Document:

Exhibit 4.2

 

EXECUTION VERSION

	
   

  

 

 

SEALY
MATTRESS COMPANY

and

SEALY CORPORATION,

as Co-Issuers,

and

GUARANTORS
NAMED HEREIN,

as Guarantors,

and

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

as Trustee and Collateral Agent

Supplemental
Indenture

Dated
as of July 10, 2009

 

8%
Senior Secured Third Lien Convertible Notes due 2016

 

	
   

  

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
  Article 1

  	
   

  
	
  DEFINITIONS AND OTHER PROVISIONS OF GENERAL
  APPLICATION

  	
   

  
	
   

  	
   

  
	
  Section 1.01. Scope of Supplemental
  Indenture

  	
  2

  
	
  Section 1.02. Definitions

  	
  2

  
	
  Section 1.03. Incorporation by
  Reference of Trust Indenture Act

  	
  31

  
	
  Section 1.04. Rules of
  Construction

  	
  31

  
	
   

  	
   

  
	
  Article 2

  	
   

  
	
  CO-ISSUERS

  	
   

  
	
   

  	
   

  
	
  Section 2.01. Addition of Co-Issuer; Waiver of Parent Guarantee

  	
  31

  
	
   

  	
   

  
	
  Article 3

  	
   

  
	
  THE NOTES

  	
   

  
	
   

  	
   

  
	
  Section 3.01. Designation, Amount
  and Issuance of Notes

  	
  31

  
	
  Section 3.02. Form of the Notes and Transfers

  	
  32

  
	
  Section 3.03. Date and Denomination of
  Notes; Payment at Maturity; Payment of Interest

  	
  33

  
	
  Section 3.04. Outstanding Notes

  	
  35

  
	
   

  	
   

  
	
  Article 4

  	
   

  
	
  REPURCHASE OF NOTES

  	
   

  
	
   

  	
   

  
	
  Section 4.01. Repurchase at Option
  of the Holder upon a Fundamental Change

  	
  36

  
	
  Section 4.02. Notes Repurchased in
  Part

  	
  38

  
	
  Section 4.03. Covenant to Comply
  with Securities Laws Upon Repurchase of Notes

  	
  38

  
	
   

  	
   

  
	
  Article 5

  	
   

  
	
  COVENANTS

  	
   

  
	
   

  	
   

  
	
  Section 5.01. Replacement of
  Covenants in Base Indenture; Payment of Accreted Principal Amount

  	
  39

  
	
  Section 5.02. Maintenance of Office
  or Agency

  	
  39

  
	
  Section 5.03. Money For Notes
  Payments to be Held in Trust

  	
  39

  
	
  Section 5.04. Corporate Existence

  	
  40

  
	
  Section 5.05. Payment of Taxes and
  Other Claims

  	
  40

  
	
  Section 5.06. Maintenance of
  Properties

  	
  41

  
	
  Section 5.07. Insurance

  	
  41

  
	
  Section 5.08. Statement by Officers
  as to Default

  	
  42

  
	
  Section 5.09. Reports and other
  Information

  	
  42

  
	
  Section 5.10. Limitation on Incurrence
  of Indebtedness and Issuance of Disqualified Stock and Preferred Stock

  	
  43

  

 

i

 

	
  Section 5.11. Limitation On Liens

  	
  48

  
	
  Section 5.12. Limitations on
  Transactions with Affiliates

  	
  49

  
	
  Section 5.13. Limitations on Dividend
  and Other Payment Restrictions Affecting Restricted Subsidiaries

  	
  50

  
	
  Section 5.14. Limitation on Guarantees
  of Indebtedness by Restricted Subsidiaries

  	
  52

  
	
  Section 5.15. Waiver of Certain
  Covenants

  	
  53

  
	
  Section 5.16. Further Assurances and
  After-Acquired Property

  	
  53

  
	
  Section 5.17. Information Regarding
  Collateral

  	
  54

  
	
  Section 5.18. Impairment of Security
  Interest

  	
  54

  
	
   

  	
   

  
	
  Article 6

  	
   

  
	
  DEFAULTS AND REMEDIES

  	
   

  
	
   

  	
   

  
	
  Section 6.01. Replacement of
  Remedies in Base Indenture; Events of Default

  	
  54

  
	
  Section 6.02. Acceleration of
  Maturity; Rescission and Annulment

  	
  57

  
	
  Section 6.03. Collection of
  Indebtedness and Suits For Enforcement by Trustee

  	
  58

  
	
  Section 6.04. Trustee May File
  Proofs of Claim

  	
  58

  
	
  Section 6.05. Trustee
  May Enforce Claims Without Possession of Notes

  	
  59

  
	
  Section 6.06. Application of Money
  Collected

  	
  59

  
	
  Section 6.07. Limitation On Suits

  	
  59

  
	
  Section 6.08. Unconditional Right of
  Holders To Receive Accreted Principal Amount

  	
  60

  
	
  Section 6.09. Restoration of Rights
  and Remedies

  	
  60

  
	
  Section 6.10. Rights and Remedies
  Cumulative

  	
  60

  
	
  Section 6.11. Delay Or Omission Not
  Waiver

  	
  60

  
	
  Section 6.12. Control By Holders

  	
  61

  
	
  Section 6.13. Waiver of Past
  Defaults

  	
  61

  
	
  Section 6.14. Waiver of Stay Or
  Extension Laws

  	
  61

  
	
   

  	
   

  
	
  Article 7

  	
   

  
	
  DISCHARGE

  	
   

  
	
   

  	
   

  
	
  Section 7.01. Replacement of
  Discharge Provisions in Base Indenture; Satisfaction and Discharge of
  Indenture

  	
  62

  
	
  Section 7.02. Application of Trust
  Money

  	
  63

  
	
  Section 7.03. Reinstatement

  	
  63

  
	
   

  	
   

  
	
  Article 8

  	
   

  
	
  MERGER,
  CONSOLIDATION OR SALE OF ALL OR SUBSTANTIALLY ALL ASSETS

  	
   

  
	
   

  	
   

  
	
  Section 8.01. Replacement of Merger
  Provisions in Base Indenture; Co-Issuers May Consolidate, Etc., Only On
  Certain Terms

  	
  63

  
	
  Section 8.02. Guarantors
  May Consolidate, Etc., Only On Certain Terms

  	
  65

  
	
  Section 8.03. Successor Substituted

  	
  66

  

 

ii

 

	
  Article 9

  	
   

  
	
  AMENDMENT,
  SUPPLEMENT AND WAIVER

  	
   

  
	
   

  	
   

  
	
  Section 9.01. Replacement of Supplement Provisions in Base Indenture; Amendments
  Or Supplements Without Consent of Holders

  	
  66

  
	
  Section 9.02. Amendments,
  Supplements Or Waivers With Consent of Holders

  	
  67

  
	
  Section 9.03. Execution of
  Amendments, Supplements Or Waivers

  	
  68

  
	
  Section 9.04. Effect of Amendments,
  Supplements Or Waivers

  	
  69

  
	
  Section 9.05. Conformity With Trust
  Indenture Act

  	
  69

  
	
  Section 9.06. Reference In Notes To
  Supplemental Indentures

  	
  69

  
	
  Section 9.07. Notice of Supplemental
  Indentures

  	
  69

  
	
   

  	
   

  
	
  Article 10

  	
   

  
	
  CONVERSION OF
  NOTES

  	
   

  
	
   

  	
   

  
	
  Section 10.01. Right To Convert

  	
  69

  
	
  Section 10.02. Right To Terminate
  Conversion Rights

  	
  70

  
	
  Section 10.03. Limitations on Beneficial Ownership

  	
  70

  
	
  Section 10.04. Conversion Procedures;
  No Adjustment For Interest Or Dividends; Cash Payments In Lieu of Fractional
  Shares

  	
  71

  
	
  Section 10.05. Decreased Conversion
  Price Applicable To Securities Converted In Connection With Make-Whole Events

  	
  72

  
	
  Section 10.06. Adjustment of
  Conversion Price

  	
  74

  
	
  Section 10.07. Effect of
  Reclassification, Consolidation, Merger Or Sale

  	
  80

  
	
  Section 10.08. Certain Covenants

  	
  81

  
	
  Section 10.09. Notice To Holders
  Prior To Certain Actions

  	
  81

  
	
  Section 10.10. Stockholder Rights
  Plans

  	
  82

  
	
  Section 10.11. Responsibility of
  Trustee

  	
  82

  
	
   

  	
   

  
	
  Article 11

  	
   

  
	
  GUARANTEES

  	
   

  
	
   

  	
   

  
	
  Section 11.01. Guarantees

  	
  83

  
	
  Section 11.02. Severability

  	
  85

  
	
  Section 11.03. Restricted
  Subsidiaries

  	
  85

  
	
  Section 11.04. Limitation of
  Guarantors’ Liability

  	
  85

  
	
  Section 11.05. Contribution

  	
  85

  
	
  Section 11.06. Subrogation

  	
  86

  
	
  Section 11.07. Reinstatement

  	
  86

  
	
  Section 11.08. Release of A Guarantor

  	
  86

  
	
  Section 11.09. Benefits Acknowledged

  	
  86

  
	
   

  	
   

  
	
  Article 12

  	
   

  
	
  SECURITY

  	
   

  
	
   

  	
   

  
	
  Section 12.01. Collateral and
  Security Documents

  	
  86

  
	
  Section 12.02. Recordings and
  Opinions

  	
  87

  

 

iii

 

	
  Section 12.03. Release of Collateral

  	
  88

  
	
  Section 12.04. Certificates of The
  Trustee

  	
  89

  
	
  Section 12.05. Suits To Protect The
  Collateral

  	
  89

  
	
  Section 12.06. Authorization of Receipt
  of Funds By The Trustee Under The Security Documents

  	
  90

  
	
  Section 12.07. Purchase Protected

  	
  90

  
	
  Section 12.08. Powers Exercisable By
  Receiver Or Trustee

  	
  90

  
	
  Section 12.09. Release Upon
  Termination of The Co-Issuers’ Obligations

  	
  90

  
	
  Section 12.10. Collateral Agent

  	
  91

  
	
  Section 12.11. Designations

  	
  95

  
	
  Section 12.12. Compensation and
  Indemnification

  	
  95

  
	
  Section 12.13. Intercreditor
  Agreement, Security Agreement, Pledge Agreement and Other Security Documents

  	
  96

  
	
   

  	
   

  
	
  Article 13

  	
   

  
	
  RANKING OF NOTE
  LIENS

  	
   

  
	
   

  	
   

  
	
  Section 13.01. Relative Rights

  	
  96

  
	
   

  	
   

  
	
  Article 14

  	
   

  
	
  INAPPLICABLE
  PROVISIONS OF THE BASE INDENTURE

  	
   

  
	
   

  	
   

  
	
  Section 14.01. Redemption of
  Securities

  	
  97

  
	
  Section 14.02. Sinking Funds

  	
  97

  
	
   

  	
   

  
	
  Article 15

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  
	
  Section 15.01. Trust Indenture Act
  Controls

  	
  97

  
	
  Section 15.02. Communication By
  Holders With Other Holders

  	
  97

  
	
  Section 15.03. Rules By Trustee,
  Paying Agent and Security Registrar

  	
  98

  
	
  Section 15.04. GOVERNING LAW

  	
  98

  
	
  Section 15.05. No Recourse Against
  Others

  	
  98

  
	
  Section 15.06. Multiple Originals

  	
  98

  
	
  Section 15.07. Severability Clause

  	
  98

  
	
  Section 15.08. Calculations

  	
  98

  
	
  Section 15.09. Recitals

  	
  98

  
	
  Section 15.10. Ratification of Base
  Indenture

  	
  98

  
	
   

  	
   

  
	
  EXHIBITS

  	
   

  
	
   

  	
   

  
	
  Exhibit A

  	
  -

  	
  Form of Note

  	
  A-1

  
	
  Exhibit B

  	
  -

  	
  Form of Conversion Notice

  	
  B-1

  
	
  Exhibit C

  	
  -

  	
  Form of Fundamental Change
  Repurchase Notice

  	
  C-1

  
	
  Exhibit D

  	
  -

  	
  Form of Assignment

  	
  D-1

  

 

iv

 

SUPPLEMENTAL INDENTURE, dated as of July 10,
2009 by and between SEALY MATTRESS COMPANY, an Ohio corporation (the “Company”), SEALY CORPORATION, a Delaware corporation (“Parent” and, together with the Company, the “Co-Issuers”), SEALY MATTRESS CORPORATION, a Delaware
corporation (“Holdings”), and certain of the
Company’s direct and indirect wholly-owned Domestic Subsidiaries, each named in
the signature pages hereto (each, a “Subsidiary Guarantor”
and, together with Holdings, collectively, the “Guarantors”)
and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking
association, as trustee (in such capacity, the “Trustee”)
and as collateral agent (in such capacity, the “Collateral
Agent”) to the indenture dated as of July 10, 2009 among the
Company, the Guarantors (as defined therein) and the Trustee (as amended and
supplemented from time to time in accordance with the terms thereof, the “Base Indenture”).

 

RECITALS OF THE COMPANY

 

WHEREAS, the Company executed and delivered the Base
Indenture to the Trustee to provide, among other things, for the future
issuance of the Company’s Securities from time to time in one or more series as
might be determined by the Company under the Base Indenture, in an unlimited
aggregate principal amount which may be authenticated and delivered as provided
in the Base Indenture;

 

WHEREAS, Section 301 of the Base Indenture
provides for the Company to establish Securities of any series pursuant to a
supplemental indenture, and Section 901(d) of the Base Indenture
provides for the Company and the Trustee to enter into such supplemental
indenture to establish the form or terms of Securities of such series as
permitted by Sections 201 and 301 of the Base Indenture without the consent of
any Holders;

 

WHEREAS, the Board of Directors of each Co-Issuer
has duly adopted resolutions authorizing the Co-Issuers to execute and deliver
this Supplemental Indenture;

 

WHEREAS, pursuant to the terms of the Base
Indenture, the Co-Issuers desire to provide for the establishment of a new
series of their Securities to be known as “8% Senior Secured Third Lien
Convertible Notes due 2016” (the “Notes”), the
form and substance of the Notes and the terms, provisions and conditions
thereof to be set forth as provided in the Base Indenture and this Supplemental
Indenture;

 

WHEREAS, the Form of Note, the certificate of
authentication to be borne by each Note, the Form of Conversion Notice,
the Form of Fundamental Change Repurchase Notice and the Form of
Assignment to be borne by the Notes are to be substantially in the forms
hereinafter provided for; and

 

WHEREAS, the Co-Issuers have requested that the
Trustee execute and deliver this Supplemental Indenture, and all requirements
necessary to make (i) this Supplemental Indenture a valid and legally
binding instrument in accordance with its terms and (ii) the Notes, when
executed by the Co-Issuers and authenticated and delivered by the Trustee, the
valid and legally binding obligations of the Co-Issuers, have been performed,
and the execution and delivery of this Supplemental Indenture have been duly
authorized in all respects.

 

 

NOW, THEREFORE, in consideration of the premises and
covenants and agreements contained herein, and for other good and valuable
consideration the receipt of which is hereby acknowledged, and for the benefit
of the Holders of the Notes, the Co-Issuers, Holdings and the Subsidiary
Guarantors and the Trustee and Collateral Agent hereby agree as follows:

 

ARTICLE 1

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 

Section 1.01.  Scope of Supplemental
Indenture.  The changes,
modifications and supplements to the Base Indenture effected by this Supplemental
Indenture shall be applicable only with respect to, and shall only govern the
terms of, the Notes and shall not apply to any other Securities that may be
issued under the Base Indenture unless a supplemental indenture with respect to
such other Securities specifically incorporates such changes, modifications and
supplements.  The provisions of this
Supplemental Indenture shall supersede any corresponding provisions in the Base
Indenture.

 

Section 1.02.  Definitions.  For all purposes of this Indenture,
except as otherwise expressly provided or unless the context otherwise
requires:

 

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

 

(ii)                                  all words, terms and phrases
defined in the Base Indenture (but not otherwise defined herein) shall have the
same meanings as in the Base Indenture;

 

(iii)                               all other terms used herein
that are defined in the Trust Indenture Act, either directly or by reference
therein, shall have the meanings assigned to them in the Trust Indenture Act;

 

(iv)                              all accounting terms not
otherwise defined herein shall have the meanings assigned to them in accordance
with generally accepted accounting principles, and, except as otherwise herein
expressly provided, the term “generally accepted accounting principles” with
respect to any computation required or permitted hereunder shall mean such
accounting principles as are generally accepted at the date of this instrument;
and

 

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

 

“ABL Asset Sale Offer”
has the meaning set forth in Section 1018 of the First Lien Notes
Indenture.

 

“ABL Collateral”
has the meaning assigned to the term “ABL Priority Collateral” in the
Intercreditor Agreement.

 

“ABL Secured Parties”
has the meaning assigned to the term “ABL Claimholders” in the Intercreditor
Agreement.

 

2

 

“Accreted Principal Amount”
per Note means, as of any Interest Payment Date, the Initial Principal Amount
of such Note increased by the sum of the Accretion Amounts for all prior
Interest Payment Dates.

 

“Accretion Amount”
means, as of any Interest Payment Date, the interest on the Accreted Principal
Amount, as increased as of the immediately preceding Interest Payment Date, (or
if there is no immediately preceding Interest Payment Date, interest on the
Initial Principal Amount) (which interest shall be at the rate set forth in Section 3.03)
accrued from and including such immediately preceding Interest Payment Date (or
if there is no immediately preceding Interest Payment Date, from and including
the Issue Date) to but excluding such Interest Payment Date.

 

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

 

(1)                                  Indebtedness of any other
Person existing at the time such other Person is merged with or into or became
a Restricted Subsidiary of such specified Person, including, without
limitation, Indebtedness incurred in connection with, or in contemplation of,
such other Person merging with or into or becoming a Restricted Subsidiary of
such specified Person, and

 

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

 

“Additional First Lien
Notes” means any additional first lien notes (other than the First
Lien Notes) issued after the original issuance of the First Lien Notes that are
substantially similar to the First Lien Notes and are secured by any of the
Collateral with Pari Passu Lien Priority relative to the First Lien Notes and
with respect to which the holders (or a trustee or agent on behalf of such
holders) shall have executed a supplement to the Intercreditor Agreement
agreeing to be bound thereby on the same terms applicable to the holders of
First Lien Notes.

 

“Additional Notes”
means any additional third lien notes (other than the Notes) issued after the
original issuance of the Notes that are substantially similar to the Notes and
are secured by any of the Collateral with Pari Passu Lien Priority relative to
the Notes and with respect to which the holders (or a trustee or agent on
behalf of such holders) shall have executed a supplement to the Intercreditor
Agreement agreeing to be bound thereby on the same terms applicable to the
holders of Notes.

 

“Additional Shares”
has the meaning specified in Section 10.05.

 

“Adjusted Net Assets”
has the meaning specified in Section 11.05.

 

“Adjustment Event”
has the meaning specified in Section 10.06(k).

 

“Affiliate Transaction”
has the meaning specified in Section 5.12(a).

 

“After Acquired Property”
means any property of the Co-Issuers or any Guarantor acquired after the Issue
Date that is intended to secure the Obligations under this Indenture and the
Notes pursuant to this Indenture and the Security Documents.

 

3

 

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

 

“Agent Members”
has the meaning specified in Section 3.03(d)(v).

 

“Applicable Price”
has the meaning specified in Section 10.05.

 

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

 

“Asset Sale Offer”
has the meaning specified in Section 1018 of the First Lien Notes
Indenture.

 

“Bank Collateral Agent”
means JPMorgan Chase Bank, N.A., in its capacity as collateral agent under the
Credit Agreement, and any successor thereto in such capacity.

 

“Bank Lenders”
means the lenders or holders of Indebtedness issued under the Credit Agreement.

 

“Base Indenture”
has the meaning specified in the Preamble.

 

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

 

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

 

“Borrowing Base”
means, as of any date, an amount equal to the sum of (x) 85% of the book
value of the accounts receivable and (y) 65% of the book value of the
inventory, in each case of the Company, Parent and the Guarantors on a
consolidated basis as of the end of the most recently completed fiscal quarter
preceding such date for which internal financial statements are available.

 

“Business Day” means, solely for purposes of this Indenture and notwithstanding the
definition thereof in Section 101 of the Base Indenture, each Monday,
Tuesday, Wednesday, Thursday and Friday which is not a day on which banking
institutions in The City of New York are authorized or obligated by law,
regulation or executive order to close.

 

“Capital Stock”
means:

 

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

 

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

 

4

 

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

 

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

 

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

 

“Cash Equivalents”
means:

 

(1)                                  United States dollars,

 

(2)                                  pounds sterling,

 

(3)                                  (a) euro, or any
national currency of any participating member state in the European Union or (b) in
the case of any Foreign Subsidiary that is a Restricted Subsidiary, such local
currencies held by them from time to time in the ordinary course of business,

 

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

 

(5)                                  certificates of deposit, time
deposits and eurodollar time deposits with maturities of one year or less from
the date of acquisition, bankers’ acceptances with maturities not exceeding one
year and overnight bank deposits, in each case with any commercial bank having
capital and surplus in excess of $500.0 million,

 

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

 

(7)                                  commercial paper rated at
least P-2 by Moody’s or at least A-2 by S&P and in each case maturing
within 12 months after the date of creation thereof,

 

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

 

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

 

5

 

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

 

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

 

“Co-Issuer Request”
and “Co-Issuer Order” mean,
respectively, a written request or order, as the case may be, signed in the
name of Parent or the Company, as applicable, by the Chairman, the Chief
Executive Officer, the President, the Chief Financial Officer or a Vice
President and by the Treasurer, an Assistant Treasurer, the Secretary or an
Assistant Secretary of Parent or the Company, as applicable, and delivered to
the Trustee.

 

“close of business”
means 5:00 p.m. (New York City time).

 

“Closing Sale Price”
of Common Stock on any date means the closing sale price per share (or if no
closing sale price is reported, the average of the bid and ask prices or, if
more than one in either case, the average of the average bid and the average
ask prices) on that date as reported in composite transactions for the
principal U.S. securities exchange on which Common Stock is traded.  If Common Stock is not listed for trading on a
U.S. national or regional securities exchange on the relevant date, the “Closing
Sale Price” will be the last quoted bid price for Common Stock in the
over-the-counter market on the relevant date as reported by Pink Sheets LLC or
similar organization.  If Common Stock is
not so quoted, the “Closing Sale Price” will be the average of the mid-point of
the last bid and ask prices for Common Stock on the relevant date from each of
at least three nationally recognized independent investment banking firms
selected by us for this purpose.

 

“Collateral” means
all the assets and properties subject to the Liens created by the Security
Documents.

 

“Collateral Agent”
means The Bank of New York Mellon Trust Company, N.A., in its capacity as “Collateral
Agent” under this Indenture and under the Security Documents, and any successor
thereto in such capacity.

 

“Common Equity”
of any Person means Capital Stock of such Person that is generally entitled to (i) vote
in the election of directors of such Person or (ii) if such Person is not
a corporation, vote or otherwise participate in the selection of the governing
body, partners, managers or others that will control the management or policies
of such Person.

 

“Common Stock”
means the shares of common stock, par value $0.01 per share, of Parent or such
other Capital Stock into which Parent’s common stock is reclassified or changed.

 

“Company” has
the meaning set forth in the Preamble.

 

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

 

6

 

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

 

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

 

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

 

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

 

(c)                                  interest income for such
period.

 

“Consolidated Net Income”
means, with respect to any Person for any period, the aggregate of the Net
Income, of such Person and its Restricted Subsidiaries for such period, on a
consolidated basis, and otherwise determined in accordance with GAAP; provided, however, that

 

(1) any net after-tax extraordinary,
non-recurring or unusual gains or losses (less all fees and expenses relating
thereto) or expenses (including, without limitation, relating to severance,
relocation and new product introductions) shall be excluded,

 

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

 

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

 

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

 

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

 

7

 

extent converted into cash) to the referent
Person or a Restricted Subsidiary thereof in respect of such period,

 

(6) solely for the purpose of
determining the amount available for Restricted Payments under Section 1010(a)(4)(C) of
the First Lien Notes Indenture, the Net Income for such period of any
Restricted Subsidiary (other than any Guarantor) shall be excluded if the
declaration or payment of dividends or similar distributions by that Restricted
Subsidiary of its Net Income is not at the date of determination wholly
permitted without any prior governmental approval (which has not been obtained)
or, directly or indirectly, by the operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule, or governmental
regulation applicable to such Restricted Subsidiary or its stockholders, unless
such restriction with respect to the payment of dividends or in similar
distributions has been legally waived; provided that
Consolidated Net Income of the Company shall be increased by the amount of
dividends or other distributions or other payments actually paid in cash (or to
the extent converted into cash) to the Company or a Restricted Subsidiary
thereof in respect of such period, to the extent not already included therein,

 

(7) the effects of adjustments resulting
from the application of purchase accounting in relation to any acquisition that
is consummated after the Issue Date, net of taxes, shall be excluded,

 

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

 

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

 

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

 

“Consolidated Senior
Secured Debt Ratio” means, as of any date of determination, the
ratio of (1) the sum of Lenders Debt plus the aggregate amount outstanding
under any Receivables Facility plus the aggregate principal amount of the First
Lien Notes plus the aggregate principal amount (or accreted value) of any Other
First Lien Note Obligations to (2) the Company’s EBITDA for the most
recently ended four full fiscal quarters for which internal financial
statements are available immediately preceding the date on which such event for
which such calculation is being made shall occur, in each case with such pro
forma adjustments as are appropriate and consistent with the pro forma
adjustment provisions set forth in the definition of Fixed Charge Coverage
Ratio.

 

“Contingent Obligations”
means, with respect to any Person, any obligation of such Person guaranteeing
any leases, dividends or other obligations that do not constitute Indebtedness
(“primary obligations”) of any other Person (the “primary obligor”) in any
manner, whether directly or indirectly, including, without limitation, any
obligation of such Person, whether or not contingent,

 

8

 

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

 

(2)                                  to advance or supply funds:

 

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

 

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

 

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

 

“Conversion Agent”
means the agency appointed by the Co-Issuers to which Notes may be presented
for conversion.  The Conversion Agent
appointed by the Co-Issuers shall initially be the Trustee.

 

“Conversion Date”
has the meaning specified in Section 10.04(a).

 

“Conversion Notice”
has the meaning specified in Section 10.04(a).

 

“Conversion Obligation”
has the meaning specified in Section 10.01.

 

“Conversion Price”
has the meaning specified in Section 10.01.

 

“Conversion Rights
Termination Date” has the meaning specified in Section 10.02(a).

 

“Credit Agreement”
means the Credit Agreement dated as of May 13, 2009 among the Company, the
guarantor parties thereto, the various lenders and agents party thereto and
J.P. Morgan Chase Bank, N.A. as administrative agent, together with any
amendments, supplements, modifications, extensions, renewals, restatements or
refundings thereof and any indentures or credit facilities or commercial paper
facilities with banks or other institutional lenders or investors that replace,
refund or refinance any part of the loans, notes, other credit facilities or
commitments thereunder, including any such replacement, refunding or
refinancing facility or indenture that increases the amount borrowable
thereunder, alters the maturity thereof or adds Restricted Subsidiaries as
additional borrowers or guarantors thereunder and whether by the same or any
other agent, lender or group of lenders.

 

“Credit Facilities”
means, with respect to the Company, one or more debt facilities, including,
without limitation, the Credit Agreement or commercial paper facilities with
banks or other institutional lenders or investors or indentures providing for
revolving credit loans, term loans, receivables financing, including through
the sale of receivables to such lenders or to special purpose entities formed
to borrow from such lenders against receivables, letters of credit or other
long-term indebtedness, including any guarantees, collateral documents,
instruments and agreements executed in connection therewith, and any
amendments, supplements, modifications, extensions, renewals, restatements or
refundings thereof and any indentures or credit facilities or commercial paper
facilities with banks or other institutional lenders or investors that replace,

 

9

 

refund or refinance any part of the loans,
notes, other credit facilities or commitments thereunder, including any such
replacement, refunding or refinancing facility or indenture that increases the
amount borrowable thereunder or alters the maturity thereof.

 

“Current Market Price”
of Common Stock on any day means the average of the Closing Sale Price of
Common Stock for each of the 10 consecutive Trading Days ending on the Trading
Day before the ex-dividend date with respect to the issuance or distribution
requiring such computation.

 

“Custodian”
means the Trustee, as custodian with respect to the Notes in global form, or
any successor entity thereto.

 

“Dealer Manager Agreement”
means the dealer manager agreement dated May 27, 2009 among the Co-Issuers,
the Guarantors and Citigroup Global Markets Inc. relating to the rights
offering for the Notes.

 

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

 

“Definitive Note”
means a certificated Note registered in the name of the Holder thereof,
substantially in the form of Exhibit A hereto except that such Note shall
not bear the Global Note Legend and shall not have the “Schedule of Exchanges
of Interests in the Global Note” attached thereto, issued in accordance with Section 201
of the Base Indenture.

 

“Depositary”
has the meaning set forth in the Base Indenture, and shall initially mean DTC
until a successor shall have been appointed and become such pursuant to the
applicable provisions of this Indenture, and thereafter, “Depositary” shall mean such successor.

 

“Designated Preferred Stock”
means preferred stock of the Company or any parent thereof (in each case other
than Disqualified Stock) that is issued for cash (other than to Parent, a
Guarantor or a Restricted Subsidiary) and is so designated as Designated
Preferred Stock, pursuant to an Officers’ Certificate executed by an executive
vice president and the principal financial officer of the Company or the
applicable parent thereof, as the case may be, on the issuance date thereof,
the cash proceeds of which are excluded from the calculation set forth in Section 1010(a)(4)(C) of
the First Lien Notes Indenture.

 

“Determination
Date” has the meaning specified in Section 10.06(k).

 

“Discharge of ABL
Obligations” means the date on which the Lenders Debt has been paid
in full, in cash, all commitments to extend credit thereunder shall have been
terminated and the Lenders Debt is no longer secured by the ABL Collateral; provided that the Discharge of ABL Obligations shall not be
deemed to have occurred in connection with a refinancing of such Lenders Debt
with Indebtedness secured by such ABL Collateral on a first-priority basis
under an agreement that has been designated in writing by the administrative
agent under the Credit Facility so refinancing the Credit Agreement and the
First Lien Notes Trustee to be in accordance with the terms of the
Intercreditor Agreement.

 

10

 

“Discharge of First Lien
Note Obligations” means the date on which the First Lien Note
Obligations have been paid in full and are no longer secured by the Notes
Collateral; provided that the Discharge of First
Lien Note Obligations shall not be deemed to have occurred in connection with a
refinancing of such First Lien Notes with Indebtedness secured by such Notes
Collateral on a first-priority basis under an agreement so refinancing the
First Lien Notes that has been designated in writing by the administrative
agent under the Credit Facility and the First Lien Notes Trustee to be in
accordance with the terms of the Intercreditor Agreement.

 

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

 

“Domestic Subsidiary”
means, with respect to any Person, any direct or indirect wholly-owned
Restricted Subsidiary of such Person other than a Foreign Subsidiary.

 

“DTC”
means The Depository Trust Company.

 

“EBITDA” means,
with respect to any Person for any period, the Consolidated Net Income of such
Person for such period, plus (without duplication)

 

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

 

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

 

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

 

(d) any expenses or charges related to
any Equity Offering, Permitted Investment, acquisition, disposition,
recapitalization or Indebtedness permitted to be incurred by this Indenture
(whether or not successful), including such fees, expenses or charges related
to the offering of the First Lien Notes, the Notes and the Credit Facilities,
and deducted in computing Consolidated Net Income, plus

 

(e) the amount of any restructuring
charge deducted in such period in computing Consolidated Net Income, including
any one-time costs incurred in connection with acquisitions after the Issue
Date, plus

 

11

 

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

 

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

 

(h) any net gain or loss resulting from
currency exchange risk Hedging Obligations, plus

 

(i) the amount of management,
monitoring, consulting and advisory fees and related expenses paid to KKR or
any of its Affiliates, plus

 

(j) expenses related to the
implementation of enterprise resource planning system, less

 

(k) non-cash items increasing
Consolidated Net Income of such Person for such period, excluding any items
which represent the reversal of any accrual of, or cash reserve for,
anticipated cash charges in any prior period.

