Document:

Exhibit 4.2
 

 

 

K-SEA
TRANSPORTATION PARTNERS L.P.

K-SEA
TRANSPORTATION FINANCE CORPORATION

as
Issuers

and

ANY SUBSIDIARY GUARANTORS
PARTY HERETO

and

[                                                 ]

as
Trustee

Indenture

 

Dated as of                                 

Subordinated Debt Securities

   
 

 

K-SEA
TRANSPORTATION PARTNERS L.P.

Reconciliation
and tie between Trust Indenture Act of 1939

and Indenture, dated as of                      

	
  Section of

  	
   

  	
   

  	
   

  
	
  Trust
  Indenture

  	
   

  	
   

  	
  Section(s) of

  
	
  Act of 1939

  	
   

  	
   

  	
  Indenture

  
	
   

  	
   

  	
   

  	
   

  
	
  § 310

  	
  (a)(1)

  	
   

  	
  7.10

  
	
   

  	
  (a)(2)

  	
   

  	
  7.10

  
	
   

  	
  (a)(3)

  	
   

  	
  Not Applicable

  
	
   

  	
  (a)(4)

  	
   

  	
  Not Applicable

  
	
   

  	
  (a)(5)

  	
   

  	
  7.10

  
	
   

  	
  (b)

  	
   

  	
  7.08, 7.10

  
	
  § 311

  	
  (a)

  	
   

  	
  7.11

  
	
   

  	
  (b)

  	
   

  	
  7.11

  
	
   

  	
  (c)

  	
   

  	
  Not Applicable

  
	
  § 312

  	
  (a)

  	
   

  	
  2.07

  
	
   

  	
  (b)

  	
   

  	
  12.03

  
	
   

  	
  (c)

  	
   

  	
  12.03

  
	
  § 313

  	
  (a)

  	
   

  	
  7.06

  
	
   

  	
  (b)

  	
   

  	
  7.06

  
	
   

  	
  (c)

  	
   

  	
  7.06

  
	
   

  	
  (d)

  	
   

  	
  7.06

  
	
  § 314

  	
  (a)

  	
   

  	
  4.03, 4.04

  
	
   

  	
  (b)

  	
   

  	
  Not Applicable

  
	
   

  	
  (c)(1)

  	
   

  	
  12.04

  
	
   

  	
  (c)(2)

  	
   

  	
  12.04

  
	
   

  	
  (c)(3)

  	
   

  	
  Not Applicable

  
	
   

  	
  (d)

  	
   

  	
  Not Applicable

  
	
   

  	
  (e)

  	
   

  	
  12.05

  
	
  § 315

  	
  (a)

  	
   

  	
  7.01(b)

  
	
   

  	
  (b)

  	
   

  	
  7.05

  
	
   

  	
  (c)

  	
   

  	
  7.01(a)

  
	
   

  	
  (d)

  	
   

  	
  7.01(c)

  
	
   

  	
  (d)(1)

  	
   

  	
  7.01(c)(1)

  
	
   

  	
  (d)(2)

  	
   

  	
  7.01(c)(2)

  
	
   

  	
  (d)(3)

  	
   

  	
  7.01(c)(3)

  
	
   

  	
  (e)

  	
   

  	
  6.11

  
	
  § 316

  	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
   

  	
  (a)(2)

  	
   

  	
  Not Applicable

  
	
   

  	
  (a)(last sentence)

  	
   

  	
  2.11

  
	
   

  	
  (b)

  	
   

  	
  6.07

  
	
  § 317

  	
  (a)(1)

  	
   

  	
  6.08

  
	
   

  	
  (a)(2)

  	
   

  	
  6.09

  
	
   

  	
  (b)

  	
   

  	
  2.06

  
	
  § 318

  	
  (a)

  	
   

  	
  12.01

  

Note:                   This
reconciliation and tie shall not, for any purpose, be deemed to be a part of the
Indenture.

 i
 

 

TABLE OF
CONTENTS

	
  

  	
  Page

  
	
  ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE

  	
  1

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01

  	
  Definitions

  	
  1

  
	
  SECTION 1.02

  	
  Other Definitions

  	
  8

  
	
  SECTION 1.03

  	
  Incorporation by Reference of Trust Indenture Act

  	
  8

  
	
  SECTION 1.04

  	
  Rules of Construction

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE II THE SECURITIES

  	
  9

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01

  	
  Amount Unlimited; Issuable in Series

  	
  9

  
	
  SECTION 2.02

  	
  Denominations

  	
  12

  
	
  SECTION 2.03

  	
  Forms Generally

  	
  12

  
	
  SECTION 2.04

  	
  Execution, Authentication, Delivery and Dating

  	
  13

  
	
  SECTION 2.05

  	
  Registrar and Paying Agent

  	
  15

  
	
  SECTION 2.06

  	
  Paying Agent to Hold Money in Trust

  	
  15

  
	
  SECTION 2.07

  	
  Holder Lists

  	
  15

  
	
  SECTION 2.08

  	
  Transfer and Exchange

  	
  16

  
	
  SECTION 2.09

  	
  Replacement Securities

  	
  16

  
	
  SECTION 2.10

  	
  Outstanding Securities

  	
  17

  
	
  SECTION 2.11

  	
  Original Issue Discount and Treasury Securities

  	
  17

  
	
  SECTION 2.12

  	
  Temporary Securities

  	
  17

  
	
  SECTION 2.13

  	
  Cancellation

  	
  18

  
	
  SECTION 2.14

  	
  Payments; Defaulted Interest

  	
  18

  
	
  SECTION 2.15

  	
  Persons Deemed Owners

  	
  18

  
	
  SECTION 2.16

  	
  Computation of Interest

  	
  18

  
	
  SECTION 2.17

  	
  Global Securities; Book-Entry Provisions

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE III REDEMPTION

  	
  21

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01

  	
  Applicability of Article

  	
  21

  
	
  SECTION 3.02

  	
  Notice to the Trustee

  	
  21

  
	
  SECTION 3.03

  	
  Selection of Securities To Be Redeemed

  	
  22

  
	
  SECTION 3.04

  	
  Notice of Redemption

  	
  22

  
	
  SECTION 3.05

  	
  Effect of Notice of Redemption

  	
  23

  
	
  SECTION 3.06

  	
  Deposit of Redemption Price

  	
  23

  
	
  SECTION 3.07

  	
  Securities Redeemed in Part

  	
  24

  
	
  SECTION 3.08

  	
  Purchase of Securities

  	
  24

  
	
  SECTION 3.09

  	
  Mandatory and Optional Sinking Funds

  	
  24

  
	
  SECTION 3.10

  	
  Satisfaction of Sinking Fund Payments with
  Securities

  	
  24

  
	
  SECTION 3.11

  	
  Redemption of Securities for Sinking Fund

  	
  25

  
	
   

  	
   

  
	
  ARTICLE IV COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01

  	
  Payment of Securities

  	
  25

  
	
  SECTION 4.02

  	
  Maintenance of Office or Agency

  	
  26

  

 

 ii
 

 

	
  SECTION 4.03

  	
  SEC Reports; Financial Statements

  	
  26

  
	
  SECTION 4.04

  	
  Compliance Certificate

  	
  27

  
	
  SECTION 4.05

  	
  Existence

  	
  27

  
	
  SECTION 4.06

  	
  Waiver of Stay, Extension or Usury Laws

  	
  27

  
	
  SECTION 4.07

  	
  Additional Amounts

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE V SUCCESSORS

  	
  28

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01

  	
  Limitations on Mergers and Consolidations

  	
  28

  
	
  SECTION 5.02

  	
  Successor Person Substituted

  	
  29

  
	
   

  	
   

  
	
  ARTICLE VI DEFAULTS AND REMEDIES

  	
  29

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01

  	
  Events of Default

  	
  29

  
	
  SECTION 6.02

  	
  Acceleration

  	
  31

  
	
  SECTION 6.03

  	
  Other Remedies

  	
  32

  
	
  SECTION 6.04

  	
  Waiver of Defaults

  	
  32

  
	
  SECTION 6.05

  	
  Control by Majority

  	
  32

  
	
  SECTION 6.06

  	
  Limitations on Suits

  	
  33

  
	
  SECTION 6.07

  	
  Rights of Holders to Receive Payment

  	
  33

  
	
  SECTION 6.08

  	
  Collection Suit by Trustee

  	
  33

  
	
  SECTION 6.09

  	
  Trustee May File Proofs of Claim

  	
  34

  
	
  SECTION 6.10

  	
  Priorities

  	
  34

  
	
  SECTION 6.11

  	
  Undertaking for Costs

  	
  35

  
	
   

  	
   

  
	
  ARTICLE VII TRUSTEE

  	
  35

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01

  	
  Duties of Trustee

  	
  35

  
	
  SECTION 7.02

  	
  Rights of Trustee

  	
  36

  
	
  SECTION 7.03

  	
  May Hold Securities

  	
  37

  
	
  SECTION 7.04

  	
  Trustee’s Disclaimer

  	
  37

  
	
  SECTION 7.05

  	
  Notice of Defaults

  	
  37

  
	
  SECTION 7.06

  	
  Reports by Trustee to Holders

  	
  38

  
	
  SECTION 7.07

  	
  Compensation and Indemnity

  	
  38

  
	
  SECTION 7.08

  	
  Replacement of Trustee

  	
  39

  
	
  SECTION 7.09

  	
  Successor Trustee by Merger, etc.

  	
  40

  
	
  SECTION 7.10

  	
  Eligibility; Disqualification

  	
  41

  
	
  SECTION 7.11

  	
  Preferential Collection of Claims Against the
  Issuers or a Subsidiary Guarantor

  	
  41

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII DISCHARGE OF INDENTURE

  	
  41

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01

  	
  Termination of the Issuers’ and the Subsidiary
  Guarantors’ Obligations

  	
  41

  
	
  SECTION 8.02

  	
  Application of Trust Money

  	
  45

  
	
  SECTION 8.03

  	
  Repayment to Issuers or Subsidiary Guarantor

  	
  45

  
	
  SECTION 8.04

  	
  Reinstatement

  	
  45

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX SUPPLEMENTAL INDENTURES AND AMENDMENTS

  	
  46

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01

  	
  Without Consent of Holders

  	
  46

  

 

 iii
 

 

	
  SECTION 9.02

  	
  With Consent of Holders

  	
  47

  
	
  SECTION 9.03

  	
  Compliance with the Trust Indenture Act

  	
  49

  
	
  SECTION 9.04

  	
  Revocation and Effect of Consents

  	
  49

  
	
  SECTION 9.05

  	
  Notation on or Exchange of Securities

  	
  50

  
	
  SECTION 9.06

  	
  Trustee to Sign Amendments, etc.

  	
  50

  
	
   

  	
   

  
	
  ARTICLE X SUBORDINATION OF SECURITIES AND GUARANTEE

  	
  50

  
	
   

  	
   

  	
   

  
	
  SECTION 10.01

  	
  Applicability of Article; Agreement to Subordinate

  	
  50

  
	
  SECTION 10.02

  	
  Liquidation, Dissolution, Bankruptcy

  	
  51

  
	
  SECTION 10.03

  	
  Default on Senior Indebtedness

  	
  51

  
	
  SECTION 10.04

  	
  Acceleration of Payment of Securities

  	
  52

  
	
  SECTION 10.05

  	
  When Distribution Must Be Paid Over

  	
  52

  
	
  SECTION 10.06

  	
  Subrogation

  	
  53

  
	
  SECTION 10.07

  	
  Relative Rights

  	
  53

  
	
  SECTION 10.08

  	
  Subordination May Not Be Impaired by the Issuers

  	
  53

  
	
  SECTION 10.09

  	
  Rights of Trustee and Paying Agent

  	
  53

  
	
  SECTION 10.10

  	
  Distribution or Notice to Representative

  	
  54

  
	
  SECTION 10.11

  	
  Article X Not to Prevent Defaults or Limit Right to
  Accelerate

  	
  54

  
	
  SECTION 10.12

  	
  Trust Moneys Not Subordinated

  	
  54

  
	
  SECTION 10.13

  	
  Trustee Entitled to Rely

  	
  54

  
	
  SECTION 10.14

  	
  Trustee to Effectuate Subordination

  	
  55

  
	
  SECTION 10.15

  	
  Trustee Not Fiduciary for Holders of Senior
  Indebtedness

  	
  55

  
	
  SECTION 10.16

  	
  Reliance by Holders of Senior Indebtedness on
  Subordination Provisions

  	
  55

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI GUARANTEE

  	
  55

  
	
   

  	
   

  	
   

  
	
  SECTION 11.01

  	
  Guarantee

  	
  55

  
	
  SECTION 11.02

  	
  Execution and Delivery of Guarantees

  	
  57

  
	
  SECTION 11.03

  	
  Limitation on Liability of the Subsidiary Guarantors

  	
  58

  
	
  SECTION 11.04

  	
  Release of Subsidiary Guarantors from Guarantee

  	
  58

  
	
  SECTION 11.05

  	
  Contribution

  	
  58

  
	
   

  	
   

  
	
  ARTICLE XII MISCELLANEOUS

  	
  59

  
	
   

  	
   

  	
   

  
	
  SECTION 12.01

  	
  Trust Indenture Act Controls

  	
  59

  
	
  SECTION 12.02

  	
  Notices

  	
  59

  
	
  SECTION 12.03

  	
  Communication by Holders with Other Holders

  	
  60

  
	
  SECTION 12.04

  	
  Certificate and Opinion as to Conditions Precedent

  	
  60

  
	
  SECTION 12.05

  	
  Statements Required in Certificate or Opinion

  	
  61

  
	
  SECTION 12.06

  	
  Rules by Trustee and Agents

  	
  61

  
	
  SECTION 12.07

  	
  Legal Holidays

  	
  61

  
	
  SECTION 12.08

  	
  No Recourse Against Others

  	
  61

  
	
  SECTION 12.09

  	
  Governing Law

  	
  62

  
	
  SECTION 12.10

  	
  No Adverse Interpretation of Other Agreements

  	
  62

  
	
  SECTION 12.11

  	
  Successors

  	
  62

  
	
  SECTION 12.12

  	
  Severability

  	
  62

  
	
  SECTION 12.13

  	
  Counterpart Originals

  	
  62

  
	
  SECTION 12.14

  	
  Table of Contents, Headings, etc.

  	
  62

  

 

 iv

INDENTURE (this “Indenture”) dated as of                          
among K-Sea Transportation Partners L.P., a Delaware limited partnership
(the “Partnership”), K-Sea Transportation Finance Corporation, a Delaware
corporation (“Finance Corp.” and, together with the Partnership, the “Issuers”),
any Subsidiary Guarantors (as defined herein) party hereto and [               ],
a                     ,
as trustee (the “Trustee”).

The Issuers and any Subsidiary Guarantors have duly
authorized the execution and delivery of this Indenture to provide for the
issuance from time to time of the Issuers’ subordinated debentures, notes,
bonds or other evidences of indebtedness to be issued in one or more series
unlimited as to principal amount (herein called the “Securities”), and the
related Guarantees (as hereinafter defined), if any, as provided in this
Indenture.

The Issuers and any Subsidiary Guarantors are members
of the same consolidated group of companies. The Subsidiary Guarantors will
derive direct and indirect economic benefit from the issuance of the
Securities. Accordingly, each Subsidiary Guarantor has duly authorized the
execution and delivery of this Indenture in light of the possibility that such
Subsidiary Guarantor will provide its full and unconditional guarantee of a
series of the Securities to the extent provided in this Indenture.

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

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.01                                                   Definitions.

“Additional Amounts” means any additional amounts
required by the express terms of a Security or by or pursuant to a Board
Resolution, under circumstances specified therein or pursuant thereto, to be
paid by the Issuers or any Subsidiary Guarantor, as the case may be, with
respect to certain taxes, assessments or other governmental charges imposed on
certain Holders and that are owing to such Holders.

“Affiliate” of any specified Person means any other
Person directly or indirectly controlling or controlled by, or under direct or
indirect common control with, such specified Person.  For purposes of this definition, “control” of
a Person shall mean the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise, and the terms “controlling” and “controlled”
shall have meanings correlative to the foregoing.

 1
 

“Agent” means any Registrar or Paying Agent.

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

“Board of Directors” means, (i) with respect to
Finance Corp., the board of directors of the corporation or any committee
thereof duly authorized to act on behalf of such board or any directors and/or
officers of Finance Corp. to whom such Board of Directors or such committee
shall have duly delegated its authority to act hereunder, (ii) with respect to
the Partnership, the Board of Directors of the General Partner or any
authorized committee of the Board of Directors of the General Partner or any
directors and/or officers of the General Partner to whom such Board of
Directors or such committee shall have duly delegated its authority to act
hereunder, and (iii) with respect to a Subsidiary Guarantor, the board of
directors or managers, any authorized committee thereof and any directors
and/or officers thereof to whom such board of directors or managers or such
committee shall have duly delegated its authority to act hereunder and, if such
Subsidiary Guarantor is a limited partnership, the references to the Board of
Directors shall mean the Board of Directors of the general partner of the
Subsidiary Guarantor.  If the Partnership
shall change its form of entity to other than a limited partnership, the
references to the Board of Directors of the General Partner shall mean the
Board of Directors (or other comparable governing body) of the Partnership.

“Board Resolution” means a copy of a resolution
certified by the Secretary or an Assistant Secretary of the General Partner or
Finance Corp., as the case may be, to have been duly adopted by such 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 that is not a Legal
Holiday.

“Corporate Trust Office of the Trustee” means the
office of the Trustee located at                                                                  ,
Attention:                                        ,
and as may be located at such other address as the Trustee may give notice to
the Issuers and the Subsidiary Guarantors.

“Debt” of any Person at any date means any obligation
created or assumed by such Person for the repayment of borrowed money and any
guarantee thereof.

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

“deliver” or “delivery” means, in the context of
certificated Securities, actual physical delivery of the certificated
Securities to the relevant Person required hereunder, together with all
endorsements, and in the context of Global Securities, the designation on the
records of the Depositary of a change in the beneficial interests of a holder
in a Global Security.

“Depositary” means, with respect to the Securities of
any series issuable or issued in whole or in part in global form, the Person
specified pursuant to Section 2.01 hereof as the initial Depositary with
respect to the Securities of such series, until a successor shall have been 

 2
 

appointed and become such
pursuant to the applicable provision of this Indenture, and thereafter “Depositary”
shall mean or include such successor.

“Designated Senior Indebtedness” means (i) any Senior
Indebtedness which, at the date of determination, has an aggregate principal
amount outstanding of, or under which, at the date of determination, the
holders thereof are committed to lend up to, at least $100 million and (ii) any
other Senior Indebtedness designated, as provided in Section 2.01, in respect
of any series of Securities.

“Dollar” or “$” means a dollar or other equivalent
unit in such coin or currency of the United States as at the time shall be
legal tender for the payment of public and private debt.

“Exchange Act” means the Securities Exchange Act of
1934, as amended, and any successor statute.

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

“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 may be
approved by a significant segment of the accounting profession of the United
States, as in effect from time to time.

“General Partner” means K-Sea General Partner
L.P., a Delaware limited partnership, and its successors and permitted assigns.

“Global Security” means a Security that is issued in
global form in the name of the Depositary with respect thereto or its nominee.

“Government Obligations” means, with respect to a
series of Securities, (i) direct obligations of a government that issues
the currency in which the Securities of the series are payable for the payment
of which the full faith and credit of such government is pledged, or
(ii) obligations of a Person controlled or supervised by and acting as an
agency or instrumentality of such government, the payment of which is
unconditionally guaranteed as a full faith and credit obligation by such
government, which, in either case under clause (i) or (ii) above, are not
callable or redeemable at the option of the issuer thereof; or (iii) depository
receipts issued by a bank or trust company as custodian with respect to any
such Government Obligations or a specific payment of interest on or principal
of any such Government Obligation held by such custodian for the account of the
holder of a depository receipt, provided that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to
the holder of such depository receipt from any amount received by the custodian
in respect of the Government Obligation evidenced by such depository receipt.

 3
 

“Guarantee” means the guarantee of the Issuers’
obligations under the Securities of a series by a Subsidiary Guarantor
(specified with respect to such series as contemplated by Section 2.01(9)) as
provided in Article XI.

“Holder” means a Person in whose name a Security is
registered.

“Indenture” means this Indenture as amended or
supplemented from time to time pursuant to the provisions hereof, and includes
the terms of a particular series of Securities established as contemplated by
Section 2.01.

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

“Interest Payment Date,” when used with respect to any
Security, shall have the meaning assigned to such term in the Security as
contemplated by Section 2.01.

“Issue Date” means, with respect to Securities of a
series, the first date on which the Securities of such series are originally
issued under this Indenture.

“Issuers” means the Partnership and Finance Corp.

“Issuer Order” means a written request or order signed
on behalf of each of the Issuers by one of its Officers and delivered to the
Trustee.

“K-Sea GP” means K-Sea General Partner GP
LLC, a Delaware limited liability company and the general partner of the
General Partner, and its successors and permitted assigns as the general
partner of the General Partner.

“Legal Holiday” means a Saturday, a Sunday or a day on
which banking institutions in any of The City of New York, New York or a Place
of Payment are authorized or obligated by law, regulation or executive order to
remain closed.

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

“Officer” means the Chief Executive Officer, the
President, the Chief Operating Officer, any Vice President, the Chief Financial
Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary
or any Assistant Secretary of a Person.

“Officers’ Certificate” means a certificate signed on
behalf of each Issuer by any two of its Officers.

“Opinion of Counsel” means a written opinion from
legal counsel who is acceptable to the Trustee. 
Such counsel may be an employee of or counsel to the Issuers, the
General Partner, K-Sea GP, a Subsidiary Guarantor or the Trustee.

 4
 

“Original Issue Discount Security” means any Security
that provides for an amount less than the principal amount thereof to be due
and payable upon a declaration of acceleration of the Maturity thereof pursuant
to Section 6.02.

“Partnership” means the Person named as the “Partnership”
in the first paragraph of this instrument until a successor Person shall have
become such pursuant to the applicable provisions of this Indenture, and
thereafter “Partnership” shall mean such successor Person; provided,
however, that for purposes of any provision contained herein which
is required by the TIA, “Partnership” shall also mean each other obligor (if
any), other than a Subsidiary Guarantor, on the Securities of a series.

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

“Place of Payment” means, with respect to the
Securities of any series, the place or places where the principal of, premium
(if any) and interest on and any Additional Amounts with respect to the
Securities of that series are payable as specified in accordance with Section
2.01 subject to the provisions of Section 4.02.

