the Company is
terminated other than by reason of a Nonqualifying Termination, then the
Company shall pay or provide the Executive (or the Executive’s beneficiary or
estate) with the following payments or benefits:

 

(a)           a lump-sum cash amount
within thirty (30) days following the Date of Termination equal to the sum of: (i) the
Executive’s base salary through the Date of Termination, and any accrued
vacation, in each case to the extent not theretofore paid; (ii) any unpaid
bonus accrued with respect to the fiscal year ending on or preceding the Date
of Termination; and (iii) subject to presentment of appropriate
documentation, any unreimbursed expenses incurred through the Date of
Termination in accordance with Company policy (collectively, the “Accrued Amounts”);

 

(b)           a lump-sum cash amount
within the calendar year next following the calendar year during which the Date
of Termination occurs equal to the product of (i) the annual bonus the
Executive would have been paid based on the achievement of actual performance
goals and (ii) a fraction, the numerator of which is the number of days in
the fiscal year in which the Date of Termination occurs through the Date of
Termination and the denominator of which is three hundred sixty-five (365) (the
“Pro-Rata Bonus”);

 

4

 

(c)           a lump-sum cash amount
within thirty (30) days following the Date of Termination equal to one times
the sum of (A) the Executive’s annual base salary and (B) the
greatest of (1) the Executive’s target bonus for the fiscal year in which
the Executive’s Date of Termination occurs and (2) the average of the
actual bonuses earned by the Executive in respect of the two (2) preceding
fiscal years of the Company immediately preceding the fiscal year in which the
Date of Termination occurs;

 

(d)           subject to (A) the
Executive’s timely election of continuation coverage under the Consolidated
Budget Omnibus Reconciliation Act of 1985, as amended (“COBRA”),
(B) the Executive’s continued co-payment of the employee portion of any
contribution or premium at the same level and cost to the Executive as if the
Executive were an employee of the Company (excluding, for purposes of
calculating cost, an employee’s ability to pay premiums with pre-tax dollars)
and (C) the Executive’s continued eligibility for COBRA continuation
coverage, the Company will pay for a period of up to twelve (12) months
following the Date of Termination the portion of the Executive’s COBRA premium
equivalent to what the Company would have paid if the Executive were an
employee of the Company.  Notwithstanding
the foregoing, in the event the Executive fails to pay any required
contribution or premium or becomes employed with another employer and becomes
eligible to receive substantially similar or improved medical, dental or vision
benefits from such employer (whether or not the Executive accepts such
benefits), the Company’s obligations under this Section 3(d) shall
immediately cease, except that the Company’s obligation to continue to make
available continuation coverage under COBRA at the full COBRA rates shall be
determined in accordance with COBRA.  The
Executive will notify the Company of the Executive’s eligibility for medical,
dental or vision benefits from a subsequent employer within thirty (30) days of
such eligibility; and

 

(e)           with respect to
outstanding equity awards held by the Executive as of the Date of Termination,
all stock options and stock appreciation rights that would become vested and
exercisable if the Executive had continued to be employed with the Company
during the twelve (12) month period commencing on the Date of Termination shall
vest and become exercisable and the restrictions on all restricted stock
awards, restricted stock units and other equity or incentive awards that would
have lapsed if the Executive had continued to be employed with the Company
during the twelve (12) month period commencing on the Date of Termination shall
lapse and such awards shall become immediately payable; and

 

(f)            all other payments,
benefits or fringe benefits to which the Executive shall be entitled under the
terms of any applicable compensation arrangement or benefit, equity or fringe
benefit plan or program or grant (the “Other Benefits”).

 

4.             Change in Control Severance
Payments.  If a Change in Control occurs and the
Executive’s employment with the Company is terminated (x) other than by reason
of a Nonqualifying Termination (1) during the Change in Control
Termination Period or (2) prior to the Change in Control Termination
Period and the Executive reasonably demonstrates that such termination was at
the request of a third party who had indicated an intention or taken steps
reasonably calculated to effect such Change in Control and who effectuates such
Change in Control (or such termination was otherwise in anticipation of such
Change in Control) or (y) by the Executive for any reason during the
Window Period, then, subject to Section 6 and Section 19
the Company shall pay or provide the Executive (or the Executive’s beneficiary
or estate) with the following payments or benefits:

 

(a)           a lump-sum cash amount
within thirty (30) days following the Date of Termination (or, if later, the
date of the Change in Control) equal to the sum of the Accrued Amounts;

 

(b)           a lump-sum cash amount
within the calendar year next following the calendar year during which the Date
of Termination occurs equal to the Pro-Rata Bonus;

 

(c)           a lump-sum cash amount
within thirty (30) days following the Date of Termination (or, if later, the
date of the Change in Control) equal to one and one-half times the sum of: (A) the
Executive’s 

 

