Document:

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                                                                   EXHIBIT 10.16

                           THE MEN'S WEARHOUSE, INC.

                         2004 LONG-TERM INCENTIVE PLAN
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                               TABLE OF CONTENTS

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                                                              SECTION
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          ARTICLE I -- ESTABLISHMENT, PURPOSE AND DURATION
Establishment...............................................     1.1
Purpose of the Plan.........................................     1.2
Duration of Authority to Make Grants Under the Plan.........     1.3
                      ARTICLE II -- DEFINITIONS
Affiliate...................................................     2.1
Award.......................................................     2.2
Award Agreement.............................................     2.3
Board.......................................................     2.4
Cash-Based Award............................................     2.5
Code........................................................     2.6
Committee...................................................     2.7
Company.....................................................     2.8
Corporate Change............................................     2.9
Covered Employee............................................    2.10
Deferred Stock Unit.........................................    2.11
Deferred Stock Unit Award...................................    2.12
Disability..................................................    2.13
Effective Date..............................................    2.14
Employee....................................................    2.15
Exchange Act................................................    2.16
Fair Market Value...........................................    2.17
Fiscal Year.................................................    2.18
Freestanding SAR............................................    2.19
Holder......................................................    2.20
Incentive Stock Option or ISO...............................    2.21
Mature Shares...............................................    2.22
Nonqualified Stock Option or NQSO...........................    2.23
Option......................................................    2.24
Option Price................................................    2.25
Optionee....................................................    2.26
Option Agreement............................................    2.27
Other Stock-Based Award.....................................    2.28
Parent Corporation..........................................    2.29
Performance-Based Award.....................................    2.30
Performance-Based Compensation..............................    2.31
Performance Goals...........................................    2.32
Performance Period..........................................    2.33
Performance Stock Award.....................................    2.34
Performance Unit Award......................................    2.35
Period of Restriction.......................................    2.36
Plan........................................................    2.37
Restricted Stock............................................    2.38
Restricted Stock Award......................................    2.39
Retirement..................................................    2.40
Stock Appreciation Right or SAR.............................    2.41
Stock.......................................................    2.42
Subsidiary Corporation......................................    2.43
Tandem SAR..................................................    2.44
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                                                              SECTION
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Ten Percent Stockholder.....................................    2.45
Termination of Employment...................................    2.46
TMW Group...................................................    2.47

            ARTICLE III -- ELIGIBILITY AND PARTICIPATION
Eligibility.................................................     3.1
Participation...............................................     3.2

         ARTICLE IV -- GENERAL PROVISIONS RELATING TO AWARDS
Authority to Grant Awards...................................     4.1
Dedicated Shares; Maximum Awards............................     4.2
Non-Transferability.........................................     4.3
Requirements of Law.........................................     4.4
Changes in the Company's Capital Structure..................     4.5
Election Under Section 83(b) of the Code....................     4.6
Forfeiture for Cause........................................     4.7
Forfeiture Events...........................................     4.8

                        ARTICLE V -- OPTIONS
Authority to Grant Options..................................     5.1
Type of Options Available...................................     5.2
Option Agreement............................................     5.3
Option Price................................................     5.4
Duration of Options.........................................     5.5
Amount Exercisable..........................................     5.6
Exercise of Options.........................................     5.7
Transferability of Options..................................     5.8
Notification of Disqualifying Disposition...................     5.9
No Rights as Stockholder....................................    5.10
$100,000 Limitation on Incentive Stock Options..............    5.11

               ARTICLE VI -- STOCK APPRECIATION RIGHTS
Authority to Grant Stock Appreciation Rights Awards.........     6.1
Type of Stock Appreciation Rights Available.................     6.2
Stock Appreciation Right Agreement..........................     6.3
Term of Stock Appreciation Rights...........................     6.4
Exercise of Freestanding SARs...............................     6.5
Exercise of Tandem SARs.....................................     6.6
Payment of SAR Amount.......................................     6.7
Termination of Employment...................................     6.8
Nontransferability of SARs..................................     6.9
No Rights as Stockholder....................................    6.10
Restrictions on Stock Received..............................    6.11

               ARTICLE VII -- RESTRICTED STOCK AWARDS
Restricted Stock Awards.....................................     7.1
Holder's Rights as Stockholder..............................     7.2

             ARTICLE VIII -- DEFERRED STOCK UNIT AWARDS
Authority to Grant Deferred Stock Unit Awards...............     8.1
Deferred Stock Unit Awards..................................     8.2
Deferred Stock Unit Award Agreement.........................     8.3
Payments Under Deferred Stock Unit Awards...................     8.4
Holder's Rights as Stockholder..............................     8.5
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     ARTICLE IX -- PERFORMANCE STOCK AND PERFORMANCE UNIT AWARDS
  Authority to Grant Performance Stock and Performance Unit
     Awards.................................................     9.1
  Rights as Stockholder.....................................     9.2
  Increases Prohibited......................................     9.3

     ARTICLE X -- CASH-BASED AWARDS AND OTHER STOCK-BASED AWARDS
  Authority to Grant Cash-Based Awards......................    10.1
  Authority to Grant Other Stock-Based Awards...............    10.2
  Value of Cash-Based Awards and Other Stock-Based Awards...    10.3
  Payment of Cash-Based Awards and Other Stock-Based
     Awards.................................................    10.4
  Termination of Employment.................................    10.5
  Nontransferability........................................    10.6

                  ARTICLE XI -- SUBSTITUTION AWARDS

                    ARTICLE XII -- ADMINISTRATION
  Awards....................................................    12.1
  Authority of the Committee................................    12.2
  Decisions Binding.........................................    12.3
  No Liability..............................................    12.4

          ARTICLE XIII -- AMENDMENT OR TERMINATION OF PLAN
  Amendment, Modification, Suspension, and Termination......    13.1
  Awards Previously Granted.................................    13.2

                    ARTICLE XIV -- MISCELLANEOUS
  Unfunded Plan/No Establishment of a Trust Fund............    14.1
  No Employment Obligation..................................    14.2
  Tax Withholding...........................................    14.3
  Written Agreement.........................................    14.4
  Indemnification of the Committee..........................    14.5
  Gender and Number.........................................    14.6
  Severability..............................................    14.7
  Headings..................................................    14.8
  Other Compensation Plans..................................    14.9
  Other Awards..............................................   14.10
  Successors................................................   14.11
  Law Limitations/Governmental Approvals....................   14.12
  Delivery of Title.........................................   14.13
  Inability to Obtain Authority.............................   14.14
  Investment Representations................................   14.15
  Persons Residing Outside of the United States.............   14.16
  No Fractional Shares......................................   14.17
  Arbitration of Disputes...................................   14.18
  Governing Law.............................................   14.19
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                                   ARTICLE I

                      ESTABLISHMENT, PURPOSE AND DURATION

     1.1  Establishment.  The Company hereby establishes an incentive
compensation plan, to be known as "The Men's Wearhouse, Inc. 2004 Long-Term
Incentive Plan," as set forth in this document. The Plan permits the grant of
Options (both Incentive Stock Options and Nonqualified Stock Options), Stock
Appreciation Rights, Restricted Stock, Deferred Stock Units, Performance Stock
Awards, Performance Units, Cash-Based Awards, and Other Stock-Based Awards. The
Plan shall become effective and shall be deemed to have been adopted on the date
the Plan is approved by the Board if within one year of that date it shall have
been approved by the holders of at least a majority of the outstanding shares of
voting stock of the Company or if the provisions of the corporate charter,
by-laws or applicable state law prescribes a greater degree of stockholder
approval for this action, the approval by the holders of that percentage, at a
meeting of stockholders (the "Effective Date"), and shall remain in effect as
provided in Section 1.3.

     1.2  Purpose of the Plan.  The purpose of the Plan is to reward certain
corporate officers and other employees of the Company and its Affiliates
(collectively, the "TMW Group") by enabling them to acquire shares of common
stock of the Company and to receive other compensation based on the increase in
value of the common stock of the Company or certain other performance measures.
The Plan is intended to advance the best interests of the Company, its
Affiliates and its stockholders by providing those persons who have substantial
responsibility for the management and growth of the TMW Group with additional
performance incentives and an opportunity to obtain or increase their
proprietary interest in the Company, thereby encouraging them to continue in
their employment with the TMW Group.

     1.3  Duration of Authority to Make Grants Under the Plan.  No Awards may be
granted under the Plan on or after the tenth anniversary of the Effective Date.
The applicable provisions of the Plan will continue in effect with respect to an
Award granted under the Plan for as long as such Award remains outstanding.

                                   ARTICLE II

                                  DEFINITIONS

     The words and phrases defined in this Article shall have the meaning set
out below throughout the Plan, unless the context in which any such word or
phrase appears reasonably requires a broader, narrower or different meaning.

     2.1  "Affiliate" means any corporation, partnership, limited liability
company or association, trust or other entity or organization which, directly or
indirectly, controls, is controlled by, or is under common control with, the
Company. For purposes of the preceding sentence, "control" (including, with
correlative meanings, the terms "controlled by" and "under common control
with"), as used with respect to any entity or organization, shall mean the
possession, directly or indirectly, of the power (a) to vote more than 50
percent (50%) of the securities having ordinary voting power for the election of
directors of the controlled entity or organization, or (ii) to direct or cause
the direction of the management and policies of the controlled entity or
organization, whether through the ownership of voting securities or by contract
or otherwise.

     2.2  "Award" means, individually or collectively, a grant under the Plan of
Incentive Stock Options, Nonqualified Stock Options, Stock Appreciation Rights,
Restricted Stock, Deferred Stock Units, Performance Stock Awards, Performance
Units, Cash-Based Awards, and Other Stock-Based Awards, in each case subject to
the terms and provisions of the Plan.

     2.3  "Award Agreement" means an agreement that sets forth the terms and
conditions applicable to an Award granted under the Plan.

     2.4  "Board" means the board of directors of the Company.

     2.5  "Cash-Based Award" means an Award granted to a Holder pursuant to
Article X.

     2.6  "Code" means the United States Internal Revenue Code of 1986, as
amended from time to time.

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     2.7  "Committee" means a committee of at least two persons, who are members
of the Compensation Committee of the Board and are appointed by the Compensation
Committee of the Board, or, to the extent it chooses to operate as the
Committee, the Compensation Committee of the Board. Each member of the Committee
in respect of his or her participation in any decision with respect to an Award
intended to satisfy the requirements of section 162(m) of the Code must satisfy
the requirements of "outside director" status within the meaning of section
162(m) of the Code; provided, however, that the failure to satisfy such
requirement shall not affect the validity of the action of any committee
otherwise duly authorized and acting in the matter. As to Awards, grants or
other transactions that are authorized by the Committee and that are intended to
be exempt under Rule 16b-3, the requirements of Rule 16b-3(d)(1) with respect to
committee action must also be satisfied.

     2.8  "Company" means The Men's Wearhouse, Inc., a Texas corporation, or any
successor (by reincorporation, merger or otherwise).

     2.9  "Corporate Change" shall have the meaning ascribed to that term in
Section 4.5(c).

     2.10  "Covered Employee" means a Holder who is a "covered employee," as
defined in section 162(m) of the Code and the regulations promulgated
thereunder, or any successor statute.

     2.11  "Deferred Stock Unit" means a unit credited to a Holder's ledger
account maintained by the Company pursuant to Article VIII.

     2.12  "Deferred Stock Unit Award" means an Award granted pursuant to
Article VIII.

     2.13  "Disability" means as determined by the Committee in its discretion
exercised in good faith, a physical or mental condition of the Holder that would
entitle him to payment of disability income payments under the Company's
long-term disability insurance policy or plan for employees as then in effect;
or in the event that the Holder is not covered, for whatever reason under the
Company's long-term disability insurance policy or plan for employees or in the
event the Company does not maintain such a long-term disability insurance
policy, "Disability" means a permanent and total disability as defined in
section 22(e)(3) of the Code. A determination of Disability may be made by a
physician selected or approved by the Committee and, in this respect, the Holder
shall submit to an examination by such physician upon request by the Committee.

     2.14  "Effective Date" shall have the meaning ascribed to that term in
Section 1.1.

     2.15  "Employee" means (a) a person employed by the Company or any
Affiliate as a common law employee or (b) a person who has agreed to become a
common law employee of the Company or any Affiliate and is expected to become
such within six (6) months from the date of a determination made for purposes of
the Plan.

     2.16  "Exchange Act" means the United States Securities Exchange Act of
1934, as amended from time to time.

     2.17  "Fair Market Value" of the Stock as of any particular date means, if
the Stock is traded on a stock exchange, the closing sale price of the Stock on
that date as reported on the principal securities exchange on which the Stock is
traded, if the Stock is traded in the over-the-counter market, the average
between the high bid and low asked price on that date as reported in such
over-the-counter market, provided that (a) if the Stock is not so traded, (b) if
no closing price or bid and asked prices for the stock was so reported on that
date or (c) if, in the discretion of the Committee, another means of determining
the fair market value of a share of Stock at such date shall be necessary or
advisable, the Committee may provide for another means for determining such fair
market value.

     2.18  "Fiscal Year" means the Company's fiscal year.

     2.19  "Freestanding SAR" means a SAR that is granted independently of any
Option pursuant to Article VI.

     2.20  "Holder" means a person who has been granted an Award or any person
who is entitled to receive Shares (and/or cash in the case of a Stock
Appreciation Right) under an Award.

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     2.21  "Incentive Stock Option" or "ISO" means an option which is intended,
as evidenced by its designation, as an incentive stock option within the meaning
of section 422 of the Code, the award of which contains such provisions
(including but not limited to the receipt of stockholder approval of the Plan,
if the Award is made prior to such approval) and is made under such
circumstances and to such persons as may be necessary to comply with that
section.

     2.22  "Mature Shares" means shares of Stock that the Holder has held for at
least six months.

     2.23  "Nonqualified Stock Option" or "NQSO" means an Option that is
designated as a nonqualified stock option. Any Option granted hereunder that is
not designated as an incentive stock option shall be deemed to be designated a
nonqualified stock option under the Plan and not an incentive stock option under
the Code.

     2.24  "Option" means an Incentive Stock Option or a Nonqualified Stock
Option granted pursuant to Article V.

     2.25  "Option Price" shall have the meaning ascribed to that term in
Section 5.4.

     2.26  "Optionee" means a person who is granted an Option under the Plan.

     2.27  "Option Agreement" means a written contract setting forth the terms
and conditions of an Option.

     2.28  "Other Stock-Based Award" means an equity-based or equity-related
Award not otherwise described by the terms and provisions of the Plan that is
granted pursuant to Article X.

     2.29  "Parent Corporation" means any corporation (other than the Company)
in an unbroken chain of corporations ending with the Company if, at the time of
the action or transaction, each of the corporations other than the Company owns
stock possessing 50 percent or more of the total combined voting power of all
classes of stock in one of the other corporations in the chain.

     2.30  "Performance-Based Award" means a Performance Stock Award, a
Performance Unit, or a Cash-Based Award granted to a Holder under which the
fulfillment of performance goals determines the degree of payout or vesting.

     2.31  "Performance-Based Compensation" means compensation under an Award
that satisfies the requirements of section 162(m) of the Code for deductibility
of remuneration paid to Covered Employees.

     2.32  "Performance Goals" means one or more of the criteria described in
Article IX on which the performance goals applicable to an Award are based.

     2.33  "Performance Period" means the period of time during which the
performance goals applicable to a Performance-Based Award must be met.

     2.34  "Performance Stock Award" means an Award granted to a Holder pursuant
to Article IX.

     2.35  "Performance Unit Award" means an Award granted to a Holder pursuant
to Article IX.

     2.36  "Period of Restriction" means the period during which Restricted
Stock is subject to a substantial risk of forfeiture (based on the passage of
time, the achievement of performance goals, or upon the occurrence of other
events as determined by the Committee, in its discretion), as provided in
Article VII.

     2.37  "Plan" means The Men's Wearhouse, Inc. 2004 Long-Term Incentive Plan,
as set forth in this document and as it may be amended from time to time.

     2.38  "Restricted Stock" means shares of restricted Stock issued or granted
under the Plan pursuant to Article VII.

     2.39  "Restricted Stock Award" means an authorization by the Committee to
issue or transfer Restricted Stock to a Holder.

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     2.40  "Retirement" means retirement in accordance with the terms of a
retirement plan that is qualified under section 401(a) of the Code and
maintained by the Company or an Affiliate in which the Holder is a participant.

     2.41  "Stock Appreciation Right" or "SAR" means any stock appreciation
right granted pursuant to Article VI of the Plan.

     2.42  "Stock" means the common stock of the Company, $.01 par value per
share (or such other par value as may be designated by act of the Company's
stockholders).

     2.43  "Subsidiary Corporation" means any corporation (other than the
Company) in an unbroken chain of corporations beginning with the Company if, at
the time of the action or transaction, each of the corporations other than the
last corporation in an unbroken chain owns stock possessing 50 percent or more
of the total combined voting power of all classes of stock in one of the other
corporations in the chain.

     2.44  "Tandem SAR" means a SAR that is granted in connection with a related
Option pursuant to Article VI, the exercise of which shall require forfeiture of
the right to purchase a share of the Stock under the related Option (and when a
share of the Stock is purchased under the Option, the Tandem SAR shall similarly
be canceled).

     2.45  "Ten Percent Stockholder" means an individual who, at the time the
Option is granted, owns stock possessing more than ten percent of the total
combined voting power of all classes of stock or series of the Company or of any
Parent Corporation or Subsidiary Corporation. An individual shall be considered
as owning the stock owned, directly or indirectly, by or for his brothers and
sisters (whether by the whole or half blood), spouse, ancestors and lineal
descendants; and stock owned, directly or indirectly, by or for a corporation,
partnership, estate or trust, shall be considered as being owned proportionately
by or for its stockholders, partners or beneficiaries.

     2.46  "Termination of Employment" means, in the case of an Award other than
an Incentive Stock Option, the termination of the Award recipient's employment
relationship with the Company and all Affiliates. "Termination of Employment"
means, in the case of an Incentive Stock Option, the termination of the
Optionee's employment relationship with all of the Company, any Parent
Corporation, any Subsidiary Corporation and any parent or subsidiary corporation
(within the meaning of section 422(a)(2) of the Code) of any such corporation
that issues or assumes an Incentive Stock Option in a transaction to which
section 424(a) of the Code applies.

     2.47  "TMW Group" shall have the meaning ascribed to that term in Section
1.2.

                                  ARTICLE III

                         ELIGIBILITY AND PARTICIPATION

     3.1  Eligibility.  The persons who are eligible to receive Awards under the
Plan are Employees who have substantial responsibility for or involvement with
the management and growth of one or more members of the TMW Group. However, only
those persons who are, on the dates of grant, key employees of the Company or
any Parent Corporation or Subsidiary Corporation are eligible for grants of
Incentive Stock Options under the Plan.

     3.2  Participation.  Subject to the terms and provisions of the Plan, the
Committee may, from time to time, select from all eligible Employees those
persons to whom Awards shall be granted and shall determine the nature and
amount of each Award.

                                   ARTICLE IV

                     GENERAL PROVISIONS RELATING TO AWARDS

     4.1  Authority to Grant Awards.  The Committee may grant Awards to those
Employees as the Committee shall from time to time determine, under the terms
and conditions of the Plan. Subject only to any

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applicable limitations set out in the Plan, the number of shares of Stock or
other value to be covered by any Award to be granted under the Plan shall be as
determined by the Committee in its sole discretion.

     4.2  Dedicated Shares; Maximum Awards.  The aggregate number of shares of
Stock with respect to which Awards may be granted under the Plan is 600,000. The
aggregate number of shares of Stock with respect to which Incentive Stock
Options may be granted under the Plan is 600,000. The aggregate number of shares
of Stock with respect to which Nonqualified Stock Options may be granted under
the Plan is 600,000. The aggregate number of shares of Stock with respect to
which Stock Appreciation Rights may be granted under the Plan is 600,000. The
aggregate number of shares of Stock with respect to which Restricted Stock
Awards may be granted under the Plan is 300,000. The aggregate number of shares
of Stock with respect to which Performance Stock Awards may be granted under the
Plan is 300,000. The maximum number of shares of Stock with respect to which
Incentive Stock Options may be granted to an Employee during a Fiscal Year is
200,000. The maximum number of shares of Stock with respect to which
Nonqualified Stock Options may be granted to an Employee during a Fiscal Year is
200,000. The maximum number of shares of Stock with respect to which Stock
Appreciation Rights may be granted to an Employee during a Fiscal Year is
200,000. The maximum number of shares of Stock with respect to which Restricted
Stock Awards may be granted to an Employee during a Fiscal Year is 150,000. The
maximum amount with respect to which Deferred Stock Unit Awards may be granted
to an Employee during a Fiscal Year may not exceed in value the Fair Market
Value of 150,000 shares of Stock determined as of the date of grant. The maximum
number of shares of Stock with respect to which Performance Stock Awards may be
granted to an Employee during a Fiscal Year is 150,000. The maximum number of
shares of Stock with respect to which Performance Unit Awards may be granted to
an Employee during a Fiscal Year is 150,000. The maximum number of shares of
Stock with respect to which Other Stock-Based Awards may be granted to an
Employee during a Fiscal Year is 150,000. The maximum aggregate amount with
respect to which Cash-Based Awards may be awarded or credited to an Employee
during a Fiscal Year may not exceed in value $3,000,000 determined as of the
date of grant. The maximum aggregate amount with respect to which Performance
Unit Awards may be awarded or credited to an Employee during a Fiscal Year may
not exceed in value $3,000,000 determined as of the date of grant. Each of the
foregoing numerical limits stated in this Section 4.2 shall be subject to
adjustment in accordance with the provisions of Section 4.5. The number of
shares of Stock stated in this Section 4.2 shall also be increased by such
number of shares of Stock as become subject to substitute Awards granted
pursuant to Article XI; provided, however, that such increase shall be
conditioned upon the approval of the stockholders of the Company to the extent
stockholder approval is required by law or applicable stock exchange rules. If
any outstanding Award expires or terminates for any reason, is settled in cash
in lieu of shares of Stock or any Award is surrendered, the shares of Stock
allocable to the unexercised portion of that Award may again be subject to an
Award granted under the Plan. If shares of Stock are withheld from payment of an
Award to satisfy tax obligations with respect to the Award, such shares of Stock
will not count against the aggregate number of shares of Stock with respect to
which Awards may be granted under the Plan. If a Stock Appreciation Right is
exercised, only the number of shares of Stock actually issued shall be charged
against the maximum number of shares of Stock that may be delivered pursuant to
Awards under the Plan.

     4.3  Non-Transferability.  Except as specified in the applicable Award
Agreements or in domestic relations court orders, Awards shall not be
transferable by the Holder other than by will or under the laws of descent and
distribution, and shall be exercisable, during the Holder's lifetime, only by
him or her. In the discretion of the Committee, any attempt to transfer an Award
other than under the terms of the Plan and the applicable Award Agreement may
terminate the Award.

     4.4  Requirements of Law.  The Company shall not be required to sell or
issue any shares of Stock under any Award if issuing those shares of Stock would
constitute or result in a violation by the Holder or the Company of any
provision of any law, statute or regulation of any governmental authority.
Specifically, in connection with any applicable statute or regulation relating
to the registration of securities, upon exercise of any Option or pursuant to
any other Award, the Company shall not be required to issue any shares of Stock
unless the Committee has received evidence satisfactory to it to the effect that
the Holder will not transfer the shares of Stock except in accordance with
applicable law, including receipt of an opinion of counsel satisfactory to the
Company to the effect that any proposed transfer complies with applicable law.
The

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determination by the Committee on this matter shall be final, binding and
conclusive. The Company may, but shall in no event be obligated to, register any
shares of Stock covered by the Plan pursuant to applicable securities laws of
any country or any political subdivision. In the event the shares of Stock
issuable on exercise of an Option or pursuant to any other Award are not
registered, the Company may imprint on the certificate evidencing the shares of
Stock any legend that counsel for the Company considers necessary or advisable
to comply with applicable law, or, should the shares of Stock be represented by
book or electronic entry rather than a certificate, the Company may take such
steps to restrict transfer of the shares of Stock as counsel for the Company
considers necessary or advisable to comply with applicable law. The Company
shall not be obligated to take any other affirmative action in order to cause or
enable the exercise of an Option or any other Award, or the issuance of shares
of Stock pursuant thereto, to comply with any law or regulation of any
governmental authority.

     4.5  Changes in the Company's Capital Structure.

     (a) The existence of outstanding Awards shall not affect in any way the
right or power of the Company or its stockholders to make or authorize any or
all adjustments, recapitalizations, reorganizations or other changes in the
Company's capital structure or its business, any merger or consolidation of the
Company, any issue of bonds, debentures, preferred or prior preference shares
ahead of or affecting the Stock or Stock rights, the dissolution or liquidation
of the Company, any sale or transfer of all or any part of its assets or
business or any other corporate act or proceeding, whether of a similar
character or otherwise.

     (b) If the Company shall effect a subdivision or consolidation of Stock or
other capital readjustment, the payment of a Stock dividend, or other increase
or reduction of the number of shares of Stock outstanding, without receiving
compensation therefor in money, services or property, then (1) the number, class
or series and per share price of Stock subject to outstanding Options or other
Awards under the Plan shall be appropriately adjusted in such a manner as to
entitle a Holder to receive upon exercise of an Option or other Award, for the
same aggregate cash consideration, the equivalent total number and class or
series of Stock the Holder would have received had the Holder exercised his or
her Option or other Award in full immediately prior to the event requiring the
adjustment, and (2) the number and class or series of Stock then reserved to be
issued under the Plan shall be adjusted by substituting for the total number and
class or series of Stock then reserved, that number and class or series of Stock
that would have been received by the owner of an equal number of outstanding
shares of Stock of each class or series of Stock as the result of the event
requiring the adjustment.

     (c) If while unexercised Options or other Awards remain outstanding under
the Plan (1) the Company shall not be the surviving entity in any merger,
consolidation or other reorganization (or survives only as a subsidiary of an
entity other than an entity that was wholly-owned by the Company immediately
prior to such merger, consolidation or other reorganization), (2) the Company
sells, leases or exchanges or agrees to sell, lease or exchange all or
substantially all of its assets to any other person or entity (other than an
entity wholly-owned by the Company), (3) the Company is to be dissolved or (4)
the Company is a party to any other corporate transaction (as defined under
section 424(a) of the Code and applicable Department of Treasury regulations)
that is not described in clauses (1), (2) or (3) of this sentence (each such
event is referred to herein as a "Corporate Change"), then, except as otherwise
provided in an Award Agreement (provided that such exceptions shall not apply in
the case of a reincorporation merger), or as a result of the Committee's
effectuation of one or more of the alternatives described below, there shall be
no acceleration of the time at which any Award then outstanding may be
exercised, and no later than ten days after the approval by the stockholders of
the Company of such Corporate Change, the Committee, acting in its sole and
absolute discretion without the consent or approval of any Holder, shall act to
effect one or more of the following alternatives, which may vary among
individual Holders and which may vary among Awards held by any individual Holder
(provided that, with respect to a reincorporation merger in which Holders of the
Company's ordinary shares will receive one ordinary share of the successor
corporation for each ordinary share of the Company, none of such alternatives
shall apply and, without Committee action, each Award shall automati-

                                       6
<PAGE>

cally convert into a similar award of the successor corporation exercisable for
the same number of ordinary shares of the successor as the Award was exercisable
for ordinary shares of Stock of the Company):

          (1) accelerate the time at which some or all of the Awards then
     outstanding may be exercised so that such Awards may be exercised in full
     for a limited period of time on or before a specified date (before or after
     such Corporate Change) fixed by the Committee, after which specified date
     all such Awards that remain unexercised and all rights of Holders
     thereunder shall terminate;

          (2) require the mandatory surrender to the Company by all or selected
     Holders of some or all of the then outstanding Awards held by such Holders
     (irrespective of whether such Awards are then exercisable under the
     provisions of the Plan or the applicable Award Agreement evidencing such
     Award) as of a date, before or after such Corporate Change, specified by
     the Committee, in which event the Committee shall thereupon cancel such
     Award and the Company shall pay to each such Holder an amount of cash per
     share equal to the excess, if any, of the per share price offered to
     stockholders of the Company in connection with such Corporate Change over
     the exercise prices under such Award for such shares;

          (3) with respect to all or selected Holders, have some or all of their
     then outstanding Awards (whether vested or unvested) assumed or have a new
     award of a similar nature substituted for some or all of their then
     outstanding Awards under the Plan (whether vested or unvested) by an entity
     which is a party to the transaction resulting in such Corporate Change and
     which is then employing such Holder or which is affiliated or associated
     with such Holder in the same or a substantially similar manner as the
     Company prior to the Corporate Change, or a parent or subsidiary of such
     entity, provided that (A) such assumption or substitution is on a basis
     where the excess of the aggregate fair market value of the Stock subject to
     the Award immediately after the assumption or substitution over the
     aggregate exercise price of such Stock is equal to the excess of the
     aggregate fair market value of all Stock subject to the Award immediately
     before such assumption or substitution over the aggregate exercise price of
     such Stock, and (B) the assumed rights under such existing Award or the
     substituted rights under such new Award as the case may be will have the
     same terms and conditions as the rights under the existing Award assumed or
     substituted for, as the case may be;

          (4) provide that the number and class or series of Stock covered by an
     Award (whether vested or unvested) theretofore granted shall be adjusted so
     that such Award when exercised shall thereafter cover the number and class
     or series of Stock or other securities or property (including, without
     limitation, cash) to which the Holder would have been entitled pursuant to
     the terms of the agreement or plan relating to such Corporate Change if,
     immediately prior to such Corporate Change, the Holder had been the holder
     of record of the number of shares of Stock then covered by such Award; or

          (5) make such adjustments to Awards then outstanding as the Committee
     deems appropriate to reflect such Corporate Change (provided, however, that
     the Committee may determine in its sole and absolute discretion that no
     such adjustment is necessary).

     In effecting one or more of alternatives in (3), (4) or (5) immediately
above, and except as otherwise may be provided in an Award Agreement, the
Committee, in its sole and absolute discretion and without the consent or
approval of any Holder, may accelerate the time at which some or all Awards then
outstanding may be exercised.

     (d) In the event of changes in the outstanding Stock by reason of
recapitalizations, reorganizations, mergers, consolidations, combinations,
exchanges or other relevant changes in capitalization occurring after the date
of the grant of any Award and not otherwise provided for by this Section 4.5,
any outstanding Award and any Award Agreements evidencing such Award shall be
subject to adjustment by the Committee in its sole and absolute discretion as to
the number and price of Stock or other consideration subject to such Award. In
the event of any such change in the outstanding Stock, the aggregate number of
shares of Stock available under the Plan may be appropriately adjusted by the
Committee, whose determination shall be conclusive.

     (e) After a merger of one or more corporations into the Company or after a
consolidation of the Company and one or more corporations in which the Company
shall be the surviving corporation, each Holder

                                       7
<PAGE>

shall be entitled to have his Restricted Stock appropriately adjusted based on
the manner in which the shares of Stock were adjusted under the terms of the
agreement of merger or consolidation.

     (f) The issuance by the Company of stock of any class or series, or
securities convertible into, or exchangeable for, stock of any class or series,
for cash or property, or for labor or services either upon direct sale or upon
the exercise of rights or warrants to subscribe for them, or upon conversion or
exchange of stock or obligations of the Company convertible into, or
exchangeable for, stock or other securities, shall not affect, and no adjustment
by reason of such issuance shall be made with respect to, the number, class or
series, or price of shares of Stock then subject to outstanding Options or other
Awards.

     4.6  Election Under Section 83(b) of the Code.  No Holder shall exercise
the election permitted under section 83(b) of the Code with respect to any Award
without the written approval of the Chief Financial Officer of the Company. Any
Holder who makes an election under section 83(b) of the Code with respect to any
Award without the written approval of the Chief Financial Officer of the Company
may, in the discretion of the Committee, forfeit any or all Awards granted to
him or her under the Plan.

     4.7  Forfeiture for Cause.  Notwithstanding any other provision of the Plan
or an Award Agreement, if the Committee finds by a majority vote that a Holder,
before or after his Termination of Employment (a) committed a fraud,
embezzlement, theft, felony or an act of dishonesty in the course of his
employment by the Company or an Affiliate which conduct damaged the Company or
an Affiliate or (b) disclosed trade secrets of the Company or an Affiliate, then
as of the date the Committee makes its finding, any Awards awarded to the Holder
that have not been exercised by the Holder (including all Awards that have not
yet vested) will be forfeited to the Company. The findings and decision of the
Committee with respect to such matter, including those regarding the acts of the
Holder and the damage done to the Company, will be final for all purposes. No
decision of the Committee, however, will affect the finality of the discharge of
the individual by the Company or an Affiliate.

     4.8  Forfeiture Events.  The Committee may specify in an Award Agreement
that the Holder's rights, payments, and benefits with respect to an Award shall
be subject to reduction, cancellation, forfeiture, or recoupment upon the
occurrence of certain specified events, in addition to any otherwise applicable
vesting or performance conditions of an Award. Such events may include, but
shall not be limited to, Termination of Employment for cause, termination of the
Holder's provision of services to the Company or its Affiliates, violation of
material policies of the TMW Group, breach of noncompetition, confidentiality,
or other restrictive covenants that may apply to the Holder, or other conduct by
the Holder that is detrimental to the business or reputation of the TMW Group.

                                   ARTICLE V

                                    OPTIONS

     5.1  Authority to Grant Options.  Subject to the terms and provisions of
the Plan, the Committee, at any time, and from time to time, may grant Options
under the Plan to eligible persons in such number and upon such terms as the
Committee shall determine.

     5.2  Type of Options Available.  Options granted under the Plan may be
Incentive Stock Options intended to satisfy the requirements of section 422 of
the Code or Nonqualified Stock Options that are not intended to satisfy the
requirements of section 422 of the Code.

     5.3  Option Agreement.  Each Option grant under the Plan shall be evidenced
by an Option Agreement that shall specify (a) whether the Option is intended to
be an ISO or a NQSO, (b) the Option Price, (c) the duration of the Option, (d)
the number of shares of Stock to which the Option pertains, (e) the exercise
restrictions applicable to the Option, and (f) such other provisions as the
Committee shall determine that are not inconsistent with the terms and
provisions of the Plan. Notwithstanding the designation of an Option as an ISO
in the applicable Option Agreement, to the extent the limitations of section 422
of the Code are exceeded with respect to the Option, the portion of the Option
in excess of the limitation shall be treated as a NQSO.

                                       8
<PAGE>

     5.4  Option Price.  The price at which shares of Stock may be purchased
under an Option (the "Option Price") shall not be less than 100 percent (100%)
of the Fair Market Value of the shares of Stock on the date the Option is
granted. However, in the case of a Ten Percent Stockholder, the Option Price for
an Incentive Stock Option shall not be less than 110 percent (110%) of the Fair
Market Value of the shares of Stock on the date the Incentive Stock Option is
granted. Subject to the limitations set forth in the preceding sentences of this
Section 5.4, the Committee shall determine the Option Price for each grant of an
Option under the Plan.

     5.5  Duration of Options.  An Option shall not be exercisable after the
earlier of (i) the general term of the Option specified in Section 5.5(a), or
(ii) the period of time specified herein that follows the Optionee's death,
Disability, Retirement or other Termination of Employment. Unless the Optionee's
applicable Option Agreement specifies otherwise, an Option shall not continue to
vest after the Optionee's Termination of Employment for any reason other than
the death or Disability of the Optionee.

     (a) General Term of Option.  Unless the Option Agreement specifies a
shorter general term, an Option shall expire on the tenth anniversary of the
date the Option is granted. Notwithstanding the foregoing, unless the Option
Agreement specifies a shorter term, in the case of an Incentive Stock Option
granted to a Ten Percent Stockholder, the Option shall expire on the fifth
anniversary of the date the Option is granted.

     (b) Early Termination of Option Due to Termination of Employment Other Than
for Death, Disability or Retirement.  Except as may be otherwise expressly
provided by the Committee in an Option Agreement, an Option shall terminate on
the earlier of (1) the date of the expiration of the general term of the Option
or (2) the date that is one day less than one month after the date of the
Optionee's Termination of Employment, whether with or without cause, for any
reason other than the death, Disability or Retirement of the Optionee, during
which period the Optionee shall be entitled to exercise the Option in respect of
the number of shares of Stock that the Optionee would have been entitled to
purchase had the Optionee exercised the Option on the date of such Termination
of Employment. The Committee shall determine whether an authorized leave of
absence, absence on military or government service, or any other absence from
service shall constitute a termination of the employment relationship between
the Optionee and the Company and all Affiliates. Notwithstanding the foregoing,
in the case of an Incentive Stock Option, if an Optionee has an authorized leave
of absence from employment with the Company, a Parent Corporation or a
Subsidiary Corporation that exceeds 90 days and the Optionee's right to
reemployment is not guaranteed by either statute or contract, the Optionee will
be deemed to incur a Termination of Employment on the 91st day of such leave.

     (c) Early Termination of Option Due to Death.  Unless the Committee
specifies otherwise in the applicable Option Agreement, in the event of the
Optionee's Termination of Employment due to death before the date of expiration
of the general term of the Option, the Optionee's Option shall terminate on the
earlier of the date of expiration of the general term of the Option or the first
anniversary of the date of the Optionee's death, during which period the
Optionee's executors or administrators or such persons to whom such Options were
transferred by will or by the laws of descent and distribution, shall be
entitled to exercise the Option in respect of the number of shares of Stock that
the Optionee would have been entitled to purchase had the Optionee exercised the
Option on the date of his death.

     (d) Early Termination of Option Due to Disability.  Unless the Committee
specifies otherwise in the applicable Option Agreement, in the event of the
Termination of Employment due to Disability before the date of the expiration of
the general term of the Option, the Optionee's Option shall terminate on the
earlier of the expiration of the general term of the Option or the first
anniversary of the date of the Termination of Employment due to Disability,
during which period the Optionee shall be entitled to exercise the Option in
respect of the number of shares of Stock that the Optionee would have been
entitled to purchase had the Optionee exercised the Option on the date of such
Termination of Employment.

     (e) Early Termination of Option Due to Retirement.  Unless the Committee
specifies otherwise in the applicable Option Agreement, in the event of the
Optionee's Termination of Employment due to Retirement before the date of the
expiration of the general term of the Option, the Optionee's Option shall
terminate on the earlier of the expiration of the general term of the Option or
the first anniversary of the date of the Termination of Employment due to
Retirement, during which period the Optionee shall be entitled to exercise

                                       9
<PAGE>

the Option in respect of the number of shares of Stock that the Optionee would
have been entitled to purchase had the Optionee exercised the Option on the date
of such Termination of Employment.

     After the death of the Optionee, the Optionee's executors, administrators
or any person or persons to whom the Optionee's Option may be transferred by
will or by the laws of descent and distribution, shall have the right, at any
time prior to the termination of the Option to exercise the Option, in respect
to the number of all of the remaining unexercised and unexpired shares of Stock
subject to the Option.

     5.6  Amount Exercisable.  Each Option may be exercised at the time, in the
manner and subject to the conditions the Committee specifies in the Option
Agreement in its sole discretion. Unless the Committee specifies otherwise in an
applicable Option Agreement, an Option Agreement shall set forth the following
terms regarding the exercise of the Option covered by the Option Agreement:

          (a) No Option granted under the Plan may be exercised until an
     Optionee has completed one year of continuous employment with the Company
     or any subsidiary of the Company following the date of grant;

          (b) Beginning on the day after the first anniversary of the date of
     grant, an Option may be exercised up to 1/3 of the shares subject to the
     Option;

          (c) After the expiration of each succeeding anniversary date of the
     date of grant, the Option may be exercised up to an additional 1/3 of the
     shares initially subject to the Option, so that after the expiration of the
     third anniversary of the date of grant, the Option shall be exercisable in
     full;

          (d) To the extent not exercised, installments shall be cumulative and
     may be exercised in whole or in part until the Option expires on the tenth
     anniversary of the date of grant.

     However, the Committee, in its discretion, may change the terms of exercise
so that any Option may be exercised so long as it is valid and outstanding from
time to time in part or as a whole in such manner and subject to such conditions
as the Committee may set. In addition, the Committee, in its discretion, may
accelerate the time in which any outstanding Option may be exercised. However,
in no event shall any Option be exercisable on or after the tenth anniversary of
the date of the grant of the Option.