“principal” of a Security means the principal of the
Security plus, when appropriate, the premium, if any, on the Security.

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

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

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

“Responsible Officer” means any officer within the
corporate trust department of the Trustee having direct responsibility for the
administration of this Indenture or any other officer to whom any corporate
trust matter is referred because of such person’s knowledge of and familiarity
with the particular subject and who shall have direct responsibility for the
administration of this Indenture.

“Rule 144A Securities” means Securities of a series
designated pursuant to Section 2.01 as entitled to the benefits of
Section 4.03(b).

“SEC” means the Securities and Exchange Commission.

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

 5
 

“Security Custodian” means, with respect to Securities
of a series issued in global form, the Trustee for Securities of such series,
as custodian with respect to the Securities of such series, or any successor
entity thereto.

“Senior Indebtedness,” unless otherwise provided with
respect to the Securities of a series as contemplated by Section 2.01, means,
with respect to a series of Securities, (1) all Debt of the Issuers and, in the
case of a related Guarantee, the Subsidiary Guarantors, whether currently
outstanding or hereafter issued, unless, by the terms of the instrument
creating or evidencing such Debt, it is provided that such Debt is not superior
in right of payment to the Securities of such series, in the case of the
Issuers, or the related Guarantees, in the case of the Subsidiary Guarantors,
or to other Debt which is pari passu with
or subordinated to the Securities of such series, in the case of the Issuers,
or the related Guarantees, in the case of the Subsidiary Guarantors, and (2)
any modifications, refunding, deferrals, renewals, or extensions of any such
Debt or securities, notes or other evidence of Debt issued in exchange for such
Debt; provided that in no event shall “Senior Indebtedness” include (a) Debt
evidenced by the Securities of such series or any other series or any related
Guarantees, (b) Debt of any of the Subsidiary Guarantors or the Issuers owed or
owing to any Subsidiary of the Issuers, (c) Debt of any of the Subsidiary
Guarantors owed or owing to the Issuers, (d) Debt to trade creditors or (e) any
liability for taxes owed or owing by the Subsidiary Guarantors or the Issuers.

“Significant Subsidiary” means a Subsidiary of the
Partnership that is a “significant subsidiary” of the Partnership as such term
is defined in Rule 1-02(w) of Regulation S-X as in effect on the date
hereof.

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

“Subsidiary” of any
Person means:

(1)                                  any
corporation, association or other business entity of which more than 50% of the
total voting power of equity interests entitled, without regard to the
occurrence of any contingency, to vote in the election of directors, managers,
trustees or equivalent Persons thereof is at the time of determination owned or
controlled, directly or indirectly, by such Person or one or more of the other
Subsidiaries of such Person or any combination thereof; or

(2)                                  in
the case of a partnership, more than 50% of the partners’ equity interests,
considering all partners’ equity interests as a single class, is at such time
of determination owned or controlled, directly or indirectly, by such Person or
one or more of the other Subsidiaries of such Person or any combination
thereof.

“Subsidiary Guarantors” means, with respect to any
series of Securities, the Person or Persons, if any, named in accordance with
Section 2.01(9) as the “Subsidiary 

 6
 

Guarantors” (i) in or
pursuant to a Board Resolution, and set forth, or determined in the manner
provided, in an Officers’ Certificate or in an Issuer Order, or (ii) in an
indenture supplemental hereto establishing the terms of such series of
Securities until a successor Person or Persons shall have become such pursuant
to the applicable provisions of this Indenture, and thereafter “Subsidiary
Guarantors” with respect to such series of Securities shall mean such successor
Person or Persons, and any other Subsidiary of the Partnership who may execute
this Indenture, or a supplement thereto, for the purpose of providing a
Guarantee for such series of Securities pursuant to this Indenture.  If a series of Securities does not have any
Subsidiary Guarantors, all references in this Indenture to Subsidiary
Guarantors shall be ignored with respect to such series of Securities.

“surrender” shall have the same meaning as “deliver”
in the context of the surrender of a Security.

“TIA” means the Trust Indenture Act of 1939, as
amended, as in effect on the date hereof; provided, however, that, in the event the Trust Indenture Act of 1939
is amended after such date, “TIA” means, to the extent required by any such
amendment, the Trust Indenture Act of 1939 as so amended.

“Trustee” means the Person named as such above until a
successor replaces it in accordance with the applicable provisions of this
Indenture, and thereafter “Trustee” means each Person who is then a Trustee
hereunder, and if at any time there is more than one such Person, “Trustee” as
used with respect to the Securities of any series means the Trustee with
respect to Securities of that series.

“United States” means the United States of America
(including the States and the District of Columbia) and its territories and
possessions, which include Puerto Rico, the U.S. Virgin Islands, Guam, American
Samoa, Wake Island and the Northern Mariana Islands.

“U.S. Government Obligations” means Government
Obligations with respect to Securities payable in Dollars.

 7
 

SECTION
1.02                                                   Other Definitions.

	
  Term

  	
   

  	
  Defined

  in Section

  
	
  “Agent Members”

  	
   

  	
  2.17

  
	
  “Bankruptcy
  Custodian”

  	
   

  	
  6.01

  
	
  “Blockage
  Notice”

  	
   

  	
  10.03

  
	
  “covenant
  defeasance”

  	
   

  	
  8.01

  
	
  “Event of
  Default”

  	
   

  	
  6.01

  
	
  “Funding
  Guarantor”

  	
   

  	
  11.05

  
	
  “Judgment
  Currency”

  	
   

  	
  6.10

  
	
  “legal
  defeasance”

  	
   

  	
  8.01

  
	
  “mandatory
  sinking fund payment”

  	
   

  	
  3.09

  
	
  “Notation of
  Guarantee”

  	
   

  	
  11.02

  
	
  “optional
  sinking fund payment”

  	
   

  	
  3.09

  
	
  “pay the
  Subordinated Securities”

  	
   

  	
  10.03

  
	
  “Paying Agent”

  	
   

  	
  2.05

  
	
  “Payment
  Blockage Period”

  	
   

  	
  10.03

  
	
  “Registrar”

  	
   

  	
  2.05

  
	
  “Required
  Currency”

  	
   

  	
  6.10

  
	
  “Successor”

  	
   

  	
  5.01

  
	
  “Subordinated
  Securities”

  	
   

  	
  10.01

  

 

SECTION 1.03                                                   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
(and if the Indenture is not qualified under the TIA at the time, as if it were
so qualified unless otherwise provided). 
The following TIA terms used in this Indenture have the following
meanings:

“Commission” means the SEC.

“indenture securities” means the Securities.

“indenture security holder” means a Holder.

“indenture to be qualified” means this Indenture.

“indenture trustee” or “institutional trustee” means
the Trustee.

“obligor” on the indenture securities means the
Issuers, any Subsidiary Guarantor or any other obligor on the Securities.

All terms used in this Indenture that are defined by
the TIA, defined by a TIA reference to another statute or defined by an SEC
rule under the TIA have the meanings so assigned to them.

 8
 

SECTION 1.04                                                   Rules of Construction.

Unless the context
otherwise requires:

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

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

(3)                                  “or”
is not exclusive;

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

(5)                                  provisions
apply to successive events and transactions;

(6)                                  all
references in this instrument to Articles and Sections are references to the
corresponding Articles and Sections in and of this instrument; and

(7)                                  for
so long as the General Partner is a limited partnership, all references in this
instrument to directors, officers and employees of the General Partner shall
mean the directors, officers and employees of K-Sea GP (and its
successors and permitted assigns) acting for or on behalf of the General
Partner.

ARTICLE II

THE SECURITIES

SECTION 2.01                                                   Amount Unlimited; Issuable in Series.

The aggregate principal amount of Securities that may
be authenticated and delivered under this Indenture is unlimited.

The Securities may be issued in one or more
series.  There shall be established in or
pursuant to a Board Resolution, and set forth, or determined in the manner
provided, in an Officers’ Certificate or in an Issuer Order, or established in
one or more indentures supplemental hereto, prior to the issuance of Securities
of any series:

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

(2)           if there is to be a
limit, the limit upon the aggregate principal amount of the Securities of the
series that may be authenticated and delivered under this Indenture (except for
Securities authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Securities of the series pursuant to Section
2.08, 2.09, 2.12, 2.17, 3.07 or 9.05 and except for any Securities which,
pursuant to Section 2.04 or 2.17, are deemed never to have been authenticated
and delivered hereunder); provided, however, that
unless otherwise provided in the terms of the series, the authorized 

 9
 

aggregate
principal amount of such series may be increased before or after the issuance
of any Securities of the series by a Board Resolution (or action pursuant to a
Board Resolution) to such effect;

(3)           whether any
Securities of the series are to be issuable initially in temporary global form
and whether any Securities of the series are to be issuable in permanent global
form, as Global Securities or otherwise, and, if so, whether beneficial owners
of interests in any such Global Security may exchange such interests for
Securities of such series and of like tenor of any authorized form and
denomination and the circumstances under which any such exchanges may occur, if
other than in the manner provided in Section 2.17, and the initial
Depositary and Security Custodian, if any, for any Global Security or
Securities of such series;

(4)           the manner in which
any interest payable on a temporary Global Security on any Interest Payment
Date will be paid if other than in the manner provided in Section 2.14;

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

(6)           the rate or rates,
or the method of determination thereof, at which the Securities of the series
shall bear interest, if any, whether and under what circumstances Additional
Amounts with respect to such Securities shall be payable, the date or dates
from which such interest shall accrue, the Interest Payment Dates on which such
interest shall be payable and the record date for the interest payable on any
Securities on any Interest Payment Date, or if other than provided herein, the
Person to whom any interest on Securities of the series shall be payable;

(7)           the place or places
where, subject to the provisions of Section 4.02, the principal of, premium (if
any) and interest on and any Additional Amounts with respect to the Securities
of the series shall be payable;

(8)           the period or
periods within which, the price or prices (whether denominated in cash,
securities or otherwise) at which and the terms and conditions upon which
Securities of the series may be redeemed, in whole or in part, at the option of
the Issuers, if the Issuers are to have that option, and the manner in which
the Issuers must exercise any such option, if different from those set forth
herein;

(9)           whether Securities
of the series are entitled to the benefits of any Guarantee of any Subsidiary
Guarantor pursuant to this Indenture, the identity of any such Subsidiary
Guarantors and any terms of such Guarantee with respect to the Securities of
the series in addition to those set forth in Article XI, or any exceptions to
or changes to those set forth in Article XI;

(10)         the obligation, if
any, of the Issuers to redeem, purchase or repay Securities of the series
pursuant to any sinking fund or analogous provisions or at the option of a
Holder thereof and the period or periods within which, the price or prices
(whether denominated in cash, securities or otherwise) at which and the terms
and

 10

conditions
upon which Securities of the series shall be redeemed, purchased or repaid in
whole or in part pursuant to such obligation;

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

(12)         if other than Dollars, the form,
including equity securities, other debt securities (including Securities),
warrants or any other securities or property of the Issuers, any Subsidiary
Guarantor or any other Person, in which payment of the principal of, premium
(if any) and interest on and any Additional Amounts with respect to the
Securities of the series shall be payable;

(13)         if the amount of payments of principal
of, premium (if any) and interest on and any Additional Amounts with respect to
the Securities of the series may be determined with reference to any
commodities, currencies or indices, values, rates or prices or any other index
or formula, the manner in which such amounts shall be determined;

(14)         if other than the entire principal
amount thereof, the portion of the principal amount of Securities of the series
that shall be payable upon declaration of acceleration of the Maturity thereof
pursuant to Section 6.02;

(15)         any additional means of satisfaction
and discharge of this Indenture and any additional conditions or limitations to
discharge with respect to Securities of the series and the related Guarantees,
if any, pursuant to Article VIII or any modifications of or deletions from
such conditions or limitations;

(16)         any deletions or modifications of or
additions to the Events of Default set forth in Section 6.01 or covenants of
the Issuers or any Subsidiary Guarantor set forth in Article IV pertaining to
the Securities of the series;

(17)         any restrictions or other provisions
with respect to the transfer or exchange of Securities of the series, which may
amend, supplement, modify or supersede those contained in this Article II;

(18)         if the Securities of the series are to
be convertible into or exchangeable for common units, other debt securities
(including Securities), warrants, other equity securities or any other
securities or property of the Issuers, any Subsidiary Guarantor or any other
Person, at the option of the Issuers or the Holder or upon the occurrence of
any condition or event, the terms and conditions for such conversion or
exchange;

(19)         the subordination, if any, of the
Securities of the series pursuant to Article X and any changes or additions to
Article X or designation of any Designated Senior Indebtedness;

(20)         whether the Securities of the series
are to be entitled to the benefit of Section 4.03(b) (and accordingly
constitute Rule 144A Securities); and

 11
 

(21)         any other terms of the series (which
terms shall not be prohibited by the provisions of this Indenture).

All Securities of any one series shall be
substantially identical except as to denomination and except as may otherwise
be provided in or pursuant to the Board Resolution referred to above and
(subject to Section 2.03) set forth, or determined in the manner provided, in
the Officers’ Certificate or Issuer Order referred to above or in any such
indenture supplemental hereto.

If any of the terms of the series are established by
action taken pursuant to a Board Resolution, a copy of an appropriate record of
such action, together with such Board Resolution, shall be set forth in an
Officers’ Certificate or certified by the Secretary or an Assistant Secretary
of each of the General Partner and Finance Corp. and delivered to the Trustee
at or prior to the delivery of the Officers’ Certificate or Issuer Order
setting forth the terms of the series.

The Securities shall be subordinated in right of
payment to Senior Indebtedness as provided in Article X and/or as specified as
contemplated pursuant to this Section 2.01.

SECTION 2.02                                                   Denominations.

The Securities of each series shall be issuable in
such denominations as shall be specified as contemplated by Section 2.01.  In the absence of any such provisions with
respect to the Securities of any series, the Securities of such series
denominated in Dollars shall be issuable in denominations of $1,000 and any
integral multiples thereof.

SECTION 2.03                                                   Forms Generally.

The Securities of each series shall be in fully
registered form and in substantially such form or forms (including temporary or
permanent global form) established by or pursuant to a Board Resolution or in
one or more indentures supplemental hereto. 
The Securities may have notations, legends or endorsements required by
law, securities exchange rule, the Issuers’ certificate of limited partnership,
certificate of incorporation, agreement of limited partnership, bylaws or other
similar governing documents, agreements to which the Issuers are subject, if
any, or usage (provided that any such notation, legend or endorsement is in a
form acceptable to the Issuers).  A copy
of the Board Resolution establishing the form or forms of Securities of any
series shall be delivered to the Trustee at or prior to the delivery of the
Issuer Order contemplated by Section 2.04 for the authentication and delivery
of such Securities.

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

 12
 

The Trustee’s certificate
of authentication shall be in substantially the following form:

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

	
  

  	
  [                                            ],
  as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized
  Officer”.

  

 

SECTION 2.04                                                   Execution, Authentication, Delivery and Dating.

Two Officers of each of the Issuers shall sign the
Securities on behalf of the each Issuer and, with respect to any related
Guarantees, an Officer of each Subsidiary Guarantor shall sign the Notation of
Guarantee on behalf of such Subsidiary Guarantor, in each case by manual or
facsimile signature.

If an Officer of the Issuers or a Subsidiary Guarantor
whose signature is on a Security no longer holds that office at the time the
Security or the Notation of Guarantee, as the case may be, is authenticated,
the Security shall be valid nevertheless.

A Security shall not be entitled to any benefit under
this Indenture or the related Guarantees, if any, or be valid or obligatory for
any purpose until authenticated by the manual signature of an authorized
signatory of the Trustee, which signature shall be conclusive evidence that the
Security has been authenticated under this Indenture.  Notwithstanding the foregoing, if any
Security has been authenticated and delivered hereunder but never issued and
sold by the Issuers, and the Issuers deliver such Security to the Trustee for
cancellation as provided in Section 2.13, together with a written statement
(which need not comply with Section 12.05 and need not be accompanied by an
Opinion of Counsel) stating that such Security has never been issued and sold
by the Issuers, for all purposes of this Indenture such Security shall be
deemed never to have been authenticated and delivered hereunder and shall never
be entitled to the benefits of this Indenture or the related Guarantees, if
any.

At any time and from time to time after the execution
and delivery of this Indenture, the Issuers may deliver Securities of any
series executed by the Issuers (and if applicable, the Notation of Guarantee
for such series executed by each Subsidiary Guarantor with respect to such
series) to the Trustee for authentication, and the Trustee shall authenticate
and deliver such Securities for original issue upon an Issuer Order for the
authentication and delivery of such Securities or pursuant to such procedures
acceptable to the Trustee as may be specified from time to time by Issuer
Order.  Such order shall specify the
amount of the Securities to be authenticated, the date on which the original
issue of Securities is to be authenticated, the name or names of the initial Holder
or Holders and any other terms of the Securities of such series not otherwise
determined.  If provided for in such
procedures, such Issuer Order may authorize (1) authentication and delivery of
Securities of such series for original issue from time to time, with certain
terms (including, without limitation, the Maturity dates or dates, original
issue date or dates and interest rate or rates) that differ from Security to
Security and (2) may authorize authentication and delivery pursuant to oral or
electronic 

 13
 

instructions from the
Issuers or their duly authorized agent, which instructions shall be promptly
confirmed in writing.

If the form or terms of the Securities of the series
have been established in or pursuant to one or more Board Resolutions as
permitted by Section 2.01, in authenticating such Securities, and accepting the
additional responsibilities under this Indenture in relation to such
Securities, the Trustee shall be entitled to receive (in addition to the Issuer
Order referred to above and the other documents required by Section 12.04), and
(subject to Section 7.01) shall be fully protected in relying upon:

(a)           an Officers’ Certificate setting
forth the Board Resolution and, if applicable, an appropriate record of any
action taken pursuant thereto, as contemplated by the last paragraph of
Section 2.01; and

(b)           an Opinion of Counsel to the effect
that:

(i)            the form of such Securities has been
established in conformity with the provisions of this Indenture;

(ii)           the terms of such Securities have
been established in conformity with the provisions of this Indenture; and

(iii)          that such Securities and the related
Guarantees, if any, when authenticated and delivered by the Trustee and issued
by the Issuers in the manner and subject to any conditions specified in such
Opinion of Counsel, will constitute valid and binding obligations of the
Issuers and the Subsidiary Guarantors, respectively, enforceable against the
Issuers and the Subsidiary Guarantors, respectively, in accordance with their
respective terms, except as the enforceability thereof may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance or transfer or other similar laws in effect from time to time
affecting the rights of creditors generally, and the application of general
principles of equity (regardless of whether such enforceability is considered
in a proceeding in equity or at law).

If all the Securities of any series are not to be
issued at one time, it shall not be necessary to deliver an Officers’
Certificate and Opinion of Counsel at the time of issuance of each such
Security, but such Officers’ Certificate and Opinion of Counsel shall be
delivered at or before the time of issuance of the first Security of the series
to be issued.

The Trustee shall not be required to authenticate such
Securities if the issuance of such Securities pursuant to this Indenture would
affect the Trustee’s own rights, duties or immunities under the Securities and
this Indenture or otherwise in a manner not reasonably acceptable to the
Trustee.

The Trustee may appoint an authenticating agent
acceptable to the Issuers to authenticate Securities.  Unless limited by the terms of such
appointment, an authenticating agent may authenticate Securities whenever the
Trustee may do so.  Each reference in
this Indenture to authentication by the Trustee includes authentication by such
agent.  An authenticating agent has 

 14
 

the same rights as an
Agent to deal with the Issuers, any Subsidiary Guarantor or an Affiliate of the
Issuers or any Subsidiary Guarantor.

Each Security shall be dated the date of its
authentication.

SECTION 2.05                                                   Registrar and Paying Agent.

The Issuers shall maintain an office or agency for
each series of Securities where Securities of such series may be presented for
registration of transfer or exchange (“Registrar”) and an office or agency
where Securities of such series may be presented for payment (“Paying Agent”).  The Registrar shall keep a register of the
Securities of such series and of their transfer and exchange.  The Issuers may appoint one or more
co-registrars and one or more additional paying agents.  The term “Registrar” includes any
co-registrar and the term “Paying Agent” includes any additional paying agent.

The Issuers shall enter into an appropriate agency
agreement with any Registrar or Paying Agent not a party to this
Indenture.  The agreement shall implement
the provisions of this Indenture that relate to such Agent.  The Issuers shall notify the Trustee of the
name and address of any Agent not a party to this Indenture.  The Issuers may change any Paying Agent or
Registrar without notice to any Holder. 
If the Issuers fails to appoint or maintain another entity as Registrar
or Paying Agent, the Trustee shall act as such. 
The Issuers, any Subsidiary Guarantor or any other Subsidiary may act as
Paying Agent or Registrar.

The Issuers initially appoint the Trustee as Registrar
and Paying Agent.

SECTION 2.06                                                   Paying Agent to Hold Money in Trust.

The Issuers shall require each Paying Agent other than
the Trustee to agree in writing that the Paying Agent will hold in trust for
the benefit of Holders or the Trustee all money held by the Paying Agent for
the payment of principal of, premium, if any, or interest on or any Additional
Amounts with respect to Securities and will notify the Trustee of any default
by the Issuers in making any such payment. 
While any such default continues, the Trustee may require a Paying Agent
to pay all money held by it to the Trustee and to account for any funds disbursed.  The Issuers at any time may require a Paying
Agent to pay all money held by it to the Trustee and to account for any funds
disbursed.  Upon payment over to the
Trustee and upon accounting for any funds disbursed, the Paying Agent (if other
than the Issuers, a Subsidiary Guarantor or another Subsidiary of the Issuers)
shall have no further liability for the money. 
If the Issuers, a Subsidiary Guarantor or another Subsidiary of the
Issuers acts as Paying Agent, it shall segregate and hold in a separate trust
fund for the benefit of the Holders all money held by it as Paying Agent.  Each Paying Agent shall otherwise comply with
TIA § 317(b).

SECTION 2.07                                                   Holder Lists.

The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and
addresses of Holders and shall otherwise comply with TIA § 312(a).  If the Trustee is not the Registrar with
respect to a series of Securities, the Issuers shall furnish to the Trustee at
least five Business Days before each Interest Payment Date with respect to such
series of Securities, and at such other times as the Trustee may request in 

 15
 

writing, a list in such
form and as of such date as the Trustee may reasonably require of the names and
addresses of Holders of such series, and the Issuers shall otherwise comply
with TIA § 312(a).