5

 

highest rate of annual base salary during the 12-month
period prior to the Date of Termination; and (B) the greatest of (1) the
Executive’s target bonus for the fiscal year in which the Executive’s Date of
Termination occurs, (2) the Executive’s target bonus for the fiscal year
in which the Change in Control occurs and (3) the average of the actual
bonuses earned by the Executive in respect of the two (2) preceding fiscal
years of the Company immediately preceding the fiscal year in which the Change
in Control occurs;

 

(d)           COBRA continuation
coverage pursuant to Section 3(d), except that the Company will pay
the portion of the Executive’s COBRA premium equivalent to what the Company
would have paid if the Executive were an employee of the Company for a period
of up to eighteen (18) months following the Date of Termination instead of for
up to twelve (12) months;

 

(e)           with respect to
outstanding equity awards held by the Executive as of the Date of Termination,
all stock options and stock appreciation rights shall vest and become
exercisable and the restrictions on all restricted stock awards, restricted
stock units and other equity or incentive awards shall lapse and such awards
shall become immediately payable; and

 

(f)            the Other Benefits.

 

Notwithstanding anything
herein to the contrary, if the Executive becomes entitled to, and receives, payments and benefits pursuant to Section 3 and thereafter becomes entitled to payments
and benefits pursuant to this Section 4, payments and
benefits due under this Section 4 shall be reduced by any amounts
received pursuant to Section 3.

 

5.             Payments Upon Non-Qualifying
Termination of Employment.  If the Executive’s employment with the
Company shall terminate by reason of a Nonqualifying Termination, then the
Company shall pay to the Executive (or the Executive’s beneficiary or estate)
within thirty (30) days following the Date of Termination, a lump-sum cash
amount equal to the Accrued Amounts (other than the amount described in Section 3(a)(ii))
and provide the Other Benefits.

 

6.             Release Required; Resignations.  Any
amounts payable pursuant to this Agreement (other than Accrued Amounts and Other Benefits) shall only be payable if the Executive
executes and delivers to the Company (and does not revoke) a general release of
claims in a form substantially in the form of Exhibit A attached
hereto.  In addition, upon any
termination of the Executive’s employment with the Company, the Executive shall
promptly resign from any position as an officer, director or fiduciary of any
Company-related entity.

 

7.             Certain Additional Payments
by the Company.  (a)  Anything in this Agreement to the
contrary notwithstanding, in the event it shall be determined that any payment,
award, benefit or distribution (or any acceleration of any payment, award,
benefit or distribution) by the Company (or any of its affiliated entities) or
any entity which effectuates a Change in Control (or any of its affiliated
entities) to or for the benefit of the Executive (whether pursuant to the terms
of this Agreement or otherwise, but determined without regard to any additional
payments required under this Section 7) (a “Payment”) would be subject to the
excise tax imposed by Section 4999 of the Internal Revenue Code of 1986,
as amended (the “Code”), or
any interest or penalties are incurred by the Executive with respect to such
excise tax (such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the “Excise Tax”), then the Company shall pay the Executive an
additional payment (a “Gross-Up Payment”)
in an amount such that, after payment by the Executive of all taxes (including
any interest or penalties imposed with respect to such taxes) including,
without limitation, any income and employment taxes (and any interest and
penalties imposed with respect thereto) and any Excise Tax imposed upon the
Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal
to the Excise Tax imposed upon the Payments. 
For purposes of determining the amount of the Gross-Up Payment, the
Executive shall be deemed to (i) pay federal income taxes at the highest
marginal rates of federal income taxation for the calendar year in which the
Gross-Up Payment is to be made, and (ii) pay applicable state and local
income taxes at the highest marginal rate of taxation for the calendar year in
which the Gross-Up 

 

6

 

Payment is to be made, net of the maximum reduction
in federal income taxes which could be obtained from deduction of such state
and local taxes.

 