     5.7  EXERCISE OF OPTIONS.

     (a) General Method of Exercise.  Subject to the terms and provisions of the
Plan and an Optionee's Option Agreement, Options may be exercised in whole or in
part from time to time by the delivery of written notice in the manner
designated by the Committee stating (1) that the Optionee wishes to exercise
such option on the date such notice is so delivered, (2) the number of shares of
Stock with respect to which the Option is to be exercised and (3) the address to
which the certificate representing such shares of Stock should be mailed. Except
in the case of exercise by a third party broker as provided below, in order for
the notice to be effective the notice must be accompanied by payment of the
Option Price and any applicable tax withholding amounts which must be made at
the time of exercise by any combination of the following: (a) cash, certified
check, bank draft or postal or express money order for an amount equal to the
Option Price under the Option, (b) Mature Shares with a Fair Market Value on the
date of exercise equal to the Option Price under the Option (if approved in
advance by the Committee or an executive officer of the Company), (c) an
election to make a cashless exercise through a registered broker-dealer (if
approved in advance by the Committee or an executive officer of the Company) or
(d) except as specified below, any other form of payment which is acceptable to
the Committee. If Mature Shares are used for payment by the Optionee, the
aggregate Fair Market Value of the shares of Stock tendered must be equal to or
less than the aggregate Option Price of the shares of Stock being purchased upon
exercise of the Option, and any difference must be paid by cash, certified
check, bank draft or postal or express money order payable to the order of the
Company.

     If, at the time of receipt by the Company or its delegate of such written
notice, (i) the Company has unrestricted surplus in an amount not less than the
Option Price of such shares of Stock, (ii) all accrued cumulative preferential
dividends and other current preferential dividends on all outstanding shares of
preferred stock of the Company have been fully paid, (iii) the acquisition by
the Company of its own shares of Stock for the purpose of enabling such Optionee
to exercise such Option is otherwise permitted by applicable

                                       10
<PAGE>

law, does not require any vote or consent of any stockholder of the Company and
does not violate the terms of any agreement to which the Company is a party or
by which it is bound, and (iv) there shall have been adopted, and there shall be
in full force and effect, a resolution of the Board authorizing the acquisition
by the Company of its own shares of stock for such purpose, then such Optionee
may deliver to the Company, in payment of the Option Price of the shares of
Stock with respect to which such Option is exercised, (x) certificates
registered in the name of such Optionee that represent a number of shares of
stock legally and beneficially owned by such Optionee (free of all liens, claims
and encumbrances of every kind) and having a Fair Market Value on the date of
receipt by the Company or its delegate of such written notice that is not
greater than the Option Price of the shares of Stock with respect to which such
Option is to be exercised, such certificates to be accompanied by stock powers
duly endorsed in blank by the record holder of the shares of Stock represented
by such certificates, with the signature of such record holder guaranteed by a
national banking association, and (y) if the Option Price of the shares of Stock
with respect to which such Option is to be exercised exceeds such Fair Market
Value, a cashier's check drawn on a national banking association and payable to
the order of the Company, in an amount, in United States dollars, equal to the
amount of such excess. Notwithstanding the provisions of the immediately
preceding sentence, the Committee, in its sole discretion, may refuse to accept
shares of Stock in payment of the Option Price of the shares of Stock with
respect to which such Option is to be exercised and, in that event, any
certificates representing shares of Stock that were received by the Company or
its delegate with such written notice shall be returned to such Optionee,
together with notice by the Company or its delegate to such Optionee of the
refusal of the Committee to accept such shares of Stock. If, at the expiration
of seven business days after the delivery to such Optionee of such written
notice from the Company or its delegate, such Optionee shall not have delivered
to the Company or its delegate a cashier's check drawn on a national banking
association and payable to the order of the Company in an amount, in United
States dollars, equal to the Option Price of the shares of Stock with respect to
which such Option is to be exercised, such written notice from the Optionee to
the Company or its delegate shall be ineffective to exercise such Option.

     Whenever an Option is exercised by exchanging shares of Stock owned by the
Optionee, the Optionee shall deliver to the Company or its delegate certificates
registered in the name of the Optionee representing a number of shares of Stock
legally and beneficially owned by the Optionee, free of all liens, claims, and
encumbrances of every kind, accompanied by stock powers duly endorsed in blank
by the record holder of the shares represented by the certificates, (with
signature guaranteed by a commercial bank or trust company or by a brokerage
firm having a membership on a registered national stock exchange). The delivery
of certificates upon the exercise of Option is subject to the condition that the
person exercising the Option provide the Company with the information the
Company might reasonably request pertaining to exercise, sale or other
disposition of an Option.

     (b) Issuance of Shares.  Subject to Section 4.4 and Section 5.7(c), as
promptly as practicable after receipt of written notification and payment, in
the form required by Section 5.7(a), of an amount of money necessary to satisfy
any withholding tax liability that may result from the exercise of such Option,
the Company shall deliver to the Optionee certificates for the number of shares
with respect to which the Option has been exercised, issued in the Optionee's
name. Delivery of the shares shall be deemed effected for all purposes when a
stock transfer agent of the Company shall have deposited the certificates in the
United States mail, addressed to the Optionee, at the address specified by the
Optionee.

     (c) Exercise Through Third-Party Broker.  The Committee may permit an
Optionee to elect to pay the Option Price and any applicable tax withholding
resulting from such exercise by authorizing a third-party broker to sell all or
a portion of the shares of Stock acquired upon exercise of the Option and remit
to the Company a sufficient portion of the sale proceeds to pay the Option Price
and any applicable tax withholding resulting from such exercise.

     (d) Limitations on Exercise Alternatives.  The Committee shall not permit
an Optionee to pay such Optionee's Option Price upon the exercise of an Option
by having the Company reduce the number of shares of Stock that will be
delivered pursuant to the exercise of the Option. In addition, the Committee
shall not permit an Optionee to pay such Optionee's Option Price upon the
exercise of an Option by using shares of Stock other than Mature Shares. An
Option may not be exercised for a fraction of a share of Stock.

                                       11
<PAGE>

     5.8  Transferability of Options.

     (a) Incentive Stock Options.  No ISO granted under the Plan may be sold,
transferred, pledged, assigned or otherwise alienated or hypothecated, other
than by will or by the laws of descent and distribution. Further, all ISOs
granted to an Optionee under the Plan shall be exercisable during his or her
lifetime only by the Optionee, and after that time, by the Optionee's heirs or
estate.

     (b) Nonqualified Stock Options.  Except as otherwise provided in an
Optionee's Option Agreement, no NQSO granted under the Plan may be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated, other
than by will or by the laws of descent and distribution. Further, except as
otherwise provided in an Optionee's Option Agreement, all NQSOs granted to an
Optionee under the Plan shall be exercisable during his or her lifetime only by
such Optionee.

     Any attempted assignment of an Option in violation of this Section 5.8
shall be null and void.

     5.9  Notification of Disqualifying Disposition.  If any Optionee shall make
any disposition of shares of Stock issued pursuant to the exercise of an ISO
under the circumstances described in section 421(b) of the Code (relating to
certain disqualifying dispositions), such Optionee shall notify the Company of
such disposition within ten (10) days thereof.

     5.10  No Rights as Stockholder.  An Optionee shall not have any rights as a
stockholder with respect to Stock covered by an Option until the date a stock
certificate for such Stock is issued by the Company; and, except as otherwise
provided in Section 4.5, no adjustment for dividends, or otherwise, shall be
made if the record date therefor is prior to the date of issuance of such
certificate.

     5.11  $100,000 Limitation on Incentive Stock Options.  To the extent that
the aggregate Fair Market Value of Stock with respect to which Incentive Stock
Options first become exercisable by a Holder in any calendar year exceeds
$100,000, taking into account both shares of Stock subject to Incentive Stock
Options under the Plan and Stock subject to incentive stock options under all
other plans of the Company, such Options shall be treated as Nonqualified Stock
Options. For this purpose, the "Fair Market Value" of the Stock subject to
Options shall be determined as of the date the Options were awarded. In reducing
the number of Options treated as Incentive Stock Options to meet the $100,000
limit, the most recently granted Options shall be reduced first. To the extent a
reduction of simultaneously granted Options is necessary to meet the $100,000
limit, the Committee may, in the manner and to the extent permitted by law,
designate which shares of Stock are to be treated as shares acquired pursuant to
the exercise of an Incentive Stock Option.

                                   ARTICLE VI

                           STOCK APPRECIATION RIGHTS

     6.1  Authority to Grant Stock Appreciation Rights Awards.  Subject to the
terms and provisions of the Plan, the Committee, at any time, and from time to
time, may grant Stock Appreciation Rights under the Plan to eligible persons in
such number and upon such terms as the Committee shall determine. Subject to the
terms and conditions of the Plan, the Committee shall have complete discretion
in determining the number of SARs granted to each Employee and, consistent with
the provisions of the Plan, in determining the terms and conditions pertaining
to such SARs.

     6.2  Type of Stock Appreciation Rights Available.  SARs granted under the
Plan may be Freestanding SARs, Tandem SARs or any combination of these forms of
SARs. Subject to the terms and conditions of the Plan, a SAR granted under the
Plan shall confer on the recipient a right to receive, upon exercise thereof, a
cash amount equal to the excess of (a) the Fair Market Value of one share of the
Stock on the date of exercise over (b) the grant price of the SAR, which shall
not be less than 100 percent of the Fair Market Value of one share of the Stock
on the date of grant of the SAR and in no event less than par value of one share
of the Stock. The grant price of a Freestanding SAR shall not be less than the
Fair Market Value of a share of the Stock on the date of grant of the SAR. The
grant price of a Tandem SAR shall equal the Option Price of the Option which is
related to the Tandem SAR.

                                       12
<PAGE>

     6.3  Stock Appreciation Right Agreement.  Each Award of SARs granted under
the Plan shall be evidenced by an Award Agreement that shall specify (a) whether
the SAR is intended to be a Freestanding SAR or a Tandem SAR, (b) the grant
price of the SAR, (c) the term of the SAR, (d) the vesting and termination
provisions and (e) such other provisions as the Committee shall determine that
are not inconsistent with the terms and provisions of the Plan. The Committee
may impose such additional conditions or restrictions on the exercise of any SAR
as it may deem appropriate.

     6.4  Term of Stock Appreciation Rights.  The term of a SAR granted under
the Plan shall be determined by the Committee, in its sole discretion; provided
that no SAR shall be exercisable on or after the tenth anniversary date of its
grant.

     6.5  Exercise of Freestanding SARs.  Freestanding SARs may be exercised
upon whatever terms and conditions the Committee, in its sole discretion,
imposes.

     6.6  Exercise of Tandem SARs.

     (a) Tandem SARs may be exercised for all or part of the shares of Stock
subject to the related Option upon the surrender of the right to exercise the
equivalent portion of the related Option. A Tandem SAR may be exercised only
with respect to the shares of Stock for which its related Option is then
exercisable.

     (b) Notwithstanding any other provision of the Plan to the contrary, with
respect to a Tandem SAR granted in connection with an ISO: (1) the Tandem SAR
will expire no later than the expiration of the underlying ISO; (2) the value of
the payout with respect to the Tandem SAR may be for no more than 100 percent
(100%) of the excess of the Fair Market Value of the shares of Stock subject to
the underlying ISO at the time the Tandem SAR is exercised over the Option Price
of the underlying ISO; and (3) the Tandem SAR may be exercised only when the
Fair Market Value of the shares of Stock subject to the ISO exceeds the Option
Price of the ISO.

     6.7  Payment of SAR Amount.  Upon the exercise of a SAR, an Employee shall
be entitled to receive payment from the Company in an amount determined by
multiplying:

          (a) The excess of the Fair Market Value of a share of the Stock on the
     date of exercise over the grant price of the SAR by

          (b) The number of shares of Stock with respect to which the SAR is
     exercised.

At the discretion of the Committee, the payment upon SAR exercise may be in
cash, in Stock of equivalent value, in some combination thereof or in any other
manner approved by the Committee in its sole discretion. The Committee's
determination regarding the form of SAR payout shall be set forth in the Award
Agreement pertaining to the grant of the SAR.

     6.8  Termination of Employment.  Each Award Agreement shall set forth the
extent to which the grantee of a SAR shall have the right to exercise the SAR
following the grantee's Termination of Employment. Such provisions hall be
determined in the sole discretion of the Committee, may be included in the Award
Agreement entered into with the grantee, and need not be uniform among all SARs
issued pursuant to the Plan and may reflect distinctions based on the reasons
for termination.

     6.9  Nontransferability of SARs.  Except as otherwise provided in a
Holder's Award Agreement, no SAR granted under the Plan may be sold,
transferred, pledged, assigned or otherwise alienated or hypothecated, other
than by will or by the laws of descent and distribution. Further, except as
otherwise provided in a Holder's Award Agreement, all SARs granted to a Holder
under the Plan shall be exercisable during his or her lifetime only by the
Holder, and after that time, by the Holder's heirs or estate. Any attempted
assignment of a SAR in violation of this Section 6.9 shall be null and void.

     6.10  No Rights as Stockholder.  A grantee of a SAR award, as such, shall
have no rights as a stockholder.

     6.11  Restrictions on Stock Received.  The Committee may impose such
conditions and/or restrictions on any shares of Stock received upon exercise of
a SAR granted pursuant to the Plan as it may deem advisable

                                       13
<PAGE>

or desirable. These restrictions may include, but shall not be limited to, a
requirement that the Holder hold the shares of Stock received upon exercise of a
SAR for a specified period of time.

                                  ARTICLE VII

                            RESTRICTED STOCK AWARDS

     7.1  Restricted Stock Awards.  The Committee may make Awards of Restricted
Stock to eligible persons selected by it. The amount of, the vesting and the
transferability restrictions applicable to any Restricted Stock Award shall be
determined by the Committee in its sole discretion. If the Committee imposes
vesting or transferability restrictions on a Holder's rights with respect to
Restricted Stock, the Committee may issue such instructions to the Company's
share transfer agent in connection therewith as it deems appropriate. The
Committee may also cause the certificate for Shares issued pursuant to a
Restricted Stock Award to be imprinted with any legend which counsel for the
Company considers advisable with respect to the restrictions or, should the
Shares be represented by book or electronic entry rather than a certificate, the
Company may take such steps to restrict transfer of the Shares as counsel for
the Company considers necessary or advisable to comply with applicable law.

     Each Restricted Stock Award shall be evidenced by an Award Agreement that
contains any vesting, transferability restrictions and other provisions not
inconsistent with the Plan as the Committee may specify.

     7.2  Holder's Rights as Stockholder.  Subject to the terms and conditions
of the Plan, each recipient of a Restricted Stock Award shall have all the
rights of a stockholder with respect to the shares of Restricted Stock included
in the Restricted Stock Award during the Period of Restriction established for
the Restricted Stock Award. Dividends paid with respect to Restricted Stock in
cash or property other than shares of Stock or rights to acquire shares of Stock
shall be paid to the recipient of the Restricted Stock Award currently.
Dividends paid in shares of Stock or rights to acquire shares of Stock shall be
added to and become a part of the Restricted Stock. During the Period of
Restriction, certificates representing the Restricted Stock shall be registered
in the recipient's name and bear a restrictive legend to the effect that
ownership of such Restricted Stock, and the enjoyment of all rights appurtenant
thereto, are subject to the restrictions, terms, and conditions provided in the
Plan and the applicable Restricted Stock Award Agreement. Such certificates
shall be deposited by the recipient with the Secretary of the Company or such
other officer of the Company as may be designated by the Committee, together
with all stock powers or other instruments of assignment, each endorsed in
blank, which will permit transfer to the Company of all or any portion of the
Restricted Stock which shall be forfeited in accordance with the Plan and the
applicable Restricted Stock Award Agreement.

                                  ARTICLE VIII

                           DEFERRED STOCK UNIT AWARDS

     8.1  Authority to Grant Deferred Stock Unit Awards.  Subject to the terms
and provisions of the Plan, the Committee, at any time, and from time to time,
may grant Deferred Stock Units under the Plan to eligible persons in such
amounts and upon such terms as the Committee shall determine. The amount of, the
vesting and the transferability restrictions applicable to any Deferred Stock
Unit Award shall be determined by the Committee in its sole discretion. The
Committee shall maintain a bookkeeping ledger account which reflects the number
of Deferred Stock Units credited under the Plan for the benefit of a Holder.

     8.2  Deferred Stock Unit Awards.  A Deferred Stock Unit shall be similar in
nature to Restricted Stock except that no shares of Stock are actually
transferred to the Holder until a later date specified in the applicable Award
Agreement. Each Deferred Stock Unit shall have a value equal to the Fair Market
Value of a share of Stock.

     8.3  Deferred Stock Unit Award Agreement.  Each Deferred Stock Unit Award
shall be evidenced by an Award Agreement that contains any vesting,
transferability restrictions and other provisions not inconsistent with the Plan
as the Committee may specify.

                                       14
<PAGE>

     8.4  Payments Under Deferred Stock Unit Awards.  Payments pursuant to a
Deferred Stock Unit Award shall be made at such time as the Committee specifies
in the Holder's Award Agreement. Payment under a Deferred Stock Unit Award shall
be made in shares of Stock that have an aggregate Fair Market Value equal to the
value of the Deferred Stock Units.

     8.5  Holder's Rights as Stockholder.  Each recipient of Deferred Stock
Units shall have no rights of a stockholder with respect to the Holder's
Deferred Stock Units. A Holder shall have no voting rights with respect to any
Deferred Stock Unit Awards.

                                   ARTICLE IX

                 PERFORMANCE STOCK AND PERFORMANCE UNIT AWARDS

     9.1  Authority to Grant Performance Stock and Performance Unit
Awards.  Subject to the terms and provisions of the Plan, the Committee, at any
time, and from time to time, may grant Performance Stock and Performance Unit
Awards under the Plan to eligible persons in such amounts and upon such terms as
the Committee shall determine. The amount of, the vesting and the
transferability restrictions applicable to any Performance Stock or Performance
Unit Award shall be based upon the attainment of such Performance Goals as the
Committee may determine. A Performance Goal for a particular Performance Stock
or Performance Unit Award must be established by the Committee prior to the
earlier to occur of (a) 90 days after the commencement of the period of service
to which the Performance Goal relates or (b) the lapse of 25 percent of the
period of service, and in any event while the outcome is substantially
uncertain. A Performance Goal must be objective such that a third party having
knowledge of the relevant facts could determine whether the goal is met. Such a
Performance Goal may be based on one or more business criteria that apply to the
Employee, one or more business units of the Company, or the Company as a whole,
with reference to one or more of the following: earnings per share, earnings per
share growth, total shareholder return, economic value added, cash return on
capitalization, increased revenue, revenue ratios (per employee or per
customer), net income, stock price, market share, return on equity, return on
assets, return on capital, return on capital compared to cost of capital, return
on capital employed, return on invested capital, shareholder value, net cash
flow, operating income, earnings before interest and taxes, cash flow, cash flow
from operations, cost reductions, cost ratios (per employee or per customer),
proceeds from dispositions, project completion time and budget goals, net cash
flow before financing activities, customer growth and total market value. Goals
may also be based on performance relative to a peer group of companies. Unless
otherwise stated, such a Performance Goal need not be based upon an increase or
positive result under a particular business criterion and could include, for
example, maintaining the status quo or limiting economic losses (measured, in
each case, by reference to specific business criteria). In interpreting Plan
provisions applicable to Performance Goals and Performance Stock or Performance
Unit Awards, it is intended that the Plan will conform with the standards of
section 162(m) of the Code and Treasury Regulations sec. 1.162-27(e)(2)(i), and
the Committee in establishing such goals and interpreting the Plan shall be
guided by such provisions. Prior to the payment of any compensation based on the
achievement of Performance Goals, the Committee must certify in writing that
applicable Performance Goals and any of the material terms thereof were, in
fact, satisfied. Subject to the foregoing provisions, the terms, conditions and
limitations applicable to any Performance Stock or Performance Unit Awards made
pursuant to the Plan shall be determined by the Committee. If the Committee
imposes vesting or transferability restrictions on a recipient's rights with
respect to Performance Stock or Performance Unit Awards, the Committee may issue
such instructions to the Company's share transfer agent in connection therewith
as it deems appropriate. The Committee may also cause the certificate for shares
of Stock issued pursuant to a Performance Stock or Performance Unit Award to be
imprinted with any legend which counsel for the Company considers advisable with
respect to the restrictions or, should the shares of Stock be represented by
book or electronic entry rather than a certificate, the Company may take such
steps to restrict transfer of the shares of Stock as counsel for the Company
considers necessary or advisable to comply with applicable law.

                                       15
<PAGE>

     Each Performance Stock or Performance Unit Award shall be evidenced by an
Award Agreement that contains any vesting, transferability restrictions and
other provisions not inconsistent with the Plan as the Committee may specify.

     9.2  Rights as Stockholder.  Subject to the terms and conditions of the
Plan, each Holder of Performance Stock or Performance Unit Award shall have all
the rights of a stockholder with respect to the shares of Stock included in the
Award during any period in which such shares of Stock are subject to forfeiture
and restrictions on transfer, including without limitation, the right to vote
such shares of Stock, if unrestricted shares of Stock of the same class have the
right to vote. Dividends paid with respect to Performance Stock Awards in cash
or property other than shares of Stock or rights to acquire shares of Stock
shall be paid to the Holder currently. Dividends paid in shares of Stock or
rights to acquire shares of Stock shall be added to and become a part of the
Performance Stock Award.

     9.3  Increases Prohibited.  None of the Committee or the Board of the
Company may increase the amount of compensation payable under a Performance
Stock or Performance Unit Award. If the time at which a Performance Stock or
Performance Unit Award will vest is accelerated for any reason, the number of
shares of Stock subject to the Performance Stock or Performance Unit Award shall
be reduced pursuant to Department of Treasury Regulation section
1.162-27(e)(2)(iii) to reasonably reflect the time value of money.

                                   ARTICLE X

                 CASH-BASED AWARDS AND OTHER STOCK-BASED AWARDS

     10.1  Authority to Grant Cash-Based Awards.  Subject to the terms and
provisions of the Plan, the Committee, at any time, and from time to time, may
grant Cash-Based Awards under the Plan to Employees in such amounts and upon
such terms, including the achievement of specific performance goals, as the
Committee shall determine.

     10.2  Authority to Grant Other Stock-Based Awards.  The Committee may grant
other types of equity-based or equity-related Awards not otherwise described by
the terms and provisions of the Plan (including the grant or offer for sale of
unrestricted shares of Stock) in such amounts and subject to such terms and
conditions, as the Committee shall determine. Such Awards may involve the
transfer of actual shares of Stock to Holders, or payment in cash or otherwise
of amounts based on the value of shares of Stock and may include, without
limitation, Awards designed to comply with or take advantage of the applicable
local laws of jurisdictions other than the United States.

     10.3  Value of Cash-Based and Other Stock-Based Awards.  Each Cash-Based
Award shall specify a payment amount or payment range as determined by the
Committee. Each Other Stock-Based Award shall be expressed in terms of shares of
Stock or units based on shares of Stock, as determined by the Committee. The
Committee may establish performance goals in its discretion for Cash-Based
Awards and Other Stock-Based Awards. If the Committee exercises its discretion
to establish performance goals, the number and/or value of Cash-Based Awards or
Other Stock-Based Awards that will be paid out to the Holder will depend on the
extent to which the performance goals are met.

     10.4  Payment of Cash-Based Awards and Other Stock-Based Awards.  Payment,
if any, with respect to a Cash-Based Award or an Other Stock-Based Award shall
be made in accordance with the terms of the Award, in cash or shares of Stock as
the Committee determines.

     10.5  Termination of Employment.  The Committee shall determine the extent
to which a grantee's rights with respect to Cash-Based Awards and Other
Stock-Based Awards shall be affected by the grantee's Termination of Employment.
Such provisions shall be determined in the sole discretion of the Committee and
need not be uniform among all Awards of Cash-Based Awards and Other Stock-Based
Awards issued pursuant to the Plan.

     10.6  Nontransferability.  Except as otherwise determined by the Committee,
neither Cash-Based Awards nor Other Stock-Based Awards may be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated, other than by will or
by the laws of descent and distribution. Further, except as otherwise

                                       16
<PAGE>

provided by the Committee, a Holder's rights under the Plan, if exercisable,
shall be exercisable during his or her lifetime only by such Holder.

                                   ARTICLE XI

                              SUBSTITUTION AWARDS

     Awards may be granted under the Plan from time to time in substitution for
stock options and other awards held by employees of other corporations who are
about to become Employees, or whose employer is about to become a parent or
subsidiary corporation as contemplated in Section 3.1, conditioned in the case
of an Incentive Stock Option upon the employee becoming an employee of the
Company or a parent or subsidiary corporation of the Company, as the result of a
merger of consolidation of the Company with another corporation, or the
acquisition by the Company of substantially all the assets of another
corporation, or the acquisition by the Company of at least 50 percent (50%) of
the issued and outstanding stock of another corporation as the result of which
it becomes a subsidiary of the Company. The terms and conditions of the
substitute Awards so granted may vary from the terms and conditions set forth in
the Plan to such extent as the Board at the time of grant may deem appropriate
to conform, in whole or in part, to the provisions of the Award in substitution
for which they are granted, but with respect to Options that are Incentive Stock
Options, no such variation shall be such as to affect the status of any such
substitute Option as an incentive stock option under section 422 of the Code.

                                  ARTICLE XII

                                 ADMINISTRATION

     12.1  Awards.  The Plan shall be administered by the Committee or, in the
absence of the Committee, the Plan shall be administered by the Board. The
members of the Committee shall serve at the discretion of the Board. The
Committee shall have full and exclusive power and authority to administer the
Plan and to take all actions that the Plan expressly contemplates or are
necessary or appropriate in connection with the administration of the Plan with
respect to Awards granted under the Plan.

     12.2  Authority of the Committee.  The Committee shall have full and
exclusive power to interpret and apply the terms and provisions of the Plan and
Awards made under the Plan, and to adopt such rules, regulations and guidelines
for implementing the Plan as the Committee may deem necessary or proper, all of
which powers shall be exercised in the best interests of the Company and in
keeping with the objectives of the Plan. A majority of the members of the
Committee shall constitute a quorum for the transaction of business, and the
vote of a majority of those members present at any meeting shall decide any
question brought before that meeting. Any decision or determination reduced to
writing and signed by a majority of the members shall be as effective as if it
had been made by a majority vote at a meeting properly called and held. All
questions of interpretation and application of the Plan, or as to award granted
under the Plan, shall be subject to the determination, which shall be final and
binding, of a majority of the whole Committee. When appropriate, the Plan shall
be administered in order to qualify certain of the Options granted hereunder as
Incentive Stock Options. No member of the Committee shall be liable for any act
or omission of any other member of the Committee or for any act or omission on
his own part, including but not limited to the exercise of any power or
discretion given to him under the Plan, except those resulting from his own
gross negligence or willful misconduct. In carrying out its authority under the
Plan, the Committee shall have full and final authority and discretion,
including but not limited to the following rights, powers and authorities, to:

          (a) determine the persons to whom and the time or times at which
     Awards will be made;

          (b) determine the number and exercise price of shares of Stock covered
     in each Award, subject to the terms and provisions of the Plan;

          (c) determine the terms, provisions and conditions of each Award,
     which need not be identical and need not match the default terms set forth
     in the Plan;

                                       17
<PAGE>

          (d) accelerate the time at which any outstanding Award will vest;

          (e) prescribe, amend and rescind rules and regulations relating to
     administration of the Plan; and

          (f) make all other determinations and take all other actions deemed
     necessary, appropriate or advisable for the proper administration of the
     Plan.

     The Committee may make an Award to an individual who the Company expects to
become an Employee of the Company or any of its Affiliates within six (6) months
after the date of grant of the Award, with the Award being subject to and
conditioned on the individual actually becoming an Employee within that time
period and subject to other terms and conditions as the Committee may establish.
The Committee may correct any defect or supply any omission or reconcile any
inconsistency in the Plan or in any Award to a Holder in the manner and to the
extent the Committee deems necessary or desirable to further the Plan's
objectives. Further, the Committee shall make all other determinations that may
be necessary or advisable for the administration of the Plan. As permitted by
law and the terms and provisions of the Plan, the Committee may delegate its
authority as identified in Section 12.3.

     The actions of the Committee in exercising all of the rights, powers, and
authorities set out in this Article XII and all other Articles of the Plan, when
performed in good faith and in its sole judgment, shall be final, conclusive and
binding on all persons. The Committee may employ attorneys, consultants,
accountants, agents, and other persons, any of whom may be an Employee, and the
Committee, the Company, and its officers and Board shall be entitled to rely
upon the advice, opinions, or valuations of any such persons.

     12.3  Decisions Binding.  All determinations and decisions made by the
Committee and the Board pursuant to the provisions of the Plan and all related
orders and resolutions of the Committee and the Board shall be final, conclusive
and binding on all persons, including the Company, its stockholders, Employees,
Holders and the estates and beneficiaries of Employees and Holders.

     12.4  No Liability.  Under no circumstances shall the Company, the Board or
the Committee incur liability for any indirect, incidental, consequential or
special damages (including lost profits) of any form incurred by any person,
whether or not foreseeable and regardless of the form of the act in which such a
claim may be brought, with respect to the Plan or the Company's or the
Committee's roles in connection with the Plan.

                                  ARTICLE XIII

                        AMENDMENT OR TERMINATION OF PLAN

     13.1  Amendment, Modification, Suspension, and Termination.  Subject to
Section 13.2 the Committee may, at any time and from time to time, alter, amend,
modify, suspend, or terminate the Plan and any Award Agreement in whole or in
part; provided, however, that, without the prior approval of the Company's
stockholders and except as provided in Section 4.5, the Committee shall not
directly or indirectly lower the exercise price of a previously granted Option
or the grant price of a previously granted SAR issued under the Plan, and no
amendment of the Plan shall be made without stockholder approval if stockholder
approval is required by applicable law or stock exchange rules.

     13.2  Awards Previously Granted.  Notwithstanding any other provision of
the Plan to the contrary, no termination, amendment, suspension, or modification
of the Plan or an Award Agreement shall adversely affect in any material way any
Award previously granted under the Plan, without the written consent of the
Holder holding such Award.

                                  ARTICLE XIV

                                 MISCELLANEOUS

     14.1  Unfunded Plan/No Establishment of a Trust Fund.  Holders shall have
no right, title, or interest whatsoever in or to any investments that the
Company or any of its Affiliates may make to aid in meeting

                                       18
<PAGE>

obligations under the Plan. Nothing contained in the Plan, and no action taken
pursuant to its provisions, shall create or be construed to create a trust of
any kind, or a fiduciary relationship between the Company and any Holder,
beneficiary, legal representative, or any other person. To the extent that any
person acquires a right to receive payments from the Company under the Plan,
such right shall be no greater than the right of an unsecured general creditor
of the Company. All payments to be made hereunder shall be paid from the general
funds of the Company and no special or separate fund shall be established and no
segregation of assets shall be made to assure payment of such amounts, except as
expressly set forth in the Plan. No property shall be set aside nor shall a
trust fund of any kind be established to secure the rights of any Holder under
the Plan. All Holders shall at all times rely solely upon the general credit of
the Company for the payment of any benefit which becomes payable under the Plan.
The Plan is not intended to be subject to the Employee Retirement Income
Security Act of 1974, as amended.

     14.2  No Employment Obligation.  The granting of any Award shall not
constitute an employment contract, express or implied, nor impose upon the
Company or any Affiliate any obligation to employ or continue to employ, or
utilize the services of, any Holder. The right of the Company or any Affiliate
to terminate the employment of any person shall not be diminished or affected by
reason of the fact that an Award has been granted to him, and nothing in the
Plan or an Award Agreement shall interfere with or limit in any way the right of
the Company or its Affiliates to terminate any Holder's employment at any time
or for any reason not prohibited by law.

     14.3  Tax Withholding.  The Company or any Affiliate shall be entitled to
deduct from other compensation payable to each Holder any sums required by
federal, state or local tax law to be withheld with respect to the vesting or
exercise of an Award or lapse of restrictions on an Award. In the alternative,
the Company may require the Holder (or other person validly exercising the
Award) to pay such sums for taxes directly to the Company or any Affiliate in
cash or by check within ten days after the date of vesting, exercise or lapse of
restrictions. In the discretion of the Committee, and with the consent of the
Holder, the Company may reduce the number of shares of Stock issued to the
Holder upon such Holder's exercise of an Option to satisfy the tax withholding
obligations of the Company or an Affiliate; provided that the Fair Market Value
of the shares of Stock held back shall not exceed the Company's or the
Affiliate's minimum statutory withholding tax obligations. The Committee may, in
its discretion, permit a Holder to satisfy any minimum tax withholding
obligations arising upon the vesting of Restricted Stock by delivering to the
Holder of the Restricted Stock Award a reduced number of shares of Stock in the
manner specified herein. If permitted by the Committee and acceptable to the
Holder, at the time of vesting of shares of Restricted Stock, the Company shall
(a) calculate the amount of the Company's or an Affiliate's minimum statutory
tax withholding obligation on the assumption that all such shares of vested
Restricted Stock are made available for delivery, (b) reduce the number of such
shares of Stock made available for delivery so that the Fair Market Value of the
shares of Stock withheld on the vesting date approximates the minimum amount of
tax the Company or an Affiliate is obliged to withhold and (c) in lieu of the
withheld shares of Stock, remit cash to the United States Treasury and other
applicable governmental authorities, on behalf of the Holder, in the amount of
the minimum withholding tax due. The Company shall withhold only whole shares of
Stock to satisfy its minimum withholding obligation. Where the Fair Market Value
of the withheld shares of Stock does not equal the Company's minimum withholding
tax obligation, the Company shall withhold shares of Stock with a Fair Market
Value slightly less than the amount of its minimum withholding obligation and
the Holder must satisfy the remaining minimum withholding obligation in some
other manner permitted under this Section 14.3. The withheld shares of Stock not
made available for delivery by the Company shall be retained as treasury shares
or will be cancelled and, in either case, the Holder's right, title and interest
in such shares of Stock shall terminate. The Company shall have no obligation
upon vesting or exercise of any Award or lapse of restrictions on Restricted
Stock until the Company or an Affiliate has received payment sufficient to cover
all minimum tax withholding amounts due with respect to that vesting, exercise
or lapse of restrictions. Neither the Company nor any Affiliate shall be
obligated to advise a Holder of the existence of the tax or the amount which it
will be required to withhold.

     14.4  Written Agreement.  Each Award shall be embodied in a written
agreement or statement which shall be subject to the terms and conditions of the
Plan. The Award Agreement shall be signed by a member

                                       19
<PAGE>

of the Committee on behalf of the Committee and the Company or by an executive
officer of the Company, other than the Holder, on behalf of the Company, and may
be signed by the Holder to the extent required by the Committee. The Award
Agreement may contain any other provisions that the Committee in its discretion
shall deem advisable which are not inconsistent with the terms and provisions of
the Plan.

     14.5  Indemnification of the Committee.  The Company shall indemnify each
present and future member of the Committee against, and each member of the
Committee shall be entitled without further action on his or her part to
indemnity from the Company for, all expenses (including attorney's fees, the
amount of judgments and the amount of approved settlements made with a view to
the curtailment of costs of litigation, other than amounts paid to the Company
itself) reasonably incurred by such member in connection with or arising out of
any action, suit or proceeding in which such member may be involved by reason of
such member being or having been a member of the Committee, whether or not he or
she continues to be a member of the Committee at the time of incurring the
expenses, including, without limitation, matters as to which such member shall
be finally adjudged in any action, suit or proceeding to have been negligent in
the performance of such member's duty as a member of the Committee. However,
this indemnity shall not include any expenses incurred by any member of the
Committee in respect of matters as to which such member shall be finally
adjudged in any action, suit or proceeding to have been guilty of gross
negligence or willful misconduct in the performance of his duty as a member of
the Committee. In addition, no right of indemnification under the Plan shall be
available to or enforceable by any member of the Committee unless, within 60
days after institution of any action, suit or proceeding, such member shall have
offered the Company, in writing, the opportunity to handle and defend same at
its own expense. This right of indemnification shall inure to the benefit of the
heirs, executors or administrators of each member of the Committee and shall be
in addition to all other rights to which a member of the Committee may be
entitled as a matter of law, contract or otherwise.

     14.6  Gender and Number.  If the context requires, words of one gender when
used in the Plan shall include the other and words used in the singular or
plural shall include the other.

     14.7  Severability.  In the event any provision of the Plan shall be held
illegal or invalid for any reason, the illegality or invalidity shall not affect
the remaining parts of the Plan, and the Plan shall be construed and enforced as
if the illegal or invalid provision had not been included.

     14.8  Headings.  Headings of Articles and Sections are included for
convenience of reference only and do not constitute part of the Plan and shall
not be used in construing the terms and provisions of the Plan.

     14.9  Other Compensation Plans.  The adoption of the Plan shall not affect
any other option, incentive or other compensation or benefit plans in effect for
the Company or any Affiliate, nor shall the Plan preclude the Company from
establishing any other forms of incentive compensation arrangements for
Employees.

     14.10  Other Awards.  The grant of an Award shall not confer upon the
Holder the right to receive any future or other Awards under the Plan, whether
or not Awards may be granted to similarly situated Holders, or the right to
receive future Awards upon the same terms or conditions as previously granted.

     14.11  Successors.  All obligations of the Company under the Plan with
respect to Awards granted hereunder shall be binding on any successor to the
Company, whether the existence of such successor is the result of a direct or
indirect purchase, merger, consolidation, or otherwise, of all or substantially
all of the business and/or assets of the Company.

     14.12  Law Limitations/Governmental Approvals.  The granting of Awards and
the issuance of Shares under the Plan shall be subject to all applicable laws,
rules, and regulations, and to such approvals by any governmental agencies or
national securities exchanges as may be required.

     14.13  Delivery of Title.  The Company shall have no obligation to issue or
deliver evidence of title for shares of Stock issued under the Plan prior to:

          (a) obtaining any approvals from governmental agencies that the
     Company determines are necessary or advisable; and

                                       20
<PAGE>

          (b) completion of any registration or other qualification of the Stock
     under any applicable national or foreign law or ruling of any governmental
     body that the Company determines to be necessary or advisable.

     14.14  Inability to Obtain Authority.  The inability of the Company to
obtain authority from any regulatory body having jurisdiction, which authority
is deemed by the Company's counsel to be necessary to the lawful issuance and
sale of any shares of Stock hereunder, shall relieve the Company of any
liability in respect of the failure to issue or sell such shares of Stock as to
which such requisite authority shall not have been obtained.

     14.15  Investment Representations.  The Committee may require any person
receiving Stock pursuant to an Award under the Plan to represent and warrant in
writing that the person is acquiring the Shares for investment and without any
present intention to sell or distribute such Stock.

     14.16  Persons Residing Outside of the United States.  Notwithstanding any
provision of the Plan to the contrary, in order to comply with the laws in other
countries in which the TMW Group operates or has Employees, the Committee, in
its sole discretion, shall have the power and authority to:

          (a) determine which Affiliates shall be covered by the Plan;

          (b) determine which persons employed outside the United States are
     eligible to participate in the Plan;

          (c) amend or vary the terms and provisions of the Plan and the terms
     and conditions of any Award granted to persons who reside outside the
     United States;

          (d) establish subplans and modify exercise procedures and other terms
     and procedures to the extent such actions may be necessary or
     advisable -- any subplans and modifications to Plan terms and procedures
     established under this Section 14.16 by the Committee shall be attached to
     the Plan document as Appendices; and

          (e) take any action, before or after an Award is made, that it deems
     advisable to obtain or comply with any necessary local government
     regulatory exemptions or approvals.

     Notwithstanding the above, the Committee may not take any actions
hereunder, and no Awards shall be granted, that would violate the Exchange Act,
the Code, any securities law or governing statute or any other applicable law.

     14.17  No Fractional Shares.  No fractional shares of Stock shall be issued
or delivered pursuant to the Plan or any Award. The Committee shall determine
whether cash, additional Awards, or other property shall be issued or paid in
lieu of fractional shares of Stock or whether such fractional shares or any
rights thereto shall be forfeited or otherwise eliminated.

     14.18  Arbitration of Disputes.  Any controversy arising out of or relating
to the Plan or an Option Agreement shall be resolved by arbitration conducted
pursuant to the arbitration rules of the American Arbitration Association. The
arbitration shall be final and binding on the parties.

     14.19  Governing Law.  The provisions of the Plan and the rights of all
persons claiming thereunder shall be construed, administered and governed under
the laws of the State of Texas.