SECTION 2.08                                                   Transfer and Exchange.

Except as set forth in
Section 2.17 or as may be provided pursuant to Section 2.01:

When Securities of any series are presented to the
Registrar with the request to register the transfer of such Securities or to
exchange such Securities for an equal principal amount of Securities of the
same series of like tenor and of other authorized denominations, the Registrar
shall register the transfer or make the exchange as requested if its requirements
and the requirements of this Indenture for such transactions are met; provided, however, that the Securities presented or
surrendered for registration of transfer or exchange shall be duly endorsed or
accompanied by a written instruction of transfer in form reasonably
satisfactory to the Registrar duly executed by the Holder thereof or by his
attorney, duly authorized in writing, on which instruction the Registrar can
rely.

To permit registrations of transfers and exchanges,
the Issuers shall execute Securities (and if applicable, each Subsidiary
Guarantor with respect to such series shall execute the Notation of Guarantee
for such series) and the Trustee shall authenticate such Securities at the
Registrar’s written request and submission of the Securities or Global
Securities.  No service charge shall be
made to a Holder for any registration of transfer or exchange (except as
otherwise expressly permitted herein), but the Issuers may require payment of a
sum sufficient to cover any transfer tax or similar governmental charge payable
in connection therewith (other than such transfer tax or similar governmental
charge payable upon exchanges pursuant to Section 2.12, 3.07 or 9.05). The
Trustee shall authenticate such Securities in accordance with the provisions of
Section 2.04.  Notwithstanding any other
provisions of this Indenture to the contrary, the Issuers shall not be required
to register the transfer or exchange of (a) any Security selected for
redemption in whole or in part pursuant to Article III, except the unredeemed
portion of any Security being redeemed in part, or (b) any Security during the
period beginning 15 Business Days prior to the mailing of notice of any offer
to repurchase Securities of the series required pursuant to the terms thereof
or of redemption of Securities of a series to be redeemed and ending at the
close of business on the day of mailing.

SECTION 2.09                                                   Replacement Securities.

If any mutilated Security is surrendered to the
Trustee, or if the Holder of a Security claims that the Security has been
destroyed, lost or stolen and the Issuers and the Trustee receive evidence to
their satisfaction of the destruction, loss or theft of such Security, the
Issuers shall issue, each Subsidiary Guarantor with respect to such series shall
execute the Notation of Guarantee relating to such Security, if any, and the
Trustee shall authenticate a replacement Security of the same series if the
Trustee’s requirements are met.  If any
such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Issuers in their discretion may, instead of issuing
a new Security, pay such Security.  If
required by the Trustee, any Subsidiary Guarantor or the Issuers, such Holder must
furnish an 

 16
 

indemnity bond that is sufficient
in the judgment of the Trustee and the Issuers to protect the Issuers, each
Subsidiary Guarantor, the Trustee, any Agent or any authenticating agent from
any loss that any of them may suffer if a Security is replaced.  The Issuers and the Trustee may charge a
Holder for their expenses in replacing a Security.

Every replacement Security is an additional obligation
of the Issuers.

SECTION 2.10                                                   Outstanding Securities.

The Securities outstanding at any time are all the
Securities authenticated by the Trustee except for those canceled by it, those
delivered to it for cancellation, those reductions in the interest in a Global
Security effected by the Trustee hereunder and those described in this
Section 2.10 as not outstanding.

If a Security is replaced pursuant to Section 2.09, it
ceases to be outstanding unless the Trustee receives proof satisfactory to it
that the replaced Security is held by a bona fide purchaser.

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

A Security does not cease to be outstanding because
the Issuers, a Subsidiary Guarantor or an Affiliate of the Issuers or a
Subsidiary Guarantor holds the Security.

SECTION 2.11                                                   Original Issue Discount and Treasury Securities.

In determining whether the Holders of the required
principal amount of Securities have concurred in any direction, amendment,
supplement, waiver or consent, (a) the principal amount of an Original
Issue Discount Security shall be the principal amount thereof that would be due
and payable as of the date of such determination upon acceleration of the
Maturity thereof pursuant to Section 6.02 and (b) Securities owned by the
Issuers, a Subsidiary Guarantor or any other obligor upon the Securities or any
Affiliate of the Issuers, of a Subsidiary Guarantor or of such other obligor
shall be disregarded, except that, for the purpose of determining whether the
Trustee shall be protected in relying upon any such direction, amendment, supplement,
waiver or consent, only Securities that a Responsible Officer of the Trustee
actually knows are so owned shall be so disregarded.

SECTION 2.12                                                   Temporary Securities.

Until definitive Securities of any series are ready
for delivery, the Issuers may prepare and execute temporary Securities, each
Subsidiary Guarantor with respect to such series shall execute the Notation of
Guarantee relating to such Security relating to such temporary Securities, if
any, and the Trustee shall authenticate temporary Securities.  Temporary Securities shall be substantially
in the form of definitive Securities, but may have variations that the Issuers
consider appropriate for temporary Securities. 
Without unreasonable delay, the Issuers shall prepare and execute
definitive Securities, each Subsidiary Guarantor with respect to such series
shall execute the Notation of Guarantee relating to such definitive Security,
if any, and the Trustee shall authenticate such definitive Securities in
exchange for temporary Securities.  Until

 17
 

so exchanged, the temporary Securities shall in all
respects be entitled to the same benefits under this Indenture as definitive
Securities.

SECTION 2.13                                                   Cancellation.

The Issuers or any Subsidiary Guarantor at any time
may deliver Securities to the Trustee for cancellation.  The Registrar and the Paying Agent shall
forward to the Trustee any Securities surrendered to them for registration of
transfer, exchange, payment or redemption or for credit against any sinking
fund payment.  The Trustee shall cancel
all Securities surrendered for registration of transfer, exchange, payment,
redemption, replacement or cancellation or for credit against any sinking
fund.  Unless the Issuers shall direct in
writing that canceled Securities be returned to it, after written notice to the
Issuers all canceled Securities held by the Trustee shall be disposed of in
accordance with the usual disposal procedures of the Trustee, and the Trustee
shall maintain a record of their disposal. 
The Issuers may not issue new Securities to replace Securities that have
been paid or that have been delivered to the Trustee for cancellation.

SECTION 2.14                                                   Payments; Defaulted Interest.

Unless otherwise provided as contemplated by
Section 2.01, interest (except defaulted interest) on any Security that is
payable, and is punctually paid or duly provided for, on any Interest Payment
Date shall be paid to the Persons who are registered Holders of that Security
at the close of business on the record date next preceding such Interest
Payment Date, even if such Securities are canceled after such record date and
on or before such Interest Payment Date. 
The Holder must surrender a Security to a Paying Agent to collect
principal payments.  Unless otherwise
provided with respect to the Securities of any series, the Issuers will pay the
principal of, premium (if any) and interest on and any Additional Amounts with
respect to the Securities in Dollars. 
Such amounts shall be payable at the offices of the Trustee or any
Paying Agent, provided that at the option of
the Issuers, the Issuers may pay such amounts (1) by wire transfer with respect
to Global Securities or (2) by check payable in such money mailed to a Holder’s
registered address with respect to any Securities.

If the Issuers default in a payment of interest on the
Securities of any series, the Issuers shall pay the defaulted interest in any
lawful manner plus, to the extent lawful, interest on the defaulted interest,
in each case at the rate provided in the Securities of such series and in Section
4.01.  The Issuers may pay the defaulted
interest to the Persons who are Holders on a subsequent special record
date.  At least 15 days before any
special record date selected by the Issuers, the Issuers (or the Trustee, in
the name of and at the expense of the Issuers upon 20 days’ prior written
notice from the Issuers setting forth such special record date and the interest
amount to be paid) shall mail to Holders a notice that states the special
record date, the related payment date and the amount of such interest to be
paid.

SECTION 2.15                                                   Persons Deemed Owners.

The Issuers, the Subsidiary Guarantors, the Trustee,
any Agent and any authenticating agent may treat the Person in whose name any
Security is registered as the owner of such Security for the purpose of
receiving payments of principal of, premium (if any) or interest on or any
Additional Amounts with respect to such Security and for all other
purposes.  

 18
 

None of the Issuers, any Subsidiary Guarantor, the
Trustee, any Agent or any authenticating agent shall be affected by any notice
to the contrary.

SECTION 2.16                                                   Computation of Interest.

Except as otherwise specified as contemplated by
Section 2.01 for Securities of any series, interest on the Securities of each
series shall be computed on the basis of a year comprising twelve 30-day
months.

SECTION 2.17                                                   Global Securities; Book-Entry Provisions.

If Securities of a series are issuable in global form
as a Global Security, as contemplated by Section 2.01, then,
notwithstanding clause (11) of Section 2.01 and the provisions of
Section 2.02, any such Global Security shall represent such of the
outstanding Securities of such series as shall be specified therein and may
provide that it shall represent the aggregate amount of outstanding Securities
from time to time endorsed thereon and that the aggregate amount of outstanding
Securities represented thereby may from time to time be reduced or increased,
as appropriate, to reflect exchanges, transfers or redemptions.  Any endorsement of a Global Security to reflect
the amount, or any increase or decrease in the amount, of outstanding
Securities represented thereby shall be made by the Trustee (i) in such manner
and upon instructions given by such Person or Persons as shall be specified in
such Security or in an Issuer Order to be delivered to the Trustee pursuant to
Section 2.04 or (ii) otherwise in accordance with written instructions or
such other written form of instructions as is customary for the Depositary for
such Security, from such Depositary or its nominee on behalf of any Person
having a beneficial interest in such Global Security.  Subject to the provisions of Section 2.04
and, if applicable, Section 2.12, the Trustee shall deliver and redeliver any
Security in permanent global form in the manner and upon instructions given by
the Person or Persons specified in such Security or in the applicable Issuer
Order.  With respect to the Securities of
any series that are represented by a Global Security, the Issuers and the
Subsidiary Guarantors authorize the execution and delivery by the Trustee of a
letter of representations or other similar agreement or instrument in the form
customarily provided for by the Depositary appointed with respect to such
Global Security.  Any Global Security may
be deposited with the Depositary or its nominee, or may remain in the custody
of the Trustee or the Security Custodian therefor pursuant to a FAST Balance
Certificate Agreement or similar agreement between the Trustee and the
Depositary.  If an Issuer Order has been,
or simultaneously is, delivered, any instructions by the Issuers with respect
to endorsement or delivery or redelivery of a Security in global form shall be
in writing but need not comply with Section 12.05 and need not be accompanied
by an Opinion of Counsel.

Members of, or participants in, the Depositary (“Agent
Members”) shall have no rights under this Indenture with respect to any Global
Security held on their behalf by the Depositary, or the Trustee or the Security
Custodian as its custodian, or under such Global Security, and the Depositary
may be treated by the Issuers, any Subsidiary Guarantor, the Trustee or the
Security Custodian and any agent of the Issuers, any Subsidiary Guarantor, the
Trustee or the Security Custodian as the absolute owner of such Global Security
for all purposes whatsoever. 
Notwithstanding the foregoing, (i) the registered holder of a Global
Security of a series may grant proxies and otherwise authorize any Person,
including Agent Members and 

 19
 

Persons that may hold interests through Agent Members,
to take any action that a Holder of Securities of such series is entitled to
take under this Indenture or the Securities of such series and (ii) nothing
herein shall prevent the Issuers, any Subsidiary Guarantor, the Trustee or the
Security Custodian, or any agent of the Issuers, any Subsidiary Guarantor, the
Trustee or the Security Custodian, from giving effect to any written
certification, proxy or other authorization furnished by the Depositary or
shall impair, as between the Depositary and its Agent Members, the operation of
customary practices governing the exercise of the rights of a beneficial owner
of any Security.

Notwithstanding Section 2.08, and except as otherwise
provided pursuant to Section 2.01, transfers of a Global Security shall be
limited to transfers of such Global Security in whole, but not in part, to the
Depositary, its successors or their respective nominees.  Interests of beneficial owners in a Global
Security may be transferred in accordance with the rules and procedures of the
Depositary.  Securities shall be
transferred to all beneficial owners in exchange for their beneficial interests
in a Global Security if, and only if, either (1) the Depositary notifies the
Issuers that it is unwilling or unable to continue as Depositary for the Global
Security and a successor Depositary is not appointed by the Issuers within 90
days of such notice, (2) an Event of Default has occurred with respect to such
series and is continuing and the Registrar has received a request from the Depositary
to issue Securities in lieu of all or a portion of the Global Security (in
which case the Issuers shall deliver Securities within 30 days of such request)
or (3) the Issuers in their sole discretion determines not to have the
Securities represented by a Global Security.

In connection with any transfer of a portion of the
beneficial interests in a Global Security to beneficial owners pursuant to this
Section 2.17, the Registrar shall reflect on its books and records the date and
a decrease in the principal amount of the Global Security in an amount equal to
the principal amount of the beneficial interests in the Global Security to be
transferred, and the Issuers shall execute, each Subsidiary Guarantor with
respect to such series shall execute the Notation of Guarantee relating to such
Global Security, if any, and the Trustee upon receipt of an Issuer Order for
the authentication and delivery of Securities shall authenticate and deliver,
one or more Securities of the same series of like tenor and amount.

In connection with the transfer of all of the
beneficial interests in a Global Security to beneficial owners pursuant to this
Section 2.17, the Global Security shall be deemed to be surrendered to the
Trustee for cancellation, and the Issuers shall execute, each Subsidiary
Guarantor with respect to such series shall execute the Notation of Guarantee
relating to such Global Security, if any, and the Trustee shall authenticate
and deliver, to each beneficial owner identified by the Depositary in exchange
for its beneficial interests in the Global Security, an equal aggregate
principal amount of Securities of authorized denominations.

None of the Issuers, any Subsidiary Guarantor or the
Trustee will have any responsibility or liability for any aspect of the records
relating to, or payments made on account of, Securities by the Depositary, or
for maintaining, supervising or reviewing any records of the Depositary
relating to such Securities.  None of the
Issuers, any Subsidiary Guarantor or the Trustee shall be liable for any delay
by the Holder of the Global Security or the Depositary in identifying the
beneficial owners, and each such Person may conclusively rely on, and shall be
protected in relying on, instructions from such Holder of the Global Security or
the Depositary

 20

for all
purposes (including with respect to the registration and delivery, and the
respective principal amounts, of the Securities to be issued).

The provisions of
the last sentence of the third paragraph of Section 2.04 shall apply to any
Global Security if such Global Security was never issued and sold by the
Issuers and the Issuers or a Subsidiary Guarantor delivers to the Trustee the
Global Security together with written instructions (which need not comply with
Section 12.05 and need not be accompanied by an Opinion of Counsel) with regard
to the cancellation or reduction in the principal amount of Securities
represented thereby, together with the written statement contemplated by the
last sentence of the third paragraph of Section 2.04.

Notwithstanding the
provisions of Sections 2.03 and 2.14, unless otherwise specified as
contemplated by Section 2.01, payment of principal of, premium (if any) and
interest on and any Additional Amounts with respect to any Global Security
shall be made to the Depositary.

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

Notwithstanding
anything herein to the contrary, delivery or surrender of a Security shall not
be required in the case of Global Securities in order to obtain the rights or
benefits provided hereunder upon the delivery or surrender of a Security.

ARTICLE III

REDEMPTION

SECTION 3.01                                                   Applicability of Article.

Securities of any
series that are redeemable before their Stated Maturity shall be redeemable in
accordance with their terms and (except as otherwise specified as contemplated
by Section 2.01 for Securities of any series) in accordance with this Article
III.

SECTION 3.02                                                   Notice to the Trustee.

If the Issuers
elect to redeem Securities of any series pursuant to this Indenture, it shall
notify the Trustee of the Redemption Date and the principal amount of
Securities of such series to be redeemed. 
The Issuers shall so notify the Trustee at least 45 days before the
Redemption Date (unless a shorter notice shall be satisfactory to the Trustee)
by delivering to the Trustee an Officers’ Certificate stating that such
redemption will comply with the provisions of this Indenture and of the
Securities of such series.  Any such
notice may be canceled at any time prior to the mailing of such notice of such
redemption to any Holder and shall thereupon be void and of no effect.

 21
 

 

SECTION 3.03                                                   Selection of Securities To Be Redeemed.

If less than all
of the Securities of any series are to be redeemed (unless all of the
Securities of such series of a specified tenor are to be redeemed), the
particular Securities to be redeemed shall be selected not more than 60 days
prior to the Redemption Date by the Trustee from the outstanding Securities of
such series (and tenor) not previously called for redemption, either pro rata,
by lot or by such other method as the Trustee shall deem appropriate in
accordance with industry standards at the time of such redemption and that may
provide for the selection for redemption of portions (equal to the minimum
authorized denomination for Securities of that series or any integral multiple
thereof) of the principal amount of Securities of such series of a denomination
larger than the minimum authorized denomination for Securities of that series
or of the principal amount of Global Securities of such series; provided that, if at the time of redemption such Securities
are registered as a Global Security, the Depositary shall determine, in
accordance with its procedures, the principal amount of such Securities held by
each beneficial owner of Securities to be redeemed.

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

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

SECTION 3.04                                                   Notice of Redemption.

Notice of redemption
shall be given by first-class mail, postage prepaid, mailed not less than 30
nor more than 60 days prior to the Redemption Date, to each Holder of
Securities to be redeemed, at the address of such Holder appearing in the
register of Securities maintained by the Registrar.

All
notices of redemption shall identify the Securities to be redeemed and shall
state:

(1)           the Redemption Date;

(2)           the Redemption Price (or the method
of calculating or determining the Redemption Price);

(3)           that, unless the Issuers and the
Subsidiary Guarantors default in making the redemption payment, interest on
Securities called for redemption ceases to accrue on and after the Redemption
Date, and the only remaining right of the Holders of such Securities is to
receive payment of the Redemption Price upon surrender to the Paying Agent of
the Securities redeemed;

(4)           if any Security is to be redeemed in
part, the portion of the principal amount thereof to be redeemed and that on
and after the Redemption Date, upon 

 22
 

surrender for
cancellation of such Security to the Paying Agent, a new Security or Securities
in the aggregate principal amount equal to the unredeemed portion thereof will
be issued without charge to the Holder;

(5)           that Securities called for redemption
must be surrendered to the Paying Agent to collect the Redemption Price and the
name and address of the Paying Agent;

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

(7)           the CUSIP number, if any, relating to
such Securities.

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

SECTION 3.05                                                   Effect of Notice of Redemption.

Once notice of
redemption is mailed, Securities called for redemption become due and payable
on the Redemption Date and at the Redemption Price.  Upon surrender to the Paying Agent, such
Securities called for redemption shall be paid at the Redemption Price, but interest
installments whose maturity is on or prior to such Redemption Date will be
payable on the relevant Interest Payment Dates to the Holders of record at the
close of business on the relevant record dates specified pursuant to Section
2.01.

SECTION 3.06                                                   Deposit of Redemption Price.

By 11:00 a.m., New
York City time, on any Redemption Date, the Issuers or a Subsidiary Guarantor
shall deposit with the Trustee or the Paying Agent (or, if either of the
Issuers or such Subsidiary Guarantor is acting as the Paying Agent, segregate
and hold in trust as provided in Section 2.06) an amount of money in same
day funds sufficient to pay the Redemption Price of, and (except if the
Redemption Date shall be an Interest Payment Date) accrued interest on and any
Additional Amounts with respect to, the Securities or portions thereof which
are to be redeemed on that date, other than Securities or portions thereof
called for redemption on that date which have been delivered by the Issuers or
a Subsidiary Guarantor to the Trustee for cancellation.

If the Issuers or
a Subsidiary Guarantor complies with the preceding paragraph, then, unless the
Issuers and the Subsidiary Guarantors default in the payment of such Redemption
Price, interest on the Securities to be redeemed will cease to accrue on and
after the applicable Redemption Date, whether or not such Securities are
presented for payment, and the Holders of such Securities shall have no further
rights with respect to such Securities except for the right to receive the
Redemption Price upon surrender of such Securities.  If any Security called for redemption shall
not be so paid upon surrender thereof for redemption, the principal, premium,
if any, any Additional Amounts, and, to the extent lawful, accrued interest
thereon shall, until paid, bear interest from the Redemption Date at the rate
specified pursuant to Section 2.01 or provided in the Securities or, in the
case of Original Issue Discount Securities, such Securities’ yield to maturity.

 23
 

 

SECTION 3.07                                                   Securities Redeemed in Part.

Upon surrender to
the Paying Agent of a Security to be redeemed in part, the Issuers shall
execute, each Subsidiary Guarantor with respect to such series shall execute
the Notation of Guarantee relating to such Security, if any, and the Trustee shall
authenticate and deliver to the Holder of such Security without service charge
a new Security or Securities, of the same series and of any authorized
denomination as requested by such Holder in aggregate principal amount equal
to, and in exchange for, the unredeemed portion of the principal of the
Security so surrendered that is not redeemed.

SECTION 3.08                                                   Purchase of Securities.

Unless otherwise
specified as contemplated by Section 2.01, the Issuers, any Subsidiary
Guarantor and any Affiliate of the Issuers or any Subsidiary Guarantor may at
any time purchase or otherwise acquire Securities in the open market or by
private agreement.  Any such acquisition
shall not operate as or be deemed for any purpose to be a redemption of the
indebtedness represented by such Securities. 
Any Securities purchased or acquired by the Issuers or a Subsidiary
Guarantor may be delivered to the Trustee and, upon such delivery, the
indebtedness represented thereby shall be deemed to be satisfied.  Section 2.13 shall apply to all Securities so
delivered.

SECTION 3.09                                                   Mandatory and Optional Sinking Funds.

The minimum amount
of any sinking fund payment provided for by the terms of Securities of any
series is herein referred to as a “mandatory sinking fund payment,” and any
payment in excess of such minimum amount provided for by the terms of
Securities of any series is herein referred to as an “optional sinking fund
payment.”  Unless otherwise provided by
the terms of Securities of any series, the cash amount of any sinking fund payment
may be subject to reduction as provided in Section 3.10.  Each sinking fund payment shall be applied to
the redemption of Securities of any series as provided for by the terms of
Securities of such series and by this Article III.

SECTION 3.10                                                   Satisfaction of Sinking Fund Payments with Securities.

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

 24
 

 

SECTION 3.11                                                   Redemption of Securities for Sinking Fund.