(b)           Subject to the
provisions of Section 7(a), all determinations required to be made
under this Section 7, including whether and when a Gross-Up Payment
is required and the amount of such Gross-Up Payment and the assumptions to be
utilized in arriving at such determinations, shall be made by the public
accounting firm that is retained by the Company as of the date immediately
prior to the Change in Control (the “Accounting Firm”)
which shall provide detailed supporting calculations both to the Company and
the Executive within fifteen (15) business days of the receipt of notice from
the Company or the Executive that there has been a Payment, or such earlier
time as is requested by the Company (collectively, the “Determination”).  Notwithstanding the foregoing, in the event (i) the
Board shall determine prior to the Change in Control that the Accounting Firm
is precluded from performing such services under applicable auditor
independence rules, (ii) the Audit Committee of the Board determines that
it does not want the Accounting Firm to perform such services because of
auditor independence concerns or (iii) the Accounting Firm is serving as
accountant or auditor for the individual, entity or group effecting the Change
in Control, the Board shall appoint another nationally recognized public
accounting firm to make the determinations required hereunder (which accounting
firm shall then be referred to as the Accounting Firm hereunder).  All fees and expenses of the Accounting Firm
shall be borne solely by the Company and the Company shall enter into any
agreement requested by the Accounting Firm in connection with the performance
of the services hereunder.  The Gross-Up
Payment under this Section 7 with respect to any Payments shall be
made no later than thirty (30) days following such Payment and, in no event,
later than the calendar year next following the calendar year in which the
Executive remits the taxes to which such Gross-Up Payment relates.  If the Accounting Firm determines that no
Excise Tax is payable by the Executive, it shall furnish the Executive with a
written opinion to such effect, and to the effect that failure to report the
Excise Tax, if any, on the Executive’s applicable federal income tax return
will not result in the imposition of a negligence or similar penalty.  The Determination by the Accounting Firm
shall be binding upon the Company and the Executive.  As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the Determination,
it is possible that Gross-Up Payments which will not have been made by the
Company should have been made (“Underpayment”)
or Gross-Up Payments are made by the Company which should not have been made (“Overpayment”), consistent with the
calculations required to be made hereunder. 
In the event that the Executive thereafter is required to make payment
of any additional Excise Tax, the Accounting Firm shall determine the amount of
the Underpayment that has occurred and any such Underpayment (together with
interest at the rate provided in Section 1274(b)(2)(B) of the Code)
shall be promptly paid by the Company to or for the benefit of the
Executive.  In the event the amount of
the Gross-Up Payment exceeds the amount necessary to reimburse the Executive
for the Executive’s Excise Tax, the Accounting Firm shall determine the amount
of the Overpayment that has been made and any such Overpayment (together with
interest at the rate provided in Section 1274(b)(2)(B) of the Code)
shall be promptly paid by the Executive to or for the benefit of the
Company.  The Executive shall cooperate,
to the extent the Executive’s expenses are reimbursed by the Company, with any
reasonable requests by the Company in connection with any contests or disputes
with the Internal Revenue Service in connection with the Excise Tax.

 

(c)           Nothing in this Section 7
is intended to violate the Sarbanes-Oxley Act and to the extent that any
advance hereunder would do so, such obligation shall be modified so as to make
the advance a nonrefundable payment to the Executive.

 

8.             Restrictive Covenants.

 

(a)           Non-Compete.  While employed by the Company and during the
twelve (12) month period after the Date of Termination (the “Restricted Period”), the Executive
shall not directly or indirectly (without the prior written consent of the
Company):

 

(i)            hold a 5% or greater
equity (including stock options whether or not exercisable), voting or profit
participation interest in a Competitive Enterprise, or

 

7

 

(ii)           associate (including as
an officer, employee, partner, consultant, agent or advisor) with a Competitive
Enterprise and in connection with the Executive’s association engage, or
directly or indirectly manage or supervise personnel engaged, in any activity:

 

(A)          that is substantially
related to any activity that the Executive was engaged in with the Company or
any of its affiliated entities during the twelve (12) months prior to the Date
of Termination (excluding as a director),

 

(B)           that is substantially
related to any activity for which the Executive had direct or indirect
managerial or supervisory responsibility with the Company or any of its
affiliated entities during the twelve (12) months prior to the Date of
Termination, or

 

(C)           that calls for the
application of specialized knowledge or skills substantially related to those
used by the Executive in the Executive’s activities with the Company or any of
its affiliated entities during the twelve (12) months prior to the Date of
Termination.

 

For purposes of this
Agreement, “Competitive Enterprise” means
any business enterprise anywhere worldwide that either (A) engages in the
manufacture and sale of blast- and ballistic- protected wheeled vehicles for
the US or foreign militaries or (B) holds a 5% or greater equity, voting
or profit participation interest in any enterprise that engages in such a
competitive activity.

 

(b)           Non-Solicit.  During the Restricted Period, the Executive
shall not, in any manner, directly or indirectly (without the prior written
consent of the Company):  (i) Solicit
any Client to transact business with a Competitive Enterprise or to reduce or
refrain from doing any business with the Company or any of its affiliated
entities, (ii) transact business with any Client that would cause the
Executive to be engaged in a Competitive Enterprise, (iii) interfere with
or damage any relationship between the Company or any of its affiliated
entities and a Client or (iv) Solicit anyone who is then an employee of
the Company or any of its affiliated entities to resign from the Company or
affiliated entity or to apply for or accept employment with any other business
or enterprise.

 

(c)           For purposes of this
Agreement, a “Client” means any client or
prospective client of the Company or any of its affiliated entities to whom the
Executive provided services, or for whom the Executive transacted business, or
whose identity became known to the Executive in connection with the Executive’s
relationship with or employment with the Company, and “Solicit”
means any direct or indirect communication of any kind, regardless of who
initiates it, that in any way invites, advises, encourages or requests any
person to take or refrain from taking any action.