 

“Effective Date”
means the date on which a Make-Whole Event occurs or becomes effective.

 

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

 

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

 

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

 

(a) public offerings with respect to the
Company’s or any direct or indirect parent’s common stock registered on Form S-8;
and

 

(b) any sales to Parent or any of its
Subsidiaries.

 

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

 

“Excess ABL Proceeds”
has the meaning specified in Section 1018 of the First Lien Notes
Indenture.

 

“Excess Proceeds”
has the meaning specified in Section 1018 of the First Lien Notes
Indenture.

 

12

 

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

 

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

 

“Expiration Date”
has the meaning specified in Section 10.06(e).

 

“Expiration Time”
has the meaning specified in Section 10.06(e).

 

“First Lien Notes”
means the 10.875% Senior Secured Notes due 2016 issued on May 29, 2009 in
an aggregate amount not to exceed $350,000,000 and all guarantees thereof.

 

“First Lien Notes
Collateral” means the portion of the Collateral as to which First Lien
Notes and related guarantees have a first priority security interest subject to
Permitted Liens.

 

“First Lien Notes
Collateral Agent” means The Bank of New York Mellon Trust Company,
N.A., in its capacity as notes collateral agent under the First Lien Notes
Indenture and under the related security documents, and any successor thereto
in such capacity.

 

“First Lien Notes Indenture”
means the indenture dated as of May 29, 2009, among the Company, as
issuer, the guarantors party thereto and The Bank of New York Mellon Trust
Company, N.A., as trustee and notes collateral agent; provided
that “First Lien Notes Indenture” refers to the First Lien Notes Indenture in
effect on the Issue Date and for the avoidance of doubt does not incorporate
any amendments to the First Lien Notes Indenture made after the Issue Date.

 

“First Lien Notes Secured
Parties” means, collectively, the First Lien Notes Trustee, the
First Lien Notes Collateral Agent, each holder of First Lien Notes, each other
holder of, or obligee in respect of any Obligations in respect of the First
Lien Notes and holders of Other First Lien Note Obligations and each Authorized
Representative (as defined in the First Lien Notes Security Agreement) thereto.

 

“First Lien Notes Security
Agreement” means the security agreement dated as of May 29,
2009 among the First Lien Notes Collateral Agent, the Company and the guarantor
parties thereto as the same may be amended or supplemented from time to time in
accordance with its terms.

 

“First Lien Notes Trustee”
means The Bank of New York Mellon Trust Company, N.A.

 

“Fixed Charge Coverage
Ratio” means, with respect to any Person for any period, the ratio
of EBITDA of such Person for such period to the Fixed Charges of such Person
for such period.  In the event that the
Company or any Restricted Subsidiary incurs, assumes, guarantees, redeems,
retires or extinguishes any Indebtedness (other than reductions in amounts
outstanding under revolving facilities unless accompanied by a corresponding
termination of commitment) or issues or redeems Disqualified Stock or preferred
stock subsequent to the commencement of the period for which the Fixed Charge
Coverage Ratio is being calculated but prior to the event for which the
calculation of the Fixed Charge Coverage Ratio is made (the “Calculation Date”),

 

13

 

then the Fixed Charge Coverage Ratio shall be
calculated giving pro forma effect to such incurrence, assumption, guarantee or
redemption of Indebtedness, or such issuance, redemption, retirement or
extinguishment of Disqualified Stock or preferred stock, as if the same had
occurred at the beginning of the applicable four-quarter period.

 

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

 

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

 

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

 

(a)                                  Consolidated Interest
Expense (excluding amounts for interest payments that are payments-in-kind or
any accretion to principal amount on the Notes of such Person for such period),

 

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

 

14

 

(c)                                  all cash dividend payments
(excluding items eliminated in consolidation) on any series of Disqualified
Stock.

 

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

 

“Fundamental
Change” shall be deemed to have occurred at such time after the
original issuance of the Notes when the following has occurred:

 

(1)                                  the Co-Issuers become aware
of (by way of a report or any other filing pursuant to Section 13(d) of
the Exchange Act, proxy, vote, written notice or otherwise) the acquisition by
any “person” or “group” (within the meaning of Section 13(d)(3) or Section 14(d)(2) of
the Exchange Act, or any successor provision), including any group acting for
the purpose of acquiring, holding or disposing of securities (within the
meaning of Rule 13d-5(b)(1) under the Exchange Act), other than the
Permitted Holders, in a single transaction or in a related series of
transactions, by way of merger, consolidation or other business combination or
purchase of beneficial ownership (within the meaning of Rule 13d-3 under
the Exchange Act, or any successor provision) of 50% or more of the total
voting power of the Voting Stock of Parent or the Company, as applicable; provided that any transaction initiated by KKR and its
Affiliates (other than Parent and its Subsidiaries) shall not be a “Fundamental
Change”;

 

(2)                                  consummation of any transaction or event (whether by means of a
liquidation, share exchange, tender offer, consolidation, recapitalization,
reclassification, merger of Parent or the Company, as applicable, or any sale,
lease or other transfer of the consolidated assets of Parent or the Company, as
applicable, and their respective subsidiaries substantially as an entirety) or
a series of related transactions or events pursuant to which Common Stock or
common stock of the Company, as applicable, is converted for, converted into or
constitutes solely the right to receive cash, securities or other property,
other than any merger or consolidation:

 

(i)                                     that does not result in a reclassification, conversion, exchange or
cancellation of Parent’s outstanding Common Stock or the Company’s outstanding
common stock, as applicable, and pursuant to which the consideration received
by holders of Common Stock or holders of common stock of the Company, as
applicable, immediately prior to the transaction entitles such holders to
exercise, directly or indirectly, 50% or more of the voting power of all shares
of capital stock entitled to vote generally in the election of directors of the
continuing or surviving corporation immediately after such transaction; or

 

(ii)                                  which is effected solely to change Parent’s or the Company’s, as
applicable, jurisdiction of incorporation and results in a reclassification,
conversion or exchange of outstanding shares of Common Stock or common stock of
the Company, as applicable, solely into shares of common stock of the surviving
entity; or

 

15

 

(3)                                  Common Stock (or other common stock into which the Notes are then
convertible) is not listed for trading on the New York Stock Exchange, the
NASDAQ Global Market or the NASDAQ Global Select Market (or their respective
successors).

 

“Fundamental Change
Co-Issuers Notice” has the meaning specified in Section 4.01(b).

 

“Fundamental Change
Repurchase Date” has the meaning specified in Section 4.01(a).

 

“Fundamental Change
Repurchase Expiration Time” has the meaning specified in Section 4.01(b)(ix).

 

“Fundamental Change
Repurchase Notice” has the meaning specified in Section 4.01(c).

 

“Fundamental Change
Repurchase Price” has the meaning specified in Section 4.01(a).

 

“Funding Guarantor”
has the meaning specified in Section 11.05.

 

“GAAP” means
generally accepted accounting principles in the United States which are in
effect on the Issue Date.  At any time
after the Issue Date, the Company may elect to apply International Financial
Reporting Standards (“IFRS”)
accounting principles in lieu of GAAP and, upon any such election, references
herein to GAAP shall thereafter be construed to mean IFRS (except as otherwise
provided in this Indenture); provided that
any such election, once made, shall be irrevocable; provided
further that any calculation or
determination in this Indenture that requires the application of GAAP for
periods that include fiscal quarters ended prior to the Company’s election to
apply IFRS shall remain as previously calculated or determined in accordance
with GAAP.  The Company shall give notice
of any such election made in accordance with this definition to the Trustee and
the Holders.

 

“Global Note”
means a Note deposited with or on behalf of and registered in the name of the
Depositary or its nominee, substantially in the form of Exhibit A hereto
and that bears the Global Note Legend and that has the “Schedule of Exchanges
of Interests in the Global Note” attached thereto, issued in accordance with Section 201
of the Base Indenture.

 

“Global Note Legend”
means the legend set forth on the Form of Note in Exhibit A hereof,
which is required to be placed on all Global Notes issued under this Supplemental
Indenture.

 

“Government Securities”
means securities that are:

 

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

 

(b)                                 obligations of a Person
controlled or supervised by and acting as an agency or instrumentality of the
United States of America the timely payment of which is unconditionally
guaranteed as a full faith and credit obligation by the United States of
America,

 

16

 

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

 

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

 

“Guarantee”
means the guarantee by any Guarantor of the Co-Issuers’ obligations under this Indenture.

 

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

 

“Hedging Obligations”
means, with respect to any Person, the obligations of such Person under:

 

(1)                                  currency exchange, interest
rate or commodity swap agreements, currency exchange, interest rate or
commodity cap agreements and currency exchange, interest rate or commodity
collar agreements and

 

(2)                                  other agreements or
arrangements designed to protect such Person against fluctuations in currency
exchange, interest rates or commodity prices.

 

“Holdings” has
the meaning specified in the Preamble.

 

“incur” has the
meaning specified in Section 5.10(a) of this Indenture.

 

“incurrence” has
the meaning specified in Section 5.10(a) of this Indenture.

 

“Indebtedness”
means, with respect to any Person,

 

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

 

(1)                                  in respect of
borrowed money;

 

17

 

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

 

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

 

(4)                                  representing
any Hedging Obligations,

 

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

 

(b)                                 to the extent not otherwise
included, any obligation by such Person to be liable for, or to pay, as
obligor, guarantor or otherwise, on the Indebtedness of another Person, other
than by endorsement of negotiable instruments for collection in the ordinary
course of business; and

 

(c)                                  to the extent not otherwise
included, Indebtedness of another Person secured by a Lien on any asset owned
by such Person, whether or not such Indebtedness is assumed by such Person;

 

provided, however, that Contingent Obligations incurred in the
ordinary course of business shall be deemed not to constitute Indebtedness; and
obligations under or in respect of Receivables Facilities shall not be deemed
to constitute Indebtedness.

 

“Indenture”
means the Base Indenture, solely to the
extent it governs the Notes, as supplemented by this Supplemental
Indenture as originally executed or as it may from time to time be supplemented
or amended by one or more indentures supplemental hereto entered into pursuant
to the applicable provisions hereof, including, for all purposes of this instrument
and any such supplemental indenture, the provisions of the Trust Indenture Act
that are deemed to be a part of and govern this Supplemental Indenture and any
such supplemental indenture, respectively.

 

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

 

“Initial Lien” has
the meaning specified in Section 5.11.

 

“Initial
Principal Amount” of any Note means the principal
amount of such Note on the Issue Date.

 

“Insolvency or Liquidation
Proceeding” means:

 

18

 

(a)                                  any voluntary or involuntary
case or proceeding under the Bankruptcy Law with respect to either Co-Issuer or
any Guarantor;

 

(b)                                 any other voluntary or
involuntary insolvency, reorganization or bankruptcy case or proceeding, or any
receivership, liquidation, reorganization or other similar case or proceeding
with respect to either Co-Issuer or any Guarantor or with respect to a material
portion of their respective assets;

 

(c)                                  any composition of
liabilities or similar arrangement relating to either Co-Issuer or any Guarantor,
whether or not under a court’s jurisdiction or supervision;

 

(d)                                 any liquidation,
dissolution, reorganization or winding up of either Co-Issuer or any Guarantor,
whether voluntary or involuntary, whether or not under a court’s jurisdiction
or supervision, and whether or not involving insolvency or bankruptcy; or

 

(e)                                  any general assignment for
the benefit of creditors or any other marshalling of assets and liabilities of either
Co-Issuer or any Guarantor.

 

“Intercreditor Agreement”
means the intercreditor agreement dated as of May 29, 2009 among the Bank
Collateral Agent, the First Lien Notes Trustee and First Lien Notes Collateral
Agent, the Company and each guarantor party thereto, as supplemented by the
Junior Secured Notes Joinder Agreement dated as of the Issue Date, and as it
may be amended from time to time in accordance with this Indenture.

 

“Interest Payment Date”
has the meaning specified in Section 3.03(c).

 

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

 

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

 

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

 

19

 

(y)                                 the portion
(proportionate to the Company’s Equity Interests in such Subsidiary) of the
fair market value of the net assets of such Subsidiary at the time of such
redesignation; and

 

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

 

“Issue Date”
means July 10, 2009.

 

“Junior Lien Priority”
means, relative to specified Indebtedness, having Lien priority that is junior
to the Notes on specified Collateral and either subject to the Intercreditor
Agreement or an intercreditor agreement on a basis that is no more favorable to
the holder of such specified indebtedness than the provisions applicable to the
Holders relative to the ABL Secured Parties and First Lien Notes Secured
Parties.

 

“KKR” means
Kohlberg Kravis Roberts & Co. L.P.

 

“Lenders Debt”
means any (i) Indebtedness outstanding from time to time under the Credit
Agreement, (ii) any Indebtedness which has a first priority security
interest in the ABL Collateral (subject to Permitted Liens) and (iii) all
cash management Obligations and Hedging Obligations incurred with any Bank
Lender (or their affiliates).

 

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

 

“Make-Whole Event”
shall be deemed to have occurred at such time after the Issue Date when the
following has occurred:

 

(1)                                  the Co-Issuers become aware
of (by way of a report or any other filing pursuant to Section 13(d) of
the Exchange Act, proxy, vote, written notice or otherwise) the acquisition by
any “person” or “group” (within the meaning of Section 13(d)(3) or Section 14(d)(2) of
the Exchange Act, or any successor provision), including any group acting for
the purpose of acquiring, holding or disposing of securities (within the
meaning of Rule 13d-5(b)(1) under the Exchange Act), other than the
Permitted Holders, in a single transaction or in a related series of
transactions, by way of merger, consolidation or other business combination or
purchase of beneficial ownership (within the meaning of Rule 13d-3 under
the Exchange Act, or any successor provision) of 50% or more of the total
voting power of the Voting Stock of Parent or the Company, as applicable; provided that any transaction initiated by KKR and its
Affiliates (other than Parent and its Subsidiaries) shall not cause a “Make-Whole
Event”;

 

(2)                                  consummation of any
transaction or event (whether by means of a liquidation, share exchange, tender
offer, consolidation, recapitalization, reclassification, merger

 

20

 

of Parent or the Company, as applicable, or
any sale, lease or other transfer of the consolidated assets of Parent or the
Company, as applicable, and their respective subsidiaries substantially as an
entirety) or a series of related transactions or events pursuant to which
Common Stock or common stock of the Company, as applicable, is converted for,
converted into or constitutes solely the right to receive cash, securities or
other property, other than any merger or consolidation which is effected solely
to change Parent’s or the Company’s, as applicable, jurisdiction of
incorporation and results in a reclassification, conversion or exchange of
outstanding shares of Common Stock or common stock of the Company, as
applicable, solely into shares of common stock of the surviving entity; or

 

(3)                                  Common Stock (or other
common stock into which the Notes are then convertible) is not listed for
trading on the New York Stock Exchange, the NASDAQ Global Market or the NASDAQ
Global Select Market (or their respective successors);

 

provided that the
definition of Make-Whole Event shall not include a merger or consolidation
under clause (1) or any event specified under clause (2), in each case, if
at least 90% of the consideration paid for Common Stock (excluding cash
payments for fractional shares and cash payments made pursuant to dissenters’
appraisal rights and cash dividends) in connection with such event consists of
shares of common stock traded on the New York Stock Exchange, the NASDAQ Global
Market or the NASDAQ Global Select Market (or their respective successors) (or
will be so traded or quoted immediately following the completion of the merger
or consolidation or such other transaction) and, as a result of such
transaction or transactions, the Notes become convertible into such shares of
common stock.

 

“Make-Whole Period”
has the meaning specified in Section 10.05.

 

“Management Group”
means at any time, the Chairman of the Board, any President, any Executive Vice
President or Vice President, any Managing Director, any Treasurer and any
Secretary or other executive officer of any of Parent or its Subsidiaries at
such time.

 

“Management Notes”
means up to $25,000,000 aggregate principal amount of 8.00% convertible senior
secured third lien notes due 2016 of the Co-Issuers, having terms and
conditions that are not less favorable to the Co-Issuers than the Notes and
with respect to which the holders (or a trustee or agent on behalf of such
holders) shall have executed a supplement to the Intercreditor Agreement
agreeing to be bound thereby on the same terms applicable to the Holders.

 

“Maturity Date”
means July 15, 2016.

 

“Moody’s” means
Moody’s Investors Service, Inc.

 

“Net Debt”
means, on a consolidated basis, (i) the Indebtedness of Parent and its
Subsidiaries (excluding the Notes and Management Notes) less (ii) Cash
Equivalents held by Parent and its Subsidiaries.

 

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

 

21

 

“Notes” has the
meaning set forth in the fourth paragraph of the recitals of this Supplemental
Indenture, and “Note” means each $25 Initial
Principal Amount of Notes.

 

“Notes Secured Parties”
means the Trustee, the Collateral Agent, each Holder, any holders of Additional
Notes and each other holder of, or obligee in respect of, any obligations in
respect of the Notes outstanding at such time, in each case, in its capacity as
such and not in any other capacity.

 

“Obligations”
means any principal, interest (including any interest accruing subsequent to
the filing of a petition in bankruptcy, reorganization or similar proceeding at
the rate provided for in the documentation with respect thereto, whether or not
such interest is an allowed claim under applicable state, federal or foreign
law), penalties, fees, indemnifications, reimbursements (including, without
limitation, reimbursement obligations with respect to letters of credit and
banker’s acceptances), damages and other liabilities, and guarantees of payment
of such principal, interest, penalties, fees, indemnifications, reimbursements,
damages and other liabilities, payable under the documentation governing any
Indebtedness.

 

“Officer” means
the Chairman of the board of directors, the President, any Executive Vice
President, Senior Vice President or Vice President, the Treasurer or the
Secretary of Parent or the Company, as applicable.

 

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

 

“open of business”
means 9:00 a.m. (New York City time).

 

“Other First Lien Note
Obligations” means any Additional First Lien Notes and any other
Indebtedness having Pari Passu Lien Priority relative to the First Lien Notes
with respect to First Lien Notes Collateral, either Pari Passu Lien Priority,
Junior Lien Priority or no Lien with respect to the ABL Collateral and
substantially identical terms as the First Lien Notes (other than issue price,
interest rate, yield and redemption terms) and any Indebtedness that refinances
or refunds (or successive refinancings and refundings) any First Lien Notes or
Additional First Lien Notes and all obligations with respect to such
Indebtedness; provided that such Indebtedness
may (a) contain terms and covenants that are, in the reasonable opinion of
the Company, less restrictive to the Company and the Restricted Subsidiaries
than the terms and covenants under the First Lien Notes; provided
that such Indebtedness has Pari Passu Lien Priority relative to the First Lien
Notes; and (b) contain terms and covenants that are more restrictive to
the Company and its Restricted Subsidiaries than the terms and covenants under
the First Lien Notes so long as prior to or substantially simultaneously with
the issuance of any such Indebtedness, the First Lien Notes and the First Lien
Indenture are amended to contain any such more restrictive terms and covenants;
provided further that such Indebtedness
shall have a Stated Maturity that is the same as or later than that of the
First Lien Notes.

 

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

 

22

 

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

 

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

 

(3)                                  Notes which have been paid
pursuant to Section 306 of the Base Indenture or in exchange for or in
lieu of which other Notes have been authenticated and delivered pursuant to
this Indenture, other than any such Notes in respect of which there shall have
been presented to the Trustee proof satisfactory to it that such Notes are held
by a bona fide purchaser in whose hands the Notes are valid obligations of the
Co-Issuers; and

 

(4)                                  Notes which have been
converted pursuant to Article 10 of this Indenture into Common Stock or
other securities or property;

 

provided, however, that in determining whether the Holders of the
requisite Initial Principal Amount of Outstanding Notes have given any request,
demand, authorization, direction, consent, notice or waiver hereunder relating
to the matters specified in TIA § 316(a)(1), Notes owned by either Co-Issuer,
any Guarantor or any other obligor upon the Notes or any Affiliate of either Co-Issuer,
any Guarantor, or such other obligor shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected
in relying upon any such request, demand, authorization, direction, notice,
consent or waiver, only Notes which a Responsible Officer of the Trustee
actually knows to be so owned shall be so disregarded.

 

“Parent” has the
meaning set forth in the Preamble.

 

“Pari Passu Lien Priority”
means, relative to specified Indebtedness, having equal Lien priority on
specified Collateral and either subject to the Intercreditor Agreement on a
substantially identical basis as the holders of such specified Indebtedness or
subject to intercreditor agreements providing holders of the Indebtedness
intended to have Pari Passu Lien Priority with substantially the same rights
and obligations that the holders of such specified Indebtedness have pursuant
to the Intercreditor Agreement as to the specified Collateral.

 

“Paying Agent”
has the meaning set forth in the Base Indenture, which shall initially be the
Trustee, and shall be the Person authorized by the Co-Issuers to pay the
principal amount of, interest on, or Fundamental Change Repurchase Price of,
any Notes on behalf of the Co-Issuers.

 

“Permitted Holders”
means KKR, its Affiliates and the Management Group.

 

“Permitted Investments”
has the meaning set forth in the First Lien Notes Indenture.

 

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

 

23

 

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

 

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

 

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

 

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

 

(5)                                  minor survey exceptions,
minor encumbrances, easements or reservations of, or rights of others for,
licenses, rights-of-way, sewers, electric lines, telegraph and telephone lines
and other similar purposes, or zoning or other restrictions as to the use of
real properties or Liens incidental, to the conduct of the business of such
Person or to the ownership of its properties which were not incurred in
connection with Indebtedness and which do not in the aggregate materially
adversely affect the value of said properties or materially impair their use in
the operation of the business of such Person;

 

(6)                                  (A) Liens securing
Senior Indebtedness permitted to be incurred pursuant to Section 5.10(a) hereof;
provided that any such Indebtedness has
Pari Passu Lien Priority relative to the Notes; provided
further that at the time of incurrence and after giving pro forma effect thereto, the Consolidated Senior Secured
Debt Ratio would be no greater than 2.75 to 1.0 and (B) Liens securing
Indebtedness pursuant to Section 5.10(b)(v) hereof; provided that Liens securing Indebtedness incurred pursuant
to Section 5.10(b)(v) are solely on acquired property or the assets
of the acquired entity;

 

(7)                                  Liens existing on the Issue
Date (other than Liens in favor of secured parties under the Credit Agreement
and First Lien Notes);

 

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

 

(9)                                  Liens on property at the
time the Company or a Restricted Subsidiary acquired the property, including
any acquisition by means of a merger or consolidation with or

 

24

 

into the Company or any Restricted
Subsidiary; provided, however,
that such Liens are not created or incurred in connection with, or in
contemplation of, such acquisition; provided, further, however, that
the Liens may not extend to any other property owned by the Company or any
Restricted Subsidiary;

 

(10)                            Liens securing Indebtedness
or other obligations of a Restricted Subsidiary owing to the Company or another
Restricted Subsidiary permitted to be incurred in accordance with Section 5.10
hereof;

 

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

 

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

 

(13)                            leases and subleases of real
property granted to others in the ordinary course of business so long as such
leases and subleases are subordinate in all respects to the Liens granted and
evidenced by the Security Documents and do not materially interfere with the
ordinary conduct of the business of the Company or any of the Restricted
Subsidiaries;

 

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

 

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

 

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

 

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

 

(18)                            Liens to secure any
refinancing, refunding, extension, renewal or replacement (or successive
refinancing, refunding, extensions, renewals or replacements) as a whole, or in
part, of any Indebtedness secured by any Lien referred to in the foregoing
clauses (6)(B), (7), (8), (9), (10), (11) and (15); provided,
however, that (x) such new Lien
shall be limited to all or part of the same property that secured the original
Lien (plus improvements on such property), (y) the Indebtedness secured by
such Lien at such time is not increased to any amount greater than the sum of (A) the
outstanding principal amount or, if greater, committed amount of the
Indebtedness described under clauses (6)(B), (7), (8), (9), (10), (11) and (15)
at the time the original Lien became a Permitted Lien under this Indenture, and
(B) an amount necessary to pay any fees and expenses, including premiums,
related to such refinancing, refunding, extension, renewal or replacement and (z) the
new Lien has no greater priority and the holders of the Indebtedness secured by
such Lien have no greater intercreditor rights relative to the Notes and
Holders thereof than the original Liens and the related Indebtedness;

 

25

 

(19)         other
Liens securing obligations incurred in the ordinary course of business which
obligations do not exceed $50.0 million at any one time outstanding; provided that if such Liens attach to Collateral, such Liens
have Pari Passu Lien Priority relative to the Notes;

 

(20)         (A) Liens
securing Indebtedness incurred pursuant to Section 5.10(b)(i) hereof
and (B) Liens securing Indebtedness incurred pursuant to Section 5.10(b)(iii)(A) hereof
and any Refinancing Indebtedness with respect thereto; provided
that with respect to clause (A) or (B), the holder of such Lien is a party
to or agrees to become party to or bound by the Intercreditor Agreement or
intercreditor agreements consistent with the Intercreditor Agreement;

 

(21)         Liens
securing the Notes and the Management Notes, Refinancing Indebtedness with
respect to the Notes and the Management Notes, the Guarantees and other
guarantees relating thereto and any obligations with respect to such Notes and
Management Notes, Refinancing Indebtedness, the Guarantees or other guarantees;

 

(22)         Liens
on the Collateral in favor of any collateral agent relating to such collateral
agent’s administrative expenses with respect to the Collateral;

 

(23)         Liens
to secure Indebtedness of any Foreign Subsidiary permitted by Section 5.10(b)(xix)
hereof covering only the assets of such Foreign Subsidiary; and

 

(24)         Liens
to secure any Third Lien Indebtedness or any Indebtedness with Junior Lien
Priority to the extent such Liens and such Indebtedness are permitted pursuant
to the First Lien Notes Indenture.

 

For purposes of determining compliance with this
definition, (A) Permitted Liens need not be incurred solely by reference
to one category of Permitted Liens described above but are permitted to be
incurred in part under any combination thereof and (B) in the event that a
Lien (or any portion thereof) meets the criteria of one or more of the
categories of Permitted Liens described above, the Company shall, in its sole
discretion, classify (but not reclassify) such item of Permitted Liens (or any
portion thereof) in any manner that complies with this definition and shall
only be required to include the amount and type of such item of Permitted Liens
in one of the above clauses and such Lien shall be treated as having been
incurred pursuant to only one of such clauses.

 

“Place of Payment”
means, for purposes of the Notes, New York, New York.

 

“Pledge Agreement”
means the third lien pledge agreement dated as of the Issue Date by and among
the Collateral Agent, the Company and the Guarantors as the same may be amended
or supplemented from time to time in accordance with its terms.

 

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

 

“Prospectus Supplement”
means the Prospectus Supplement dated May 27, 2009 relating to the rights
offering for the Notes.

 

26

 

“Publicly Traded Securities”
means shares of common stock listed on a national securities exchange, which
will be so listed when issued or exchanged in connection with an event that
would be a Fundamental Change but for the second proviso in the definition of
such term.

 

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

 

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

 

“Record Date”
means, with respect to any dividend, distribution or other transaction or event
in which the holders of Common Stock have the right to receive any cash,
securities or other property or in which Common Stock (or other applicable
security) is converted for or converted into any combination of cash,
securities or other property, the date fixed for determination of holders of
Common Stock entitled to receive such cash, securities or other property
(whether such date is fixed by Parent’s Board of Directors or by statute,
contract or otherwise).

 

“Reference Property”
has the meaning specified in Section 10.07.

 

“Refinancing Indebtedness”
has the meaning specified in Section 5.10(b)(xvi).

 

“Refunding Capital Stock”
has the meaning given to such term in the First Lien Notes Indenture.

 

“Reorganization Event”
has the meaning specified in Section 10.07.

 

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

 

“S&P” means
Standard and Poor’s Ratings Group.

 

“Schedule TO”  means a Tender Offer Statement under Section 14(d)(1) or
13(e)(1) of the Exchange Act.

 

“Security Agreement”
means the third lien security agreement dated as of the Issue Date among the
Collateral Agent, the Company and the Guarantors as the same may be amended or
supplemented from time to time in accordance with its terms.

 

27

 

“Security Documents”
means the security agreements, pledge agreements, mortgages, deeds of trust,
deeds to secure debt, collateral assignments, control agreements and related
agreements (including, without limitation, finance statements under the Uniform
Commercial Code of the relevant states), as amended, supplemented, restated,
renewed, refunded, replaced, restructured, repaid, refinanced or otherwise
modified from time to time, creating the security interests in the Collateral
as contemplated by this Indenture.

 

“Senior Indebtedness”
means:

 

(1)           all
Indebtedness of the Co-Issuers or any Guarantor outstanding under the Credit
Agreement and the First Lien Notes (including interest accruing on or after the
filing of any petition in bankruptcy or for reorganization of either Co-Issuer
or any Guarantor, regardless of whether or not a claim for post-filing interest
is allowed in such proceedings);

 

(2)           all
Hedging Obligations (and guarantees thereof) permitted to be incurred under the
terms of this Indenture;

 

(3)           any
other Indebtedness of either Co-Issuer or any Guarantor permitted to be
incurred under the terms of this Indenture, unless the instrument under which
such Indebtedness is incurred expressly provides that it is subordinated in
right of payment to the Notes or the Guarantees; and

 

(4)           all
Obligations with respect to the items listed in the preceding clauses (1), (2) and
(3).

 

“Senior Indebtedness”
of any guarantor of the Notes, including the Guarantors, has a correlative
meaning.

 

“Senior Subordinated Notes”
means the Company’s 8.25% Senior Subordinated Notes due 2014 outstanding on the
Issue Date.

 

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

 

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

 

“Spin-Off”
has the meaning specified in Section 10.06(c).

 

“Subordinated Indebtedness”
means:

 

(a)           with
respect to the Co-Issuers, any Indebtedness of the Co-Issuers which is by its
terms subordinated in right of payment to the Notes, and

 

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

 

28

 

“Subsidiary”
means, with respect to any Person,

 

(1)           any
corporation, association, or other business entity (other than a partnership,
joint venture, limited liability company or similar entity) of which more than
50% of the total voting power of shares of Capital Stock entitled (without
regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time of determination owned
or controlled, directly or indirectly, by such Person or one or more of the
other Subsidiaries of that Person or a combination thereof and

 

(2)           any
partnership, joint venture, limited liability company or similar entity of
which:

 

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

 

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

 

“Subsidiary Guarantee”
means the guarantee by any Subsidiary Guarantor of the Co-Issuers’ obligations
under this Indenture.

 

“Subsidiary Guarantor”
means all of the Company’s Domestic Subsidiaries existing on the Issue Date and
any other Subsidiary of the Company that executes a supplemental indenture to
this Indenture providing for a guarantee of payment of the Notes.

 

“Successor Company”
has the meaning specified in Section 8.01(a).

 

“Successor Person”
has the meaning specified in Section 8.02(a)(i).

 

“Supplemental Indenture”
has the meaning set forth in the Preamble.

 

“Third Lien Indebtedness”
means any Indebtedness (other than Notes, but including any Additional Notes)
that is secured by the Collateral with Pari Passu Lien Priority relative to the
Notes or is secured by some of the Collateral with Pari Passu Lien Priority
relative to the Notes and is not secured by the balance of the Collateral and
with respect to which the holders (or a trustee or agent on behalf of such
holders) shall have executed a supplement to the Intercreditor Agreement
agreeing to be bound thereby on the same terms applicable to the holders of
Notes.

 

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

 

“Trading Day”
means a day on which (i) trading in the Common Stock generally occurs on
the New York Stock Exchange or, if the Common Stock is not then listed on the
New York

 

29

 

Stock Exchange, on the principal other United
States national or regional securities exchange on which the Common Stock is
then listed or, if the Common Stock is not then listed on a United States
national or regional securities exchange, in the principal other market on
which the Common Stock is then traded, and (ii) a Closing Sale Price for
the Common Stock is available on such securities exchange or market. If the
Common Stock (or other security for which a closing sale price must be
determined) is not so listed or traded, “Trading Day” means
a “Business Day.”

 

“Trust Indenture Act”
or “TIA” means the Trust Indenture Act of
1939 as in force at the date as of which this Indenture was executed, except as
provided in Section 9.05.

 

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

 

“Unrestricted Subsidiary”
means:

 

(1)           any
Subsidiary of the Company which at the time of determination is an Unrestricted
Subsidiary (as designated by the Board of Directors of the Company pursuant to
the First Lien Notes Indenture), and

 

(2)           any
Subsidiary of an Unrestricted Subsidiary.