Not less than 45
days prior (unless a shorter period shall be satisfactory to the Trustee) to
each sinking fund payment date for any series of Securities, the Issuers will
deliver to the Trustee an Officers’ Certificate specifying the amount of the next
ensuing sinking fund payment for that series pursuant to the terms of that
series, the portion thereof, if any, which is to be satisfied by payment of
cash and the portion thereof, if any, which is to be satisfied by delivery of
or by crediting Securities of that series pursuant to Section 3.10 and will
also deliver or cause to be delivered to the Trustee any Securities to be so
delivered.  Failure of the Issuers to
timely deliver or cause to be delivered such Officers’ Certificate and
Securities specified in this paragraph, if any, shall not constitute a default
but shall constitute the election of the Issuers (i) that the mandatory sinking
fund payment for such series due on the next succeeding sinking fund payment
date shall be paid entirely in cash without the option to deliver or credit
Securities of such series in respect thereof and (ii) that the Issuers will
make no optional sinking fund payment with respect to such series as provided
in this Section 3.11.

If the sinking
fund payment or payments (mandatory or optional or both) to be made in cash on
the next succeeding sinking fund payment date plus any unused balance of any
preceding sinking fund payments made in cash shall exceed $100,000 or a lesser
sum if the Issuers shall so request with respect to the Securities of any
particular series, such cash shall be applied on the next succeeding sinking
fund payment date to the redemption of Securities of such series at the sinking
fund redemption price together with accrued interest to the date fixed for
redemption.  If such amount shall be
$100,000 or less and the Issuers make no such request then it shall be carried
over until a sum in excess of $100,000 is available.  Not less than 30 days before each such
sinking fund payment date, the Trustee shall select the Securities to be
redeemed upon such sinking fund payment date in the manner specified in Section
3.03 and cause notice of the redemption thereof to be given in the name of and
at the expense of the Issuers in the manner provided in Section 3.04.  Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Sections 3.05, 3.06 and 3.07.

ARTICLE IV

COVENANTS

SECTION 4.01                                                   Payment of Securities.

The Issuers shall
pay the principal of, premium (if any) and interest on and any Additional
Amounts with respect to the Securities of each series on the dates and in the
manner provided in the Securities of such series and in this Indenture.  Principal, premium, interest and any
Additional Amounts shall be considered paid on the date due if the Paying Agent
(other than the Issuers, a Subsidiary Guarantor or a Subsidiary) holds by 11:00
a.m., New York City time, on that date money deposited by the Issuers or a
Subsidiary Guarantor designated for and sufficient to pay all principal,
premium, interest and any Additional Amounts then due.

The Issuers shall
pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal and premium (if any), at a rate equal to
the then applicable interest rate on the Securities to the extent lawful; and
it shall pay interest 

 25
 

(including
post-petition interest in any proceeding under any Bankruptcy Law) on
overdue installments of interest and any Additional Amount (without regard to
any applicable grace period) at the same rate to the extent lawful.

SECTION 4.02                                                   Maintenance of Office or Agency.

The Issuers will
maintain in each Place of Payment for any series of Securities an office or
agency (which may be an office of the Trustee, the Registrar or the Paying
Agent) where Securities of that series may be presented for registration of
transfer or exchange, where Securities of that series may be presented for
payment and where notices and demands to or upon the Issuers or a Subsidiary
Guarantor in respect of the Securities of that series and this Indenture may be
served. Unless otherwise designated by the Issuers by written notice to the
Trustee and the Subsidiary Guarantors, such office or agency shall be the
office of the Trustee in The City of New York, which on the date hereof is
located at
                                       .  The Issuers will give prompt written notice
to the Trustee and the Subsidiary Guarantors of the location, and any change in
the location, of such office or agency. 
If at any time the Issuers shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee and the Subsidiary
Guarantors with the address thereof, such presentations, surrenders, notices
and demands may be made or served at the Corporate Trust Office of the Trustee.

The Issuers may
also from time to time designate one or more other offices or agencies where
the Securities of one or more series may be presented or surrendered for any or
all such purposes and may from time to time rescind such designations; provided, however, that no such designation or rescission
shall in any manner relieve the Issuers of their obligation to maintain an
office or agency in each Place of Payment for Securities of any series for such
purposes.  The Issuers will give prompt
written notice to the Trustee of any such designation or rescission and of any
change in the location of any such other office or agency.

SECTION 4.03                                                   SEC Reports; Financial Statements.

(a)           If
the Partnership is subject to Section 13 or 15(d) of the Exchange Act, the
Partnership shall file with the Trustee, within 15 days after it files the same
with the SEC, copies of the annual reports and the information, documents and
other reports (or copies of such portions of any of the foregoing as the SEC
may by rules and regulations prescribe) that the Partnership is required to
file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act.  If this Indenture is qualified under the TIA,
but not otherwise, the Partnership shall also comply with the provisions of TIA
§ 314(a).

(b)           If
the Partnership is not subject to the requirements of Section 13 or 15(d) of
the Exchange Act, the Partnership shall furnish to all Holders of Rule 144A
Securities and prospective purchasers of Rule 144A Securities designated by the
Holders of Rule 144A Securities, promptly upon their request, the information
required to be delivered pursuant to Rule 144A(d)(4) promulgated under the
Securities Act of 1933, as amended.

(c)           The
Partnership intends to file the reports, information and documents referred to
in Section 4.03(a) hereof with the SEC in electronic form pursuant to
Regulation S-T promulgated by the SEC using the SEC’s Electronic Data
Gathering, Analysis and Retrieval 

 26
 

(“EDGAR”) system.  The
Partnership shall notify the Trustee in the manner prescribed herein of each
such filing.  The Trustee is hereby
authorized and directed to access the EDGAR system for purposes of retrieving
the reports so filed.  Compliance with
the foregoing shall constitute delivery by the Partnership of such reports to
the Trustee in compliance with the provisions of TIA § 314(a).  The Trustee shall have no duty to search for
or obtain any electronic or other filings that the Partnership makes with the
SEC, regardless of whether such filings are periodic, supplemental or
otherwise.  Delivery of the reports,
information and documents to the Trustee pursuant to this Section 4.03 shall be
solely for the purposes of compliance with this Section 4.03 and with TIA §
314(a).  The Trustee’s receipt of such
reports, information and documents shall not constitute notice to it of the
content thereof or of any matter determinable from the content thereof,
including the Issuers’ and any Subsidiary Guarantor’s compliance with any of
their covenants hereunder, as to which the Trustee is entitled to rely upon
Officers’ Certificates.

SECTION 4.04                                                   Compliance Certificate.

(a)           The
Partnership shall deliver to the Trustee, within 120 days after the end of each
fiscal year of the Partnership a statement signed by an Officer of the General
Partner, which need not constitute an Officers’ Certificate, complying with TIA
§ 314(a)(4) and stating that in the course of performance by the signing
Officer of his duties as such Officer of the General Partner, he would normally
obtain knowledge of the keeping, observing, performing and fulfilling by the
Issuers and any Subsidiary Guarantor of its obligations under this Indenture,
and further stating that to the best of his knowledge the Issuers and any
Subsidiary Guarantor has kept, observed, performed and fulfilled each and every
covenant contained in this Indenture and is not in default in the performance
or observance of any of the terms, provisions and conditions hereof (or, if a
Default or Event of Default shall have occurred, describing all such Defaults
or Events of Default of which such Officer may have knowledge and what action
the Issuers and any Subsidiary Guarantor is taking or proposes to take with
respect thereto).

(b)           The
Partnership shall, so long as Securities of any series are outstanding, deliver
to the Trustee, as soon as practicable, but in no event more than five Business
Days, after any Officer of the General Partner becoming aware of any Default or
Event of Default under this Indenture, an Officers’ Certificate specifying such
Default or Event of Default and what action the Issuers and any Subsidiary
Guarantor is taking or proposes to take with respect thereto.

SECTION 4.04                                                   Existence.

Subject to Article
V, the Partnership shall do or cause to be done all things necessary to
preserve and keep in full force and effect its existence.  This Section 4.05 shall not prohibit or
restrict the Partnership from converting into a different form of legal entity.

SECTION 4.06                                                   Waiver of Stay, Extension or Usury Laws.

Each of the
Issuers and the Subsidiary Guarantors 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 it
from paying all or any portion of the principal of or interest on the
Securities as contemplated herein, wherever enacted, now or at any time
hereafter 

 27
 

in
force, or which may affect the covenants or the performance of this Indenture;
and (to the extent that it may lawfully do so) each of the Issuers and the
Subsidiary Guarantors 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 4.07                                                   Additional Amounts.

If the Securities
of a series expressly provide for the payment of Additional Amounts, the
Issuers will pay to the Holder of any Security of such series Additional
Amounts as expressly provided therein. 
Whenever in this Indenture there is mentioned, in any context, the
payment of the principal of or any premium or interest on, or in respect of,
any Security of any series or the net proceeds received from the sale or
exchange of any Security of any series, such mention shall be deemed to include
mention of the payment of Additional Amounts provided for in this
Section 4.07 to the extent that, in such context, Additional Amounts are,
were or would be payable in respect thereof pursuant to the provisions of this
Section 4.07 and express mention of the payment of Additional Amounts (if
applicable) in any provisions hereof shall not be construed as excluding
Additional Amounts in those provisions hereof where such express mention is not
made.

ARTICLE V

SUCCESSORS

SECTION 5.01                                                   Limitations on Mergers and Consolidations.

Neither the
Issuers nor any Subsidiary Guarantor shall consolidate with or merge into any
Person, or sell, lease, convey, assign, transfer or otherwise dispose of, in
any transaction or series of transactions, all or substantially all of its
assets to any Person (other than a consolidation or merger of the Issuers and
one or more Subsidiary Guarantors or two or more Subsidiary Guarantors, or a
sale, lease, conveyance, assignment, transfer or other disposition of all or
substantially all of the assets of the Issuers to a Subsidiary Guarantor, a
Subsidiary Guarantor to the Issuers or of a Subsidiary Guarantor to another
Subsidiary Guarantor), unless:

(1)           either (a) the
Issuers or such Subsidiary Guarantor, as the case may be, shall be the
continuing Person or (b) the Person (if other than the Issuers or such
Subsidiary Guarantor) formed by such consolidation or into which the Issuers or
such Subsidiary Guarantor is merged, or to which such sale, lease, conveyance,
assignment, transfer or other disposition shall be made (collectively, the “Successor”),
is organized and validly existing under the laws of the United States of
America, any political subdivision thereof or any State thereof or the District
of Columbia, and expressly assumes by supplemental indenture, in the case of
the Issuers, the due and punctual payment of the principal of, premium (if any)
and interest on and any Additional Amounts with respect to all the Securities
and the performance of the Issuers’ covenants and obligations under this
Indenture and the Securities, or, in the case of such Subsidiary Guarantor, the
performance of the Guarantee and such Subsidiary Guarantor’s covenants and
obligations under this Indenture and the Securities;

 28
 

 

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

(3)           in the case of
clause (1)(b) above, the Successor delivers to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that the transaction and
such supplemental indenture comply with this Indenture.

SECTION 5.02                                                   Successor Person Substituted.

Upon any
consolidation or merger of the Issuers or a Subsidiary Guarantor, as the case
may be, or any sale, lease, conveyance, assignment, transfer or other
disposition of all or substantially all of the assets of the Issuers or such
Subsidiary Guarantor in accordance with Section 5.01, the Successor formed by
such consolidation or into which the Issuers or such Subsidiary Guarantor is
merged or to which such sale, lease, conveyance, assignment, transfer or other
disposition is made shall succeed to, and be substituted for, and may exercise
every right and power of the Issuers or such Subsidiary Guarantor, as the case
may be, under this Indenture and the Securities with the same effect as if such
Successor had been named as the Issuers or such Subsidiary Guarantor, as the
case may be, herein and the predecessor Issuer or Subsidiary Guarantor, in the
case of a sale, conveyance, assignment, transfer or other disposition, shall be
released from all obligations under this Indenture, the Securities and, in the
case of a Subsidiary Guarantor, its Guarantee.

ARTICLE VI

DEFAULTS AND REMEDIES

SECTION 6.01                                                   Events of Default.

Unless either
inapplicable to a particular series or specifically deleted or modified in or
pursuant to the supplemental indenture or Board Resolution establishing such
series of Securities or in the form of Security for such series, an “Event of
Default,” wherever used herein with respect to Securities of any series, occurs
if:

(1)           there is a default
in the payment of interest on or any Additional Amounts with respect to any
Security of that series when the same becomes due and payable and such default
continues for a period of 30 days;

(2)           there is a default
in the payment of the principal of or premium, if any, on any Securities of
that series as and when the same shall become due and payable, whether at
Stated Maturity, upon redemption, by declaration, upon required repurchase or
otherwise;

(3)           there is a default
in the deposit of any sinking fund payment with respect to any Securities of
that series as and when the same shall become due and payable, and such default
continues for a period of 30 days;

(4)           there is a failure
on the part of the Issuers, or if any series of Securities outstanding under
this Indenture is entitled to the benefits of a Guarantee, any 

 29
 

of the Subsidiary
Guarantors, duly to observe or perform any other of the covenants or agreements
on the part of the Issuers, or if applicable, any of the Subsidiary Guarantors,
in the Securities of that series, in any resolution of the Board of Directors
authorizing the issuance of that series of Securities, in this Indenture with
respect to such series or in any supplemental Indenture with respect to such
series (other than a default in the performance of a covenant which is
specifically dealt with elsewhere in this Section 6.01), continuing for a
period of 60 days after the date on which written notice specifying such
failure and requiring the Issuers, or if applicable, the Subsidiary Guarantors,
to remedy the same shall have been given, by registered or certified mail, to
the Issuers, or if applicable, the Subsidiary Guarantors, by the Trustee or to
the Issuers, or if applicable, the Subsidiary Guarantors, and the Trustee by
the Holders of at least 25% in aggregate principal amount of the Securities of
that series at the time outstanding;

(5)           either
of the Issuers, or if that series of Securities is entitled to the benefits of
a Guarantee by the Subsidiary Guarantors, any of such Subsidiary Guarantors
that is a Significant Subsidiary, pursuant to or within the meaning of any
Bankruptcy Law:

(A)          commences a voluntary
case,

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

(C)           consents to the
appointment of a Bankruptcy Custodian of it or for all or substantially all of
its property, or

(D)          makes a general
assignment for the benefit of its creditors;

(6)           a
court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that remains unstayed and in effect for 90 days and that:

(A)          is for relief against
either of the Issuers or any Subsidiary Guarantor with respect to such series
that is a Significant Subsidiary as debtor in an involuntary case,

(B)           appoints a
Bankruptcy Custodian of either of the Issuers or any Subsidiary Guarantor with
respect to such series that is a Significant Subsidiary or a Bankruptcy
Custodian for all or substantially all of the property of the Issuers or any
Subsidiary Guarantor with respect to such series that is a Significant
Subsidiary, or

(C)           orders the
liquidation of either of the Issuers or any Subsidiary Guarantor with respect
to such series that is a Significant Subsidiary;

(7)           that
series of Securities is entitled to the benefits of a Guarantee by the
Subsidiary Guarantors, the Guarantee of any of such Subsidiary Guarantors that
is a Significant Subsidiary ceases to be in full force and effect with respect
to Securities of that series (except as otherwise provided in this Indenture)
or is declared null and void in

 30

a judicial
proceeding, or any such Subsidiary Guarantor denies or disaffirms its
obligations under this Indenture or such Guarantee; or

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

The term “Bankruptcy Custodian” means any receiver,
trustee, assignee, liquidator or similar official under any Bankruptcy Law.

The Trustee shall not be deemed to know or 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 or Event of Default is received by the Trustee at the
Corporate Trust Office of the Trustee, and such notice references the
Securities and this Indenture.

When a Default or Event of Default is cured, it
ceases.

A Default under clause (4) or (8) of this Section 6.01
is not an Event of Default until the Trustee notifies the Issuers and the
Subsidiary Guarantors, or the Holders of at least 25% in principal amount of
the then outstanding Securities of the series affected by such Default (or, in
the case of a Default under clause (4) of this Section 6.01, if outstanding
Securities of other series are affected by such Default, then at least 25% in
principal amount of the then outstanding Securities so affected) notify the
Issuers, the Subsidiary Guarantors and the Trustee, of the Default, and the
Issuers or the applicable Subsidiary Guarantor, as the case may be, fails to
cure the Default within 60 days after receipt of the notice.  The notice must specify the Default, demand
that it be remedied and state that the notice is a “Notice of Default.”

SECTION 6.02                                                   Acceleration.

If an Event of Default with respect to any Securities
of any series at the time outstanding (other than an Event of Default specified
in clause (5) or (6) of Section 6.01) occurs and is continuing, the Trustee by
notice to the Issuers and the Subsidiary Guarantors, or the Holders of at least
25% in principal amount of the then outstanding Securities of the series
affected by such Event of Default (or, in the case of an Event of Default
described in clause (4) of Section 6.01, if outstanding Securities of
other series are affected by such Event of Default, then at least 25% in
principal amount of the then outstanding Securities so affected) by notice to
the Issuers, the Subsidiary Guarantors and the Trustee, may declare the
principal of (or, if any such Securities are Original Issue Discount
Securities, such portion of the principal amount as may be specified in the
terms of that series) and all accrued and unpaid interest on all then
outstanding Securities of such series or of all series, as the case may be, to
be due and payable.  Upon any such
declaration, the amounts due and payable on the Securities shall be due and
payable immediately.  If an Event of
Default specified in clause (5) or (6) of Section 6.01 hereof occurs, such
amounts shall ipso facto become and be
immediately due and payable without any declaration, notice or other act on the
part of the Trustee or any Holder.  The
Holders of a majority in principal amount of the then outstanding Securities of
the series affected by such Event of Default or all series so affected, as the
case may be, by written notice to the Trustee may rescind an acceleration and
its consequences (other than nonpayment of principal of or

 31
 

 

premium or interest on or
any Additional Amounts with respect to the Securities) if (i) the rescission
would not conflict with any judgment or decree, (ii) all existing Events of
Default with respect to Securities of that series (or of all series, as the
case may be) have been cured or waived, except nonpayment of principal,
premium, interest or any Additional Amounts that has become due solely because
of the acceleration and (iii) the Trustee has been paid any amounts 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.

SECTION 6.03                                                 Other
Remedies.

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

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

SECTION 6.04                                                   Waiver of Defaults.

Subject to Sections 6.07 and 9.02, the Holders of a
majority in principal amount of the then outstanding Securities of any series
or of all series affected thereby (acting as one class) by notice to the
Trustee may waive an existing or past Default or Event of Default with respect
to such series or all series so affected, as the case may be, and its
consequences (including waivers obtained in connection with a tender offer or
exchange offer for Securities of such series or all series so affected or a
solicitation of consents in respect of Securities of such series or all series
so affected, provided that in each case such
offer or solicitation is made to all Holders of then outstanding Securities of
such series or all series so affected (but the terms of such offer or
solicitation may vary from series to series)), except (1) a continuing Default
or Event of Default in the payment of the principal of, or premium, if any, or
interest on or any Additional Amounts with respect to any Security or
(2) a continued Default in respect of a provision that under
Section 9.02 cannot be amended or supplemented without the consent of each
Holder 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 impair any right
consequent thereon.

SECTION 6.05                                                   Control by Majority.

With respect to Securities of any series, the Holders
of a majority in principal amount of the then outstanding Securities of such
series may direct in writing the time, method and place of conducting any
proceeding for any remedy available to the Trustee or exercising any trust or
power conferred on it relating to or arising under an Event of Default
described in clause (1), (2), (3) or (8) of Section 6.01, and with
respect to all Securities, the Holders of a majority in principal amount of all
the then outstanding Securities affected may direct in writing

 32
 

 

the time, method and
place of conducting any proceeding for any remedy available to the Trustee or
exercising any trust or power conferred on it not relating to or arising under
such an Event of Default.  However, the
Trustee may refuse to follow any direction that conflicts with applicable law
or this Indenture, that the Trustee determines may be unduly prejudicial to the
rights of other Holders, or that may involve the Trustee in personal liability;
provided, however, that the Trustee may
take any other action deemed proper by the Trustee that is not inconsistent
with such direction.  Prior to taking any
action hereunder, the Trustee shall be entitled to indemnification satisfactory
to it in its sole discretion from Holders directing the Trustee against all
losses and expenses caused by taking or not taking such action.

SECTION 6.06                                                   Limitations on Suits.

Subject to Section 6.07
hereof, a Holder of a Security of any series may pursue a remedy with respect
to this Indenture or the Securities of such series or the related Guarantees,
if any, only if:

(1)           the Holder gives to the Trustee
written notice of a continuing Event of Default with respect to such series;

(2)           the Holders of at least 25% in
principal amount of the then outstanding Securities of such series make a
written request to the Trustee to pursue the remedy;

(3)           such Holder or Holders offer to the
Trustee indemnity satisfactory to the Trustee against any loss, liability or
expense;

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

(5)           during such 60-day period, the Holders
of a majority in principal amount of the Securities of such series do not give
the Trustee a direction inconsistent with the request.

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

SECTION 6.07                                                   Rights of Holders to Receive Payment.

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

SECTION 6.08                                                   Collection Suit by Trustee.

If an Event of Default specified in clause (1) or (2)
of Section 6.01 hereof occurs and is continuing, the Trustee is authorized to
recover judgment in its own name and as trustee of

 33
 

 

an express trust against
the Issuers or a Subsidiary Guarantor for the amount of principal, premium (if
any), interest and any Additional Amounts remaining unpaid on the Securities of
the series affected by the Event of Default, and interest on overdue principal
and premium, if any, and, to the extent lawful, interest on overdue interest,
and such further amount as shall be sufficient to cover the costs and expenses
of collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.

SECTION 6.09                                                   Trustee May File Proofs of Claim.

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

SECTION 6.10                                                   Priorities.

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

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

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

Third:  to the Issuers.

 34
 

 

The Trustee, upon prior written notice to the Issuers,
may fix record dates and payment dates for any payment to Holders pursuant to
this Article VI.