 

(d)           Confidential
Information.  The
Executive hereby acknowledges that, as an employee of the Company, the
Executive will have access to confidential information of a special and unique
nature and value relating to the Company and its strategic plan and financial
operations.  The Executive further
recognizes and acknowledges that all such confidential information is the
exclusive property of the Company, is material and confidential, and is
critical to the successful conduct of the business of the Company.  Accordingly, the Executive hereby covenants
and agrees not to, at any time, directly or indirectly, divulge, reveal or
communicate any such confidential information to any person, firm, corporation
or entity whatsoever, or use any such confidential information for the
Executive’s own benefit or for the benefit of others.  Notwithstanding the foregoing, the Executive
shall be authorized to disclose confidential information (i) as may be
required by law or legal process after providing the Company with prior written
notice and an opportunity to respond to such disclosure (unless such notice is
prohibited by law), (ii) in any criminal proceeding against the Executive
after providing the Company with prior written notice and an opportunity to
seek protection for such confidential information, and (iii) with the prior
written consent of the Company.

 

8

 

(e)                                  Return of Company Property.  On the Date of Termination (or at any time
prior thereto at the Company’s request), the Executive shall return all
property (both tangible and intellectual) belonging to the Company or any of
its affiliated entities (including, but not limited to, files, monthly
management financial booklets, projections, forecasts, balance sheets, income
statements, audited financial statements, total cost development budgets,
actual or prospective purchaser or customer lists, written proposals and
studies, plans, drawings, specifications, reports to creditors, books,
accounts, reports to directors, minutes, resolutions, certificates, bank
account numbers, passwords, rolodexes, identification cards, credit cards,
computers, fax machines, cellular or other telephones, Blackberries, beepers,
PDA’s, keys, card access keys to any building of the Company or any of its
affiliated entities, deeds, contracts, office equipment and supplies, records,
computer disks and any other documents or things received or acquired in
connection with the Executive’s employment with the Company) without retaining
any copies or extracts thereof.

 

(f)                                    Nondisparagement.  The Executive agrees not to make negative
comments or otherwise disparage the Company or any of its affiliated entities
or its or their officers, directors, employees, shareholders, agents or
products, in any manner likely to be harmful to them or their business,
business reputation or personal reputation.

 

(g)                                 Cooperation.  Upon the receipt of reasonable notice from
the Company (including outside counsel), the Executive agrees that while
employed by the Company and thereafter, the Executive will respond and provide
information with regard to matters in which the Executive has knowledge as a
result of the Executive’s employment with the Company, and will provide
reasonable assistance to the Company, its affiliated entities and their
respective representatives in defense of any claims that may be made against
the Company or any of its affiliated entities, and will assist the Company and
its affiliated entities in the prosecution of any claims that may be made by
the Company or any of its affiliated entities, to the extent that such claims
may relate to the period of the Executive’s employment with the Company.  The Executive agrees to promptly inform the
Company if the Executive becomes aware of any lawsuits involving such claims
that may be filed or threatened against the Company or any of its affiliated
entities.  The Executive also agrees to
promptly inform the Company (to the extent that the Executive is legally
permitted to do so) if the Executive is asked to assist in any investigation of
the Company or any of its affiliated entities (or their actions), regardless of
whether a lawsuit or other proceeding has then been filed against the Company
or any of its affiliated entities with respect to such investigation, and shall
not do so unless legally required.

 

(h)                                 Survival.  The obligations contained in this Section 8
shall survive the termination of the Executive’s employment with the Company
and shall be fully enforceable thereafter.

 

(i)                                     Validity.  The terms and provisions of this Section 8
are intended to be separate and divisible provisions and if, for any reason,
any one or more of them is held to be invalid or unenforceable, neither the
validity nor the enforceability of any other provision of this Agreement shall
thereby be affected.  The parties hereto
acknowledge that the potential restrictions on the Executive’s future
employment imposed by this Section 8 are reasonable in both
duration and geographic scope and in all other respects.  If for any reason any court of competent
jurisdiction shall find any provisions of this Section 8
unreasonable in duration or geographic scope or otherwise, the Executive and
the Company agree that the restrictions and prohibitions contained herein shall
be effective to the fullest extent allowed under applicable law in such
jurisdiction.

 

(j)                                     Tolling.  In the event of any violation of the
provisions of this Section 8 on or after the Date of Termination,
the Executive acknowledges and agrees that the post-termination restrictions
contained in this Section 8 shall be extended by a period of time
equal to the period of such violation, it being the intention of the parties hereto
that the running of the applicable post-termination restriction period shall be
tolled during any period of such violation.

 

9

 

9.                                       Withholding Taxes.  The
Company may withhold from all payments due to the Executive (or the Executive’s
beneficiary or estate) hereunder all taxes which, by applicable federal, state,
local or other law or regulation, the Company is required to withhold
therefrom.

 

10.                                 Reimbursement of Expenses.

 

(a)                                  If
any contest or dispute shall arise under this Agreement involving the
termination of the Executive’s employment with the Company (including the
covenants contained in Section 8) or involving the failure or
refusal of the Company to perform fully in accordance with the terms hereof (a “Dispute”) and
the Executive prevails on the material issues in such Dispute, the Company shall, upon presentment of appropriate
documentation (which submission shall be made within forty-five (45) days after
the resolution of such Dispute),
promptly pay or reimburse the Executive, for all reasonable legal fees and
expenses (including costs of the arbitrators) incurred by the Executive in
connection with such Dispute.