 

“Valuation Period”
has the meaning specified in Section 10.06(c).

 

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

 

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

 

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

 

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

 

(2)           the
sum of all such payments.

 

“Wholly Owned Restricted
Subsidiary” means any Wholly-Owned Subsidiary that is a Restricted
Subsidiary.

 

“Wholly Owned Subsidiary”
of any Person means a Subsidiary of such Person, 100% of the outstanding
Capital Stock or other ownership interests of which (other than directors’

 

30

 

qualifying shares) shall at the time be owned
by such Person or by one or more Wholly Owned Subsidiaries of such Person.

 

Section 1.03.  Incorporation by Reference of
Trust Indenture Act.  This
Indenture is subject to the mandatory provisions of the Trust Indenture Act,
which are incorporated by reference in and made a part of this Indenture.  The following Trust Indenture Act terms have
the following meanings:

 

“indenture securities”
means the Notes.

 

“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 Co-Issuers and any other obligor on the
indenture securities.

 

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

 

Section 1.04.  Rules of Construction.  Unless the context otherwise
requires:

 

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

 

(2)           “or” is not exclusive; and

 

(3)           “including” means including without
limitation.

 

ARTICLE 2

CO-ISSUERS

 

Section 2.01.  Addition
of Co-Issuer; Waiver of Parent Guarantee. 
Solely for purposes of the Notes, (i) each of Parent and the
Company shall be jointly and severally liable for all obligations under the
Notes and (ii) Parent shall cease to be a Guarantor under the Base
Indenture.

 

ARTICLE 3

THE NOTES

 

Section 3.01.  Designation, Amount and
Issuance of Notes.  The Notes
shall be designated as “8% Senior Secured Third Lien Convertible Notes due 2016”
and limited in aggregate Initial Principal Amount to $177,132,000, except as
otherwise provided for in this

 

31

 

Indenture. 
Upon the execution of this Supplemental Indenture, or from time to time
thereafter, the Notes may be executed by the Co-Issuers and delivered to the
Trustee for authentication.

 

Section 3.02.  Form of
the Notes and Transfers.  The Notes and
the Trustee’s certificate of authentication to be borne by such Notes, the
Conversion Notice, Fundamental Change Repurchase Notice and Assignment shall be
substantially in the forms set forth in Exhibits A, B, C and D, respectively,
hereto.

 

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

 

Any definitive Notes shall be printed, lithographed,
typewritten or engraved on steel-engraved borders or may be produced in any
other manner, all as determined by the Officers of the Co-Issuers executing
such Notes, as evidenced by their execution of such Notes.

 

Any of the Notes may have such letters, numbers or
other marks of identification and such notations, legends, endorsements or
changes as the officers executing the same may approve (execution thereof to be
conclusive evidence of such approval) and as are not inconsistent with the
provisions of this Indenture, or as may be required by the Custodian for the
Global Notes, the Depositary or as may be required to comply with any
applicable law or with any rule or regulation made pursuant thereto or
with any rule or regulation of any securities exchange or automated
quotation system on which the Notes may be listed, or to conform to usage, or
to indicate any special limitations or restrictions to which any particular
Notes are subject.

 

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

 

The transfer and exchange of beneficial interests in
any Global Note shall be effected through the Depositary in accordance with
this Indenture and the Applicable Procedures of the Depositary.  Except as provided in Section 3.03(d),
beneficial owners of a Global Note shall not be entitled to have certificates
registered in their names, will not receive or be entitled to receive

 

32

 

physical delivery of certificates in
definitive form and will not be considered holders of such Global Note.

 

A Holder of Definitive Notes may transfer such Notes
to a Person who takes delivery thereof in the form of a Definitive Note.  Upon receipt of a request to register such a
transfer, the Securities Registrar shall register the Definitive Notes pursuant
to the instructions from the Holder thereof. 
In case a Holder shall transfer a portion of any Definitive Note, the
Co-Issuers shall execute and the Trustee shall authenticate and deliver to or
upon the written order of the Holder of such Definitive Note, without charge to
such Holder, a new Definitive Note or Definitive Notes, of any authorized
denomination, in aggregate Initial Principal Amount equal to the
non-transferred portion of such Definitive Note.  A Holder of Definitive Notes may also
exchange such Notes for a beneficial interest in a Global Note or transfer such
Definitive Notes to a Person who takes delivery thereof in the form of a
beneficial interest in a Global Note at any time.  Upon receipt of a request for such an
exchange or transfer, the Trustee will cancel the applicable Definitive Notes
and increase or cause to be increased the aggregate Initial Principal Amount of
the Global Note.

 

Any Global Note shall represent such of the
outstanding Notes as shall be specified therein and shall provide that it shall
represent the aggregate Initial Principal Amount of outstanding Notes from time
to time endorsed thereon and that the aggregate Initial Principal Amount of
outstanding Notes represented thereby may from time to time be increased or
reduced to reflect repurchases, conversions, transfers or exchanges permitted
hereby.  Any endorsement of a Global Note
to reflect the amount of any increase or decrease in the aggregate Initial
Principal Amount of outstanding Notes represented thereby shall be made by the
Trustee or the custodian for the Global Note, at the direction of the Trustee,
in such manner and upon instructions given by the Holder in accordance with
this Indenture.  Payment of principal of,
interest on and premium, if any, on any Global Notes shall be made to the
Depositary in immediately available funds. 
The Co-Issuers have initially designated the Trustee as their Paying
Agent and Security Registrar in respect of the Notes and the Corporate Trust
Office as a place where Notes may be presented for payment or for registration
of transfer.  The Co-Issuers may, however, change the Paying Agent or Security Registrar for
the Notes without prior notice to the Holders, and either Co-Issuer may act as
Paying Agent or Security Registrar for the Notes.

 

Section 3.03.  Date and Denomination of
Notes; Payment at Maturity; Payment of Interest.

 

(a)        Date and Denomination.  The Notes shall be issuable only in
registered form without coupons and only in minimum denominations of $25 and
any integral multiple of $25 in excess thereof. 
Each Note shall be dated the date of its authentication and shall bear
interest from the date specified on the face of the form of Notes attached as Exhibit A
hereto.

 

(b)        Payment at Maturity.  The Notes shall mature on July 15, 2016,
unless earlier converted or repurchased in accordance with the provisions
hereof.  On the Maturity Date or such
earlier repurchase date, each Holder shall be entitled to receive the Accreted
Principal Amount of its Notes, together with accrued and non-capitalized
interest to, but not including, the Maturity Date or such earlier repurchase
date.  With respect to Global Notes,
principal and interest shall be paid to the Depositary in immediately available
funds.  With respect to

 

33

 

Definitive Notes, principal
and interest shall be payable at the Co-Issuers’ office or agency in New York
City, which initially will be the Corporate Trust Office.  If the Maturity Date is not a Business Day,
payment shall be made on the next succeeding Business Day, and no additional
interest shall accrue thereon.

 

(c)   Interest.  Interest on the Notes shall accrue at the
rate of 8% per annum and will compound on a semi-annual basis on January 15
and July 15, whether or not any such date is a Business Day (each, an “Interest Payment Date”), commencing on July 15,
2009.  The Co-Issuers shall not pay interest
in cash on any Interest Payment Date, but instead the Accreted
Principal Amount shall be increased as of such Interest Payment Date by the
Accretion Amount applicable to such Interest Payment Date.  However, if a Fundamental Change Repurchase
Date or an accelerated maturity date occurs (i) on a day that is not an
Interest Payment Date, the Co-Issuers shall pay the interest accrued on the
Notes from and including the immediately preceding Interest Payment Date to,
but excluding, such Fundamental Change Repurchase Date or accelerated maturity
date in cash or (ii) on a day that is an Interest Payment Date, the
Co-Issuers shall pay the Accretion Amount for such Interest Payment Date in
cash.  Interest will be computed on the
basis of a 360-day year comprised of twelve 30-day months.

 

(d)   The following provisions shall apply only to Global Notes:

 

(i)                Notwithstanding
any other provision in this Indenture, no Global Note may be exchanged in whole
or in part for Notes registered, and no transfer of a Global Note in whole or
in part may be registered, in the name of any Person other than the Depositary
or a nominee thereof unless (A) the Depositary (x) has notified the
Co-Issuers that it is unwilling or unable to continue as Depositary for such
Global Note or (y) has ceased to be a clearing agency registered under the
Exchange Act, and in each case a successor Depositary has not been appointed by
the Co-Issuers within ninety (90) calendar days, or (B) the Co-Issuers, at
their option, notify the Trustee in writing that they no longer wish to have
certain Notes represented by Global Notes. 
Any Global Note exchanged pursuant to this Section 3.03(d)(i) shall
be so exchanged in whole and not in part.

 

(ii)               In
addition, certificated Notes will be issued in exchange for beneficial
interests in a Global Note upon request by or on behalf of the Depositary in
accordance with customary procedures following the request of a beneficial
owner seeking to enforce its rights under the Notes or this Indenture,
including its rights following the occurrence of an Event of Default.

 

(iii)              Notes
issued in exchange for a Global Note or any portion thereof pursuant to clause (i) or
(ii) above shall be issued in definitive, fully registered form, without
interest coupons, shall have an aggregate Initial Principal Amount equal to
that of such Global Notes or portion thereof to be so exchanged, shall be
registered in such names and be in such authorized denominations as the
Depositary shall designate and shall bear any legends required hereunder.  Any Global Notes to be exchanged shall be
surrendered by the Depositary to the Trustee, as Registrar; provided that pending completion of the exchange of a Global
Note, the Trustee acting as custodian for the Global Notes for the Depositary
or its nominee with respect to such Global Notes, shall

 

34

 

reduce the Initial Principal Amount thereof, by an amount equal to the
portion thereof to be so exchanged, by means of an appropriate adjustment made
on the records of the Trustee.  Upon any
such surrender or adjustment, the Trustee shall authenticate and make available
for delivery the Notes issuable on such exchange to or upon the written order
of the Depositary or an authorized representative thereof.

 

(iv)             In
the event of the occurrence of any of the events specified in clause (i) above
or upon any request described in clause (ii) above, the Co-Issuers shall
promptly make available to the Trustee a sufficient supply of certificated
Notes in definitive, fully registered form, without interest coupons.

 

(v)              Neither
any members of, or participants in, the Depositary (the “Agent
Members”) nor any other Persons on whose behalf Agent Members may
act shall have any rights under this Indenture with respect to any Global Notes
registered in the name of the Depositary or any nominee thereof, and the
Depositary or such nominee, as the case may be, may be treated by the
Co-Issuers, the Trustee and any agent of the Co-Issuers or the Trustee as the
absolute owner and holder of such Global Notes for all purposes
whatsoever.  Notwithstanding the
foregoing, nothing herein shall prevent the Co-Issuers, the Trustee or any
agent of the Co-Issuers or the Trustee from giving effect to any written
certification, proxy or other authorization furnished by the Depositary or such
nominee, as the case may be, or impair, as between the Depositary, its Agent
Members and any other Person on whose behalf an Agent Member may act, the
operation of customary practices of such Persons governing the exercise of the
rights of any Holder.

 

(vi)             At
such time as all interests in a Global Note have been repurchased, converted,
cancelled or exchanged for Notes in certificated form, such Global Note shall,
upon receipt thereof, be cancelled by the Trustee in accordance with standing
procedures and instructions existing between the Depositary and the custodian
for the Global Note.  At any time prior
to such cancellation, if any interest in a Global Note is repurchased,
converted, cancelled or exchanged for Notes in certificated form, the Initial
Principal Amount of such Global Note shall, in accordance with the standing
procedures and instructions existing between the Depositary and the custodian
for the Global Note, be appropriately reduced, and an endorsement shall be made
on such Global Note, by the Trustee or the custodian for the Global Note, at
the direction of the Trustee, to reflect such reduction.

 

Section 3.04.  Outstanding Notes.  Notwithstanding anything in the
definition of “Outstanding” in Section 101 of the Base Indenture to the
contrary, if the Paying Agent segregates and holds in trust, in accordance with
this Indenture, on a Fundamental Change Repurchase Date or Maturity Date cash
sufficient to pay all principal and interest payable on that date with respect
to the Notes (or portions thereof) to be repurchased or maturing, as the case
may be, and the Paying Agent is not prohibited from paying such money to the
Holders on that date pursuant to the terms of this Indenture, then on and after
that date such Notes (or portions thereof) shall cease to be “Outstanding” for
purposes of this Indenture and interest on them shall cease to accrue.

 

35

 

ARTICLE 4

REPURCHASE OF NOTES

 

Section 4.01.  Repurchase at Option of the
Holder upon a Fundamental Change.  (a) If
a Fundamental Change occurs, each Holder shall have the right to require the
Co-Issuers to purchase some or all of that Holder’s Notes, in integral
multiples of $25 Initial Principal Amount, on a date (the “Fundamental
Change Repurchase Date”) of the Co-Issuers’ choosing that is not
less than 15 Business Days nor more than 35 Business Days after the date of the
Fundamental Change Co-Issuers Notice at a repurchase price in cash equal to
100% of the Accreted Principal Amount of the Notes to be repurchased, plus
interest in cash on the Accreted Principal Amount at the rate set forth in Section 3.03
from and including the immediately preceding Interest Payment Date to, but
excluding, the Fundamental Change Repurchase Date (the “Fundamental
Change Repurchase Price”).

 

(b)   Within 15 calendar days after the occurrence of a Fundamental
Change, the Co-Issuers are required to mail notice (the “Fundamental
Change Co-Issuers Notice”) of the following to all Holders:

 

(i)          the
events causing the Fundamental Change;

 

(ii)         the
date of the Fundamental Change;

 

(iii)        the
last date on which a Holder may exercise the repurchase right pursuant to this Article 4;

 

(iv)        the
Fundamental Change Repurchase Price;

 

(v)         the
Fundamental Change Repurchase Date;

 

(vi)        the
name and address of the Paying Agent and the Conversion Agent;

 

(vii)       that
the Notes are eligible to be converted, the applicable Conversion Price and any
adjustments to the applicable Conversion Price resulting from such Fundamental
Change transaction and expected changes in the shares deliverable upon
conversion of the Notes as a result of the occurrence of the Fundamental
Change;

 

(viii)      that
the Notes with respect to which a Fundamental Change Repurchase Notice has been
delivered by a Holder may be converted only if the Holder withdraws the
Fundamental Change Repurchase Notice in accordance with the terms of this
Supplemental Indenture;

 

(ix)         that
a Holder must exercise its repurchase right by the close of business on the
Business Day immediately preceding the Fundamental Change Repurchase Date (the
“Fundamental Change Repurchase Expiration Time”);

 

(x)          that
the Holder shall have the right to withdraw any Notes tendered prior to the
Fundamental Change Repurchase Expiration Time;

 

36

 

(xi)         the
CUSIP number of the Notes; and

 

(xii)        the
procedures that Holders must follow to require the Co-Issuers to repurchase
their Notes pursuant to this Article 4.

 

The Co-Issuers must also deliver a copy of
the Fundamental Change Co-Issuers Notice to the Paying Agent.  No failure of the Co-Issuers to give the
foregoing notices and no defect therein shall limit the repurchase rights of
Holders or affect the validity of the proceedings for the repurchase of the
Notes pursuant to this Section 4.01.

 

(c)   To exercise the repurchase right, a Holder must deliver, on or
before the close of business on the Business Day immediately preceding the
Fundamental Change Repurchase Date specified in the Fundamental Change
Co-Issuers Notice, written notice (the “Fundamental Change
Repurchase Notice”) to the Trustee of the Holder’s exercise of its
repurchase right. The Fundamental Change Repurchase Notice shall state:

 

(i)     the name of
the Holder;

 

(ii)     if
certificated Notes have been issued, the certificate numbers of the Notes to be
delivered for repurchase, or if certificated Notes have not been issued, such
Fundamental Change Repurchase Notice must comply with appropriate Depositary
procedures;

 

(iii)     the
portion of the aggregate Initial Principal Amount of the Holder’s Notes to be
repurchased, which must be $25 Initial Principal Amount or an integral multiple
thereof; and

 

(iv)     that the
Notes are to be repurchased by the Co-Issuers pursuant to the applicable
provisions of the Notes and this Indenture.

 

(d)   Holders may withdraw any Fundamental Change Repurchase Notice by
delivering a written notice of withdrawal to the Paying Agent prior to the
close of business on the Business Day before the Fundamental Change Repurchase
Date.  The withdrawal notice must state:

 

(i)    the
name of the Holder;

 

(ii)   a
statement that the Holder is withdrawing its election to require the Co-Issuers
to repurchase its Notes;

 

(iii)  the
aggregate Initial Principal Amount of the withdrawn Notes, which must be an
integral multiple of $25;

 

(iv)  if
certificated Notes have been issued, the certificate number of the withdrawn
Notes, or if certificated Notes have not been issued, such withdrawal notice
must comply with appropriate Depositary procedures; and

 

(v)   the
aggregate Initial Principal Amount, if any, that remains subject to the
Fundamental Change Repurchase Notice, which must be an integral multiple of $25.

 

37

 

Payment of the Fundamental Change Repurchase Price
for a Note for which a Fundamental Change Repurchase Notice has been delivered
and not withdrawn is conditioned upon book-entry transfer or delivery of the
Note, together with necessary endorsements, to the Paying Agent at its
corporate trust office in the Borough of Manhattan, The City of New York, or
any other office of the Paying Agent, at any time after delivery of the
Fundamental Change Repurchase Notice. 
Payment of the Fundamental Change Repurchase Price for the Note will be
made promptly following the later of the Fundamental Change Repurchase Date and
the time of book-entry transfer or delivery of the Note.  If the Paying Agent holds money sufficient to
pay, on the Fundamental Change Repurchase Date, the Fundamental Change
Repurchase Price of the Note, then, as of the Fundamental Change Repurchase
Date:

 

(A)       the Note shall cease to
be Outstanding and Accretion Amounts shall cease to accrue; and

 

(B)        all other rights of the
Holder shall terminate (other than the right to receive the Fundamental Change
Repurchase Price upon delivery of the Note, together with necessary
endorsements).

 

This shall be the case whether or not book-entry
transfer of the Notes is made and whether or not the Notes are delivered to the
Paying Agent.

 

The obligation of the Co-Issuers to make a
repurchase in the event of a Fundamental Change will be satisfied if a third
party makes an offer to repurchase Notes in the manner and at the times and
otherwise in compliance in all material respects with the requirements
applicable to a Fundamental Change repurchase made by the Co-Issuers and
purchases all Notes validly tendered and not withdrawn for which a Fundamental
Change Repurchase Notice has been delivered and not withdrawn.

 

The Paying Agent shall promptly notify the
Co-Issuers of the receipt by it of any Fundamental Change Repurchase Notice or
written notice of withdrawal thereof.

 

(e)           Notwithstanding
the foregoing, no Notes may be repurchased by the Co-Issuers at the option of
the Holders upon a Fundamental Change if there has occurred and is continuing
an Event of Default other than an Event of Default that is cured by the payment
of the Fundamental Change Repurchase Price.

 

Section 4.02. 
Notes Repurchased in Part.  Upon presentation of any Notes repurchased
only in part, the Co-Issuers shall execute and the Trustee shall authenticate
and make available for delivery to the Holder thereof, at the expense of the
Co-Issuers, a new Note or Notes, of any authorized denomination, in aggregate
Initial Principal Amount equal to the unrepurchased portion of the Notes
presented.

 

Section 4.03. 
Covenant to Comply with Securities Laws Upon
Repurchase of Notes.  The
Co-Issuers will, to the extent applicable, comply with the provisions of Rule 13e-4
and any other tender offer rules under the Exchange Act that may be
applicable at the time of the offer to repurchase the Notes, file the related
Schedule TO or any other schedule required in connection with any offer by the
Co-Issuers to repurchase the Notes and comply with all other federal and state
securities laws in connection with any offer by the Co-Issuers to repurchase
the Notes.

 

38

 

ARTICLE 5

COVENANTS

 

Section 5.01.  Replacement of Covenants in
Base Indenture; Payment of Accreted Principal Amount.  Solely for purposes of the Notes, Article Ten
of the Base Indenture shall be deleted and replaced in its entirety by this Article 5.  The Co-Issuers covenant and agree for the
benefit of the Holders to duly and punctually pay the aggregate Accreted
Principal Amount of the Notes on the Maturity Date or on such earlier date as
may be specified in accordance with the terms of the Notes and this Indenture.

 

Section 5.02.  Maintenance of Office or
Agency.  The Co-Issuers shall
maintain in the Borough of Manhattan, The City of New York, an office or agency
where Notes may be presented or surrendered for payment, where Notes may be
surrendered for registration of transfer or exchange and where notices and
demands to or upon the Co-Issuers in respect of the Notes and this Indenture
may be served.  The designated office of
the Trustee shall be such office or agency of the Co-Issuers, unless the
Co-Issuers shall designate and maintain some other office or agency for one or
more of such purposes.  The Co-Issuers
shall give prompt written notice to the Trustee of any change in the location
of any such office or agency.  If at any
time the Co-Issuers shall fail to maintain any such required office or agency
or shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee, and each Co-Issuer hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and
demands.

 

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

 

Section 5.03.  Money For Notes Payments to be
Held in Trust.  If either
Co-Issuer shall at any time act as its own Paying Agent, it shall, on or before
each due date of the principal of (or premium, if any) or interest on any of
the Notes, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay the principal of (or premium, if any) or
interest so becoming due until such sums shall be paid to such Persons or
otherwise disposed of as herein provided and shall promptly notify the Trustee
of its action or failure so to act.

 

Whenever the Co-Issuers shall have one or more
Paying Agents for the Notes, they shall, on or before each due date of the
principal of (or premium, if any) or interest on any Notes, deposit with a
Paying Agent a sum sufficient to pay the principal (and premium, if any) or
interest so becoming due, such sum to be held in trust for the benefit of the
Persons entitled to such principal, premium or interest, and (unless such
Paying Agent is the Trustee) the Co-Issuers shall promptly notify the Trustee
of such action or any failure so to act.

 

39

 

The Co-Issuers shall cause each Paying Agent (other
than the Trustee) to execute and deliver to the Trustee an instrument in which
such Paying Agent shall agree with the Trustee, subject to the provisions of
this Section, that such Paying Agent shall:

 

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

 

(b)           give
the Trustee notice of any default by the Co-Issuers (or any other obligor upon
the Notes) in the making of any payment of principal (and premium, if any) or
interest; and

 

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

 

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

 

Any money deposited with the Trustee or any Paying
Agent, or then held by the Co-Issuers, in trust for the payment of the
principal of (or premium, if any) or interest on any Note and remaining unclaimed
for two years after such principal, premium or interest has become due and
payable shall be paid to the Co-Issuers on Co-Issuer Request, or (if then held
by the Co-Issuers) shall be discharged from such trust; and the Holder of such
Note shall thereafter, as an unsecured general creditor, look only to the
Co-Issuers for payment thereof, and all liability of the Trustee or such Paying
Agent with respect to such trust money, and all liability of the Co-Issuers as
trustees thereof, shall thereupon cease; provided, however,
that the Trustee or such Paying Agent, before being required to make any such
repayment, shall at the expense of the Co-Issuers cause to be published once,
in a newspaper published in the English language, customarily published on each
Business Day and of general circulation in the Borough of Manhattan, The City
of New York, notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such
publication, any unclaimed balance of such money then remaining will be repaid
to the Co-Issuers.

 

Section 5.04.  Corporate Existence.  Subject to Article Eight,
each Co-Issuer shall do or cause to be done all things necessary to preserve
and keep in full force and effect its corporate existence and that of each
Restricted Subsidiary and its corporate rights (charter and statutory) and
franchises and that of each Restricted Subsidiary; provided,
however, that neither Co-Issuer shall be required to preserve any
such right or franchise if its Board of Directors determines that the
preservation thereof is no longer desirable in the conduct of the business of
the Co-Issuers and their Subsidiaries as a whole.

 

Section 5.05.  Payment of Taxes and Other
Claims.  Each Co-Issuer shall
pay or discharge or cause to be paid or discharged, before the same shall
become delinquent, (a) all 

 

40

 

material taxes, assessments and governmental
charges levied or imposed upon such Co-Issuer or any Subsidiary or upon the
income, profits or property of such Co-Issuer or any Subsidiary and
(b) all lawful claims for labor, materials and supplies, which, if unpaid,
might by law become a lien upon the property of such Co-Issuer or any
Subsidiary; provided, however, that the Co-Issuers
shall not be required to pay or discharge or cause to be paid or discharged any
such tax, assessment, charge or claim whose amount, applicability or validity
is being contested in good faith by appropriate proceedings and for which appropriate
reserves, if necessary (in the good faith judgment of management of each
Co-Issuer), are being maintained in accordance with GAAP.

 

Section 5.06.  Maintenance of
Properties.  The Co-Issuers
shall cause all properties owned by the Co-Issuers or any Restricted Subsidiary
or used or held for use in the conduct of its business or the business of any
Restricted Subsidiary to be maintained and kept in good condition, repair and
working order and supplied with all necessary equipment and shall cause to be
made all necessary repairs, renewals, replacements, betterments and
improvements thereof, all as in the judgment of the Co-Issuers may be necessary
so that the business carried on in connection therewith may be properly and
advantageously conducted at all times; provided, however,
that nothing in this Section shall prevent the Co-Issuers from discontinuing
the maintenance of any of such properties if such discontinuance is, in the
judgment of the Co-Issuers, desirable in the conduct of its business or the
business of any Restricted Subsidiary.

 

Section 5.07.  Insurance.

 

(a)           The Co-Issuers shall at all times keep all of their, and
their respective Subsidiaries, properties which are of an insurable nature
insured with insurers, believed by the Co-Issuers to be responsible, against
loss or damage to the extent that property of similar character is usually so
insured by corporations similarly situated and owning like properties.

 

(b)           The Co-Issuers and Guarantors (i) shall cause any
insurance policies covering any Collateral to be endorsed or otherwise amended
to include a customary lender’s loss payable endorsement, in form and substance
reasonably satisfactory to the Trustee, which endorsement shall provide that,
from and after the Issue Date, if the insurance carrier shall have received
written notice from the Trustee of the occurrence of an Event of Default, the
insurance carrier shall pay all proceeds otherwise payable to the Co-Issuers
and the Guarantors under such policies directly to the Trustee; (ii) shall
cause all such policies to provide that neither the Co-Issuers, the Trustee nor
any other party shall be a coinsurer thereunder and to contain a “Replacement
Cost Endorsement,” without any deduction for depreciation, and such other
provisions as the Trustee may reasonably require from time to time to protect
their interests; deliver original or certified copies of all such policies to
the Trustee; cause each such policy to provide that it shall not be canceled,
modified or not renewed (x) by reason of nonpayment of premium upon not
less than 10 days’ prior written notice thereof by the insurer to the Trustee
(giving the Trustee the right to cure defaults in the payment of premiums) or (y) for
any other reason upon not less than 30 days’ prior written notice thereof by
the insurer to the Trustee; and (iii) shall deliver to the Trustee, prior
to the cancellation, modification or nonrenewal of any such policy of
insurance, a draft copy of a renewal or replacement policy (or other evidence
of renewal of a policy previously delivered to the Trustee) and reasonably
promptly thereafter deliver a duplicate original copy of 

 

41

 

such policy together with evidence
satisfactory to the Trustee of payment of the premium therefor.

 

(c)           The Co-Issuers and the Guarantors shall notify the Trustee
promptly whenever any separate insurance concurrent in form or contributing in
the event of loss with that required to be maintained under this covenant is
taken out by the Co-Issuers or any Guarantor, and promptly deliver to the
Trustee a duplicate original copy of such policy or policies.

 

Section 5.08.  Statement by Officers as to
Default.  (a) The
Co-Issuers shall deliver to the Trustee within 120 days after the end of each
fiscal year, an Officers’ Certificate stating that a review of the activities
of the Co-Issuers and the Restricted Subsidiaries during the preceding quarter
or the preceding fiscal year, as the case may be, has been made under the
supervision of the signing officers with a view to determining whether it has
kept, observed, performed and fulfilled, and has caused each of the Restricted
Subsidiaries to keep, observe, perform and fulfill its obligations under this
Indenture and further stating, as to each such officer signing such
certificate, that, to the best of his or her knowledge, the Co-Issuers during
such preceding quarter or the preceding fiscal year, as the case may be, have
kept, observed, performed and fulfilled, and have caused each of the Restricted
Subsidiaries to keep, observe, perform and fulfill each and every such covenant
contained in this Indenture and no Default or Event of Default occurred during
such quarter or year, as the case may be, and at the date of such certificate
there is no Default or Event of Default which has occurred and is continuing
or, if such signers do know of such Default or Event of Default, the
certificate shall describe its status, with particularity and that, to the best
of his or her knowledge, no event has occurred and remains by reason of which
payments on the account of the principal of or interest, if any, on the Notes
is prohibited or if such event has occurred, a description of the event and
what action each is taking or proposes to take with respect thereto.  The Officers’ Certificate shall also notify
the Trustee should the Co-Issuers elect to change the manner in which they fix
their fiscal year-end.  For purposes of
this Section 5.08, such compliance shall be determined without regard to
any period of grace or requirement of notice under this Indenture.

 

(b)           (i) When any Default or Event of Default has occurred
and is continuing under this Indenture, or (ii) if the trustee for or the
holder of any other evidence of Indebtedness of either Co-Issuer or any
Restricted Subsidiary gives any notice or takes any other action with respect
to a claimed default (other than with respect to Indebtedness in the principal
amount of less than $25,000,000), the Co-Issuers shall deliver to the Trustee
by registered or certified mail or facsimile transmission an Officers’
Certificate specifying such event, notice or other action within five Business
Days of its occurrence.

 

Section 5.09.  Reports and other
Information.  Section 704
of the Base Indenture shall not apply to the Notes.  Instead, Parent shall file with the
Commission (and make available to the Trustee and Holders (without exhibits),
without cost to each Holder, within 15 days after it files with the
Commission):

 

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

 

42

 

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

 

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

 

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

 

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

 

Section 5.10.  Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock.

 

(a)           The Company shall not, and shall not permit any Restricted
Subsidiary to, directly or indirectly, create, incur, issue, assume, guarantee
or otherwise become directly or indirectly liable, contingently or otherwise,
(collectively, “incur” and collectively, an “incurrence”) with respect to any Indebtedness (including
Acquired Indebtedness) and the Company shall not issue any shares of
Disqualified Stock and shall not permit any Restricted Subsidiary to issue any
shares of Disqualified Stock or preferred stock; provided,
however, that the Company may incur Indebtedness (including Acquired
Indebtedness) or issue shares of Disqualified Stock, and any Restricted
Subsidiary may incur Indebtedness (including Acquired Indebtedness), issue
shares of Disqualified Stock and issue shares of preferred stock, if the Fixed
Charge Coverage Ratio for Parent and its Subsidiaries’ most recently ended four
full fiscal quarters for which internal financial statements are available
immediately preceding the date on which such additional Indebtedness is incurred
or such Disqualified Stock or preferred stock is issued would have been at
least 2.00 to 1.00, determined on a pro forma basis (including a pro forma
application of the net proceeds therefrom), as if the additional Indebtedness
had been incurred, or the Disqualified Stock or preferred stock had been
issued, as the case may be, and the application of proceeds therefrom had
occurred at the beginning of such four-quarter period; provided
that the amount of Indebtedness (other than Acquired Indebtedness), Disqualified
Stock and preferred stock that may be incurred pursuant to the foregoing by
Restricted Subsidiaries that are not Guarantors of the Notes shall not exceed
$35.0 million at any one time outstanding.