To the fullest extent allowed under applicable law, if
for the purpose of obtaining a judgment against the Issuers or a Subsidiary
Guarantor in any court it is necessary to convert the sum due in respect of the
principal of, premium (if any) or interest on or Additional Amounts with
respect to the Securities of any series (the “Required Currency”) into a
currency in which a judgment will be rendered (the “Judgment Currency”), the
rate of exchange used for purposes of rendering the judgment shall be the rate
at which in accordance with normal banking procedures the Trustee could purchase
in The City of New York the Required Currency with the Judgment Currency on the
Business Day in The City of New York next preceding that on which final
judgment is given.  None of the Issuers,
any Subsidiary Guarantor or the Trustee shall be liable for any shortfall nor
shall it benefit from any windfall in payments to Holders of Securities under
this Section 6.10 caused by a change in exchange rates between the time the
amount of a judgment against it is calculated as above and the time the Trustee
converts the Judgment Currency into the Required Currency to make payments
under this Section 6.10 to Holders of Securities, but payment of such judgment
shall discharge all amounts owed by the Issuers and the Subsidiary Guarantors
on the claim or claims underlying such judgment.

SECTION 6.11                                                   Undertaking for Costs.

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

ARTICLE VII

TRUSTEE

SECTION 7.01                                                   Duties of Trustee.

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

(b)           Except
during the continuance of an Event of Default with respect to the Securities of
any series:

(1)           the Trustee need perform only those
duties that are specifically set forth in this Indenture and no others, and no
implied covenants or obligations shall be read into this Indenture against the
Trustee; and

 35
 

 

(2)           in the absence of bad faith on its
part, the Trustee may conclusively rely, as to the truth of the statements and
the correctness of the opinions expressed therein, upon certificates or
opinions furnished to the Trustee and conforming to the requirements of this
Indenture.  However, the Trustee shall
examine such certificates and opinions to determine whether, on their face,
they appear to conform to the requirements of this Indenture.

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

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

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

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

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

(e)           No
provision of this Indenture shall require the Trustee to expend or risk its own
funds or incur any liability.  The
Trustee may refuse to perform any duty or exercise any right or power unless it
receives indemnity satisfactory to it against any loss, liability or expense.

(f)            The
Trustee shall not be liable for interest on any money received by it except as
the Trustee may agree in writing with the Issuers and the Subsidiary
Guarantors.  Money held in trust by the
Trustee need not be segregated from other funds except to the extent required
by law.  All money received by the
Trustee shall, until applied as herein provided, be held in trust for the
payment of the principal of, premium (if any) and interest on and Additional
Amounts with respect to the Securities.

SECTION 7.02                                                   Rights of Trustee.

(a)           The
Trustee may conclusively rely on any document believed by it to be genuine and
to have been signed or presented by the proper Person.  The Trustee need not investigate any fact or
matter stated in the document.

(b)           Before
the Trustee acts or refrains from acting, it may require instruction, an Officers’
Certificate or an Opinion of Counsel or both to be provided.  The Trustee shall not be liable for any
action it takes or omits to take in good faith in reliance on such instruction,
Officers’ Certificate or Opinion of Counsel. 
The Trustee may consult at the Issuers’ expense 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.

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(c)           The
Trustee may act through agents and shall not be responsible for the misconduct
or negligence of any agent appointed with due care.

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

(e)           Unless
otherwise specifically provided in this Indenture, any demand, request,
direction or notice from the Issuers or any Subsidiary Guarantor shall be
sufficient if signed by an Officer of each Issuer or such Subsidiary Guarantor,
as the case may be.

(f)            The
Trustee shall not be charged with knowledge of any Default or Event of Default
with respect to the Securities, 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
Issuers, any Subsidiary Guarantor or by any Holder of the Securities, and such
notice references the Securities and this Indenture.

(g)           The
permissive rights of the Trustee enumerated herein shall not be construed as
duties.

SECTION 7.03                                                   May Hold Securities.

The Trustee in its individual or any other capacity
may become the owner or pledgee of Securities and may otherwise deal with the
Issuers, any Subsidiary Guarantor or any of their respective Affiliates with
the same rights it would have if it were not Trustee. Any Agent may do the same
with like rights and duties.  However,
the Trustee is subject to Sections 7.10 and 7.11.

SECTION 7.04                                                   Trustee’s Disclaimer.

The Trustee makes no representation as to the validity
or adequacy of this Indenture or the Securities, it shall not be accountable
for the Issuers’ use of the proceeds from the Securities or any money paid to
the Issuers or any Subsidiary Guarantor or upon the Issuers’ or such Subsidiary
Guarantor’s direction under any provision hereof, it shall not be responsible
for the use or application of any money received by any Paying Agent other than
the Trustee and it shall not be responsible for any statement or recital herein
or any statement in the Securities other than its certificate of
authentication.

SECTION 7.05                                                   Notice of Defaults.

If a Default or Event of Default with respect to the
Securities of any series occurs and is continuing and it is known to the
Trustee, the Trustee shall mail to Holders of Securities of such series a
notice of the Default or Event of Default within 90 days after it occurs.  Except in the case of a Default or Event of
Default in payment of principal of, premium (if any) and interest on and
Additional Amounts or any sinking fund installment with respect to the
Securities of such series, the Trustee may withhold the notice if and so long
as a committee of its Responsible Officers in good faith determines that
withholding the notice is in the interests of Holders of Securities of such
series.

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SECTION 7.06                                                   Reports by Trustee to Holders.

Within 60 days after each June 15 of each year after
the execution of this Indenture, the Trustee shall mail to Holders of a series,
the Subsidiary Guarantors and the Issuers a brief report dated as of such
reporting date that complies with TIA § 313(a); provided,
however, that if no event described in TIA § 313(a) has
occurred within the twelve months preceding the reporting date with respect to
a series, no report need be transmitted to Holders of such series.  The Trustee also shall comply with TIA
§ 313(b).  The Trustee shall also
transmit by mail all reports if and as required by TIA §§ 313(c) and
313(d).

A copy of each report at the time of its mailing to
Holders of a series of Securities shall be filed by the Issuers or a Subsidiary
Guarantor with the SEC and each securities exchange, if any, on which the
Securities of such series are listed. The Issuers shall notify the Trustee if
and when any series of Securities is listed on any securities exchange.

SECTION 7.07                                                   Compensation and Indemnity.

The Issuers agree to pay to the Trustee for its
acceptance of this Indenture and services hereunder such compensation as the
Issuers and the Trustee shall from time to time agree in writing. The Trustee’s
compensation shall not be limited by any law on compensation of a trustee of an
express trust.  The Issuers agree to
reimburse the Trustee upon request for all reasonable disbursements, advances
and expenses incurred by it.  Such
expenses shall include the reasonable compensation, disbursements and expenses
of the Trustee’s agents and counsel.

The Issuers hereby indemnify the Trustee and any
predecessor Trustee against any and all loss, liability, damage, claim or
expense, including taxes (other than taxes based upon, measured by or
determined by the income of the Trustee), incurred by it arising out of or in
connection with the acceptance or administration of its duties under this
Indenture, except as set forth in the next following paragraph.  The Trustee shall notify the Issuers and the
Subsidiary Guarantors promptly of any claim for which it may seek
indemnity.  The Issuers shall defend the
claim and the Trustee shall cooperate in the defense.  The Trustee may have separate counsel and the
Issuers shall pay the reasonable fees and expenses of such counsel.  The Issuers need not pay for any settlement
made without its consent.

The Issuers shall not be obligated to reimburse any
expense or indemnify against any loss or liability incurred by the Trustee
through the Trustee’s negligence, willful misconduct or bad faith.

To secure the payment obligations of the Issuers in
this Section 7.07, the Trustee shall have a lien prior to the Securities on all
money or property held or collected by the Trustee, except that held in trust
to pay principal of, premium (if any) and interest on and any Additional
Amounts with respect to Securities of any series.  Such lien and the Issuers’ obligations under
this Section 7.07 shall survive the resignation or removal of the Trustee and
the satisfaction and discharge of this Indenture.

When the Trustee incurs expenses or renders services
after an Event of Default specified in Section 6.01(5) or (6) occurs, the
expenses and the compensation for the services are intended to constitute
expenses of administration under any Bankruptcy Law.

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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 and be discharged at any time
with respect to the Securities of one or more series by so notifying the
Issuers and the Subsidiary Guarantors. 
The Holders of a majority in principal amount of the then outstanding
Securities of any series may remove the Trustee with respect to the Securities
of such series by so notifying the Trustee, the Issuers and the Subsidiary
Guarantors.  The Issuers may remove the
Trustee if:

(1)           the Trustee fails to comply with
Section 7.10;

(2)           the Trustee is adjudged a bankrupt or
an insolvent or an order for relief is entered with respect to the Trustee under
any Bankruptcy Law;

(3)           a Bankruptcy Custodian or public
officer takes charge of the Trustee or its property; or

(4)           the Trustee otherwise becomes
incapable of acting.

If the Trustee resigns or is removed or if a vacancy
exists in the office of Trustee for any reason, with respect to the Securities
of one or more series, the Issuers shall promptly appoint a successor Trustee
or Trustees with respect to the Securities of that or those series (it being
understood that any such successor Trustee may be appointed with respect to the
Securities of one or more or all of such series and that at any time there
shall be only one Trustee with respect to the Securities of any particular
series).  Within one year after the successor
Trustee with respect to the Securities of any series takes office, the Holders
of a majority in principal amount of the Securities of such series then
outstanding may appoint a successor Trustee to replace the successor Trustee
appointed by the Issuers.

If a successor Trustee with respect to the Securities
of any series does not take office within 30 days after the retiring or removed
Trustee resigns or is removed, the retiring or removed Trustee (at the expense
of the Issuers), the Issuers, any Subsidiary Guarantor or the Holders of at least
10% in principal amount of the then outstanding Securities of such series may
petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.

If the Trustee with respect to the Securities of a
series fails to comply with Section 7.10, any Holder of Securities of such
series may petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor Trustee with respect to the
Securities of such series.

In case of the appointment of a successor Trustee with
respect to all Securities, each such successor Trustee shall deliver a written
acceptance of its appointment to the retiring Trustee, to the Issuers and to
the Subsidiary Guarantors.  Thereupon the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights,

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powers and duties of the
retiring Trustee under this Indenture. 
The successor Trustee shall mail a notice of its succession to
Holders.  The retiring Trustee shall
promptly transfer all property held by it as Trustee to the successor Trustee,
subject to the lien provided for in Section 7.07.

In case of the appointment of a successor Trustee with
respect to the Securities of one or more (but not all) series, the Issuers, the
Subsidiary Guarantors, the retiring Trustee and each successor Trustee with
respect to the Securities of one or more (but not all) series shall execute and
deliver an indenture supplemental hereto in which each successor Trustee shall
accept such appointment and that (1) shall confer to each successor Trustee all
the rights, powers and duties of the retiring Trustee with respect to the
Securities of that or those series to which the appointment of such successor
Trustee relates, (2) if the retiring Trustee is not retiring with respect to
all Securities, shall confirm that all the rights, powers and duties of the
retiring Trustee with respect to the Securities of that or those series as to
which the retiring Trustee is not retiring shall continue to be vested in the
retiring Trustee and (3) shall add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Trustee.  Nothing herein or in such supplemental
indenture shall constitute such Trustees as co-trustees of the same
trust, and each such Trustee shall be trustee of a trust or trusts hereunder
separate and apart from any trust or trusts hereunder administered by any other
such Trustee.  Upon the execution and
delivery of such supplemental indenture, the resignation or removal of the
retiring Trustee shall become effective to the extent provided therein and each
such successor Trustee shall have all the rights, powers and duties of the
retiring Trustee with respect to the Securities of that or those series to
which the appointment of such successor Trustee relates.  On request of the Issuers or any successor
Trustee, such retiring Trustee shall transfer to such successor Trustee all
property held by such retiring Trustee as Trustee with respect to the
Securities of that or those series to which the appointment of such successor
Trustee relates.  Such retiring Trustee
shall, however, have the right to deduct its unpaid fees and expenses,
including attorneys’ fees.

Notwithstanding replacement of the Trustee or Trustees
pursuant to this Section 7.08, the obligations of the Issuers under
Section 7.07 shall continue for the benefit of the retiring Trustee or
Trustees.

SECTION 7.09                                                   Successor Trustee by Merger, etc.

Subject to Section 7.10, if the Trustee consolidates,
merges or converts into, or transfers all or substantially all of its corporate
trust business to, another corporation, the successor corporation without any
further act shall be the successor Trustee; provided, however,
that in the case of a transfer of all or substantially all of its corporate
trust business to another corporation, the transferee corporation expressly
assumes all of the Trustee’s liabilities hereunder.

In case any Securities shall have been authenticated,
but not delivered, by the Trustee then in office, any successor by merger,
conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Securities so authenticated; and in case at that
time any of the Securities shall not have been authenticated, any successor to
the Trustee may authenticate such Securities either in the name of any
predecessor hereunder or in the name of the successor to the Trustee; and in
all such cases such certificates shall have the full force which it is anywhere
in the Securities or in this Indenture provided that the certificate of the
Trustee shall have.

 40

full force which it is anywhere in the Securities or
in this Indenture provided that the certificate of the Trustee shall have.

SECTION 7.10                                                   Eligibility; Disqualification.

There shall at all times be a Trustee hereunder which
shall be a corporation or banking association organized and doing business
under the laws of the United States, any State thereof or the District of
Columbia and authorized under such laws to exercise corporate trust power,
shall be subject to supervision or examination by federal or state (or the
District of Columbia) authority and shall have, or be a subsidiary of a bank or
bank holding company having, a combined capital and surplus of at least $50
million as set forth in its most recent published annual report of condition.

The Indenture shall always have a Trustee who
satisfies the requirements of TIA §§ 310(a)(1), 310(a)(2) and
310(a)(5).  The Trustee is subject to and
shall comply with the provisions of TIA § 310(b) during the period of time
required by this Indenture. Nothing in this Indenture shall prevent the Trustee
from filing with the SEC the application referred to in the penultimate
paragraph of TIA § 310(b).

SECTION 7.11                                                   Preferential Collection of Claims Against the Issuers or a Subsidiary
Guarantor.

The Trustee is subject to and shall comply with the
provisions of TIA § 311(a), excluding any creditor relationship listed in
TIA § 311(b).  A Trustee who has
resigned or has been removed shall be subject to TIA § 311(a) to the
extent indicated therein.

ARTICLE VIII

DISCHARGE OF INDENTURE

SECTION 8.01                                                   Termination of the Issuers’ and the Subsidiary Guarantors’ Obligations.

(a)           This Indenture shall cease to be of further effect with
respect to the Securities of a series (except that the Issuers’ obligations
under Section 7.07, the Trustee’s and Paying Agent’s obligations under Section
8.03 and the rights, powers, protections and privileges accorded the Trustee
under Article VII shall survive), and the Trustee, on demand of the Issuers,
shall execute proper instruments acknowledging the satisfaction and discharge
of this Indenture with respect to the Securities of such series, when:

(1)           either:

(A)          all
outstanding Securities of such series theretofore authenticated and issued
(other than destroyed, lost or stolen Securities that have been replaced or
paid) have been delivered to the Trustee for cancellation; or

(B)           all
outstanding Securities of such series not theretofore delivered to the Trustee
for cancellation:

(i)                                     have become due
and payable, or

 41
 

 

(ii)                                  will become due and
payable at their Stated Maturity within one year, or

(iii)                               are to be called for
redemption within one year under arrangements satisfactory to the Trustee for
the giving of notice of redemption by the Trustee in the name, and at the
expense, of the Issuers,

and, in the case of
clause (i), (ii) or (iii) above, the Issuers or a Subsidiary Guarantor has
irrevocably deposited or caused to be deposited with the Trustee as funds
(immediately available to the Holders in the case of clause (i)) in trust for
such purpose (x) cash in an amount, or (y) Government Obligations
with respect to such series, maturing as to principal and interest at such
times and in such amounts as will ensure the availability of cash in an amount
or (z) a combination thereof, which will be sufficient, in the opinion (in
the case of clauses (y) and (z)) of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to
the Trustee, to pay and discharge the entire indebtedness on the Securities of
such series for principal and interest to the date of such deposit (in the case
of Securities which have become due and payable) or for principal, premium, if
any, and interest to the Stated Maturity or Redemption Date, as the case may
be; or

(C)           the
Issuers and the Subsidiary Guarantors have properly fulfilled such other means
of satisfaction and discharge as is specified, as contemplated by Section 2.01,
to be applicable to the Securities of such series;

(2)           the
Issuers or a Subsidiary Guarantor has paid or caused to be paid all other sums
payable by them hereunder with respect to the Securities of such series; and

(3)           each
of the Issuers has delivered to the Trustee an Officers’ Certificate stating
that all conditions precedent to satisfaction and discharge of this Indenture
with respect to the Securities of such series have been complied with, together
with an Opinion of Counsel to the same effect.

(b)           Unless this Section 8.01(b) is specified as not being
applicable to Securities of a series as contemplated by Section 2.01, the
Issuers may, at their option, terminate certain of their and the Subsidiary
Guarantors’ respective obligations under this Indenture (“covenant defeasance”)
with respect to the Securities of a series if:

(1)           the
Issuers or a Subsidiary Guarantor has irrevocably deposited or caused to be
irrevocably deposited with the Trustee as trust funds in trust for the purpose
of making the following payments, specifically pledged as security for and
dedicated solely to the benefit of the Holders of Securities of such series,
(i) money in the currency in which payment of the Securities of such
series is to be made in an amount, or (ii) Government Obligations with
respect to such series, maturing as to principal and interest at such times and
in such amounts as will ensure the availability of money in the currency in
which payment of the Securities of such series is to be made in an amount or

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(iii) a combination thereof, that is sufficient, in the opinion
(in the case of clauses (ii) and (iii)) of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay the principal of and premium (if any) and
interest on all Securities of such series on each date that such principal,
premium (if any) or interest is due and payable and (at the Stated Maturity
thereof or upon redemption as provided in Section 8.01(e)) to pay all other
sums payable by it hereunder; provided that
the Trustee shall have been irrevocably instructed to apply such money and/or
the proceeds of such Government Obligations to the payment of said principal,
premium (if any) and interest with respect to the Securities of such series as
the same shall become due;

(2)           each
of the Issuers has delivered to the Trustee an Officers’ Certificate stating
that all conditions precedent to satisfaction and discharge of this Indenture
with respect to the Securities of such series have been complied with, and an
Opinion of Counsel to the same effect;

(3)           no
Default or Event of Default with respect to the Securities of such series shall
have occurred and be continuing on the date of such deposit;

(4)           the
Issuers shall have delivered to the Trustee an Opinion of Counsel from a
nationally recognized counsel acceptable to the Trustee or a private letter
ruling issued by the United States Internal Revenue Service to the effect that
the Holders will not recognize income, gain or loss for United States Federal
income tax purposes as a result of the Issuers’ exercise of their option under
this Section 8.01(b) and will be subject to United States 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 option had not been exercised;

(5)           the
Issuers and the Subsidiary Guarantors have complied with any additional
conditions specified pursuant to Section 2.01 to be applicable to the discharge
of Securities of such series pursuant to this Section 8.01; and

(6)           such
deposit and discharge shall not cause the Trustee to have a conflicting
interest as defined in TIA § 310(b).

In such event, this Indenture shall cease to be of
further effect (except as set forth in this paragraph), and the Trustee, on
demand of the Issuers, shall execute proper instruments acknowledging
satisfaction and discharge under this Indenture.  However, the Issuers’ and the Subsidiary
Guarantors’ respective obligations in Sections 2.05, 2.06, 2.07, 2.08, 2.09,
4.01, 4.02, 7.07, 7.08, 8.04 and 11.01, the Trustee’s and Paying Agent’s
obligations in Section 8.03 and the rights, powers, protections and
privileges accorded the Trustee under Article VII shall survive until all
Securities of such series are no longer outstanding.  Thereafter, only the Issuers’ obligations in
Section 7.07 and the Trustee’s and Paying Agent’s obligations in Section 8.03
shall survive with respect to Securities of such series.

After such irrevocable deposit made pursuant to this
Section 8.01(b) and satisfaction of the other conditions set forth herein, the
Trustee upon request shall acknowledge in writing the discharge of the Issuers’
and the Subsidiary Guarantors’ obligations under this

 43
 

 

Indenture with respect to
the Securities of such series except for those surviving obligations specified
above.

In order to have money available on a payment date to
pay principal of or premium (if any) or interest on the Securities, the
Government Obligations shall be payable as to principal or interest on or
before such payment date in such amounts as will provide the necessary money.  Government Obligations shall not be callable
at the issuer’s option.

(c)           If the Issuers and the Subsidiary Guarantors have
previously complied or are concurrently complying with Section 8.01(b) (other
than any additional conditions specified pursuant to Section 2.01 that are
expressly applicable only to covenant defeasance) with respect to Securities of
a series, then, unless this Section 8.01(c) is specified as not being
applicable to Securities of such series as contemplated by Section 2.01, the
Issuers may elect that their and the Subsidiary Guarantors’ respective
obligations to make payments with respect to Securities of such series be
discharged (“legal defeasance”), if:

(1)           no
Default or Event of Default under clauses (5) and (6) of Section 6.01 hereof
shall have occurred at any time during the period ending on the 91st day after
the date of deposit contemplated by Section 8.01(b) (it being understood that
this condition shall not be deemed satisfied until the expiration of such
period);

(2)           unless
otherwise specified with respect to Securities of such series as contemplated
by Section 2.01, the Issuers have delivered to the Trustee an Opinion of
Counsel from a nationally recognized counsel acceptable to the Trustee to the
effect referred to in Section 8.01(b)(4) with respect to such legal defeasance,
which opinion is based on (i) a private letter ruling issued by the United
States Internal Revenue Service addressed to the Issuers, (ii) a published
ruling of the Internal Revenue Service pertaining to a comparable form of
transaction or (iii) a change in the applicable federal income tax law
(including regulations) after the date of this Indenture;

(3)           the
Issuers and the Subsidiary Guarantors have complied with any other conditions
specified pursuant to Section 2.01 to be applicable to the legal defeasance of
Securities of such series pursuant to this Section 8.01(c); and

(4)           the
Issuers have delivered to the Trustee an Issuer Order requesting such legal
defeasance of the Securities of such series and an Officers’ Certificate
stating that all conditions precedent with respect to such legal defeasance of
the Securities of such series have been complied with, together with an Opinion
of Counsel to the same effect.

In such event, the Issuers and the Subsidiary
Guarantors will be discharged from their respective obligations under this
Indenture and the Securities of such series to pay principal of, premium (if
any) and interest on, and any Additional Amounts with respect to, Securities of
such series, the Issuers’ and the Subsidiary Guarantors’ respective obligations
under Sections 4.01, 4.02 and 11.01 shall terminate with respect to such
Securities, and the entire indebtedness of the Issuers evidenced by such
Securities and of the Subsidiary Guarantors evidenced by the related
Guarantees, if any, shall be deemed paid and discharged.