 

(b)                                 Notwithstanding the provisions of Section 10(a),
the Company shall, on a quarterly basis, upon presentment of appropriate
documentation (which submission shall be made within forty-five (45) days after
the end of such quarter), reimburse the Executive for all legal fees and
expenses (including costs of the arbitrators), if any, incurred by the
Executive in connection with a Dispute arising on or after a Change in Control (or
otherwise related to a Change in
Control), except that the
Executive shall reimburse the Company (to the extent permitted under applicable
law) for the fees and expenses advanced (i) in the event the Executive’s
claims are determined to have been advanced by the Executive in bad faith or
were frivolous, or (ii) to the extent that such legal fees and expenses
are determined to be unreasonable.

 

11.                                 Termination of Agreement.  This
Agreement shall be effective on the Effective Date and shall terminate one year
after the date of any written notification from the Company to the Executive
terminating this Agreement; provided, however, that if a Change
in Control occurs while this Agreement is still operative, any written notification to the Executive terminating this Agreement (including any
written notification given prior to such Change in Control), shall not be effective prior to the end of
the Change in Control Termination Period; and provided, further,
that this Agreement shall continue in effect following any termination that is
not a Nonqualifying Termination which occurs prior to such termination with
respect to all rights and obligations accruing as a result of such termination.

 

12.                                 Scope of Agreement. 
Nothing in this Agreement shall be deemed to alter the “at-will” nature
of the Executive’s employment or entitle the Executive to continued employment
with the Company.

 

13.                                 Successors; Binding
Agreement.

 

(a)                                  This
Agreement shall not be terminated by any Reorganization.  In the event of any Reorganization, the
provisions of this Agreement shall be binding upon the surviving or resulting
corporation or the person or entity to which such assets are transferred.

 

(b)                                 The
Company agrees that concurrently with any Reorganization that does not
constitute a Non-Control Transaction, it will cause any successor or transferee
unconditionally to assume, by written instrument delivered to the Executive (or
the Executive’s beneficiary or estate), all of the obligations of the Company
hereunder.  Failure of the Company to
obtain such assumption prior to the effectiveness of any such Reorganization,
shall be a material breach of this Agreement and shall constitute Good Reason hereunder
and shall entitle the Executive to compensation and other benefits from the
Company in the same amount and on the same terms as the Executive would be
entitled hereunder if the Executive’s employment were terminated following a
Change in Control other than by reason of a Nonqualifying Termination.  For purposes of implementing the foregoing,
the date on which any such Reorganization becomes effective shall be deemed the
date Good Reason occurs, and shall be the Date of Termination, if requested by the
Executive.

 

10

 

(c)                                  This
Agreement is personal to the Executive and without the prior written consent of
the Company shall not be assignable by the Executive.  This Agreement shall inure to the benefit of,
and be enforceable by, the Executive’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees.  If the Executive shall die
while any amounts would be payable to the Executive hereunder had the Executive
continued to live, all such amounts, unless otherwise provided herein, shall be
paid in accordance with the terms of this Agreement to such person or persons
appointed in writing by the Executive to receive such amounts or, if no person
is so appointed, to the Executive’s estate.

 

14.                                 Notices.  (a)  For purposes of this Agreement, all notices and other
communications required or permitted hereunder (each, a “Notice”) shall be in writing and shall
be sent by either party by personal delivery, e-mail, fax (with a Notice
contemporaneously given by another method specified in this Section 14), recognized overnight
commercial courier or United
States mail (certified and return receipt requested, postage prepaid) and shall
be deemed to have been duly given when delivered or five (5) days after
deposit in the United States mail, addressed as follows:

 

	
  If to the Company:

  	
   

  	
  Force
  Protection, Inc.

  
	
   

  	
   

  	
  9801 Highway 78,
  Building No. 1

  
	
   

  	
   

  	
  Ladson, South Carolina
  29456-3802

  
	
   

  	
   

  	
  Attention: General
  Counsel

  
	
   

  	
   

  	
  Facsimile: (843)
  553.1311

  
	
   

  	
   

  	
   

  
	
  If to the Executive:

  	
   

  	
  To the Executive’s last
  address (or to the last

  
	
   

  	
   

  	
  facsimile number) shown
  on the records

  
	
   

  	
   

  	
  of the Company

  

 

or to such other address
as either party may have furnished to the other in writing in accordance herewith,
except that notices of change of address shall be effective only upon receipt (or refusal of receipt).