 

(b)           The foregoing limitations shall not apply to:

 

43

 

(i)    the
incurrence of Indebtedness of the Company or any of the Restricted Subsidiaries
under Credit Facilities in an aggregate amount at any time outstanding not to
exceed the greater of (A) $125.0 million and (B) the Borrowing Base
at the date of such incurrence;

 

(ii)   [Reserved];

 

(iii)  the
incurrence by the Company and any Guarantor of Indebtedness represented by (A) the
First Lien Notes (including any related guarantees) (other than any Additional
First Lien Notes), (B) the Notes (including any Accretion Amount and any
Guarantee) and (C) any Management Notes;

 

(iv)  Existing
Indebtedness (other than Indebtedness described in clauses (i) and (iii) above);

 

(v)   Indebtedness
(including Capitalized Lease Obligations), Disqualified Stock and preferred
stock incurred by the Company or any of its Restricted Subsidiaries, to finance
the purchase, lease or improvement of property (real or personal) or equipment
that is used or useful in a Similar Business, whether through the direct
purchase of assets or the Capital Stock of any Person owning such assets, in an
aggregate principal amount which, when aggregated with the principal amount of
all other Indebtedness, Disqualified Stock and preferred stock then outstanding
and incurred pursuant to this clause (v) and including all Refinancing
Indebtedness incurred to refund, refinance or replace any other Indebtedness,
Disqualified Stock and preferred stock incurred pursuant to this clause (v),
does not exceed the greater of (x) $60.0 million and (y) 6.0% of
Total Assets;

 

(vi)  Indebtedness
incurred by the Company or any Restricted Subsidiary constituting reimbursement
obligations with respect to letters of credit issued in the ordinary course of
business, including without limitation letters of credit in respect of workers’
compensation claims, or other Indebtedness with respect to reimbursement type
obligations regarding workers’ compensation claims; provided,
however, that upon the drawing of such letters of credit or the
incurrence of such Indebtedness, such obligations are reimbursed within 30 days
following such drawing or incurrence;

 

(vii) Indebtedness
arising from agreements of the Company or a Restricted Subsidiary providing for
indemnification, adjustment of purchase price or similar obligations, in each
case, incurred or assumed in connection with the disposition of any business,
assets or a Subsidiary, other than guarantees of Indebtedness incurred by any
Person acquiring all or any portion of such business, assets or a Subsidiary
for the purpose of financing such acquisition; provided
that the maximum assumable liability in respect of all such Indebtedness shall
at no time exceed the gross proceeds including non-cash proceeds (the fair
market value of such non-cash proceeds being measured at the time received and
without giving effect to any subsequent changes in value) actually received by
the Company and the Restricted Subsidiaries in connection with such
disposition;

 

44

 

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

 

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

 

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

 

(B)           if
a Guarantor incurs such Indebtedness to a Restricted Subsidiary that is not the
Company or a Guarantor such Indebtedness is subordinated in right of payment to
the Guarantee of such Guarantor; provided further
that any subsequent transfer of any such Indebtedness (except to the Company or
another Restricted Subsidiary) shall be deemed, in each case to be an
incurrence of such Indebtedness not permitted by this clause (ix);

 

(x)      shares
of preferred stock of a Restricted Subsidiary issued to the Company or another
Restricted Subsidiary; provided that
any subsequent issuance or transfer of any Capital Stock or any other event
which results in any such Restricted Subsidiary ceasing to be a Restricted
Subsidiary or any other subsequent transfer of any such shares of preferred
stock (except to the Company or another Restricted Subsidiary) shall be deemed
in each case to be an issuance of such shares of preferred stock not permitted
by this clause (x);

 

(xi)     Hedging
Obligations (excluding Hedging Obligations entered into for speculative
purposes) for the purpose of limiting:

 

(A)  interest
rate risk with respect to any permitted Indebtedness;

 

(B)   exchange
rate risk with respect to any currency exchange; or

 

(C)   commodity
risk;

 

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

 

(xiii)   Indebtedness of any
Guarantor in respect of such Guarantor’s Guarantee;

 

(xiv)    Indebtedness,
Disqualified Stock and preferred stock of the Company or any Restricted
Subsidiary otherwise permitted pursuant to Section 1011(b)(14) of the
First Lien Notes Indenture;

 

45

 

(xv)         (A) any
guarantee by the Company or a Guarantor of Indebtedness or other obligations of
any Restricted Subsidiary so long as the incurrence of such Indebtedness
incurred by such Restricted Subsidiary is permitted under the terms of this
Indenture or (B) any guarantee by a Restricted Subsidiary of Indebtedness
of the Company; provided that such guarantee is
incurred in accordance with Section 5.14;

 

(xvi)        the incurrence
by the Company or any Restricted Subsidiary of Indebtedness, Disqualified Stock
or preferred stock which serves to refund or refinance any Indebtedness,
Disqualified Stock or preferred stock incurred as permitted under Section 5.10(a) and
clauses (iii) and (iv) above, this clause (xvi) and clause (xvii)
below or any Indebtedness, Disqualified Stock or preferred stock issued to so
refund or refinance such Indebtedness, Disqualified Stock or preferred stock
including additional Indebtedness, Disqualified Stock or preferred stock
incurred to pay premiums, defeasance costs and fees in connection therewith
(the “Refinancing Indebtedness”) prior to its
respective maturity; provided, however,
that such Refinancing Indebtedness

 

(A)          has a Weighted
Average Life to Maturity at the time such Refinancing Indebtedness is incurred
which is not less than the remaining Weighted Average Life to Maturity of the
Notes, in the case of Refinancing Indebtedness refinancing the Senior
Subordinated Notes, or in all other cases, of the Indebtedness, Disqualified
Stock or preferred stock being refunded or refinanced,

 

(B)           to the extent
such Refinancing Indebtedness refinances (i) the Senior Subordinated Notes
and related guarantees, such Refinancing Indebtedness is pari passu or
subordinated in right of payment to the Notes and Guarantees, (ii) Indebtedness
subordinated or pari passu in right of payment to the Notes and Guarantees
(other than the Senior Subordinated Notes or related guarantees), such
Refinancing Indebtedness is subordinated or pari passu in right of payment to
the Notes and Guarantees at least to the same extent as the Indebtedness being
refinanced or refunded or (iii) Disqualified Stock or preferred stock,
such Refinancing Indebtedness must be Disqualified Stock or preferred stock,
respectively, and

 

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

 

(xvii) Indebtedness, Disqualified Stock or preferred stock of
Persons that are acquired by the Company or any Restricted Subsidiary or merged
into the Company or a Restricted Subsidiary in accordance with the terms of
this Indenture; provided that such Indebtedness,
Disqualified Stock or preferred stock is not incurred in contemplation of 

 

46

 

such
acquisition or merger; provided further
that after giving effect to such acquisition or merger, either

 

(A)               the Company
would be permitted to incur at least $1.00 of additional Indebtedness pursuant
to the Fixed Charge Coverage Ratio test set forth in Section 5.10(a) or

 

(B)               the Fixed
Charge Coverage Ratio is greater than immediately prior to such acquisition or
merger;

 

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

 

(xix)         Indebtedness of
Foreign Subsidiaries in an aggregate amount not to exceed $15.0 million at any
time outstanding; provided that Indebtedness under
this clause (xix) may be incurred under any Credit Facility;

 

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

 

(xxi)         Indebtedness of
the Company or any Restricted Subsidiary consisting of (i) the financing
of insurance premiums or (ii) take-or-pay obligations contained in supply
arrangements, in each case, in the ordinary course of business.

 

(c)           For purposes of determining compliance with this Section 5.10,
in the event that an item of Indebtedness, Disqualified Stock or Preferred
Stock meets the criteria of more than one of the categories of permitted
Indebtedness, Disqualified Stock or Preferred Stock described in clauses (i) through
(xxi) of Section 5.10(b) or is entitled to be incurred pursuant to Section 5.10(a),
the Company shall, in its sole discretion, classify or reclassify such item of
Indebtedness in any manner that complies with this Section 5.10 and such
item of Indebtedness, Disqualified Stock or Preferred Stock shall be treated as
having been incurred pursuant to only one of such clauses of Section 5.10(b) or
pursuant to Section 5.10(a); provided that
any Indebtedness, Disqualified Stock or preferred stock incurred pursuant to
clause (xiv) of Section 5.10(b) shall be deemed to have been incurred
for the purposes of the Section 5.10(a) from and after the first date
on which the Company or such Restricted Subsidiary could have incurred such
Indebtedness, Disqualified Stock or preferred stock under Section 5.10(a) without
reliance on clause (xiv) of Section 5.10(b).  Accrual of interest, the accretion of
accreted value and the payment of interest in the form of additional
Indebtedness, Disqualified Stock or Preferred Stock shall not be deemed to be
an incurrence of Indebtedness, Disqualified Stock or Preferred Stock for
purposes of this Section 5.10.

 

(d)           For purposes of determining compliance with any U.S.
dollar-denominated restriction on the incurrence of Indebtedness, the U.S.
dollar-equivalent principal amount of Indebtedness denominated in a foreign
currency shall be calculated based on the relevant currency exchange rate in
effect on the date such Indebtedness was incurred, in the case of term 

 

47

 

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

 

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

 

(f)            The Company shall not, and shall not permit any
Guarantor to directly or indirectly, incur any Indebtedness (including Acquired
Indebtedness) that is subordinated or junior in right of payment
to any Indebtedness of the Company or such Guarantor, as the case may be,
unless such Indebtedness is expressly subordinated in right of payment to the
Notes or such Guarantor’s Guarantee to the extent in the same manner as such
Indebtedness is subordinated in right of payment to other Indebtedness of the
Company or such Guarantor, as the case may be.

 

(g)           (x) Unsecured Indebtedness shall not be treated
as subordinated or junior to secured Indebtedness merely because it is
unsecured and (y) Senior Indebtedness shall not be
treated as subordinated or junior to any other Senior Indebtedness merely
because it has a junior priority with respect to the same collateral.

 

Section 5.11.  Limitation On Liens.

 

The Company shall not, and
shall not permit any of its Restricted Subsidiaries to, create, incur, assume
or otherwise cause or suffer to exist or become effective any Lien that secures
obligations under any Indebtedness or any related guarantees (the “Initial Lien”) of any kind upon any of their property or
assets, now owned or hereafter acquired, except:

 

(a)        in the case of Initial Liens
on any Collateral, any Initial Lien if (i) such Initial Lien expressly has
Junior Lien Priority on the Collateral relative to the Notes; or (ii) such
Initial Lien is a Permitted Lien; and

 

(b)        in the case of any other
asset or property, any Initial Lien if (i) the Notes are equally and
ratably secured with (or on a senior basis to, in the case such Initial Lien
secures any Subordinated Indebtedness) the obligations secured by such Initial
Lien or (ii) such Initial Lien is a Permitted Lien.

 

Any Lien created for the
benefit of the Holders pursuant to clause (b) of the preceding paragraph
shall provide by its terms that such Lien shall be automatically and
unconditionally released and discharged upon the release and discharge of the
Initial Lien, which release and discharge in the case of any sale of any such
asset or property shall not affect any Lien that the Collateral Agent may have
on the proceeds from such sale.

 

48

 

Section 5.12.  Limitations on Transactions
with Affiliates.

 

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

 

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

 

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

 

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

 

(i)            transactions
between or among the Company and/or any of the Restricted Subsidiaries;

 

(ii)           Restricted
Payments permitted by Section 1010 of the First Lien Notes Indenture and
the definition of “Permitted Investments”;

 

(iii)          the payment of
management, consulting, monitoring and advisory fees and related expenses to
KKR and its Affiliates in an aggregate amount in any fiscal year not to exceed
an amount approved by the disinterested members of the Board of Directors;

 

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

 

(v)           payments by the
Company or any Restricted Subsidiary to KKR and its Affiliates made for any
financial advisory, financing, underwriting or placement services or in respect
of other investment banking activities, including, without limitation, in
connection with acquisitions or divestitures which payments are approved by a majority
of the Board of Directors of the Company in good faith;

 

(vi)          transactions in which the Company or any Restricted
Subsidiary, as the case may be, delivers to the Trustee a letter from an
Independent Financial Advisor stating that such transaction is fair to the
Company or such Restricted Subsidiary from a financial point of view or meets
the requirements of Section 5.12(a)(i);

 

(vii)         payments or
loans (or cancellation of loans) to employees or consultants of the Company,
any of its direct or indirect parents or any Restricted Subsidiary which are
approved by a majority of the Board of Directors of the Company in good faith;

 

49

 

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

 

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

 

(x)            the issuance of any Additional Notes or any
Management Notes;

 

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

 

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

 

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

 

Section 5.13.  Limitations on Dividend and
Other Payment Restrictions Affecting Restricted Subsidiaries.

 

The Company shall not, and shall not permit any
Restricted Subsidiary to, directly or indirectly, create or otherwise cause or
suffer to exist or become effective any consensual encumbrance or consensual
restriction on the ability of any such Restricted Subsidiary to:

 

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

 

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

 

(c)        sell, lease or transfer any
of its properties or assets to the Company or any Restricted Subsidiary,

 

except (in each case) for such encumbrances
or restrictions existing under or by reason of:

 

50

 

(i)            contractual encumbrances or restrictions in effect
on the Issue Date, including, without limitation, pursuant to the First Lien
Notes and the First Lien Notes Indenture, the Credit Agreement and its related
documentation and the Senior Subordinated Notes and the indenture governing the
Senior Subordinated Notes;

 

(ii)           the Notes and any Third Lien Indebtedness and the
indentures related thereto;

 

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

 

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

 

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

 

(vi)          contracts for the sale of assets, including, without
limitation, customary restrictions with respect to a Subsidiary pursuant to an
agreement that has been entered into for the sale or disposition of all or
substantially all of the Capital Stock or assets of such Subsidiary that impose
restrictions on the assets to be sold;

 

(vii)         secured Indebtedness otherwise permitted to be
incurred pursuant to Section 5.10 and Section 5.11 that limit the
right of the debtor to dispose of the assets securing such Indebtedness;

 

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

 

(ix)           other Indebtedness, Disqualified Stock or preferred
stock of Foreign Subsidiaries permitted to be incurred subsequent to the Issue
Date pursuant to Section 5.10 that impose restrictions solely on the
Foreign Subsidiaries party thereto;

 

(x)            customary provisions in joint venture agreements and
other similar agreements relating solely to such joint venture;

 

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

 

(xii)          any encumbrances or restrictions of the type
referred to in clauses (a), (b) and (c) above imposed by any
amendments, modifications, restatements, renewals, increases, supplements,
refundings, replacements or refinancings of the contracts, instruments or
obligations referred to in clauses  (i) through
(xi) above; provided that such amendments,
modifications, restatements, renewals, increases, supplements, refundings,
replacements or refinancings are, in the good faith judgment of the Board of 

 

51

 

Directors of the Company no more restrictive with respect to such
encumbrance and other restrictions than those prior to such amendment,
modification, restatement, renewal, increase, supplement, refunding,
replacement or refinancing; and

 

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

 

Section 5.14.  Limitation on Guarantees of
Indebtedness by Restricted Subsidiaries.

 

(a)        The Company shall not permit
any Restricted Subsidiary that is a Domestic Subsidiary, other than a Guarantor
or a special-purpose Restricted Subsidiary formed in connection with
Receivables Facilities, to guarantee the payment of any Indebtedness of the
Company or any other Guarantor unless:

 

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

 

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

 

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

 

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

 

(B)            such Guarantee of the Notes constitutes a valid,
binding and enforceable obligation of such Restricted Subsidiary, except
insofar as enforcement thereof may be limited by bankruptcy, insolvency or
similar laws (including, without limitation, all laws relating to fraudulent
transfers) and except insofar as enforcement thereof is subject to general
principles of equity;

 

(b)        Notwithstanding the
foregoing and the other provisions of this Indenture, any Guarantee by a
Restricted Subsidiary of the Notes shall provide by its terms that it shall be
automatically and unconditionally released and discharged:

 

(i)            upon any sale, exchange or transfer (by merger or
otherwise) of all of the Company’s Capital Stock in such Guarantor (including
any sale, exchange or transfer following which the applicable Guarantor is no
longer a Restricted Subsidiary) or all or 

 

52

 

substantially all the assets of such Guarantor, which sale, exchange or
transfer is made in compliance with the applicable provisions of this
Indenture,

 

(ii)           upon the release or discharge of the guarantee by
such Restricted Subsidiary which resulted in the creation of such Guarantee,
except a discharge or release by or as a result of payment under such
guarantee,

 

(iii)          if such Subsidiary Guarantor is designated as an
Unrestricted Subsidiary or otherwise ceases to be a Restricted Subsidiary, in
each case in accordance with the provisions of this Indenture, upon
effectiveness of such designation or when it first ceases to be a Restricted
Subsidiary, respectively, or

 

(iv)          if the Co-Issuers’ obligations under this Indenture
are discharged in accordance with the terms of this Indenture.

 

Section 5.15.  Waiver of Certain
Covenants.  The Co-Issuers and
the Restricted Subsidiaries may omit in any particular instance to comply with
any term, provision or condition set forth in Sections 5.04 through 5.08,
inclusive, if before or after the time for such compliance the Holders of at
least a majority in Initial Principal Amount of the Outstanding Notes, by Act
of such Holders, waive such compliance in such instance with such term,
provision or condition, but no such waiver shall extend to or affect such term,
provision or condition except to the extent so expressly waived, and, until
such waiver shall become effective, the obligations of the Co-Issuers and the
duties of the Trustee in respect of any such term, provision or condition shall
remain in full force and effect.

 

Section 5.16.  Further Assurances and
After-Acquired Property.

 

(a)        The Co-Issuers and each
Guarantor shall execute any and all further documents, financing statements,
agreements and instruments, and take all further action that may be required
under applicable law, or that the Collateral Agent may reasonably request, in
order to grant, preserve, protect and perfect the validity and priority of the
security interests and Liens created or intended to be created by the Security
Documents in the Collateral.  In
addition, from time to time, the Co-Issuers shall promptly secure the
obligations of the Co-Issuers under this Indenture, the Security Documents and
the Intercreditor Agreement by pledging or creating, or causing to be pledged
or created, perfected security interests and Liens with respect to the
Collateral.  Such security interests and
Liens will be created under the Security Documents and other security
agreements, mortgages, deeds of trust and other instruments and documents that
may be required under applicable law, and the Co-Issuers shall deliver or cause
to be delivered to Trustee all such instruments and documents (including
certificates, legal opinions, title insurance policies and lien searches) as
the Trustee shall reasonably request to evidence compliance with this covenant.  The Co-Issuers agree to provide such evidence
as the Trustee shall reasonably request as to the perfection and priority
status of each such security interest and Lien.

 

(b)        In furtherance of the
foregoing, promptly following the acquisition by the Co-Issuers or any
Guarantor of any After Acquired Property, the Co-Issuers or such Guarantor
shall execute and deliver, or cause to be executed and delivered, such
mortgages, deeds of trust, security instruments, financing statements and
certificates and opinions of counsel as shall be 

 

53

 

reasonably necessary to vest
in the Collateral Agent a perfected security interest in such After Acquired
Property and to have such After Acquired Property added to the Collateral and
thereupon all provisions of this Indenture and the Security Documents relating
to the Collateral shall be deemed to relate to such After Acquired Property to
the same extent and with the same force and effect.

 

(c)        The Co-Issuers and the
Guarantors shall deliver, furnish and/or cause to be furnished all of the
obligations set forth on Schedule I  of the Dealer Manager Agreement within the
time periods set forth on such schedule.

 

Section 5.17.  Information Regarding
Collateral.

 

(a)        The Co-Issuers shall furnish
to the Collateral Agent, with respect to the Co-Issuers or any Guarantor,
prompt written notice of any change in such Person’s (i) name, (ii) jurisdiction
of organization or formation, (iii) identity or corporate structure or (iv) organizational
identification number.  The Co-Issuers
and the Guarantors shall agree not to effect or permit any change referred to
in the preceding sentence unless all filings have been made under the Uniform
Commercial Code or otherwise that are required in order for the Collateral
Agent to continue at all times following such change to have a valid, legal and
perfected security interest in all the Collateral.  The Co-Issuers also agree promptly to notify
the Collateral Agent if any material portion of the Collateral is damaged,
destroyed or condemned.

 

(b)        Each year, at the time of
delivery of the annual financial statements with respect to the preceding
fiscal year, the Co-Issuers shall deliver to the Trustee a certificate of a
financial officer setting forth the information required pursuant to the
schedules required by the Security Documents or confirming that there has been
no change in such information since the date of the prior annual financial
statements.

 

Section 5.18.  Impairment of Security
Interest.  Subject to the
rights of the holders of Permitted Liens, the Co-Issuers shall not, and shall
not permit any of the Restricted Subsidiaries to, take or knowingly or
negligently omit to take, any action which action or omission would reasonably
be expected to have the result of materially impairing the security interest
with respect to the Collateral for the benefit of Notes Secured Parties,
subject to limited exceptions.  The
Co-Issuers shall not amend, modify or supplement, or permit or consent to any
amendment, modification or supplement of, the Security Documents in any way
that would be adverse to the Holders in any material respect, except as
permitted by Article 9 or 12 hereof, the Security Documents or the
Intercreditor Agreement.

 

ARTICLE 6

DEFAULTS AND REMEDIES

 

Section 6.01.  Replacement of Remedies in
Base Indenture; Events of Default.  Solely
for purposes of the Notes, Article Five of the Base Indenture shall be
deleted and replaced in its entirety by this Article 6.  “Event of Default”,
wherever used herein, means one of the following events (whatever the reason
for such Event of Default and whether it shall be voluntary or 

 

54

 

involuntary or be effected by operation of
law or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

 

(a)        failure to pay when due the
Accreted Principal Amount of any of the Notes at the Maturity Date, upon
acceleration or exercise of a repurchase right or otherwise;

 

(b)        failure to deliver, within
the period specified in Section 10.04, shares of Common Stock and any
other securities or property, together with cash in lieu of any fractional
shares, due upon conversion of the Notes and such failure continues for a
period of five (5) calendar days;

 

(c)        failure by either Co-Issuer
or any Guarantor for 30 days after receipt of written notice given by the
Trustee or the Holders of at least 30% in Initial Principal Amount of the
Outstanding Notes issued under this Indenture to comply with any of its other
agreements in this Indenture, the Security Documents, the Intercreditor
Agreement or the Notes;

 

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

 

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

 

(ii)           the principal amount of such Indebtedness, together
with the principal amount of any other such Indebtedness in default for failure
to pay principal at stated final maturity (after giving effect to any
applicable grace periods), or the maturity of which has been so accelerated,
aggregate $25.0 million or more at any one time outstanding;

 

(e)        failure by either Co-Issuer
or any Significant Subsidiary to pay final judgments aggregating in excess of
$25.0 million, which final judgments remain unpaid, undischarged and unstayed
for a period of more than 60 days after such judgment becomes final, and in the
event such judgment is covered by insurance, an enforcement proceeding has been
commenced by any creditor upon such judgment or decree which is not promptly
stayed;

 

(f)         any of the following events
with respect to either Co-Issuer or any Significant Subsidiary:

 

(i)            such Co-Issuer or any Significant Subsidiary
pursuant to or within the meaning of any Bankruptcy Law

 

(A)            commences a voluntary case;

 

55

 

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

 

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

 

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

 

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

 

(A)                              is
for relief against such Co-Issuer or any Significant Subsidiary in an
involuntary case;

 

(B)                                appoints
a Custodian of such Co-Issuer or any Significant Subsidiary or for any
substantial part of its property; or

 

(C)                                orders
the winding up or liquidation of such Co-Issuer or any Significant Subsidiary;

 

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

 

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

 

(h)                       failure by
the Co-Issuers to give notice of a Fundamental Change or a Make-Whole Event and
such failure continues for a period of five (5) calendar days after the
final scheduled date that the Co-Issuers are required to provide such notice to
Holders hereunder; or

 

(i)                           any
security interest and Lien purported to be created by any Security Document
with respect to any Collateral, individually or in the aggregate, having a fair
market value in excess of $25.0 million shall cease to be in full force and
effect, or shall cease to give the Collateral Agent, for the benefit of the Notes
Secured Parties, the Liens, rights, powers and privileges purported to be
created and granted thereby (including a perfected third-priority security
interest in and Lien on, all of the Collateral thereunder (except as otherwise
expressly provided in this Indenture, the Security Documents and the
Intercreditor Agreement)) in favor of the Collateral Agent, for a period of 30
days after notice, or shall be asserted by the Co-Issuers, or any Guarantor to
not be, a valid, perfected, third-priority (except as otherwise expressly
provided in this Indenture, the Security Documents or the Intercreditor
Agreement) security interest in or Lien on the Collateral covered thereby;
except to the extent that any such loss of perfection or priority results from
the failure of the Trustee to make filings, renewals and continuations (or
other equivalent filings) or take other appropriate action or the failure of
the Trustee to maintain possession of certificates actually delivered to it
representing securities pledged under the Security Documents;.

 

56

 

Section 6.02.  Acceleration of Maturity;
Rescission and Annulment.  If
an Event of Default (other than an Event of Default specified in Section 6.01(f) above)
occurs and is continuing, then and in every such case the Trustee or the
Holders of at least 30% in Initial Principal Amount of the Outstanding Notes
issued under this Indenture may declare the Accreted Principal Amount of, and
any other monetary obligations on, all the Outstanding Notes to be due and
payable immediately, by a notice in writing to the Co-Issuers (and to the
Trustee if given by Holders).

 

Upon the effectiveness of such declaration,
such Accreted Principal Amount shall be due and payable immediately.  Notwithstanding the foregoing, if an Event of
Default specified in Section 6.01(f) above occurs and is continuing,
then the Accreted Principal Amount of all Outstanding Notes shall ipso facto
become and be immediately due and payable without any notice, declaration or
other act on the part of the Trustee or any Holder.

 

At any time after a declaration of
acceleration has been made and before a judgment or decree for payment of the
money due has been obtained by the Trustee as hereinafter provided in this
Article, the Holders of a majority in Initial Principal Amount of the
Outstanding Notes by written notice to the Co-Issuers and the Trustee, may
rescind and annul such declaration and its consequences if:

(a)                        the
Co-Issuers have paid or deposited with the Trustee a sum sufficient to pay:

 

(i)                           all
overdue interest on all Outstanding Notes,

 

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

 

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

 

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

 

(b)                       Events of
Default, other than the non-payment of amounts of principal of (or premium, if
any, on) or interest on Notes which have become due solely by such declaration
of acceleration, have been cured or waived as provided in Section 6.13, no
such rescission shall affect any subsequent default or impair any right
consequent thereon.

 

Notwithstanding the preceding paragraph, in
the event of any Event of Default specified in Section 6.01(d) above,
such Event of Default and all consequences thereof (excluding any resulting
payment default) shall be annulled, waived and rescinded, automatically and
without any action by the Trustee or the Holders, if within 20 days after such
Event of Default arose,

 

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

 

57

 

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

 

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

 

Upon a determination by the Company that the
Credit Agreement is no longer in effect, the Company shall promptly give to the
Trustee written notice thereof, which notice shall be countersigned by the
Agent.  Unless and until the Trustee
shall have received such written notice with respect to the Credit Agreement,
the Trustee, subject to the TIA Sections 315(a) through 315(d), shall be
entitled in all respects to assume that the Credit Agreement is in effect
(unless a Responsible Officer of the Trustee shall have actual knowledge to the
contrary).

 

Section 6.03.  Collection of Indebtedness and Suits For Enforcement by Trustee.  If an Event of Default occurs and is
continuing, the Trustee may in its discretion proceed to protect and enforce
its rights and the rights of the Holders under this Indenture and the
Guarantees by such appropriate judicial proceedings as the Trustee shall deem
necessary to protect and enforce any such rights, including seeking recourse
against any Guarantor, whether for the specific enforcement of any covenant or
agreement in this Indenture or in aid of the exercise of any power granted herein,
or to enforce any other proper remedy, including but without limitation,
seeking recourse against any Guarantor.

 

Section 6.04.  Trustee May File Proofs
of Claim.  In case of the
pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial proceeding relative to
either Co-Issuer or any other obligor including any Guarantor, upon the Notes
or the property of such Co-Issuer or of such other obligor or their creditors,
and subject to the Intercreditor Agreement, the Trustee (irrespective of
whether the principal of the Notes shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the
Trustee shall have made any demand on the Co-Issuers for the payment of overdue
principal, premium, if any, or interest) shall be entitled and empowered, by
intervention in such proceeding or otherwise,

 

(a)                        to file
and prove a claim for the whole amount of principal (and premium, if any) and
interest owing and unpaid in respect of the Notes and to file such other papers
or documents as may be necessary or advisable in order to have the claims of
the Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel) and of the
Holders allowed in such judicial proceeding;

 

(b)                       to collect
and receive any moneys or other property payable or deliverable on any such
claims and to distribute the same; and

 

(c)                        and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or similar
official in any such judicial proceeding is hereby authorized by each Holder to
make such payments to the Trustee and, in the event that the Trustee shall
consent to the making of such payments directly to the Holders, to pay the
Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 606 of the Base Indenture.

 

58

 

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

 

Section 6.05.  Trustee May Enforce
Claims Without Possession of Notes.  All
rights of action and claims under this Indenture or the Notes may be prosecuted
and enforced by the Trustee without the possession of any of the Notes or the
production thereof in any proceeding relating thereto, and any such proceeding
instituted by the Trustee shall be brought in its own name and as trustee of an
express trust, and any recovery of judgment shall, after provision for the
payment of the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, be for the ratable benefit of the Holders
in respect of which such judgment has been recovered.

 

Section 6.06.  Application of Money
Collected.  Subject to the
Intercreditor Agreement with respect to the proceeds of any ABL Collateral, any
money collected by the Trustee pursuant to this Article shall be applied
in the following order, at the date or dates fixed by the Trustee and, in case
of the distribution of such money on account of principal (or premium, if any)
or interest, upon presentation of the Notes and the notation thereon of the payment
if only partially paid and upon surrender thereof if fully paid:

 

FIRST: 
To the payment of all amounts due the Trustee under Section 606 of
the Base Indenture and the Collateral Agent under Section 12.12 of this
Supplemental Indenture;

 

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

 

THIRD: 
The balance, if any, to the Co-Issuers or any other obligor on the
Notes, as their interests may appear or as a court of competent jurisdiction
may direct in writing; provided that
all sums due and owing to the Holders and the Trustee have been paid in full as
required by this Indenture.

 

Section 6.07.  Limitation On Suits.  No Holder of any Notes shall have
any right to institute any proceeding, judicial or otherwise, with respect to
this Indenture, or for the appointment of a receiver or trustee, or for any
other remedy hereunder, unless:

 

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

 

(b)                       the Holders
of not less than 30% in Initial Principal Amount of the Outstanding Notes shall
have made written request to the Trustee to institute proceedings in respect of
such Event of Default in its own name as Trustee hereunder;

 

59

 

(c)                        such
Holder or Holders have offered to the Trustee indemnity reasonably satisfactory
to it against the costs, expenses and liabilities to be incurred in compliance
with such request;

 

(d)                       the Trustee
for 30 days after its receipt of such notice, request and offer of indemnity
has failed to institute any such proceeding; and

 

(e)                        no
direction inconsistent with such written request has been given to the Trustee
during such 30-day period by the Holders of a majority or more in Initial
Principal Amount of the Outstanding Notes;

 

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

 

Section 6.08.  Unconditional Right of Holders
To Receive Accreted Principal Amount.  Notwithstanding
any other provision in this Indenture, the Holder of any Note shall have the
right, which is absolute and unconditional, to receive payment, as provided
herein and in such Note of the Accreted Principal Amount of such Note on the
Maturity Date expressed in such Note (or, in the case of any earlier repurchase
pursuant to Article 4, on the Fundamental Change Repurchase Date) and to
institute suit for the enforcement of any such payment, and such rights shall
not be impaired without the consent of such Holder.

 

Section 6.09.  Restoration of Rights and
Remedies.  If the Trustee or
any Holder has instituted any proceeding to enforce any right or remedy under
this Indenture or the Guarantees and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Trustee or to
such Holder, then and in every such case, subject to any determination in such
proceeding, the Co-Issuers, any Guarantor, any other obligor of the Notes, the
Trustee and the Holders shall be restored severally and respectively to their
former positions hereunder and thereafter all rights and remedies of the
Trustee and the Holders shall continue as though no such proceeding had been
instituted.

 

Section 6.10.  Rights and Remedies
Cumulative.  Except as
otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Notes in the last paragraph of Section 306 of
the Base Indenture, no right or remedy herein conferred upon or reserved to the
Trustee or to the Holders is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

 

Section 6.11.  Delay Or Omission Not
Waiver.  No delay or omission
of the Trustee or of any Holder of any Note to exercise any right or remedy
accruing upon any Event of Default shall

 

60

 

impair any such right or remedy
or constitute a waiver of any such Event of Default or an acquiescence
therein.  Every right and remedy given by
this Article or by law to the Trustee or to the Holders may be exercised
from time to time, and as often as may be deemed expedient, by the Trustee or
by the Holders, as the case may be.