                                       21exv4w1

 

Exhibit 4.1

EXECUTION COPY

STANDARD AERO HOLDINGS, INC.,

As Issuer

$200,000,000

81/4% SENIOR SUBORDINATED NOTES DUE 2014

INDENTURE

Dated as of August 20, 2004

Wells Fargo Bank, National Association,

As Trustee

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE 1. DEFINITIONS AND INCORPORATION BY REFERENCE	 	 	1	 
	 
	 	 	 	 	 	 
	Section 1.01
	 	Definitions.	 	 	 1	 
	Section 1.02
	 	Other Definitions.	 	 	20	 
	Section 1.03
	 	Incorporation by Reference of Trust Indenture Act.	 	 	22	 
	Section 1.04
	 	Rules of Construction.	 	 	22	 
	 
	 	 	 	 	 	 
	ARTICLE 2. THE NOTES	 	 	23	 
	 
	 	 	 	 	 	 
	Section 2.01
	 	Form, Dating and Terms.	 	 	23	 
	Section 2.02
	 	Execution and Authentication	 	 	31	 
	Section 2.03
	 	Registrar and Paying Agent	 	 	32	 
	Section 2.04
	 	Paying Agent to Hold Money in Trust	 	 	33	 
	Section 2.05
	 	Holder Lists	 	 	33	 
	Section 2.06
	 	Transfer and Exchange.	 	 	33	 
	Section 2.07
	 	Form of Certificate to be Delivered upon Termination of Restricted Period	 	 	37	 
	Section 2.08
	 	Form of Certificate to be Delivered in Connection with	 	 	 	 
	 
	 	Transfers to Institutional Accredited Investors.	 	 	38	 
	Section 2.09
	 	Form of Certificate to be Delivered in Connection with	 	 	 	 
	 
	 	Transfers Pursuant to Regulation S.	 	 	39	 
	Section 2.10
	 	Mutilated, Destroyed, Lost or Stolen Notes	 	 	40	 
	Section 2.11
	 	Outstanding Notes	 	 	41	 
	Section 2.12
	 	Temporary Notes	 	 	42	 
	Section 2.13
	 	Cancellation	 	 	42	 
	Section 2.14
	 	Payment of Interest; Defaulted Interest	 	 	43	 
	Section 2.15
	 	Computation of Interest	 	 	44	 
	Section 2.16
	 	CUSIP, Common Code and ISIN Numbers	 	 	44	 
	Section 2.17
	 	Issuance of Additional Notes.	 	 	44	 
	 
	 	 	 	 	 	 
	ARTICLE 3. REDEMPTION AND PREPAYMENT	 	 	45	 
	 
	 	 	 	 	 	 
	Section 3.01
	 	Notices to Trustee.	 	 	45	 
	Section 3.02
	 	Selection of Notes to be Redeemed or Purchased.	 	 	45	 
	Section 3.03
	 	Notice of Redemption.	 	 	45	 
	Section 3.04
	 	Effect of Notice of Redemption.	 	 	46	 
	Section 3.05
	 	Deposit of Redemption or Purchase Price.	 	 	47	 
	Section 3.06
	 	Notes Redeemed or Purchased in Part.	 	 	47	 
	Section 3.07
	 	Optional Redemption.	 	 	47	 
	Section 3.08
	 	Mandatory Redemption.	 	 	48	 
	Section 3.09
	 	Offer to Purchase by Application of Excess Proceeds.	 	 	48	 
	Section 3.10
	 	Mandatory Special Redemption.	 	 	50	 
	 
	 	 	 	 	 	 
	ARTICLE 4. COVENANTS	 	 	50	 
	 
	 	 	 	 	 	 
	Section 4.01
	 	Payment of Notes.	 	 	50	 
	Section 4.02
	 	Maintenance of Office or Agency.	 	 	51	 
	Section 4.03
	 	Reports.	 	 	51	 
	Section 4.04
	 	Compliance Certificate.	 	 	52	 
	Section 4.05
	 	Taxes.	 	 	53	 
	Section 4.06
	 	Stay, Extension and Usury Laws.	 	 	53	 

 i 

 

 

	 	 	 	 	 	 	 
	Section 4.07
	 	Restricted Payments.	 	 	53	 
	Section 4.08
	 	Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries.	 	 	56	 
	Section 4.09
	 	Incurrence of Indebtedness and Issuance of Preferred Stock.	 	 	58	 
	Section 4.10
	 	Asset Sales.	 	 	61	 
	Section 4.11
	 	Transactions with Affiliates.	 	 	63	 
	Section 4.12
	 	Liens.	 	 	65	 
	Section 4.13
	 	Business Activities.	 	 	65	 
	Section 4.14
	 	Corporate Existence.	 	 	66	 
	Section 4.15
	 	Offer to Repurchase upon Change of Control.	 	 	66	 
	Section 4.16
	 	Limitation on Layering.	 	 	67	 
	Section 4.17
	 	Payments for Consent.	 	 	68	 
	Section 4.18
	 	Additional Subsidiary Guarantees.	 	 	68	 
	Section 4.19
	 	Designation of Restricted and Unrestricted Subsidiaries.	 	 	68	 
	Section 4.20
	 	Activities of the Company Prior to the Closing of the Transactions.	 	 	69	 
	 
	 	 	 	 	 	 
	ARTICLE 5. SUCCESSORS	 	 	69	 
	 
	 	 	 	 	 	 
	Section 5.01
	 	Merger, Consolidation or Sale of Assets.	 	 	69	 
	Section 5.02
	 	Successor Corporation Substituted.	 	 	70	 
	 
	 	 	 	 	 	 
	ARTICLE 6. DEFAULTS AND REMEDIES	 	 	70	 
	 
	 	 	 	 	 	 
	Section 6.01
	 	Events of Default.	 	 	70	 
	Section 6.02
	 	Acceleration.	 	 	72	 
	Section 6.03
	 	Other Remedies.	 	 	72	 
	Section 6.04
	 	Waiver of Past Defaults.	 	 	73	 
	Section 6.05
	 	Control by Majority.	 	 	74	 
	Section 6.06
	 	Limitation on Suits.	 	 	74	 
	Section 6.07
	 	Rights of Holders of Notes to Receive Payment.	 	 	74	 
	Section 6.08
	 	Collection Suit by Trustee.	 	 	74	 
	Section 6.09
	 	Trustee May File Proofs of Claim.	 	 	75	 
	Section 6.10
	 	Priorities.	 	 	75	 
	Section 6.11
	 	Undertaking for Costs.	 	 	76	 
	 
	 	 	 	 	 	 
	ARTICLE 7. TRUSTEE	 	 	76	 
	 
	 	 	 	 	 	 
	Section 7.01
	 	Duties Of Trustee.	 	 	76	 
	Section 7.02
	 	Rights Of Trustee.	 	 	77	 
	Section 7.03
	 	Individual Rights of Trustee.	 	 	78	 
	Section 7.04
	 	Trustee's Disclaimers.	 	 	78	 
	Section 7.05
	 	Notice of Defaults.	 	 	78	 
	Section 7.06
	 	Reports by Trustee to Holders of the Notes.	 	 	78	 
	Section 7.07
	 	Compensation and Indemnity.	 	 	79	 
	Section 7.08
	 	Replacement of Trustee.	 	 	80	 
	Section 7.09
	 	Successor Trustee by Merger, etc.	 	 	81	 
	Section 7.10
	 	Eligibility; Disqualification.	 	 	81	 
	Section 7.11
	 	Preferential Collection of Claims against Company.	 	 	81	 
	 
	 	 	 	 	 	 
	ARTICLE 8. LEGAL DEFEASANCE AND COVENANT DEFEASANCE	 	 	81	 
	 
	 	 	 	 	 	 
	Section 8.01
	 	Option to Effect Legal Defeasance or Covenant Defeasance.	 	 	81	 

ii

 

 

	 	 	 	 	 	 	 
	Section 8.02
	 	Legal Defeasance and Discharge.	 	 	81	 
	Section 8.03
	 	Covenant Defeasance.	 	 	82	 
	Section 8.04
	 	Conditions to Legal or Covenant Defeasance.	 	 	82	 
	Section 8.05
	 	Deposited Money and Government Securities to be held in Trust;	 	 	 	 
	 
	 	Other Miscellaneous Provisions.	 	 	84	 
	Section 8.06
	 	Repayment to Company.	 	 	84	 
	Section 8.07
	 	Reinstatement.	 	 	85	 
	 
	 	 	 	 	 	 
	ARTICLE 9. AMENDMENT, SUPPLEMENT AND WAIVER	 	 	85	 
	 
	 	 	 	 	 	 
	Section 9.01
	 	Without Consent of Holders of Notes.	 	 	85	 
	Section 9.02
	 	With Consent of Holders of Notes.	 	 	86	 
	Section 9.03
	 	Compliance with Trust Indenture Act.	 	 	88	 
	Section 9.04
	 	Revocation and Effect of Consents.	 	 	88	 
	Section 9.05
	 	Notation on or Exchange of Notes.	 	 	88	 
	Section 9.06
	 	Trustee to Sign Amendments, etc.	 	 	89	 
	 
	 	 	 	 	 	 
	ARTICLE 10. SUBSIDIARY GUARANTEES	 	 	89	 
	 
	 	 	 	 	 	 
	Section 10.01
	 	Agreement to Guarantee.	 	 	89	 
	Section 10.02
	 	Execution and Delivery of Subsidiary Guarantees.	 	 	89	 
	Section 10.03
	 	Guarantors May Consolidate, etc. on Certain Terms.	 	 	91	 
	Section 10.04
	 	Releases.	 	 	92	 
	Section 10.05
	 	Withholding Taxes	 	 	93	 
	 
	 	 	 	 	 	 
	ARTICLE 11. SUBORDINATION	 	 	93	 
	 
	 	 	 	 	 	 
	Section 11.01
	 	Agreement to Subordinate.	 	 	93	 
	Section 11.02
	 	Liquidation; Dissolution; Bankruptcy.	 	 	94	 
	Section 11.03
	 	Default on Designated Senior Debt.	 	 	94	 
	Section 11.04
	 	Acceleration of Securities.	 	 	95	 
	Section 11.05
	 	When Distribution Must Be Paid Over.	 	 	95	 
	Section 11.06
	 	Notice by Company	 	 	95	 
	Section 11.07
	 	Subrogation.	 	 	96	 
	Section 11.08
	 	Relative Rights.	 	 	96	 
	Section 11.09
	 	Subordination May Not Be Impaired by Company.	 	 	96	 
	Section 11.10
	 	Distribution or Notice to Representative.	 	 	97	 
	Section 11.11
	 	Rights of Trustee and Paying Agent.	 	 	97	 
	Section 11.12
	 	Authorization to Effect Subordination.	 	 	97	 
	Section 11.13
	 	Amendments.	 	 	97	 
	 
	 	 	 	 	 	 
	ARTICLE 12. SATISFACTION AND DISCHARGE	 	 	98	 
	 
	 	 	 	 	 	 
	Section 12.01
	 	Satisfaction and Discharge.	 	 	98	 
	Section 12.02
	 	Application of Trust Money.	 	 	99	 
	 
	 	 	 	 	 	 
	ARTICLE 13. MISCELLANEOUS	 	 	99	 
	 
	 	 	 	 	 	 
	Section 13.01
	 	Trust Indenture Act Controls.	 	 	99	 
	Section 13.02
	 	Notices.	 	 	99	 
	Section 13.03
	 	Communications By Holders of Notes with Other Holders of Notes.	 	 	100	 
	Section 13.04
	 	Certificate and Opinion as to Conditions Precedent.	 	 	100	 

iii

 

 

	 	 	 	 	 	 	 
	Section 13.05
	 	Statements Required in Certificate or Opinion.	 	 	101	 
	Section 13.06
	 	Rules by Trustee and Agents.	 	 	101	 
	Section 13.07
	 	No Personal Liability of Directors, Officers, Employees and Stockholders.	 	 	101	 
	Section 13.08
	 	Governing Law.	 	 	102	 
	Section 13.09
	 	No Adverse Interpretation of Other Agreements.	 	 	102	 
	Section 13.10
	 	Successors.	 	 	102	 
	Section 13.11
	 	Severability.	 	 	102	 
	Section 13.12
	 	Counterpart Originals.	 	 	102	 
	Section 13.13
	 	Table of Contents, Headings, etc.	 	 	102	 

iv

 

 

EXHIBITS:

	 	 	 
	EXHIBIT A

	 	FORM OF THE SERIES A NOTE
	EXHIBIT B

	 	FORM OF THE SERIES B NOTE
	EXHIBIT C

	 	FORM OF NOTATION ON SENIOR SUBORDINATED NOTE RELATING TO SUBSIDIARY GUARANTEE
	EXHIBIT D

	 	FORM OF SUPPLEMENTAL INDENTURE

 v 

 

 

Cross-Reference Table*

	 	 	 
	Trust Indenture	 	Indenture
	Act Section	 	Section
	310 (a)(1)
	 	7.10
	(a)(2)
	 	7.10
	(a)(3)
	 	N.A.
	(a)(4)
	 	N.A.
	(a)(5)
	 	7.10
	(b)
	 	7.10
	(c)
	 	N.A.
	311 (a)
	 	7.11
	(b)
	 	7.11
	(c)
	 	N.A.
	312 (a)
	 	2.05
	(b)
	 	13.03
	(c)
	 	13.03
	313 (a)
	 	7.06
	(b)(1)
	 	N.A.
	(b)(2)
	 	7.06; 7.07
	(c)
	 	7.06; 13.02
	(d)
	 	7.06
	314 (a)
	 	4.03; 13.02; 13.05
	(b)
	 	N.A.
	(c)(1)
	 	13.04
	(c)(2)
	 	13.04
	(c)(3)
	 	N.A.
	(d)
	 	N.A.
	(e)
	 	13.05
	(f)
	 	N.A.
	315 (a)
	 	7.01
	(b)
	 	7.05, 13.02
	(c)
	 	7.01
	(d)
	 	7.01
	(e)
	 	6.11
	316 (a)(last
sentence)
	 	2.11
	(a)(1)(A)
	 	6.05
	(a)(1)(B)
	 	6.04
	(a)(2)
	 	N.A.
	(b)
	 	6.07
	(c)
	 	2.14
	317 (a)(1)
	 	6.08

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

vi

 

 

	 	 	 
	a)(2)
	 	6.09
	(b)
	 	2.04
	318 (a)
	 	13.01
	(b)
	 	N.A.
	(c)
	 	13.01

N.A. means not applicable.

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

vii

 

 

     This INDENTURE dated as of August 20, 2004 between Standard Aero Holdings, Inc., a Delaware
corporation (the “Company”) and Wells Fargo Bank, National Association, as Trustee. Following the
issue date and concurrently with the release of the escrowed funds, the following entities will
become a party to this Indenture by executing a supplemental indenture: Dunlop Standard Aerospace
(U.S.) Inc., a Delaware corporation; Dunlop Standard Aerospace (US), Inc., a Delaware corporation;
Dunlop Standard Aerospace (US) Legal, Inc., a Delaware corporation; Standard Aero Inc., a Delaware
corporation; Dunlop Aerospace Parts Inc., a Delaware corporation; Standard Aero (San Antonio) Inc.,
a Delaware corporation; Standard Aero (Alliance) Inc., a Delaware corporation; Standard Aero
Canada, Inc., a Delaware corporation; 3091781 Nova Scotia Company, an entity incorporated under the
laws of Canada; 3091782 Nova Scotia Company, an entity incorporated under the laws of Canada;
3091783 Nova Scotia Company, an entity, incorporated under the laws of Canada; 6269044 Canada Inc.,
an entity incorporated under the laws of Canada, Standard Aero Limited, an entity incorporated
under the laws of Canada; Not FM Canada Inc., an entity incorporated under the laws of Canada;
Dunlop Standard Aerospace (Nederland) BV, an entity incorporated under the laws of the Netherlands;
and Standard Aero (Nederland) BV, an entity incorporated under the laws of the Netherlands
(collectively, the “Guarantors”).

     The Company and the Trustee agree as follows for the benefit of each other and for the equal
and ratable benefit of the Holders of the 81/4% Senior Subordinated Notes, Series A, due 2014 (the
"Initial Notes”) and the 81/4% Senior Subordinated Notes, Series B, due 2014 (the “Exchange Notes”
and, together with the Initial Notes, the “Notes”):

ARTICLE 1.

DEFINITIONS AND INCORPORATION

BY REFERENCE

Section 1.01 Definitions.

     "Acquired Debt” means, with respect to any specified Person, (i) Indebtedness of any other
Person existing at the time such other Person is merged with or into or became a Restricted
Subsidiary of such specified Person, whether or not such Indebtedness is 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 (ii) Indebtedness secured by a Lien encumbering any asset
acquired by such specified Person.

     “Acquisition” means the Company’s acquisition, in accordance with the purchase agreement,
dated as of July 5, 2004, among Standard Aero Holdings, Inc., Dunlop Standard Aerospace Group
Limited (“Dunlop”), Meggitt Acquisition Limited and others, of the engine repair and overhaul
businesses of Dunlop, consisting of all of the issued and outstanding common stock or other equity
interests of Dunlop Standard Aerospace (U.S.) Inc., Standard Aero Inc., Dunlop Aerospace Parts
Inc., Standard Aero (San Antonio) Inc., Standard Aero (Alliance) Inc., Dunlop Standard Aerospace
(Nederland) BV, Standard Aero BV, Standard Aero Limited, Standard Aero de Mexico S.A. de CV,
Standard Aero (Asia) Pte Limited and Standard Aero (Australia) Pty Limited.

 

 

     "Acquisition Agreement” means collectively, the Purchase Agreement, dated as of July 5, 2004,
among Meggitt Acquisition Limited, Meggitt plc, Standard Aero Holdings, Inc. and the managers and
investors parties thereto; the ERO Purchase Agreement, dated as of July 5, 2004, among Standard
Aero Holdings, Inc., Dunlop Standard Aerospace Group Limited, Dunlop Aerospace Limited, Dunlop
Standard Aerospace Overseas Limited, Dunlop Standard Aerospace Overseas Investments Limited and
Meggitt Acquisition Limited; and the Separation Agreement, dated as of July 5, 2004, among Meggitt
Acquisition Limited, Meggitt plc and Standard Aero Holdings, Inc.

     "Additional Interest” means any additional interest payable pursuant to Section 2(d) of the
Registration Rights Agreement.

     "Additional Notes” means any notes (other than the Initial Notes), if any, issued under this
Indenture in accordance with Sections 2.01, 2.02, 2.17 and 4.09 hereof.

     "Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For
purposes of this definition, “control”, as used with respect to any Person, shall mean the
possession, directly or indirectly, of the power to direct or cause the direction of the management
or policies of such Person, whether through the ownership of voting securities, by agreement or
otherwise; provided that with respect to Section 4.11 only, beneficial ownership of 10% or more of
the Voting Stock of a Person shall be deemed to be control. For purposes of this definition, the
terms “controlling,” “controlled by” and “under common control with” have correlative meanings.

     "Agent” means any Registrar, Paying Agent or co-registrar.

     "Applicable Premium” means, with respect to any Note on any applicable redemption date, the
greater of:

     (1) 1% of the then outstanding principal amount of the Note; and

     (2) the excess of:

     (a) the present value at such redemption date of (i) the redemption price of the Note
at September 1, 2009, such redemption price being set forth in Section 3.07 plus (ii) all
required interest payments due on the Note through September 1, 2009 (excluding accrued but
unpaid interest to the redemption date), computed using a discount rate equal to the
Treasury Rate as of such redemption date plus 50 basis points; over

     (b) the then outstanding principal amount of the Note.

     "Asset Sale” means (i) the sale, lease, conveyance or other disposition of any property,
assets or rights (including by way of sale and leaseback); provided that the sale, conveyance or
other disposition of all or substantially all of the assets of the Company and its Restricted
Subsidiaries taken as a whole will be governed by the covenant contained in Section 4.15 and/or the
covenant contained in Section 5.01 and not by the covenant contained in Section 4.10; and (ii) the
issuance or sale of Equity Interests (other than directors’ qualifying shares) in

2

 

any of the Company’s Restricted Subsidiaries. Notwithstanding the preceding, none of the
following items shall be deemed to be an Asset Sale: (i) any single transaction or series of
related transactions that involves assets having an aggregate fair market value of less than $2.0
million; (ii) a transfer of assets between or among the Company and its Restricted Subsidiaries;
(iii) an issuance of Equity Interests by a Restricted Subsidiary to the Company or to another
Restricted Subsidiary; (iv) the sale or lease of products, services, equipment, inventory or other
assets in the ordinary course of business or other disposition of damaged, worn-out or obsolete
assets in the ordinary course of business; (v) the sale or other disposition of cash or Cash
Equivalents; (vi) the license of patents, trademarks, copyrights and know-how to third Persons in
the ordinary course of business; (vii) the creation of Liens; (viii) disposition of an account
receivable in connection with the collection or compromise thereof; (ix) for purposes of Section
4.10 only, a Restricted Payment that does not violate, or Permitted Investment (other than a
Permitted Investment to the extent such transaction results in the receipt of cash or Cash
Equivalents by the Company or its Restricted Subsidiaries) that is permitted by, Section 4.07
hereof; and (x) dispositions of engine pool assets in the ordinary course of business.

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

     “Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under
the Exchange Act, except that in calculating the beneficial ownership of any particular “person”
(as that term is used in Section 13(d)(3) of the Exchange Act), such “person” will be deemed to
have beneficial ownership of all securities that such “person” has the right to acquire by
conversion or exercise of other securities, whether such right is currently exercisable or is
exercisable only upon the occurrence of a subsequent condition. The terms “Beneficially Owns” and
“Beneficially Owned” have correlative meanings.

     “Board of Directors” means (i) with respect to a corporation, the board of directors of the
corporation, (ii) with respect to a partnership, the board of directors of the general partner of
the partnership, and (iii) with respect to any other Person, the board or committee of such Person
serving a similar function.

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

     "Business Day” means each day that is not a Saturday, Sunday or other day on which banking
institutions in New York, New York are authorized, or required by law to close.

     "Capital Lease Obligation” means, at the time any determination thereof is to be made, the
amount of the liability in respect of a capital lease that would at that time be required to be
capitalized on a balance sheet in accordance with GAAP.

     "Capital Stock” means (i) in the case of a corporation, corporate stock, (ii) in the case of
an association or business entity, any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock, (iii) in the case of a partnership or

3

 

limited liability company, partnership or membership interests (whether general or limited)
and (iv) any other interest or participation that confers on a Person the right to receive a share
of the profits and losses of, or distributions of assets of, the issuing Person.

     "Cash Equivalents” means (i) United States dollars or, in the case of any Foreign Subsidiary,
such local currencies held by it from time to time in the ordinary course of business, (ii)
securities issued or directly and fully guaranteed or insured by the United States government or
any agency or instrumentality of the United States government (provided that the full faith and
credit of the United States is pledged in support of those securities) having maturities of not
more than one year from the date of acquisition, (iii) certificates of deposit and eurodollar time
deposits with maturities of one year or less from the date of acquisition, bankers’ acceptances
with maturities not exceeding six months and overnight bank deposits, in each case, with any lender
party to the Credit Agreement or with any domestic commercial bank having capital and surplus in
excess of $500.0 million and a Thomson Bank Watch Rating of “B” or better, (iv) repurchase
obligations with a term of not more than seven days for underlying securities of the types
described in clauses (ii) and (iii) above entered into with any financial institution meeting the
qualifications specified in clause (iii) above, (v) commercial paper having one of the two highest
ratings obtainable from Moody’s Investors Service, Inc. or Standard & Poor’s Rating Services and in
each case maturing within one year after the date of acquisition and (vi) money market funds at
least 95% of the assets of which constitute Cash Equivalents of the kinds described in clauses
(i)-(v) above.

     "Change of Control” means the occurrence of any of the following: (i) prior to the occurrence
of the first public offering of common stock of the Company or Holdings, the Permitted Holders
cease to be the Beneficial Owners, directly or indirectly, of a majority of the Voting Stock of the
Company or Holdings, measured by voting power rather than number of shares, whether as a result of
the issuance of securities of the Company or Holdings, any merger, consolidation, liquidation or
dissolution of the Company or Holdings, or any direct or indirect transfer of securities by the
Permitted Holders or otherwise, (ii) the direct or indirect sale, transfer, conveyance or other
disposition (other than by way of merger or consolidation), in one or a series of related
transactions, of all or substantially all of the properties or assets of Holdings or the Company
and its Restricted Subsidiaries taken as a whole to any “person” or “group” (as those terms are
used in Section 13(d)(3) or Section 14(d)(2) of the Exchange Act or any successor provision) other
than a Permitted Holder, (iii) the adoption of a plan relating to the liquidation or dissolution of
Holdings or the Company, (iv) after the first public offering of common stock of the Company or
Holdings, the consummation of any transaction (including, without limitation, any merger or
consolidation) the result of which is that any “person” or “group” (as those terms are used in
Section 13(d)(3) and Section 14(d)(2) of the Exchange Act or any successor provision), other than
the Permitted Holders, becomes the “Beneficial Owner”, directly or indirectly, of more than 35% of
the Voting Stock of the Company or Holdings after such first public offering, measured by voting
power rather than number of shares, or (v) the first day on which a majority of the members of the
Board of Directors of the Company or Holdings are not Continuing Directors.

     "Consolidated Cash Flow” means, with respect to any specified Person for any period, the
Consolidated Net Income of such Person for such period, plus (i) provision for taxes based on
income or profits of such Person and its Restricted Subsidiaries for such period to the

4

 

extent such taxes were deducted in computing such Consolidated Net Income, plus (ii)
consolidated interest expense of such Person and its Restricted Subsidiaries for such period,
whether paid or accrued and whether or not capitalized (including, without limitation, amortization
of debt issuance costs and original issue discount, non-cash interest payments, the interest
component of any deferred payment obligations, the interest component of all payments associated
with Capital Lease Obligations, commissions, discounts and other fees and charges incurred in
respect of letter of credit or bankers’ acceptance financings), fees or interest paid to purchasers
or lenders providing financing in connection with a factoring agreement or other similar agreement
and net of the effect of all payments made or received pursuant to Hedging Obligations to the
extent such expense was deducted in computing such Consolidated Net Income, plus (iii)
depreciation, amortization (including amortization of intangibles but excluding amortization of
prepaid cash expenses that were paid in a prior period) and other non-cash expenses (excluding any
such non-cash expense to the extent that it represents an accrual of or reserve for cash expenses
in any future period or amortization of a prepaid cash expense that was paid in a prior period) of
such Person and its Subsidiaries for such period to the extent such expenses were deducted in
computing such Consolidated Net Income, plus (iv) unrealized non-cash losses resulting from foreign
currency balance sheet adjustments required by GAAP to the extent such losses were deducted in
computing such Consolidated Net Income, plus (v) any non-recurring fees, charges or other expenses
(including bonus and retention payments and severance expenses, restructuring costs and acquisition
integration costs and fees) made or incurred in connection with the Acquisition within one year of
the Issue Date; plus (vi) all other unusual or non-recurring items of loss or expense, net
after-tax; minus (vii) all other unusual or non-recurring gains or revenue, net after-tax; minus
(viii) non-cash items increasing such Consolidated Net Income for such period, other than the
accrual of revenue in the ordinary course of business, in each case, on a consolidated basis and
determined in accordance with GAAP.

     "Consolidated Net Income” means, with respect to any specified Person for any period, the
aggregate of the Net Income of such Person and its Restricted Subsidiaries for such period, on a
consolidated basis, determined in accordance with GAAP; provided that (i) the Net Income of any
Person that is not a Restricted Subsidiary or that is accounted for by the equity method of
accounting will be included only to the extent of the amount of dividends or distributions paid in
cash (or to the extent converted into cash) to the specified Person or a Restricted Subsidiary of
the Person or, if such Net Income is a loss, only to the extent such loss has been funded with cash
from the Company or a Restricted Subsidiary, (ii) the Net Income (if positive) of any Restricted
Subsidiary that is not a Guarantor will be excluded to the extent that the declaration or payment
of dividends or similar distributions by that Restricted Subsidiary of that Net Income is not at
the date of determination permitted without any prior governmental approval (that has not been
obtained) or, directly or indirectly, by operation of the terms of its charter or any agreement,
instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that
Restricted Subsidiary or its stockholders, (iii) the cumulative effect of a change in accounting
principles will be excluded and (iv) any impairment loss of such Person or its Restricted
Subsidiaries relating to goodwill or other non-amortizing intangible asset will be excluded.

     Notwithstanding the foregoing, for the purpose of Section 4.07 only, there shall be excluded
from Consolidated Net Income any income arising from any sale or other

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disposition of Restricted Investments made by the Company and its Restricted Subsidiaries, any
repurchases and redemptions of Restricted Investments made by the Company and its Restricted
Subsidiaries, any repayments of loans and advances which constitute Restricted Investments by the
Company and any Restricted Subsidiary, or any distribution or dividend from an Unrestricted
Subsidiary, but in each case only to the extent such income otherwise increases the amount of
Restricted Payments permitted under clause (C)(III) and (C)(V) of Section 4.07(a).

     "Continuing Directors” means, as of any date of determination, any member of the Board of
Directors of the Company or Holdings, as the case may be, who (i) was a member of such Board of
Directors on the Issue Date or (ii) was nominated for election or elected to such Board of
Directors with the approval of a majority of the Continuing Directors who were members of the
relevant Board at the time of such nomination or election.

     "Corporate Trust Office of the Trustee” will be at the principal address of the Trustee
specified in Section 13.02 hereof or such other address as to which the Trustee may give notice to
the Company.

     "Credit Agreement” means that certain Credit Agreement, to be dated as of the closing date of
the Acquisition, among the Company, the lenders party thereto, J.P. Morgan Securities Inc. and
Lehman Brothers Inc., as joint lead arrangers, J.P. Morgan Chase Bank, as administrative agent, and
Lehman Commercial Paper Inc. and Credit Suisse First Boston, as co-syndication agent, providing for
up to $375.0 million of borrowings, including any related notes, guarantees, collateral documents,
instruments and agreements executed in connection therewith, and in each case as amended, restated,
modified, renewed, increased, refunded, replaced (whether upon or after termination or otherwise)
or refinanced (including by means of sales of debt securities to institutional investors) from time
to time.

     "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.

     "Depositary” means, with respect to the Notes issuable or issued in whole or in part in global
form, DTC as the Depositary with respect to the Notes, until a successor shall have been appointed
and become such pursuant to the applicable provision of this Indenture, and, thereafter,
“Depositary” shall mean or include such successor.

     "Designated Noncash Consideration” means the fair market value of noncash consideration
received by the Company or one of its Restricted Subsidiaries in connection with an Asset Sale that
is so designated as Designated Noncash Consideration pursuant to an Officers’ Certificate setting
forth the basis of such valuation, less the amount of cash or Cash Equivalents received in
connection with a subsequent sale, redemption or payment of, on or with respect to such Designated
Noncash Consideration..

     "Designated Senior Debt” means (i) any Indebtedness outstanding under the Credit Agreement and
(ii) any other Senior Debt permitted under this Indenture the principal amount of which is $25.0
million or more and that has been designated by the Company as “Designated Senior Debt”.

6

 

     "Disqualified Stock” means, with respect to any Person, any Capital Stock of such Person that,
by its terms (or by the terms of any security into which it is convertible, or for which it is
exchangeable, in each case at the option of the holder of the Capital Stock), or upon the happening
of any event, matures or is mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise, or is redeemable at the option of the Holder of the Capital Stock, in whole or in part,
or is convertible or exchangeable for Indebtedness or Disqualified Stock (excluding Capital Stock
which is exchangeable or convertible solely at the option of the Company or any Restricted
Subsidiary) on or prior to the date that is 91 days after the earlier of the date on which the
Notes mature or the date the Notes are no longer outstanding; provided, however, that any Capital
Stock that would constitute Disqualified Stock solely because the holders of the Capital Stock have
the right to require the Company to repurchase such Capital Stock upon the occurrence of a Change
of Control or an Asset Sale will not constitute Disqualified Stock if the terms of such Capital
Stock provide that the Company may not repurchase or redeem any such Capital Stock (and all
securities into which it is convertible or exchangeable) pursuant to such provisions prior to
compliance by the Company with Section 4.10 and Section 4.15 hereof and such repurchase or
redemption complies with Section 4.07 hereof.

     "DTC” means The Depository Trust Company, its nominees and their respective successors and
assigns, or such other depository institution hereinafter appointed by the Company.

     "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 Capital Stock (other than Disqualified
Stock) made for cash on a primary basis by the Company after the Issue Date, other than (i) public
offerings registered on Form S-4 or S-8 or (ii) any issuance to any Subsidiary.

     "Escrow Agreement” means that certain Escrow and Security Agreement dated as of August 20,
2004 among the Company, as pledgor, the Trustee, as trustee and securities intermediary and escrow
agent, and the Initial Purchasers.

     "Escrow Fund” has the meaning set forth in the Escrow Agreement.

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

     "Exchange Notes” means (i) the 81/4% Senior Subordinated Notes, Series B, due 2014, registered
under the Securities Act, issued pursuant to this Indenture in connection with an Exchange Offer
pursuant to a Registration Rights Agreement and (ii) additional notes, if any, issued pursuant to a
registration statement filed with the SEC under the Securities Act.

     "Exchange Offer” means the exchange and issuance by the Company, pursuant to a Registration
Rights Agreement, of a principal amount of Exchange Notes (which will be registered pursuant to the
Exchange Offer Registration Statement) equal to the outstanding principal amount of Initial Notes
or Additional Notes, as the case may be, tendered by Holders thereof in connection with such
exchange and issuance.

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

     "Existing Indebtedness” means Indebtedness of the Company and its Restricted Subsidiaries
(other than Indebtedness under the Credit Agreement and the Notes) in existence on the Issue Date,
until such amounts are repaid.

     "Fixed Charge Coverage Ratio” means, with respect to any specified Person for any period
consisting of such Person’s most recently ended four fiscal quarters for which internal financial
statements are available (the “four quarter reference period”), the ratio of the Consolidated Cash
Flow of such Person for such period to the Fixed Charges of such Person for such period. In the
event that the specified Person or any of its Restricted Subsidiaries incurs, assumes, Guarantees,
repays, repurchases or redeems any Indebtedness (other than ordinary working capital borrowings) or
issues, repurchases or redeems Preferred Stock subsequent to the commencement of the applicable
period for which the Fixed Charge Coverage Ratio is being calculated and on or prior to the date on
which the event for which the calculation of the Fixed Charge Coverage Ratio is made (the
"Calculation Date”), then the Fixed Charge Coverage Ratio will be calculated giving pro forma
effect to such incurrence, assumption, Guarantee, repayment, repurchase or redemption of
Indebtedness, or such issuance, repurchase or redemption of Preferred Stock, and the use of
proceeds therefrom, as if the same had occurred at the beginning of the applicable four-quarter
reference period. In addition, for purposes of calculating the Fixed Charge Coverage Ratio, (i)
acquisitions that have been made by the specified Person or any of its Restricted Subsidiaries,
including through mergers or consolidations and including any related financing transactions,
subsequent to the commencement of the applicable four-quarter reference period and on or prior to
the Calculation Date will be given pro forma effect as if they had occurred on the first day of
such period, including any Consolidated Cash Flow and any pro forma expense and cost reductions
that have occurred or are reasonably expected to occur, in the reasonable judgment of the chief
financial officer of the specified Person (regardless of whether those expense and cost reductions
could then be reflected in pro forma financial statements in accordance with Regulation S-X
promulgated under the Securities Act or any other regulation or policy of the SEC related thereto),
(ii) the Consolidated Cash Flow attributable to discontinued operations, as determined in
accordance with GAAP, and operations or businesses disposed of prior to the Calculation Date, will
be excluded, (iii) the Fixed Charges attributable to discontinued operations, as determined in
accordance with GAAP, and operations or businesses disposed of prior to the Calculation Date, will
be excluded, but only to the extent that the obligations giving rise to such Fixed Charges will not
be obligations of the specified Person or any of its Restricted Subsidiaries following the
Calculation Date, (iv) any Person that is a Restricted Subsidiary on the Calculation Date will be
deemed to have been a Restricted Subsidiary at all times during the applicable four-quarter
reference period, (v) any Person that is not a Restricted Subsidiary on such Calculation Date will
be deemed not to have been a Restricted Subsidiary at any time during the applicable four-quarter
reference period and (vi) if any Indebtedness bears a floating rate of interest, the interest
expense on such Indebtedness will be calculated as if the rate in effect on the Calculation Date
had been the applicable rate for the entire applicable four-quarter reference period (taking into
account any Hedging Obligation applicable to such Indebtedness if such Hedging Obligation has a
remaining term as at the Calculation Date in excess of 12 months).

8

 

     "Fixed Charges” means, with respect to any specified Person for any period, the sum, without
duplication, of (i) the consolidated interest expense of such Person and its Restricted
Subsidiaries for such period, whether paid or accrued (including, without limitation, amortization
of debt issuance costs and original issue discount, non-cash interest payments, the interest
component of any deferred payment obligations, the interest component of all payments associated
with Capital Lease Obligations, commissions, discounts and other fees and charges incurred in
respect of letter of credit or bankers’ acceptance financings), fees or interest paid to purchasers
or lenders providing financing in connection with a factoring agreement or other similar agreement,
and net of the effect of all payments made or received pursuant to Hedging Obligations, plus (ii)
the consolidated interest of such Person and its Restricted Subsidiaries that was capitalized
during such period, plus (iii) any interest expense on Indebtedness of another Person that is
Guaranteed by such Person or one of its Restricted Subsidiaries or secured by a Lien on assets of
such Person or one of its Restricted Subsidiaries (whether or not such Guarantee or Lien is called
upon), plus (iv) the product of (A) all dividends, whether paid or accrued and whether or not in
cash, on any series of preferred stock or Disqualified Stock of such Person or any of its
Restricted Subsidiaries, other than dividend payments on Equity Interests payable solely in Equity
Interests of the Company (other than Disqualified Stock) or to the Company or a Restricted
Subsidiary of the Company, times (B) a fraction, the numerator of which is one and the denominator
of which is one minus the then current combined federal, state and local statutory tax rate of such
Person, expressed as a decimal.

     “Foreign Cash Equivalents” means (i) certificates of deposit or bankers acceptances of, and
bank deposits with, any bank organized under the laws of any country that is a member of the
European Economic Community, whose short-term commercial paper rating from Standard & Poor’s is at
least A-1 or the equivalent thereof or from Moody’s is at least P-1 or the equivalent thereof, in
each case with maturities of not more than six months from the date of acquisition; (ii) commercial
paper maturing not more than one year from the date of creation thereof and, at the time of
acquisition, having the highest rating obtainable from either Standard & Poor’s or Moody’s or (iii)
shares of any money market mutual fund that has its assets invested continuously in the types of
investments referred to in clauses (i) and (ii) above.

     "Foreign Subsidiary” means any Restricted Subsidiary of the Company that was not formed under
the laws of the United States or any state of the United States or the District of Columbia.

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

     "Global Notes” means, individually and collectively, each of the Restricted Global Notes and
the Unrestricted Global Notes substantially in the form of Exhibit A hereto issued in accordance
with Article 2 hereof.

9

 

     "Government Securities” means direct obligations of, or obligations guaranteed by, the United
States of America for the payment of which guarantee or obligations the full faith and credit of
the United States is pledged.

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

     "Guarantors” means each Subsidiary that incurs a Guarantee of the Notes, including its
successors and assigns; provided that upon the release and discharge of such Person from its
Guarantee in accordance with the provisions of this Indenture, such Person shall cease to be a
Guarantor.

     "Guarantor Senior Debt” means:

     (1) all Indebtedness of any Guarantor outstanding under the Credit Agreement and all Hedging
Obligations with respect thereto;

     (2) any other Indebtedness of any Guarantor permitted to be incurred under the terms of this
Indenture, including premiums and accrued and unpaid interest (including interest accruing on or
after the filing of any petition in bankruptcy or for reorganization relating to the Guarantor at
the rate specified in the documentation with respect thereto whether or not a claim for post-filing
interest is allowed in such proceeding), unless the instrument under which such Indebtedness is
incurred expressly provides that it is on a parity with or subordinated in right of payment to any
Subsidiary Guarantee; and

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

     Notwithstanding the foregoing, “Guarantor Senior Debt” shall not include:

	 	(a)  	any liability for federal, state, local or other taxes owed or
owing by such Guarantor;
	 
	 	(b)  	any intercompany Indebtedness of such Guarantor or any of its
Subsidiaries to the Company or any other Subsidiary of the Company;
	 
	 	(c)  	any accounts payable or other liability to trade creditors
arising in the ordinary course of business;
	 
	 	(d)  	the portion of any Indebtedness that is incurred in violation
of this Indenture; or
	 
	 	(e)  	Capital Stock.

     "Hedging Obligations” means, with respect to any specified Person, the obligations of such
Person incurred in the normal course of business and consistent with past

10

 

practices and not for speculative purposes under (i) interest rate swap agreements, interest
rate cap agreements and interest rate collar agreements entered into with one or more financial
institutions and designed to protect the Person or entity entering into the agreement against
fluctuations in interest rates with respect to Indebtedness incurred and not for purposes of
speculation, (ii) foreign exchange contracts and currency protection agreements entered into with
one or more financial institutions and designed to protect the Person or entity entering into the
agreement against fluctuations in currency exchange rates with respect to Indebtedness incurred and
not for purposes of speculation, (iii) any commodity futures contract, commodity option or other
similar agreement or arrangement designed to protect against fluctuations in the price of
commodities used by such Person at the time or (iv) other agreements or arrangements designed to
protect such Person against fluctuations in interest rates, currency exchange rates or commodity
prices.