 

(b)                                 A
written notice of the Executive’s Date of Termination by the Company or the
Executive, as the case may be, to the other, shall (i) indicate the
specific termination provision in this Agreement relied upon, (ii) to the
extent applicable, set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive’s employment under
the provision so indicated and (iii) specify the termination date (which
date shall be not less than thirty (30) nor more than sixty (60) days after the
giving of such notice).  The failure by
the Executive or the Company to set forth in such notice any fact or
circumstance which contributes to a showing of Good Reason or Cause shall not
waive any right of the Executive or the Company hereunder or preclude the
Executive or the Company from asserting such fact or circumstance in enforcing
the Executive’s or the Company’s rights hereunder.

 

15.                                 Full Settlement; No
Mitigation.  The Company’s obligation to make any payments
provided for in this Agreement and otherwise to perform its obligations
hereunder shall be in lieu of and in full settlement of all other severance or
similar payments to the Executive under any other severance or employment
agreement between the Executive and the Company, any severance plan of the
Company and any statutory entitlement (including notice of termination,
termination pay and/or severance pay). 
The Company’s obligations hereunder shall not be affected by any
set-off, counterclaim, recoupment, defense or other claim, right or action
which the Company may have against the Executive or others.  In no event shall the Executive be obligated
to seek other employment or take other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement
and, except as provided in Section 3(d), such amounts shall not be reduced whether
or not the Executive obtains other employment.

 

16.                                 Employment with Subsidiaries. 
Employment with the Company for purposes of this Agreement shall include
employment with any Subsidiary or affiliate entity.

 

11

 

17.                                 GOVERNING LAW; VALIDITY.  THE
INTERPRETATION, CONSTRUCTION AND PERFORMANCE OF THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF
THE STATE OF SOUTH CAROLINA WITHOUT REGARD TO THE PRINCIPLE OF CONFLICTS OF
LAWS.  THE INVALIDITY OR UNENFORCEABILITY
OF ANY PROVISION OF THIS AGREEMENT SHALL NOT AFFECT THE VALIDITY OR
ENFORCEABILITY OF ANY OTHER PROVISION OF THIS AGREEMENT, WHICH OTHER PROVISIONS
SHALL REMAIN IN FULL FORCE AND EFFECT.

 

18.                                 Disputes.

 

(a)                                  Mandatory Arbitration.  Subject to the provisions of this Section 18,
any Dispute will be finally settled by arbitration in Charleston, South
Carolina administered by the American Arbitration Association (the “AAA”) under its Commercial
Arbitration Rules then in effect. 
However, the AAA’s Commercial Arbitration Rules will be modified in
the following ways:  (i) the
decision must not be a compromise but must be the adoption of the submission by
one of the parties; (ii) the dispute shall be decided by a panel of three (3) arbitrators,
one appointed by each of the parties and the third appointed by the other two (2) arbitrators
or, if the arbitrators do not agree, appointed by the AAA; (iii) each
arbitrator will agree to treat as confidential evidence and other information
presented to them; (iv) there will be no authority to award punitive
damages (and the Executive and the Company agree not to request any such
award); (v) the optional Rules for Emergency Measures of Protections
will apply; (vi) there will be no authority to amend or modify the terms
of this Agreement except as provided in Section 21 (and the
Executive and the Company agree not to request any such amendment or
modification); and (vii) a decision must be rendered within ten (10) business
days of the parties’ closing statements or submission of post-hearing briefs.

 

(b)                                 Injunctions and Enforcement of Arbitration Awards.  The Executive or the Company may bring an
action or special proceeding in a state or federal court of competent
jurisdiction sitting in Charleston, South Carolina to enforce any arbitration
award under Section 18(a). 
Also, the Company may bring such an action or proceeding, in addition to
its rights under Section 18(a) and whether or not an arbitration
proceeding has been or is ever initiated, to temporarily, preliminarily or
permanently enforce any part of Section 8.  The Executive agrees that (i) violating
any part of Section 8 would cause damage to the Company that cannot
be measured or repaired and that the Company’s remedies at law for a breach or
threatened breach of any of the provisions of Section 8 would be
inadequate, (ii) the Company therefore is entitled to an injunction,
restraining order or other equitable relief restraining any actual or
threatened violation of Section 8 in addition to any remedies at
law, (iii) no bond will need to be posted for the Company to receive such
an injunction, order or other relief and (iv) no proof will be required
that monetary damages for violations of Section 8 would be
difficult to calculate and that remedies at law would be inadequate.  In addition, in the event of a violation by
the Executive of Section 8, any severance payments or benefits
being paid to the Executive pursuant to this Agreement or otherwise shall
immediately cease and any severance previously paid to the Executive shall be
immediately repaid to the Company.