 

Section 6.12.  Control By Holders.  The Holders of not less than a
majority in Initial Principal Amount of the Outstanding Notes shall have the
right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred on
the Trustee, provided that:

 

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

 

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

 

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

 

Section 6.13.  Waiver of Past Defaults.  Subject to Sections 6.08 and 9.02
and the last paragraph of Section 6.02, the Holders of not less than a
majority in Initial Principal Amount of the Outstanding Notes may on behalf of
the Holders of all such Notes waive any past Default hereunder and its
consequences, except a continuing Default or Event of Default (1) in
respect of the payment of interest on, premium, if any, or the principal of any
such Note held by a non-consenting Holder, (2) in respect of the failure
to deliver shares of Common Stock upon conversion of the Notes or (3) in
respect of a covenant or provision hereof which under Article 9 cannot be
modified or amended without the consent of the Holder of each Outstanding Note
affected.

 

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

 

Section 6.14.  Waiver of Stay Or Extension
Laws.  Each of the Co-Issuers,
the Guarantors and any other obligor on the Notes covenants (to the extent that
it may lawfully do so) that it will not at any time insist upon, or plead, or
in any manner whatsoever claim or take the benefit or advantage of, any stay or
extension law wherever enacted, now or at any time hereafter in force, which
may affect the covenants or the performance of this Indenture; and each of the
Co-Issuers, the Guarantors and any other obligor on the Notes (to the extent
that it may lawfully do so) hereby expressly waives all benefit or advantage of
any such law and covenants that it will not hinder, delay or impede the
execution of any power herein granted to the Trustee, but will suffer and
permit the execution of every such power as though no such law had been
enacted.

 

61

 

ARTICLE 7

DISCHARGE

 

Section 7.01.  Replacement of Discharge
Provisions in Base Indenture; Satisfaction and Discharge of Indenture.  Solely for purposes of the Notes, Article Four
of the Base Indenture shall be deleted and replaced in its entirety by this Article 7.  This Indenture shall upon Co-Issuer Request
cease to be of further effect (except as to surviving rights of registration of
transfer or exchange of Notes expressly provided for herein or pursuant hereto)
and the Trustee, at the expense of the Co-Issuers, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture when:

 

(a)                        either

 

(i)                           all
Notes theretofore authenticated and delivered (other than (i) Notes which
have been lost, stolen or destroyed and which have been replaced, paid or
converted as provided in Section 306 of the Base Indenture and (ii) Notes
for whose payment money has theretofore been deposited in trust with the
Trustee or any Paying Agent or segregated and held in trust by the Co-Issuers
and thereafter repaid to the Co-Issuers or discharged from such trust, as
provided in Section 5.03 hereof) have been delivered to the Trustee for
cancellation or conversion; or

 

(ii)                        all such
Notes not theretofore delivered to the Trustee for cancellation or conversion
have become due and payable and either Co-Issuer or any Guarantor has
irrevocably deposited or caused to be deposited with the Trustee as trust funds
in trust solely for the benefit of the Holders, cash in U.S. dollars in such
amounts as will be sufficient to pay and discharge the entire indebtedness on
such Notes not theretofore delivered to the Trustee for cancellation for
principal and accrued interest to the date of such deposit;

 

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

 

(c)                        the
Co-Issuers have paid or caused to be paid all sums payable by it under this
Indenture;

 

(d)                       the
Co-Issuers have delivered irrevocable instructions to the Trustee under this
Indenture to apply the deposited money or shares of Common Stock toward the
payment of such Notes; and

 

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

 

62

 

Notwithstanding the satisfaction and
discharge of this Indenture, the obligations of the Co-Issuers to the Trustee
under Section 606 of the Base Indenture, the obligations of the Co-Issuers
to any Authenticating Agent under Section 611 of the Base Indenture and,
if money shall have been deposited with the Trustee pursuant to subclause (ii) of
clause (a) of this Section, the obligations of the Trustee under Section 7.02
and the last paragraph of Section 5.03 shall survive such satisfaction and
discharge.

 

Section 7.02.  Application of Trust
Money.  Subject to the
provisions of the last paragraph of Section 5.03, all money deposited with
the Trustee pursuant to Section 7.01 shall be held in trust and applied by
it, in accordance with the provisions of the Notes and this Indenture, to the
payment, either directly or through any Paying Agent (including either Co-Issuer
acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, of the principal and accrued interest for whose payment such
money has been deposited with the Trustee; but such money need not be
segregated from other funds except to the extent required by law.

 

Section 7.03.  Reinstatement.  If the Trustee or Paying Agent is
unable to apply any money in accordance with Section 7.01 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
Co-Issuer’s and any Guarantor’s obligations under this Indenture and the Notes
shall be revived and reinstated as though no deposit had occurred pursuant to Section 7.01
until such time as the Trustee or Paying Agent is permitted to apply all such
money in accordance with Section 7.01; provided that
if the Co-Issuers have made any payment of principal or accrued interest on any
Notes because of the reinstatement of their obligations, the Co-Issuers shall
be subrogated to the rights of the Holders of such Notes to receive such
payment from the money held by the Trustee or Paying Agent.

 

ARTICLE 8

MERGER, CONSOLIDATION OR SALE OF ALL OR
SUBSTANTIALLY ALL ASSETS

 

Section 8.01.  Replacement of Merger
Provisions in Base Indenture; Co-Issuers May Consolidate, Etc., Only On
Certain Terms.  Solely for
purposes of the Notes, Article Eight of the Base Indenture shall be
deleted and replaced in its entirety by this Article 8.  Neither of the Co-Issuers may consolidate or
merge with or into or wind up into (whether or not it is the surviving
corporation), or sell, assign, transfer, lease, convey or otherwise dispose of
all or substantially all of its respective properties or assets in one or more
related transactions, to any Person unless:

 

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

 

(b)                       the Successor Company, if other
than such Co-Issuer, expressly assumes all the obligations of such Co-Issuer
under this Indenture, the Notes and the Security Documents

 

63

 

pursuant to supplemental indentures or other
documents or instruments in form reasonably satisfactory to the Trustee;

 

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

 

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

 

(i)                           the
Successor Company would be permitted to incur at least $1.00 of additional
Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in Section 5.10(a) or

 

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

 

(e)                        each
Guarantor, unless it is the other party to the transactions described above, in
which case Section 8.02(a)(ii) below shall apply, shall have by
supplemental indenture confirmed that its Guarantee shall apply to such Person’s
obligations under this Indenture and the Notes;

 

(f)                          such Co-Issuer shall have delivered
to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating
that such consolidation, merger or transfer and such supplemental indentures,
if any, comply with this Indenture and, if a supplemental indenture or any
supplement to any Security Document is required in connection with such
transaction, such supplement shall comply with the applicable provisions of
this Indenture;

 

(g)                       to the
extent any assets of the Person which is merged or consolidated with or into
the Successor Company are assets of the type which would constitute Collateral
under the Security Documents, the Successor Company shall have taken such
action as may be reasonably necessary to cause such property and assets to be
made subject to the Lien of the Security Documents in the manner and to the
extent required in this Indenture or any of the Security Documents and shall
have taken all reasonably necessary action so that such Lien is perfected to
the extent required by the Security Documents; and

 

(h)                       the
Collateral owned by or transferred to the Successor Company shall:

 

(i)                           continue
to constitute Collateral under this Indenture and the Security Documents,

 

(ii)                        be subject
to a Lien in favor of the Collateral Agent for the benefit of the Trustee and
the Holders, and

 

(iii)                     not be
subject to any Lien other than Permitted Liens.

 

The Successor Company shall succeed to, and
be substituted for, such Co-Issuer under this Indenture and the Notes.  Notwithstanding clauses (c) and (d) above,

 

64

 

(a)           any Restricted Subsidiary may
consolidate with, merge into or transfer all or part of its properties and
assets to a Co-Issuer; and

 

(b)           either Co-Issuer may merge with an
Affiliate incorporated solely for the purpose of reincorporating a Guarantor or
such Co-Issuer in another State of the United States so long as the amount of
Indebtedness of such Co-Issuer and the Restricted Subsidiaries is not increased
thereby.

 

Section 8.02.  Guarantors May Consolidate,
Etc., Only On Certain Terms.  Subject
to Section 5.14(b) each Guarantor shall not, and each Co-Issuer shall not
permit any Guarantor to, consolidate or merge with or into or wind up into
(whether or not such Guarantor is the surviving corporation), or sell, assign,
transfer, lease, convey or otherwise dispose of all or substantially all of its
properties or assets in one or more related transactions to, any Person unless:

 

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

 

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

 

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

 

(iv)          the
Co-Issuers shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger or transfer
and such supplemental indentures, amendments, supplements or other instruments
relating to the Security Documents, if any, comply with this Indenture and, if
a supplemental indenture or any supplement to any Security Document is required
in connection with such transaction, such supplement shall comply with the
applicable provisions of this Indenture;

 

(v)           to
the extent any assets of the Person which is merged or consolidated with or
into the Successor Company are assets of the type which would constitute
Collateral under the Security Documents, the Successor Company shall have taken
such action as may be reasonably necessary to cause such property and assets to
be made subject to the Lien of the Security Documents in the manner and to the
extent required in this Indenture or any of the Security Documents and shall
have taken all reasonably necessary action so that such Lien is perfected to
the extent required by the Security Documents; and

 

(vi)          the
Collateral owned by or transferred to the Successor Person shall:

 

65

 

(A)     continue to constitute
Collateral under this Indenture and the Security Documents,

 

(B)      be subject to the Lien in
favor of the Collateral Agent for the benefit of the Trustee and the Holders,
and

 

(C)      not be subject to any
Lien other than Permitted Liens; or

 

(b)           the
transaction is made in compliance with Section 1018 of the First Lien
Notes Indenture.

 

Subject to Section 5.14(b) hereof, the
Successor Person shall succeed to, and be substituted for, such Guarantor under
this Indenture and such Guarantor’s Guarantee. 
Notwithstanding the foregoing, any Guarantor may merge into or transfer
all or part of its properties and assets to another Guarantor or to either Co-Issuer.

 

Section 8.03.  Successor Substituted.  Upon any consolidation or merger,
or any sale, assignment, conveyance, transfer, lease or disposition of all or
substantially all of the assets of either Co-Issuer or any Guarantor in
accordance with Sections 8.01 and 8.02 hereof, the successor Person formed by
such consolidation or into which such Co-Issuer or such Guarantor, as the case
may be, is merged or the successor Person to which such sale, assignment,
conveyance, transfer, lease or disposition is made, shall succeed to, and be
substituted for, and may exercise every right and power of, such Co-Issuer or
such Guarantor, as the case may be, under this Indenture and/or the Guarantees,
as the case may be, with the same effect as if such successor Person had been
named as such Co-Issuer or such Guarantor, as the case may be, herein and/or
the Guarantees, as the case may be.  When
a successor Person assumes all obligations of its predecessor hereunder, the
Notes or the Guarantees, as the case may be, such predecessor shall be released
from all obligations; provided that
in the event of a transfer or lease, the predecessor shall not be released from
the payment of principal and interest or other obligations on the Notes or the
Guarantees, as the case may be.

 

ARTICLE 9

AMENDMENT, SUPPLEMENT AND WAIVER

 

Section 9.01.  Replacement of Supplement
Provisions in Base Indenture; Amendments Or Supplements Without Consent of Holders.  Solely for purposes of the Notes, Article Nine
of the Base Indenture shall be deleted and replaced in its entirety by this Article 9.  Without the consent of any Holders, the Co-Issuers,
any Guarantor (with respect to a Guarantee or this Indenture to which it is a
party), when authorized by Board Resolutions of their respective Board of
Directors, and the Trustee, at any time and from time to time, may amend or
supplement this Indenture, any Guarantee, the Notes, the Security Documents or
the Intercreditor Agreement, in form satisfactory to the Trustee, for any of
the following purposes:

 

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

 

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

 

66

 

(c)           to
comply with Article 8 hereof;

 

(d)           to
evidence the succession of another Person to either Co-Issuer or to any
Guarantor and to provide the assumption of such Co-Issuer’s or such Guarantor’s
obligations to Holders;

 

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

 

(f)            to
add covenants for the benefit of the Holders or to surrender any right or power
conferred in this Indenture upon either or both Co-Issuers;

 

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

 

(h)           to
evidence and provide for the acceptance and appointment under this Indenture of
a successor Trustee pursuant to the requirements of Sections 608 and 609 of the
Base Indenture;

 

(i)            to
add a Guarantor under this Indenture or the Security Documents or to add
additional assets as Collateral or to release assets as Collateral pursuant to
a termination permitted by this Indenture;

 

(j)            to
conform the text of this Indenture, the Security Documents, the Intercreditor
Agreement, the Guarantees or the Notes to any provision of the “Description of
Notes” section of the Prospectus Supplement;

 

(k)           in
the case of the Intercreditor Agreement, in order to subject the security
interests in the Collateral in respect of any Other First Lien Note Obligations
and Lenders Debt or other Third Lien Indebtedness to the terms of the
Intercreditor Agreement, in each case to the extent the incurrence of such
Indebtedness, and the grant of all Liens on the Collateral held for the benefit
of such Indebtedness were permitted hereunder;

 

(l)            to
secure Third Lien Indebtedness permitted to be incurred pursuant to this
Indenture by Liens ranking pari passu with the Liens securing the Notes and the
Guarantees; or

 

(m)          to
provide for conversion rights of Holders upon any recapitalization, reclassification
or change of Common Stock, a consolidation, merger or combination involving a
sale, lease or other transfer to another corporation of the consolidated assets
of Parent and its Subsidiaries substantially as an entirety, or any statutory
share exchange.

 

Section 9.02.  Amendments, Supplements Or
Waivers With Consent of Holders.  With
the consent of the Holders of not less than a majority in Initial Principal
Amount of the Outstanding Notes, by Act of said Holders delivered to the Co-Issuers
and the Trustee, the Co-Issuers, any Guarantor (with respect to any Guarantee
or this Indenture to which it is a party), when authorized by Board Resolutions
of their respective Board of Directors, and the Trustee may amend or supplement
this Indenture, the Security Documents, the Intercreditor Agreement, any
Guarantee or the Notes for the purpose of adding any provisions hereto or
thereto, changing in any manner or eliminating any of the provisions or of
modifying in any manner the rights of the 

 

67

 

Holders hereunder or thereunder and any
existing Default, Event of Default or compliance with any provision of this
Indenture or the Notes may be waived with the consent of the Holders of not
less than a majority in Initial Principal Amount of the Outstanding Notes
(including, without limitation, consents obtained in connection with a purchase
of or tender offer or exchange offer for Notes); provided,
however, that no such amendment, supplement or waiver shall, without
the consent of the Holder of each Outstanding Note affected thereby:

 

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

 

(b)           reduce
the principal of or change the Maturity of any such Note (other than pursuant
to the provisions relating to repurchase upon a Fundamental Change described in
this Indenture),

 

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

 

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

 

(e)           make
any Note payable in money other than that stated in such Notes,

 

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

 

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

 

(h)           make
any change in any Security Document, any Intercreditor Agreement or the
provisions in this Indenture dealing with the Collateral or the Security
Documents or the application of trust proceeds of the Collateral that would
adversely affect the Holders in any material respect or release all or
substantially all of the Collateral from the Liens of the Security Documents
(except as permitted by the terms of this Indenture, the Security Documents and
the Intercreditor Agreement) or change or alter the priority of the security
interests in the Collateral in any manner adverse to the Holders,

 

(i)            make
any change to or modify the ranking of the Notes that would adversely affect
the Holders, or

 

(j)            except
as otherwise permitted or contemplated by provisions of this Indenture, impair
or adversely affect the conversion rights of Holders, including any adverse
change to the Conversion Price.

 

Section 9.03.  Execution of Amendments,
Supplements Or Waivers.  In
executing, or accepting the additional trusts created by, any amendment,
supplement or waiver permitted by 

 

68

 

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

 

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

 

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

 

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

 

Section 9.07.  Notice of Supplemental
Indentures.  Promptly after
the execution by the Co-Issuers, any Guarantor and the Trustee of any
supplemental indenture pursuant to the provisions of Section 9.02, the
Company shall give notice thereof to the Holders of each Outstanding Note
affected, in the manner provided for in Section 106 of the Base Indenture,
setting forth in general terms the substance of such supplemental indenture.

 

ARTICLE 10

CONVERSION OF NOTES

 

Section 10.01.  Right To Convert.  Each Note shall be convertible, at
the option of the Holder, into shares of Common Stock at any time prior to the
close of business on the Business Day immediately preceding the Maturity Date
or, if applicable, the close of business on the Conversion Rights Termination
Date.  The Notes shall be convertible
into Common Stock at an initial conversion price of $1.00 per share (the “Conversion Price”), subject to adjustments as provided in
Sections 10.05 and 10.06 of this Supplemental Indenture.  The number of shares of Common Stock
deliverable by Parent upon conversion of a Note will be equal to the Accreted
Principal Amount divided by the Conversion Price (the “Conversion
Obligation”).  If the
Conversion Date occurs within 15 calendar days of the Maturity Date, the
Accreted Principal Amount shall be increased to reflect the Accretion Amount
for the Maturity Date for the purpose of determining the Conversion
Obligation.  The Conversion Price will
not be increased in connection with an increase in the Accreted Principal
Amount.

 

69

 

Section 10.02.  Right To Terminate Conversion
Rights.  (a) On or after July 15,
2012, upon at least 30 and not more than 60 calendar days’ notice to Holders,
Parent may elect to terminate all Holders’ conversion rights in whole, but not
in part, if (i) the Closing Sale Price of Common Stock equals or exceeds
250% of the Conversion Price then in effect for at least 20 consecutive Trading
Days ending on the Trading Day immediately preceding the date of the notice of
termination of conversion rights and (ii) as of the date of the notice of
termination of conversion rights, the ratio of Parent’s Net Debt measured as of
the end of the most recently ended fiscal quarter for which internal financial
statements are available to Parent’s EBITDA for the most recently ended four
full fiscal quarters for which internal financial statements are available is
less than 3.4 to 1.0 (such date of termination of conversion rights is referred
to herein as the “Conversion Rights
Termination Date”).

 

(b)           If Parent makes the election
pursuant to Section 10.02(a), Parent shall notify the Trustee, the
Conversion Agent and the Holders at their addresses shown in the Security
Register and Parent shall, on a date not less than 30 calendar days prior to
the Conversion Rights Termination Date,
disseminate a press release through Dow Jones & Company, Inc. or
Bloomberg Business News or other similarly broad public medium that is
customary for such press releases.

 

Section 10.03.  Limitations on Beneficial Ownership.  Notwithstanding the foregoing, no Holder
(other than any Permitted Holder) shall be entitled to receive shares of Common
Stock upon conversion to the extent (but only to the extent) that such receipt
would cause such converting Holder to become, directly or indirectly, a “beneficial
owner” (within the meaning of Section 13(d) of the Exchange Act and the rules and
regulations promulgated thereunder) of 5.0% or more of the shares of Common
Stock outstanding at such time. In addition, no Holder (other than any
Permitted Holder) who holds more than 5% of the Common Stock outstanding as of
the Issue Date (any such Holder, a “5% Holder”) shall be entitled to receive
shares of Common Stock upon conversion to the extent (but only to the extent)
that such receipt would cause such converting Holder to become, directly or
indirectly, a beneficial owner of more than an additional 1% of the shares of Common
Stock outstanding at such time in respect of conversions of the Notes by such
5% Holder. Any purported delivery of shares of Common Stock upon conversion of
Notes shall be void and have no effect to the extent (but only to the extent)
that such delivery would result in the converting Holder (other than any
Permitted Holder) becoming the beneficial owner of 5.0% or more of the shares
of Common Stock outstanding at such time or, in the case of a 5% Holder, more
than an additional 1% of the shares of Common Stock outstanding at such time.
If any delivery of shares of Common Stock owed to a Holder upon conversion of
Notes is not made, in whole or in part, as a result of this limitation, Parent’s
obligation to make such delivery shall not be extinguished and it shall deliver
such shares of Common Stock as promptly as practicable after any such
converting Holder gives notice to us that such delivery would not result in
such limitation being triggered. These limitations on beneficial ownership
shall be terminated (i) upon 61 days’ notice to Parent by any Holder,
solely with respect to the Notes beneficially owned by such Holder, (ii) immediately
upon delivery by Parent of notice of its election to terminate conversion
rights as specified above, (iii) immediately upon delivery by Parent of
notice of a fundamental change as specified below or (iv) on June 15,
2016. These limitations on beneficial ownership shall not constrain in any
event Parent’s ability to exercise its right to terminate conversion rights.

 

70

 

Section 10.04.  Conversion Procedures; No
Adjustment For Interest Or Dividends; Cash Payments In Lieu of Fractional
Shares.  (a) In order to
exercise the conversion right with respect to any Notes in certificated form, a
Holder must (A) complete and manually sign an irrevocable notice of
conversion in the form entitled “Form of Conversion Notice” attached to
the reverse of such certificated Note (or a facsimile thereof) (a “Conversion Notice”), (B) deliver such Conversion Notice
and certificated Note to the Conversion Agent at the office of the Conversion
Agent, (C) to the extent any shares of Common Stock issuable upon
conversion are to be issued in a name other than the Holder’s, furnish
appropriate endorsements and transfer documents as may be required by the
Conversion Agent and (D) if required pursuant to Section 10.04(d),
pay all transfer or similar taxes or duties.

 

In order to exercise the conversion right with
respect to any interest in a Global Note, a Holder must (A) comply with
the Depositary’s procedures for converting a beneficial interest in a Global
Note, (B) to the extent any shares of Common Stock issuable upon
conversion are to be issued in a name other than the Holder’s, furnish
appropriate endorsements and transfer documents as may be required by the
Conversion Agent; and (C) if required pursuant to Section 10.04(d),
pay all transfer or similar taxes or duties.

 

The date that the Holder satisfies the foregoing
requirements is the “Conversion Date.”

 

If a Holder has submitted any Notes for repurchase
pursuant to Section 4.01, such Notes may be converted only if the Holder
submits a withdrawal notice in accordance with Section 4.01(d) prior to
the close of business on the second Trading Day immediately preceding the
Fundamental Change Repurchase Date and, if such Notes are evidenced by a Global
Note, the Holder complies with appropriate Depositary procedures.

 

(b)           In
case any Note shall be surrendered for partial conversion, the Co-Issuers shall
execute and the Trustee shall authenticate and deliver to or upon the written
order of the Holder of the Note so surrendered, without charge to such Holder,
a new Note or Notes in authorized denominations in an aggregate Initial
Principal Amount equal to the unconverted portion of the surrendered Note.

 

(c)           Upon
the conversion of an interest in a Global Note, the Trustee and the Depositary shall reduce the principal
amount of such Global Note in their records.

 

(d)           The
issuance of stock certificates on conversions of Notes shall be made without
charge to the converting Holder for any documentary, stamp or similar issue or
transfer tax in respect of the issue thereof. 
Parent shall not, however, be
required to pay any such tax which may be payable in respect of any transfer
involved in the issue and delivery of stock in any name other than that of the Holder
of any Notes converted, and Parent shall not be required to issue or deliver
any such stock certificate unless and until the Person or Persons requesting the
issue thereof shall have paid to Parent the amount of such tax or shall have
established to the satisfaction of Parent that such tax has been paid.

 

(e)           Upon
conversion, accrued and unpaid interest to the Conversion Date with respect to
the converted Notes shall be deemed to be paid in full rather than cancelled,
extinguished or forfeited.

 

71

 

(f)            Parent
shall not issue fractional shares of Common Stock upon conversion of
Notes.  If multiple Notes shall be
surrendered for conversion at one time by the same Holder, the number of full
shares of Common Stock which shall be issuable upon conversion shall be
computed on the basis of the Accreted Principal Amount of the Notes so
surrendered.  If any fractional share of
Common Stock would be issuable upon the conversion of any Notes, Parent shall
make payment therefor in cash in lieu of fractional shares of Common Stock
based on the Closing Sale Price on the Business Day immediately preceding the
Conversion Date.  Parent shall deliver
shares of Common Stock and any cash payable in lieu of fractional shares no
later than the third Business Day following the Conversion Date.

 

(g)           If
the shares of Common Stock and any cash payable in lieu of fractional shares
paid by Parent to a Holder upon conversion of the Notes pursuant to this Article 10
are not sufficient to allow either Co-Issuer to comply with the United States
federal withholding tax obligations imposed by the Internal Revenue Code of
1986, as amended, with respect to accrued and unpaid interest on the Notes
payable to the beneficial owner of such Notes, either Co-Issuer may, to the
extent required by applicable law, recoup or set-off such liability against any
amounts owed to such Holder, including, but not limited to, the shares of
Common Stock to be issued upon conversion to such beneficial owner or any
actual cash dividends or distributions subsequently made with respect to such
shares of Common Stock to such beneficial owner.

 

Section 10.05.  Decreased Conversion Price
Applicable To Securities Converted In Connection With Make-Whole Events.  If the Effective Date of a Make-Whole
Event occurs on or prior to the Maturity Date and a Holder elects to convert
its Notes at any time following the Effective Date and prior to the 35th Business
Day following the Effective Date or, if such Make-Whole Event also constitutes
a Fundamental Change, the relevant Fundamental Change Repurchase Date (such
period, the “Make-Whole Period”), the
Conversion Price applicable to each Note that is surrendered for conversion during
the Make-Whole Period shall be reduced and additional
shares of Common Stock shall be issued upon conversion (the “Additional Shares”).

 

The Co-Issuers shall mail a notice to Holders and
issue a press release (i) no later than 10 Business Days prior to the
anticipated Effective Date of a Make-Whole Event or (ii) if a termination
of trading described in clause (3) or a filing of a transaction described
in clause (1) of the definition of Make-Whole Event occurs, and the
Co-Issuers were unaware of such event, no later than 5 Business Days after the
occurrence of such event.

 

The Additional Shares to be delivered resulting from
the reduction in the Conversion Price will be determined by reference to the
table below and will be based on the Conversion Date and the Applicable Price
in connection with such transaction.

 

The “Applicable Price”
in connection with a Make-Whole Event means:

 

(a)           if the consideration (excluding cash
payment for fractional shares or pursuant to statutory appraisal rights) paid
to holders of Common Stock in connection with such transaction consists
exclusively of cash, the amount of such cash per share of Common Stock; and

 

72

 

(b)           in all other cases, the average of
the Closing Sale Prices per share of Common Stock for the five (5) consecutive
Trading Days immediately preceding the Effective Date.

 

Upon conversion of Notes during the Make-Whole Period,
Parent shall deliver, on the third Business Day following the Conversion Date,
a number of shares of Common Stock (plus cash in lieu of fractional shares)
equal to the Accreted Principal Amount of the Notes surrendered for conversion
divided by the adjusted Conversion Price.

 

The Applicable Prices set forth in the first row of
the table (i.e., the column headers), shall be adjusted as of any date on which
the Conversion Price of the Notes is adjusted.  The adjusted Applicable Prices shall equal the
Applicable Prices in effect immediately prior to such adjustment multiplied by
a fraction, the numerator of which is the Conversion Price immediately after
the adjustment giving rise to the stock price adjustment and the denominator of
which is the Conversion Price immediately prior to such adjustment. The adjusted
Conversion Prices set forth in the table are subject to further adjustment as
set forth in Section 10.06.

 

The following table sets forth the Applicable Prices
and the applicable adjusted Conversion Prices for the Notes.

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Conversion

  	
   

  	
  Applicable
  Price

  	
   

  
	
  Date

  	
   

  	
  $0.75

  	
   

  	
  $1.00

  	
   

  	
  $1.25

  	
   

  	
  $1.50

  	
   

  	
  $1.75

  	
   

  	
  $2.00

  	
   

  	
  $2.25

  	
   

  	
  $2.50

  	
   

  	
  $2.75

  	
   

  	
  $3.00

  	
   

  	
  $3.50

  	
   

  	
  $4.00

  	
   

  	
  $4.50

  	
   

  	
  $5.00

  	
   

  	
  $6.00

  	
   

  	
  $7.00

  	
   

  	
  $8.00

  	
   

  	
  $10.00

  	
   

  
	
  June 26,
  2009

  	
   

  	
  $

  	
  0.6114

  	
   

  	
  $

  	
  0.6562

  	
   

  	
  $

  	
  0.6890

  	
   

  	
  $

  	
  0.7145

  	
   

  	
  $

  	
  0.7345

  	
   

  	
  $

  	
  0.7509

  	
   

  	
  $

  	
  0.7639

  	
   

  	
  $

  	
  0.7745

  	
   

  	
  $

  	
  0.7830

  	
   

  	
  $

  	
  0.7900

  	
   

  	
  $

  	
  0.8003

  	
   

  	
  $

  	
  0.8073

  	
   

  	
  $

  	
  0.8121

  	
   

  	
  $

  	
  0.8155

  	
   

  	
  $

  	
  0.8195

  	
   

  	
  $

  	
  0.8217

  	
   

  	
  $

  	
  0.8229

  	
   

  	
  $

  	
  0.8240

  	
   

  
	
  July 15,
  2010

  	
   

  	
  $

  	
  0.6374

  	
   

  	
  $

  	
  0.6890

  	
   

  	
  $

  	
  0.7279

  	
   

  	
  $

  	
  0.7593

  	
   

  	
  $

  	
  0.7849

  	
   

  	
  $

  	
  0.8063

  	
   

  	
  $

  	
  0.8235

  	
   

  	
  $

  	
  0.8374

  	
   

  	
  $

  	
  0.8485

  	
   

  	
  $

  	
  0.8574

  	
   

  	
  $

  	
  0.8702

  	
   

  	
  $

  	
  0.8783

  	
   

  	
  $

  	
  0.8835

  	
   

  	
  $

  	
  0.8868

  	
   

  	
  $

  	
  0.8903

  	
   

  	
  $

  	
  0.8919

  	
   

  	
  $

  	
  0.8926

  	
   

  	
  $

  	
  0.8932

  	
   

  
	
  July 15,
  2011

  	
   

  	
  $

  	
  0.6609

  	
   

  	
  $

  	
  0.7175

  	
   

  	
  $

  	
  0.7610

  	
   

  	
  $

  	
  0.7986

  	
   

  	
  $

  	
  0.8321

  	
   

  	
  $

  	
  0.8612

  	
   

  	
  $

  	
  0.8856

  	
   

  	
  $

  	
  0.9053

  	
   

  	
  $

  	
  0.9208

  	
   

  	
  $

  	
  0.9325

  	
   

  	
  $

  	
  0.9477

  	
   

  	
  $

  	
  0.9557

  	
   

  	
  $

  	
  0.9598

  	
   

  	
  $

  	
  0.9618

  	
   

  	
  $

  	
  0.9633

  	
   

  	
  $

  	
  0.9637

  	
   

  	
  $

  	
  0.9638

  	
   

  	
  $

  	
  0.9638

  	
   

  
	
  July 15,
  2012

  	
   

  	
  $

  	
  0.6853

  	
   

  	
  $

  	
  0.7468

  	
   

  	
  $

  	
  0.7903

  	
   

  	
  $

  	
  0.8288

  	
   

  	
  $

  	
  0.8674

  	
   

  	
  $

  	
  0.9070

  	
   

  	
  $

  	
  0.9460

  	
   

  	
  $

  	
  0.9803

  	
   

  	
  $

  	
  0.9979

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  
	
  July 15,
  2013

  	
   

  	
  $

  	
  0.7110

  	
   

  	
  $

  	
  0.7807

  	
   

  	
  $

  	
  0.8234

  	
   

  	
  $

  	
  0.8572

  	
   

  	
  $

  	
  0.8900

  	
   

  	
  $

  	
  0.9235

  	
   

  	
  $

  	
  0.9564

  	
   

  	
  $

  	
  0.9850

  	
   

  	
  $

  	
  0.9989

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  
	
  July 15,
  2014

  	
   

  	
  $

  	
  0.7373

  	
   

  	
  $

  	
  0.8236

  	
   

  	
  $

  	
  0.8680

  	
   

  	
  $

  	
  0.8965

  	
   

  	
  $

  	
  0.9211

  	
   

  	
  $

  	
  0.9457

  	
   

  	
  $

  	
  0.9696

  	
   

  	
  $

  	
  0.9901

  	
   

  	
  $

  	
  0.9996

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  
	
  July 15,
  2015

  	
   

  	
  $

  	
  0.7500

  	
   

  	
  $

  	
  0.8812

  	
   

  	
  $

  	
  0.9332

  	
   

  	
  $

  	
  0.9547

  	
   

  	
  $

  	
  0.9665

  	
   

  	
  $

  	
  0.9766

  	
   

  	
  $

  	
  0.9866

  	
   

  	
  $

  	
  0.9955

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  
	
  July 15,
  2016

  	
   

  	
  $

  	
  0.7500

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  	
  $

  	
  1.0000

  	
   

  

 

The exact Applicable Price and Conversion Dates may
not be set forth in the table above, in which case:

 

1.                                       if the Applicable
Price is between two Applicable Price amounts in the table or the Conversion Date
is between two dates in the table, the adjusted Conversion Price will be determined
by straight-line interpolation between the adjusted Conversion Prices set forth
for the higher and lower stock price amounts and the two dates, as applicable,
based on a 365 day year;

 

2.                                       if the Applicable
Price is in excess of $10.00 per share (subject to adjustment), there will be
no decrease in the Conversion Price; and

 

3.                                       if the Applicable
Price is less than $0.75 per share (subject to adjustment), there will be no
decrease in the Conversion Price.