 44
 

 

(d)           If and to the extent additional or alternative means of
satisfaction, discharge or defeasance of Securities of a series are specified
to be applicable to such series as contemplated by Section 2.01, each of the
Issuers and the Subsidiary Guarantors may terminate any or all of its
obligations under this Indenture with respect to Securities of a series and any
or all of its obligations under the Securities of such series if it fulfills
such other means of satisfaction and discharge as may be so specified, as
contemplated by Section 2.01, to be applicable to the Securities of such
series.

(e)           If Securities of any series subject to subsection (a),
(b), (c) or (d) of this Section 8.01 are to be redeemed prior to their Stated
Maturity, whether pursuant to any optional redemption provisions or in
accordance with any mandatory or optional sinking fund provisions, the terms of
the applicable trust arrangement shall provide for such redemption, and the Issuers
shall make such arrangements as are reasonably satisfactory to the Trustee for
the giving of notice of redemption by the Trustee in the name, and at the
expense, of the Issuers.

SECTION 8.02                                                   Application of Trust Money.

The Trustee or a trustee satisfactory to the Trustee
and the Issuers shall hold in trust money or Government Obligations deposited
with it pursuant to Section 8.01 hereof. 
It shall apply the deposited money and the money from Government
Obligations through the Paying Agent and in accordance with this Indenture to
the payment of principal of, premium (if any) and interest on and any
Additional Amounts with respect to the Securities of the series with respect to
which the deposit was made.  Money and
securities held in trust are not subject to Article X.

SECTION 8.03                                                   Repayment to Issuers or Subsidiary Guarantor.

The Trustee and the Paying Agent shall promptly pay to
the Issuers or any Subsidiary Guarantor any excess money or Government
Obligations (or proceeds therefrom) held by them at any time upon the written
request of the Issuers.

Subject to the requirements of any applicable
abandoned property laws, the Trustee and the Paying Agent shall pay to the
Issuers upon written request any money held by them for the payment of
principal, premium (if any), interest or any Additional Amounts that remain
unclaimed for two years after the date upon which such payment shall have
become due.  After payment to the
Issuers, Holders entitled to the money must look to the Issuers for payment as
general creditors unless an applicable abandoned property law designates
another Person, and all liability of the Trustee and the Paying Agent with
respect to such money shall cease.

SECTION 8.04                                                   Reinstatement.

If the Trustee or the Paying Agent is unable to apply
any money or Government Obligations deposited with respect to Securities of any
series in accordance with Section 8.01 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
obligations of the Issuers and the Subsidiary Guarantors under this Indenture
with respect to the Securities of such series and under the Securities of such
series shall be revived and reinstated as though no deposit had occurred
pursuant to Section 8.01 until such time as the Trustee or the

 45
 

 

Paying Agent is permitted
to apply all such money or Government Obligations in accordance with
Section 8.01; provided, however, that
if the Issuers or any Subsidiary Guarantor has made any payment of principal
of, premium (if any) or interest on or any Additional Amounts with respect to
any Securities because of the reinstatement of their obligations, the Issuers
or such Subsidiary Guarantor, as the case may be, shall be subrogated to the
rights of the Holders of such Securities to receive such payment from the money
or Government Obligations held by the Trustee or the Paying Agent.

ARTICLE IX

SUPPLEMENTAL INDENTURES AND AMENDMENTS

SECTION 9.01                                                   Without Consent of Holders.

The Issuers, the Subsidiary Guarantors and the Trustee
may amend or supplement this Indenture or the Securities or waive any provision
hereof or thereof without the consent of any Holder:

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

(2)           to
comply with Section 5.01;

(3)           to
provide for uncertificated Securities in addition to or in place of
certificated Securities, or to provide for the issuance of bearer Securities
(with or without coupons);

(4)           to
provide any security for, or to add any guarantees of or additional obligors
on, any series of Securities or the related Guarantees, if any;

(5)           to
comply with any requirement in order to effect or maintain the qualification of
this Indenture under the TIA;

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

(7)           to
add any additional Events of Default with respect to all or any series of the
Securities (and, if any such Event of Default is applicable to less than all
series of Securities, specifying the series to which such Event of Default is
applicable);

(8)           to
change or eliminate any of the provisions of this Indenture; provided that any such change or elimination shall become
effective only when there is no outstanding Security of any series created
prior to the execution of such amendment or supplemental indenture that is
adversely affected in any material respect by such change in or elimination of
such provision;

 46
 

 

(9)           to
establish the form or terms of Securities of any series as permitted by Section
2.01;

(10)         to
supplement any of the provisions of this Indenture to such extent as shall be
necessary to permit or facilitate the defeasance and discharge of any series of
Securities pursuant to Section 8.01; provided, however,
that any such action shall not adversely affect the interest of the Holders of
Securities of such series or any other series of Securities in any material
respect; or

(11)         to
evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series and to add to or
change any of the provisions of this Indenture as shall be necessary to provide
for or facilitate the administration of the trusts hereunder by more than one
Trustee, pursuant to the requirements of Section 7.08.

Upon the request of the Issuers, accompanied by a
Board Resolution, and upon receipt by the Trustee of the documents described in
Section 9.06, the Trustee shall, subject to Section 9.06, join with the Issuers
and the Subsidiary Guarantors in the execution of any supplemental indenture
authorized or permitted by the terms of this Indenture and make any further
appropriate agreements and stipulations that may be therein contained.

SECTION 9.02                                                   With Consent of Holders.

Except as provided below in this Section 9.02, the
Issuers, the Subsidiary Guarantors and the Trustee may amend or supplement this
Indenture with the written consent (including consents obtained in connection
with a tender offer or exchange offer for Securities of any one or more series
or all series or a solicitation of consents in respect of Securities of any one
or more series or all series, provided that
in each case such offer or solicitation is made to all Holders of then outstanding
Securities of each such series (but the terms of such offer or solicitation may
vary from series to series)) of the Holders of at least a majority in principal
amount of the then outstanding Securities of all series affected by such
amendment or supplement (acting as one class).

Upon the request of the Issuers, accompanied by a
Board Resolution, and upon the filing with the Trustee of evidence of the
consent of the Holders as aforesaid, and upon receipt by the Trustee of the
documents described in Section 9.06, the Trustee shall, subject to Section
9.06, join with the Issuers and the Subsidiary Guarantors in the execution of
such amendment or supplemental indenture.

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.

The Holders of a majority in principal amount of the
then outstanding Securities of one or more series or of all series (acting as
one class) may waive compliance in a particular instance by the Issuers or any
Subsidiary Guarantor with any provision of this Indenture with respect to
Securities of such series (including waivers obtained in connection with a
tender offer or exchange offer for Securities of such series or a solicitation
of consents in respect of Securities

 47
 

 

of such series, provided that in each case such offer or solicitation is
made to all Holders of then outstanding Securities of such series (but the
terms of such offer or solicitation may vary from series to series)).

However, without the consent of each Holder affected,
an amendment, supplement or waiver under this Section 9.02 may not:

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

(2)           reduce
the rate of or change the time for payment of interest, including default
interest, on any Security;

(3)           reduce
the principal of, any premium on or any mandatory sinking fund payment with
respect to, or change the Stated Maturity of, any Security or reduce the amount
of the principal of an Original Issue Discount Security that would be due and
payable upon a declaration of acceleration of the Maturity thereof pursuant to
Section 6.02;

(4)           reduce
the premium, if any, payable upon the redemption of any Security or change the
time at which any Security may or shall be redeemed;

(5)           change
any obligation of the Issuers or any Subsidiary Guarantor to pay Additional
Amounts with respect to any Security;

(6)           change
the coin or currency or currencies (including composite currencies) in which
any Security or any premium, interest or Additional Amounts with respect
thereto are payable;

(7)           impair
the right to institute suit for the enforcement of any payment of principal of,
premium (if any) or interest on or any Additional Amounts with respect to any
Security pursuant to Sections 6.07 and 6.08, except as limited by Section 6.06;

(8)           make
any change in the percentage of principal amount of Securities necessary to
waive compliance with certain provisions of this Indenture pursuant to
Section 6.04 or 6.07 or make any change in this sentence of Section 9.02;

(9)           modify
the provisions of this Indenture with respect to the subordination of any
Security and any related Guarantees in a manner materially adverse to the
Holders;

(10)         waive
a continuing Default or Event of Default in the payment of principal of,
premium (if any) or interest on or Additional Amounts with respect to the
Securities; or

(11)         except
as provided in Section 11.04, release any Subsidiary Guarantor or modify the
related Guarantee in any manner materially adverse to the Holders.

 48
 

 

An amendment under this Section 9.02 may not make any
change that adversely affects the rights under Article X of any holder of an
issue of Senior Indebtedness unless the holders of the issue pursuant to its
terms consent to the change.

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

The right of any Holder to participate in any consent
required or sought pursuant to any provision of this Indenture (and the
obligation of the Issuers or any Subsidiary Guarantor to obtain any such
consent otherwise required from such Holder) may be subject to the requirement
that such Holder shall have been the Holder of record of any Securities with
respect to which such consent is required or sought as of a date identified by
the Issuers or such Subsidiary Guarantor in a notice furnished to Holders in
accordance with the terms of this Indenture.

After an amendment, supplement or waiver under this
Section 9.02 becomes effective, the Issuers shall mail to the Holders of each
Security affected thereby a notice briefly describing the amendment, supplement
or waiver.  Any failure of the Issuers to
mail such notice, or any defect therein, shall not, however, in any way impair
or affect the validity of any such amendment, supplement or waiver.

SECTION 9.03                                                   Compliance with the Trust Indenture Act.

Every amendment or supplement to this Indenture or the
Securities shall comply in form and substance with the TIA as then in effect.

SECTION 9.04                                                   Revocation and Effect of Consents.

Until an amendment, supplement or waiver becomes
effective, a consent to it by a Holder is a continuing consent by the Holder
and every subsequent Holder of a Security or portion of a Security that
evidences the same debt as the consenting Holder’s Security, even if notation
of the consent is not made on any Security. 
However, any such Holder or subsequent Holder may revoke the consent as
to his or her Security or portion of a Security if the Trustee receives written
notice of revocation before a date and time therefor identified by the Issuers
or any Subsidiary Guarantor in a notice furnished to such Holder in accordance
with the terms of this Indenture or, if no such date and time shall be
identified, the date the amendment, supplement or waiver becomes
effective.  An amendment, supplement or
waiver becomes effective in accordance with its terms and thereafter binds
every Holder.

The Issuers or any Subsidiary Guarantor may, but shall
not be obligated to, fix a record date (which need not comply with TIA
§ 316(c)) for the purpose of determining the Holders entitled to consent
to any amendment, supplement or waiver or to take any other action under this
Indenture.  If a record date is fixed,
then notwithstanding the provisions 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,

 49
 

 

supplement or waiver or
to revoke any consent previously given, whether or not such Persons continue to
be Holders after such record date.  No
consent shall be valid or effective for more than 90 days after such record
date unless consents from Holders of the principal amount of Securities
required hereunder for such amendment or waiver to be effective shall have also
been given and not revoked within such 90-day period.

After an amendment, supplement or waiver becomes
effective, it shall bind every Holder, unless it is of the type described in
any of clauses (1) through (9) of Section 9.02 hereof.  In such case, the amendment, supplement or
waiver shall bind each Holder who has consented to it and every subsequent
Holder that evidences the same debt as the consenting Holder’s Security.

SECTION 9.05                                                   Notation on or Exchange of Securities.

If an amendment or supplement changes the terms of an
outstanding Security, the Issuers may require the Holder of the Security to
deliver it to the Trustee.  The Trustee
may place an appropriate notation on the Security at the request of the Issuers
regarding the changed terms and return it to the Holder.  Alternatively, if the Issuers so determines,
the Issuers in exchange for the Security shall issue, each Subsidiary Guarantor
with respect to such series shall execute the Notation of Guarantee relating to
such Security, if any, and the Trustee shall authenticate a new Security that
reflects the changed terms.  Failure to
make the appropriate notation or to issue a new Security shall not affect the
validity of such amendment or supplement.

Securities of any series authenticated and delivered
after the execution of any amendment or supplement may, and shall if required
by the Trustee, bear a notation in form approved by the Trustee as to any
matter provided for in such amendment or supplement.

SECTION 9.06                                                   Trustee to Sign Amendments, etc.

The Trustee shall sign any amendment or supplement
authorized pursuant to this Article if the amendment or supplement does not
adversely affect the rights, duties, liabilities or immunities of the
Trustee.  If it does, the Trustee may,
but need not, sign it.  In signing or
refusing to sign such amendment or supplement, the Trustee shall be entitled to
receive, in addition to the documents required by Section 12.04, and, subject
to Section 7.01 hereof, shall be fully protected in relying upon, an Opinion of
Counsel provided at the expense of the Issuers or a Subsidiary Guarantor to the
effect that such amendment or supplement is authorized or permitted by this
Indenture.

ARTICLE X

SUBORDINATION OF SECURITIES AND GUARANTEE

SECTION 10.01                                             Applicability of Article; Agreement to Subordinate.

The provisions of this Article X shall only be
applicable to the Securities of any series (Securities of such series referred
to in this Article X as “Subordinated Securities”) designated, pursuant to
Section 2.01, as subordinated to Senior Indebtedness and any related Guarantees
of such Subordinated Securities. Each Holder by accepting a Subordinated
Security agrees that the Debt evidenced by such Subordinated Security and any
related Guarantees of such Subordinated Security is subordinated in right of
payment, to the extent and in the manner

 50

provided
in this Article X, to the prior payment of all Senior Indebtedness and that the
subordination is for the benefit of and enforceable by the holders of Senior
Indebtedness. All provisions of this Article X shall be subject to Section
10.12.

SECTION 10.02                                             Liquidation, Dissolution, Bankruptcy.

Upon any payment
or distribution of the assets of the Issuers or the Subsidiary Guarantors, as
the case may be, to creditors, upon a liquidation or a dissolution of the
Issuers or the Subsidiary Guarantors, as the case may be, or in a bankruptcy,
reorganization, insolvency, receivership or similar proceeding relating to the
Issuers or the Subsidiary Guarantors, as the case may be, or their respective
property:

(a)           holders
of Senior Indebtedness of the Issuers or any Subsidiary Guarantor, as the case
may be, shall be entitled to receive payment in full in cash of such Senior
Indebtedness of such Person (including interest (if any), accruing on or after
the commencement of a proceeding in bankruptcy, whether or not allowed as a
claim against the Issuers or the Subsidiary Guarantors, as the case may be, in
such bankruptcy proceeding) before Holders of Subordinated Securities and any
related Guarantees, if any, shall be entitled to receive any payment of
principal of, or premium, if any, or interest on, the Subordinated Securities
from the Issuers, or any payment in respect of such related Guarantees from the
Subsidiary Guarantors; and

(b)           until
the Senior Indebtedness of the Issuers or any Subsidiary Guarantor, as the case
may be, is paid in full, any distribution to which Holders of Subordinated
Securities and any related Guarantees would be entitled but for this Article X
shall be made to holders of Senior Indebtedness of the Issuers or the
Subsidiary Guarantors, as the case may be, as their interests may appear,
except that such Holders may receive capital stock and any debt securities that
are subordinated to Senior Indebtedness of the Issuers or the Subsidiary
Guarantors, as the case may be, to at least the same extent as the Subordinated
Securities of the Issuers or the related Guarantee of any Subsidiary Guarantor,
respectively.

SECTION 10.03                                             Default on Senior Indebtedness.

The Issuers and
the Subsidiary Guarantors may not pay the principal of, or premium, if any, or
interest on, the Subordinated Securities or any related Guarantee or make any
deposit pursuant to Article VIII and may not repurchase, redeem or otherwise
retire (except, in the case of Subordinated Securities that provide for a
mandatory sinking fund pursuant to Section 3.11, by the delivery of
Subordinated Securities by the Issuers to the Trustee pursuant to the first
paragraph of Section 3.11) any Subordinated Securities (collectively, “pay the
Subordinated Securities”) if any principal, premium or interest in respect of
Senior Indebtedness of such Person is not paid within any applicable grace
period (including at maturity) or any other default on Senior Indebtedness of
such Person occurs and the maturity of such Senior Indebtedness is accelerated
in accordance with its terms unless, in either case, the default has been cured
or waived and any such acceleration has been rescinded or such Senior
Indebtedness has been paid in full in cash; provided, however,
that the Issuers and the Subsidiary Guarantors may make payments on the
Subordinated Securities or any related Guarantee without regard to the
foregoing if the Issuers and the Trustee receive written notice approving such
payment from the 

 51
 

Representative
of each issue of Designated Senior Indebtedness. During the continuance of any
other default with respect to any Designated Senior Indebtedness pursuant to
which the maturity thereof may be accelerated immediately without further
notice (except such notice as may be required to effect such acceleration) or
the expiration of any applicable grace periods, the Issuers and the Subsidiary
Guarantors may not make payments on the Subordinated Securities or any related
Guarantee for a period (a “Payment Blockage Period”) commencing upon the
receipt by the Issuers and the Trustee (and if such Designated Senior
Indebtedness is Debt of a Subsidiary Guarantor, the Subsidiary Guarantor) of
written notice of such default from the Representative of any Designated Senior
Indebtedness specifying an election to effect a Payment Blockage Period (a “Blockage
Notice”) and ending 179 days thereafter (or earlier if such Payment Blockage
Period is terminated by written notice to the Trustee and the Issuers (and if
such Designated Senior Indebtedness is Debt of a Subsidiary Guarantor, the
Subsidiary Guarantor) from the Person or Persons who gave such Blockage Notice,
by repayment in full in cash of such Designated Senior Indebtedness or because
the default giving rise to such Blockage Notice is no longer continuing).
Notwithstanding the provisions described in the immediately preceding sentence
(but subject to the provisions contained in Section 10.02 and the first
sentence of this Section 10.03), unless the holders of such Designated Senior
Indebtedness or the Representative of such holders shall have accelerated the
maturity of such Designated Senior Indebtedness, the Issuers and the Subsidiary
Guarantors may resume payments on the Subordinated Securities and any related
Guarantee after such Payment Blockage Period. Not more than one Blockage Notice
may be given in any consecutive 360-day period, irrespective of the number of
defaults with respect to any number of issues of Designated Senior Indebtedness
during such period, unless otherwise specified pursuant to Section 2.01 for the
Subordinated Securities of a series; provided, however,
that in no event may the total number of days during which any Payment Blockage
Period or Periods is in effect exceed 179 days in the aggregate during any 360
consecutive day period. For purposes of this Section 10.03, no default or event
of default which existed or was continuing on the date of the commencement of
any Payment Blockage Period with respect to the Designated Senior Indebtedness
initiating such Payment Blockage Period shall be, or be made, the basis of the
commencement of a subsequent Payment Blockage Period by the Representative of
such Designated Senior Indebtedness, whether or not within a period of 360
consecutive days, unless such default or event of default shall have been cured
or waived for a period of not less than 90 consecutive days.

SECTION 10.04                                             Acceleration of Payment of Securities.

If payment of the
Subordinated Securities is accelerated because of an Event of Default, the
Issuers shall promptly notify the holders of the Designated Senior Indebtedness
(or their Representatives) of the acceleration.

SECTION 10.05                                             When Distribution Must Be Paid Over.

If a distribution
is made to Holders of Subordinated Securities or any related Guarantee that
because of this Article X should not have been made to them, the Holders who
receive such distribution shall hold it in trust for holders of Senior
Indebtedness and pay it over to them as their interests may appear.

 52
 

 

SECTION 10.06                                             Subrogation.

After all Senior
Indebtedness is paid in full and until the Subordinated Securities are paid in
full, Holders thereof shall be subrogated to the rights of holders of Senior
Indebtedness to receive distributions applicable to Senior Indebtedness. A
distribution made under this Article X to holders of Senior Indebtedness which
otherwise would have been made to Holders of Subordinated Securities is not, as
between the Issuers or the Subsidiary Guarantors, as the case may be, and such
Holders, a payment by the Issuers or the Subsidiary Guarantors, as the case may
be, on Senior Indebtedness.

SECTION 10.07                                             Relative Rights.

This
Article X defines the relative rights of Holders of Subordinated Securities and
holders of Senior Indebtedness. Nothing in this Indenture shall:

(a)           impair,
as between the Issuers or the Subsidiary Guarantors, as the case may be, and
Holders of either Subordinated Securities or Securities, the obligation of the
Issuers or the Subsidiary Guarantors, as the case may be, which is absolute and
unconditional, to pay principal of, and premium, if any, and interest on, the
Subordinated Securities and the Securities in accordance with their terms; or

(b)           prevent
the Trustee or any Holder of either Subordinated Securities or Securities from
exercising its available remedies upon an Event of Default, subject to the
rights of holders of Senior Indebtedness to receive distributions otherwise
payable to Holders of Subordinated Securities.

SECTION 10.08                                             Subordination May Not Be Impaired by the Issuers.

No right of any
holder of Senior Indebtedness to enforce the subordination of the Debt
evidenced by the Subordinated Securities and any related Guarantee shall be
impaired by any act or failure to act by the Issuers or the Subsidiary
Guarantors or by its or their failure to comply with this Indenture.

SECTION 10.09                                             Rights of Trustee and Paying Agent.

Notwithstanding
Sections 10.02 and 10.03, the Trustee or any Paying Agent may continue to make
payments on Subordinated Securities and shall not be charged with knowledge of
the existence of facts that would prohibit the making of any such payments
unless, not less than two Business Days prior to the date of such payment, a
Responsible Officer of the Trustee receives notice satisfactory to it that
payments may not be made under this Article X. The Issuers, the Registrar, any
Paying Agent, a Representative or a holder of Senior Indebtedness may give the
notice; provided, however, that, if an issue of
Senior Indebtedness has a Representative, only the Representative may give the
notice on behalf of the holders of the Senior Indebtedness of that issue.

The Trustee in its
individual or any other capacity may hold Senior Indebtedness with the same
rights it would have if it were not the Trustee. The Registrar and any Paying
Agent may do the same with like rights. The Trustee shall be entitled to all of
the rights set forth in this 

 53
 

Article
X with respect to any Senior Indebtedness which may at any time be held by it,
to the same extent as any other holder of Senior Indebtedness; and nothing in
Article VII shall deprive the Trustee of any of its rights as such holder.
Nothing in this Article X shall apply to claims of, or payments to, the Trustee
under or pursuant to Section 7.07.