 

(c)                                  Jurisdiction and Choice of Forum.  The Executive and the Company irrevocably
submit to the exclusive jurisdiction of any state or federal court located in
Charleston, South Carolina over any Dispute that is not otherwise arbitrated or
resolved according to Section 18(a).  This includes any action or proceeding to
compel arbitration or to enforce an arbitration award.  Both the Executive and the Company (i) acknowledge
that the forum stated in this Section 18(c) has a reasonable
relation to this Agreement and to the relationship between the Executive and
the Company and that the submission to the forum will apply even if the forum
chooses to apply non-forum law, (ii) waive, to the extent permitted by
law, any objection to personal jurisdiction or to the laying of venue of any
action or proceeding covered by this Section 18(c) in the
forum stated in this Section 18(c), (iii) agree not to
commence any such action or proceeding in any forum other than the forum stated
in this Section 18(c) and (iv) agree that, to the extent
permitted by law, a final and non-appealable judgment in any such action or
proceeding in any such court will be conclusive and binding on the Executive
and the Company.  However, nothing in
this 

 

12

 

Agreement precludes the
Executive or the Company from bringing any action or proceeding in any court
for the purpose of enforcing the provisions of Section 18(a) and
this Section 18(c).

 

19.                                 Section 409A of the
Code.  The
parties agree that this Agreement is intended to comply with the requirements
of Section 409A of the Code and the regulations and other guidance
promulgated thereunder (“Section 409A”)
or an exemption from Section 409A. 
Notwithstanding anything in this Agreement to the contrary, if the
Executive is a “specified employee” (as described in Section 409A) on the
Date of Termination, any amount to which the Executive would otherwise be
entitled during the first six months following a separation of service that
constitutes nonqualified deferred compensation within the meaning of Section 409A
and that is therefore not exempt from Section 409A as involuntary
separation pay or a short-term deferral will be accumulated and paid in a
single lump sum cash payment (without interest) on the earlier of (i) the
first business day of the seventh month following the date of such “separation
from service” (as defined under Section 409A) or (ii) the date of the
Executive’s death, and any remaining payments and benefits due under this
Agreement shall be paid or provided in accordance with the normal payment dates
specified for them herein.  For purposes
of this Agreement, each amount to be paid or benefit to be provided hereunder
shall be construed as a separate identified payment for purposes of Section 409A.

 

20.                                 Counterparts.  This
Agreement may be executed (including by facsimile
transmission confirmed promptly
thereafter by actual delivery of executed counterparts) in counterparts, each of which shall be
deemed to be an original and all of which together shall constitute one and the
same instrument.

 

21.                                 Miscellaneous.  No
provision of this Agreement may be modified or waived unless such modification
or waiver is agreed to in writing and signed by the Executive and by a duly
authorized officer of the Company.  No
waiver by either party hereto at any time of any breach by the other party
hereto of, or compliance with, any condition or provision of this Agreement to
be performed by such other party shall be deemed a waiver of similar or
dissimilar provisions or conditions at the same or any prior or subsequent
time.  Failure by the Executive or the
Company to insist upon strict compliance with any provision of this Agreement
or to assert any right the Executive or the Company may have hereunder,
including, without limitation, the right of the Executive to terminate
employment for Good Reason or the Company to terminate employment for Cause,
shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement. 
This Agreement together with all exhibits hereto sets forth the entire
agreement of the parties hereto in respect of the subject matter contained
herein.  No agreements or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not expressly
set forth in this Agreement.  Except as
otherwise specifically provided for herein, the rights of, and benefits payable
to, the Executive or the Executive’s estate or beneficiaries pursuant to this
Agreement are in addition to any rights of, or benefits payable to, the
Executive or the Executive’s estate or beneficiaries under any other employee
benefit plan or compensation program of the Company.

 

22.                                 Section Headings.  The
section headings used in this Agreement are included solely for convenience and
shall not affect, or be used in connection with, the interpretation of this
Agreement.

 

[Signatures on next page]

 

13

 

IN WITNESS WHEREOF,
the Company has caused this Agreement to be executed by a duly authorized
officer of the Company and the Executive has executed this Agreement on the
Effective Date.

 

 

FORCE
PROTECTION, INC.

 

 

	
  By:

  	
             /s/
  Michael Moody

  	
   

  
	
   

  	
  Name: Michael Moody

  	
   

  
	
   

  	
  Title: President and
  CEO

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  “EXECUTIVE”

  
	
   

  
	
   

  
	
              /s/
  Damon Walsh

  	
   

  
	
  Name: Damon Walsh

  	
   

  
				

 

14

 

Exhibit A

 

Form of General Release

 

This General Release,
dated as of the [·] day of [·] 20[·], is delivered by [·] (the “Executive”)
to and for the benefit of the Released Parties (as defined below).  The Executive acknowledges that this General
Release is being executed in accordance with Section 6 of the Severance
Agreement dated [·], 200[·] (the “Severance Agreement”).

 

1.                                       General
Release.  (a)  The Executive, for himself and for
the Executive’s heirs, dependents, assigns, agents, executors, administrators,
trustees and legal representatives (collectively, the “Releasors”)
hereby forever releases, waives and discharges the Released Parties (as defined
below) from each and every claim, demand, cause of action, fee, liability or right of any sort (based upon legal
or equitable theory, whether contractual, common-law, statutory, federal,
state, local or otherwise), known or unknown, which Releasors ever had, now
have, or hereafter may have against the Released Parties by reason of any
actual or alleged act, omission, transaction, practice, policy, procedure,
conduct, occurrence, or other matter from the beginning of the world up to and
including the Effective Date (as defined below), including, without limitation,
those in connection with, or in any way related to or arising out of, the
Executive’s employment or termination of employment or any other agreement,
understanding, relationship, arrangement, act, omission or occurrence, with the
Released Parties.