     "Holder” means a Person in whose name a Note is registered.

     "Holdings” means Standard Aero Acquisition Holdings, Inc., a Delaware corporation, or its
successor.

     “IAI” means Institutional Accredited Investor.

     "Indebtedness” means, with respect to any specified Person, any indebtedness of such Person
(excluding accrued expenses and trade payables), whether or not contingent, (i) in respect of
borrowed money, (ii) evidenced by bonds, notes, debentures or similar instruments or letters of
credit (or, without double counting, reimbursement agreements in respect thereof), (iii) in respect
of banker’s acceptances, (iv) representing Capital Lease Obligations, (v) representing the balance
deferred and unpaid of the purchase price of any property due more than six months after such
property is acquired, or (vi) representing the loss value of any Hedging Obligations, if and to the
extent any of the preceding items (other than letters of credit and Hedging Obligations) would
appear as a liability upon a balance sheet of the specified Person prepared in accordance with
GAAP. In addition, the term “Indebtedness” includes (a) Disqualified Stock, (b) all Indebtedness
of others secured by a Lien on any asset of the specified Person (whether or not such Indebtedness
is assumed by the specified Person) and, (c) to the extent not otherwise included, the Guarantee by
the specified Person of any Indebtedness of any other Person.

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

     "Initial Notes” means $200.0 million in aggregate principal amount of 81/4% Senior Subordinated
Notes due 2014 issued under this Indenture on the Issue Date.

     "Investments” means, with respect to any Person, all direct or indirect investments by such
Person in other Persons (including Affiliates) in the forms of loans (including Guarantees or other
obligations), advances or capital contributions (excluding commission, travel and similar advances
to officers and employees 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,
together with all items that are or would be classified as investments on a balance sheet prepared
in accordance with GAAP. If the Company or any Restricted Subsidiary of the Company sells or
otherwise disposes of any Equity Interests of any

11

 

direct or indirect Restricted Subsidiary of the Company such that, after giving effect to any
such sale or disposition, such Person is no longer a Subsidiary of the Company, the Company will be
deemed to have made an Investment on the date of any such sale or disposition equal to the fair
market value of the Equity Interests of such Restricted Subsidiary not sold or disposed of in an
amount determined as provided in the final paragraph of Section 4.07 hereof. The acquisition by
the Company or any Restricted Subsidiary of the Company of a Person that holds an Investment in a
third Person will be deemed to be an Investment by the Company or such Restricted Subsidiary in
such third Person in an amount equal to the fair market value of the Investment held by the
acquired Person in such third Person on the date of any such acquisition in an amount determined as
provided in the final paragraph of Section 4.07 hereof.

     For purposes of the definition of “Unrestricted Subsidiary” and Section 4.07 hereof, (i)
“Investments” shall include the portion (proportionate to the Company’s equity interest in such
Subsidiary) of the fair market value of the net assets of a Subsidiary of the Company at the time
that such Subsidiary is designated an Unrestricted Subsidiary; provided, however, that upon a
redesignation of such Subsidiary as a Restricted Subsidiary, the Company shall be deemed to
continue to have a permanent “Investment” in an Unrestricted Subsidiary in an amount (if positive)
equal to (x) the Company’s “Investment” in such Subsidiary at the time of such redesignation less
(y) the portion (proportionate to the Company’s equity interest in such Subsidiary) of the fair
market value of the net assets of such Subsidiary at the time of such redesignation; and (ii) 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 August 20, 2004.

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

     "Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest
or encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise
perfected under applicable law (including any conditional sale or other title retention agreement,
any lease in the nature thereof, any option or other agreement to sell or 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).

     "Moody’s” means Moody’s Investors Services, Inc.

     "Net Income” means, with respect to any specified Person, the net income (loss) of such
Person, determined in accordance with GAAP and before any reduction in respect of Preferred Stock
dividends, excluding, however, (i) any gain (or loss), together with any related provision for
taxes on such gain (but not loss), realized in connection with (A) any Asset Sale or (B) the
disposition of any securities by such Person or any of its Restricted Subsidiaries or the
extinguishment of any Indebtedness of such Person or any of its Restricted Subsidiaries and (ii)
any extraordinary gain (or loss), together with any related provision for taxes on such
extraordinary gain (or loss).

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     "Net Proceeds” means the aggregate cash proceeds received by the Company or any of its
Restricted Subsidiaries in respect of any Asset Sale (including, without limitation, any cash
received upon the sale or other disposition of any non-cash consideration received in any Asset
Sale), net of the direct costs relating to such Asset Sale (including, without limitation, legal,
accounting and investment banking fees, and sales commissions, recording fees, title transfer fees,
appraiser fees, costs of preparation of assets for sale) and any relocation expenses incurred as a
result of such Asset Sale, taxes paid or payable as a result of such Asset Sale (in each case,
after taking into account any available tax credits or deductions and any tax sharing
arrangements), and amounts required to be applied to the repayment of Indebtedness, other than
Senior Debt, secured by a Lien on the asset or assets that were the subject of such Asset Sale, and
any reserve for adjustment in respect of the sale price of such asset or assets established in
accordance with GAAP.

     "Non-Recourse Debt” means Indebtedness: (i) as to which neither the Company nor any of its
Restricted Subsidiaries (A) provides credit support of any kind (including any undertaking,
agreement or instrument that would constitute Indebtedness), (B) is directly or indirectly liable
(as a guarantor or otherwise) or (C) is the lender, (ii) no default with respect to which
(including any rights that the holders of the Indebtedness may have to take enforcement action
against an Unrestricted Subsidiary) would permit (upon notice, lapse of time or both) any holder of
any other Indebtedness (other than the Notes) of the Company or any of its Restricted Subsidiaries
to declare a default on such other Indebtedness or cause the payment of the Indebtedness to be
accelerated or payable prior to its Stated Maturity and (iii) as to which the lenders have been
notified in writing that they will not have any recourse to the stock (other than stock of an
Unrestricted Subsidiary pledged by the Company or any of its Restricted Subsidiaries) or assets of
the Company or any of its Restricted Subsidiaries.

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

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

     "Notes” has the meaning assigned to it in the preamble to this Indenture. The Initial Notes
and the Additional Notes shall be treated as a single class for all purposes under this Indenture,
and unless the context otherwise requires, all references to the Notes shall include the Initial
Notes and any Additional Notes.

     "Obligations” means any principal, premium and Additional Interest, if any, interest
(including interest accruing on or after the filing of any petition in bankruptcy or for
reorganization, whether or not a claim for post-filing interest is allowed in such proceeding),
penalties, fees, charges, expenses, indemnifications, reimbursement obligations (including, without
limitation, reimbursement obligations with respect to letters of credit), damages, guarantees, and
other liabilities or amounts payable under the documentation governing any Indebtedness or in
respect thereto.

     "Officer” means, with respect to any Person, the Chairman of the Board, the Chief Executive
Officer, the President, the Chief Operating Officer, the Chief Financial Officer, the

13

 

Treasurer, any Assistant Treasurer, the Controller, the Secretary, any Assistant Secretary or
any Vice-President of such Person.

     "Officer’s Certificate” means a certificate signed on behalf of the Company by an Officer of
the Company, who is the principal executive officer, the principal financial officer, the treasurer
or the principal accounting officer of the Company, that meets the requirements of Section 13.05
hereof.

     "Opinion of Counsel” means an opinion from legal counsel who is reasonably acceptable to the
Trustee, that meets the requirements of Section 13.05 hereof. The counsel may be an employee of or
counsel to the Company, any Subsidiary of the Company or the Trustee.

     "Other Taxes” means any and all present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies arising from any payment made hereunder or from
the execution, delivery or enforcement of, or otherwise with respect to, this Indenture or any
other Transaction Document.

     "Permitted Business” means the lines of business conducted by the Company and its Restricted
Subsidiaries on the Issue Date and any business incidental or reasonably related thereto or which
is a reasonable extension thereof as determined in good faith by the Board of Directors of the
Company.

     "Permitted Holders” means (i) TC Group L.L.C. (which operates under the trade name “The
Carlyle Group”), a Delaware limited liability company, and (ii) Carlyle Partners III, L.P. and its
Related Parties or any other investment fund controlled by TC Group L.L.C. For purposes of this
definition, “control” shall have the meaning given such term in the definition of the term
“Affiliate”.

     "Permitted Investment” means (i) any Investment in the Company or in a Restricted Subsidiary
of the Company; (ii) any Investment in Cash Equivalents or Foreign Cash Equivalents; (iii) any
Investment by the Company or any Restricted Subsidiary of the Company in a Person, if as a result
of such Investment (A) such Person becomes a Restricted Subsidiary of the Company or (B) such
Person is merged, consolidated or amalgamated with or into, or transfers or conveys substantially
all of its assets to, or is liquidated into, the Company or a Restricted Subsidiary of the Company;
(iv) any Investment made as a result of the receipt of non-cash consideration from an Asset Sale
that was made pursuant to and in compliance with Section 4.10 hereof; (v) any Investment solely in
exchange for the issuance of Equity Interests (other than Disqualified Stock) of the Company or
made with the proceeds of a substantially concurrent sale of such Equity Interests (other than
Disqualified Stock); (vi) any Investments received in compromise or resolution of obligations of
litigation, arbitration or other disputes; (vii) Hedging Obligations permitted to be incurred under
Section 4.09 hereof; (viii) loans and advances to officers, directors and employees in an aggregate
amount not to exceed $500,000 extended during any one fiscal year or $2.0 million outstanding at
any time; (ix) Investments of any Person (other than Indebtedness of such Person) in existence at
the time such Person becomes a Subsidiary of the Company; provided such Investment was not made in
connection with or anticipation of such Person becoming a Subsidiary of the Company; (x)
Investments in prepaid expenses, negotiable instruments held for collection and lease, utility and
workers’

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compensation, performance and other similar deposits; (xi) any Investment consisting of a
guarantee permitted under Section 4.09 hereof; (xii) Investments consisting of non-cash
consideration received in the form of securities, notes or similar obligations in connection with
dispositions of obsolete or worn out assets permitted pursuant to this Indenture; (xiii) advances,
loans or extensions of credit to suppliers in the ordinary course of business by the Company or any
of its Restricted Subsidiaries; (xiv) Investments in any Person to the extent such Investment
existed on the Issue Date and any Investment that replaces, refinances or refunds such an
Investment, provided, that the new Investment is in an amount that does not exceed that amount
replaced, refinanced or refunded and is made in the same Person as the Investment replaced,
refinanced or refunded; (xv) Investments (including debt obligations) received in connection with
the bankruptcy or reorganization of suppliers and customers and in settlement of delinquent
obligations of, and other disputes with, customers and suppliers arising in the ordinary course of
business; and (xvi) other Investments in any Person having an aggregate fair market value (measured
on the date each such Investment was made and without giving effect to subsequent changes in
value), when taken together with all other Investments made pursuant to this clause (xvi) since the
Issue Date that remain outstanding, not to exceed $25.0 million.

     "Permitted Junior Securities” means (i) Equity Interests in the Company or any direct or
indirect parent of the Company issued pursuant to a plan of reorganization or adjustment; or (ii)
unsecured debt securities that are subordinated to all Senior Debt (and any debt securities issued
in exchange for Senior Debt) to substantially the same extent as, or to a greater extent than, the
Notes are subordinated to Senior Debt pursuant to Article 11 of this Indenture.

     "Permitted Liens” means (i) Liens in favor of the Company or any Guarantor; (ii) Liens on
property of a Person existing at the time such Person is merged with or into or consolidated with
the Company or any Restricted Subsidiary of the Company, provided that such Liens were in existence
prior to the contemplation of such merger or consolidation and do not extend to any assets other
than those of the Person merged into or consolidated with the Company or the Restricted Subsidiary;
(iii) Liens on property existing at the time of acquisition of the property by the Company or any
Restricted Subsidiary of the Company, provided that such Liens were in existence prior to the
contemplation of such acquisition and do not extend to any other assets of the Company or its
Restricted Subsidiaries; (iv) Liens to secure the performance of statutory obligations, surety or
appeal bonds, performance bonds or other obligations of a like nature incurred in the ordinary
course of business; (v) Liens to secure Indebtedness (including Capital Lease Obligations)
permitted by clause (iv) of the second paragraph of Section 4.09 hereof covering only the assets
acquired with or financed by such Indebtedness; (vi) Liens for taxes, assessments or governmental
charges or claims that are not yet delinquent or that are being contested in good faith by
appropriate proceedings promptly instituted and diligently concluded, provided that any reserve or
other appropriate provision as shall be required in conformity with GAAP has been made therefor;
(vii) Liens on assets of Unrestricted Subsidiaries that secure Non-Recourse Debt of Unrestricted
Subsidiaries; (viii) Liens imposed by law, such as carriers’, warehousemen’s, landlord’s and
mechanics’ Liens, in each case, incurred in the ordinary course of business; (ix) survey
exceptions, 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 property that were not incurred in connection with Indebtedness
and that do not in the aggregate materially adversely affect the value of said

15

 

properties or materially impair their use in the operation of the business of such Person; (x)
Liens arising from Uniform Commercial Code financing statement filings by lessors regarding
operating leases entered into by such lessors and the Company and its Restricted Subsidiaries in
the ordinary course of business; (xi) Liens incurred in the ordinary course of business of the
Company or any Restricted Subsidiary of the Company with respect to obligations that do not exceed
$2.0 million at any one time outstanding; and (xxvi) Liens securing the obligations under the
Escrow Agreement.

     "Permitted Refinancing Indebtedness” means any Indebtedness of the Company or any of its
Restricted Subsidiaries issued in exchange for, or the net proceeds of which are used to extend,
refinance, renew, replace, defease or refund other Indebtedness of the Company or any of its
Restricted Subsidiaries (other than intercompany Indebtedness); provided that (i) the principal
amount (or accreted value, if applicable) of such Permitted Refinancing Indebtedness does not
exceed the principal amount of (or accreted value, if applicable) of the Indebtedness extended,
refinanced, renewed, replaced, defeased or refunded (plus all accrued interest on the Indebtedness
and the amount of all expenses and premiums incurred in connection therewith); (ii) such Permitted
Refinancing Indebtedness has a final maturity date later than the final maturity date of, and has a
Weighted Average Life to Maturity equal to or greater than the Weighted Average Life to Maturity
of, the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded; (iii) if
the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded is
subordinated in right of payment to the Notes or the Subsidiary Guarantee, as the case may be, such
Permitted Refinancing Indebtedness is subordinated in right of payment to the Notes or the
Subsidiary Guarantee, as the case may be, on terms at least as favorable to the Holders of Notes
and Subsidiary Guarantee as those contained in the documentation governing the Indebtedness being
extended, refinanced, renewed, replaced, defeased or refunded; and (iv) such Indebtedness is
incurred either by the Company or by the Restricted Subsidiary that is the obligor on the
Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded.

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

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

     "Private Placement Legend” means the legend set forth in Section 2.01(d) to be placed on all
Notes issued under this Indenture except as otherwise permitted by the provisions of this
Indenture.

     "Purchase Agreement” means (i) with respect to the Initial Notes, the Purchase Agreement,
dated as of August 17, 2004, among the Company, the Guarantors, J.P. Morgan Securities Inc., Lehman
Brothers Inc. and Credit Suisse First Boston and (ii) with respect to each issuance of Additional
Notes, the purchase agreement or underwriting agreement among the Company, the Guarantors and the
Persons purchasing such Additional Notes.

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

16

 

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

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

     "Related Party” means (i) any controlling stockholder, 80% (or more) owned Subsidiary, or
immediate family member (in the case of an individual) of any Permitted Holder; or (ii) any trust,
corporation, partnership or other entity, the beneficiaries, stockholders, partners, owners or
Persons beneficially holding an 80% or more controlling interest of which consist of any one or
more Permitted Holders and/or such other Persons referred to in the immediately preceding clause
(i).

     "Representative” means the indenture trustee or other trustee, agent or representative for any
Senior Debt.

     "Responsible Officer” when used with respect to the Trustee, means any officer within the
Corporate Trust Administration of the Trustee (or any successor group of the Trustee) with direct
responsibility for the administration of this Indenture or any other officer of the Trustee
customarily performing functions similar to those performed by any of the above designated officers
and also means, with respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of his knowledge of and familiarity with the particular subject.

     "Restricted Notes” mean Initial Notes and Additional Notes bearing one of the restrictive
legends described in Section 2.01(d).

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

     "Restricted Subsidiary” means, with respect to any Person, any Subsidiary of such Person that
is not an Unrestricted Subsidiary.

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

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

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

     "SEC” means the Securities and Exchange Commission.

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

17

 

     "Senior Debt” means (i) all Indebtedness of the Company outstanding under the Credit Agreement
and all Hedging Obligations with respect thereto, (ii) any other Indebtedness of the Company
permitted to be incurred under the terms of this Indenture, including premiums and accrued and
unpaid interest (including interest accruing on or after the filing of any petition in bankruptcy
or for reorganization relating to the Company at the rate specified in the documentation with
respect thereto whether or not a claim for post-filing interest is allowed in such proceeding),
unless the instrument under which such Indebtedness is incurred expressly provides that it is on a
parity with or subordinated in right of payment to the Notes and (iii) all Obligations with respect
to the items listed in the preceding clauses (i) and (ii). Notwithstanding anything to the
contrary in the foregoing, Senior Debt will not include (a) any liability for federal, state, local
or other taxes owed or owing by the Company, (b) any intercompany Indebtedness of the Company to
any of its Subsidiaries, (c) any accounts payable or other liability to trade creditors arising in
the ordinary course of business, (d) the portion of any Indebtedness that is incurred in violation
of this Indenture or (e) Capital Stock.

     "Shelf Registration Statement” has the meaning set forth in the Registration Rights Agreement.

     "Significant Subsidiary” means any Subsidiary which is 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.

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

     "Subsidiary” means, with respect to any specified Person, (i) any corporation, association or
other business 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 of the corporation, association or other business entity is at the
time owned or controlled, directly or indirectly, by such Person or one or more of the other
Subsidiaries of that Person (or a combination thereof) and (ii) any partnership, 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 Wholly Owned
Restricted Subsidiary of such Person is a controlling general partner or otherwise controls such
entity.

     "Subsidiary Guarantee” means any Guarantee by a Subsidiary of the Company’s payment
Obligations under this Indenture and the Notes, executed pursuant to the provisions of this
Indenture.

     "S&P” means Standard and Poor’s Rating Services.

18

 

          “TIA” means the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect
on the date on which this Indenture is qualified under TIA.

          “Total Assets” means, with respect to any Person, the total assets of such Person and its
Restricted Subsidiaries determined in accordance with GAAP, as shown on its most recent balance
sheet.

          “Transaction Documents” means this Indenture, the Notes, the Purchase Agreement and the
Registration Rights Agreement.

          “Transactions” means the transactions contemplated by (i) the Acquisition Agreement, (ii) the
Credit Agreement and (iii) the offering of the Notes.

          “Treasury Rate” means, as of the applicable redemption date, the yield to maturity as of such
redemption date of United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519) that has become
publicly available at least two business days prior to the redemption date (or, if such Statistical
Release is no longer published, any publicly available source of similar market data)) most nearly
equal to the period from the redemption date to September 1, 2009; provided, however, that if the
period from the redemption date to September 1, 2009 is less than one year, the weekly average
yield on actually traded United States Treasury securities adjusted to a constant maturity of one
year will be used.

          “Trustee” means the party named as such in the preamble to this Indenture until a successor
replaces it in accordance with the applicable provisions of this Indenture and thereafter means the
successor serving hereunder.

          “Unrestricted Subsidiary” means any Subsidiary of the Company (other than the Subsidiaries of
the Company on the Issue Date or any successor to any of them) that is designated by the Board of
Directors as an Unrestricted Subsidiary (and any Subsidiary of an Unrestricted Subsidiary) pursuant
to a resolution of the Board of Directors, but only to the extent that such Subsidiary: (i) has no
Indebtedness other than Non-Recourse Debt; (ii) is not party to any agreement, contract,
arrangement or understanding with the Company or any Restricted Subsidiary of the Company unless
the terms of any such agreement, contract, arrangement or understanding are no less favorable to
the Company or such Restricted Subsidiary than those that might be obtained at the time from
Persons who are not Affiliates of the Company; (iii) is a Person with respect to which neither the
Company nor any of its Restricted Subsidiaries has any direct or indirect obligation (A) to
subscribe for additional Equity Interests or (B) to maintain or preserve such Person’s financial
condition or to cause such Person to achieve any specified levels of operating results; and (iv)
does not own any Equity Interests or Indebtedness of, or own or hold any Lien on, any property of,
the Company or any Subsidiary of the Company (other than any Subsidiary of the Subsidiary to be so
designated) and has not guaranteed or otherwise directly or indirectly provided credit support for
any Indebtedness of the Company or any of its Restricted Subsidiaries. Any such designation by the
Board of Directors, of a Subsidiary of the Company as an Unrestricted Subsidiary shall be evidenced
to the Trustee by filing with the Trustee a certified copy of a resolution of the Board of
Directors giving effect to such designation and an Officer’s Certificate certifying that such
designation complied with the

19

 

foregoing conditions and was permitted by Section 4.07 and Section 4.19 hereof. If, at any
time, any Unrestricted Subsidiary would fail to meet the foregoing requirements as an Unrestricted
Subsidiary, it shall thereafter cease to be an Unrestricted Subsidiary for purposes of this
Indenture and any Indebtedness and Preferred Stock of such Subsidiary shall be deemed to be
incurred by a Restricted Subsidiary of the Company as of such date and, if such Indebtedness or
Preferred Stock is not permitted to be incurred as of such date under Section 4.09 hereof, the
Company will be in default of such covenant. The Board of Directors of the Company may at any time
designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided that such designation
will be deemed to be an incurrence of Indebtedness or Preferred Stock by a Restricted Subsidiary of
the Company of any outstanding Indebtedness or Preferred Stock, as the case may be, of such
Unrestricted Subsidiary and such designation will only be permitted if (i) such Indebtedness and
Preferred Stock is permitted under Section 4.09 hereof, calculated on a pro forma basis as if such
designation had occurred at the beginning of the four-quarter reference period, and (ii) no Default
or Event of Default would be in existence following such designation.

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

          “Voting Stock” of any Person as of any date means the Capital 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 at any date, the
number of years obtained by dividing (i) the sum of the products obtained by multiplying (A) the
amount of each then remaining installment, sinking fund, serial maturity or other required payments
of principal, including payment at final maturity, in respect of such Indebtedness, by (B) the
number of years (calculated to the nearest one-twelfth) that will elapse between such date and the
making of such payment, by (ii) the then outstanding principal amount of such Indebtedness.

          “Wholly Owned Restricted Subsidiary” is 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’ qualifying
shares and shares issued to foreign nationals under applicable law) shall at the time be owned by
such Person or by one or more Wholly Owned Subsidiaries of such Person or by such Person and one or
more Wholly Owned Subsidiaries of such Person.

Section 1.02 Other Definitions.

	 	 	 	 	 
	 	 	Defined in	 
	Term	 	Section	 
	 
	 	 	 	 
	“Additional Restricted Notes”
	 	 	2.03	 
	“Affiliate Transaction”
	 	 	4.11	 
	“Agent Members”
	 	 	2.01	(e)
	“Asset Sale Offer”
	 	 	3.09	 

20

 

	 	 	 	 	 
	 	 	Defined in	 
	Term	 	Section	 
	 
	 	 	 	 
	“Authenticating Agent”
	 	 	2.02	 
	“Change of Control Offer”
	 	 	4.15	 
	“Change of Control Payment”
	 	 	4.15	 
	“Change of Control Payment Date”
	 	 	4.15	 
	“Clearstream”
	 	 	2.01	(b)
	“Company”
	 	preamble
	“Company Order”
	 	 	2.02	 
	“Covenant Defeasance”
	 	 	8.03	 
	“Defaulted Interest”
	 	 	2.13	 
	“Euroclear”
	 	 	2.01	(b)
	“Event of Default”
	 	 	6.01	 
	“Excess Proceeds”
	 	 	4.10	 
	“Exchange Global Note”
	 	 	2.01	(b)
	“incur”
	 	 	4.09	 
	“Initial Purchasers”
	 	 	2.01	(b)
	“Institutional Accredited Investor Global Note”
	 	 	2.01	(b)
	“Institutional Accredited Investor Note”
	 	 	2.01	(b)
	“Legal Defeasance”
	 	 	8.02	 
	“Non-Excluded Taxes”
	 	 	10.05	 
	“Notes Register”
	 	 	2.03	 
	“Offer Amount”
	 	 	3.09	 
	“Offer Period”
	 	 	3.09	 
	“Paying Agent”
	 	 	2.03	 
	“Payment Blockage Notice”
	 	 	11.03	 
	“Payment Default”
	 	 	6.01	 
	“Permanent Regulation S Global Note”
	 	 	2.01	(b)
	“Permitted Debt”
	 	 	4.09	 
	“protected purchaser”
	 	 	2.09	 
	“Purchase Date”
	 	 	3.09	 
	“Registrar”
	 	 	2.03	 
	“Regulation S Global Note”
	 	 	2.01	(b)
	“Regulation S Legend”
	 	 	2.01	(d)
	“Regulation S Notes”
	 	 	2.01	(d)
	“Resale Restriction Termination Date”
	 	 	2.06	(a)
	“Restricted Payments”
	 	 	4.07	 
	“Restricted Period”
	 	 	2.01	(b)
	“Rule 144A Global Note”
	 	 	2.01	(b)
	“Rule 144A Notes”
	 	 	2.01	(b)
	“Securities Register”
	 	 	2.03	 
	“Special Interest Payment Date”
	 	 	2.13	(a)
	“Special Record Date”
	 	 	2.13	(a)
	“Special Redemption
	 	 	3.10	 
	“Special Redemption Date”
	 	 	3.10	 

21

 

	 	 	 	 	 
	 	 	Defined in	 
	Term	 	Section	 
	 
	 	 	 	 
	“Special Redemption Price”
	 	 	3.10	 
	“Successor Company”
	 	 	5.01	 
	“Temporary Regulation S Global Note”
	 	 	2.01	(b)

Section 1.03 Incorporation by Reference of Trust Indenture Act.

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

          The following TIA terms used in this Indenture have the following meanings:

          “indenture securities” means the Notes;

          “indenture security Holder” means a Holder of a Note;

          “indenture to be qualified” means this Indenture;

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

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

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

Section 1.04 Rules of Construction.

          Unless the context otherwise requires:

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

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

     (iii) “or” is not exclusive;

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

     (v) provisions apply to successive events and transactions; and

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

22

 

ARTICLE 2.

THE NOTES

Section 2.01 Form, Dating and Terms.

          (a) The aggregate principal amount of Notes that may be authenticated and delivered under this
Indenture is unlimited. The Initial Notes issued on the date hereof will be in an aggregate
principal amount of $200,000,000. In addition, the Company may issue, from time to time in
accordance with the provisions of this Indenture, Additional Notes (as provided herein) and
Exchange Notes. Furthermore, Notes may be authenticated and delivered upon registration of
transfer, exchange or in lieu of, other Notes pursuant to Section 2.01, 2.02, 2.06, 2.10, 2.12,
3.06 or 9.05, in connection with an Asset Sale Offer pursuant to Section 3.09 or in connection with
a Change of Control Offer pursuant to Section 4.15.

          The Initial Notes shall be known and designated as “81/4% Senior Subordinated Notes, Series A,
due 2014” of the Company. Additional Notes issued as Restricted Notes shall be known and
designated as “81/4% Senior Subordinated Notes, Series A, due 2014” of the Company. Additional Notes
issued other than as Restricted Notes shall be known and designated as “81/4% Senior Subordinated
Notes, Series B, due 2014” of the Company, and Exchange Notes shall be known and designated as “81/4%
Senior Subordinated Notes, Series B, due 2014” of the Company.

          With respect to any Additional Notes, the Company shall set forth in (a) a Board Resolution
and (b) (i) an Officers’ Certificate or (ii) one or more indentures supplemental hereto, the
following information:

     (1) the aggregate principal amount of such Additional Notes to be authenticated and
delivered pursuant to this Indenture;

     (2) the issue price and the issue date of such Additional Notes, including the date
from which interest shall accrue; and

     (3) whether such Additional Notes shall be Restricted Notes issued in the form of
Exhibit A hereto and/or shall be issued in the form of Exhibit B hereto.

          In authenticating and delivering Additional Notes, the Trustee shall be entitled to receive
and shall be fully protected in relying upon, in addition to the Opinion of Counsel and Officers’
Certificate required by Section 13.04, an Opinion of Counsel as to the due authorization,
execution, delivery, validity and enforceability of such Additional Notes.

          The Initial Notes, the Additional Notes and the Exchange Notes shall be considered
collectively as a single class for all purposes of this Indenture. Holders of the Initial Notes,
the Additional Notes and the Exchange Notes will vote and consent together on all matters to which
such Holders are entitled to vote or consent as one class, and none of the Holders of the Initial
Notes, the Additional Notes or the Exchange Notes shall have the right to vote or consent as a
separate class on any matter to which such Holders are entitled to vote or consent.

23

 

          If any of the terms of any Additional Notes are established by action taken pursuant to Board
Resolutions of the Company, a copy of an appropriate record of such action shall be certified by
the Secretary or any Assistant Secretary of the Company and delivered to the Trustee at or prior to
the delivery of the Officers’ Certificate or the indenture supplemental hereto setting forth the
terms of the Additional Notes.

          (b) The Initial Notes are being offered and sold by the Company pursuant to a Purchase
Agreement, dated August 17, 2004, among the Company, the Guarantors, J.P. Morgan Securities Inc.
and the other Initial Purchasers named therein (collectively, the “Initial Purchasers”). The
Initial Notes and any Additional Notes (if issued as Restricted Notes) (the “Additional Restricted
Notes”) will be resold initially only to (A) QIBs in reliance on Rule 144A and (B) Non-U.S. Persons
in reliance on Regulation S. Such Initial Notes and Additional Restricted Notes may thereafter be
transferred to, among others, QIBs, purchasers in reliance on Regulation S and IAIs in accordance
with Rule 501 of the Securities Act, in each case, in accordance with the procedure described
herein. Additional Notes offered after the date hereof may be offered and sold by the Company from
time to time pursuant to one or more purchase agreements in accordance with applicable law.

          Initial Notes and Additional Restricted Notes offered and sold to QIBs in the United States of
America in reliance on Rule 144A (the “Rule 144A Notes”) shall be issued in the form of a permanent
global Note substantially in the form of Exhibit A, which is hereby incorporated by
reference and made a part of this Indenture, including appropriate legends as set forth in Section
2.01(d) (the “Rule 144A Global Note”), deposited with the Trustee, as custodian for DTC, duly
executed by the Company and authenticated by the Trustee as hereinafter provided. The Rule 144A
Global Note may be represented by more than one certificate, if so required by DTC’s rules
regarding the maximum principal amount to be represented by a single certificate. The aggregate
principal amount of the Rule 144A Global Note may from time to time be increased or decreased by
adjustments made on the records of the Trustee, as custodian for DTC or its nominee, as hereinafter
provided.

          Initial Notes and any Additional Restricted Notes offered and sold outside the United States
of America (the “Regulation S Notes”) in reliance on Regulation S shall initially be issued in the
form of a temporary global Note (the “Temporary Regulation S Global Note”), without interest
coupons. Beneficial interests in the Temporary Regulation S Global Note will be exchanged for
beneficial interests in a corresponding permanent global Note, without interest coupons,
substantially in the form of Exhibit A including appropriate legends as set forth in
Section 2.01(d) (the “Permanent Regulation S Global Note” and, together with the Temporary
Regulation S Global Note, each a “Regulation S Global Note”) within a reasonable period after the
expiration of the Restricted Period (as defined below) upon delivery of the certification
contemplated by Section 2.07. Each Regulation S Global Note will be deposited upon issuance with,
or on behalf of, the Trustee as custodian for DTC in the manner described in this Article 2
for credit to the respective accounts of the purchasers (or to such other accounts as they may
direct), including, but not limited to, accounts at Euroclear Bank S.A./N.V. (“Euroclear”) or
Clearstream Banking, société anonyme (“Clearstream”). Prior to the 40th day after the later of the
commencement of the offering of the Initial Notes and the Issue Date (such period through and
including such 40th day, the “Restricted Period”), interests in the Temporary Regulation S Global
Note may only be transferred to non-U.S. persons pursuant to Regulation S, unless

24

 

exchanged for interests in a Global Note in accordance with the transfer and certification
requirements described herein.

          Investors may hold their interests in the Regulation S Global Note through organizations other
than Euroclear or Clearstream that are participants in DTC’s system or directly through Euroclear
or Clearstream, if they are participants in such systems, or indirectly through organizations which
are participants in such systems. If such interests are held through Euroclear or Clearstream,
Euroclear and Clearstream will hold such interests in the applicable Regulation S Global Note on
behalf of their participants through customers’ Notes accounts in their respective names on the
books of their respective depositaries. Such depositaries, in turn, will hold such interests in
the applicable Regulation S Global Note in customers’ Notes accounts in the depositaries’ names on
the books of DTC.

          The Regulation S Global Note may be represented by more than one certificate, if so required
by DTC’s rules regarding the maximum principal amount to be represented by a single certificate.
The aggregate principal amount of the Regulation S Global Note may from time to time be increased
or decreased by adjustments made on the records of the Trustee, as custodian for DTC or its
nominee, as hereinafter provided.

          Initial Notes and Additional Restricted Notes resold to IAIs (the “Institutional Accredited
Investor Notes”) in the United States of America shall be issued in the form of a permanent global
Note substantially in the form of Exhibit A including appropriate legends as set forth in
Section 2.01(d) (the “Institutional Accredited Investor Global Note”) deposited with the Trustee,
as custodian for DTC, duly executed by the Company and authenticated by the Trustee as hereinafter
provided. The Institutional Accredited Investor Global Note may be represented by more than one
certificate, if so required by DTC’s rules regarding the maximum principal amount to be represented
by a single certificate. The aggregate principal amount of the Institutional Accredited Investor
Global Note may from time to time be increased or decreased by adjustments made on the records of
the Trustee, as custodian for DTC or its nominee, as hereinafter provided.

          Exchange Notes exchanged for interests in the Rule 144A Notes, the Regulation S Notes and the
Institutional Accredited Investor Notes will be issued in the form of a permanent global Note,
substantially in the form of Exhibit B, which is hereby incorporated by reference and made
a part of this Indenture, deposited with the Trustee as hereinafter provided, including the
appropriate legend set forth in Section 2.01(d) (the “Exchange Global Note”). The Exchange Global
Note will be deposited upon issuance with, or on behalf of, the Trustee as custodian for DTC, duly
executed by the Company and authenticated by the Trustee as hereinafter provided. The Exchange
Global Note may be represented by more than one certificate, if so required by DTC’s rules
regarding the maximum principal amount to be represented by a single certificate.

          The Rule 144A Global Note, the Regulation S Global Note, the Institutional Accredited Investor
Global Note and the Exchange Global Note are sometimes collectively herein referred to as the
"Global Notes.”

          The principal of (and premium, if any) and interest on the Notes shall be payable at the
office or agency of the Company maintained for such purpose in The City of New York, or

25

 

at such other office or agency of the Company as may be maintained for such purpose pursuant
to Section 2.03; provided, however, that, at the option of the Company, each installment of
interest may be paid by (i) check mailed to addresses of the Persons entitled thereto as such
addresses shall appear on the note register (the “Notes
Register”) or (ii) wire transfer to an
account located in the United States maintained by the payee, subject to the last sentence of this
paragraph. Payments in respect of Notes represented by a Global Note (including principal,
premium, if any, and interest) will be made by wire transfer of immediately available funds to the
accounts specified by DTC. Payments in respect of Notes represented by Definitive Notes (including
principal, premium, if any, and interest) held by a Holder of at least $1,000,000 aggregate
principal amount of Notes represented by Definitive Notes will be made by wire transfer to a U.S.
dollar account maintained by the payee with a bank in the United States if such Holder elects
payment by wire transfer by giving written notice to the Trustee or the Paying Agent to such effect
designating such account no later than 15 days immediately preceding the relevant due date for
payment (or such other date as the Trustee may accept in its discretion).

          The Notes may have notations, legends or endorsements required by law, stock exchange rule or
usage, in addition to those set forth on Exhibit A and Exhibit B and in Section
2.01(d). The Company shall approve any notation, endorsement or legend on the Notes. Each Note
shall be dated the date of its authentication. The terms of the Notes set forth in Exhibit
A and Exhibit B are part of the terms of this Indenture and, to the extent applicable,
the Company, the Guarantors and the Trustee, by their execution and delivery of this Indenture,
expressly agree to be bound by such terms.

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

          (d) Restrictive Legends. Unless and until (i) an Initial Note or an Additional Note
issued as a Restricted Note is sold under an effective registration statement or (ii) an Initial
Note or an Additional Note issued as a Restricted Note is exchanged for an Exchange Note in
connection with an effective registration statement, in each case pursuant to the Registration
Rights Agreement or a similar agreement, (1) the Rule 144A Global Note and the Institutional
Accredited Investor Global Note shall bear the following legend (the “Private Placement Legend”) on
the face thereof:

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH
REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN
BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO
OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION
TERMINATION DATE”) THAT IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND
THE LAST DATE

26

 

ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY
PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE COMPANY, (B) PURSUANT TO A REGISTRATION
STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE
SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A
PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES
WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL
“ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501(A)(1), (2), (3) OR (7) UNDER THE
SECURITIES ACT THAT IS AN INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN
A MINIMUM PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT
WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE
SECURITIES ACT, OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR
TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE
DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO
EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE
RESTRICTION TERMINATION DATE.

BY ITS ACQUISITION OF THIS SECURITY THE HOLDER HEREOF WILL BE DEEMED TO HAVE REPRESENTED AND
WARRANTED THAT EITHER (I) NO PORTION OF THE ASSETS USED BY SUCH HOLDER TO ACQUIRE AND HOLD
THIS SECURITY CONSTITUTES THE ASSETS OF AN EMPLOYEE BENEFIT PLAN THAT IS SUBJECT TO TITLE I
OF THE U.S. EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OF PLANS,
INDIVIDUAL RETIREMENT ACCOUNTS OR OTHER ARRANGEMENTS THAT ARE SUBJECT TO SECTION 4975 OF THE
U.S. INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR PROVISIONS UNDER ANY
FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SIMILAR TO SUCH
PROVISIONS OF ERISA OR THE CODE (“SIMILAR LAWS”), OR OF AN ENTITY WHOSE UNDERLYING ASSETS
ARE CONSIDERED TO INCLUDE “PLAN ASSETS” OF SUCH PLANS, ACCOUNTS OR ARRANGEMENTS, OR (II) THE
PURCHASE AND HOLDING OF THIS SECURITY WILL NOT CONSTITUTE A NON-EXEMPT PROHIBITED
TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR A SIMILAR VIOLATION
UNDER ANY APPLICABLE SIMILAR LAWS.

27

 

     (2) the Regulation S Global Note shall bear the following legend (the “Regulation S
Legend”) on the face thereof:

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR
TO OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH IN THE FOLLOWING
SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT IT IS NOT A U.S. PERSON
NOR IS IT PURCHASING FOR THE ACCOUNT OF A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN
OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT (“REGULATION
S”), (2) BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR
ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH
SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT IS 40 DAYS
AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR
ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH
SECURITY), ONLY (A) TO THE COMPANY, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN
DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE
FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY
BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER
TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D)
PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF
REGULATION S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN
THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS AN
INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL
AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR
OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (F)
PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER,
SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION
OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS
LEGEND WILL BE REMOVED AFTER 40 CONSECUTIVE DAYS BEGINNING ON AND INCLUDING THE LATER OF (A)
THE DAY ON WHICH THE SECURITIES ARE OFFERED TO PERSONS OTHER THAN DISTRIBUTORS (AS DEFINED
IN REGULATION S)

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AND (B) THE DATE OF THE CLOSING OF THE ORIGINAL OFFERING. AS USED HEREIN, THE TERMS
“OFFSHORE TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANINGS GIVEN TO THEM BY
REGULATION S UNDER THE SECURITIES ACT.