 

73

 

Notwithstanding the foregoing, in no event will the Conversion
Price be less than $0.6114 per share, subject to adjustment in the same manner
as any adjustment to the Conversion Price as set forth in Section 10.06.

 

Section 10.06.  Adjustment of Conversion Price.  The Conversion Price shall be adjusted
as described below if any of the following events occurs:

 

(a)           the
issuance of Common Stock as a dividend or distribution to all holders of Common
Stock, or a subdivision or combination of Common Stock, in which event the
Conversion Price shall be adjusted based on the following formula:

 

	
  CP1

  	
  =

  	
  CP0

  	
  x

  	
  OS0

  	
   

  
	
  OS1

  	
   

  

 

where,

 

CP0         =              the Conversion Price in effect at the close of business
on the Record Date

 

CP1         =              the Conversion Price in effect immediately after the Record
Date

 

OS0         =              the number of shares of Common Stock outstanding
immediately prior to the close of business on the Record Date

 

OS1         =              the number of shares of Common Stock that would be
outstanding immediately after, and solely as a result of, such event.

 

Such adjustment shall become effective immediately
after (x) the Record Date for such dividend or distribution or (y) the
effective date of such subdivision or combination.  If any dividend or distribution of the type
described in this Section 10.06(a) is declared but not so paid or made,
the Conversion Price shall be readjusted to the Conversion Price that would
then be in effect if such dividend or distribution had not been declared.

 

(b)           the
issuance to all holders of Common Stock of certain rights or warrants entitling
them for a period expiring 45 days or less from the date of issuance of such
rights or warrants to purchase shares of Common Stock at less than the average Closing
Sale Price of Common Stock for the ten consecutive Trading Days ending on the Trading
Day immediately preceding the time of announcement of such issuance; in which
event the Conversion Price will be adjusted based on the following formula:

 

	
  CP1

  	
  =

  	
  CP0

  	
  x

  	
  OS0 + Y

  	
   

  
	
  OS0 + X

  	
   

  

 

where,

 

CP0         =              the Conversion Price in effect at the close of business
on the Record Date

 

CP1         =              the Conversion Price in effect immediately after the Record
Date

 

74

 

OS0         =              the number of shares of Common Stock outstanding at the
close of business on the Record Date

 

X             =              the total number of shares of
Common Stock issuable pursuant to such rights or warrants

 

Y             =              the number of shares of Common
Stock equal to the aggregate price payable to exercise such rights or warrants divided
by the average of the Closing Sale Prices of Common Stock for the ten
consecutive Trading Days prior to the Business Day immediately preceding the
announcement of the issuance of such rights or warrants.

 

Such adjustment shall become effective immediately
after the Record Date for such distribution. 
In the event that such rights or warrants described in this Section 10.06(b)
are not so distributed, the Conversion Price shall be readjusted to the
Conversion Price that would then be in effect if the Record Date for such
distribution had not occurred.  To the
extent that such rights or warrants are not exercised prior to their expiration
or shares of the Common Stock are otherwise not delivered pursuant to such
rights or warrants upon the exercise of such rights or warrants, the Conversion
Price shall be readjusted to the Conversion Price that would then be in effect
had the adjustments made upon the issuance of such rights or warrants been made
on the basis of the delivery of only the number of shares of the Common Stock
actually delivered. In determining the aggregate price payable for such shares
of the Common Stock, there shall be taken into account any consideration
received for such rights or warrants and the value of such consideration if
other than cash to be determined by the Parent’s Board of Directors.

 

(c)           the
dividend or other distribution to all holders of Common Stock of shares of
capital stock (other than Common Stock) or evidences of indebtedness or assets
(excluding any dividend, distribution or issuance as to which an adjustment was
effected by clauses (a) or (b) above or (d) below) in which event the Conversion
Price will be adjusted based on the following formula:

 

	
  CP1

  	
  =

  	
  CP0

  	
  x

  	
  SP0 – FMV

  	
   

  
	
  SP0

  	
   

  

 

where,

 

CP0         =              the Conversion Price in effect at the close of business
on the Record Date

 

CP1         =              the Conversion Price in effect immediately after the Record
Date

 

SP0          =              the Current Market Price per share of Common Stock

 

FMV       =              the fair market value (as
determined by Parent’s Board of Directors), on the Record Date, of the shares
of capital stock, evidences of indebtedness or assets so distributed, expressed
as an amount per share of Common Stock.

 

However, if the transaction that gives rise to an
adjustment pursuant to this clause (c) is one pursuant to which the
payment of a dividend or other distribution on Common Stock consists of shares
of Capital Stock of, or similar equity interests in, a Subsidiary or other
business unit of 

 

75

 

Parent (a “Spin-Off”)
that are, or, when issued, will be, traded on a U.S. securities exchange, then
the Conversion Price will instead be adjusted based on the following formula:

 

	
  CP1

  	
  =

  	
  CP0

  	
  x

  	
  MP0

  	
   

  
	
  FMV0 + MP0

  	
   

  

 

where,

 

CP0         =              the Conversion Price in effect at the close of business
on the last Trading Day of the valuation period referred to below

 

CP1         =              the Conversion Price in effect immediately after the
last Trading Day of the valuation period referred to below

 

FMV0     =              the average of the Closing Sale Prices
of the capital stock or similar equity interests distributed to holders of
Common Stock applicable to one share of Common Stock over the 10 consecutive Trading
Day period (the “Valuation Period”) commencing on
and including the third Trading Day after the date on which “ex-distribution
trading” commences for such dividend or distribution on the New York Stock
Exchange or such other national or regional exchange or market on which such
capital stock or equity interest is then listed or quoted

 

MP0        =              the average of the Closing Sale Prices of the Common
Stock over such Valuation Period.

 

If the final day of the Valuation Period occurs
after the second Business Day immediately preceding the Maturity Date, the Valuation
Period shall be deemed to be such number of Trading Days from, and including, the
third Trading Day after the commencement of ex-distribution trading to, and
including, the second Business Day immediately preceding the Maturity Date.

 

Such adjustment shall become effective immediately
after the Record Date for such dividend or distribution.  If such dividend or distribution is not so
made, the Conversion Price shall be readjusted to be the Conversion Price that
would then be in effect if such dividend or distribution had not been declared.

 

(d)           dividends
or other distributions consisting exclusively of cash to all holders of Common
Stock, in which event the Conversion Price will be adjusted based on the
following formula:

 

	
  CP1

  	
  =

  	
  CP0

  	
  x

  	
  SP0 – C

  	
   

  
	
  SP0

  	
   

  

 

where,

 

CP0         =              the Conversion Price in effect at the close of business
on the Record Date

 

CP1         =              the Conversion Price in effect immediately after the Record
Date

 

SP0          =              the Current Market Price per share of Common Stock

 

76

 

C             =              the amount in cash per share
distributed by Parent to holders of Common Stock

 

Such adjustment shall become effective immediately
after the Record Date for such dividend or distribution.  In the event that any such dividend or
distribution is not so made, the Conversion Price shall be readjusted to be the
Conversion Price that would then be in effect if such dividend or distribution
had not been declared.

 

(e)           Parent
or one or more of its Subsidiaries make purchases of Common Stock pursuant to a
tender offer or exchange offer by Parent or one of its Subsidiaries for Common
Stock to the extent that the cash and value of any other consideration included
in the payment per share of Common Stock validly tendered or exchanged exceeds
the Closing Sale Price per share of Common Stock on the Trading Day next
succeeding the last date on which tenders or exchanges may be made pursuant to
such tender or exchange offer (the “Expiration Date”),
in which event the Conversion Price shall be adjusted based on the following
formula:

 

	
  CP1

  	
  =

  	
  CP0

  	
  x

  	
  OS0 x SP1

  	
   

  
	
  FMV + (SP1 x OS1)

  	
   

  

 

where,

 

CP0         =              the Conversion Price in effect on the Trading Day
immediately following such Expiration Date

 

CP1         =              the Conversion Price in effect on the second Trading
Day immediately following such Expiration Date

 

FMV       =              the fair market value (as
determined by Parent’s Board of Directors), on the Expiration Date, of the
aggregate value of all cash and any other consideration paid or payable for
shares validly tendered or exchanged and not withdrawn as of the Expiration Date

 

OS1         =              the number of shares of Common Stock outstanding as of
the last time tenders or exchanges may be made pursuant to such tender or
exchange offer (the “Expiration Time”),
after giving effect to the purchase or exchange of shares of Common Stock
pursuant to such tender offer or exchange offer

 

OS0         =              the number of shares of Common Stock outstanding at the
Expiration Time, including any purchased or exchanged shares

 

SP1          =              the average of the Closing Sale Prices of Common Stock
for the ten consecutive Trading Days ending on the Trading Day next succeeding
the Expiration Date

 

Such adjustment shall become effective immediately
prior to the open of business on the Trading Day immediately following the
Expiration Date.  In the event Parent or
one of its Subsidiaries is obligated to purchase shares of the Common Stock
pursuant to any such tender offer or exchange offer, but Parent or such
Subsidiary is permanently prevented by applicable law from effecting any such
purchases, or all such purchases are rescinded, the Conversion Price shall be
readjusted to be the Conversion Price that would then be in effect if such
tender offer or 

 

77

 

exchange offer had not been made.  Except as set forth in the preceding
sentence, if the application of this clause (e) to any tender offer or
exchange offer would result in a decrease in the Conversion Price, no
adjustment shall be made for such tender offer or exchange offer under this Section 10.06(e).

 

(f)            Except
with respect to a Spin-Off, in cases where the fair market value (as determined
by Parent’s Board of Directors) of assets, debt securities or certain rights,
warrants or options to purchase Parent’s securities, or the amount of the cash
dividend or distribution applicable to one share of Common Stock, distributed
to all or substantially all stockholders equals or exceeds the average Closing Sale
Prices of Common Stock over the ten (10) consecutive Trading Day period ending
on the Trading Day immediately preceding the declaration date for such
distribution, rather than being entitled to an adjustment in the Conversion Price,
the Holder will be entitled to receive upon conversion, in addition to the
shares of Common Stock, the kind and amount of assets, debt securities or
rights, warrants or options, or cash comprising the distribution, if any, that
such Holder would have received if such Holder had held a number of shares of
Common Stock equal to the Accreted Principal Amount of the Notes held, divided by the Conversion Price in effect immediately prior
to the Record Date for determining the stockholders entitled to receive the
distribution.

 

(g)           To
the extent permitted by applicable law and subject to the applicable rules of
the New York Stock Exchange, Parent from time to time may decrease the
Conversion Price by any amount for a period of at least twenty (20) calendar days
if the decrease is irrevocable during the period and Parent’s Board of
Directors shall have made a determination that such decrease would be in Parent’s
best interest, which determination shall be conclusive.  Whenever the Conversion Price is decreased
pursuant to the preceding sentence, Parent shall mail to holders of record of
the Notes a notice of the decrease, which notice will be given at least five (5)
calendar days prior to the effectiveness of any such decrease, and such notice
shall state the decreased Conversion Price and the period during which it will
be in effect.

 

(h)           In
addition, Parent may (but is not required to) decrease the Conversion Price to
avoid or diminish any income tax to holders of Common Stock or rights to
purchase shares of Common Stock in connection with a dividend or distribution
of shares (or rights to acquire shares) or similar event.

 

(i)            Adjustments
to the Conversion Price shall be calculated to the nearest cent. No adjustment
to the Conversion Price shall be required unless the adjustment would require
an increase or decrease of at least 1% of the Conversion Price. However, Parent
will carry forward any adjustments that are less than 1% of the Conversion Price
that it elects not to make and take them into account upon the earlier of (1) any
conversion of Notes or (2) such time as all adjustments that have not been
made prior thereto would have the effect of adjusting the Conversion Price by
at least 1%.

 

(j)            Whenever
the Conversion Price is adjusted as herein provided, Parent shall issue a press
release containing the relevant information, including, but not limited to, any
applicable declaration date, and make this information available on its
website.  In addition, Parent shall
promptly file with the Trustee and any Conversion Agent other than the Trustee
an Officers’ Certificate setting forth any applicable declaration date and the
Conversion Price after such 

 

78

 

adjustment and setting forth a brief statement of
the facts requiring such adjustment. 
Unless and until a Responsible Officer of the Trustee shall have
received such Officers’ Certificate, the Trustee shall not be deemed to have
knowledge of any adjustment of the Conversion Price and may assume without
inquiry that the last Conversion Price of which it has knowledge is still in
effect.  Promptly after delivery of such
certificate, Parent shall prepare a notice of such adjustment of the Conversion
Price setting forth the adjusted Conversion Price and the date on which each
adjustment becomes effective and shall mail such notice of such adjustment of
the Conversion Price to each Holder at its last address appearing on the
Security Register within twenty (20) calendar days of the effective date of
such adjustment.  Failure to deliver such
notice shall not affect the legality or validity of any such adjustment.

 

(k)           In
any case in which this Section 10.06 provides that an adjustment shall
become effective immediately after (i) a Record Date for a dividend or
distribution described in Sections 10.06(a), 10.06(b) or 10.06(d), (ii) the
effective date for a share split or share combination of the Common Stock
described in Section 10.06(a), (iii) a Record Date for the
determination of stockholders entitled to receive rights or warrants pursuant
to Section 10.06(b), or (iv) the Expiration Date for any tender or
exchange offer pursuant to Section 10.06(e), (each, a “Determination Date”), Parent may elect to
defer until the occurrence of the applicable Adjustment Event (as hereinafter
defined) (x) issuing to the Holder of any Notes converted after such
Determination Date and before the occurrence of such Adjustment Event, the
additional shares of Common Stock or other securities issuable upon such
conversion by reason of the adjustment required by such Adjustment Event over
and above the Common Stock issuable upon such conversion before giving effect
to such adjustment and (y) paying to such Holder any amount in cash in lieu
of any fractional share pursuant to Section 10.06.  For purposes of this Section 10.06(k),
the term “Adjustment Event” shall
mean:

 

(1) in any case referred to in clause (i) hereof, the date
any such dividend or distribution is paid or made;

 

(2) in any case referred to in clause (ii) hereof, the
occurrence of such event;

 

(3) in any case referred to in clause (iii) hereof, the date
of expiration of such rights or warrants; and

 

(4) in any case referred to in clause (iv) hereof, the date a
sale or exchange of Common Stock pursuant to such tender or exchange offer is
consummated and becomes irrevocable.

 

(l)            To
the extent that Parent has a shareholder rights plan in effect, upon conversion
of the Notes into Common Stock, Holders will receive, in addition to the Common
Stock due upon conversion, the rights under the rights plan, unless the rights
have separated from the Common Stock, prior to any conversion, in which case
the Conversion Price will be adjusted at the time of separation as described in
clause (3) above. A further adjustment will occur as described in clause (3)
above, if such rights become exercisable to purchase different securities,
evidences of indebtedness or assets, subject to readjustment in the event of
the expiration, termination or redemption of such rights.

 

79

 

(m)          Notwithstanding
any of the foregoing clauses in this Section 10.06, the applicable
Conversion Price shall not be adjusted pursuant to clauses (b) through (d)
above if the Holders will participate in the transaction that would otherwise
give rise to adjustment pursuant to this Section 10.06 without conversion
of such Holder’s Notes on a basis equivalent to a holder of a number of shares
of Common Stock equal to the Accreted Principal Amount of the Notes held by the
Holder divided by the applicable Conversion
Price.  In no event shall Parent adjust
the Conversion Price to the extent that the adjustment would reduce the
Conversion Price below the par value per share of Common Stock.  In addition, the applicable Conversion Price
will not be adjusted:

 

(i)         upon
the issuance of any shares of Common Stock pursuant to any present or future
plan providing for the reinvestment of dividends or interest payable on the
securities of Parent or any of its Subsidiaries and the investment of
additional optional amounts in shares of Common Stock under any plan;

 

(ii)        upon
the issuance of any shares of Common Stock or options or rights to purchase
those shares pursuant to any present or future employee, director or consultant
benefit plan or program of or assumed by Parent or any of its Subsidiaries;

 

(iii)       upon
the issuance of any shares of Common Stock pursuant to any option, warrant,
right or exercisable, exchangeable or convertible security not described in the
preceding bullet and outstanding as of the date the Notes were first issued;

 

(iv)       for
a change in the par value of the Common Stock; or

 

(v)        for
accrued and unpaid interest.

 

(n)           For
purposes of this Section 10.06, the number of shares of Common Stock at
any time outstanding shall not include shares held in the treasury of Parent
but shall include shares issuable in respect of scrip certificates issued in
lieu of fractions of shares of Common Stock. 
Parent shall not pay any dividend or make any distribution on shares of
Common Stock held in the treasury of Parent.

 

(o)           If
the Conversion Price of the Notes is adjusted pursuant to this Indenture, to
the extent such adjustment results in a constructive distribution to beneficial
owners of the Notes under Section 305 of the Internal Revenue Code of
1986, as amended, either Co-Issuer may, to the extent required by law, recoup
or set-off such liability against any payments (whether in cash or Common
Stock) made with respect to the Notes (or any Common Stock received upon
conversion thereof) to such beneficial owners.

 

Section 10.07.  Effect of Reclassification,
Consolidation, Merger Or Sale.  In
the event of:

 

(a)           any
recapitalization, reclassification or change of Common Stock (other than
changes resulting from a subdivision or combination to which Section 10.06(a)
applies or a change in par value or from par value to no par value or vice
versa);

 

(b)           a
consolidation, merger or combination involving Parent; or

 

80

 

(c)           a
sale, lease or other transfer to a third party of the consolidated assets of
Parent and its Subsidiaries substantially as an entirety, or any statutory
share exchange,

 

in which holders of Common Stock received
cash, securities or other property (the “Reference
Property”) in exchange for such Common Stock (any such event or
transaction, a “Reorganization Event”),
in each case, Parent or its successor, as the case may be, shall execute with
the Trustee a supplemental indenture (which shall comply with the Trust
Indenture Act as in force at the date of execution of such supplemental
indenture, if such supplemental indenture is then required to so comply)
providing that the Notes shall become convertible based on the type and amount
of consideration that the holders of a number of shares of Common Stock equal
to the Accreted Principal Amount of Notes divided by the
Conversion Price would have received in such Reorganization Event.  If the Reorganization Event causes the Common
Stock to be exchanged for more than a single type of consideration (determined
based in part upon any form of stockholder election), the Reference Property
into which the Notes will be convertible will be deemed to be (1) if the
holders of a majority of Common Stock make an affirmative election, the
weighted average of the types and amounts of consideration received by the
holders of Common Stock that affirmatively make such an election or (2) if
the holders of a majority of Common Stock do not make an affirmative election,
the weighted average of the types and amounts of consideration received by all
holders of Common Stock.  In all cases,
the provisions under Section 10.04 shall continue to apply with respect to
the calculation of the Conversion Obligation. 
Parent hereby agrees not to become a party to any such transaction
unless its terms are consistent with the foregoing.  Such supplemental indenture shall provide for
adjustments which shall be as nearly equivalent as practicable to the
adjustments provided for in this Article 10.  Parent shall cause notice of the execution of
such supplemental indenture to be mailed to each Holder, at the address of such
Holder as it appears on the Security Register of the Notes maintained by the
Security Registrar, within twenty (20) calendar days after execution
thereof.  Failure to deliver such notice
shall not affect the legality or validity of such supplemental indenture.

 

Section 10.08.  Certain Covenants.  (a) Parent shall, prior to
the issuance of any Notes hereunder, and from time to time as may be necessary,
reserve out of its authorized but unissued Common Stock or shares of Common
Stock held in treasury, a sufficient number of shares of Common Stock, free of
preemptive rights, to permit the conversion of the Notes.

 

(b)           Parent
covenants that all shares of Common Stock issued upon conversion of Notes shall
be duly and validly issued and fully paid and non-assessable by Parent and free
from all taxes, liens and charges with respect to the issue thereof.

 

(c)           Parent
shall endeavor promptly to comply with all federal and state securities laws
regulating the issuance and delivery of shares of Common Stock upon the
conversion of Notes, if any, and shall cause to have listed or quoted and shall
keep listed or quoted all such shares of Common Stock on each U.S. national
securities exchange or automatic quotation system or over-the-counter or other
domestic market on which the Common Stock is then listed or quoted.

 

Section 10.09.  Notice To Holders Prior To
Certain Actions.  In case:

 

81

 

(a)           Parent
shall declare a dividend (or any other distribution) on its Common Stock that
would require an adjustment in the Conversion Price pursuant to Section 10.06;
or

 

(b)           Parent
shall authorize the granting to all or substantially all of the holders of its
Common Stock of rights or warrants to subscribe for or purchase any share of
any class or any other rights or warrants that would require an adjustment in
the Conversion Price pursuant to Section 10.06; or

 

(c)           of
any reclassification of the Common Stock of Parent (other than a share split or
share combination of its outstanding Common Stock, or a change in par value),
or of any share exchange, consolidation or merger to which Parent is a party
and for which approval of any stockholders of Parent is required, or of the
conveyance, transfer, sale, lease or other disposition of all or substantially
all of the consolidated assets of Parent; or

 

(d)           of
the voluntary or involuntary dissolution, liquidation or winding up of Parent;

 

Parent shall cause to be filed with the
Trustee and to be mailed to each Holder at its address appearing on the
Security Register, as promptly as possible but in any event at least twenty
(20) calendar days prior to the applicable date hereinafter specified, a notice
stating (x) the declaration date of the dividend or other distribution, (y) the
date on which a record is to be taken for the purpose of such dividend,
distribution or rights or warrants, or, if a record is not to be taken, the
date as of which the holders of Common Stock of record to be entitled to such
dividend, distribution or rights are to be determined, or (z) the date on
which such reclassification, share exchange, consolidation, merger, conveyance,
transfer, sale, lease or other disposition, dissolution, liquidation or winding
up is expected to become effective or occur, and the date as of which it is
expected that holders of Common Stock of record shall be entitled to exchange
their Common Stock for securities or other property deliverable upon such
reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding up.  Failure to
give such notice, or any defect therein, shall not affect the legality or
validity of such dividend, distribution, reclassification, consolidation,
merger, sale, transfer, dissolution, liquidation or winding up.

 

Section 10.10.  Stockholder Rights Plans.  If the rights provided for in any
rights plan adopted by Parent have not separated from the shares of Common
Stock in accordance with the provisions of the applicable stockholder rights
agreement, upon conversion of Notes, the converting Holder shall receive, in
addition to shares of Common Stock, if any, the rights under the applicable
stockholders rights agreement.  If such
rights have separated from the Common Stock, the Conversion Price shall be
adjusted as provided in Section 10.06(c) at the time of separation as if Parent
distributed to all holders of the Common Stock, shares of Parent’s Capital
Stock, evidences of indebtedness or assets, subject to readjustment in the
event of the expiration, termination or redemption of such rights.

 

Section 10.11.  Responsibility of Trustee.  The Trustee and any other
Conversion Agent shall not at any time be under any duty or responsibility to
any Holder to determine the Conversion Price or whether any facts exist that
may require any adjustment (including any increase) of the Conversion Price, or
with respect to the nature or extent or calculation of any such adjustment when
made, or with respect to the method employed, or herein or in any 

 

82

 

supplemental indenture provided to be
employed, in making the same.  The
Trustee and any other Conversion Agent shall not be accountable with respect to
the validity or value (or the kind or amount) of any shares of Common Stock, or
of any securities, property or cash that may at any time be issued or delivered
upon the conversion of any Note; and the Trustee and any other Conversion Agent
make no representations with respect thereto. 
Neither the Trustee nor any Conversion Agent shall be responsible for
any failure of Parent to issue, transfer or deliver any shares of Common Stock
or stock certificates or other securities or property or cash upon the
surrender of any Note for the purpose of conversion or to comply with any of
the duties, responsibilities or covenants of Parent contained in this Article 10.  Without limiting the generality of the
foregoing, neither the Trustee nor any Conversion Agent shall be under any
responsibility to determine the correctness of any provisions contained in any
supplemental indenture entered into pursuant to Section 10.07 relating
either to the kind or amount of shares of stock or securities or property
(including cash) receivable by Holders upon the conversion of their Notes after
any event referred to in such Section 10.07 or to any adjustment to be
made with respect thereto, but, subject to the provisions of Section 9.01,
may accept as conclusive evidence of the correctness of any such provisions,
and shall be protected in relying upon, the Officers’ Certificate (which the Co-Issuers
shall be obligated to file with the Trustee prior to the execution of any such
supplemental indenture) with respect thereto. 
Neither the Trustee nor the Conversion Agent shall be responsible for
determining whether any event contemplated by Section 10.02(a) with
respect to the termination of conversion rights has occurred until Parent has
delivered to the Trustee and the Conversion Agent the notices referred to in Section 10.02(b),
on which notices the Trustee and the Conversion Agent may conclusively rely,
and Parent agrees to deliver such notices to the Trustee and the Conversion
Agent promptly if it elects to terminate conversion rights as provided for in Section 10.02(a).

 

ARTICLE 11

GUARANTEES

 

Section 11.01.  Guarantees.  Each Guarantor hereby jointly and
severally, unconditionally and irrevocably guarantees the Notes and obligations
of the Co-Issuers hereunder and thereunder, and guarantees to each Holder of a
Note authenticated and delivered by the Trustee, and to the Trustee on behalf
of such Holder, that: (a) the principal of (and premium, if any) and
interest on the Notes shall be paid in full when due, whether at Stated
Maturity, by acceleration or otherwise (including, without limitation, the
amount that would become due but for the operation of the automatic stay under Section 362(a)
of the Bankruptcy Law), together with interest on the overdue principal, if any,
and interest on any overdue interest, to the extent lawful, and all other
obligations of the Co-Issuers to the Holders or the Trustee hereunder or
thereunder shall be paid in full or performed, all in accordance with the terms
hereof and thereof; and (b) in case of any extension of time of payment or
renewal of any Notes or of any such other obligations, the same shall be paid
in full when due or performed in accordance with the terms of the extension or
renewal, whether at Stated Maturity, by acceleration or otherwise, subject, however, in the case of clauses (a) and (b) above, to
the limitation set forth in Section 11.04 hereof.

 

Each Guarantor hereby agrees that its obligations
hereunder shall be unconditional, irrespective of the validity, regularity or
enforceability of the Notes or this Indenture, the absence 

 

83

 

of any action to enforce the same, any waiver
or consent by any Holder with respect to any provisions hereof or thereof, any
release of any other Guarantor, the recovery of any judgment against either
Co-Issuer, any action to enforce the same or any other circumstance which might
otherwise constitute a legal or equitable discharge or defense of a Guarantor.

 

Each Guarantor hereby waives (to the extent
permitted by law) the benefits of diligence, presentment, demand for payment,
filing of claims with a court in the event of insolvency or bankruptcy of
either Co-Issuer, any right to require a proceeding first against either
Co-Issuer or any other Person, protest, notice and all demands whatsoever and
covenants that the Guarantee of such Guarantor shall not be discharged as to
any Note except by complete performance of the obligations contained in such
Note, this Indenture and such Guarantee. 
Each Guarantor acknowledges that the Guarantee is a guarantee of payment
and not of collection.  Each of the
Guarantors hereby agrees that, in the event of a default in payment of
principal (or premium, if any) or interest on such Note, whether at its Stated
Maturity, by acceleration, purchase or otherwise, legal proceedings may be
instituted by the Trustee on behalf of, or by, the Holder of such Note, subject
to the terms and conditions set forth in this Indenture, directly against each
of the Guarantors to enforce such Guarantor’s Guarantee without first
proceeding against either Co-Issuer or any other Guarantor.  Each Guarantor agrees that if, after the
occurrence and during the continuance of an Event of Default, the Trustee or
any of the Holders are prevented by applicable law from exercising their
respective rights to accelerate the Maturity of the Notes, to collect interest
on the Notes, or to enforce or exercise any other right or remedy with respect
to the Notes, such Guarantor shall pay to the Trustee for the account of the
Holder, upon demand therefor, the amount that would otherwise have been due and
payable had such rights and remedies been permitted to be exercised by the
Trustee or any of the Holders.

 

If any Holder or the Trustee is required by any
court or otherwise to return to either Co-Issuer or any Guarantor, or any
custodian, trustee, liquidator or other similar official acting in relation to
either Co-Issuer or any Guarantor, any amount paid by any of them to the
Trustee or such Holder, the Guarantee of each of the Guarantors, to the extent
theretofore discharged, shall be reinstated in full force and effect.  Each Guarantor further agrees that, as
between each Guarantor, on the one hand, and the Holders and the Trustee on the
other hand, (x) subject to this Article Twelve, the Maturity of the
obligations guaranteed hereby may be accelerated as provided in Article Five
hereof for the purposes of the Guarantee of such Guarantor notwithstanding any
stay, injunction or other prohibition preventing such acceleration in respect
of the obligations guaranteed hereby, and (y) in the event of any
acceleration of such obligation as provided in Article Five hereof, such
obligations (whether or not due and payable) shall forthwith become due and
payable by each Guarantor for the purpose of the Guarantee of such Guarantor.

 

Each Guarantee shall remain in full force and effect
and continue to be effective should any petition be filed by or against either
Co-Issuer for liquidation, reorganization, should either Co-Issuer become
insolvent or make an assignment for the benefit of creditors or should a
receiver or trustee be appointed for all or any significant part of either
Co-Issuer’s assets, and shall, to the fullest extent permitted by law, continue
to be effective or be reinstated, as the case may be, if at any time payment
and performance of the Notes are, pursuant to applicable law, rescinded or
reduced in amount, or must otherwise be restored or returned by any obligee on
the Notes, whether as a “voidable preference”, “fraudulent transfer” or
otherwise, all as though such

 

84

 

payment or performance had not been
made.  In the event that any payment or
any part thereof, is rescinded, reduced, restored or returned, the Notes shall,
to the fullest extent permitted by law, be reinstated and deemed reduced only
by such amount paid and not so rescinded, reduced, restored or returned.

 

Section 11.02.  Severability.  In case any provision of any
Guarantee shall be invalid, illegal or unenforceable, the validity, legality,
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

 

Section 11.03.  Restricted Subsidiaries.  The Co-Issuers shall cause any
Restricted Subsidiary required to guarantee payment of the Notes pursuant to
the terms and provisions of  Section 5.14
to (i) execute and deliver to the Trustee any amendment or supplement to
this Indenture in accordance with the provisions of Article Nine of this
Indenture pursuant to which such Restricted Subsidiary shall guarantee all of
the obligations on the Notes, whether for principal (premium, if any), interest
(including interest accruing after the filing of, or which would have accrued
but for the filing of, a petition by or against either Co-Issuer under
Bankruptcy Law, whether or not such interest is allowed as a claim after such filing
in any proceeding under such law) and other amounts due in connection therewith
(including any fees, expenses and indemnities), on a senior secured basis, (ii) deliver
to such Trustee an Opinion of Counsel reasonably satisfactory to such Trustee
to the effect that such amendment or supplement has been duly executed and
delivered by such Restricted Subsidiary and is in compliance with the terms of
this Indenture and (iii) execute and deliver a supplement or such
comparable documentation to become a Grantor or Pledgor to the Security
Agreement, Pledge Agreement and the other Security Documents and to take all
actions to cause the Lien created by the Security Documents to be duly
perfected to the extent required by such agreement.  Upon the execution of any such amendment or
supplement, the obligations of the Guarantors and any such Restricted
Subsidiary under their respective Guarantees shall become joint and several and
each reference to the “Guarantor” in this Indenture shall, subject to Section 11.07
be deemed to refer to all Guarantors, including such Restricted
Subsidiary.  Such Guarantee shall be
released in accordance with Section 8.03 and Section 5.14(b).