SECTION 10.10                                             Distribution or Notice to Representative.

Whenever a
distribution is to be made or a notice given to holders of Senior Indebtedness,
the distribution may be made and the notice given to their Representative (if
any).

SECTION 10.11                                             Article X Not to Prevent Defaults or Limit Right to Accelerate.

The failure to
make a payment pursuant to the Subordinated Securities, whether directly or
pursuant to the related Guarantees, if any by reason of any provision in this
Article X shall not be construed as preventing the occurrence of a Default or
Event of Default. Nothing in this Article X shall have any effect on the right
of the Holders or the Trustee to accelerate the maturity of either the
Subordinated Securities or the Securities, as the case may be.

SECTION 10.12                                             Trust Moneys Not Subordinated.

Notwithstanding
anything contained herein to the contrary, payments from money or the proceeds
of U.S. Government Obligations held in trust under Article VIII by the Trustee
for the payment of principal of, and premium, if any, and interest on, the
Subordinated Securities or the Securities shall not be subordinated to the
prior payment of any Senior Indebtedness or subject to the restrictions set
forth in this Article X, and none of the Holders thereof shall be obligated to
pay over any such amount to the Issuers, the Subsidiary Guarantors or any holder
of Senior Indebtedness or any other creditor of the Issuers or the Subsidiary
Guarantors.

SECTION 10.13                                             Trustee Entitled to Rely.

Upon any payment
or distribution pursuant to this Article X, the Trustee and the Holders shall
be entitled to rely upon any order or decree of a court of competent
jurisdiction in which any proceedings of the nature referred to in Section
10.02 are pending, upon a certificate of the liquidating trustee or agent or
other Person making such payment or distribution to the Trustee or to such
Holders or upon the Representatives for the holders of Senior Indebtedness for
the purpose of ascertaining the Persons entitled to participate in such payment
or distribution, the holders of the Senior Indebtedness and other Debt of the
Issuers or the Subsidiary Guarantors, the amount thereof or payable thereon,
the amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Article X. In the event that the Trustee determines, in good
faith, that evidence is required with respect to the right of any Person as a
holder of Senior Indebtedness to participate in any payment or distribution
pursuant to this Article X, the Trustee may request such Person to furnish
evidence to the reasonable satisfaction of the Trustee as to the amount of
Senior Indebtedness held by such Person, the extent to which such Person is
entitled to participate in such payment or distribution and other facts
pertinent to the rights of such Person under this Article X, and, if such
evidence is not furnished, the Trustee may defer any payment to such Person
pending judicial determination as to the right of such Person to receive such
payment. The provisions of Sections 7.01 and 7.02 shall be applicable to all
actions or omissions of actions by the Trustee pursuant to this Article X.

 54
 

 

SECTION 10.14                                             Trustee to Effectuate Subordination.

Each Holder by
accepting a Subordinated Security and any related Guarantee authorizes and
directs the Trustee on his behalf to take such action as may be necessary or
appropriate to acknowledge or effectuate the subordination between the Holders
of Subordinated Securities and the holders of Senior Indebtedness as provided
in this Article X and appoints the Trustee as attorney-in-fact for any and all
such purposes.

SECTION 10.15                                             Trustee Not Fiduciary for Holders of Senior Indebtedness.

The Trustee shall
not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness
and shall not be liable to any such holders if it shall mistakenly pay over or
distribute to Holders of Subordinated Securities or the Issuers or the
Subsidiary Guarantors or any other Person, money or assets to which any holders
of Senior Indebtedness shall be entitled by virtue of this Article X or
otherwise.

SECTION 10.16                                             Reliance by Holders of Senior Indebtedness on Subordination Provisions.

Each Holder by
accepting a Subordinated Security and any related Guarantee acknowledges and
agrees that the foregoing subordination provisions are, and are intended to be,
an inducement and a consideration to each holder of any Senior Indebtedness,
whether such Senior Indebtedness was created or acquired before or after the
issuance of the Subordinated Securities, to acquire and continue to hold, or to
continue to hold, such Senior Indebtedness and such holder of Senior
Indebtedness shall be deemed conclusively to have relied on such subordination
provisions in acquiring and continuing to hold, or in continuing to hold, such
Senior Indebtedness.

ARTICLE XI

GUARANTEE

SECTION 11.01                                             Guarantee.

(a)           Notwithstanding
any provision of this Article XI to the contrary, the provisions of this
Article XI relating to the Subsidiary Guarantors shall be applicable only to,
and inure solely to the benefit of, the Securities of any series designated,
pursuant to Section 2.01, as entitled to the benefits of the related Guarantee
of each of the Subsidiary Guarantors.

(b)           For
value received, each of the Subsidiary Guarantors hereby fully, unconditionally
and absolutely guarantees (each, a “Guarantee”) to the Holders and to the
Trustee the due and punctual payment of the principal of, and premium, if any,
and interest on the Securities and all other amounts due and payable under this
Indenture and the Securities by the Issuers, when and as such principal,
premium, if any, and interest shall become due and payable, whether at the
Stated Maturity or by declaration of acceleration, call for redemption or
otherwise, according to the terms of the Securities and this Indenture, subject
to the limitations set forth in Section 11.03 and the subordination provisions
contained in Article X.

(c)           Failing
payment when due of any amount guaranteed pursuant to the related Guarantee,
for whatever reason, each of the Subsidiary Guarantors will be jointly and 

 55
 

severally obligated to pay the same immediately, subject to the
subordination provisions contained in Article X. Each of the Guarantees
hereunder is intended to be a general, unsecured obligation of the related
Subsidiary Guarantor and will be subordinated in right of payment to all
unsecured and unsubordinated Debt of such Subsidiary Guarantor.  Each of the Subsidiary Guarantors hereby
agrees that its obligations hereunder shall be full, unconditional and
absolute, irrespective of the validity, regularity or enforceability of the
Securities, its Guarantee, the Guarantee of any other Subsidiary Guarantor or
this Indenture, the absence of any action to enforce the same, any waiver or
consent by any Holder of the Securities with respect to any provisions hereof
or thereof, the recovery of any judgment against the Issuers or any Subsidiary
Guarantor, or any action to enforce the same or any other circumstances which
might otherwise constitute a legal or equitable discharge or defense of the
Subsidiary Guarantors.  Each of the
Subsidiary Guarantors hereby agrees that in the event of a default in payment
of the principal of, or premium, if any, or interest on the Securities of such
series, whether at the Stated Maturity or by declaration of acceleration, call
for redemption or otherwise, legal proceedings may be instituted by the Trustee
on behalf of the Holders or, subject to Section 6.06, by the Holders, on the
terms and conditions set forth in this Indenture, directly against such
Subsidiary Guarantor to enforce such Guarantee without first proceeding against
the Issuers or any other Subsidiary Guarantor.

(d)           The
obligations of each of the Subsidiary Guarantors under this Article XI shall be
as aforesaid full, unconditional and absolute and shall not be impaired,
modified, released or limited by any occurrence or condition whatsoever,
including, without limitation, (i) any compromise, settlement, release, waiver,
renewal, extension, indulgence or modification of, or any change in, any of the
obligations and liabilities of the Issuers or any of the Subsidiary Guarantors
contained in the Securities or this Indenture, (ii) any impairment,
modification, release or limitation of the liability of the Issuers, any of the
Subsidiary Guarantors or any of their estates in bankruptcy, or any remedy for
the enforcement thereof, resulting from the operation of any present or future
provision of any applicable Bankruptcy Law, as amended, or other statute or
from the decision of any court, (iii) the assertion or exercise by the Issuers,
any of the Subsidiary Guarantors or the Trustee of any rights or remedies under
the Securities or this Indenture or their delay in or failure to assert or
exercise any such rights or remedies, (iv) the assignment or the purported
assignment of any property as security for the Securities, including all or any
part of the rights of the Issuers or any of the Subsidiary Guarantors under
this Indenture, (v) the extension of the time for payment by the Issuers or any
of the Subsidiary Guarantors of any payments or other sums or any part thereof
owing or payable under any of the terms and provisions of the Securities or
this Indenture or of the time for performance by the Issuers or any of the
Subsidiary Guarantors of any other obligations under or arising out of any such
terms and provisions or the extension or the renewal of any thereof, (vi) the
modification or amendment (whether material or otherwise) of any duty,
agreement or obligation of the Issuers or any of the Subsidiary Guarantors set
forth in this Indenture, (vii) the voluntary or involuntary liquidation,
dissolution, sale or other disposition of all or substantially all of the
assets, marshaling of assets and liabilities, receivership, insolvency,
bankruptcy, assignment for the benefit of creditors, reorganization,
arrangement, composition or readjustment of, or other similar proceeding
affecting, the Issuers or any of the Subsidiary Guarantors or any of their
respective assets, or the disaffirmance of the Securities, the Guarantee or
this Indenture in any such proceeding, (viii) the release or discharge of the
Issuers or any of the Subsidiary Guarantors from the performance or observance
of any agreement, covenant, term or condition contained in 

 56
 

any of such instruments by operation of law, (ix) the unenforceability
of the Securities of such series, the related Guarantees or this Indenture or
(x) any other circumstances (other than payment in full or discharge of all
amounts guaranteed pursuant to the related Guarantees) which might otherwise
constitute a legal or equitable discharge of a surety or guarantor.

(e)           Each
of the Subsidiary Guarantors hereby (i) waives diligence, presentment, demand
of payment, filing of claims with a court in the event of the merger,
insolvency or bankruptcy of the Issuers or any of the Subsidiary Guarantors,
and all demands whatsoever, (ii) acknowledges that any agreement, instrument or
document evidencing its Guarantee may be transferred and that the benefit of
its obligations hereunder shall extend to each holder of any agreement,
instrument or document evidencing its Guarantee without notice to it and (iii)
covenants that its Guarantee will not be discharged except by complete
performance of such Guarantee.  Each of
the Subsidiary Guarantors further agrees that if at any time all or any part of
any payment theretofore applied by any Person to its Guarantee is, or must be,
rescinded or returned for any reason whatsoever, including, without limitation,
the insolvency, bankruptcy or reorganization of the Issuers or any of the
Subsidiary Guarantors, such Guarantee shall, to the extent that such payment is
or must be rescinded or returned, be deemed to have continued in existence
notwithstanding such application, and such Guarantee shall continue to be
effective or be reinstated, as the case may be, as though such application had
not been made.

(f)            Each
of the Subsidiary Guarantors shall be subrogated to all rights of the Holders
and the Trustee against the Issuers in respect of any amounts paid by such
Subsidiary Guarantor pursuant to the provisions of this Indenture; provided, however, that such Subsidiary Guarantor, shall not
be entitled to enforce or to receive any payments arising out of, or based
upon, such right of subrogation until all of the Securities of such series and
the related Guarantees shall have been paid in full or discharged.

SECTION 11.02                                             Execution and Delivery of Guarantees.

To further
evidence its Guarantee set forth in Section 11.01, each of the Subsidiary
Guarantors hereby agrees that a notation relating to such Guarantee (the “Notation
of Guarantee”), substantially in the form attached hereto as Annex A, shall be
endorsed on each Security of the series entitled to the benefits of such
Guarantee authenticated and delivered by the Trustee, which Notation of
Guarantee shall be executed by either manual or facsimile signature of an
Officer of such Subsidiary Guarantor. 
Each of the Subsidiary Guarantors hereby agrees that its Guarantee set
forth in Section 11.01 shall remain in full force and effect notwithstanding
any failure to endorse on each Security the Notation of Guarantee relating to
such Guarantee. If any Officer of such Subsidiary Guarantor, whose signature is
on this Indenture or the Notation of Guarantee no longer holds that office at
the time the Trustee authenticates such Security or at any time thereafter, the
Guarantee of such Security shall be valid nevertheless. The delivery of any
Security of a series entitled to the benefits of a Guarantee under this Article
XI by the Trustee, after the authentication thereof hereunder, shall constitute
due delivery of the Guarantee set forth in this Indenture on behalf of each
Subsidiary Guarantor.

 57
 

 

SECTION 11.03                                             Limitation on Liability of the Subsidiary Guarantors.

Each Subsidiary
Guarantor and by its acceptance hereof each Holder of a Security of a series
entitled to the benefits of a Guarantee under this Article XI hereby confirms
that it is the intention of all such parties that the guarantee by such
Subsidiary Guarantor pursuant to its Guarantee not constitute a fraudulent
transfer or conveyance for purposes of any federal or state law. To effectuate
the foregoing intention, the Holders of a Security entitled to the benefits of
such Guarantee and the Subsidiary Guarantors hereby irrevocably agree that the
obligations of each Subsidiary Guarantor under its Guarantee shall be limited
to the maximum amount as will, after giving effect to all other contingent and
fixed liabilities of such Subsidiary Guarantor and 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 Guarantee, result
in the obligations of such Subsidiary Guarantor under its Guarantee not
constituting a fraudulent conveyance or fraudulent transfer under federal or
state law.

SECTION 11.04                                             Release of Subsidiary Guarantors from Guarantee.

(a)           Notwithstanding
any other provisions of this Indenture, the Guarantee of any Subsidiary
Guarantor may be released upon the terms and subject to the conditions set
forth in this Section 11.04. Provided that no Default shall have occurred and
shall be continuing under this Indenture, any Guarantee incurred by a
Subsidiary Guarantor pursuant to this Article XI shall be unconditionally
released and discharged (i) automatically upon (A) any sale, exchange or
transfer, whether by way of merger or otherwise, to any Person that is not an
Affiliate of the Issuers, of all of the Issuers’ direct or indirect equity
interests in such Subsidiary Guarantor (provided such
sale, exchange or transfer is not prohibited by this Indenture) or (B) the
merger of such Subsidiary Guarantor into the Issuers or any other Subsidiary
Guarantor or the liquidation and dissolution of such Subsidiary Guarantor (in
each case to the extent not prohibited by this Indenture) or (ii) following
delivery of a written notice of such release or discharge by the Issuers to the
Trustee, upon the release or discharge of all guarantees by such Subsidiary
Guarantor of any Debt of the Issuers other than obligations arising under this Indenture
and any Securities issued hereunder, except a discharge or release by or as a
result of payment under such guarantees.

(b)           The
Trustee shall deliver an appropriate instrument evidencing any release of a
Subsidiary Guarantor from its Guarantee upon receipt of a written request of
the Issuers accompanied by an Officers’ Certificate and an Opinion of Counsel
that the Subsidiary Guarantor is entitled to such release in accordance with
the provisions of this Indenture. If the Subsidiary Guarantor is not so
released, it shall remain liable for the full amount of principal of (and
premium, if any, on) and interest on the Securities entitled to the benefits of
such Guarantee as provided in this Indenture, subject to the limitations of
Section 11.03.

SECTION 11.05                                             Contribution.

In order to
provide for just and equitable contribution among the Subsidiary Guarantors,
the Subsidiary Guarantors hereby agree, inter se, that in the event any payment
or distribution is made by any Subsidiary Guarantor (a “Funding Guarantor”)
under its Guarantee, such Funding Guarantor shall be entitled to a contribution
from each other Subsidiary Guarantor 

 58
 

(as
applicable) in a pro rata amount based on the net assets of each Subsidiary
Guarantor (including the Funding Guarantor) for all payments, damages and
expenses incurred by that Funding Guarantor in discharging the Issuers’
obligations with respect to the Securities of a series entitled to the benefits
of a Guarantee under this Article XI or any other Subsidiary Guarantor’s obligations
with respect to its Guarantee of such series of Securities.

ARTICLE XII

MISCELLANEOUS

SECTION 12.01                                             Trust Indenture Act Controls.

If any provision
of this Indenture limits, qualifies or conflicts with the duties imposed by
operation of TIA § 318(c), the imposed duties shall control.

SECTION 12.02                                             Notices.

Any notice or
communication by the Issuers, any Subsidiary Guarantor or the Trustee to the
others is duly given if in writing and delivered in person or mailed by
first-class mail (registered or certified, return receipt requested), telex,
facsimile or overnight air courier guaranteeing next day delivery, to the other’s
address:

	
  If to the Issuers or any
  Subsidiary Guarantor:

  
	
   

  
	
  K-Sea Transportation Partners L.P.

  
	
  One Tower Center Boulevard

  
	
  East Brunswick, New Jersey 08816

  
	
  Attn: John J. Nicola

  
	
  Telephone: (732) 339-6100

  
	
  Facsimile: (732) 

  
	
   

  
	
  If to the Trustee:

  
	
   

  
	
  Attn:

  
	
  Telephone:

  
	
  Facsimile:

  

 

The Issuers, any
Subsidiary Guarantor or the Trustee by notice to the others may designate
additional or different addresses for subsequent notices or communications.

All notices and
communications shall be deemed to have been duly given: at the time delivered
by hand, if personally delivered; five Business Days after being deposited in
the mail, postage prepaid, if mailed; when answered back, if telexed; when
receipt acknowledged, if by facsimile; and the next Business Day after timely
delivery to the courier, if sent by overnight air courier guaranteeing next day
delivery.

Any notice or
communication to a Holder shall be mailed by first-class mail, postage prepaid,
to the Holder’s address shown on the register kept by the Registrar.  Failure to 

 59
 

mail a
notice or communication to a Holder or any defect in it shall not affect its
sufficiency with respect to other Holders.

If a notice or
communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it, except
in the case of notice to the Trustee, it is duly given only when received.

If the Issuers or
a Subsidiary Guarantor mails a notice or communication to Holders, it shall
mail a copy to the Issuers and the other Subsidiary Guarantors, as the case may
be, and to the Trustee and each Agent at the same time.

All notices or
communications, including, without limitation, notices to the Trustee, the
Issuers or a Subsidiary Guarantor by Holders, shall be in writing, except as
otherwise set forth herein.

In case by reason
of the suspension of regular mail service, or by reason of any other cause, it
shall be impossible to mail any notice required by this Indenture, then such
method of notification as shall be made with the approval of the Trustee shall
constitute a sufficient mailing of such notice.

SECTION 12.03                                             Communication by Holders with Other Holders.

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

SECTION 12.04                                             Certificate and Opinion as to Conditions Precedent.

Upon any request
or application by the Issuers or a Subsidiary Guarantor to the Trustee to take
any action under this Indenture, the Issuers or such Subsidiary Guarantor, as
the case may be, shall, if requested by the Trustee, furnish to the Trustee at
the expense of the Issuers or such Subsidiary Guarantor, as the case may be:

(1)           an Officers’ Certificate (which shall
include the statements set forth in Section 12.05) stating that, in the
opinion of the signers, all conditions precedent and covenants, if any,
provided for in this Indenture relating to the proposed action have been
complied with; and

(2)           an Opinion of Counsel (which shall
include the statements set forth in Section 12.05 hereof) stating that, in
the opinion of such counsel, all such conditions precedent and covenants have
been complied with.

 

 60

SECTION 12.05                                             Statements Required in Certificate or Opinion.

Each certificate or
opinion with respect to compliance with a condition or covenant provided for in
this Indenture (other than a certificate provided pursuant to TIA § 314(a)(4))
shall comply with the provisions of TIA § 314(e) and shall include:

(1)           a statement that the Person making
such certificate or opinion has read such covenant or condition;

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

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

(4)           a statement as to whether or not, in
the opinion of such Person, such condition or covenant has been complied with.

SECTION 12.06                                             Rules by Trustee and Agents.

The Trustee may make reasonable rules for action by or
at a meeting of Holders.  The Registrar
or the Paying Agent may make reasonable rules and set reasonable requirements
for its functions.

SECTION 12.07                                             Legal Holidays.

If a payment date is a Legal Holiday at a Place of
Payment, payment may be made at that place on the next succeeding day that is
not a Legal Holiday, and no interest shall accrue for the intervening period.

SECTION 12.08                                             No Recourse Against Others.

Obligations of the Issuers and a Subsidiary Guarantor
under this Indenture, the Securities and the related Guarantees, if any, are
non-recourse to the General Partner, and its respective Affiliates (other than
the Issuers and such Subsidiary Guarantor), and payable only out of cash flow
and assets of the Issuers and such Subsidiary Guarantor.  The Trustee, and each Holder of a Security by
its acceptance thereof, will be deemed to have agreed in this Indenture that
(1) neither the General Partner nor its assets (nor any of its respective
Affiliates other than the Issuers and a Subsidiary Guarantor, nor its
respective assets) shall be liable for any of the obligations of the Issuers
and a Subsidiary Guarantor under this Indenture, such Securities or such
related Guarantees, and (2) no director, manager, officer, employee, partner or
unitholder, as such, of the Issuers, a Subsidiary Guarantor, the Trustee, the
General Partner, K-Sea GP or any Affiliate of any of the foregoing
entities shall have any personal liability in respect of the obligations of the
Issuers and a Subsidiary Guarantor under this Indenture, such Securities or
such related Guarantees by reason of his, her or its status.  Each Holder by accepting a Security

 61
 

 

waives and releases all
such liability.  The waiver and release
shall be part of the consideration for the issuance of Securities.

SECTION 12.09                                             Governing Law.

THIS INDENTURE, THE SECURITIES AND THE GUARANTEES
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK, WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS
TO THE EXTENT THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

SECTION 12.10                                             No Adverse Interpretation of Other Agreements.

This Indenture may not be used to interpret another
indenture, loan or debt agreement of the Issuers, any Subsidiary Guarantor or
any other Subsidiary of the Issuers.  Any
such indenture, loan or debt agreement may not be used to interpret this
Indenture.

SECTION 12.11                                             Successors.

All agreements of the Issuers and each of the
Subsidiary Guarantors in this Indenture and the Securities shall bind its
successors.  All agreements of the
Trustee in this Indenture shall bind its successors.

SECTION 12.12                                             Severability.

In case any provision in this Indenture or in the
Securities or in any Guarantee shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall, to the
fullest extent permitted by applicable law, not in any way be affected or
impaired thereby.

SECTION 12.13                                             Counterpart Originals.

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

SECTION 12.14                                             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 or provisions hereof.