BY ITS ACQUISITION OF THIS SECURITY THE HOLDER HEREOF WILL BE DEEMED TO HAVE REPRESENTED AND
WARRANTED THAT EITHER (I) NO PORTION OF THE ASSETS USED BY SUCH HOLDER TO ACQUIRE AND HOLD
THIS SECURITY CONSTITUTES THE ASSETS OF AN EMPLOYEE BENEFIT PLAN THAT IS SUBJECT TO TITLE I
OF THE U.S. EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OF PLANS,
INDIVIDUAL RETIREMENT ACCOUNTS OR OTHER ARRANGEMENTS THAT ARE SUBJECT TO SECTION 4975 OF THE
U.S. INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR PROVISIONS UNDER ANY
FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SIMILAR TO SUCH
PROVISIONS OF ERISA OR THE CODE (“SIMILAR LAWS”), OR OF AN ENTITY WHOSE UNDERLYING ASSETS
ARE CONSIDERED TO INCLUDE “PLAN ASSETS” OF SUCH PLANS, ACCOUNTS OR ARRANGEMENTS, OR (II) THE
PURCHASE AND HOLDING OF THIS SECURITY WILL NOT CONSTITUTE A NON-EXEMPT PROHIBITED
TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR A SIMILAR VIOLATION
UNDER ANY APPLICABLE SIMILAR LAWS.

     (3) Each Global Note, whether or not an Initial Note, shall bear the following legend
on the face thereof:

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

TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
DTC, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS
OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

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          (e) Book-Entry Provisions. (i) This Section 2.01(e) shall apply only to Global Notes
deposited with the Trustee, as custodian for DTC.

     (ii) Each Global Note initially shall (x) be registered in the name of DTC or the
nominee of DTC, (y) be delivered to the Trustee as custodian for DTC and (z) bear legends as
set forth in Section 2.01(d).

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

     (iv) In connection with any transfer of a portion of the beneficial interest in a
Global Note pursuant to Section 2.01(f) to beneficial owners who are required to hold
Definitive Notes, the Note Custodian shall reflect on its books and records the date and a
decrease in the principal amount of such Global Note in an amount equal to the principal
amount of the beneficial interest in the Global Note to be transferred, and the Company
shall execute, and the Trustee shall authenticate and make available for delivery, one or
more Definitive Notes of like tenor and amount.

     (v) In connection with the transfer of an entire Global Note to beneficial owners
pursuant to Section 2.01(f), such Global Note shall be deemed to be surrendered to the
Trustee for cancellation, and the Company shall execute, and the Trustee shall authenticate
and make available for delivery, to each beneficial owner identified by DTC in exchange for
its beneficial interest in such Global Note, an equal aggregate principal amount of
Definitive Notes of authorized denominations.

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

     (vii) Any Holder of a Global Note shall, by acceptance of such Global Note, agree that
transfers of beneficial interests in such Global Note may be effected only through a
book-entry system maintained by (a) the Holder of such Global Note (or its agent) or (b) any
Holder of a beneficial interest in such Global Note, and that ownership of a beneficial
interest in such Global Note shall be required to be reflected in a book entry.

          (f) Definitive Notes. (i) Except as provided below, owners of beneficial interests
in Global Notes shall not be entitled to receive Definitive Notes. If required to do so

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pursuant to any applicable law or regulation, beneficial owners may obtain Definitive Notes in
exchange for their beneficial interests in a Global Note upon written request in accordance with
DTC’s and the Registrar’s procedures. In addition, Definitive Notes shall be transferred to all
beneficial owners in exchange for their beneficial interests in a Global Note if (A) DTC notifies
the Company that it is unwilling or unable to continue as depositary for such Global Note or DTC
ceases to be a clearing agency registered under the Exchange Act, at a time when DTC is required to
be so registered in order to act as depositary, and in each case a successor depositary is not
appointed by the Company within 90 days of such notice or, (B) the Company in its sole discretion
executes and delivers to the Trustee and Registrar an Officers’ Certificate stating that such
Global Note shall be so exchangeable or (C) an Event of Default has occurred and is continuing and
the Registrar has received a request from DTC. In the event of the occurrence of any of the events
specified in clause (A), (B) or (C) of the preceding sentence, the Company shall promptly make
available to the Trustee a reasonable supply of Definitive Notes.

     (ii) Any Definitive Note delivered in exchange for an interest in a Global Note pursuant
to Section 2.01(e)(iv) or (v) shall, except as otherwise provided by Section 2.06(c), bear
the applicable legend regarding transfer restrictions applicable to the Definitive Note set
forth in Section 2.01(d).

     (iii) In connection with the exchange of a portion of a Definitive Note for a beneficial
interest in a Global Note, the Trustee shall cancel such Definitive Note, and the Company
shall execute, and the Trustee shall authenticate and make available for delivery, to the
transferring Holder a new Definitive Note representing the principal amount not so
transferred.

Section 2.02 Execution and Authentication. One Officer shall sign the Notes for the Company
by manual or facsimile signature. If the Officer whose signature is on a Note no longer holds that
office at the time the Trustee authenticates the Note, the Note shall be valid nevertheless.

          A Note shall not be valid until an authorized officer of the Trustee manually authenticates
the Note. The signature of the Trustee on a Note shall be conclusive evidence that such Note has
been duly and validly authenticated and issued under this Indenture. A Note shall be dated the
date of its authentication.

          At any time and from time to time after the execution and delivery of this Indenture, the
Trustee shall authenticate and make available for delivery: (1) Initial Notes for original issue
on the Issue Date in an aggregate principal amount of $200,000,000, (2) subject to the terms of
this Indenture, Additional Notes for original issue in an unlimited principal amount and (3)
Exchange Notes for issue only in an Exchange Offer pursuant to the Registration Rights Agreement or
upon resale under an effective Shelf Registration Statement, and only in exchange for Initial Notes
or Additional Notes of an equal principal amount, in each case upon a written order of the Company
signed by one Officer of the Company (the “Company Order”). Such Company Order shall specify
whether the Notes will be in the form of Definitive Notes or Global Notes, the amount of the Notes
to be authenticated and the date on which the original issue of Notes is to be authenticated and whether the Notes are to be Initial Notes, Additional Notes
or Exchange Notes.

31

 

          The Trustee may appoint an agent (the “Authenticating Agent”) reasonably acceptable to the
Company to authenticate the Notes. Any such instrument shall be evidenced by an instrument signed
by a Responsible Officer, a copy of which shall be furnished to the Company. Unless limited by the
terms of such appointment, any such Authenticating Agent may authenticate Notes whenever the
Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes
authentication by the Authenticating Agent. An Authenticating Agent has the same rights as any
Registrar, Paying Agent or agent for service of notices and demands.

          In case the Company or any Guarantor, pursuant to Article 5 or Section 10.03, as applicable,
shall be consolidated or merged with or into any other Person or shall convey, transfer, lease or
otherwise dispose of its properties and assets substantially as an entirety to any Person, and the
successor Person resulting from such consolidation, or surviving such merger, or into which the
Company or any Guarantor shall have been merged, or the Person which shall have received a
conveyance, transfer, lease or other disposition as aforesaid, shall have executed an indenture
supplemental hereto with the Trustee pursuant to Article 5, or Section 10.03, as applicable, any of
the Notes authenticated or delivered prior to such consolidation, merger, conveyance, transfer,
lease or other disposition may, from time to time, at the request of the successor Person, be
exchanged for other Notes executed in the name of the successor Person with such changes in
phraseology and form as may be appropriate, but otherwise in substance of like tenor as the Notes
surrendered for such exchange and of like principal amount; and the Trustee, upon Company Order of
the successor Person, shall authenticate and make available for delivery Notes as specified in such
order for the purpose of such exchange. If Notes shall at any time be authenticated and delivered
in any new name of a successor Person pursuant to this Section 2.02 in exchange or substitution for
or upon registration of transfer of any Notes, such successor Person, at the option of the Holders
but without expense to them, shall provide for the exchange of all Notes at the time outstanding
for Notes authenticated and delivered in such new name.

Section 2.03 Registrar and Paying Agent. The Company shall maintain an office or agency where
Notes may be presented for registration of transfer or for exchange (the “Registrar”) and an office
or agency where Notes may be presented for payment (the “Paying Agent”). The Registrar shall keep
a register of the Notes and of their transfer and exchange (the “Notes Register”). The Company may
have one or more co-registrars and one or more additional paying agents. The term “Paying Agent”
includes any additional paying agent and the term “Registrar” includes any co-registrar.

          The Company shall enter into an appropriate agency agreement with any Registrar or Paying
Agent not a party to this Indenture, which shall incorporate the terms of the TIA. The agreement
shall implement the provisions of this Indenture that relate to such agent. The Company shall
notify the Trustee of the name and address of each such agent. If the Company fails to maintain a
Registrar or Paying Agent, the Trustee shall act as such and shall be entitled to appropriate
compensation therefor pursuant to Section 7.07. The Company or any of its Wholly Owned Subsidiaries organized in the United States may act as Paying Agent,
Registrar or transfer agent.

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          The Company initially appoints the Trustee as Registrar and Paying Agent for the Notes. The
Company may remove any Registrar or Paying Agent upon written notice to such Registrar or Paying
Agent and to the Trustee; provided, however, that no such removal shall become effective until (i)
acceptance of any appointment by a successor as evidenced by an appropriate agreement entered into
by the Company and such successor Registrar or Paying Agent, as the case may be, and delivered to
the Trustee or (ii) notification to the Trustee that the Trustee shall serve as Registrar or Paying
Agent until the appointment of a successor in accordance with clause (i) above. The Registrar or
Paying Agent may resign at any time upon written notice to the Company and the Trustee.

Section 2.04 Paying Agent to Hold Money in Trust. By no later than 10:00 a.m. Eastern Time on
the date on which any principal of, premium, if any, or interest on any Note is due and payable,
the Company shall deposit with the Paying Agent a sum sufficient in immediately available funds to
pay such principal, premium or interest when due. The Company shall require each Paying Agent
(other than the Trustee) to agree in writing that such Paying Agent shall hold in trust for the
benefit of Holders or the Trustee all money held by such Paying Agent for the payment of principal
of, premium, if any, or interest on the Notes (whether such assets have been distributed to it by
the Company or other obligors on the Notes), shall notify the Trustee in writing of any default by
the Company or any Guarantor in making any such payment and shall during the continuance of any
default by the Company (or any other obligor upon the Notes) in the making of any payment in
respect of the Notes, upon the written request of the Trustee, forthwith deliver to the Trustee all
sums held in trust by such Paying Agent for payment in respect of the Notes together with a full
accounting thereof. If the Company or a Subsidiary of the Company acts as Paying Agent, it shall
segregate the money held by it as Paying Agent and hold it as a separate trust fund. The Company
at any time may require a Paying Agent (other than the Trustee) to pay all money held by it to the
Trustee and to account for any funds or assets disbursed by such Paying Agent. Upon complying with
this Section 2.04, the Paying Agent (if other than the Company or a Subsidiary of the Company)
shall have no further liability for the money delivered to the Trustee. Upon any bankruptcy,
reorganization or similar proceeding with respect to the Company, the Trustee shall serve as Paying
Agent for the Notes.

Section 2.05 Holder Lists. The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of Holders and shall
otherwise comply with TIA § 312(a). If the Trustee is not the Registrar, or to the extent
otherwise required under the TIA, the Company, on its own behalf and on behalf of each of the
Guarantors, shall furnish or cause the Registrar to furnish to the Trustee, in writing at least
five Business Days before each interest payment date and at such other times as the Trustee may
request in writing, a list in such form and as of such date as the Trustee may reasonably require
of the names and addresses of Holders and the Company shall otherwise comply with TIA § 312(a).

Section 2.06 Transfer and Exchange.

          (a) The following provisions shall apply with respect to any proposed registration of transfer
of a Rule 144A Note or an Institutional Accredited Investor Note prior to the date which is two
years after the later of the date of its original issue and the last date on

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which the Company or any Affiliate of the Company was the owner of such Notes (or any predecessor thereto) (the “Resale
Restriction Termination Date”):

     (i) a registration of transfer of a Rule 144A Note or an Institutional Accredited
Investor Note or a beneficial interest therein to a QIB shall be made upon the
representation of the transferee in the form as set forth on the reverse of the Note that it
is purchasing for its own account or an account with respect to which it exercises sole
investment discretion and that it and any such account is a “qualified institutional buyer”
within the meaning of Rule 144A, and is aware that the sale to it is being made in reliance
on Rule 144A and acknowledges that it has received such information regarding the Company as
the undersigned has requested pursuant to Rule 144A or has determined not to request such
information and that it is aware that the transferor is relying upon its foregoing
representations in order to claim the exemption from registration provided by Rule 144A;

     (ii) a registration of transfer of a Rule 144A Note or an Institutional Accredited
Investor Note or a beneficial interest therein to an IAI shall be made upon receipt by the
Trustee or its agent of a certificate substantially in the form set forth in Section 2.08
from the proposed transferee and, if requested by the Company, the delivery of an opinion of
counsel, certification and/or other information satisfactory to it; and

     (iii) a registration of transfer of a Rule 144A Note or an Institutional Accredited
Investor Note or a beneficial interest therein to a Non-U.S. Person shall be made upon
receipt by the Trustee or its agent of a certificate substantially in the form set forth in
Section 2.09 from the proposed transferee and, if requested by the Company, the delivery of
an opinion of counsel, certification and/or other information satisfactory to it.

          (b) The following provisions shall apply with respect to any proposed transfer of a Regulation
S Note prior to the expiration of the Restricted Period:

     (i) a transfer of a Regulation S Note or a beneficial interest therein to a QIB shall
be made upon the representation of the transferee, in the form of assignment on the reverse
of the certificate, that it is purchasing the Note for its own account or an account with
respect to which it exercises sole investment discretion and that it and any such account is
a “qualified institutional buyer” within the meaning of Rule 144A, and is aware that the
sale to it is being made in reliance on Rule 144A and acknowledges that it has received such
information regarding the Company as the undersigned has requested pursuant to Rule 144A or
has determined not to request such information and that it is aware that the transferor is
relying upon its foregoing representations in order to claim the exemption from registration
provided by Rule 144A;

     (ii) a transfer of a Regulation S Note or a beneficial interest therein to an IAI shall
be made upon receipt by the Trustee or its agent of a certificate substantially in the form
set forth in Section 2.08 from the proposed transferee and, if requested by the Company or
the Trustee, the delivery of an opinion of counsel, certification and/or other information
satisfactory to each of them; and

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     (iii) a transfer of a Regulation S Note or a beneficial interest therein to a Non-U.S.
Person shall be made upon receipt by the Trustee or its agent of a certificate substantially
in the form set forth in Section 2.09 hereof from the proposed transferee and, if requested
by the Company, receipt by the Trustee or its agent of an opinion of counsel, certification
and/or other information satisfactory to the Company.

          After the expiration of the Restricted Period, interests in the Regulation S Note may be
transferred in accordance with applicable law without requiring the certification set forth in
Section 2.08, Section 2.09 or any additional certification.

          (c) Private Placement Legend. Upon the transfer, exchange or replacement of Notes not
bearing a Private Placement Legend, the Registrar shall deliver Notes that do not bear a Private
Placement Legend. Upon the transfer, exchange or replacement of Notes bearing a Private Placement
Legend, the Registrar shall deliver only Notes that bear a Private Placement Legend unless (i)
Initial Notes are being exchanged for Exchange Notes in an Exchange Offer in which case the
Exchange Notes shall not bear a Private Placement Legend, (ii) an Initial Note is being transferred
pursuant to the Shelf Registration Statement or other effective registration statement or (iii)
there is delivered to the Registrar an Opinion of Counsel reasonably satisfactory to the Company
and the Trustee to the effect that neither such legend nor the related restrictions on transfer are
required in order to maintain compliance with the provisions of the Securities Act. Any Additional
Notes sold in a registered offering shall not be required to bear the Private Placement Legend.

          (d) The Registrar shall retain copies of all letters, notices and other written communications
received pursuant to Section 2.01 or this Section 2.06. The Company shall have the right to
inspect and make copies of all such letters, notices or other written communications at any
reasonable time upon the giving of reasonable prior written notice to the Registrar.

          (e) Obligations with Respect to Transfers and Exchanges of Notes.

     (i) To permit registrations of transfers and exchanges, the Company shall, subject to
the other terms and conditions of this Article 2, execute and the Trustee shall authenticate
Definitive Notes and Global Notes at the Registrar’s request.

     (ii) No service charge shall be made to a Holder for any registration of transfer or
exchange, but the Company may require the Holder to pay a sum sufficient to cover any
transfer tax assessments or similar governmental charge payable in connection therewith
(other than any such transfer taxes, assessments or similar governmental charges payable
upon exchange or transfer pursuant to Sections 2.01, 2.02, 2.06, 2.10, 2.12, 3.06, 4.10,
4.15 or 9.05).

     (iii) The Company (and the Registrar) shall not be required to register the transfer of
or exchange of any Note (A) for a period beginning (1) 15 Business Days before the mailing
of a notice of an offer to repurchase or redeem Notes and ending at the close of business on
the day of such mailing or (2) 15 Business Days before an interest payment date and ending
on such interest payment date or (B) called for redemption, except the unredeemed portion of
any Note being redeemed in part.

35

 

     (iv) Prior to the due presentation for registration of transfer of any Note, the
Company, the Trustee, the Paying Agent or the Registrar may deem and treat the person in
whose name a Note is registered as the owner of such Note for the purpose of receiving
payment of principal of, premium, if any, and (subject to paragraph 2 of the forms of Notes
attached hereto as Exhibits A and B) interest on such Note and for all other purposes
whatsoever, including without limitation the transfer or exchange of such Note, whether or
not such Note is overdue, and none of the Company, the Trustee, the Paying Agent or the
Registrar shall be affected by notice to the contrary.

     (v) Any Definitive Note delivered in exchange for an interest in a Global Note pursuant
to Section 2.01(f) shall, except as otherwise provided by Section 2.06(c), bear the
applicable legend regarding transfer restrictions applicable to the Definitive Note set
forth in Section 2.01(d).

     (vi) All Notes issued upon any transfer or exchange pursuant to the terms of this
Indenture shall evidence the same debt and shall be entitled to the same benefits under this
Indenture as the Notes surrendered upon such transfer or exchange.

          (f) No Obligation of the Trustee. (i) The Trustee shall have no responsibility or
obligation to any beneficial owner of a Global Note, a member of, or a participant in, DTC or other
Person with respect to the accuracy of the records of DTC or its nominee or of any participant or
member thereof, with respect to any ownership interest in the Notes or with respect to the delivery
to any participant, member, beneficial owner or other Person (other than DTC) of any notice
(including any notice of redemption or purchase) or the payment of any amount or delivery of any
Notes (or other Note or property) under or with respect to such Notes. All notices and
communications to be given to the Holders and all payments to be made to Holders in respect of the
Notes shall be given or made only to or upon the order of the registered Holders (which shall be
DTC or its nominee in the case of a Global Note). The rights of beneficial owners in any Global
Note shall be exercised only through DTC subject to the applicable rules and procedures of DTC.
The Trustee may rely and shall be fully protected in relying upon information furnished by DTC with
respect to its members, participants and any beneficial owners.

     (ii) The Trustee shall have no obligation or duty to monitor, determine or inquire as to
compliance with any restrictions on transfer imposed under this Indenture or under
applicable law with respect to any transfer of any interest in any Note (including any
transfers between or among DTC participants, members or beneficial owners in any Global
Note) other than to require delivery of such certificates and other documentation or
evidence as are expressly required by, and to do so if and when expressly required by,
the terms of this Indenture, and to examine the same to determine substantial
compliance as to form with the express requirements hereof.

36

 

Section 2.07 Form of Certificate to be Delivered upon Termination of Restricted Period

[Date]

Standard Aero Holdings, Inc.

c/o Wells Fargo Bank, National Association

213 Court Street, Suite 703

Middletown, Connecticut 06457

Attention: Corporate Trust Administration (Fax: 860-704-6219)

	 	 	 	 	 	 
	 

	 	Re:
	 	Standard Aero Holdings, Inc. (the “Company”)
	

	 	 	 	81/4% Senior Subordinated Notes due 2014 (the “Notes”)

Ladies and Gentlemen:

          This letter relates to Notes represented by a temporary global note (the “Temporary
Regulation S Global Note”). Pursuant to Section 2.01 of the Indenture dated as of August 20,
2004, as supplemented, relating to the Notes (the “Indenture”), we hereby certify that the persons
who are the beneficial owners of $[___] principal amount of Notes represented by the Temporary
Regulation S Global Note are persons outside the United States to whom beneficial interests in such
Notes could be transferred in accordance with Rule 904 of Regulation S promulgated under the
Securities Act of 1933, as amended. Accordingly, you are hereby requested to issue a Permanent
Regulation S Global Note representing the undersigned’s interest in the principal amount of Notes
represented by the Temporary Regulation S Global Note, all in the manner provided by the Indenture.

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

	 	 	 
	 

	 	Very truly yours,
	

	 	 
	

	 	[Name of Transferor]
	

	 	 
	

	 	By:                                                            
	

	 	 
	

	 	                                                                 
	

	 	          Authorized Signature

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Section 2.08 Form of Certificate to be Delivered in Connection with Transfers to Institutional
Accredited Investors.

[Date]

Standard Aero Holdings, Inc.

c/o Wells Fargo Bank, National Association

213 Court Street, Suite 703

Middletown, Connecticut 06457

Attention: Corporate Trust Administration (Fax: 860-704-6219)

Ladies and Gentlemen:

          This certificate is delivered to request a transfer of $[___] principal amount of the
81/4% Senior Subordinated Notes due 2014 (the “Notes”) of Standard Aero Holdings, Inc. (the
“Company”).

          Upon transfer, the Notes would be registered in the name of the new beneficial owner as
follows:

	 	 	 
	 

	 	Name:                                                                  
	

	 	 
	

	 	Address:                                                             
	

	 	 
	

	 	Taxpayer ID Number:                                         

          The undersigned represents and warrants to you that:

          1. We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) under the Securities Act of 1933, as amended (the “Securities Act”)) purchasing for our own
account or for the account of such an institutional “accredited investor” at least $250,000
principal amount of the Notes, and we are acquiring the Notes not with a view to, or for offer or
sale in connection with, any distribution in violation of the Securities Act. We have such
knowledge and experience in financial and business matters as to be capable of evaluating the
merits and risk of our investment in the Notes and we invest in or purchase Notes similar to the
Notes in the normal course of our business. We and any accounts for which we are acting are each
able to bear the economic risk of our or its investment.

          2. We understand that the Notes have not been registered under the Securities Act and, unless
so registered, may not be sold except as permitted in the following sentence. We agree on our own
behalf and on behalf of any investor account for which we are purchasing Notes to offer, sell or
otherwise transfer such Notes prior to the date that is two years after the later of the date of
original issue and the last date on which the Company or any affiliate of the Company was the owner
of such Notes (or any predecessor thereto) (the “Resale Restriction Termination Date”) only (a) to
the Company, (b) pursuant to a registration statement which has been declared effective under the
Securities Act, (c) in a transaction complying with the requirements of Rule 144A under the
Securities Act, to a person we reasonably believe is a “qualified institutional buyer” under Rule
144A of the Securities Act (a “QIB”) that is

38

 

purchasing for its own account or for the account of a QIB and to whom notice is given that
the transfer is being made in reliance on Rule 144A, (d) pursuant to offers and sales that occur
outside the United States within the meaning of Regulation S under the Securities Act, (e) to an
institutional “accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or (7) under the
Securities Act that is purchasing for its own account or for the account of such an institutional
“accredited investor,” in each case in a minimum principal amount of Notes of $250,000 for
investment purposes and not with a view to or for offer or sale in connection with any distribution
in violation of the Securities Act or (f) pursuant to any other available exemption from the
registration requirements of the Securities Act, subject in each of the foregoing cases to any
requirement of law that the disposition of our property or the property of such investor account or
accounts be at all times within our or their control and in compliance with any applicable state
Securities laws. The foregoing restrictions on resale will not apply subsequent to the Resale
Restriction Termination Date. If any resale or other transfer of the Notes is proposed to be made
pursuant to clause (e) above prior to the Resale Restriction Termination Date, the transferor shall
deliver a letter from the transferee substantially in the form of this letter to the Company and
the Trustee, which shall provide, among other things, that the transferee is an institutional
“accredited investor” (within the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities
Act) and that it is acquiring such Notes for investment purposes and not for distribution in
violation of the Securities Act. Each purchaser acknowledges that the Company and the Trustee
reserve the right prior to any offer, sale or other transfer prior to the Resale Termination Date
of the Notes pursuant to clauses (d), (e) or (f) above to require the delivery of an opinion of
counsel, certifications and/or other information satisfactory to the Company and the Trustee.

TRANSFEREE:                                                            

BY:                                                            
                    

Section 2.09 Form of Certificate to be Delivered in Connection with Transfers Pursuant to
Regulation S.

	 	 	 
	 

	 	[Date]

Standard Aero Holdings, Inc.

c/o Wells Fargo Bank, National Association

213 Court Street, Suite 703

Middletown, Connecticut 06457

Attention: Corporate Trust Administration (Fax: 860-704-6219)

	 	 	 	 	 	 
	 

	 	Re:
	 	Standard Aero Holdings, Inc.
	

	 	 	 	81/4% Senior Subordinated Notes due 2014 (the “Notes”)

Ladies and Gentlemen:

          In connection with our proposed sale of $[___] aggregate principal amount of the Notes,
we confirm that such sale has been effected pursuant to and in accordance with

39

 

Regulation S under the United States Securities Act of 1933, as amended (the “Securities
Act”), and, accordingly, we represent that:

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

     (b) either (i) at the time the buy order was originated, the transferee was outside the
United States or we and any person acting on our behalf reasonably believed that the
transferee was outside the United States or (ii) the transaction was executed in, on or
through the facilities of a designated off-shore Notes market and neither we nor any person
acting on our behalf knows that the transaction has been pre-arranged with a buyer in the
United States;

     (c) no directed selling efforts have been made in the United States in contravention of
the requirements of Rule 903(a)(2) or Rule 904(a)(2) of Regulation S, as applicable; and

     (d) the transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act.

          In addition, if the sale is made during a restricted period and the provisions of Rule
903(b)(2) or Rule 904(b)(1) of Regulation S are applicable thereto, we confirm that such sale has
been made in accordance with the applicable provisions of Rule 903(b)(2) or Rule 904(b)(1), as the
case may be.

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

	 	 	 
	 

	 	Very truly yours,
	

	 	 
	

	 	[Name of Transferor]
	

	 	 
	

	 	By:                                                            
	

	 	 
	

	 	                                                                 
	

	 	          Authorized Signature

Section 2.10 Mutilated, Destroyed, Lost or Stolen Notes If a mutilated Note is surrendered to
the Registrar or if the Holder of a Note claims that the Note has been lost, destroyed or
wrongfully taken, the Company shall issue and the Trustee shall authenticate a replacement Note if
the requirements of Section 8-405 of the Uniform Commercial Code are met, such that the Holder (a)
satisfies the Company or the Trustee that such Note has been lost, destroyed or wrongfully taken
within a reasonable time after such Holder has notice of such loss, destruction or wrongful taking
and the Registrar has not registered a transfer prior to receiving such notification, (b) makes
such request to the Company or Trustee prior to the Note being acquired by a protected purchaser as defined in
Section 8-303 of the Uniform Commercial Code (a

40

 

"protected purchaser”) and (c) satisfies any other
reasonable requirements of the Trustee; provided, however, if after the delivery of such
replacement Note, a protected purchaser of the Note for which such replacement Note was issued
presents for payment or registration such replaced Note, the Trustee or the Company shall be
entitled to recover such replacement Note from the Person to whom it was issued and delivered or
any Person taking therefrom, except a protected purchaser, and shall be entitled to recover upon
the Note or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred
by the Company or the Trustee in connection therewith. If required by the Trustee or the Company,
such Holder shall furnish an indemnity bond sufficient in the judgment of the Company and the
Trustee to protect the Company, the Trustee, the Paying Agent and the Registrar from any loss which
any of them may suffer if a Note is replaced, and, in the absence of notice to the Company, any
Guarantor or the Trustee that such Note has been acquired by a protected purchaser, the Company
shall execute, and upon receipt of a Company Order the Trustee shall authenticate and make
available for delivery, in exchange for any such mutilated Note or in lieu of any such destroyed,
lost or stolen Note, a new Note of like tenor and principal amount, bearing a number not
contemporaneously outstanding.

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

          Upon the issuance of any new Note under this Section, the Company may require that such Holder
pay a sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of counsel and of the Trustee) in
connection therewith.

          Subject to the proviso in the initial paragraph of this Section 2.10 every new Note issued
pursuant to this Section in lieu of any mutilated, destroyed, lost or stolen Note shall constitute
an original additional contractual obligation of the Company, any Guarantor (if applicable) and any
other obligor upon the Notes, whether or not the mutilated, destroyed, lost or stolen Note shall be
at any time enforceable by anyone, and shall be entitled to all benefits of this Indenture equally
and proportionately with any and all other Notes duly issued hereunder.

          The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost
or stolen Notes.

Section 2.11 Outstanding Notes Notes outstanding at any time are all Notes authenticated by
the Trustee except for those cancelled by it, those delivered to it for cancellation and those
described in this Section as not outstanding. A Note does not cease to be outstanding in the event
the Company or an Affiliate of the Company holds the Note, provided, however, that (i) in
determining whether the Holders of the required principal amount of Notes have concurred in any
direction, waiver or consent, Notes owned by the Company, or an Affiliate of the Company, will be
considered as though not outstanding, and (ii) in determining whether the Trustee shall be
protected in making a determination whether the Holders of the requisite principal amount of outstanding Notes are
present at a meeting of Holders of Notes for quorum purposes or have consented to or voted in favor
of any request, demand, authorization, direction, notice, consent,

41

 

waiver, amendment or modification hereunder, or relying upon any such quorum, consent or vote, only Notes which a Trust
Officer of the Trustee actually knows to be held by the Company or an Affiliate of the Company
shall not be considered outstanding.

          If a Note is replaced pursuant to Section 2.10 (other than a mutilated Note surrendered for
replacement), it ceases to be outstanding unless the Trustee and the Company receive proof
satisfactory to them that the replaced Note is held by a protected purchaser. A mutilated Note
ceases to be outstanding upon surrender of such Note and replacement pursuant to Section 2.10.

          If the Paying Agent segregates and holds in trust, in accordance with this Indenture, on a
redemption date or maturity date money sufficient to pay all principal, premium, if any, and
accrued interest payable on that date with respect to the Notes (or portions thereof) to be
redeemed 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) cease to be outstanding and interest on them ceases to
accrue.

Section 2.12 Temporary Notes In the event that Definitive Notes are to be issued under the
terms of this Indenture, until such Definitive Notes are ready for delivery, the Company may
prepare and the Trustee shall authenticate temporary Notes. Temporary Notes shall be substantially
in the form, and shall carry all rights, of Definitive Notes but may have variations that the
Company considers appropriate for temporary Notes. Without unreasonable delay, the Company shall
prepare and the Trustee shall authenticate Definitive Notes. After the preparation of Definitive
Notes, the temporary Notes shall be exchangeable for Definitive Notes upon surrender of the
temporary Notes at any office or agency maintained by the Company for that purpose and such
exchange shall be without charge to the Holder. Upon surrender for cancellation of any one or more
temporary Notes, the Company shall execute, and the Trustee shall authenticate and make available
for delivery in exchange therefor, one or more Definitive Notes representing an equal principal
amount of Notes. Until so exchanged, the Holder of temporary Notes shall in all respects be
entitled to the same benefits under this Indenture as a Holder of Definitive Notes.

Section 2.13 Cancellation The Company at any time may deliver Notes to the Trustee for
cancellation. The Registrar and the Paying Agent shall forward to the Trustee any Notes
surrendered to them for registration of transfer, exchange or payment. The Trustee and no one else
shall cancel all Notes surrendered for registration of transfer, exchange, payment or cancellation
and dispose of such Notes in accordance with its internal policies and customary procedures
including delivery of a certificate describing such Notes disposed (subject to the record retention
requirements of the Exchange Act) or deliver copies of canceled Notes to the Company pursuant to
written direction by one Officer of the Company. If the Company or any Guarantor acquires any of
the Notes, such acquisition shall not operate as a redemption or satisfaction of the Indebtedness
represented by such Notes unless and until the same are surrendered to the Trustee for cancellation
pursuant to this Section 2.13. The Company may not issue new Notes to replace Notes it has paid or
delivered to the Trustee for cancellation for any reason other than in connection with a transfer
or exchange.

42

 

          At such time as all beneficial interests in a Global Note have either been exchanged for
Definitive Notes, transferred, redeemed, repurchased or canceled, such Global Note shall be
returned by DTC to the Trustee for cancellation or retained and canceled by the Trustee. At any
time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for
Definitive Notes, transferred in exchange for an interest in another Global Note, redeemed,
repurchased or canceled, the principal amount of Notes represented by such Global Note shall be
reduced and an adjustment shall be made on the books and records of the Trustee (if it is then the
Note Custodian for such Global Note) with respect to such Global Note, by the Trustee or the Note
Custodian, to reflect such reduction.

Section 2.14 Payment
of Interest; Defaulted Interest  Interest on any Note which is payable,
and is punctually paid or duly provided for, on any interest payment date shall be paid to the
Person in whose name such Note (or one or more Predecessor Notes) is registered at the close of
business on the regular record date for such payment at the office or agency of the Company
maintained for such purpose pursuant to Section 2.03.

          Any interest on any Note which is payable, but is not paid when the same becomes due and
payable and such nonpayment continues for a period of 30 days shall forthwith cease to be payable
to the Holder on the regular record date, and such defaulted interest and (to the extent lawful)
interest on such defaulted interest at the rate borne by the Notes (such defaulted interest and
interest thereon herein collectively called “Defaulted Interest”) shall be paid by the Company, at
its election in each case, as provided in clause (a) or (b) below:

     (a) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Notes (or their respective predecessor Notes) are registered at the close of
business on a Special Record Date (as defined below) for the payment of such Defaulted
Interest, which shall be fixed in the following manner. The Company shall notify the
Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Note and
the date (not less than 30 days after such notice) of the proposed payment (the “Special
Interest Payment Date”), and at the same time the Company shall deposit with the Trustee an
amount of money equal to the aggregate amount proposed to be paid in respect of such
Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit
prior to the date of the proposed payment, such money when deposited to be held in trust for
the benefit of the Persons entitled to such Defaulted Interest as in this clause provided.
Thereupon the Company shall fix a record date (the “Special Record Date”) for the payment of
such Defaulted Interest, which date shall be not more than 15 days and not less than 10 days
prior to the Special Interest Payment Date and not less than 10 days after the receipt by
the Trustee of the notice of the proposed payment. The Company shall promptly notify the
Trustee of such Special
Record Date, and in the name and at the expense of the Company, the Trustee shall cause
notice of the proposed payment of such Defaulted Interest and the Special Record Date and
Special Interest Payment Date therefor to be given in the manner provided for in Section
13.02, not less than 10 days prior to such Special Record Date. Notice of the proposed
payment of such Defaulted Interest and the Special Record Date and Special Interest Payment
Date therefor having been so given, such Defaulted Interest shall be paid on the Special
Interest Payment Date to the Persons in whose names the Notes (or

43

 

their respective
predecessor Notes) are registered at the close of business on such Special Record Date and
shall no longer be payable pursuant to the following clause (b).

     (b) The Company may make payment of any Defaulted Interest in any other lawful manner
not inconsistent with the requirements of any Notes exchange on which the Notes may be
listed, and upon such notice as may be required by such exchange, if, after notice given by
the Company to the Trustee of the proposed payment pursuant to this clause, such manner of
payment shall be deemed practicable by the Trustee.

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

Section 2.15
Computation of Interest  Interest on the Notes shall be computed on the basis of
a 360-day year of twelve 30-day months.

Section 2.16 CUSIP, Common Code and ISIN Numbers The Company in issuing the Notes may use
“CUSIP”, “Common Code” and “ISIN” numbers and, if so, the Trustee shall use “CUSIP”, “Common Code”
and “ISIN” numbers in notices of redemption or purchase as a convenience to Holders; provided,
however, that any such notice may state that no representation is made as to the correctness of
such numbers either as printed on the Notes or as contained in any notice of a redemption or
purchase and that reliance may be placed only on the other identification numbers printed on the
Notes, and any such redemption or purchase shall not be affected by any defect in or omission of
such CUSIP, Common Code and ISIN numbers. The Company shall promptly notify the Trustee in writing
of any change in the CUSIP, Common Code and ISIN numbers.

Section 2.17 Issuance of Additional Notes.

          The Company will be entitled, subject to its compliance with Section 4.09 hereof, to issue
Additional Notes under this Indenture with identical terms as the Initial Notes issued on the Issue
Date, other than with respect to the date of issuance and issue price. The Initial Notes issued on
the Issue Date, any Additional Notes and all Exchange Notes issued in exchange therefor will be
treated as a single class for all purposes under this Indenture.

          With respect to any Additional Notes, the Company will set forth in a resolution of the Board
of Directors and an Officer’s Certificate, copies of which will be delivered to the Trustee, the
following information:

     (i) the aggregate principal amount of such Additional Notes to be authenticated and
delivered pursuant to this Indenture;

     (ii) the issue price, the issue date and the CUSIP number of such Additional Notes;
provided, however, that no Additional Notes may be issued at a price that would cause such
Additional Notes to have “original issue discount” within the meaning of Section 1273 of the
Internal Revenue Code of 1986, as amended; and

44

 

     (iii) whether such Additional Notes will be Restricted Notes or will be issued in the
form of Exchange Notes.

ARTICLE 3.

REDEMPTION AND PREPAYMENT

Section 3.01 Notices to Trustee.

          If the Company elects to redeem Notes pursuant to the optional redemption provisions of
Section 3.07 hereof, it will furnish to the Trustee, at least 45 days before a redemption date (or,
in the case of a redemption pursuant to such Section 3.10, by 11:00 a.m. New York time (or such
other time of day acceptable to the Trustee which will permit it to give the notice referred to in
the last paragraph of Section 3.03) at least one Business Day prior to the Special Redemption Date)
before a redemption date, an Officer’s Certificate setting forth (i) the clause of this Indenture
pursuant to which the redemption will occur, (ii) the redemption date, (iii) the principal amount
of Notes to be redeemed and (iv) the redemption prices.

Section 3.02 Selection of Notes to be Redeemed or Purchased.

          If less than all of the Notes are to be redeemed or purchased in an offer to purchase at any
time, the Trustee will select Notes for redemption or purchase as follows: (i) if the Notes are
listed on any national securities exchange, in compliance with the requirements of the principal
national securities exchange on which the Notes are listed or (ii) if the Notes are not so listed,
on a pro rata basis. Notes of $1,000 or less may be redeemed in part.

          The Trustee will promptly notify the Company in writing of the Notes selected for redemption
or purchase and, in the case of any Note selected for partial redemption or purchase, the principal
amount thereof to be redeemed or purchased. Notes and portions of Notes selected will be in amounts
of $1,000 or whole multiples of $1,000; except that if all of the Notes of a Holder are to be
redeemed or purchased, the entire outstanding amount of Notes held by such Holder, even if not a
multiple of $1,000, will be redeemed or purchased. Except as provided in the preceding sentence,
provisions of this Indenture that apply to Notes called for redemption or purchase also apply to
portions of Notes called for redemption or purchase.

Section 3.03 Notice of Redemption.

          Except as provided in Section 3.10 and subject to the provisions of Section 3.09 hereof, at
least 30 days but not more than 60 days before a redemption date, the Company will mail or cause to
be mailed, by first class mail, a notice of redemption to each Holder whose Notes are to be
redeemed at its registered address, except that redemption notices may be mailed more than 60 days
prior to a redemption date if the notice is issued in connection with a defeasance of the Notes or
a satisfaction and discharge of this Indenture pursuant to Article 8 or 12 hereof. Notices of
redemption may not be conditional. Notes called for redemption become due on the date fixed for
redemption.

45

 

          The notice will identify the Notes to be redeemed (including CUSIP Numbers, if any) and will
state:

     (i) the redemption date;

     (ii) the redemption price;

     (iii) if any Note is being redeemed in part, the portion of the principal amount of
such Note to be redeemed and that, after the redemption date upon surrender of such Note, a
new Note or Notes in principal amount equal to the unredeemed portion will be issued upon
cancellation of the original Note;

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

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

     (vi) that, unless the Company defaults in making such redemption payment, interest on
Notes called for redemption ceases to accrue on and after the redemption date;

     (vii) the paragraph of the Notes and/or Section of this Indenture pursuant to which the
Notes called for redemption are being redeemed; and

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

          At the Company’s request, the Trustee will give the notice of redemption in the Company’s name
and at its expense; provided, however, that the Company has delivered to the Trustee, at least 45
days prior to the redemption date, an Officer’s Certificate requesting that the Trustee give such
notice and setting forth the information to be stated in such notice as provided in the preceding
paragraph.