 

Section 11.04.  Limitation of Guarantors’
Liability.  Each Guarantor and
by its acceptance hereof each Holder confirms that it is the intention of all
such parties that the guarantee by each such Guarantor pursuant to its
Guarantee not constitute a fraudulent transfer or conveyance for purposes of
the Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform
Fraudulent Transfer Act or any similar federal or state law or the provisions
of its local law relating to fraudulent transfer or conveyance.  To effectuate the foregoing intention, the
Holders and each such Guarantor hereby irrevocably agree that the obligations
of such Guarantor under its Guarantee shall be limited to the maximum amount
that will not, after giving effect to all other contingent and fixed
liabilities of such Guarantor and after giving effect to any collections from or
payments made by or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under its Guarantee or pursuant to this Section 11.04,
result in the obligations of such Guarantor under its Guarantee constituting
such fraudulent transfer or conveyance.

 

Section 11.05.  Contribution.  In order to provide for just and
equitable contribution among the Guarantors, the Guarantors agree, inter se,
that in the event any payment or

 

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

 

Section 11.06.  Subrogation.  Each Guarantor shall be subrogated
to all rights of Holders against the Co-Issuers in respect of any amounts paid
by any Guarantor pursuant to the provisions of Section 11.01; provided, however, that, if an Event of Default has occurred
and is continuing, no Guarantor shall be entitled to enforce or receive any
payments arising out of, or based upon, such right of subrogation until all
amounts then due and payable by the Co-Issuers under this Indenture or the
Notes shall have been paid in full.

 

Section 11.07.  Reinstatement.  Each Guarantor hereby agrees (and
each Person who becomes a Guarantor shall agree) that the Guarantee provided
for in Section 11.01 shall continue to be effective or be reinstated, as
the case may be, if at any time, payment, or any part thereof, of any
obligations or interest thereon is rescinded or must otherwise be restored by a
Holder to either Co-Issuer upon the bankruptcy or insolvency of either
Co-Issuer or any Guarantor.

 

Section 11.08.  Release of A Guarantor.  Concurrently with the discharge of
the Notes under Section 7.01, the Guarantors shall be released from all
their obligations under their Guarantees under this Article 11.  Any Guarantor shall be released from all its
obligations under its Guarantee in accordance with Section 8.03 and Section 5.14(b).

 

Section 11.09.  Benefits Acknowledged.  Each Guarantor acknowledges that
it will receive direct and indirect benefits from the financing arrangements
contemplated by this Indenture and from its guarantee and waivers pursuant to
its Guarantees under this Article 11.

 

ARTICLE 12

SECURITY

 

Section 12.01.  Collateral and Security
Documents.  The due and
punctual payment of the principal of and interest on the Notes when and as the
same shall be due and payable, whether on an Interest Payment Date, at
maturity, by acceleration, repurchase, redemption or otherwise, and interest on
the overdue principal of and interest on the Notes and performance of all other
Obligations of the Co-Issuers and the Guarantors to the Holders, the Trustee or
the

 

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Collateral Agent under this Indenture, the
Notes, the Intercreditor Agreement and the Security Documents, according to the
terms hereunder or thereunder, shall be secured as provided in the Security
Documents, which define the terms of the Liens that secure such Co-Issuers’ and
Guarantors’ Obligations, subject to the terms of the Intercreditor Agreement.  The Trustee and the Co-Issuers hereby
acknowledge and agree that the Collateral Agent holds the Collateral in trust
for the benefit of the Notes Secured Parties, in each case pursuant to the
terms of the Security Documents and the Intercreditor Agreement.  Each Holder, by accepting a Note, consents
and agrees to the terms of the Security Documents (including the provisions
providing for the possession, use, release and foreclosure of Collateral) and
the Intercreditor Agreement as the same may be in effect or may be amended from
time to time in accordance with their terms and this Indenture and the
Intercreditor Agreement, and authorizes and directs the Collateral Agent to
enter into the Security Documents and the Intercreditor Agreement and to perform
its obligations and exercise its rights thereunder in accordance therewith; provided, however, that if any of the provisions of the
Security Documents limit, qualify or conflict with the duties imposed by the
provisions of the TIA, the TIA shall control.  The Co-Issuers shall deliver, or cause to be
delivered, to the Collateral Agent copies of all documents pursuant to the
Security Documents, and will do or cause to be done all such acts and things as
may be reasonably required by the next sentence of this Section 12.01, to
assure and confirm to the Collateral Agent the security interest in the
Collateral contemplated hereby, by the Security Documents or any part thereof,
as from time to time constituted, so as to render the same available for the
security and benefit of this Indenture and of the Notes secured hereby,
according to the intent and purposes herein expressed.  The Co-Issuers shall, and shall cause the
Subsidiaries of Parent to, use their commercially reasonable efforts to take
any and all actions reasonably required to cause the Security Documents to
create and maintain, as security for the Obligations of the Co-Issuers and the
Guarantors under this Indenture, the Notes and the Security Documents, a valid
and enforceable perfected Lien and security interest in and on all of the
Collateral (subject to the terms of the Intercreditor Agreement), in favor of
the Collateral Agent for the benefit of the Notes Secured Parties.  The Co-Issuers shall, and shall cause the
Subsidiaries of Parent to, and each Subsidiary shall, make all filings
(including filings of continuation statements and amendments to financing
statements that may be necessary to continue the effectiveness of such
financing statements) and take all other actions as are necessary or required
by the Security Documents to maintain (at the sole cost and expense of the
Co-Issuers and Subsidiaries of Parent) the security interest created by the
Security Documents in the Collateral (other than with respect to any Collateral
the security interest in which is not required to be perfected under the
Security Documents) as a perfected security interest with the priority set
forth in the Intercreditor Agreement and subject only to Permitted Liens.

 

Section 12.02.  Recordings and Opinions.  (a) To the extent applicable,
the Co-Issuers shall cause TIA § 313(b), relating to reports, TIA § 314(d),
relating to the release of property or securities subject to the Lien of the
Security Documents and TIA § 314(b), to be complied with.

 

(b)        Any release of Collateral
permitted by Section 12.03 hereof will be deemed not to impair the Liens
under this Indenture, the Security Agreement, the Pledge Agreement and the
other Security Documents in contravention thereof.  Any certificate or opinion required by TIA §
314(d) shall be made by an officer or legal counsel, as applicable, of the
Co-Issuers except in cases where TIA § 314(d) requires that such
certificate or opinion be made by an independent

 

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Person, which Person will be
an independent engineer, appraiser or other expert reasonably satisfactory to
the Trustee.

 

(c)        Notwithstanding anything to
the contrary in this Section 12.02, the Co-Issuers shall not be required
to comply with all or any portion of TIA § 314(d) if it reasonably
determines that under the terms of TIA § 314(d) or any interpretation or
guidance as to the meaning thereof of the Commission and its staff, including “no
action” letters or exemptive orders, all or any portion of TIA § 314(d) is
inapplicable to any release or series of releases of Collateral.  Without limiting the generality of the
foregoing, the Co-Issuers and the Guarantors may, subject to the other
provisions of this Indenture, among other things, without any release or
consent by the Notes Secured Parties, conduct ordinary course activities with
respect to the Collateral, including, without limitation, (i) selling or
otherwise disposing of, in any transaction or series of related transactions,
any property subject to the Lien of the Security Documents that has become worn
out, defective, obsolete or not used or useful in the business; (ii) abandoning,
terminating, canceling, releasing or making alterations in or substitutions of
any leases or contracts subject to the Lien of this Indenture or any of the
Security Documents; (iii) surrendering or modifying any franchise, license
or permit subject to the Lien of the Security Documents that it may own or
under which it may be operating; (iv) altering, repairing, replacing,
changing the location or position of and adding to its structures, machinery,
systems, equipment, fixtures and appurtenances; (v) granting a license of
any intellectual property; (vi) selling, transferring or otherwise
disposing of inventory in the ordinary course of business; (vii) collecting
accounts receivable in the ordinary course of business as permitted by Section 1018
of the First Lien Notes Indenture; (viii) making cash payments (including
for the repayment of Indebtedness or interest) from cash that is at any time
part of the Collateral in the ordinary course of business that are not
otherwise prohibited by this Indenture and the Security Documents; and (ix) abandoning
any intellectual property that is no longer used or useful in the Co-Issuers’
or the Guarantor’s businesses.

 

Section 12.03.  Release of Collateral.  (a) Subject to Sections 12.02(b) and
12.04 hereof, Collateral may be released from the Lien and security interest
created by the Security Documents at any time or from time to time in
accordance with the provisions of the Security Documents, the Intercreditor
Agreement or as provided hereby.  The
Co-Issuers and the Guarantors shall be entitled to a release of property and
other assets included in the Collateral from the Liens securing the Notes and
the Guarantees, and the Trustee (subject to its receipt of an Officer’s
Certificate and Opinion of Counsel as provided below) shall release, or
instruct the Collateral Agent to release, as applicable, the same from such
Liens at the Co-Issuers’ sole cost and expense, under one or more of the
following circumstances:

 

(i)            to enable the Co-Issuers or any Guarantor to sell,
exchange or otherwise dispose of any of the Collateral to the extent not
prohibited hereunder or under Section 1018 of the First Lien Notes
Indenture;

 

(ii)           the release of Excess ABL Proceeds or Excess
Proceeds that remain unexpended after the conclusion of an ABL Asset Sale Offer
or Asset Sale Offer, as the case may be, conducted in accordance with the terms
of the First Lien Notes Indenture;

 

88

 

(iii)          in the case of a Guarantor that is released from its
Guarantee with respect to the Notes, the release of the property and assets of
such Guarantor;

 

(iv)          pursuant to an amendment or waiver in accordance with
Article 9 of this Indenture; or

 

(v)           if the Notes have been discharged pursuant to Article 7
of this Indenture.

 

(b)        Upon receipt of an Officers’
Certificate and an Opinion of Counsel certifying that all conditions precedent
under this Indenture and the Security Documents (and TIA Section 314(d)),
if any, to such release have been met and any necessary or proper instruments
of termination, satisfaction or release prepared by the Co-Issuers, the Trustee
shall, or shall cause the Collateral Agent to, execute, deliver or acknowledge
(at the Co-Issuers’ expense) such instruments or releases to evidence the
release of any Collateral permitted to be released pursuant to this Indenture
or the Security Documents or the Intercreditor Agreement.  Neither the Trustee nor the Collateral Agent
shall be liable for any such release undertaken in good faith in reliance upon
any such Officers’ Certificate or Opinion of Counsel, and notwithstanding any
term hereof or in any Security Document to the contrary, the Trustee and
Collateral Agent shall not be under any obligation to release any such Lien and
security interest, or execute and deliver any such instrument of release,
satisfaction or termination, unless and until it receives such Officers’
Certificate and Opinion of Counsel.

 

Section 12.04.  Certificates of The
Trustee.  In the event that
the Co-Issuers wish to release Collateral in accordance with this Indenture,
the Security Documents and the Intercreditor Agreement at a time when the
Trustee is not itself also the Collateral Agent and the Co-Issuers have
delivered the certificates and documents required by the Security Documents and
Section 12.03 hereof, if TIA § 314(d) is applicable to such release
(the applicability of which will be established to the reasonable satisfaction
of the Trustee), the Trustee shall determine whether it has received all
documentation required by TIA § 314(d) in connection with such release
(which determination may be based upon the Opinion of Counsel hereafter
described) and, based on an Opinion of Counsel pursuant to Section 102 of
the Base Indenture, shall deliver a certificate to the Collateral Agent setting
forth such determination.  The Trustee, however, shall have no duty to confirm the legality,
genuineness, accuracy, contents or validity of such documents (or any signature
appearing therein), its sole duty being to certify its receipt of such
documents which, on their face (and assuming that they are what they purport to
be), conform to § 314(d) of the TIA.

 

Section 12.05.  Suits To Protect The
Collateral.  Subject to the
provisions of Article Six of the Base Indenture and the Intercreditor
Agreement, the Trustee in its sole discretion and without the consent of the
Holders, on behalf of the Holders, may or may direct the Collateral Agent to
take all actions it deems necessary or appropriate in order to:

 

(a)        enforce any of the terms of
the Security Documents; and

 

(b)        collect and receive any and
all amounts payable in respect of the obligations hereunder.

 

89

 

Subject to the provisions of the Security Documents
and the Intercreditor Agreement, the Trustee shall have power to institute and
to maintain such suits and proceedings as it may deem expedient to prevent any
impairment of the Collateral by any acts which may be unlawful or in violation
of any of the Security Documents or this Indenture, and such suits and
proceedings as the Trustee, in its sole discretion, may deem expedient to
preserve or protect its interests and the interests of the Holders in the
Collateral (including power to institute and maintain suits or proceedings to
restrain the enforcement of or compliance with any legislative or other
governmental enactment, rule or order that may be unconstitutional or
otherwise invalid if the enforcement of, or compliance with, such enactment, rule or
order would impair the Lien on the Collateral or be prejudicial to the
interests of the Holders or the Trustee). Nothing in this Section 12.05
shall be considered to impose any such duty or obligation to act on the part of
the Trustee.

 

Section 12.06.  Authorization of Receipt of
Funds By The Trustee Under The Security Documents.  Subject to the provisions of the
Intercreditor Agreement, the Trustee is authorized to receive any funds for the
benefit of the Holders distributed under the Security Documents, and to make
further distributions of such funds to the Holders according to the provisions
of this Indenture.

 

Section 12.07.  Purchase Protected.  In no event shall any purchaser in
good faith of any property purported to be released hereunder be bound to
ascertain the authority of the Collateral Agent or the Trustee to execute the
release or to inquire as to the satisfaction of any conditions required by the
provisions hereof for the exercise of such authority or to see to the
application of any consideration given by such purchaser or other transferee;
nor shall any purchaser or other transferee of any property or rights permitted
by this Article 12 to be sold be under any obligation to ascertain or
inquire into the authority of the Co-Issuers or the applicable Guarantor to
make any such sale or other transfer.

 

Section 12.08.  Powers Exercisable By Receiver
Or Trustee.  In case the
Collateral shall be in the possession of a receiver or trustee, lawfully
appointed, the powers conferred in this Article 12 upon the Co-Issuers or
a Guarantor with respect to the release, sale or other disposition of such
property may be exercised by such receiver or trustee, and an instrument signed
by such receiver or trustee shall be deemed the equivalent of any similar
instrument of the Co-Issuers or a Guarantor or of any officer or officers
thereof required by the provisions of this Article 12; and if the Trustee
shall be in the possession of the Collateral under any provision of this
Indenture, then such powers may be exercised by the Trustee.

 

Section 12.09.  Release Upon Termination of
The Co-Issuers’ Obligations.  In
the event that the Co-Issuers deliver to the Trustee, in form and substance
reasonably acceptable to it, an Officers’ Certificate certifying that payment
in full of the principal of, together with accrued and unpaid interest on, the
Notes and all other Obligations under this Indenture, the Guarantees and the
Security Documents that are due and payable at or prior to the time such
principal, together with accrued and unpaid interest, are paid or, the Trustee
shall deliver to the Co-Issuers and the Collateral Agent a notice stating that
the Trustee, on behalf of the Holders, disclaims and gives up any and all
rights it has in or to the Collateral, and any rights it has under the Security
Documents, and upon receipt by the Collateral Agent of such notice, the
Collateral Agent shall be deemed not to hold a Lien in the Collateral on behalf
of the Trustee and shall do or cause to be done all acts reasonably necessary
to release such Lien as soon as is reasonably practicable.

 

90

 

Section 12.10.  Collateral Agent.  (a) The Trustee and each of
the Holders by acceptance of the Notes hereby designates and appoints the
Collateral Agent as its agent under this Indenture, the Security Agreement, the
Pledge Agreement, the Security Documents and the Intercreditor Agreement and
the Trustee and each of the Holders by acceptance of the Notes hereby
irrevocably authorizes the Collateral Agent to take such action on its behalf
under the provisions of this Indenture, the Security Agreement, the Pledge
Agreement, the Security Documents and the Intercreditor Agreement and to
exercise such powers and perform such duties as are expressly delegated to the
Collateral Agent by the terms of this Indenture, the Security Agreement, the
Pledge Agreement, the Security Documents and the Intercreditor Agreement,
together with such powers as are reasonably incidental thereto.  The Collateral Agent agrees to act as such on
the express conditions contained in this Section 12.10.  The provisions of this Section 12.10 are
solely for the benefit of the Collateral Agent and none of the Trustee, any of
the Holders nor the Co-Issuers or any of the Guarantors shall have any rights
as a third party beneficiary of any of the provisions contained herein other
than as expressly provided in Section 12.03.  Notwithstanding any provision to the contrary
contained elsewhere in this Indenture, the Security Agreement, the Pledge
Agreement, the Security Documents and the Intercreditor Agreement, the
Collateral Agent shall not have any duties or responsibilities, except those
expressly set forth herein, nor shall the Collateral Agent have or be deemed to
have any fiduciary relationship with the Trustee, any Holder or either
Co-Issuer or any Guarantor, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Indenture, the Security Agreement, the Pledge Agreement, the Security Documents
and the Intercreditor Agreement or otherwise exist against the Collateral
Agent.  Without limiting the generality
of the foregoing sentence, the use of the term “agent” in this Indenture with
reference to the Collateral Agent is not intended to connote any fiduciary or
other implied (or express) obligations arising under agency doctrine of any
applicable law.  Instead, such term is
used merely as a matter of market custom, and is intended to create or reflect
only an administrative relationship between independent contracting
parties.  Except as expressly otherwise
provided in this Indenture, the Collateral Agent shall have and may use its
sole discretion with respect to exercising or refraining from exercising any
discretionary rights or taking or refraining from taking any actions which the
Collateral Agent is expressly entitled to take or assert under this Indenture,
the Security Agreement, the Pledge Agreement, the Security Documents and the
Intercreditor Agreement, including the exercise of remedies pursuant to Article 6,
and any action so taken or not taken shall be deemed consented to by the
Trustee and the Holders.

 

(b)        The Collateral Agent may
execute any of its duties under this Indenture, the Security Documents or the
Intercreditor Agreement by or through agents, employees or attorneys-in-fact
and shall be entitled to advice of counsel concerning all matters pertaining to
such duties.  The Collateral Agent shall
not be responsible for the negligence or misconduct of any agent, employee or
attorney-in-fact that it selects as long as such selection was made without
negligence or willful misconduct.

 

(c)        None of the Collateral Agent
or any of its agents or employees shall (i) be liable for any action taken
or omitted to be taken by any of them under or in connection with this
Indenture or the transactions contemplated hereby (except for its own
negligence or willful misconduct) or under or in connection with the Security
Agreement, the Pledge Agreement, any Security Document or the Intercreditor
Agreement or the transactions contemplated thereby (except for its own
negligence or willful misconduct), or (ii) be responsible in any manner to
the Trustee or any

 

91

 

Holder for any recital,
statement, representation, warranty, covenant or agreement made by either
Co-Issuer or any Guarantor, contained in this or any Indenture, or in any
certificate, report, statement or other document referred to or provided for
in, or received by the Collateral Agent under or in connection with, this or
any other Indenture, the Security Agreement, the Pledge Agreement, the Security
Documents or the Intercreditor Agreement, or the validity, effectiveness,
genuineness, enforceability or sufficiency of this or any other Indenture, the
Security Agreement, the Pledge Agreement, the Security Documents or the
Intercreditor Agreement, or for any failure of either Co-Issuer or any
Guarantor or any other party to this Indenture, the Security Agreement, the
Pledge Agreement, the Security Documents or the Intercreditor Agreement to
perform its obligations hereunder or thereunder.  None of the Collateral Agent or any of its agents
or employees shall be under any obligation to the Trustee or any Holder to
ascertain or to inquire as to the observance or performance of any of the
agreements contained in, or conditions of, this or any other Indenture, the
Security Agreement, the Pledge Agreement, the Security Documents or the
Intercreditor Agreement or to inspect the properties, books or records of
either Co-Issuer or any Guarantor.

 

(d)        The Collateral Agent shall
be entitled to rely, and shall be fully protected in relying, upon any writing,
resolution, notice, consent, certificate, affidavit, letter, telegram,
facsimile, telex or telephone message, statement or other document or
conversation believed by it to be genuine and correct and to have been signed,
sent or made by the proper Person or Persons, and upon advice and statements of
legal counsel (including, without limitation, counsel to the Co-Issuers or any
Guarantor), independent accountants and other experts and advisors selected by
the Collateral Agent.  The Collateral
Agent shall be fully justified in failing or refusing to take any action under
this or any other Indenture, the Security Agreement, the Pledge Agreement, the
Security Documents or the Intercreditor Agreement unless it shall first receive
such advice or concurrence of the Trustee as it deems appropriate and, if it so
requests, it shall first be indemnified to its satisfaction by the Holders
against any and all liability and expense which may be incurred by it by reason
of taking or continuing to take any such action.  The Collateral Agent shall in all cases be
fully protected in acting, or in refraining from acting, under this or any
other Indenture, the Security Agreement, the Pledge Agreement, the Security
Documents or the Intercreditor Agreement in accordance with a request or
consent of the Trustee and such request and any action taken or failure to act
pursuant thereto shall be binding upon all of the Holders.

 

(e)        The Collateral Agent shall
not be deemed to have knowledge or notice of the occurrence of any Default or
Event of Default, unless the Collateral Agent shall have received written
notice from the Trustee or the Co-Issuers referring to this Indenture,
describing such Default or Event of Default and stating that such notice is a “notice
of default.”  The Collateral Agent shall
take such action with respect to such Default or Event of Default as may be
requested by the Trustee in accordance with Article 6 (subject to Section 12.10);
provided, however, that unless and until
the Collateral Agent has received any such request, the Collateral Agent may
(but shall not be obligated to) take such action, or refrain from taking such
action, with respect to such Default or Event of Default as it shall deem
advisable.

 

(f)         The Bank of New York Mellon
Trust Company, N.A. and its Affiliates (and any successor Collateral Agent and
its Affiliates) may make loans to, issue letters of credit for the account of,
accept deposits from, acquire equity interests in and generally engage in any
kind of

 

92

 

banking, trust, financial
advisory, underwriting, or other business with the Co-Issuers and the
Guarantors as though it was not the Collateral Agent hereunder and without
notice to or consent of the Trustee.  The
Trustee and the Holders acknowledge that, pursuant to such activities, The Bank
of New York Mellon Trust Company, N.A. or its Affiliates (and any successor
Collateral Agent and its Affiliates) may receive information regarding the
Co-Issuers and the Guarantors (including information that may be subject to
confidentiality obligations in favor of the Co-Issuers and the Guarantors) and
acknowledge that the Collateral Agent shall not be under any obligation to
provide such information to the Trustee or the Holders.  Nothing herein shall impose or imply any
obligation on the part of The Bank of New York Mellon Trust Company, N.A. (or
any successor Collateral Agent) to advance funds.

 

(g)        The Collateral Agent may
resign at any time upon thirty (30) days prior written notice to the Trustee
and the Co-Issuers, such resignation to be effective upon the acceptance of a
successor agent to its appointment as Collateral Agent.  If the Collateral Agent resigns under this
Indenture, the Trustee, subject to the consent of the Co-Issuers (which shall
not be unreasonably withheld and which shall not be required during a
continuing Event of Default), shall appoint a successor Collateral Agent.  If no successor collateral agent is appointed
prior to the intended effective date of the resignation of the Collateral Agent
(as stated in the notice of resignation), the Collateral Agent may appoint,
after consulting with the Trustee, subject to the consent of the Co-Issuers
(which shall not be unreasonably withheld and which shall not be required
during a continuing Event of Default), a successor collateral agent.  If no successor collateral agent is appointed
and consented to by the Co-Issuers pursuant to the preceding sentence within
thirty (30) days after the intended effective date of resignation (as stated in
the notice of resignation) the Collateral Agent shall be entitled to petition
at the expense of the Co-Issuers a court of competent jurisdiction to appoint a
successor.  Upon the acceptance of its
appointment as successor collateral agent hereunder, such successor collateral
agent shall succeed to all the rights, powers and duties of the retiring
Collateral Agent, and the term “Collateral Agent” shall mean such successor
collateral agent, and the retiring Collateral Agent’s appointment, powers and
duties as the Collateral Agent shall be terminated.  After the retiring Collateral Agent’s
resignation hereunder, the provisions of this Section 12.10 (and Section 12.12)
shall continue to inure to its benefit and the retiring Collateral Agent shall
not by reason of such resignation be deemed to be released from liability as to
any actions taken or omitted to be taken by it while it was the Collateral
Agent under this Indenture.

 

(h)        The Trustee shall initially
act as Collateral Agent and shall be authorized to appoint co-Collateral Agents
as necessary in its sole discretion. 
Except as otherwise explicitly provided herein or in the Security
Documents or the Intercreditor Agreement, neither the Collateral Agent nor any
of its officers, directors, employees or agents shall be liable for failure to
demand, collect or realize upon any of the Collateral or for any delay in doing
so or shall be under any obligation to sell or otherwise dispose of any
Collateral upon the request of any other Person or to take any other action
whatsoever with regard to the Collateral or any part thereof.  The Collateral Agent shall be accountable
only for amounts that it actually receives as a result of the exercise of such
powers, and neither the Collateral Agent nor any of its officers, directors,
employees or agents shall be responsible for any act or failure to act
hereunder, except for its own willful misconduct, gross negligence or bad
faith.

 

93

 

(i)         The Trustee, as such and as Collateral
Agent, is authorized and directed to (i) enter into the Security
Agreement, the Pledge Agreement and the Security Documents, (ii) enter
into the Intercreditor Agreement, (iii) bind the Holders on the terms as
set forth in the Security Agreement, the Pledge Agreement and the Security
Documents and the Intercreditor Agreement and (iv) perform and observe its
obligations under the Security Agreement, the Pledge Agreement and the Security
Documents and the Intercreditor Agreement.

 

(j)         The Trustee agrees that it
shall not (and shall not be obliged to), and shall not instruct the Collateral
Agent to, unless specifically requested to do so by a majority of the Holders,
take or cause to be taken any action to enforce its rights under this Indenture
or against the Co-Issuers and the Guarantors, including the commencement of any
legal or equitable proceedings, to foreclose any Lien on, or otherwise enforce
any security interest in, any of the Collateral.

 

If at any time or times the Trustee shall receive (i) by
payment, foreclosure, set-off or otherwise, any proceeds of Collateral or any
payments with respect to the Obligations arising under, or relating to, this
Indenture, except for any such proceeds or payments received by the Trustee
from the Collateral Agent pursuant to the terms of this Indenture, or (ii) payments
from the Collateral Agent in excess of the amount required to be paid to the
Trustee pursuant to Article 6, the Trustee shall promptly turn the same
over to the Collateral Agent, in kind, and with such endorsements as may be
required to negotiate the same to the Collateral Agent.

 

(k)        The Trustee and the
Collateral Agent are each Holder’s agents for the purpose of perfecting the
Holders’ security interest in assets which, in accordance with Article 9
of the Uniform Commercial Code, can be perfected only by possession.  Should the Trustee obtain possession of any
such Collateral, upon request from the Co-Issuers, the Trustee shall notify the
Collateral Agent thereof, and, promptly upon the Collateral Agent’s request
therefor, shall deliver such Collateral to the Collateral Agent or otherwise
deal with such Collateral in accordance with the Collateral Agent’s
instructions.

 

(l)         The Collateral Agent shall
have no obligation whatsoever to the Trustee or any of the Holders to assure
that the Collateral exists or is owned by the Co-Issuers and the Guarantors or
is cared for, protected or insured or has been encumbered, or that the Collateral
Agent’s Liens have been properly or sufficiently or lawfully created,
perfected, protected, maintained or enforced or are entitled to any particular
priority, or to determine whether all of the Grantor’s property constituting
collateral intended to be subject to the Lien and security interest of the
Security Documents has been properly and completely listed or delivered, as the
case may be, or the genuineness, validity, marketability or sufficiency thereof
or title thereto, or to exercise at all or in any particular manner or under any
duty of care, disclosure or fidelity, or to continue exercising, any of the
rights, authorities and powers granted or available to the Collateral Agent
pursuant to this Indenture, the Security Agreement, the Pledge Agreement, any
Security Document or the Intercreditor Agreement, it being understood and
agreed that in respect of the Collateral, or any act, omission or event related
thereto, the Collateral Agent may act in any manner it may deem appropriate, in
its sole discretion given the Collateral Agent’s own interest in the
Collateral, and that the Collateral Agent shall have no other duty or liability
whatsoever to the Trustee or any Holder as to any of the foregoing.

 

94

 

(m)       If the Co-Issuers (i) incur
any obligations in respect of Additional First Lien Notes or Lenders Debt at
any time when no intercreditor agreement is in effect or at any time when
Indebtedness constituting First Lien Notes or Lenders Debt entitled to the
benefit of an existing Intercreditor Agreement is concurrently retired, and (ii) deliver
to the Collateral Agent an Officers’ Certificate so stating and requesting the Collateral
Agent to enter into an intercreditor agreement (on substantially the same terms
as the Intercreditor Agreement) in favor of a trustee for the holders of the
Additional First Lien Notes or a designated agent or representative for the
holders of the Lenders Debt so incurred, the Collateral Agent shall (and is
hereby authorized and directed to) enter into such intercreditor agreement (at
the sole expense and cost of the Co-Issuers, including legal fees and expenses
of the Collateral Agent), bind the Holders on the terms set forth therein and
perform and observe its obligations thereunder.

 

(n)        No provision of this
Indenture, the Security Agreement, the Pledge Agreement the Intercreditor
Agreement or any Security Document shall require the Collateral Agent (or the
Trustee) to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder or thereunder or to
take or omit to take any action hereunder or thereunder or take any action at
the request or direction of Holders (or the Trustee in the case of the Collateral
Agent) if it shall have reasonable grounds for believing that repayment of such
funds is not assured to it.

 

(o)        The Collateral Agent (i) shall
not be liable for any action it takes or omits to take in good faith which it
reasonably believes to be authorized or within its rights or powers, or for any
error of judgment made in good faith by a Responsible Officer, unless it is
proved that the Collateral Agent was grossly negligent in ascertaining the
pertinent facts, (ii) shall not be liable for interest on any money
received by it except as the Collateral Agent may agree in writing with the
Co-Issuers (and money held in trust by the Collateral Agent need not be
segregated from other funds except to the extent required by law), and (iii) may
consult with counsel of its selection and the advice or opinion of such counsel
as to matters of law shall be full and complete authorization and protection
from liability in respect of any action taken, omitted or suffered by it in
good faith and in accordance with the advice or opinion of such counsel.  The grant of permissive rights or powers to
the Collateral Agent shall not be construed to impose duties to act.

 

Section 12.11.  Designations.  Except as provided in the next
sentence, for purposes of the provisions hereof and of the Intercreditor
Agreement requiring the Co-Issuers to designate Indebtedness for the purposes
of the terms “Lenders Debt” and “Other Pari Passu Lien Obligations” or any
other such designations hereunder or under the Intercreditor Agreement, any
such designation shall be sufficient if the relevant designation is set forth
in writing, signed on behalf of the Co-Issuers by an Officer and delivered to
the Trustee, the Collateral Agent and the Bank Collateral Agent.  For all purposes hereof and of the Intercreditor
Agreement, the Co-Issuers hereby designate the Obligations pursuant to the
Credit Agreement as “Lenders Debt.”

 

Section 12.12.  Compensation and Indemnification.  The Collateral Agent shall be
entitled to the compensation and indemnification set forth in Section 606
of the Base Indenture (with the references to the Trustee therein being deemed
to refer to the Collateral Agent).