 62

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

	
  

  	
   

  	
  K-SEA TRANSPORTATION PARTNERS L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K-Sea General Partner L.P.,

  
	
   

  	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  K-Sea General Partner GP LLC,

  
	
   

  	
   

  	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K-SEA TRANSPORTATION FINANCE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [NAME(S) OF SUBSIDIARY GUARANTOR(S)]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
														

 

 S-1
 

 

	
  

  	
   

  	
  [                               ],
  AS TRUSTEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
						

 

 S-2

ANNEX A

NOTATION OF GUARANTEE

Each of the Subsidiary Guarantors (which term includes
any successor Person under the Indenture) has fully, unconditionally and
absolutely guaranteed, to the extent set forth in the Indenture and subject to
the provisions in the Indenture, the due and punctual payment of the principal
of, and premium, if any, and interest on the Securities and all other amounts
due and payable under the Indenture and the Securities by the Issuers.

The obligations of the Subsidiary Guarantors to the
Holders of Securities and to the Trustee pursuant to the Guarantee and the
Indenture are expressly set forth in Articles X and XI of the Indenture and
reference is hereby made to the Indenture for the precise terms of the
Guarantee.

	
  

  	
   

  	
  [NAME(S) OF SUBSIDIARY GUARANTOR(S)]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

 A-1Exhibit
10.1

SALLY
BEAUTY HOLDINGS 2007 OMNIBUS INCENTIVE PLAN

STOCK
OPTION AGREEMENT

FOR
INDEPENDENT DIRECTORS

Optionee:

Total Shares
Subject to Option:

Exercise Price Per
Share:

	
  Date of Grant:

  	
  April 26, 2007

  
	
   

  	
   

  
	
  Vesting Commencement
  Date:

  	
  September 30, 2006

  
	
   

  	
   

  
	
  Expiration Date:

  	
  April 26, 2017

  
	
   

  	
   

  
	
  Type of Stock Option:

  	
  Non-Statutory Stock
  Option

  

 

1.             Grant
of Option.  Sally Beauty Holdings,
Inc., a Delaware corporation (the “Company”),
hereby grants to the optionee named above (the “Optionee”) an option (the “Option”) to purchase the total number of shares of
Common Stock set forth above (the “Shares”)
at the exercise price per Share set forth above (the “Exercise Price”), in accordance with this Stock Option
Agreement (“Option Agreement”)
and subject to the terms and conditions of the Sally Beauty Holdings 2007
Omnibus Incentive Plan, as amended from time to time (the “Plan”), which are
incorporated herein by reference.  Unless
otherwise defined herein, capitalized terms used herein shall have the same
meanings ascribed to them in the Plan.

2.             Vesting;
Time of Exercise.  Subject to the
terms and conditions of the Plan and this Option Agreement, the Option shall
vest and become exercisable in the following cumulative installments, as
follows:

(a)           Twenty-five percent (25%) of the Shares
shall be exercisable at any time on or after the day immediately preceding the
first anniversary of the vesting commencement date set forth above (the “Vesting
Commencement Date”);

(b)           Up to an additional twenty-five percent
(25%) of the Shares shall become exercisable at any time on or after the day
immediately preceding the second anniversary of the Vesting Commencement Date;

(c)           Up to an additional twenty-five percent
(25%) of the Shares shall become 

exercisable at any time on or after the day
immediately preceding the third anniversary of the Vesting Commencement Date;
and

(d)           The remaining Shares shall become
exercisable at any time on or after the day immediately preceding the fourth
anniversary of the Vesting Commencement Date.

If an installment covers
a fractional Share, such installment will be rounded to the next highest Share,
except the final installment, which will be for the balance of the total
Shares; provided, that, absent the occurrence of an Adjustment Event as
described in Section 4.4 of the Plan, the Optionee shall in no event be
entitled under the Option to purchase a number of shares of Common Stock
greater than the “Total Shares Subject to Option” indicated above.  Unless Otherwise provided in the Plan or this
Option Agreement, the Option shall expire on the Expiration Date set forth
above and must be exercised, if at all, on or before the Expiration Date.  Unless otherwise provided below, upon the
effective date of an Optionee’s termination of service the unvested portion of
the Optionee’s Option under this Option Agreement shall be forfeited.

If during the term of
this Option Agreement the Optionee is involuntarily terminated by the Company
without Cause, or if the Optionee’s service with the Company is terminated as a
result of the Optionee’s death or Disability, then this Option shall become
fully vested and exercisable with respect to all Shares subject to Option as of
the effective date of the Optionee’s termination of service as a result of the
Optionee’s death, Disability, or involuntary termination other than for
Cause.  If the Optionee voluntarily
terminates service with the Company for any reason, the Option shall be
exercisable only to the extent the Optionee was vested in the Option on the
effective date of such termination of service. 
Unless, as described in Section 9.2 of the Plan, an Alternative Award
replaces this Option, this Option shall become fully vested and exercisable
with respect to all Shares subject to Option upon the occurrence during the
term of this Option Agreement of a Change in Control.  Unless otherwise provided for in this Option
Agreement, if the Optionee’s service with the Company is terminated for Cause,
then the entire Option, whether or not vested, shall be immediately forfeited
and cancelled as of the date of such termination.

3.             Exercise
of Option.

(a)           Right to Exercise.  The Option shall be exercisable in accordance
with the vesting provisions contained in Section 2 of this Option Agreement and
with the other applicable provisions of the Plan and this Option
Agreement.  The Option shall be subject
to the provisions of Article IX of the Plan relating to the exercisability or
termination of the Option in the event of a Change in Control.

(b)           Method of Exercise.  The Option shall be exercisable only by
delivery to the Company of an executed Stock Option Exercise Notice (the “Exercise
Notice”) in the form attached hereto as Exhibit A, or in such other form
approved by the Committee, which shall state the Optionee’s election to
exercise the Option, the whole number of Shares in respect of which the Option
is being exercised, and such other provisions as may be required by the
Committee or necessary to comply with securities and other applicable laws. The
Exercise Notice shall be 

 2
 

signed by the Optionee and shall be delivered
to the Company by such method as may be permitted by the Committee, accompanied
(in any case) by payment of, or provision for the payment of, the Exercise Price
for each Share covered by the Exercise Notice, as described in Section 4 of
this Option Agreement.  The Option shall
be deemed to be exercised to the extent provided in the Exercise Notice upon
receipt by the Company of such written Exercise Notice and the Exercise Price.

(c)           Issuance of Shares.  If the Exercise Notice and payment are in a
form and substance satisfactory to the Company (or its counsel), and the
Optionee or any other person permitted to exercise the Option has complied with
Section 5 of this Option Agreement, the Company shall issue or cause the
issuance of, in the name of the Optionee or Optionee’s legal representative,
the Shares purchased by such exercise of the Option.

4.             Method
of Payment. The Optionee’s delivery of the signed Exercise Notice to
exercise the Option (in whole or in part) shall be accompanied by full payment
of the Exercise Price for the Shares being purchased.  Payment for the Shares may be made in cash
(by check) or at the election of the Optionee and where permitted by law in one
or more of the following methods: (i) if a public market for the Common Stock
exists, through a “same day sale” arrangement between the Optionee and a
broker-dealer that is a member of the National Association of Securities
Dealers, Inc. (an “NASD Dealer”) whereby the Optionee elects to exercise
the Stock Option and to sell a portion of the shares of Common Stock so
purchased to pay for the exercise price and whereby the NASD Dealer commits
upon receipt of such shares of Common Stock to forward the exercise price
directly to the Company; (ii) if a public market for the Common Stock exists,
through a “margin” commitment from the Optionee and an NASD Dealer whereby the
Optionee elects to exercise the Stock Option and to pledge the shares of Common
Stock so purchased to the NASD Dealer in a margin account as security for a
loan from the NASD Dealer in the amount of the exercise price, and whereby the
NASD Dealer commits upon receipt of such shares of Common Stock to forward the
exercise price directly to the Company; (iii) in any other form of valid
consideration that is acceptable to the Committee in its sole discretion;
provided, however, that such other form of consideration is not otherwise
prohibited by the Plan or this Option Agreement; or (iv) by any combination of
the foregoing.  Notwithstanding the
foregoing, the forms of payment provided in (i) or (ii) above shall not
be available to any Optionee who is a member of the Board or an Executive
Officer of the Company if any such form of payment would be treated as a
personal loan prohibited under Section 13(k) of the Exchange Act, and Optionee
shall not provide for payment of the Exercise Price for the Shares being
purchased by surrendering for cancellation shares of Common Stock owned by the
Optionee at the Fair Market Value per share at the time of exercise.

5.             Tax
Withholding Obligations.  No Shares
shall be delivered to the Optionee, or any other person permitted to exercise
the Option, pursuant to the exercise of the Option until the Optionee or such
other person has made arrangements acceptable to the Committee or its designee
for the satisfaction of all applicable income tax, employment tax, and social
security tax withholding obligations, including obligations incident to the
receipt of Shares.  

 3
 

Upon exercise of
the Option, the Company or the Optionee’s employer may offset or withhold (from
any amount owed by the Company or the Optionee’s employer to the Optionee) or
collect from the Optionee, or such other person, an amount sufficient to satisfy
such tax obligations and/or the employer’s withholding obligations.

6.             Post-Termination
Exercise.  If the Optionee’s service
with the Company terminates for any reason other than the Optionee’s
termination for Cause, the Optionee may, to the extent otherwise so entitled as
of the effective date of Optionee’s termination of service, exercise the Option
until the earlier of (i) the third anniversary of the effective date of the
Optionee’s termination of service other than for Cause, or (ii) the Expiration
Date set forth on the first page of this Option Agreement.  If the Option is not exercised to the extent
so entitled within the time specified in this Section 6, the Option shall
terminate.  If the Optionee’s service
with the Company is terminated for Cause, the Optionee’s right to exercise the
Option shall, except as otherwise determined by the Committee, immediately
terminate concurrently with the termination of the Optionee’s service with the
Company.  For purposes of this Option
Agreement, the term “Cause” for termination by the Company of the Optionee’s
service with the Company shall have the meaning provided in the Plan.  In no event may the Option be exercised later
than the Expiration Date set forth on the first page of this Option Agreement.

7.             Transferability
of Option.  Neither the Option nor
any of the Optionee’s rights under this Option Agreement may be transferred or
assigned in any manner other than by will or by the law of descent and
distribution or as may otherwise be permitted by the Committee or by the terms
of the Plan.  The Option and those rights
may be exercised during the lifetime of the Optionee only by the Optionee.

8.             Tax
Consequences.  Set forth below is a
brief summary, as of the Date of Grant, of some of the federal tax consequences
of exercise of the Option and disposition of the Shares.  THIS SUMMARY IS NECESSARILY INCOMPLETE, AND
THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.  THE OPTIONEE SHOULD CONSULT A TAX ADVISOR
BEFORE EXERCISING THE OPTION OR DISPOSING OF THE SHARES.

(a)           Exercise of Non-Qualified Stock Option.  There may be a regular federal income tax
liability upon the exercise of the Option. 
The Optionee will be treated as having received compensation income
(taxable at ordinary income tax rates) equal to the excess, if any, of the Fair
Market Value of the Shares on the date of exercise over the Exercise
Price.  If the Optionee is an Employee or
former Employee, the Company will be required to withhold from the Optionee’s
compensation or collect from the Optionee and pay to the applicable taxing
authorities an amount equal to a percentage of this compensation income at the
time of exercise.

(b)           Disposition of Shares.  If the Shares are held for at least one year
before disposition, any gain on disposition of the Shares will be treated as
long-term capital gain for federal income tax purposes.

 4
 

9.             Term
of Option.  Except as may otherwise
be provided under the Plan in connection with the termination of Optionee’s
employment as a result of the Optionee’s death or Disability, the Option may be
exercised no later than the Expiration Date or such earlier date as otherwise
provided in this Option Agreement.

10. Entire Agreement; Governing Law.  The Plan and this Option Agreement (with the
Exercise Notice, if the Option is exercised) constitute the entire agreement of
the Company and the Optionee (collectively the “Parties”) with respect to the
subject matter hereof and supersede in their entirety all prior undertakings
and agreements of the Parties with respect to the subject matter hereof, and
may not be modified adversely to the Optionee’s interest except by means of a
writing signed by the Parties.  Nothing
in the Plan and this Option Agreement (except as expressly provided therein or
herein) is intended to confer any rights or remedies on any person other than
the Parties.  The Plan and this Option
Agreement are to be construed in accordance with and governed by the internal
laws of the State of Delaware without giving effect to any choice-of-law rule
that would cause the application of the laws of any jurisdiction other than the
internal laws of the State of Delaware, to the rights and duties of the
Parties.  Should any provision of the
Plan or this Option Agreement be determined by a court of law to be illegal or
unenforceable, such provision shall be enforced to the fullest extent allowed
by law and the other provisions shall nevertheless remain effective and shall
remain enforceable.

11. Interpretive Matters. 
Whenever required by the context, pronouns and any variation thereof
shall be deemed to refer to the masculine, feminine, or neuter, and the
singular shall include the plural, and vice versa.  The term “include” or “including” does not
denote or imply any limitation.  The
captions and headings used in this Option Agreement are inserted for
convenience and shall not be deemed a part of the Option or this Option
Agreement for construction or interpretation.

12. Notice.  Any notice or
other communication required or permitted hereunder shall be given in writing
and shall be deemed given, effective, and received upon prepaid delivery in
person or by courier or upon the earliest of delivery or the third business day
after deposit in the United States mail if sent by certified mail, with postage
and fees prepaid, addressed to the other Party at its address as shown beneath
its signature in this Option Agreement, or to such other address as such Party
may designate in writing from time to time by notice to the other Party in
accordance with this Section 12.

	
  

  	
  SALLY BEAUTY HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

 5
 

THE OPTIONEE
ACKNOWLEDGES AND AGREES THAT, EXCEPT AS EXPRESSLY PROVIDED OTHERWISE HEREIN,
THE SHARES SUBJECT TO THE OPTION SHALL VEST, IF AT ALL, ONLY DURING THE PERIOD
OF THE OPTIONEE’S CONTINUOUS SERVICE (NOT THROUGH THE ACT OF BEING HIRED, BEING
GRANTED THE OPTION OR ACQUIRING SHARES HEREUNDER).  THE OPTIONEE FURTHER ACKNOWLEDGES AND AGREES
THAT NOTHING IN THIS OPTION AGREEMENT OR THE PLAN SHALL CONFER UPON THE
OPTIONEE ANY RIGHT WITH RESPECT TO FUTURE GRANTS OR CONTINUATION OF THE
OPTIONEE’S CONTINUOUS SERVICE, NOR SHALL IT INTERFERE IN ANY WAY WITH THE
OPTIONEE’S RIGHT OR THE RIGHT OF THE OPTIONEE’S EMPLOYER TO TERMINATE OPTIONEE’S
CONTINUOUS SERVICE, WITH OR WITHOUT CAUSE, AND WITH OR WITHOUT NOTICE.  THE OPTIONEE ACKNOWLEDGES THAT UNLESS THE
OPTIONEE HAS A WRITTEN EMPLOYMENT AGREEMENT WITH THE COMPANY TO THE CONTRARY,
THE OPTIONEE’S STATUS IS AT-WILL.

The Optionee
acknowledges receipt of a copy of the Plan, represents that he or she is
familiar with the terms and provisions thereof, and hereby accepts this Option
subject to all of the terms and provisions hereof and thereof.  The Optionee has reviewed this Option
Agreement, the Plan, and the Exercise Notice in their entirety, has had an
opportunity to obtain the advice of counsel prior to executing this Option
Agreement, and fully understands all provisions of this Option Agreement, the
Plan and the Exercise Notice.  The
Optionee further agrees to provide the Company with such information as the
Company considers necessary for the administration of this Option Agreement.

	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  	
   

  
	
   

  	
   

  	
  Optionee

  	
   

  

 

 6

EXHIBIT A

SALLY BEAUTY HOLDINGS 2007 OMNIBUS INCENTIVE PLAN

STOCK OPTION EXERCISE NOTICE

This Stock Option
Exercise Notice (“Exercise
Notice”) is made this      day of             ,
20     between Sally Beauty Holdings, Inc. (the “Company”), and the
optionee named below (the “Optionee”)
pursuant to the Sally Beauty Holdings 2007 Omnibus Incentive Plan (the “Plan”).  Unless otherwise defined herein, the
capitalized terms used in this Exercise Notice shall have the meaning ascribed
to them in the Plan and in the Stock Option Agreement (“Option Agreement”) to
which this Exercise Notice relates.

Award Number:

Optionee:

Social Security
Number:

Number of Shares
Purchased:

Price Per Share:

Aggregate Purchase
Price:

Date of Grant:

Vesting
Commencement Date:

Type of Stock
Option:                              Non-Qualified
Stock Option

The Optionee hereby
delivers to the Company the Aggregate Purchase Price set forth above (“Aggregate Purchase Price”)
in cash as indicated below or to the extent provided for in the Option
Agreement and approved by the Committee by accepting this Exercise Notice, as
follows (as applicable, check and complete):

in cash in the
amount of $                ,
receipt of which is acknowledged by the Company;

through a “same-day-sale”
commitment, delivered herewith, from the Optionee and the NASD Dealer named
therein in the amount of $                       ;

through a “margin”
commitment, delivered herewith, from the Optionee and the NASD Dealer named
therein in the amount of $                     ;

The Company and
the Optionee (the “Parties”) hereby agree as follows:

1.  Purchase of Shares. 
On this date and subject to the terms and conditions of this Exercise
Notice, the Optionee hereby exercises the Option granted in the Option
Agreement between the Parties, dated as of the Date of Grant set forth above,
with respect to the Number of Shares Purchased set forth above of the Common
Stock (the “Shares”)
at the Aggregate Purchase Price equal to the Price Per Share set forth above
multiplied by the Number of Shares Purchased set forth above.  The term “Shares” refers to the Shares
purchased under this Exercise Notice and includes all securities received (a)
in replacement of the Shares, and (b) as a result of stock dividends or
stock splits in respect of the Shares.

2.  Representations of the Optionee.  The Optionee represents and warrants to the
Company that the Optionee has received, read and understood the Plan, the
Option Agreement and this Exercise Notice and agrees to abide by and be bound
by their terms and conditions.

3.  Rights as Stockholder. 
Until Optionee receive evidence of the issuance of the Shares, no right
to vote or receive dividends or any other rights as a shareholder shall exist
with respect to the Shares, notwithstanding the exercise of the Option.  To the extent the Optionee exercises the
Option pursuant to the execution and delivery of this Exercise Notice, the
Company shall issue to Optionee the shares of Common Stock covered by this
Exercise Notice.  Evidence of the issuance
of the shares of Common Stock purchased pursuant to the exercise of the Option
may be accomplished in such manner as the Company or its authorized
representatives shall deem appropriate including, without limitation,
electronic registration, book-entry registration or issuance of a certificate
or certificates in the name of the Optionee or in the name of such other party
or parties as the Company and its authorized representatives shall deem
appropriate.  No adjustment will be made
for a dividend or other right for which the record date is prior to the date
the Optionee receives evidence of the issuance of the Shares.

In the event
the shares of Common Stock issued pursuant to the exercise of this Option
remain subject to any additional restrictions, the Company and its authorized
representatives shall take such actions as the Company, or its authorized
representative, deems appropriate to ensure that the Optionee is prohibited
from entering into any transaction, which would violate any such restrictions,
until such restrictions lapse.

4.  Tax Withholding Obligations. 
The Optionee agrees to satisfy all applicable federal, state and local
income, employment and other tax withholding obligations and herewith delivers
to the Company the amount necessary, or has made arrangements acceptable to the
Company, to satisfy such obligations as provided in the Plan and the Option
Agreement.

5.  Tax Consequences.  The
Optionee understands that he or she may suffer adverse tax consequences as a
result of the Optionee’s purchase or disposition of the Shares.  The Optionee represents that the Optionee has
consulted with any tax consultant(s) he or she deems advisable in connection
with the purchase or disposition of the Shares and that Optionee is not relying
on the Company for any tax advice.

 2
 

6.  Successors and Assigns. 
The Company may assign any of its rights under this Exercise Notice, and
this Exercise Notice shall inure to the benefit of the successors and assigns
of the Company.  Subject to the
restrictions on transfer herein set forth, this Exercise Notice shall be
binding upon the Optionee and his or her heirs, executors, administrators,
successors and permitted assigns.

7.  Interpretive Matters. 
Whenever required by the context, pronouns and any variation thereof
shall be deemed to refer to the masculine, feminine, or neuter, and the
singular shall include the plural, and vice versa.  The term “include” or “including” does not
denote or imply any limitation.  The
captions and headings used in this Exercise Notice are inserted for convenience
and shall not be deemed a part of this Exercise Notice for construction or
interpretation.

8.  Entire Agreement; Governing Law.  This Exercise Notice, with the Plan and the
Option Agreement, constitute the entire agreement of the Parties with respect
to the subject matter hereof and supersede in their entirety all prior
undertakings and agreements of the Parties with respect to the subject matter
hereof, and may not be modified adversely to the Optionee’s interest except by
means of a writing signed by the Parties. 
Nothing in this Exercise Notice or in the Plan or the Option Agreement
(except as expressly provided herein or therein) is intended to confer any
rights or remedies on any person other than the Parties.  This Exercise Notice (like the Plan and the
Option Agreement) is to be construed in accordance with and governed by the
internal laws of the State of Delaware, without giving effect to any
choice-of-law rule that would cause the application of the laws of any
jurisdiction other than the internal laws of the State of Texas to the rights
and duties of the Parties.  Should any
provision of the Plan, the Option Agreement, or this Exercise Notice be
determined by a court of law to be illegal or unenforceable, such provision shall
be enforced to the fullest extent allowed by law, and the other provisions
shall nevertheless remain effective and shall remain enforceable.

9.  Notice.  Any notice or
other communication required or permitted hereunder shall be given in writing
and shall be deemed given, effective, and received upon prepaid delivery in
person or by courier or upon the earlier of delivery or the third business day
after deposit in the United States mail if sent by certified mail, with postage
and fees prepaid, addressed to the other Party at its address as shown beneath
its signature in the Option Agreement, or to such other address as such Party
may designate in writing from time to time by notice to the other Party in
accordance with this Section 10.

10. Further
Instruments.  Each Party agrees to
execute such further instruments and to take such further action as may be
necessary or reasonably appropriate to carry out the purposes and intent of
this Exercise Notice.

 3
 

 

	
  Submitted by:

  	
  Accepted by:

  
	
   

  	
   

  
	
  OPTIONEE:

  	
   

  	
   

  	
  SALLY BEAUTY HOLDINGS, INC.

  
	
   

  	
  (Print Name)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
  Dated:

  	
   

  	
   

  
								

 

 4

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