          Notwithstanding the foregoing, in the event that the Notes will be redeemed pursuant to the
Special Redemption as set forth in Section 3.10, the Trustee shall, at the Company’s request and in
the Company’s name and expense, give notice of such redemption to each Holder in accordance with
this Section 3.03 at least one Business Day prior to the Special Redemption Date.

Section 3.04 Effect of Notice of Redemption.

          Once notice of redemption is mailed in accordance with Section 3.03 or delivered in
accordance with Section 3.10 hereof, Notes called for redemption become irrevocably due and payable
on the redemption date at the redemption price. A notice of redemption may not be conditional.

46

 

Section 3.05 Deposit of Redemption or Purchase Price.

          Prior to 11:00 a.m. New York City time on the Business Day prior to the redemption date, the
Company will deposit with the Trustee or with the Paying Agent money sufficient to pay the
redemption or purchase price of and accrued interest on all Notes to be redeemed or purchased on
that date. The Trustee or the Paying Agent will promptly return to the Company any money deposited
with the Trustee or the Paying Agent by the Company in excess of the amounts necessary to pay the
redemption or purchase price of, and accrued interest on, all Notes to be redeemed or purchased.

          If the Company complies with the provisions of the preceding paragraph, on and after the
redemption or purchase date, interest will cease to accrue on the Notes or the portions of Notes
called for redemption or purchase. If a Note is redeemed or purchased on or after an interest
record date but on or prior to the related interest payment date, then any accrued and unpaid
interest will be paid to the Person in whose name such Note was registered at the close of business
on such record date. If any Note called for redemption or purchase is not so paid upon surrender
for redemption or purchase because of the failure of the Company to comply with the preceding
paragraph, interest will be paid on the unpaid principal, from the redemption or purchase date
until such principal is paid, and to the extent lawful on any interest not paid on such unpaid
principal, in each case at the rate provided in the Notes and in Section 4.01 hereof.

Section 3.06 Notes Redeemed or Purchased in Part.

          Upon surrender of a Note that is redeemed or purchased in part, the Company will issue and,
upon the Company’s written request, the Trustee will authenticate for the Holder at the expense of
the Company a new Note equal in principal amount to the unredeemed or unpurchased portion of the
Note surrendered.

Section 3.07 Optional Redemption.

          (a) At any time prior to September 1, 2007, the Company may on any one or more occasions
redeem an aggregate of up to 35% of the aggregate principal amount of Notes (calculated after
giving effect to the issuance of Additional Notes, if any) issued under this Indenture at a
redemption price of 108.25% of the principal amount, plus accrued and unpaid interest and
Additional Interest, if any, to the redemption date, with the net cash proceeds of one or more
Equity Offerings by the Company or from the cash contribution of equity capital (other than
Disqualified Stock) to the Company; provided that:

     (i) at least 65% of the aggregate principal amount of Notes (which includes Additional
Notes, if any) issued under this Indenture remains outstanding immediately
after the occurrence of such redemption (excluding Notes held by the Company and its
Subsidiaries); and

     (ii) the redemption occurs within 90 days of the date of the closing of such Equity
Offering.

          (b) In addition, prior to September 1, 2009, the Company may also redeem the Notes, at its
option, in whole at any time or in part from time to time, upon not less than 30 nor

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more than 60
days’ prior notice mailed by first-class mail to each Holder’s registered address, at a redemption
price equal to 100% of the principal amount of the Notes redeemed plus the Applicable Premium as
of, and accrued and unpaid interest to, the applicable redemption date (subject to the right of the
Holders of record on the relevant record date to receive interest due on the relevant interest
payment date).

          (c) On and after September 1, 2009, the Company may redeem all or a part of the Notes upon not
less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of
principal amount) set forth below plus accrued and unpaid interest and Additional Interest, if any,
on the Notes redeemed, to the applicable redemption date, if redeemed during the twelve-month
period beginning on September 1 of the years indicated below:

	 	 	 	 	 
	Year	 	Percentage	 
	 
	 	 	 	 
	2009
	 	 	104.125	%
	2010
	 	 	102.750	%
	2011
	 	 	101.375	%
	2012 and thereafter
	 	 	100.000	%

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

Section 3.08 Mandatory Redemption.

          Except as required in Section 3.10, the Company is not required to make any mandatory
redemption or sinking fund payments with respect to the Notes.

Section 3.09 Offer to Purchase by Application of Excess Proceeds.

          In the event that, pursuant to Section 4.10 hereof, the Company is required to commence an
offer to all Holders to purchase Notes (an “Asset Sale Offer”) , it will follow the
procedures specified below.

          The Asset Sale Offer will be made to all Holders and all holders of other Indebtedness that is
pari passu with the Notes containing provisions similar to those set forth in this Indenture with
respect to offers to purchase or redeem with the proceeds of sales of assets. The Asset Sale Offer
will remain open for a period of at least 20 Business Days following its commencement and not
longer than 30 Business Days, except to the extent that a longer period is required by applicable
law (the “Offer Period”). No later than five Business Days after the
termination of the Offer Period (the “Purchase Date”), the Company will apply all Excess
Proceeds (the “Offer Amount”) to the purchase of Notes and such other pari passu Indebtedness (on a
pro rata basis, if applicable) or, if less than the Offer Amount has been tendered, all Notes and
other Indebtedness tendered in response to the Asset Sale Offer. Payment for any Notes so purchased
will be made in the same manner as interest payments are made.

          If the Purchase Date is on or after an interest record date and on or before the related
interest payment date, any accrued and unpaid interest and Additional Interest, if any,

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will be
paid to the Person in whose name a Note is registered at the close of business on such record date,
and no additional interest will be payable to Holders who tender Notes pursuant to the Asset Sale
Offer.

          Upon the commencement of an Asset Sale Offer, the Company will send, by first class mail, a
notice to the Trustee and each of the Holders. The notice will contain all instructions and
materials necessary to enable such Holders to tender Notes pursuant to the Asset Sale Offer. The
Asset Sale Offer will be made to all Holders. The notice, which will govern the terms of the Asset
Sale Offer, will state:

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

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

     (iii) that any Note not tendered or accepted for payment will continue to accrue
interest;

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

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

     (vi) that Holders electing to have a Note purchased pursuant to an Asset Sale Offer
will be required to surrender the Note, with the form entitled “Option of Holder to Elect
Purchase” on the reverse of the Note completed, or transfer by book-entry transfer, to the
Company, a Depositary, if appointed by the Company, or a Paying Agent at the address
specified in the notice at least three days before the Purchase Date;

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

     (viii) that, if the aggregate principal amount of Notes and other pari passu
Indebtedness surrendered by Holders exceeds the Offer Amount, the Company will select the
Notes and other pari passu Indebtedness to be purchased on a pro rata basis based on
the principal amount of Notes and such other pari passu Indebtedness surrendered (with
such adjustments as may be deemed appropriate by the Company so that only Notes in
denominations of $1,000, or integral multiples thereof, will be purchased); and

     (ix) that Holders whose Notes were purchased only in part will be issued new Notes
equal in principal amount to the unpurchased portion of the Notes surrendered (or
transferred by book-entry transfer).

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          On or before the Purchase Date, the Company will, to the extent lawful, accept for payment, on
a pro rata basis to the extent necessary, the Offer Amount of Notes or portions thereof and other
pari passu Indebtedness tendered pursuant to the Asset Sale Offer, or if less than the Offer Amount
has been tendered, all Notes and other pari passu Indebtedness tendered, and will deliver to the
Trustee an Officer’s Certificate stating that such Notes or portions thereof were accepted for
payment by the Company in accordance with the terms of this Section 3.09. The Company, the
Depositary or the Paying Agent, as the case may be, will promptly (but in any case not later than
five days after the Purchase Date) mail or deliver to each tendering Holder an amount equal to the
purchase price of the Notes tendered by such Holder and accepted by the Company for purchase, and
the Company will promptly issue a new Note and the Trustee, upon written request from the Company,
will authenticate and mail or deliver such new Note to such Holder, in a principal amount equal to
any unpurchased portion of the Note surrendered. Any Note not so accepted will be promptly mailed
or delivered by the Company to the Holder thereof. The Company will publicly announce the results
of the Asset Sale Offer on the Purchase Date.

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

Section 3.10 Mandatory Special Redemption.

          Notwithstanding the foregoing, in the event that the Acquisition is not consummated on or
prior to September 30, 2004 or if the Acquisition Agreement is terminated prior to such time, the
Company shall redeem (the “Special Redemption”) the Notes, in whole but not in part, on or prior to
October 4, 2004, at a redemption price (the “Special Redemption Price”) in cash equal to 100.0% of
the issue price of the Notes on the Special Redemption Date, plus accrued and unpaid interest, to,
but not including the Special Redemption Date. The “Special Redemption Date” means the earlier of
the date specified by the Company in an Officers’ Certificate delivered in accordance with the
Escrow Agreement and October 4, 2004. The Trustee shall deliver to each Holder a written notice
(specifying the information specified in Section 3.03) of the Special Redemption at least one
Business Day prior to the Special Redemption Date.

ARTICLE 4.

COVENANTS

Section 4.01 Payment of Notes.

          The Company will pay or cause to be paid the principal of, premium, if any, interest and
Additional Interest, if any, on the Notes on the dates and in the manner provided in
the Notes. Principal, premium, if any, interest and Additional Interest, if any, will be
considered paid on the date due if the Paying Agent, if other than the Company or a Subsidiary
thereof, holds as of 10:00 a.m. Eastern Time on the due date money deposited by the Company in
immediately available funds and designated for and sufficient to pay all principal, premium, if
any, and interest then due. The Company will pay all Additional Interest, if any, in the same
manner on the dates and in the amounts set forth in the Registration Rights Agreement.

50

 

          The Company will pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal at the rate equal to 1.0% per annum in excess of the then
applicable interest rate on the Notes to the extent lawful; it will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of
interest and Additional Interest (without regard to any applicable grace period) at the same rate
to the extent lawful.

Section 4.02 Maintenance of Office or Agency.

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

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

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

Section 4.03 Reports.

          (a) Whether or not required by the rules and regulations of the SEC, so long as any Notes are
outstanding, the Company will furnish to the Trustee for mailing to the Holders of Notes (at the
Company’s expense), within the time periods specified in the SEC’s rules and regulations:

     (i) all quarterly and annual financial information that would be required to be
contained in a filing with the SEC on Forms 10-Q and 10-K if the Company were required to
file such forms, including a “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” and, with respect to the annual
information only, a report thereon by the Company’s certified independent accountants;
and

     (ii) all current reports that would be required to be filed with the SEC on Form 8-K if
the Company were required to file such reports.

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          If the Company has designated any of its Subsidiaries as Unrestricted Subsidiaries, then the
quarterly and annual financial information required by clause (i) above will include a reasonably
detailed presentation, either on the face of the financial statements or in the footnotes thereto,
and in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations,”
of the financial condition and results of operations of the Company and its Restricted Subsidiaries
separate from the financial condition and results of operations of the Unrestricted Subsidiaries of
the Company.

          (b) Following the consummation of the Exchange Offer or the effectiveness of the Shelf
Registration Statement contemplated by the Registration Rights Agreement, whether or not required
by the SEC, the Company will file a copy of all of the information and reports referred to in
Sections 4.03(a)(i) and (ii) above with the SEC for public availability within the time periods
specified in the SEC’s rules and regulations (unless the SEC will not accept such a filing) and
make such information available to prospective investors upon request. The Company will at all
times comply with TIA § 314(a).

          (c) The Company and the Guarantors will make available to the Holders and to prospective
investors, upon the request of such Holders, the information required to be delivered pursuant to
Rule 144A(d)(4) under the Securities Act so long as the Notes are not freely transferable under the
Securities Act. For purpose of this Section 4.03, the Company and the Guarantors will be deemed to
have furnished the reports to the Trustee and the Holders of Notes as required by this Section 4.03
if it has filed such reports with the SEC via the EDGAR filing system and such reports are publicly
available. Notwithstanding the foregoing, such requirements shall be deemed satisfied prior to the
commencement of the Exchange Offer or the effectiveness of the Shelf Registration Statement by the
filing with the SEC of the Exchange Offer Registration Statement and/or Shelf Registration
Statement, and any amendments thereto, with such financial information that satisfies Regulation
S-X of the Securities Act.

Section 4.04 Compliance Certificate.

          (a) The Company and each Guarantor (to the extent that such Guarantor is so required under the
TIA) will deliver to the Trustee, within 90 days after the end of each fiscal year, an Officer’s
Certificate stating that a review of the activities of the Company and its Subsidiaries during the
preceding fiscal year has been made under the supervision of the signing Officers with a view to
determining whether the Company has kept, observed, performed and fulfilled its obligations under
this Indenture, and further stating, as to each such Officer signing such certificate, that to the
best of his or her knowledge the Company has kept, observed, performed and fulfilled each and every
covenant contained in this Indenture and is not in default in the performance or observance of any
of the terms, provisions and conditions of this Indenture (or, if a Default or Event of Default has
occurred, describing all such Defaults or Events of Default of which he or she may have knowledge
and what action the Company is taking or
proposes to take with respect thereto) and that to the best of his or her knowledge no event
has occurred and remains in existence by reason of which payments on 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 the Company is taking or proposes to take with respect thereto.

52

 

          (b) So long as not contrary to the then current recommendations of the American Institute of
Certified Public Accountants, the year-end financial statements delivered pursuant to Section
4.03(a) above will be accompanied by a written statement of the Company’s independent public
accountants (who will be a firm of established national reputation) that in making the examination
necessary for certification of such financial statements, nothing has come to their attention that
would lead them to believe that the Company has violated any provisions of Article 4 or Article 5
hereof or, if any such violation has occurred, specifying the nature and period of existence
thereof, it being understood that such accountants will not be liable directly or indirectly to any
Person for any failure to obtain knowledge of any such violation.

          (c) The Company will, so long as any of the Notes are outstanding, deliver to the Trustee,
promptly upon any Officer becoming aware of any Default or Event of Default, an Officer’s
Certificate specifying such Default or Event of Default and what action the Company is taking or
proposes to take with respect thereto.

Section 4.05 Taxes.

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

Section 4.06 Stay, Extension and Usury Laws.

          Each of the Company and the Guarantors covenants (to the extent that it may lawfully do so)
that it will not at any time insist upon, plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time
hereafter in force, that may affect the covenants or the performance of this Indenture; and each of
the Company and the Guarantors (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, by resort to any such
law, 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 has been enacted.

Section 4.07 Restricted Payments.

          (a) The Company will not, and will not permit any of its Restricted Subsidiaries to, directly
or indirectly: (i) declare or pay any dividend or make any other payment or distribution on
account of the Company’s or any of its Restricted Subsidiaries’ Equity Interests (including,
without limitation, any payment in connection with any merger or consolidation involving the
Company or any of its Restricted Subsidiaries) or to the direct or indirect holders of the
Company’s or any of its Restricted Subsidiaries’ Equity Interests in their
capacity as such (other than dividends or distributions payable (A) in Equity Interests (other
than Disqualified Stock) of the Company or (B) by a Restricted Subsidiary to the Company or another
Restricted Subsidiary of the Company); (ii) purchase, redeem or otherwise acquire or retire for
value (including without limitation, in connection with any merger or consolidation involving the

53

 

Company) any Equity Interests of the Company or any direct or indirect parent of the Company; (iii)
make any payment on or with respect to, or purchase, redeem, defease or otherwise acquire or retire
for value, any Indebtedness of the Company or any Guarantor that is expressly subordinated or
junior in right of payment to the Notes or the Subsidiary Guarantees, except a payment of interest
or principal at Stated Maturity thereof; or (iv) make any Restricted Investment (all such payments
and other actions set forth in clauses (i) through (iv) above being collectively referred to as
“Restricted Payments”); unless, at the time of and after giving effect to such Restricted Payment:

     (A) no Default or Event of Default has occurred and is continuing or would
occur as a consequence of such Restricted Payment; and

     (B) the Company would, at the time of such Restricted Payment and after giving
pro forma effect thereto as if such Restricted Payment had been made at the
beginning of the applicable four-quarter period, have been permitted to incur at
least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio
test set forth in the first paragraph of Section 4.09 hereof; and

     (C) such Restricted Payment, together with the aggregate amount of all other
Restricted Payments made by the Company and its Restricted Subsidiaries after the
Issue Date (excluding Restricted Payments permitted by clauses (ii) through (iv) and
(vi) through (x) of Section 4.07(b) below), is less than the sum, without
duplication of:

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

     (II) 100% of the aggregate net cash proceeds and the fair market value of the
property received by the Company since the Issue Date as a contribution to its
common equity capital or from the issue or sale of Equity Interests of the Company
(other than Disqualified Stock) or from the issue or sale of convertible or
exchangeable Disqualified Stock or convertible or exchangeable Disqualified Stock or
convertible or exchangeable debt securities of the Company that have been converted
into or exchanged for Equity Interests (other than Disqualified Stock) of the
Company (in each case, other than Equity Interests (or Disqualified Stock or debt
securities) sold to a Subsidiary of the Company), provided that such property is
limited to assets that are used or useful in a Permitted Business or Capital Stock
of a Person engaged in a Permitted Business, plus

     (III) to the extent that any Restricted Investment that was made after the
Issue Date is sold for cash or otherwise liquidated or repaid, purchased or redeemed
for cash, the cash return of capital with respect to such Restricted Investment
(less the cost of disposition, if any), plus

54

 

     (IV) the extent that any Unrestricted Subsidiary of the Company is redesignated
as a Restricted Subsidiary after the Issue Date, the lesser of (x) the fair market
value of the Company’s Investment in such Subsidiary as of the date of such
redesignation and (y) such fair market value as of the date on which such Subsidiary
was originally designated as an Unrestricted Subsidiary (other than an Unrestricted
Subsidiary to the extent the investment in such Unrestricted Subsidiary constituted
a Permitted Investment), plus

     (V) 100% of any dividend received by the Company or a Restricted Subsidiary
that is a Guarantor after the Issue Date from an Unrestricted Subsidiary, to the
extent such dividends were not otherwise included in Consolidated Net Income of the
Company for such period.

          (b) The provisions of Section 4.07(a) will not prohibit: (i) the payment of any dividend or
the consummation of any irrevocable redemption within 60 days after the date of declaration of the
dividend or giving of the redemption notice, as the case may be, if at said date of declaration or
notice, such dividend or redemption payment would have complied with the provisions of this
Indenture; (ii) the making of any Restricted Payment in exchange for, or out of the net cash
proceeds of the substantially concurrent sale (other than to a Subsidiary of the Company) of,
Equity Interests of the Company (other than any Disqualified Stock) or from the substantially
concurrent cash contribution to the common equity capital to the Company; provided that the amount
of any such net cash proceeds that are utilized for any such redemption, repurchase, retirement,
defeasance or other acquisition will be excluded from clause (C)(II) of Section 4.07(a) above;
(iii) the defeasance, redemption, repurchase or other acquisition or retirement for value of
subordinated Indebtedness of the Company or any Guarantor with the net cash proceeds from an
incurrence of Permitted Refinancing Indebtedness; (iv) the payment of dividends or distributions by
a Restricted Subsidiary of the Company to holders of its Equity Interests on a pro rata basis; (v)
so long as no Default or Event of Default has occurred and is continuing, the repurchase,
redemption or other acquisition or retirement for value of any Equity Interests of the Company or
Holdings held by any current or former director, officer or employee of the Company or Holdings (or
any of its Restricted Subsidiaries) pursuant to any equity subscription agreement, stock option
agreement, shareholders’ agreement or similar agreement; provided that the aggregate price paid for
all such repurchased, redeemed, acquired or retired Equity Interests may not in any calendar year
exceed the lesser of (A) the sum of (x) $2.5 million and (y) the aggregate amount of Restricted
Payments permitted (but not made) pursuant to this clause (v) in prior calendar years and (B) $7.5
million; (vi) the repurchase of Equity Interests deemed to occur upon the exercise of stock options
or warrants to the extent such Equity Interests represent a portion of the exercise price of those
stock options or warrants; (vii) the declaration and payment of dividends to holders of any class
or series of Disqualified Stock of the Company or any Restricted Subsidiary of the Company issued
on or after the Issue Date in accordance with the Fixed Charge Coverage Ratio test described in
Section 4.09(a) hereof to the extent such dividends are included in the definition of Fixed
Charges; provided that no Default
or Event of Default shall have occurred and be continuing immediately after making such
Restricted Payment; (viii) so long as no Default or Event of Default has occurred and is
continuing, the purchase by the Company of fractional shares arising out of stock dividends, splits
or combinations or business combinations; (ix) dividends, distributions or advances to Holdings to
pay the fees required to maintain its corporate existence and to pay for general

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corporate and
overhead expenses (including salaries and other compensation of employees who perform services for
both Holdings and the Company) incurred by Holdings in the ordinary course of its business not to
exceed $1.0 million in any twelve-month period; (x) dividends, distributions or advances to pay
Federal, state and local income taxes to the extent such income taxes are attributable to the
income of the Company and its Restricted Subsidiaries and, to the extent of the amount actually
received from the Unrestricted Subsidiaries, in amounts required to pay such taxes to the extent
attributable to the income of the Unrestricted Subsidiaries; and (xi) so long as no Default or
Event of Default has occurred and is continuing, other Restricted Payments in an aggregate amount
since the Issue Date not to exceed $15.0 million.

          The amount of all Restricted Payments (other than cash) will be the fair market value on the
date of the Restricted Payment of the asset(s) or securities proposed to be transferred or issued
by the Company or such Restricted Subsidiary, as the case may be, pursuant to the Restricted
Payment. The fair market value of any assets or securities that are required to be valued by this
Section 4.07 will be determined by the Board of Directors, whose good faith determination will be
conclusive and will be delivered to the Trustee. The Board of Directors’ determination must be
based upon an opinion or appraisal issued by an accounting, appraisal or investment banking firm of
national standing if the fair market value exceeds $15.0 million.

Section 4.08 Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries.

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

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

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

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

          (b) The restrictions in Section 4.08(a) above will not apply to encumbrances or restrictions
existing under or by reason of:

     (i) agreements governing Existing Indebtedness and the Credit Agreement as in effect on
the Issue Date and any amendments, modifications, restatements, renewals, increases,
supplements, refundings, restructurings, replacements or refinancings of those agreements;
provided that such amendments, modifications, restatements, renewals,
increases, supplements, refundings, restructurings, replacements or refinancings are,
in the good faith judgment of the Company’s Board of Directors, no more restrictive, taken
as a whole, with respect to such dividend and payment restrictions than those contained in
those agreements on the Issue Date;

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     (ii) this Indenture, the Notes and the Subsidiary Guarantees (including any Exchange
Notes and related Subsidiary Guarantees);

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

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

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

     (vi) purchase money obligations or other obligations described in Section 4.09(b)(iv)
for property acquired in the ordinary course of business and Capital Lease Obligations
permitted under this Indenture that impose restrictions of the nature described in Section
4.08(a)(iii) above on the property purchased or leased;

     (vii) Permitted Refinancing Indebtedness, provided that the restrictions contained in
the agreements governing such Permitted Refinancing Indebtedness are, in the good faith
judgment of the Company’s Board of Directors, no more restrictive, taken as a whole, than
those contained in the agreements governing the Indebtedness being refinanced;

     (viii) Liens securing Indebtedness otherwise permitted to be incurred under Section
4.09 and Section 4.12 hereof that limit the right of the debtor to dispose of the assets
subject to such Liens;

     (ix) customary provisions with respect to the disposition or distribution of assets or
property in joint venture agreements, asset sale agreements, sale-leaseback agreements,
stock sale agreements and other similar agreements entered into in the ordinary course of
business;

     (x) any such encumbrance or restriction with respect to a Foreign Subsidiary pursuant
to an agreement governing Indebtedness incurred by such Foreign Subsidiary that was
permitted by the terms of this Indenture to be incurred; and

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

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Section 4.09 Incurrence of Indebtedness and Issuance of Preferred Stock.

          (a) The Company will not, and will not permit any of its Restricted Subsidiaries to, directly
or indirectly, create, incur, issue, assume, guarantee or otherwise become directly or indirectly
liable, contingently or otherwise, with respect to (collectively, “incur”) any Indebtedness
(including Acquired Debt), and the Company will not permit any of its Restricted Subsidiaries to
issue any shares of Preferred Stock; provided, however, that the Company and any Restricted
Subsidiary that is a Guarantor may incur Indebtedness (including Acquired Debt), or any Restricted
Subsidiary that is a Guarantor may issue Preferred Stock, in each case, if the Fixed Charge
Coverage Ratio for the Company’s most recently ended four full fiscal quarters for which internal
financial statements are available immediately preceding the date on which such additional
Indebtedness is incurred or such Preferred Stock is issued, as the case may be, would have been at
least 2.0 to 1.0, 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 Preferred Stock
had been issued, as the case may be, at the beginning of such four-quarter period.

          (b) The provisions of the first paragraph of this Section 4.09 will not prohibit the
incurrence of any of the following items of Indebtedness (collectively, “Permitted Debt”):

     (i) the incurrence by the Company and/or any Restricted Subsidiary of Indebtedness and
Letters of Credit under the Credit Agreement in an aggregate principal amount at any one
time outstanding under this clause (i) (with letters of credit being deemed to have a
principal amount equal to the maximum potential liability of the Company and its Restricted
Subsidiaries thereunder), not to exceed $465.00 million less the sum of all permanent
principal payments (with respect to revolving borrowings and letters of credit, only to the
extent revolving commitments are correspondingly reduced) with respect to such Indebtedness
pursuant to clause (b)(i) of Section 4.10 hereof;

     (ii) the incurrence by the Company and its Restricted Subsidiaries of the Existing
Indebtedness;

     (iii) the incurrence by the Company and the Guarantors of Indebtedness represented by
the Notes issued and sold on the Issue Date and the related Subsidiary Guarantees to be
issued on the Issue Date and the Exchange Notes and the related Subsidiary Guarantees to be
issued pursuant to the Registration Rights Agreement which relate to the Notes (and the
related Guarantees) issued on the Issue Date;

     (iv) the incurrence by the Company or any of its Restricted Subsidiaries of
Indebtedness represented by Capital Lease Obligations, mortgage financings or purchase money
obligations, in each case, incurred for the purpose of financing all or any part of the
purchase price or cost of design, construction, installation, lease or improvement of
property, plant or equipment used in the business of the Company or such Restricted
Subsidiary, in an aggregate principal amount, including all Permitted Refinancing
Indebtedness then outstanding incurred pursuant to clause (v) of this Section 4.09(b)
to refund, refinance or replace any other Indebtedness incurred pursuant to this clause
(iv), not to exceed $10.0 million at any time outstanding;

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     (v) the incurrence by the Company or any of its Restricted Subsidiaries of Permitted
Refinancing Indebtedness in exchange for, or the net proceeds of which are used to refund,
refinance or replace, Indebtedness (other than intercompany Indebtedness) that was permitted
by this Indenture to be incurred under Section 4.09(a) hereof or clauses (ii), (iii), (iv)
or (v) of this Section 4.09(b);

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

     (vii) the issuance by any of the Company’s Restricted Subsidiaries to the Company or
any of its Restricted Subsidiaries of shares of Preferred Stock, provided that (A) any
subsequent issuance or transfer of Equity Interests that results in any such Preferred Stock
being held by a Person other than the Company or a Restricted Subsidiary of the Company and
(B) any sale or other transfer of any such Preferred Stock to a Person that is not either
the Company or a Restricted Subsidiary of the Company, will be deemed, in each case, to
constitute an issuance of Preferred Stock by the Company or such Restricted Subsidiary, as
the case may be, that was not permitted by this clause (vii);

     (viii) the incurrence by the Company or any of its Subsidiaries of Hedging Obligations;

     (ix) the guarantee by the Company or any of the Guarantors of Indebtedness of the
Company or any Guarantor that was permitted to be incurred by another provision of this
Section 4.09; provided that if such Indebtedness is by its express terms subordinated in
right of payment to the Notes or the Subsidiary Guarantees of such Restricted Subsidiary, as
applicable, any such guarantee of the Notes shall be subordinated in right of payment to
such Guarantor’s Subsidiary Guarantee with respect to the Notes substantially to the same
extent as such Indebtedness is subordinated to the Notes or the Subsidiary Guarantee of such
Restricted Subsidiary, as applicable;

     (x) the incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness
in respect of workers’ compensation claims, self-insurance obligations,
bankers’ acceptances, performance and surety bonds, completion guarantees or similar
arrangements in the ordinary course of business;

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     (xi) the incurrence by the Company or any of its Restricted Subsidiaries of
Indebtedness arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument inadvertently drawn against insufficient funds, so long as such
Indebtedness is covered within five business days;

     (xii) Indebtedness arising from agreements of the Company or a Restricted Subsidiary
providing for indemnification, adjustment of purchase price, earn out or other similar
obligations, in each case, incurred or assumed in connection with the acquisition or
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 Subsidiary
for the purpose of financing such acquisition; provided, however, that (A) such Indebtedness
is not reflected on the balance sheet of the Company or any Restricted Subsidiary
(contingent obligations referred to in a footnote to financial statements and not otherwise
reflected on the balance sheet will not be deemed to be reflected on such balance sheet for
purposes of this clause (A)) and (B) the maximum assumable liability in respect of all such
Indebtedness shall at no time exceed the gross proceeds including noncash proceeds (the fair
market value of such noncash proceeds being measured at the time received and without giving
effect to any subsequent changes in value) actually received by the Company and any
Restricted Subsidiaries in connection with such disposition;

     (xiii) the incurrence by Foreign Subsidiaries (other than Guarantors) of Indebtedness
in an aggregate principal amount (or accreted value, as applicable) at any time outstanding,
including all Permitted Refinancing Indebtedness incurred to refund, defease, renew, extend,
refinance or replace any Indebtedness incurred pursuant to this clause (xiii), not to exceed
$10.0 million; and

     (xiv) the incurrence by the Company or any of its Restricted Subsidiaries of additional
Indebtedness in an aggregate principal amount (or accreted value, as applicable) at any time
outstanding, including all Permitted Refinancing Indebtedness incurred to refund, defease,
renew, extend, refinance or replace any Indebtedness incurred pursuant to this clause (xiv),
not to exceed $25.0 million at any one time outstanding.

          (c) For purposes of determining compliance with this Section 4.09, in the event that an item
of Indebtedness (including Acquired Debt) meets the criteria of more than one of the categories of
Permitted Debt described in clauses (i) through (xiv) of Section 4.09(b) above or is entitled to be
incurred pursuant to Section 4.09(a) hereof, the Company will be permitted to divide and classify
(or later classify or reclassify) in whole or in part, in its sole discretion, such item of
Indebtedness in any manner that complies with this Section 4.09. Indebtedness under the Credit
Agreement outstanding on the Issue Date will initially be deemed to have been incurred pursuant to
clause (i) of Section 4.09(b) and the Company shall not be permitted to divide or reclassify all or
any portion of such Indebtedness. The accrual of interest, the accretion or amortization of
original issue discount, the payment of interest on any
Indebtedness in the form of additional Indebtedness with the same terms, the reclassification
of preferred stock as Indebtedness due to a change in accounting principles, and the payment of
dividends on Disqualified Stock in the form of additional shares of the same class of Disqualified

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Stock will not be deemed to be an incurrence of Indebtedness or an issuance of Disqualified Stock
for purposes of this Section 4.09; provided, in each such case, that the amount of any such
accrual, accretion or payment is included in Fixed Charges of the Company as accrued.
Notwithstanding any other provision of this Section 4.09, the maximum amount of Indebtedness that
the Company or any Restricted Subsidiary may incur pursuant to this Section 4.09 shall not be
deemed to be exceeded solely as a result of fluctuations in exchange rates or currency values. The
amount of any Indebtedness outstanding as of any date will be:

	 	(1)  	the accreted value of the Indebtedness, in the case of any
Indebtedness issued with original issue discount;
	 
	 	(2)  	the principal amount of the Indebtedness, in the case of any
other Indebtedness, or the liquidation preference in the case of Disqualified
Stock or Preferred Stock; and
	 
	 	(3)  	in respect of Indebtedness of another Person secured by a Lien
on the assets of the specified Person, the lesser of:

	 	(a)  	the fair market value of such assets at the
date of determination; and
	 
	 	(b)  	the amount of the Indebtedness of the other
Person.

Indebtedness will not include the obligations of any Person (A) resulting from the endorsement of
negotiable instruments for collection in the ordinary course of business, (B) under stand-by
letters of credit to the extent collateralized by cash or Cash Equivalents and (C) resulting
exclusively from representations, warranties, covenants and indemnities given by such Person that
are reasonably customary for sellers or transferors in an accounts receivable securitization
transaction.

Section 4.10 Asset Sales.

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

     (i) the Company or the Restricted Subsidiary, as the case may be, receives
consideration at the time of such Asset Sale at least equal to the fair market value of the
assets or Equity Interests issued or sold or otherwise disposed of; and

     (ii) in the case of Asset Sales involving consideration in excess of $5.0 million, the
fair market value is determined by the Company’s Board of Directors and evidenced by a
resolution of the Board of Directors set forth in an Officer’s Certificate delivered to the
Trustee; and

     (iii) at least 75% of the consideration received in the Asset Sale by the Company or
such Restricted Subsidiary, as the case may be, is in the form of cash or Cash Equivalents.

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For purposes of this provision, each of the following will be deemed to be cash:

     (A) any liabilities, as shown on the Company’s or such Restricted Subsidiary’s
most recent consolidated balance sheet, of the Company or any Restricted Subsidiary
(other than contingent liabilities and liabilities that are by their terms
subordinated to the Notes or any Subsidiary Guarantee) that are assumed by the
transferee of any such assets and from which the Company and all Restricted
Subsidiaries have been validly released by all relevant creditors in writing;

     (B) any securities, notes or other obligations received by the Company or any
such Restricted Subsidiary from such transferee that are contemporaneously, subject
to ordinary settlement periods, converted by the Company or such Restricted
Subsidiary into cash or Cash Equivalents, to the extent of the cash or Cash
Equivalents received in that conversion; and

     (C) any stock or other assets of the kind referred to in clause (ii) or (iv) of
the next succeeding paragraph, or any Designated Noncash Consideration received by
the Company or any of its Restricted Subsidiaries in such Asset Sale having an
aggregate fair market value, taken together with all other Designated Noncash
Consideration received pursuant to this clause (iii) that is at that time
outstanding, not to exceed the greater of (x) $20.0 million and (y) 2% of Total
Assets at the time of the receipt of such Designated Noncash Consideration (with the
fair market value of each item of Designated Noncash Consideration being measured at
the time received without giving effect to subsequent changes in value).

          (b) Within 360 days after the receipt of any Net Proceeds from an Asset Sale, the Company (or
the applicable Restricted Subsidiary, as the case may be) may apply such Net Proceeds, at its
option:

     (i) to repay Senior Debt or Guarantor Senior Debt (other than Indebtedness owed to the
Company or any Subsidiary), and, if the Senior Debt or Guarantor Senior Debt repaid is
revolving Indebtedness, to correspondingly reduce commitments with respect thereto;

     (ii) to acquire (or enter into a binding agreement to acquire; provided that such
commitment will be subject only to customary conditions (other than financing) and such
acquisition will be consummated within 90 days after the end of such 360-day period) all or
substantially all of the assets of, or a majority of the Voting Stock of, another Permitted
Business;

     (iii) to make a capital expenditure; or

     (iv) to acquire (or enter into a binding agreement to acquire; provided that such
commitment will be subject only to customary conditions (other than financing) and such
acquisition will be consummated within 90 days after the end of such 360-day period) other
long-term assets that are used or useful in a Permitted Business.

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

          (c) Any Net Proceeds from Asset Sales that are not applied or invested as provided in Section
4.10(b) hereof will constitute “Excess Proceeds”. When the aggregate amount of Excess Proceeds
exceeds $10.0 million, the Company will make an Asset Sale Offer to all Holders of Notes and all
holders of other Indebtedness that is pari passu with the Notes containing provisions similar to
those set forth in this Indenture with respect to offers to purchase or redeem with the proceeds of
sales of assets in accordance with Section 3.09 hereof to purchase the maximum principal amount of
Notes and such other pari passu Indebtedness that may be purchased out of the Excess Proceeds. The
offer price in any Asset Sale Offer will be equal to 100% of principal amount plus accrued and
unpaid interest and Additional Interest, if any, to the date of purchase, and will be payable in
cash. If any Excess Proceeds remain after consummation of an Asset Sale Offer, the Company may use
such Excess Proceeds for any purpose not otherwise prohibited by this Indenture. If the aggregate
principal amount of Notes and other pari passu Indebtedness tendered into such Asset Sale Offer
exceeds the amount of Excess Proceeds, the Trustee will select the Notes and other pari passu
Indebtedness to be purchased on a pro rata basis. Upon completion of each Asset Sale Offer, the
amount of Excess Proceeds will be reset at zero.

          The Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent such laws and regulations are
applicable in connection with the repurchase of Notes as a result of an Asset Sale Offer. To the
extent that the provisions of any securities laws or regulations conflict with the provisions of
Section 3.09 or 4.10 hereof, the Company will comply with the applicable securities law and
regulations and will not be deemed to have breached its obligations under Section 3.09 hereof or
this Section 4.10 by virtue of such compliance.

Section 4.11 Transactions with Affiliates.

          (a) The Company will not, and will not permit any of its Restricted Subsidiaries to, make any
payment to, or sell, lease, transfer or otherwise dispose of any of its properties or assets to, or
purchase any property or assets from, or enter into or make or amend any transaction, contract,
agreement, understanding, loan, advance or guarantee with, or for the benefit of, any Affiliate
(each, an “Affiliate Transaction”), unless:

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

     (ii) the Company delivers to the Trustee:

     (A) with respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $5.0 million, a
resolution of the Board of Directors set forth in an Officer’s Certificate

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certifying that such Affiliate Transaction complies with this Section 4.11(a) and
that such Affiliate Transaction has been approved by a majority of the disinterested
members of the Board of Directors; and

     (B) with respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $15.0 million, a written
opinion from an independent investment banking, accounting or appraisal firm of
nationally recognized standing to the effect that such Affiliate Transaction is
fair, from a financial standpoint, to the Company and its Restricted Subsidiaries or
not materially less favorable to the Company and its Restricted Subsidiaries than
could reasonably be expected to be obtained at the time in an arm’s length
transaction with a Person who was not an Affiliate.

          (b) The foregoing provisions will not be deemed to be Affiliate Transactions and, therefore,
will not be subject to the provisions of Section 4.11(a) hereof:

     (i) any employment agreements or arrangements, employee benefit plan or arrangements,
officer and director indemnification agreements or arrangements or other similar agreements
or arrangements entered into by the Company or any of its Restricted Subsidiaries in the
ordinary course of business;

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

     (iii) the payment by the Company or any Restricted Subsidiary to the TC Group L.L.C.
and any of their Affiliates 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 members of the Board of Directors or a majority of the disinterested
members of the Board of Directors of the Company, in each case in good faith;

     (iv) transactions in the ordinary course of the business of the Company and its
Restricted Subsidiaries, provided that such transactions are on terms that are no less
favorable to the Company or the relevant Restricted Subsidiary than those that would have
been obtained in a comparable transaction by the Company or such Restricted Subsidiary with
an unrelated person

     (v) payment of reasonable directors fees and indemnity provided on behalf of officers,
directors or employees of the Company or any of its Restricted Subsidiaries;

     (vi) any issuance or sale of Equity Interests (other than Disqualified Stock) to
Affiliates of the Company;

     (vii) Restricted Payments or Permitted Investments hereof (other than pursuant to
clauses (iii) and (xvi) of the definition of Permitted Investments) that, in each case, do
not violate the provisions of this Indenture described above in Section 4.07; and

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     (viii) (a) payments of $11.0 million to be made to TC Group, L.L.C. upon consummation
of the Acquisition and (b) amounts payable to TC Group, L.L.C. pursuant to the management
agreement, as in effect on the closing date of the Acquisition and on the terms described in
the Company’s Offering Memorandum dated August 17, 2004, between the Company and TC Group,
L.L.C. or pursuant to any amendment, restatement or replacement thereof to the extent that
the terms of any such amendment, restatement or replacement are not, taken as a whole,
disadvantageous to the Holders of the Notes in any material respect, provided that any
payments pursuant to this clause (b) in excess of $2.5 million per year, plus reasonable
out-of-pocket expenses incurred by TC Group, L.L.C. in connection with its performance of
management or other services under such management agreement, shall be subject to the first
paragraph of this Section 4.11.

Section 4.12 Liens.