 

95

 

Section 12.13.  Intercreditor Agreement,
Security Agreement, Pledge Agreement and Other Security Documents.  The Trustee and Collateral Agent
is each hereby directed and authorized to execute and deliver the Intercreditor
Agreement, the Security Agreement, the Pledge Agreement and any other Security
Documents in which it is named as a party. 
It is hereby expressly acknowledged and agreed that, in doing so, the
Trustee and the Collateral Agent are not responsible for the terms or contents
of such agreements, or for the validity or enforceability thereof, or the
sufficiency thereof for any purpose. 
Whether or not so expressly stated therein, in entering into, or taking
(or forbearing from) any action under or pursuant to, the Intercreditor
Agreement, the Security Agreement, the Pledge Agreement or any other Security
Documents, the Trustee and Collateral Agent each shall have all of the rights,
immunities, indemnities and other protections granted to it under this
Indenture (in addition to those that may be granted to it under the terms of
such other agreement or agreements).

 

ARTICLE 13

RANKING OF NOTE LIENS

 

Section 13.01.  Relative Rights.  The Intercreditor Agreement
defines the relative rights, as lienholders, of the ABL Secured Parties, the First
Lien Notes Secured Parties and the Notes Secured Parties.  Nothing in this Indenture or the
Intercreditor Agreement shall:

 

(a)        impair, as between the Co-Issuers
and Holders, the obligation of the Co-Issuers, which is absolute and
unconditional, to pay principal of, and interest on, such Notes in accordance
with their terms or to perform any other obligation of the Co-Issuers or any
Guarantor under this Indenture, the Notes, the Guarantees and any Security
Documents;

 

(b)        restrict the right of any
Holder to sue for payments that are then due and owing, in a manner not
inconsistent with the provisions of the Intercreditor Agreement;

 

(c)        prevent the Trustee or any
Holder from exercising against the Co-Issuers or any Guarantor any of its other
available remedies upon a Default or Event of Default (other than its rights as
a secured party, which are subject to the Intercreditor Agreement); or

 

(d)        restrict the right of the
Trustee or any Holder:

 

(i)            to file and prosecute a petition seeking an order
for relief in an involuntary bankruptcy case as to the Co-Issuers or any
Guarantor or otherwise to commence, or seek relief commencing, any Insolvency
or Liquidation Proceeding involuntarily against the Co-Issuers or any
Guarantor;

 

(ii)           to make, support or oppose any request for an order
for dismissal, abstention or conversion in any Insolvency or Liquidation
Proceeding;

 

(iii)          to make, support or oppose, in any Insolvency or
Liquidation Proceeding, any request for an order extending or terminating any
period during which the debtor (or any other Person) has the exclusive right to
propose a plan of reorganization or other dispositive restructuring or
liquidation plan therein;

 

96

 

(iv)          to seek the creation of, or appointment to, any
official committee representing creditors (or certain of the creditors) in any
Insolvency or Liquidation Proceeding and, if appointed, to serve and act as a
member of such committee without being in any respect restricted or bound by,
or liable for, any of the obligations under this Article 13;

 

(v)           to seek or object to the appointment of any
professional person to serve in any capacity in any Insolvency or Liquidation
Proceeding or to support or object to any request for compensation made by any
professional person or others therein;

 

(vi)          to make, support or oppose any request for order
appointing a trustee or examiner in any Insolvency or Liquidation Proceeding;
or

 

(vii)         otherwise to make, support or oppose any request for
relief in any Insolvency or Liquidation Proceeding that it is permitted by law
to make, support or oppose:

 

(A)            as if it were a holder of unsecured claims; or

 

(B)            as to any matter relating to any plan of
reorganization or other restructuring or liquidation plan or as to any matter
relating to the administration of the estate or the disposition of the case or
proceeding (in each case set forth in this clause (vii) except as set
forth in the Intercreditor Agreement).

 

ARTICLE 14

INAPPLICABLE PROVISIONS OF THE BASE INDENTURE

 

Section 14.01.  Redemption of Securities.  The provisions of Article Eleven
of the Base Indenture shall not apply to the Notes.

 

Section 14.02.  Sinking Funds.  The provisions of Article Twelve
of the Base Indenture shall not apply to the Notes.

 

ARTICLE 15

MISCELLANEOUS

 

Section 15.01.  Trust Indenture Act
Controls.  This Supplemental
Indenture is hereby made subject to, and shall be governed by, the provisions
of the Trust Indenture Act required to be part of and to govern indentures
qualified under the Trust Indenture Act. If any provision of this Supplemental
Indenture limits, qualifies or conflicts with another provision hereof or the Base
Indenture that is required to be included in an indenture qualified under the
Trust Indenture Act, the required provision shall control.

 

Section 15.02.  Communication By Holders With
Other Holders.  Holders may
communicate pursuant to Trust Indenture Act § 312(b) with other Holders
with respect to their

 

97

 

rights under this Indenture or the
Notes.  The Co-Issuers, the Trustee, the
Security Registrar and anyone else shall have the protection of Trust Indenture
Act § 312(c).

 

Section 15.03.  Rules By Trustee, Paying
Agent and Security Registrar.  The
Trustee may make reasonable rules for action by or a meeting of
Holders.  The Security Registrar and the
Paying Agent may make reasonable rules for their functions.

 

Section 15.04.  GOVERNING LAW.  THIS SUPPLEMENTAL INDENTURE AND
THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK.

 

Section 15.05.  No Recourse Against
Others.  No director, officer,
employee, incorporator, stockholder or partner of either Co-Issuer, as such,
shall have any liability for any obligations of the Co-Issuers under the Notes,
this Indenture or for any claim based on, in respect of, or by reason of, such
obligations or their creation.  Each
Holder by accepting a Note waives and releases all such liability.  The waiver and release shall be part of the
consideration for the issuance of the Notes. 
The waiver may not be effective to waive liabilities under the federal
securities laws.

 

Section 15.06.  Multiple Originals.  The parties may sign any number of
copies of this Supplemental Indenture. 
Each signed copy shall be an original, but all of them together
represent the same agreement.  One signed
copy is enough to prove this Supplemental Indenture.

 

Section 15.07.  Severability Clause.  In case any provision in this
Indenture shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby and such provision shall be ineffective only to the extent
of such invalidity, illegality or unenforceability.

 

Section 15.08.  Calculations.  Except as otherwise provided in
this Supplemental Indenture, the Co-Issuers shall be responsible for making all
calculations called for under this Indenture and the Notes. The Co-Issuers shall
make all such calculations in good faith and, absent manifest error, their
calculations shall be final and binding on Holders.  The Co-Issuers upon request shall provide a
schedule of their calculations to each of the Trustee and the Conversion Agent,
and each of the Trustee and Conversion Agent is entitled to rely conclusively upon
the accuracy of the Co-Issuers’ calculations without independent verification.
The Trustee shall deliver a copy of such schedule to any Holder upon the
request of such Holder.

 

Section 15.09.  Recitals.  The recitals herein are deemed to
be those of the Co-Issuers and not of the Trustee.

 

Section 15.10.  Ratification of Base Indenture.  The Base Indenture, as
supplemented by this Supplemental Indenture, is in all respects ratified and
confirmed, and this Supplemental Indenture shall be deemed part of the Base
Indenture in the manner and to the extent herein and therein provided.

 

98

 

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

 

	
   

  	
  SEALY
  MATTRESS COMPANY, as Co-Issuer

  
	
   

  	
   

  	
  By:

  	
  *

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Jeffrey
  C. Ackerman

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President & Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SEALY
  CORPORATION, as Co-Issuer

  
	
   

  	
   

  	
  By:

  	
  *

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Jeffrey
  C. Ackerman

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Vice President & Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Guarantors

  
	
   

  	
  ADVANCED
  SLEEP PRODUCTS

  
	
   

  	
  WESTERN
  MATTRESS COMPANY

  
	
   

  	
  SEALY
  COMPONENTS-PADS, INC.

  
	
   

  	
  THE
  OHIO MATTRESS COMPANY LICENSING AND COMPONENTS GROUP

  
	
   

  	
  SEALY
  MATTRESS MANUFACTURING COMPANY, INC.

  
	
   

  	
  SEALY
  MATTRESS CORPORATION

  
	
   

  	
  SEALY-KOREA,
  INC.

  
	
   

  	
  OHIO-SEALY
  MATTRESS MANUFACTURING CO.

  
	
   

  	
  SEALY
  MATTRESS COMPANY OF ILLINOIS

  
	
   

  	
  A.
  BRANDWEIN & CO.

  
	
   

  	
  SEALY
  OF MARYLAND AND VIRGINIA, INC.

  
	
   

  	
  OHIO-SEALY
  MATTRESS MANUFACTURING CO. INC.

  
	
   

  	
  MATTRESS
  HOLDINGS INTERNATIONAL, LLC

  
	
   

  	
  SEALY
  MATTRESS COMPANY OF MICHIGAN, INC.

  
	
   

  	
  SEALY
  OF MINNESOTA, INC.

  
	
   

  	
  SEALY
  MATTRESS COMPANY OF KANSAS CITY, INC.

  
	
   

  	
  SEALY
  MATTRESS COMPANY OF ALBANY, INC.

  
	
   

  	
  SEALY
  TECHNOLOGY LLC

  
	
   

  	
  SEALY
  REAL ESTATE, INC.

  
	
   

  	
  NORTH
  AMERICAN BEDDING COMPANY

  
	
   

  	
  SEALY,
  INC.

  
	
   

  	
  SEALY
  MATTRESS COMPANY OF PUERTO RICO

  
	
   

  	
  SEALY
  MATTRESS COMPANY OF MEMPHIS

  
	
   

  	
  SEALY
  TEXAS MANAGEMENT, INC.

  
	
   

  	
  SEALY MATTRESS CO. OF S.W. VIRGINIA

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  *

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Jeffrey
  C. Ackerman

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President & Chief Financial Officer

  

 

* The signature appearing immediately below shall serve as a signature
at each place indicated with an “*” on this page:

 

	
   

  	
   

  	
  By:

  	
  /s/  Jeffrey C. Ackerman

  
	
   

  	
   

  	
   

  	
  Jeffrey
  C. Ackerman

  

 

 

	
   

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

  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/  Christie Leppert

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Christie
  Leppert

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  

 

 

	
   

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

  as Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/  Christie Leppert

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Christie
  Leppert

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  

 

 

EXHIBIT
A

 

[FORM OF
FACE OF NOTE]

 

[Global
Note Legend]

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION (“DTC”), TO THE CO-ISSUERS OR THEIR AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
AN INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED
TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR
THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS
SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

 

A-1

 

	
  No.               

  	
   

  	
  Initial Principal Amount
  $[              ]

  

 

8% Senior
Secured Third Lien Convertible Note due 2016

 

CUSIP No.:  812139400

ISIN:  US8121394006

 

SEALY MATTRESS COMPANY, an Ohio corporation and
SEALY CORPORATION, a Delaware corporation, jointly and severally, promises to
pay on July 15, 2016 to [CEDE & CO.](1), or its registered
assigns, the Accreted Principal Amount hereof based on the Initial Principal
Amount set forth above [(or such greater or lesser Initial Principal Amount as
shall be specified in the “Schedule of Exchanges of Securities” attached
hereto)](1), together with the Accretion Amount for the Interest Payment Date
falling on July 15, 2016.

 

Except as specified in the Indenture, this Note
shall not bear cash interest.  Instead the
Accreted Principal Amount of this Note shall be increased on each Interest
Payment Date by the Accretion Amount. 
This Note is convertible into shares of common stock of Sealy
Corporation and is subject to repurchase at the option of the Holder hereof in
certain circumstances, in each case, as specified on the reverse side of this
Note and in the Indenture.

 

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

 

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

 

(1) Use bracketed language only if Global Note.

 

A-2

 

Dated:

 

	
   

  	
  SEALY
  MATTRESS COMPANY,

  as Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  SEALY
  CORPORATION,

  as Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  TRUSTEE’S
  CERTIFICATE OF

  AUTHENTICATION

  	
   

  	
   

  

 

This is one of the Notes of
the series designated herein referred to in the within-mentioned Indenture

 

	
  Dated:

  	
   

  	
   

  

 

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

as Trustee

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  

 

A-3

 

[FORM OF
REVERSE SIDE OF NOTE]

 

8%
Senior Secured Third Lien Convertible Note due 2016

 

SEALY MATTRESS COMPANY, an
Ohio corporation (the “Company”)
and SEALY CORPORATION, a Delaware corporation (“Parent” and, together with the Company, the “Co-Issuers”), jointly and severally issued
this Note under an Indenture dated as of July 10, 2009 (herein called the “Base Indenture”), as supplemented by the
Supplemental Indenture dated as of July 10, 2009 (herein called the “Supplemental Indenture” and the Base
Indenture, as supplemented by the Supplemental Indenture, the “Indenture”), between the Co-Issuers and The
Bank of New York Mellon Trust Company, N.A. (herein called the “Trustee”), as Trustee, to which reference
is hereby made for a statement of the respective rights, obligations, duties
and immunities thereunder of the Co-Issuers, the Trustee and the Holders and of
the terms upon which the Notes are, and are to be, authorized and
delivered.  All terms used in this Note
that are defined in the Indenture shall have the meaning assigned to them in
the Indenture.

 

1.          Method
of Payment

 

Holders must surrender Notes
to a Paying Agent to collect payment. 
The Co-Issuers shall make payment in money of the United States of
America that at the time of payment is legal tender for payment of public and
private debts.  The Co-Issuers may make
payment by check payable in such money.

 

2.          Paying
Agent, Security Registrar and Conversion Agent

 

Initially, the Trustee will
act as Paying Agent, Security Registrar and Conversion Agent.  The Co-Issuers may appoint and change any
Paying Agent, Security Registrar or co-registrar or Conversion Agent upon
written notice thereto.  Either Co-Issuer
or any Subsidiary or Affiliate of any of them may act as Paying Agent, Security
Registrar or co-registrar.

 

3.          Indenture

 

The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act. 
The Notes are subject to all such terms, and Holders are referred to the
Indenture and the Trust Indenture Act for a statement of all such terms.  To the extent permitted by applicable law, in
the event of any inconsistency between the terms of this Note and the terms of
the Indenture, the terms of the Indenture shall control.

 

4.          Sinking
Fund and Redemption

 

The Notes are not subject to
the provisions of Articles Eleven or Twelve of the Base Indenture.

 

5.          Repurchase
of Notes at the Option of Holders

 

If there shall occur a
Fundamental Change at any time prior to the Maturity Date, then each Holder
shall have the right, at such Holder’s option, to require the Co-Issuers to
repurchase for cash any or all of such Holder’s Notes in accordance with the
terms of the Indenture.

 

A-4

 

6.          Conversion

 

Subject to and upon
compliance with the provisions of the Indenture, the Holder hereof has the
right, at its option, prior to 5:00 p.m. (New York City time) on the
Business Day immediately preceding the Maturity Date, to convert any Notes or
portion thereof that is equal to the Initial Principal Amount or an integral
multiple thereof, into shares of Common Stock, at the applicable Conversion
Price specified in the Indenture, as adjusted from time to time as provided in
the Indenture.

 

7.          Denominations,
Transfer, Exchange

 

The Notes are in registered
form without coupons, in minimum denominations of $25 and integral multiples of
$25 in excess thereof.  A Holder may
register the transfer or exchange of Notes in accordance with the Indenture.  The Note Registrar may require a Holder,
among other things, to furnish appropriate endorsements and transfer documents
and to pay any taxes and fees required by law or permitted by the Indenture.

 

8.          Persons
Deemed Owners

 

The registered Holder of
this Note may be treated as the owner of it for all purposes.

 

9.          Unclaimed
Money

 

Subject to any applicable
abandoned property law, the Trustee and the Paying Agent shall pay to the
Co-Issuers upon written request any money held by them for the payment of
principal or interest and any shares of Common Stock or other property due in
respect of converted Notes that remains unclaimed for two years, and,
thereafter, Holders entitled to the money or securities must look to the
Co-Issuers for payment as general creditors.

 

10.        Amendment,
Supplement, Waiver

 

Subject to certain
exceptions, the Indenture, the Security Documents, the Intercreditor Agreement
or the Notes may be amended or supplemented with the consent of the Holders of
at least a majority in aggregate Initial Principal Amount of the Outstanding
Notes, and any existing Default or compliance with any provision may be waived
with the consent of the Holders of a majority in aggregate Initial Principal
Amount of the Outstanding Notes.  Without
notice to or the consent of any Holder, the parties thereto may amend or
supplement the Indenture, the Security Documents, the Intercreditor Agreement
or the Notes to, among other things, cure any ambiguity, defect or
inconsistency and make any change that does not adversely affect the rights of
any Holder.

 

11.        Restrictive
Covenants

 

The Indenture contains
certain covenants, including, without limitation, covenants with respect to the
following matters: (i) Incurrence of Indebtedness and Issuance of
Disqualified Stock and Preferred Stock; (ii) transactions with Affiliates;
(iii) Liens; (iv) guarantees of Indebtedness by Restricted
Subsidiaries; (v) dividend and other payment restrictions affecting
Restricted Subsidiaries; and (vi) merger and certain transfers of
assets.  Within 120 days after the 

 

A-5

 

end of each fiscal year, the
Co-Issuers must report to the Trustee on compliance with such limitations in
the manner set forth in the Indenture.

 

12.        Remedies
for Events of Default

 

If an Event of Default, as
defined in the Indenture, occurs and is continuing, the Trustee or the Holders
of at least 30% in Initial Principal Amount of the Outstanding Notes may
declare all the Notes to be immediately due and payable.  If a bankruptcy or insolvency default with
respect to either Co-Issuer or any of its Significant Subsidiaries occurs and
is continuing, the Notes automatically become immediately due and payable.  Holders may not enforce the Indenture, the
Security Documents, the Intercreditor Agreement or the Notes except as provided
in the Indenture.  The Trustee and the
Collateral Agent may require indemnity reasonably satisfactory to it before it
enforces the Indenture or the Notes. 
Subject to certain limitations, Holders of at least a majority in
aggregate Initial Principal Amount of the Outstanding Notes may direct the
Trustee in its exercise of any trust or power.

 

13.        Trustee
Dealings with the Co-Issuers

 

The Trustee or the
Collateral Agent under the Indenture, in its individual or any other capacity,
may become the owner or pledgee of Notes and may make loans to, accept deposits
from, perform services for, and otherwise deal with, the Co-Issuers and their
Affiliates as if it were not the Trustee or the Collateral Agent.

 

14.        Successor
Persons

 

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

 

15.        Guarantees

 

The Co-Issuers’ obligations
under the Notes are fully, irrevocably and unconditionally guaranteed on a
senior secured basis, to the extent set forth in the Indenture, by each of the
Guarantors.

 

16.        Authentication

 

This Note shall not be valid
until an authorized signatory of the Trustee (or an authenticating agent)
manually signs the certificate of authentication on the other side of this
Note.

 

17.        Abbreviations

 

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

 

A-6

 

18.        GOVERNING
LAW

 

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

 

The
Co-Issuers will furnish to any Holder upon written request and without charge a
copy of the Indenture.  Requests may be
made to Sealy Corporation, One Office Parkway, Trinity, North Carolina 27230,
Attention:  General Counsel.

 

A-7

 

SCHEDULE A

 

SCHEDULES OF EXCHANGES OF
SECURITIES

 

SEALY MATTRESS COMPANY

SEALY CORPORATION

 

8% Senior Secured Third Lien
Convertible Notes due 2016

 

The Initial Principal Amount
of this Global Security is [                      ]
DOLLARS ($[                  ]).  The following, exchanges, purchases or
conversion of a part of this Global Security have been made:

 

	
  Date of 

  Exchange

  	
   

  	
  Amount of decrease in

  Initial Principal

  Amount of this Global

  Security

  	
   

  	
  Amount of increase in

  Initial Principal

  Amount of this Global

  Security

  	
   

  	
  Initial Principal Amount

  of this Global Security

  following such decrease

  or increase

  	
   

  	
  Signature of

  authorized signatory

  of Trustee or

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-8

 

EXHIBIT B

 

[FORM OF
CONVERSION NOTICE]

 

TO:                          SEALY
CORPORATION

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee and Conversion
Agent

 

The undersigned registered
owner of this Note hereby irrevocably exercises the option to convert this
Note, or the portion thereof (which is $25 or a multiple thereof) below
designated in accordance with the terms of the Indenture referred to in this
Note, and directs that the shares of Common Stock, cash or a combination of
cash and shares of Common Stock deliverable or payable upon such conversion and
any Notes representing any unconverted principal amount hereof, be issued and
delivered to the registered holder hereof unless a different name has been
indicated below.  Capitalized terms used
herein but not defined shall have the meanings ascribed to such terms in the
Indenture.  If shares or any portion of
this Note not converted are to be issued in the name of a person other than the
undersigned, the undersigned will provide the appropriate information below and
pay all transfer taxes payable with respect thereto.  Any amount required to be paid by the
undersigned on account of interest accompanies this Note.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature(s)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature(s) must be
  guaranteed by an “eligible guarantor institution” meeting the requirements of
  the Security Registrar, which requirements include membership or
  participation in the Security Transfer Agent Medallion Program (“STAMP”) or
  such other “signature guarantee program” as may be determined by the Security
  Registrar in addition to, or in substitution for, STAMP, all in accordance
  with the Securities Exchange Act of 1934, as amended.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature Guarantee

  

 

B-1

 

Fill in the registration of
shares of Common Stock, if any, if to be issued, and Notes if to be delivered,
and the person to whom cash, if any, and payment for fractional shares is to be
made, if to be made, other than to and in the name of the registered holder:

 

	
  Please print name and
  address

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Name) 

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Street Address)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (City, State and Zip Code)

  	
   

  
	
   

  	
   

  
	
  Principal amount to be
  converted

  	
   

  
	
  (if less than all):

  	
   

  
	
  $

  	
   

  
	
  Social Security or Other
  Taxpayer

  	
   

  
	
  Identification Number:

  	
   

  

 

 

NOTICE:  The signature on this Conversion Notice must
correspond with the name as written upon the face of the Notes in every
particular without alteration or enlargement or any change whatever.

 

B-2

 

EXHIBIT C

 

[FORM OF FUNDAMENTAL
CHANGE REPURCHASE NOTICE]

 

TO:                          SEALY MATTRESS
COMPANY

SEALY CORPORATION

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

 

The undersigned registered
owner of this Note hereby irrevocably acknowledges receipt of a notice from
Sealy Corporation and Sealy Mattress Company (the “Co-Issuers”) describing the right of Holders to elect to
require the Co-Issuers to repurchase the Notes and requests and instructs the
Co-Issuers to pay the Accreted Principal Amount of this Note, or the portion
thereof (which is $25 Initial Principal Amount or an integral multiple thereof)
below designated, in accordance with the terms of the Indenture at a repurchase
price in cash equal to 100% of the Accreted Principal Amount of the Notes to be
repurchased, plus interest in cash on the Accreted Principal Amount at the rate
set forth in Section 3.03 of the Indenture from and including the
immediately preceding Interest Payment Date to but excluding the Fundamental
Change Repurchase Date to the registered holder hereof.  Capitalized terms used herein but not defined
shall have the meanings ascribed to such terms in the Indenture.  The Notes shall be repurchased by the
Co-Issuers as of the Fundamental Change Repurchase Date pursuant to the terms
and conditions specified in the Indenture.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature(s):

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

NOTICE:  The above signatures of the holder(s) hereof
must correspond with the name as written upon the face of the Notes in every
particular without alteration or enlargement or any change whatsoever.

 

Notes Certificate Number (if
applicable):

 

Principal amount to be
repurchased (if less than all, must be $25 or whole multiples thereof):

 

Social Security or Other
Taxpayer Identification Number:

 

C-1

 

EXHIBIT D

 

[FORM OF
ASSIGNMENT]

 

For value received                                                   
hereby sell(s) assign(s) and transfer(s) unto                                              
(Please insert social security or other Taxpayer Identification Number of
assignee) the within Notes, and hereby irrevocably constitutes and appoints                                                       
attorney to transfer said Notes on the books of the Co-Issuers, with full power
of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature(s)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature(s) must be
  guaranteed by an “eligible guarantor institution” meeting the requirements of
  the Security Registrar, which requirements include membership or
  participation in the Security Transfer Agent Medallion Program (“STAMP”) or
  such other “signature guarantee program” as may be determined by the Security
  Registrar in addition to, or in substitution for, STAMP, all in accordance
  with the Securities Exchange Act of 1934, as amended.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature Guarantee

  

 

NOTICE:  The signature on this Assignment must
correspond with the name as written upon the face of the Notes in every
particular without alteration or enlargement or any change whatsoever.

 

D-1Exhibit
10.1

 

FOURTEENTH
AMENDMENT

TO

LOAN AND
SECURITY AGREEMENT

 

THIS FOURTEENTH AMENDMENT to Loan and Security Agreement (this “Amendment”)
is entered into as of this 13th day of July, 2009, by and between SILICON
VALLEY BANK (“Bank”) and XPLORE TECHNOLOGIES CORPORATION OF AMERICA, a Delaware
corporation (“Borrower”) whose address is 14000 Summit Drive, Suite 900,
Austin, Texas 78728.

 

RECITALS

 

A.                                    Bank
and Borrower have entered into that certain Loan and Security Agreement dated
as of September 15, 2005, as amended by that certain First Amendment to
Loan and Security Agreement by and between Bank and Borrower dated as of November 28,
2005, that certain Letter amending Loan and Security Agreement by and between
Bank and Borrower dated as of March 30, 2006, that certain Second
Amendment to Loan and Security Agreement by and between Bank and Borrower dated
as of May 15, 2006, that certain Third Amendment to Loan and Security
Agreement by and between Bank and Borrower dated as of February 28, 2007,
that certain Fourth Amendment to Loan and Security Agreement by and between
Bank and Borrower dated as of March 28, 2008, that certain Fifth Amendment
to Loan and Security Agreement by and between Bank and Borrower dated as of May 27,
2008, that certain Sixth Amendment to Loan and Security Agreement by and
between Bank and Borrower dated as of August 6, 2008, that certain Seventh
Amendment to Loan and Security Agreement by and between Bank and Borrower dated
as of August 29, 2008, that certain Eighth Amendment to Loan and Security
Agreement by and between Bank and Borrower dated as of September 30, 2008,
that certain Ninth Amendment to Loan and Security Agreement by and between Bank
and Borrower dated as of March 30, 2009, that certain Tenth Amendment to
Loan and Security Agreement by and between Bank and Borrower dated as of April 10,
2009, that certain Eleventh Amendment to Loan and Security Agreement between
Bank and Borrower dated as of April 24, 2009, that certain Twelfth
Amendment to Loan and Security Agreement between Bank and Borrower dated as of May 29,
2009 and that certain Thirteenth Amendment to Loan and Security Agreement
between Bank and Borrower dated as of June 29, 2009  (as the same may from time to time be further
amended, modified, supplemented or restated, the “Loan Agreement”).

 

B.                                    Bank
has extended credit to Borrower for the purposes permitted in the Loan
Agreement.

 

C.                                    Borrower
has requested that Bank amend the Loan Agreement to extend the maturity date
and reduce the amount of credit.

 

D.                                    Bank
has agreed to so amend certain provisions of the Loan Agreement, but only to
the extent, in accordance with the terms, subject to the conditions and in
reliance upon the representations and warranties set forth below.

 

AGREEMENT

 

NOW,
THEREFORE, in
consideration of the foregoing recitals and other good and valuable
consideration, the receipt and adequacy of which is hereby acknowledged, and
intending to be legally bound, the parties hereto agree as follows:

 

1.                                      Definitions. 
Capitalized terms used but not defined in this Amendment shall have the
meanings given to them in the Loan Agreement.

 

2.                                      Amendments to Loan Agreement.

 

2.1                               Schedule Section 1
(CREDIT LIMIT (Section 1.1)) 
The first three paragraphs of Section 1 of the Schedule to the Loan
Agreement (up until the definition of “Borrowing Base”) are hereby amended and
restated to read as follows:

 

 

“An amount not to exceed (a) the
lesser of (i) $4,000,000 or (ii) the amount available under the
Borrowing Base plus the Non-Formula Amount, minus (b) the amount of all
outstanding Letters of Credit (including drawn but unreimbursed Letters of
Credit), minus (c) any amounts used under the Cash Management Services
Sublimit, and minus (d) the outstanding principal balance of any Loans.”

 

2.2                               Schedule Section 9
(MATURITY DATE (Section 6.1)). 
The Maturity Date in Section 9 of the Schedule to the Loan
Agreement is amended in its entirety and replaced with the following:

 

“August 15, 2009”

 

3.                                      Limitation of Amendments.

 

3.1                               The amendment set forth in Section 2 is effective for the purposes set forth
herein and shall be limited precisely as written and shall not be deemed to (a) be
a consent to any amendment, waiver or modification of any other term or
condition of any Loan Document, or (b) otherwise prejudice any right or
remedy which Bank may now have or may have in the future under or in connection
with any Loan Document.

 

3.2                               This Amendment shall be construed in
connection with and as part of the Loan Documents and all terms, conditions,
representations, warranties, covenants and agreements set forth in the Loan
Documents, except as herein amended, are hereby ratified and confirmed and
shall remain in full force and effect.

 

4.                                      Representations and Warranties. 
To induce Bank to enter into this Amendment, Borrower hereby represents
and warrants to Bank as follows:

 

4.1                               Immediately after giving effect to this
Amendment (a) the representations and warranties contained in the Loan
Documents are true, accurate and complete in all material respects as of the
date hereof (except to the extent such representations and warranties relate to
an earlier date, in which case they are true and correct as of such date), and (b) no
Event of Default has occurred and is continuing;

 

4.2                               Borrower has the power and authority to
execute and deliver this Amendment and to perform its obligations under the
Loan Agreement, as amended by this Amendment;

 

4.3                               The organizational documents of Borrower
delivered to Bank with the Sixth Amendment to Loan and Security Agreement remain
true, accurate and complete and have not been amended, supplemented or restated
and are and continue to be in full force and effect;

 

4.4                               The execution and delivery by Borrower of
this Amendment and the performance by Borrower of its obligations under the
Loan Agreement, as amended by this Amendment, have been duly authorized;

 

4.5                               The execution and delivery by Borrower of
this Amendment and the performance by Borrower of its obligations under the
Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any
law or regulation binding on or affecting Borrower, (b) any contractual
restriction with a Person binding on Borrower, (c) any order, judgment or
decree of any court or other governmental or public body or authority, or
subdivision thereof, binding on Borrower, or (d) the organizational
documents of Borrower;

 

4.6                               The execution and delivery by Borrower of
this Amendment and the performance by Borrower of its obligations under the
Loan Agreement, as amended by this Amendment, do not require any order, consent,
approval, license, authorization or validation of, or filing, recording or
registration with, or exemption by any governmental or public body or
authority, or subdivision thereof, binding on either Borrower, except as
already has been obtained or made; and

 

2

 

4.7                               This Amendment has been duly executed and
delivered by Borrower and is the binding obligation of Borrower, enforceable
against Borrower in accordance with its terms, except as such enforceability
may be limited by bankruptcy, insolvency, reorganization, liquidation,
moratorium or other similar laws of general application and equitable
principles relating to or affecting creditors’ rights.

 

5.                                      Counterparts. 
This Amendment may be executed in any number of counterparts and all of
such counterparts taken together shall be deemed to constitute one and the same
instrument.

 

6.                                      Effectiveness. 
This Amendment shall be deemed effective upon (i) the due execution
and delivery to Bank of this Amendment by each party hereto and (ii) the
payment by Borrower to Bank of an amendment fee in the amount of $3,600.

 

[Signature page follows.]

 

3

 

IN
WITNESS WHEREOF,
the parties hereto have caused this Amendment to be duly executed and delivered
as of the date first written above.

 

	
  BANK

  	
   

  	
  BORROWER

  
	
   

  	
   

  	
   

  
	
  Silicon Valley Bank

  	
   

  	
  XPLORE TECHNOLOGIES

  
	
   

  	
   

  	
  CORPORATION OF AMERICA

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Tom Makowski

  	
   

  	
  By:

  	
  /s/ Michael J. Rapisand

  
	
  Name:

  	
  Tom Makowski

  	
   

  	
  Name:

  	
  Michael J. Rapisand

  
	
  Title:

  	
  Client Relationship
  Manager

  	
   

  	
  Title:

  	
  Chief Financial Officer

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