 

(b)                                 Without
limiting the generality of the previous paragraph, this General Release is intended to and shall release the Released Parties from any and all claims,
whether known or unknown, which Releasors ever had, now have, or may hereafter
have against the Released Parties including, but not limited to:  (1) any claim of discrimination or
retaliation under the Age Discrimination in Employment Act, Title VII of the
Civil Rights Act, the Americans with Disabilities Act, the Fair Labor Standards
Act, the Employee Retirement Income Security Act of 1974, as amended (excluding
claims for accrued, vested benefits under any employee benefit or pension plan
of the Released Parties subject to the terms and conditions of such plan and
applicable law) and the Family and Medical Leave Act; (2) any claim under
the South Carolina Human Affairs Law and the South Carolina Wage Payment
Statute; (3) any other claim (whether based on federal, state or local law
or ordinance, statutory or decisional) relating to or arising out of the
Executive’s employment, the terms and conditions of such employment, the
termination of such employment and/or any of the events relating directly or
indirectly to or surrounding the termination of such employment, including, but
not limited to, breach of contract (express or implied), tort, wrongful
discharge, detrimental reliance, defamation, emotional distress or compensatory
or punitive damages; and (4) any claim for attorney’s fees, costs,
disbursements and the like.

 

(c)                                  The
foregoing release does not in any way
affect: (1) the Executive’s rights of indemnification to which the
Executive was entitled immediately prior to the Date of Termination (as
defined in the Severance Agreement); and (2) the right of the
Executive to take whatever steps may be necessary to enforce the terms of the Severance Agreement.

 

(d)                                 For
purposes of this General Release,
the “Released Parties” means Force
Protection, Inc. (the “Company”),
all current and former parents, subsidiaries, related companies, partnerships,
joint ventures and employee benefit programs (and the trustees, administrators,
fiduciaries and insurers of such programs), and, with respect to each of them,
their predecessors and successors, and, with respect to each such entity, all
of its past, present, and future employees, officers, directors, members,
stockholders, owners, representatives, assigns, attorneys, agents, insurers,
and any other person acting by, through, under or in concert with any of the
persons or entities listed in this paragraph, and their successors (whether
acting as agents for such entities or in their individual capacities).

 

2.                                       No Existing Suit.  The Executive represents and warrants
that, as of the Effective Date of this General
Release, the Executive has not filed or commenced any suit, claim,
charge, complaint, action, arbitration, or legal proceeding of any kind against
the Company or its subsidiaries or affiliates. 

 

 

The Executive
acknowledges that this General
Release does not prohibit the Executive from filing a charge of
discrimination with the Equal Employment Opportunity Commission.

 

3.                                       Knowing and
Voluntary Waiver.  By signing this General Release, the Executive expressly
acknowledges and agrees that: (a) the Executive has carefully read it and
fully understands what it means; (b) the Executive has discussed this General Release with an attorney of the
Executive’s choosing before signing it; (c) the Executive has been given
at least twenty-one (21) calendar days to consider this General Release; (d) the Executive has agreed to this General Release knowingly and
voluntarily and was not subjected to any undue influence or duress; (e) the
consideration provided the Executive under Severance Agreement is sufficient to support the releases provided by the
Executive under this General Release;
(f) the Executive may revoke the Executive’s execution of this General
Release within seven (7) days after the Executive signs it by
sending written notice of revocation as set forth below; and (g) on the
eighth day after the Executive executes this General Release (the “Effective Date”),
this General Release becomes
effective and enforceable, provided that the Executive does not revoke this
Agreement during the revocation period. 
Any revocation of the Executive’s execution of this General
Release must be submitted, in writing, to Force Protection, Inc.
9801 Highway 78, Building No. 1, Ladson, South Carolina 29456-3802, to the
attention of the Co-General Counsel, stating “I hereby revoke my execution of the General Release.”  The
revocation must be personally delivered to the General Counsel or mailed to the
General Counsel and postmarked within seven (7) days of the Executive’s
execution of this General Release.  If the last day of the revocation period is a
Saturday, Sunday or legal holiday, then the revocation period will be extended
to the following day which is not a Saturday, Sunday or legal holiday.  The Executive agrees that if the Executive
does not execute this General Release
or, in the event of revocation, the Executive will not be entitled to receive
any of the payments or benefits under the
Severance Agreement (other than the Accrued Amounts and the Other
Benefits).  The Executive must
execute this General Release on or before [·], 20[·].

 

This General Release is
final and binding and may not be changed or modified.

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [                                                    ]

  

 

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