          The Company will not and will not permit any Restricted Subsidiary that is a Guarantor to,
directly or indirectly, create, incur, assume or suffer to exist any Lien of any kind (other than
Permitted Liens) that secures obligations under any Indebtedness ranking pari passu with or
subordinated to the Notes or any Subsidiary Guarantee on any asset or property of the Company or
any such Restricted Subsidiary, or any income or profits therefrom, or assign or convey any right
to receive income therefrom, unless:

          (1) in the case of Liens securing Indebtedness subordinated to the Notes or any Subsidiary
Guarantees, the Notes or the Subsidiary Guarantee, as the case may be, is secured by a Lien on such
property, assets or proceeds that is senior in priority to such Liens; or

          (2) in all other cases, the Notes or the Subsidiary Guarantee, as the case may be, is equally
and ratably secured, except that the foregoing shall not apply to:

     (i) Liens existing on the Issue Date to the extent and in the manner such Liens
are in effect on the Issue Date;

     (ii) Liens securing the Notes and the Subsidiary Guarantees and the Exchange
Notes (including Exchange Notes issued in exchange for Additional Notes (if any)
issued in accordance with the terms of this Indenture) and the Subsidiary Guarantees
of the Exchange Notes;

     (iii) Liens securing Senior Debt or Guarantor Senior Debt and the related
guarantees of such Senior Debt or Guarantor Senior Debt; and

     (iv) Permitted Liens.

Section 4.13 Business Activities.

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

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Section 4.14 Corporate Existence.

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

Section 4.15 Offer to Repurchase upon Change of Control.

          (a) Upon the occurrence of a Change of Control, each Holder of Notes will have the right to
require the Company to repurchase all or any part (equal to $1,000 or an integral multiple thereof)
of such Holder’s Notes pursuant to the offer described below (the “Change of Control Offer”) at an
offer price in cash equal to 101% of the aggregate principal amount thereof plus accrued and unpaid
interest and Additional Interest thereon, if any, to the date of purchase (the “Change of Control
Payment”). Within 30 days following any Change of Control, the Company will mail a notice to each
Holder describing the transaction or transactions that constitute the Change of Control and
offering to repurchase Notes on the date specified in such notice, which date will be no earlier
than 30 days and no later than 60 days from the date such notice is mailed (the “Change of Control
Payment Date”). Such notice, which will govern the terms of the Change of Control Offer, will
state: (i) that the Change of Control Offer is being made pursuant to this Section 4.15 and that
all Notes tendered will be accepted for payment; (ii) the purchase price and the purchase date;
(iii) that any Note not tendered will continue to accrue interest; (iv) that, unless the Company
defaults in the payment of the Change of Control Payment, all Notes accepted for payment pursuant
to the Change of Control Offer will cease to accrue interest after the Change of Control Payment
Date; (v) that Holders electing to have any Notes purchased pursuant to a Change of Control Offer
will be required to surrender the Notes, with the form entitled “Option of Holder to Elect
Purchase” on the reverse of the Notes completed, to the Paying Agent at the address specified in
the notice prior to the close of business on the third Business Day preceding the Change of Control
Payment Date; (vi) that Holders will be entitled to withdraw their election if the Paying Agent
receives, not later than the close of business on the second Business Day preceding the Change of
Control Payment Date, a telegram, telex, facsimile transmission or letter setting forth the name of
the Holder, the principal amount of Notes delivered for purchase and a statement that such Holder
is withdrawing his election to have the Notes purchased; and (vii) that Holders whose Notes are
being purchased only in part will be issued new Notes equal in principal amount to the unpurchased
portion of the Notes surrendered, which unpurchased portion must be equal to $1,000 in principal
amount or an
integral multiple thereof. The Company will comply with the requirements of Rule 14e-1 under
the Exchange Act and any other securities laws and regulations thereunder to the extent such laws
and regulations are applicable in connection with the repurchase of Notes as a result of a Change
of Control. To the extent that the provisions of any securities laws or regulations

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conflict with
the provisions of Section 3.09 or Section 4.15 hereof, the Company will comply with the applicable
securities laws and regulations and will not be deemed to have breached its obligations under
Section 3.09 hereof or this Section 4.15 by virtue of such compliance.

          (b) On the Change of Control Payment Date, the Company will, to the extent lawful:

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

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

     (iii) deliver or cause to be delivered to the Trustee the Notes properly accepted
together with an Officer’s Certificate stating the aggregate principal amount of Notes or
portions thereof being purchased by the Company.

The Paying Agent will promptly mail to each Holder of Notes properly tendered the Change of Control
Payment for such Notes, and the Trustee will promptly authenticate and mail (or cause to be
transferred by book entry) to each Holder a new Note equal in principal amount to any unpurchased
portion of the Notes surrendered, if any; provided that each such new Note will be in a principal
amount of $1,000 or an integral multiple thereof.

          (c) Prior to complying with any of the provisions of this Section 4.15, but in any event
within 90 days following a Change of Control, the Company will either repay all outstanding Senior
Debt or obtain the requisite consents, if any, under all agreements governing outstanding Senior
Debt to permit the repurchase of Notes required by this Section 4.15. The Company will publicly
announce the results of the Change of Control Offer on or as soon as practicable after the Change
of Control Payment Date.

          (d) Notwithstanding anything to the contrary in this Section 4.15, the Company will not be
required to make a Change of Control Offer upon a Change of Control if (1) a third party makes the
Change of Control Offer in the manner, at the times and otherwise in compliance with the
requirements set forth in Section 3.09 hereof and this Section 4.15 and purchases all Notes
properly tendered and not withdrawn under the Change of Control Offer or (2) a notice of redemption
is outstanding pursuant to Section 3.07 hereof, unless and until there is a default in payment of
the applicable redemption price.

Section 4.16 Limitation on Layering.

          The Company will not incur, create, issue, assume, guarantee or otherwise become liable for
any Indebtedness that is subordinate or junior in right of payment to any Senior Debt of the
Company and senior in right of payment to the Notes. No Guarantor will incur, create, issue,
assume, guarantee or otherwise become liable for any Indebtedness that is
subordinate or junior in right of payment to any Guarantor Senior Debt of such Guarantor and
senior in right of payment to such Guarantor’s Subsidiary Guarantee. For purposes of the
foregoing, no Indebtedness will be deemed to be subordinated or junior in right of payment to any
other Indebtedness solely by virtue of being unsecured or by virtue of the fact that the

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holders of
secured Indebtedness have entered into intercreditor or similar arrangements giving one or more of
such holders priority over the other holders in the collateral held by them.

Section 4.17 Payments for Consent.

          The Company will not, and will not permit any of its Subsidiaries to, directly or indirectly,
pay or cause to be paid any consideration to or for the benefit of any Holder of Notes for or as an
inducement to any consent, waiver or amendment of any of the terms or provisions of this Indenture
or the Notes unless such consideration is offered to be paid and is paid to all Holders of the
Notes that consent, waive or agree to amend in the time frame set forth in the solicitation
documents relating to such consent, waiver or agreement.

Section 4.18 Additional Subsidiary Guarantees.

          The Company will cause each Restricted Subsidiary that Guarantees, on the Issue Date or any
time thereafter, any Indebtedness of the Company or any Guarantor to execute and deliver to the
Trustee a Guarantee pursuant to which such Restricted Subsidiary will unconditionally Guarantee, on
a joint and several basis, the full and prompt payment of the principal of, premium, if any, and
interest (including Additional Interest, if any) on the Notes on a senior subordinated basis and
all other obligations under this Indenture. Notwithstanding the foregoing, in the event any
Guarantor is released and discharged in full from all of its obligations under its Guarantees of
(1) the Credit Agreement and (2) all other Indebtedness of the Company and its Restricted
Subsidiaries, then the Subsidiary Guarantee of such Guarantor shall be automatically and
unconditionally released or discharged; provided that such Restricted Subsidiary has not incurred
any Indebtedness or issued any Preferred Stock in reliance on its status as a Guarantor under
Section 4.09 unless such Guarantor’s obligations under such Indebtedness or Preferred Stock, as the
case may be, so incurred are satisfied in full and discharged or are otherwise permitted under one
of the exceptions available at the time of such release to Restricted Subsidiaries under Section
4.09(b).

          Each Guarantee will be limited to an amount not to exceed the maximum amount that can be
guaranteed by that Restricted Subsidiary without rendering the Guarantee, as it relates to such
Restricted Subsidiary, voidable under applicable law relating to fraudulent conveyance or
fraudulent transfer or similar laws affecting the rights of creditors generally.

          Each Guarantee shall be released in accordance with Article 10.

Section 4.19 Designation of Restricted and Unrestricted Subsidiaries.

          The Board of Directors may designate any Restricted Subsidiary to be an Unrestricted
Subsidiary if that designation would not cause a Default. If a Restricted Subsidiary is designated
as an Unrestricted Subsidiary, the aggregate fair market value of all outstanding Investments owned
by the Company and its Restricted Subsidiaries in the Subsidiary properly designated will be deemed
to be an Investment made as of the time of the designation in an
amount determined as set forth in the second paragraph of the definition of Investments and
will reduce the amount available for Restricted Payments under Section 4.07 hereof or under one or
more clauses of the definition of Permitted Investments, as determined by the Company. That
designation will only be permitted if a Restricted Payment or a Permitted Investment in such

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amount
would be permitted at that time and if the Restricted Subsidiary otherwise meets the definition of
an Unrestricted Subsidiary. The Board of Directors may redesignate any Unrestricted Subsidiary to
be a Restricted Subsidiary if the redesignation would not cause a Default; provided that the
conditions set forth in the definition of “Unrestricted Subsidiary” for such designation as a
Restricted Subsidiary are satisfied.

     Section 4.20 Activities of the Company Prior to the Closing of the Transactions.

          Prior to the consummation of the Transactions contemplated by the Acquisition Agreement, the
Company and its Restricted Subsidiaries shall not engage in any activity or enter into any
transaction or agreement (including making any Restricted Payment, incurring any Indebtedness or
issuing any Preferred Stock, incurring any Liens, entering into any merger, consolidation or sale
of all or substantially all of its assets, or engaging in any transaction with its Affiliates)
except to the extent necessary to effectuate the Transactions substantially in accordance with the
description of the Transactions set forth in the Company’s Offering Memorandum dated August 17,
2004.

ARTICLE 5.

SUCCESSORS

Section 5.01 Merger, Consolidation or Sale of Assets.

          The Company will not, directly or indirectly, (a) consolidate or merge with or into another
Person (whether or not the Company is the surviving corporation) or (b) sell, assign, transfer,
convey or otherwise dispose of all or substantially all of the properties or assets of the Company
and its Restricted Subsidiaries taken as a whole, in one or more related transactions, to another
Person, unless:

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

     (ii) the Successor Company (if other than the Company) assumes all the obligations of
the Company under the Notes, this Indenture and the Registration Rights Agreement pursuant
to agreements reasonably satisfactory to the Trustee;

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

     (iv) the Successor Company will, on the date of such transaction after giving pro forma
effect thereto and any related financing transactions as if the same had
occurred at the beginning of the applicable four-quarter period, (i) be permitted to
incur at least $1.00 of additional Indebtedness under the Fixed Charge Coverage Ratio test
in Section 4.09(a) hereof or (ii) would have a Fixed Charge Coverage Ratio greater than the
Fixed Charge Coverage Ratio existing immediately prior to that transaction; and

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     (v) each Guarantor, unless it is the other party to the transactions described above or
is released from its obligations under its Subsidiary Guarantee in accordance with this
Indenture, shall have by supplemental indenture confirmed that its Guarantee shall apply to
such Person’s obligations under this Indenture and the Notes.

          The Company will not, directly or indirectly, lease all or substantially all of its properties
or assets, in one or more related transactions, to any other Person.

          Notwithstanding the foregoing clauses (iii) and (iv):

     (A) the Company may merge with an Affiliate incorporated solely for the purpose
of reincorporating the Company in another state of the United States to realize tax
benefits so long as the amount of Indebtedness of the Company and its Restricted
Subsidiaries is not increased thereby; and

     (B) any Restricted Subsidiary of the Company may consolidate with, merge into
or transfer all or part of its properties and assets to the Company or to a
Restricted Subsidiary that is a Guarantor.

          For purposes of this Section 5.01, the sale, lease, conveyance, assignment, transfer or other
disposition of all or substantially all of the properties and assets of one or more Subsidiaries of
the Company, which properties and assets, if held by the Company instead of such Subsidiaries,
would constitute all or substantially all of the properties and assets of the Company on a
consolidated basis, shall be deemed to be the transfer of all or substantially all of the
properties and assets of the Company.

Section 5.02 Successor Corporation Substituted.

          Upon any consolidation or merger, or any sale, assignment, transfer, lease, conveyance or
other disposition of all or substantially all of the assets of the Company in accordance with
Section 5.01 hereof, the Successor Company will succeed to, be substituted for (so that from and
after the date of such consolidation, merger, sale, lease, conveyance or other disposition, the
provisions of this Indenture referring to the “Company” will refer instead to the Successor Company
and not to the Company), and may exercise every right and power of the Company under this Indenture
with the same effect as if such successor Person had been named as the Company herein; provided,
however, that the predecessor Company will not be relieved from the obligation to pay the principal
of and interest on the Notes except in the case of a sale of all of the Company’s assets in a
transaction that meets the requirements of Section 5.01 hereof.

ARTICLE 6.

DEFAULTS AND REMEDIES

Section 6.01 Events of Default.

          An “Event of Default” occurs if:

     (i) the Company defaults in the payment when due of interest on, or Additional
Interest, if any, with respect to, the Notes and such default continues for a

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period of 30
days (whether or not prohibited by the subordination provisions of this Indenture);

     (ii) the Company defaults in the payment when due of the principal of, or premium, if
any, on the Notes (whether or not prohibited by the subordination provisions of this
Indenture);

     (iii) the Company or any of its Restricted Subsidiaries for 30 days after notice fails
to comply with any of the provisions of Section 4.07, 4.09, 4.10, 4.15 or 5.01 hereof;

     (iv) the Company or any of its Restricted Subsidiaries fails to observe or perform any
other covenant or other agreement in this Indenture or the Notes for 60 days after notice
(other than a default or failure which is described in clauses (i), (ii) or (iii) above);

     (v) a default occurs under any mortgage, indenture or instrument under which there may
be issued or by which there may be secured or evidenced any Indebtedness for money borrowed
by the Company or any of its Restricted Subsidiaries (or the payment of which is guaranteed
by the Company or any of its Restricted Subsidiaries), whether such Indebtedness or
guarantee now exists, or is created after the Issue Date, which default:

     (A) is caused by a failure to pay principal of, or interest or premium, if any,
on such Indebtedness at its Stated Maturity prior to the expiration of the grace
period provided in such Indebtedness on the date of such default (a “Payment
Default”) or

     (B) results in the acceleration of such Indebtedness prior to its Stated
Maturity,

and, in each case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a Payment Default
or the maturity of which has been so accelerated, aggregates $25.0 million or more;

     (vi) the Company or any of its Restricted Subsidiaries is subject to final judgments
aggregating in excess of $25.0 million, which judgments are not paid, discharged or stayed
for a period of 60 days;

     (vii) except as permitted by this Indenture, any Subsidiary Guarantee is held in any
judicial proceeding to be unenforceable or invalid or ceases for any reason to be in full
force and effect or any Guarantor, or any Person acting on behalf of any Guarantor, denies
or disaffirms its obligations under its Subsidiary Guarantee;

     (viii) the Company or any of its Significant Subsidiaries or any group of Restricted
Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary pursuant to
or within the meaning of Bankruptcy Law:

     (A) commences a voluntary case,

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     (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 all or
substantially all of its property,

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

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

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

     (A) is for relief against the Company or any of its Significant Subsidiaries or
any group of Restricted Subsidiaries that, taken as a whole, would constitute a
Significant Subsidiary in an involuntary case;

     (B) appoints a custodian of the Company or any of its Significant Subsidiaries
or any group of Restricted Subsidiaries that, taken as a whole, would constitute a
Significant Subsidiary or for all or substantially all of the property of the
Company or any of its Significant Subsidiaries or any group of Restricted
Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary; or

     (C) orders the liquidation of the Company or any of its Significant
Subsidiaries or any group of Restricted Subsidiaries that, taken as a whole, would
constitute a Significant Subsidiary;

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

Section 6.02 Acceleration.

          In the case of an Event of Default specified in clause (viii) or (ix) of Section 6.01 hereof,
with respect to the Company or any of its Restricted Subsidiaries that is a Significant Subsidiary
or any group of Restricted Subsidiaries that, taken as a whole, would constitute a Significant
Subsidiary, all outstanding Notes will become due and payable immediately without further action or
notice. If any other Event of Default occurs and is continuing, the Trustee or the Holders of at
least 25% in principal amount of the then outstanding Notes may declare all the Notes to be due and
payable immediately.

          However, a Default under clause (iii) or (iv) above will not constitute an Event of Default
until the Trustee or the Holders of 25% in principal amount of the outstanding notes
notify the Company of the Default and the Company does not cure such Default within the time
specified after receipt of such notice.

Section 6.03 Other Remedies.

          If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy
to collect the payment of principal, premium and Additional Interest, if any,

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and interest on the
Notes or to enforce the performance of any provision of the Notes or this Indenture.

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

          In the event of any Event of Default specified in clause (v) of Section 6.01, such Event of
Default and all consequences thereof (excluding, however, any resulting payment default) will be
annulled, waived and rescinded, automatically and without any action by the Trustee or the holders
of the Notes, if within 20 days after such Event of Default arose the Company delivers an Officers’
Certificate to the Trustee stating that (x) the Indebtedness or guarantee that is the basis for
such Event of Default has been discharged or (y) 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 (z) the
default that is the basis for the Event of Default has been cured.

          Holders may not enforce this Indenture or the Notes except as provided in this Indenture and
under the TIA. Subject to the provisions of this Indenture relating to the duties of the Trustee,
the Trustee is under no obligation to exercise any of its rights or powers under this Indenture at
the request, order or direction of any of the Holders, unless such Holders have offered to the
Trustee reasonable indemnity. Subject to all provisions of this Indenture and applicable law, the
holders of a majority in aggregate principal amount of the then outstanding Notes issued under such
Indenture 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.

Section 6.04 Waiver of Past Defaults.

          Holders of not less than a majority in aggregate principal amount of the then outstanding
Notes by notice to the Trustee may on behalf of the Holders of all of the Notes waive an existing
Default or Event of Default and its consequences hereunder, except a continuing Default or Event of
Default in the payment of the principal of, premium or Additional Interest, if any, or interest on
the Notes, including in connection with an offer to purchase; provided, however, that the Holders
of a majority in aggregate principal amount of the then outstanding Notes may rescind an
acceleration and its consequences, including any related payment default that resulted from such
acceleration: (i) if the rescission would not conflict with any judgment and decree; (ii) if all
existing Events of Default have been cured or waived except nonpayment of
principal or interest that has become due solely because of the acceleration; and (iii) to the
extent the payment of such interest is lawful, interest on overdue installments of interest and
overdue principal, which has become due otherwise than by such declaration of acceleration, has
been paid. Upon any such waiver, such Default will cease to exist, and any Event of Default
arising therefrom will be deemed to have been cured for every purpose of this Indenture; but no
such waiver will extend to any subsequent or other Default or impair any right consequent thereon.

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Section 6.05 Control by Majority.

          Holders of a majority in principal amount of the then outstanding Notes may direct the time,
method and place of conducting any proceeding for exercising any remedy available to the Trustee or
exercising any trust or power conferred on it. However, the Trustee may refuse to follow any
direction that conflicts with law or this Indenture or that the Trustee determines may be unduly
prejudicial to the rights of other Holders of Notes or that may involve the Trustee in personal
liability.

Section 6.06 Limitation on Suits.

          A Holder of a Note may pursue a remedy with respect to this Indenture or the Notes only if:

          (a) the Holder of a Note gives to the Trustee written notice of a continuing Event of Default;

          (b) the Holders of at least 25% in principal amount of the then outstanding Notes make a
written request to the Trustee to pursue the remedy;

          (c) such Holder of a Note or Holders of Notes offer and, if requested, provide to the Trustee
indemnity satisfactory to the Trustee against any loss, liability or expense;

          (d) the Trustee does not comply with the request within 60 days after receipt of the request
and the offer and, if requested, the provision of indemnity; and

          (e) during such 60-day period the Holders of a majority in principal amount of the then
outstanding Notes do not give the Trustee a direction inconsistent with the request.

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

Section 6.07 Rights of Holders of Notes to Receive Payment.

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

	   	Section 6.08 Collection Suit by Trustee.

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

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

Section 6.09 Trustee May File Proofs of Claim .

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

Section 6.10 Priorities.

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

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

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

     Third: to the Company or to such party as a court of competent jurisdiction directs.

          The Trustee may fix a record date and payment date for any payment to Holders of Notes
pursuant to this Section 6.10.

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Section 6.11 Undertaking for Costs.

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

ARTICLE 7.

TRUSTEE

Section 7.01 Duties Of Trustee.

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

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

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

     (ii) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this
Indenture. However, the Trustee will examine the certificates and opinions to determine
whether or not they conform to the requirements of this Indenture.

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

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

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

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

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

          (e) No provision of this Indenture will require the Trustee to expend or risk its own funds or
incur any liability. The Trustee will be under no obligation to exercise any of its rights and
powers under this Indenture at the request of any Holders, unless such Holder has offered to the
Trustee security and indemnity satisfactory to it against any loss, liability or expense.

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

Section 7.02 Rights Of Trustee.

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

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

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

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

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

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

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

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          (h) In the event the Trustee receives inconsistent or conflicting requests and indemnity from
two or more groups of Holders of Notes, each representing less than a majority in aggregate
principal amount of the Notes outstanding, pursuant to the provisions of this Indenture, the
Trustee, in its sole discretion, may determine what action, if any, will be taken.

          (i) The rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and will be
enforceable by, the Trustee in connection with the performance of its duties under this Indenture,
and to each agent, custodian and other Person employed to act hereunder.

Section 7.03 Individual Rights of Trustee.

          The Trustee or any Affiliate of the Trustee in its individual or any other capacity may become
the owner or pledgee of Notes and may otherwise deal with the Company or any Affiliate of the
Company with the same rights it would have if it were not Trustee. However, in the event that the
Trustee acquires any conflicting interest, it must eliminate such conflict within 90 days, apply to
the SEC for permission to continue as trustee or resign. Any Agent may do the same with like
rights and duties. The Trustee is also subject to Sections 7.10 and 7.11 hereof.

Section 7.04 Trustee’s Disclaimers.

          The Trustee will not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Notes, it will not be accountable for the Company’s use of the
proceeds from the Notes or any money paid to the Company or upon the Company’s direction under any
provision of this Indenture, it will not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee and it will not be responsible for any
statement or recital herein or any statement in the Notes or any other document in connection with
the sale of the Notes or pursuant to this Indenture other than its certificate of authentication.

Section 7.05 Notice of Defaults.

          If a Default or Event of Default occurs and is continuing and if it is known to the Trustee,
the Trustee will mail to Holders of Notes a notice of the Default or Event of Default within 90
days after it occurs. Except in the case of a Default or Event of Default in payment of principal
of, premium or Additional Interest, if any, or interest on any Note, the Trustee may withhold the
notice if and so long as a committee of its Responsible Officers in good faith determines that
withholding the notice is in the interests of the Holders of the Notes.

Section 7.06 Reports by Trustee to Holders of the Notes.

          (a) Within 60 days after each May 15 beginning with the May 15 following the Issue Date, and
for so long as Notes remain outstanding, the Trustee will mail to the Holders of the Notes a brief
report dated as of such reporting date that complies with TIA § 313(a) (but if
no event described in TIA § 313(a) has occurred within the 12 months preceding the reporting
date, no report need be transmitted). The Trustee also will comply with TIA § 313(b)(2). The
Trustee will also transmit by mail all reports as required by TIA § 313(c).

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          (b) A copy of each report at the time of its mailing to the Holders of Notes will be mailed to
the Company and filed with the SEC and each stock exchange on which the Notes are listed in
accordance with TIA § 313(d). The Company will promptly notify the Trustee when the
Notes are listed on any stock exchange.

Section 7.07 Compensation and Indemnity.

          (a) The Company will pay to the Trustee from time to time such compensation as the Company and
the Trustee from time to time have agreed in writing for its acceptance of this Indenture and
services hereunder. The Trustee’s compensation will not be limited by any law on compensation of a
trustee of an express trust. The Company will reimburse the Trustee promptly upon request for all
reasonable disbursements, advances and expenses incurred or made by it in addition to the
compensation for its services. Such expenses will include the reasonable compensation,
disbursements and expenses of the Trustee’s agents and counsel.

          (b) The Company will indemnify the Trustee or any predecessor Trustee against any and all
losses, liabilities or expenses, including taxes (except for taxes based upon the income of the
Trustee), incurred by it arising out of or in connection with the acceptance or administration of
its duties under this Indenture, including the costs and expenses of enforcing this Indenture
against the Company and the Guarantors (including this Section 7.07) and defending itself against
any claim (whether asserted by the Company, the Guarantors, any Holder or any other person) or
liability in connection with the exercise or performance of any of its powers or duties hereunder,
except to the extent any such loss, liability or expense may be attributable to its gross
negligence or bad faith. The Trustee will notify the Company promptly of any claim for which it
may seek indemnity. Failure by the Trustee to so notify the Company will not relieve the Company
or any of its Guarantors of its obligations hereunder. The Company or such Guarantor will defend
the claim and the Trustee will cooperate in the defense. The Trustee may have separate counsel and
the Company will pay the reasonable fees and expenses of such counsel. The Company or any of the
Guarantors need not pay for any settlement made without their consent, which consent will not be
unreasonably withheld.

          (c) The obligations of the Company and the Guarantors under this Section 7.07 will survive the
satisfaction and discharge of this Indenture and the resignation or removal of the Trustee.

          (d) To secure the Company’s payment obligations in this Section 7.07, the Trustee will have a
Lien prior to the Notes on all money or property held or collected by the Trustee, except that held
in trust to pay principal and interest on particular Notes. Such Lien will survive the
satisfaction and discharge of this Indenture.

          (e) When the Trustee incurs expenses or renders services after an Event of Default specified
in Section 6.01(viii) or (ix) hereof occurs, the expenses and the compensation
for such services (including the fees and expenses of its agents and counsel) are intended to
constitute expenses of administration under any Bankruptcy Law.

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          (f) The Trustee will comply with the provisions of TIA § 313(b)(2) to the extent
applicable.

Section 7.08 Replacement of Trustee.

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

          (b) The Trustee may resign in writing at any time and be discharged from the trust hereby
created by so notifying the Company. The Holders of a majority in principal amount of the then
outstanding Notes may remove the Trustee by so notifying the Trustee and the Company in writing.
The Company may remove the Trustee if:

     (i) the Trustee fails to comply with Section 7.10 hereof;

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

     (iii) a custodian or public officer takes charge of the Trustee or its property; or

     (iv) the Trustee becomes incapable of acting.

          (c) If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for
any reason, the Company will promptly appoint a successor Trustee. Within one year after the
successor Trustee takes office, the Holders of a majority in principal amount of the then
outstanding Notes may appoint a successor Trustee to replace the successor Trustee appointed by the
Company.

          (d) If a successor Trustee does not take office within 60 days after the retiring Trustee
resigns or is removed, the retiring Trustee (at the Company’s expense), the Company, or the Holders
of at least 10% in principal amount of the then outstanding Notes may petition any court of
competent jurisdiction for the appointment of a successor Trustee.

          (e) If the Trustee, after written request by any Holder of a Note who has been a Holder for at
least six months, fails to comply with Section 7.10 hereof, such Holder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

          (f) A successor Trustee will deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Thereupon, the resignation or removal of the retiring Trustee will
become effective, and the successor Trustee will have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee will mail a notice of its succession to Holders
of the Notes. The retiring Trustee will promptly transfer all property held by it as Trustee to the
successor Trustee, provided that all sums owing to the Trustee hereunder
have been paid and subject to the Lien provided for in Section 7.07 hereof. Notwithstanding
replacement of the Trustee pursuant to this Section 7.08, the Company’s obligations under Section
7.07 hereof will continue for the benefit of the retiring Trustee.

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Section 7.09 Successor Trustee by Merger, etc.

          If the Trustee consolidates, merges or converts into, or transfers all or substantially all of
its corporate trust business to, another corporation, the successor corporation without any further
act will be the successor Trustee.

Section 7.10 Eligibility; Disqualification.

          There will at all times be a Trustee hereunder that is a corporation organized and doing
business under the laws of the United States of America or of any state thereof that is authorized
under such laws to exercise corporate trustee power, that is subject to supervision or examination
by federal or state authorities and that has a combined capital and surplus of at least $50 million
as set forth in its most recent published annual report of condition.

          This Indenture will always have a Trustee who satisfies the requirements of TIA § 310(a)(1),
(2) and (5). The Trustee is subject to TIA § 310(b).

Section 7.11 Preferential Collection of Claims against Company.

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

ARTICLE 8.

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

Section 8.01 Option to Effect Legal Defeasance or Covenant Defeasance.

          The Company may, at the option of its Board of Directors evidenced by a resolution set forth
in an Officer’s Certificate, at any time, elect to have either Section 8.02 or 8.03 hereof be
applied to all outstanding Notes upon compliance with the conditions set forth below in this
Article 8.

     Section 8.02 Legal Defeasance and Discharge.

          Upon the Company’s exercise under Section 8.01 hereof of the option applicable to this Section
8.02, the Company and each of the Guarantors will, subject to the satisfaction of the conditions
set forth in Section 8.04 hereof, be deemed to have been discharged from its obligations with
respect to all outstanding Notes (including the Subsidiary Guarantees) on the date the conditions
set forth below are satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal
Defeasance means that the Company and the Guarantors will be deemed to have paid and discharged the
entire Indebtedness represented by the outstanding Notes (including the Subsidiary Guarantees),
which will thereafter be deemed to be “outstanding” only for the purposes of Section 8.05 hereof
and the other Sections of this Indenture referred to in clauses (i)
and (ii) below, and to have satisfied all its other obligations under such Notes, the
Subsidiary Guarantees and this Indenture (and the Trustee, on demand of and at the expense of the
Company, will execute proper instruments acknowledging the same), except for the following
provisions which will survive until otherwise terminated or discharged hereunder:

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     (i) the rights of Holders of outstanding Notes to receive solely from the trust fund
described in Section 8.04 hereof, and as more fully set forth in such Section, payments in
respect of the principal of, premium and Additional Interest, if any, and interest on such
Notes when such payments are due;

     (ii) the Company’s obligations with respect to such Notes under Sections 2.06, 2.10,
2.12 and 4.02 hereof;

     (iii) the rights, powers, trusts, duties and immunities of the Trustee hereunder and
the Company’s and the Guarantors’ obligations in connection therewith and

     (iv) this Section 8.02.

Subject to compliance with this Article 8, the Company may exercise its option under this Section
8.02 notwithstanding the prior exercise of its option under Section 8.03 hereof.

     Section 8.03 Covenant Defeasance.

          Upon the Company’s exercise under Section 8.01 hereof of the option applicable to this Section
8.03, the Company and each of the Guarantors will, subject to the satisfaction of the conditions
set forth in Section 8.04 hereof, be released from its obligations under Sections 4.03, 4.07, 4.08,
4.09, 4.10, 4.11, 4.12, 4.13, 4.15, 4.16, 4.18 and 4.19 and Article 5 hereof with respect to the
outstanding Notes on and after the date the conditions set forth below are satisfied (hereinafter,
“Covenant Defeasance”), and the Notes will thereafter be deemed not “outstanding” for the purposes
of any direction, waiver, consent or declaration or act of Holders (and the consequences of any
thereof) in connection with such covenants, but will continue to be deemed “outstanding” for all
other purposes hereunder (it being understood that such Notes will not be deemed outstanding for
accounting purposes). For this purpose, Covenant Defeasance means that, with respect to the
outstanding Notes and Subsidiary Guarantees, the Company and the Guarantors may omit to comply with
and will have no liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such
covenant or by reason of any reference in any such covenant to any other provision herein or in any
other document and such omission to comply will not constitute a Default or an Event of Default
under Section 6.01 hereof, but, except as specified above, the remainder of this Indenture and such
Notes and Subsidiary Guarantees will be unaffected thereby. In addition, upon the Company’s
exercise under Section 8.01 hereof of the option applicable to this Section 8.03 hereof, subject to
the satisfaction of the conditions set forth in Section 8.04 hereof, Sections 6.01(iii) through
6.01(vii) hereof will not constitute Events of Default.

	   	Section 8.04 Conditions to Legal or Covenant Defeasance.

          In order to exercise either Legal Defeasance or Covenant Defeasance under either Section 8.02
or 8.03 hereof:

     (i) the Company must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders, cash in United States dollars, non-callable Government Securities or a
combination thereof, in such amounts as will be sufficient, in the opinion of a

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nationally
recognized investment bank or firm of independent public accountants, to pay the principal
of, premium and Additional Interest, if any, and interest on the outstanding Notes on the
Stated Maturity or on the applicable redemption date, as the case may be, and the Company
must specify whether the Notes are being defeased to maturity or to a particular redemption
date;

     (ii) in the case of an election under Section 8.02 hereof, the Company shall deliver to
the Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming that (A)
the Company has received from, or there has been published by, the Internal Revenue Service
a ruling or (B) since the Issue Date, there has been a change in the applicable federal
income tax law; in either case to the effect that, and based thereon such Opinion of Counsel
will confirm that, the Holders of the outstanding Notes will not recognize income, gain or
loss for federal income tax purposes as a result of such Legal Defeasance and will be
subject to federal income tax on the same amounts, in the same manner and at the same times
as would have been the case if such Legal Defeasance had not occurred;

     (iii) in the case of an election under Section 8.03 hereof, the Company will deliver to
the Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming that the
Holders of the outstanding Notes will not recognize income, gain or loss for federal income
tax purposes as a result of such Covenant Defeasance and will be subject to federal income
tax on the same amounts, in the same manner and at the same times as would have been the
case if such Covenant Defeasance had not occurred;

     (iv) no Default or Event of Default has occurred and is continuing on the date of such
deposit (other than a Default or Event of Default resulting from the borrowing of funds to
be applied to such deposit and the grant of any Lien securing such borrowings);

     (v) such Legal Defeasance or Covenant Defeasance will not result in a breach or
violation of, or constitute a default under, any material agreement or instrument (other
than this Indenture) to which the Company or any of its Subsidiaries is a party or by which
the Company or any of its Subsidiaries is bound;

     (vi) the Company will deliver to the Trustee an Opinion of Counsel to the effect that,
assuming, among other things, no intervening bankruptcy of the Company between the date of
deposit and the 91st day following the deposit and assuming that no Holder is an
“insider” of the Company under applicable bankruptcy law, after the 91st day following the
deposit, the trust funds will not be subject to the effect of any applicable bankruptcy,
insolvency, reorganization or similar laws affecting creditors’ rights generally;

     (vii) the Company will deliver to the Trustee an Officer’s Certificate stating that the
deposit was not made by the Company with the intent of preferring the Holders over any other
creditors of the Company or with the intent of defeating, hindering, delaying or defrauding
any other creditors of the Company; and

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     (viii) the Company will deliver to the Trustee an Officer’s Certificate and an Opinion
of Counsel, each stating that all conditions precedent provided for or relating to Legal
Defeasance or Covenant Defeasance have been complied with.

		
	Section 8.05 	Deposited Money and Government Securities to be held in Trust; Other Miscellaneous Provisions.

          Subject to Section 8.06 hereof, all money and non-callable Government Securities (including
the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for
purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04 hereof in respect of the
outstanding Notes will be held in trust and applied by the Trustee, in accordance with the
provisions of such Notes and this Indenture, to the payment, either directly or through any Paying
Agent (including the Company acting as Paying Agent) as the Trustee may determine, to the Holders
of such Notes of all sums due and to become due thereon in respect of principal, premium and
Additional Interest, if any, and interest, but such money need not be segregated from other funds
except to the extent required by law.

          The Company will pay and indemnify the Trustee against any tax, fee or other charge imposed on
or assessed against the cash or non-callable Government Securities deposited pursuant to Section
8.04 hereof or the principal and interest received in respect thereof other than any such tax, fee
or other charge which by law is for the account of the Holders of the outstanding Notes.

          Notwithstanding anything in this Article 8 to the contrary, the Trustee will deliver or pay to
the Company from time to time upon the request of the Company any money or non-callable Government
Securities held by it as provided in Section 8.04 hereof which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written certification thereof
delivered to the Trustee (which may be the opinion delivered under Section 8.04(i) hereof), are in
excess of the amount thereof that would then be required to be deposited to effect an equivalent
Legal Defeasance or Covenant Defeasance.

Section 8.06 Repayment to Company.

          Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of, premium and Additional Interest, if any, or interest on
any Note and remaining unclaimed for two years after such principal, premium and Additional
Amounts, if any, or interest has become due and payable will be paid to the Company on its request
or (if then held by the Company) will be discharged from such trust; and the Holder of such Note
will thereafter look only to the Company for payment thereof, and all liability of the Trustee or
such Paying Agent with respect to such trust money, and all liability of the Company as trustee
thereof, will thereupon cease; provided, however, that the Trustee or such Paying Agent, before
being required to make any such repayment, may at the expense of
the Company cause to be published once, in The New York Times and The Wall Street Journal
(national edition), notice that such money remains unclaimed and that, after a date specified
therein, which will not be less than 30 days from the date of such notification or publication, any
unclaimed balance of such money then remaining will be repaid to the Company.

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Section 8.07 Reinstatement.

          If the Trustee or Paying Agent is unable to apply any United States dollars or non-callable
Government Securities in accordance with Section 8.02 or 8.03 hereof, as the case may be, by reason
of any order or judgment of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, then the Company’s and the Guarantors’ obligations under this
Indenture, the Notes and the Subsidiary Guarantees shall be revived and reinstated as though no
deposit had occurred pursuant to Section 8.02 or 8.03 hereof until such time as the Trustee or
Paying Agent is permitted to apply all such money in accordance with Section 8.02 or 8.03 hereof,
as the case may be; provided, however, that, if the Company makes any payment of principal of,
premium and Additional Interest, if any, or interest on any Note following the reinstatement of its
obligations, the Company will be subrogated to the rights of the Holders of such Notes to receive
such payment from the money held by the Trustee or Paying Agent.

ARTICLE 9.

AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.01 Without Consent of Holders of Notes.

          Notwithstanding Section 9.02 of this Indenture, the Company, the Guarantors and the Trustee
may amend or supplement this Indenture or the Notes without the consent of any Holder of a Note:

     (i) to cure any ambiguity, defect or inconsistency;

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

     (iii) to provide for the assumption of the Company’s obligations to the Holders of the
Notes in the case of a merger or consolidation or sale of all or substantially all of the
Company’s assets pursuant to Article 5 hereof;

     (iv) to make any change that would provide any additional rights or benefits to the
Holders of the Notes or that does not adversely affect the legal rights hereunder of any
Holder of a Note;

     (v) to comply with the rules of any applicable securities depository;

     (vi) to comply with requirements of the SEC in order to effect or maintain the
qualification of this Indenture under the TIA;

     (vii) to comply with the covenant contained in Article 5 hereof;

     (viii) to add Guarantees with respect to the Notes or to secure the Notes;

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     (ix) to add to the covenants of the Company or any Guarantor for the benefit of the
Holders of the Notes or surrender any right or power conferred upon the Company or any
Guarantor;

     (x) to release a Guarantor from its Subsidiary Guarantee in accordance with the
applicable provisions of this Indenture; or

     (xi) to evidence and provide for the acceptance and appointment under this Indenture of
a successor Trustee pursuant to the requirements thereof.

          The consent of the Holders is not necessary under this Indenture to approve the particular
form of any proposed amendment. It is sufficient if such consent approves the substance of the
proposed amendment.

          After an amendment under this Indenture becomes effective, the Company is to mail to Holders
of the Notes a notice briefly describing such amendment. However, the failure to give such notice
to all Holders of the Notes, or any defect therein, will not impair or affect the validity of the
amendment.

          Upon (x) the request of the Company accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental Indenture and (y) receipt by the
Trustee of the documents described in Section 7.02 hereof, the Trustee will join with the Company
in the execution of any amended or supplemental Indenture authorized or permitted by the terms of
this Indenture and to make any further appropriate agreements and stipulations that may be therein
contained, but the Trustee will not be obligated to enter into such amended or supplemental
Indenture that affects its own rights, duties or immunities under this Indenture or otherwise.

Section 9.02 With Consent of Holders of Notes.

          Except as provided below in this Section 9.02, the Company and the Trustee may amend or
supplement this Indenture (including, without limitation, Section 3.09, 4.10 and 4.15 hereof), the
Subsidiary Guarantees and the Notes with the consent of the Holders of at least a majority in
principal amount of the Notes then outstanding (including, without limitation, consents obtained in
connection with a purchase of, or tender offer or exchange offer for, the Notes), and, subject to
Sections 6.04 and 6.07 hereof, any existing Default or Event of Default (other than a Default or
Event of Default in the payment of the principal of, premium or Additional Interest, if any, or
interest on the Notes, except a payment default resulting from an acceleration that has been
rescinded) or compliance with any provision of this Indenture, the Subsidiary Guarantees or the
Notes may be waived (except a default in respect of the principal or interest on the Notes) with
the consent of the Holders of a majority in principal amount of the then outstanding Notes
(including consents obtained in connection with a purchase of, or tender offer or exchange offer
for, the Notes).

          Upon (x) the request of the Company accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental Indenture, (y) the
filing with the Trustee of evidence satisfactory to the Trustee of the consent of the Holders
of Notes as aforesaid and (z) receipt by the Trustee of the documents described in Section 7.02

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hereof, the Trustee will join with the Company in the execution of such amended or supplemental
Indenture unless such amended or supplemental Indenture affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but
will not be obligated to, enter into such amended or supplemental Indenture.

          The Company may, but will not be obligated to, fix a record date for the purpose of
determining the Persons entitled to consent to any indenture supplemental hereto. If a record date
is fixed, the Holders of Notes on such record date, or their duly designated proxies, and only such
Persons, will be entitled to consent to such supplemental indenture, whether or not such Holders
remain Holders after such record date; provided, that unless such consent will have become
effective by virtue of the requisite percentage having been obtained prior to the date which is 180
days after such record date; any such consent previously given will automatically and without
further action by any Holder be canceled and of no further effect.

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

          After an amendment, supplement or waiver under this Section 9.02 becomes effective, the
Company will mail to the Holders of Notes affected thereby a notice briefly describing the
amendment, supplement or waiver. Any failure of the Company to mail such notice, or any defect
therein, will not, however, in any way impair or affect the validity of any such amended or
supplemental Indenture or waiver. Subject to Sections 6.04 and 6.07 hereof, the Holders of a
majority in aggregate principal amount of the Notes then outstanding may waive compliance in a
particular instance by the Company with any provision of this Indenture or the Notes. However,
without the consent of each Holder affected, an amendment or waiver may not (with respect to any
Notes held by a non-consenting Holder):

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

     (ii) reduce the principal of or change the fixed maturity of any Note or alter or waive
any of the provisions with respect to the redemption of the Notes except as provided above
with respect to Sections 3.09, 4.10 and 4.15 hereof;

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

     (iv) waive a Default or Event of Default in the payment of principal of, or interest or
premium or Additional Interest, if any, on the Notes (except a rescission of acceleration of
the Notes by the Holders of at least a majority in aggregate principal amount of the then
outstanding Notes with respect to a nonpayment default and a waiver of the payment default
that resulted from such acceleration);

     (v) make any Note payable in currency other than that stated in the Notes;

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     (vi) make any change in the provisions of this Indenture relating to waivers of past
Defaults or the rights of Holders of Notes to receive payments of principal of or premium or
Additional Interest, if any, or interest on the Notes;

     (vii) waive a redemption payment with respect to any Note (other than a payment
required by Sections 3.09, 4.10 and 4.15 hereof);

     (viii) release any Guarantor from any of its obligations under its Subsidiary Guarantee
or this Indenture, except in accordance with the terms of this Indenture;

     (ix) modify the Subsidiary Guarantees in any manner adverse to the holders of the
Notes;

     (x) prior to the release of the Escrowed Funds, release or modify in any respect the
Lien of the Escrow Agent or the Escrowed Funds; or

     (xi) make any change in the foregoing amendment and waiver provisions.

          In addition, any amendment to, or waiver of, the provisions of Article 11 hereof that
adversely affects the rights of the Holders of Notes will be governed by Section 11.13 hereof.

Section 9.03 Compliance with Trust Indenture Act.

          Every amendment or supplement to this Indenture or the Notes will be set forth in a amended or
supplemental Indenture that complies with the TIA as then in effect.

Section 9.04 Revocation and Effect of Consents.

          Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder of a
Note is a continuing consent by the Holder of a Note and every subsequent Holder of a Note or
portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notation of
the consent is not made on any Note. However, any such Holder of a Note or subsequent Holder of a
Note may revoke the consent as to its Note if the Trustee receives written notice of revocation
before the date the waiver, supplement or amendment becomes effective. An amendment, supplement or
waiver becomes effective in accordance with its terms and thereafter binds every Holder.

Section 9.05 Notation on or Exchange of Notes.

          The Trustee may place an appropriate notation about an amendment, supplement or waiver on any
Note thereafter authenticated. The Company in exchange for all Notes may issue and the Trustee
will authenticate new Notes that reflect the amendment, supplement or waiver.

          Failure to make the appropriate notation or issue a new Note will not affect the validity and
effect of such amendment, supplement or waiver.

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Section 9.06 Trustee to Sign Amendments, etc.

          The Trustee will sign any amended or supplemental Indenture authorized pursuant to this
Article 9 if the amendment or supplement does not adversely affect the rights, duties, liabilities
or immunities of the Trustee. The Company may not sign an amendment or supplemental indenture
until the Board of Directors approves it. In executing any amended or supplemental indenture, the
Trustee will be entitled to receive, and (subject to Section 7.01 hereof) will be fully protected
in relying upon, an Officer’s Certificate and an Opinion of Counsel stating that the execution of
such amended or supplemental indenture is authorized or permitted by this Indenture.

ARTICLE 10.

SUBSIDIARY GUARANTEES

Section 10.01 Agreement to Guarantee.

          (a) Each of the Guarantors, jointly and severally with all other Guarantors, unconditionally
guarantees to each Holder of a Note authenticated and delivered by the Trustee and to the Trustee
and its successors and assigns, regardless of the validity and enforceability of this Indenture,
the Notes or the Obligations of the Company under this Indenture or the Notes, that:

     (i) the principal of, premium and Additional Interest, if any, and interest on the
Notes will be promptly paid in full when due, whether at maturity, by acceleration,
redemption or otherwise, and interest on the overdue principal of, premium and Additional
Interest, if any, and interest on the Notes, to the extent lawful, and all other Obligations
of the Company to the Holders or the Trustee under this Indenture, the Registration Rights
Agreement or the Notes will be promptly paid in full, all in accordance with the terms
hereof or thereof; and

     (ii) in case of any extension of time for payment or renewal of any Notes or any of
such other Obligations, that the same will be promptly paid in full when due in accordance
with the terms of the extension or renewal, whether at stated maturity, by acceleration or
otherwise.

          (b) Notwithstanding the foregoing, in the event that this Guarantee would constitute or result
in a violation of any applicable fraudulent conveyance or similar law of any relevant jurisdiction,
the liability of the Guarantors under this Indenture will be reduced to the maximum amount
permissible under such fraudulent conveyance or similar law.

          (c) Failing payment when due of any amount so guaranteed or any performance so guaranteed for
whatever reason, the Guarantors will be jointly and severally obligated to pay the same
immediately. Each Guarantor agrees that this is a guarantee of payment and not a guarantee of
collection.

	   	Section 10.02 Execution and Delivery of Subsidiary Guarantees.

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          (a) To evidence its Subsidiary Guarantee set forth in this Indenture, each Guarantor hereby
agrees that a notation of such Guarantee substantially in the form attached as Exhibit C to this
Indenture will be endorsed by an Officer of such Guarantor on each Note authenticated and delivered
by the Trustee on or after the date hereof.

          (b) Notwithstanding the foregoing, each Guarantor hereby agrees that its Guarantee set forth
herein will remain in full force and effect notwithstanding any failure to endorse on each Note a
notation of such Guarantee.

          (c) If an Officer whose signature is on this Indenture or on a Subsidiary Guarantee no longer
holds that office at the time the Trustee authenticates the Note on which a Guarantee is endorsed,
the Guarantee will be valid nevertheless.

          (d) The delivery of any Note by the Trustee, after the authentication thereof under this
Indenture, will constitute due delivery of the Subsidiary Guarantee set forth in this Indenture on
behalf of each Guarantor.

          (e) Each Guarantor hereby agrees that its obligations hereunder will be unconditional,
regardless of the validity, regularity or enforceability of the Notes or this Indenture, the
absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with
respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any
action to enforce the same or any other circumstance which might otherwise constitute a legal or
equitable discharge or defense of a guarantor.

          (f) Each Guarantor hereby waives diligence, presentment, demand of payment, filing of claims
with a court in the event of insolvency or bankruptcy of the Company, any right to require a
proceeding first against the Company, protest, notice and all demands whatsoever and covenants that
its Subsidiary Guarantee made pursuant to this Indenture will not be discharged except by complete
performance of the obligations contained in the Notes and this Indenture.

          (g) If any Holder or the Trustee is required by any court or otherwise to return to the
Company or any Guarantor, or any custodian, Trustee, liquidator or other similar official acting in
relation to either the Company or such Guarantor, any amount paid by either to the Trustee or such
Holder, the Subsidiary Guarantee made pursuant to this Indenture, to the extent theretofore
discharged, will be reinstated in full force and effect.

          (h) Each Guarantor agrees that it will not be entitled to any right of subrogation in relation
to the Holders in respect of any obligations guaranteed hereby until payment in full of all
obligations guaranteed hereby. Each Guarantor further agrees that, as between such Guarantor, on
the one hand, and the Holders and the Trustee, on the other hand:

     (i) the maturity of the Obligations guaranteed hereby may be accelerated as provided in
Article 6 of this Indenture for the purposes of the Subsidiary Guarantee made pursuant to
this Indenture, notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the Obligations guaranteed hereby; and

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     (ii) in the event of any declaration of acceleration of such Obligations as provided in
Article 6 of this Indenture, such Obligations (whether or not due and payable) will
forthwith become due and payable by such Guarantor for the purpose of the Subsidiary
Guarantee made pursuant to this Indenture.

          (i) Each Guarantor will have the right to seek contribution from any other non-paying
Guarantor so long as the exercise of such right does not impair the rights of the Holders or the
Trustee under the Subsidiary Guarantee made pursuant to this Indenture.

Section 10.03 Guarantors May Consolidate, etc. on Certain Terms.

          (a) Except as set forth in Articles 4 and 5 of this Indenture, and notwithstanding Sections
10.03(b) and (c) of this Indenture, nothing contained in this Indenture or in the Notes will
prevent any consolidation or merger of any Guarantor with or into the Company or any other
Guarantor or will prevent any transfer, sale or conveyance of the property of any Guarantor as an
entirety or substantially as an entirety to the Company or any other Guarantor.

          (b) Except as set forth in Section 10.04 of this Indenture, no Guarantor may sell or otherwise
dispose of all or substantially all of its assets to, or consolidate with or merge with or into
(whether or not such Guarantor is the surviving Person), another Person, other than the Company or
another Guarantor, unless:

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

     (ii) either:

     (A) subject to Section 10.04 hereof, the Person acquiring the property in any
such sale or disposition or the Person formed by or surviving any such consolidation
or merger assumes all the obligations of that Guarantor, pursuant to a supplemental
indenture in form and substance reasonably satisfactory to the Trustee, under this
Indenture and the Subsidiary Guarantee on the terms set forth herein or therein; or

     (B) the Net Proceeds of such sale or other disposition are applied in
accordance with the applicable provisions of this Indenture, including without
limitation, Section 4.10 hereof.

          (c) In case of any such consolidation, merger, sale or conveyance and upon the assumption by
the successor Person, by supplemental indenture, executed and delivered to the Trustee and
satisfactory in form to the Trustee, of the Subsidiary Guarantee made pursuant to this Indenture
and the due and punctual performance of all of the covenants and conditions of this Indenture to be
performed by such Guarantor, such successor Person will succeed to and be substituted for such
Guarantor with the same effect as if it had been named herein as one of the Guarantors. Such
successor Person thereupon may cause to be signed any or all of the Subsidiary Guarantees to be
endorsed upon the Notes issuable under this Indenture which theretofore have not been signed by the
Company and delivered to the Trustee. All the

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Subsidiary Guarantees so issued will in all respects have the same legal rank and benefit
under this Indenture as the Subsidiary Guarantees theretofore and thereafter issued in accordance
with the terms of this Indenture as though all of such Subsidiary Guarantees had been issued at the
date of the execution hereof.

Section 10.04 Releases.

          (a) The Subsidiary Guarantee of a Guarantor will be released (i) in connection with any sale
or other disposition of all or substantially all of the assets of that Guarantor (including by way
of merger or consolidation) to a Person that is not (either before or after giving effect to such
transaction) a Subsidiary of the Company, provided the sale or other disposition does not violate
Section 4.10 and the Net Proceeds of such sale or other disposition are applied in accordance with
the applicable provisions of this Indenture, including Section 4.10; or (ii) in connection with any
sale or other disposition of all of the Capital Stock of a Guarantor to a Person that is not
(either before or after giving effect to such transaction) a Subsidiary of the Company, provided
the sale complies with Section 4.10 and the Net Proceeds of such sale or other disposition are
applied in accordance with the applicable provisions of this Indenture, including Section 4.10;
provided, further that in case of clauses (i) and (ii) above, such Guarantor is released from its
guarantee, if any, of and all pledges and security, if any, granted in connection with the Credit
Agreement and any other Indebtedness of the Company or any Restricted Subsidiary.

          (b) Upon delivery by the Company to the Trustee of an Officer’s Certificate and an Opinion of
Counsel to the effect that such sale or other disposition was made by the Company in accordance
with the provisions of this Indenture, including without limitation Section 4.10 hereof, the
Trustee will execute any documents reasonably required in order to evidence the release of any
Guarantor from its obligations under its Subsidiary Guarantee.

          Any Guarantor not released from its obligations under its Subsidiary Guarantee will remain
liable for the full amount of principal of and interest on the Notes and for the other obligations
of any Guarantor under this Indenture as provided in this Article 10.

          (c) Upon the designation of a Guarantor as an Unrestricted Subsidiary in accordance with the
terms of this Indenture, such Guarantor will be released and relieved of its obligations under this
Indenture. Upon delivery by the Company to the Trustee of an Officer’s Certificate and an Opinion
of Counsel to the effect that such designation of such Guarantor as an Unrestricted Subsidiary was
made by the Company in accordance with the provisions of this Indenture, including without
limitation Section 4.07 hereof, the Trustee will execute any documents reasonably required in order
to evidence the release of such Guarantor from its obligations under its Subsidiary Guarantee. Any
Guarantor not released from its obligations under its Subsidiary Guarantee will remain liable for
the full amount of principal of and interest on the Notes and for the other obligations of any
Guarantor under this Indenture as provided in this Article 10.

          (d) Each Guarantor shall be released and relieved of its obligations under this Indenture in
accordance with, and subject to, Article 8 hereof.

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Section 10.05 Withholding Taxes

          (a) Except as required by applicable law, all payments made by the Guarantors under this
Indenture shall be made free and clear of, and without deduction or withholding for or on account
of, any present or future income taxes, levies, imposts, duties, charges, fees, deductions,
withholdings or Other Taxes, now or hereafter imposed, levied, collected, withheld or assessed by
any governmental authority, excluding net income taxes and franchise taxes (imposed in lieu of net
income taxes) imposed on the Trustee or any Holder as a result of a present or former connection
between the Trustee or such Holder and the jurisdiction of the governmental authority imposing such
tax or any political subdivision or taxing authority thereof or therein (other than any such
connection arising solely from the Trustee or such Holder having executed, delivered or performed
its obligations or received a payment under, or enforced, this Indenture or any other Transaction
Document). If any such non-excluded taxes, levies, imposts, duties, charges, fees, deductions or
withholdings (“Non-Excluded Taxes”) or Other Taxes are required to be withheld from any amounts
payable by the relevant Guarantor to the Trustee or such Holder hereunder, the amounts so payable
to the Trustee or such Holder shall be increased to the extent necessary to yield to the Trustee or
such Holder (after payment of all Non-Excluded Taxes and Other Taxes) interest or any such other
amounts payable hereunder at the rates or in the amounts payable.

          (b) In addition, the relevant Guarantor shall pay any Other Taxes to the relevant governmental
authority in accordance with applicable law.

          (c) Whenever any Non-Excluded Taxes or Other Taxes are payable by any Guarantor, as promptly
as possible thereafter the relevant Guarantor shall send to the Trustee for the account of the
Trustee or Holder, as the case may be, a certified copy of an original official receipt received by
the relevant Guarantor showing payment thereof if such receipt is obtainable, or, if not, such
other evidence of payment as may reasonably be required by the Trustee or such Holder. If any
Guarantor fails to pay any Non-Excluded Taxes or Other Taxes when due to the appropriate taxing
authority or fails to remit to the Trustee or any Holder, as the case may be, the required receipts
or other required documentary evidence, such Guarantor shall indemnify the Trustee and the Holders
for any incremental taxes, interest or penalties that become payable by the Trustee or any Holder
as a result of any such failure.

          (d) The agreements in this Section 10.05 shall survive the termination of this Indenture and
the payment of the Obligations of the Company under this Indenture or the Notes.

ARTICLE 11.

SUBORDINATION

Section 11.01 Agreement to Subordinate.

          The Company agrees, and each Holder by accepting a Note agrees, that the Indebtedness
evidenced by the Notes is subordinated in right of payment, to the extent and in the manner
provided in this Article 11, to the prior payment in full in cash of all Senior Debt (whether
outstanding on the date hereof or hereafter created, incurred, assumed or guaranteed), and that the
subordination is for the benefit of the holders of Senior Debt.

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Section 11.02 Liquidation; Dissolution; Bankruptcy.

          Upon any distribution to creditors of the Company in a liquidation or dissolution of the
Company, in a bankruptcy, reorganization, insolvency, receivership or similar proceeding relating
to the Company or its property, in an assignment for the benefit of creditors or in any marshalling
of the Company’s assets and liabilities, the holders of Senior Debt will be entitled to receive
payment in full in cash of all Obligations due in respect of such Senior Debt (including interest
after the commencement of any such proceeding at the rate specified in the applicable Senior Debt,
whether or not an allowable claim in any such proceeding) before the Holders of Notes will be
entitled to receive any payment with respect to the Notes, and until all Obligations with respect
to Senior Debt are paid in full in cash, any distribution to which the Holders of Notes would be
entitled shall be made to the holders of Senior Debt (except, in each case, that Holders of Notes
may receive Permitted Junior Securities and payments made from the trust described under Article
8).

Section 11.03 Default on Designated Senior Debt.

          (a) The Company may not make any payment or distribution to the Trustee or any Holder in
respect of Obligations with respect to the Notes and may not acquire from the Trustee or any Holder
any Notes for cash or property (other than Permitted Junior Securities and payments and other
distributions made from any defeasance trust created pursuant to Article 8 hereof) until all
principal and other Obligations with respect to the Senior Debt have been paid in full if:

     (i) a default in the payment of any principal, premium, if any, or interest with
respect to Designated Senior Debt occurs and is continuing beyond any applicable grace
period; or

     (ii) a default, other than a payment default, on Designated Senior Debt occurs and is
continuing that then permits holders of the Designated Senior Debt as to which such default
relates to accelerate its maturity (or that would permit such holders to accelerate with the
giving of notice or the passage of time or both) and the Trustee receives a notice of the
default (a “Payment Blockage Notice”) from the Company or the Holders of such Designated
Senior Debt or representatives of such Holders.

          (b) If the Trustee receives a Payment Blockage Notice, no subsequent Payment Blockage Notice
will be effective for purposes of this Section 10.03 unless and until (i) at least 360 days have
elapsed since the effectiveness of the immediately prior Payment Blockage Notice and (ii) all
scheduled payments of principal, premium and Additional Interest, if any, and interest on the Notes
that have come due have been paid in full in cash.

          No nonpayment default that existed or was continuing on the date of delivery of any Payment
Blockage Notice to the Trustee will be, or be made, the basis for a subsequent Payment Blockage
Notice, whether or not within a period of 360 consecutive days, unless such default has been waived
or cured for a period of not less than 90 days.

          (c) The Company may and will resume payments on and distributions in respect of the Notes and
may acquire them:

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     (i) in the case of a default referred to in Section 11.03(a)(i) hereof, upon the date
on which the default is cured or waived, or

     (ii) in the case of a default referred to in Section 11.03(a)(ii) hereof, upon the
earlier of the date on which such default is cured or waived or 179 days after the date on
which the applicable Payment Blockage Notice is received, unless the maturity of such
Designated Senior Debt has been accelerated,

if this Article 11 otherwise permits the payment, distribution or acquisition at the time of such
payment, distribution or acquisition.

Section 11.04 Acceleration of Securities.

          If payment of the Notes is accelerated because of an Event of Default, the Company will
promptly notify holders of Senior Debt of the acceleration.

Section 11.05 When Distribution Must Be Paid Over.

          In the event that the Trustee or any Holder receives any payment of any Obligations with
respect to the Notes (other than Permitted Junior Securities and payments and other distributions
made from any defeasance trust created pursuant to Section 8.04) at a time when the Trustee or such
Holder, as applicable, has actual knowledge that such payment is prohibited by Article 11 hereof,
such payment will be held by the Trustee or such Holder, in trust for the benefit of, and will be
paid forthwith over and delivered, upon written request, to, the holders of Senior Debt as their
interests may appear or their Representative under this Indenture or other agreement (if any)
pursuant to which Senior Debt may have been issued, as their respective interests may appear, for
application to the payment of all Obligations with respect to Senior Debt remaining unpaid to the
extent necessary to pay such Obligations in full in accordance with their terms, after giving
effect to any concurrent payment or distribution to or for the holders of Senior Debt.

          With respect to the holders of Senior Debt, the Trustee undertakes to perform only such
obligations on the part of the Trustee that are specifically set forth in this Article 11, and no
implied covenants or obligations with respect to the holders of Senior Debt will be read into this
Indenture against the Trustee. The Trustee will not be deemed to owe any fiduciary duty to the
holders of Senior Debt, and will not be liable to any such holders if the Trustee pays over or
distributes to or on behalf of Holders or the Company or any other Person money or assets to which
any holders of Senior Debt are entitled by virtue of this Article 11, except if such payment is
made as a result of the willful misconduct or negligence of the Trustee.

Section 11.06 Notice by Company

          The Company will promptly notify the Trustee and the Paying Agent of any facts known to the
Company that would cause a payment of any Obligations with respect to the Notes to violate this
Article 11, but failure to give such notice will not affect the subordination of the Notes to the
Senior Debt as provided in this Article 11.

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          The Trustee will be entitled to rely on the delivery to it of a written notice by a person
representing himself to be a holder of Senior Debt (or a trustee or agent on behalf of such holder)
to establish that such notice has been given by a holder of Senior Debt (or a trustee or agent on
behalf of any such holder). In the event that the Trustee determines in good faith that further
evidence is required with respect to the right of any person as holder of Senior Debt to
participate in any payment or distribution pursuant to this Article 11, the Trustee may request
such person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount of
Senior Debt held by such person. If evidence of the extent to which such person is entitled to
participate in any payment or distribution pursuant to this Article 11 is not furnished, the
Trustee may defer any payment which it may be required to make for the benefit of such person
pursuant to the terms of this Indenture pending judicial determination as to the rights of such
person to receive such payment.

Section 11.07 Subrogation.

          After all Senior Debt is paid in full in cash and until the Notes are paid in full, Holders of
Notes will be subrogated (equally and ratably with all other Indebtedness pari passu with the
Notes) to the rights of holders of Senior Debt to receive distributions applicable to Senior Debt
to the extent that distributions otherwise payable to the Holders of Notes have been applied to the
payment of Senior Debt. A distribution made under this Article 11 to holders of Senior Debt that
otherwise would have been made to Holders of Notes is not, as between the Company and Holders, a
payment by the Company on the Notes.

Section 11.08 Relative Rights.

          This Article 11 defines the relative rights of Holders of Notes and holders of Senior Debt.
Nothing in this Indenture will:

     (i) impair, as between the Company and Holders of Notes, the obligation of the Company,
which is absolute and unconditional, to pay principal of and interest on the Notes in
accordance with their terms;

     (ii) affect the relative rights of Holders of Notes and creditors of the Company other
than their rights in relation to holders of Senior Debt; or

     (iii) prevent the Trustee or any Holder of Notes from exercising its available remedies
upon a Default or Event of Default, subject to the rights of holders and owners of Senior
Debt to receive distributions and payments otherwise payable to Holders of Notes.

          If the Company fails because of this Article 11 to pay principal of or interest on a Note on
the due date, that failure is still a Default or Event of Default.

Section 11.09 Subordination May Not Be Impaired by Company.

          No right of any holder of Senior Debt to enforce the subordination of the Indebtedness
evidenced by the Notes will be impaired by any act or failure to act by the

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Company or any Holder or by the failure of the Company or any Holder to comply with this
Indenture.

Section 11.10 Distribution or Notice to Representative.

          Whenever a distribution is to be made or a notice given to holders of Senior Debt, the
distribution may be made and the notice given to their Representative.

          Upon any payment or distribution of assets of the Company referred to in this Article 11, the
Trustee and the Holders of Notes will be entitled to rely upon any order or decree made by any
court of competent jurisdiction or upon any certificate of the Representative or of the liquidating
trustee or agent or other Person making any distribution to the Trustee or to the Holders of Notes
for the purpose of ascertaining the Persons entitled to participate in such distribution, the
holders of the Senior Debt and other Indebtedness of the Company, the amount thereof or payable
thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or
to this Article 11.

Section 11.11 Rights of Trustee and Paying Agent.

          Notwithstanding the provisions of this Article 11 or any other provision of this Indenture,
the Trustee will not be charged with knowledge of the existence of any facts that would prohibit
the making of any payment or distribution by the Trustee, and the Trustee and the Paying Agent may
continue to make payments on the Notes, unless the Trustee has received at its Corporate Trust
Office at least three Business Days prior to the date of such payment written notice of facts that
would cause the payment of any Obligations with respect to the Notes to violate this Article 11.
Only the Company or a Representative may give the notice. Nothing in this Article 11 will impair
the claims of, or payments to, the Trustee under or pursuant to Section 7.07 hereof.

          The Trustee in its individual or any other capacity may hold Senior Debt with the same rights
it would have if it were not Trustee. Any Agent may do the same with like rights.

Section 11.12 Authorization to Effect Subordination.

          Each Holder of Notes, by the Holder’s acceptance thereof, authorizes and directs the Trustee
on such Holder’s behalf to take such action as may be necessary or appropriate to effectuate the
subordination as provided in this Article 11, and appoints the Trustee to act as such Holder’s
attorney-in-fact for any and all such purposes. If the Trustee does not file a proper proof of
claim or proof of debt in the form required in any proceeding referred to in Section 6.09 hereof at
least 30 days before the expiration of the time to file such claim, the credit agents are hereby
authorized to file an appropriate claim for and on behalf of the Holders of the Notes.

Section 11.13 Amendments.

          The provisions of this Article 11 will not be amended or modified without the written consent
of the holders of at least 75% in aggregate principal amount of the Notes then outstanding if such
amendment would adversely affect the rights of Holders of Notes.

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ARTICLE 12.

SATISFACTION AND DISCHARGE

Section 12.01 Satisfaction and Discharge.

          This Indenture will be discharged and will cease to be of further effect as to all Notes
issued thereunder, when:

	 	(i)  	either:

	 	(A)  	all Notes that have been authenticated, except lost, stolen or
destroyed Notes that have been replaced or paid and Notes for whose payment
money has been deposited in trust and thereafter repaid to the Company, have
been delivered to the Trustee for cancellation; or
	 
	 	(B)  	all Notes that have not been delivered to the Trustee for
cancellation have become due and payable by the reason of the mailing of a
notice of redemption or otherwise will become due and payable within one year
by reason of the mailing of a notice of redemption or otherwise and the Company
or any Guarantor has irrevocably deposited or caused to be deposited with the
Trustee as funds in trust solely for the benefit of the Holders, cash in U.S.
dollars, non-callable Government Securities or a combination of cash in U.S.
dollars and non-callable Government Securities, in amounts as will be
sufficient without consideration of any reinvestment of interest, to pay and
discharge the entire indebtedness on the Notes not delivered to the Trustee for
cancellation of principal, premium and Additional Interest, if any, and accrued
interest to the date of maturity or redemption;

	 	(ii)  	no Default or Event of Default has occurred and is continuing on the date of
the deposit or will occur as a result of the deposit (other than a Default resulting
from the borrowing of funds to be applied to such deposit and the grant of any Lien
securing such borrowing) and the deposit will not result in a breach or violation of,
or constitute a default under, any other instrument to which the Company or any
Guarantor is a party or by which the Company or any Guarantor is bound;
	 
	 	(iii)  	the Company or any Guarantor has paid or caused to be paid all sums payable by
it under this Indenture; and
	 
	 	(iv)  	the Company has delivered irrevocable instructions to the Trustee under this
Indenture to apply the deposited money toward the payment of the Notes at maturity or
the redemption date, as the case may be.

          In addition, the Company must deliver an Officer’s Certificate and an Opinion of Counsel to
the Trustee stating that all conditions precedent to satisfaction and discharge have been
satisfied.

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          Notwithstanding the satisfaction and discharge of this Indenture, if money has been deposited
with the Trustee pursuant to Section 12.01(i)(B) hereof, the provisions of Section 12.02 and
Section 8.06 will survive. In addition, nothing in this Section 12.01 will be deemed to discharge
those provisions of Section 7.07 hereof, that, by their terms, survive the satisfaction and
discharge of this Indenture.

Section 12.02 Application of Trust Money.

          Subject to the provisions of Section 8.06 hereof, all money deposited with the Trustee
pursuant to Section 12.01 will be held in trust and applied by it, in accordance with the
provisions of the Notes and this Indenture, to the payment, either directly or through any Paying
Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the
Persons entitled thereto, of the principal (and premium, if any) and interest for whose payment
such money has been deposited with the Trustee; but such money need not be segregated from other
funds except to the extent required by law.

          If the Trustee or Paying Agent is unable to apply any money or Government Securities in
accordance with Section 12.01 hereof by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Company’s and any Guarantor’s obligations under this Indenture and the Notes
will be revived and reinstated as though no deposit had occurred pursuant to Section 12.01 hereof;
provided that if the Company has made any payment of principal of, premium, if any, or interest on
any Notes because of the reinstatement of its obligations, the Company will be subrogated to the
rights of the Holders of such Notes to receive such payment from the money or Government Securities
held by the Trustee or Paying Agent.

ARTICLE 13.
MISCELLANEOUS

Section 13.01 Trust Indenture Act Controls.

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

Section 13.02 Notices.

          Any notice or communication by the Company or the Trustee to the other is duly given if in
writing and delivered in Person or mailed by first class mail (registered or certified, return
receipt requested), telecopier or overnight air courier guaranteeing next day delivery, to the
other’s address:

If to the Company or any Guarantor:

Standard Aero Holdings, Inc.

500-1780 Wellington Avenue

Winnipeg, Manitoba, Canada

Attention: Bradley Bertouille (Fax: 204-784-9647)

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With a copy to:

Latham & Watkins LLP

885 Third Avenue

New York, New York

Attention: Ian Blumenstein, Esq. (Fax: (212) 751-4864)

If to the Trustee:

Wells Fargo Bank, National Association

213 Court Street, Suite 703

Middletown, Connecticut 06457

Attention: Corporate Trust Administration (Fax: 860-704-6219)

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

          All notices and communications (other than those sent to Holders) will be deemed to have been
duly given, at the time delivered by hand, if personally delivered; five Business Days after being
deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if telecopied; and
the next Business Day after timely delivery to the courier, if sent by overnight air courier
guaranteeing next day delivery.

          Any notice or communication to a Holder will be mailed by first class mail, certified or
registered, return receipt requested, or by overnight air courier guaranteeing next day delivery to
its address shown on the register kept by the Registrar. Any notice or communication will also be
so mailed to any Person described in TIA § 313(c), to the extent required by the TIA.
Failure to mail a notice or communication to a Holder or any defect in it will not affect its
sufficiency with respect to other Holders.

          If a notice or communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it.

          If the Company mails a notice or communication to Holders, it will mail a copy to the Trustee
and each Agent at the same time.

Section 13.03 Communications By Holders of Notes with Other Holders of Notes.

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

Section 13.04 Certificate and Opinion as to Conditions Precedent.

          Upon any request or application by the Company to the Trustee to take any action under this
Indenture, the Company will furnish to the Trustee:

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          (a) an Officer’s Certificate in form and substance reasonably satisfactory to the Trustee
(which will include the statements set forth in Section 13.05 hereof) stating that, in the opinion
of the signers, all conditions precedent and covenants, if any, provided for in this Indenture
relating to the proposed action have been satisfied; and

          (b) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee (which
will include the statements set forth in Section 13.05 hereof) stating that, in the opinion of such
counsel, all such conditions precedent and covenants have been satisfied.

Section 13.05 Statements Required in Certificate or Opinion.

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

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

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

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

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

Section 13.06 Rules by Trustee and Agents.

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

Section 13.07 No Personal Liability of Directors, Officers, Employees and Stockholders.

          No past, present or future director, officer, employee, incorporator or stockholder of the
Company or any Guarantor, as such, will have any liability for any obligations of the Company or
any Guarantor under the Notes, the Subsidiary Guarantees or this Indenture or for any claim based
on, in respect of, or by reason of, such obligations or their creation. Each Holder of Notes by
accepting a Note waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes. Such waiver may not be effective to waive liabilities
under the federal securities laws and it is the view of the SEC that such a waiver is against
public policy.

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Section 13.08 Governing Law.

          THIS INDENTURE, THE NOTES AND THE SUBSIDIARY GUARANTEES WILL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

Section 13.09 No Adverse Interpretation of Other Agreements.

          This Indenture may not be used to interpret any other indenture, loan or debt agreement of the
Company or its Subsidiaries or of any other Person. Any such indenture, loan or debt agreement may
not be used to interpret this Indenture.

Section 13.10 Successors.

          All agreements of the Company in this Indenture and the Notes will bind its successors. All
agreements of the Trustee in this Indenture will bind its successors.

Section 13.11 Severability.

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

Section 13.12 Counterpart Originals.

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

Section 13.13 Table of Contents, Headings, etc.

          The table of contents, cross-reference table and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be considered a part of
this Indenture and will in no way modify or restrict any of the terms or provisions hereof.

[Signatures on following pages]

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SIGNATURES

Dated as of August 20, 2004

	 	 	 	 	 
	 	 	STANDARD AERO HOLDINGS, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Bradley Bertouille
	

	 	 	 	 
	

	 	 	 	Name: Bradley Bertouille

Title: Senior Vice President, Finance, Treasurer

and Secretary
	 
	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL

     ASSOCIATION, AS TRUSTEE
	 
	 	 	 	 
	

	 	By:
	 	/s/ Joseph P. O’Donnell
	

	 	 	 	 
	

	 	 	 	Name: Joseph P. O’Donnell

Title: Senior Vice President

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EXHIBIT A

CUSIP NO. __________

ISIN __________

[FORM OF FACE OF NOTE]

[Applicable Restricted Securities Legend]

[Depositary Legend, if applicable]

			
	No. ___
	 	$ ___

Standard Aero Holdings, Inc.

81/4% Senior Subordinated Notes Due 2014

     Standard Aero Holdings, Inc., a Delaware corporation, promises to pay to ___, or
registered assigns, the principal sum of ___Dollars on September 1, 2014.

	 	 	 
	Interest Payment Dates:

	 	March 1 and September 1
	 
	 	 
	Record Dates:

	 	February 15 and August 15

     Additional provisions of this Note are set forth on the other side of this Security.

Dated: ___, 200_

	 	 	 	 	 	 	 
	 	 	 	 	STANDARD AERO HOLDINGS, INC.
	 
	 	 	 	 	 	 
	

	 	 	 	By:	 	 
	

	 	 	 	 	 	

	

	 	 	 	 	 	Name:
	

	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 
	TRUSTEE’S CERTIFICATE OF

AUTHENTICATION	 	 	 	 
	 
	 	 	 	 	 	 
	WELLS FARGO BANK,

     NATIONAL ASSOCIATION	 	 	 	 
	 
	 	 	 	 	 	 
	     asTrustee, certifies that this

          is one of the Notes referred

          to in the Indenture.	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	

	 	

Authorized Signatory	 	 	 	 

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[FORM OF REVERSE SIDE OF NOTE]

81/4% Senior Subordinated Note due 2014

     Capitalized terms used herein will have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

     1. Interest. Standard Aero Holdings, Inc., a Delaware corporation (the
“Company”), promises to pay interest on the principal amount of this Note at 81/4% per annum from
until maturity and will pay the Additional Interest payable pursuant to Section 2 of
the Registration Rights Agreement referred to below. The Company will pay interest and Additional
Interest, if any, semi-annually on March 1 and September 1 of each year, commencing
        , or if any such day is not a Business Day, on the next succeeding Business Day (each an
“Interest Payment Date”), with the same force and effect as if made on the date for such payment.
Interest on the Notes will accrue from the most recent date to which interest has been paid or, if
no interest has been paid, from August 20, 2004. The Company will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and
premium, if any, from time to time on demand at a rate that is 1% per annum in excess of the rate
then in effect; it will pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue installments of interest and Additional Interest (without regard to any
applicable grace periods) from time to time on demand at the same rate to the extent lawful.
Interest will be computed on the basis of a 360-day year of twelve 30-day months.

     2. Method Of Payment. The Company will pay interest on the Notes (except
defaulted interest) and Additional Interest, if any, to the Persons who are registered Holders of
Notes at the close of business on the February 15 or August 15 next (whether or not a Business Day)
preceding the Interest Payment Date, even if such Notes are canceled after such record date and on
or before such Interest Payment Date, except as provided in Section 2.14 of the Indenture with
respect to defaulted interest. The Notes will be payable as to principal, premium and Additional
Interest, if any, and interest at the office or agency of the Company maintained for such purpose,
or, at the option of the Company, payment of interest and Additional Interest, if any, may be made
by check mailed to the Holders at their respective addresses set forth in the register of Holders;
provided that payment by wire transfer of immediately available funds will be required with respect
to principal of and interest, premium and Additional Interest, if any, on, all Global Notes and all
other Notes the Holders of which have provided wire transfer instructions to the Company or the
Paying Agent if such Holders are registered Holders of at least $250,000 in principal amount of the
Notes. Such payment will be in such coin or currency of the United States of America as at the time
of payment is legal tender for payment of public and private debts.

     3. Paying Agent And Registrar Initially, Wells Fargo Bank, National Association, the Trustee under the Indenture, will
act as Paying Agent and Registrar. The Company may change any Paying Agent or Registrar without
notice to any Holder. The Company or any of its Restricted Subsidiaries may act in any such
capacity.

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     4. Indenture. The Company issued the Notes under an Indenture dated as of
August 20, 2004 (“Indenture”) among the Company, the Guarantors named therein and the Trustee. The
terms of the Notes include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb). The Notes
are subject to all such terms, and Holders are referred to the Indenture and such Act for a
statement of such terms. To the extent any provision of this Note conflicts with the express
provisions of the Indenture, the provisions of the Indenture will govern and be controlling.

     5. Optional Redemption.

          (a) Except as set forth in clauses (b) and (c) of this paragraph 5 and paragraph 6, the Notes
will not be redeemable at the Company’s option prior to September 1, 2009. Thereafter, the Company
may redeem all or a part of the Notes upon not less than 30 nor more than 60 days’ notice, at the
redemption prices (expressed as percentages of principal amount) set forth below plus accrued and
unpaid interest and Additional Interest, if any, on the Notes redeemed, to the applicable
redemption date, if redeemed during the twelve-month period beginning on September 1 of the years
indicated below:

	 	 	 	 	 
	Year	 	Percentage	 
	2009
	 	 	104.125	%
	2010
	 	 	102.750	%
	2011
	 	 	101.375	%
	2012 and thereafter
	 	 	100.000	%

          (b) Notwithstanding the foregoing, at any time prior to September 1, 2007, the Company may on
any one or more occasions redeem up to 35% of the aggregate principal amount of the Notes issued
under the Indenture (calculated after giving effect to the issuance of Additional Notes) at a
redemption price of 108.250% of the principal amount thereof, plus accrued and unpaid interest and
Additional Interest thereon, if any, to the redemption date, with the net cash proceeds of one or
more Equity Offerings by the Company or from the cash contribution of equity capital (other than
Disqualified Stock) to the Company; provided that at least 65% of the aggregate principal amount of
Notes (including Additional Notes, if any) issued under the Indenture remains outstanding
immediately after the occurrence of each such redemption (excluding Notes held by the Company and
its Subsidiaries); and provided, further, that any such redemption occurs within 90 days of the
date of the closing of such Equity Offering.

          (c) At any time prior to September 1, 2009, the Company may also redeem all or a part of the
Notes, upon not less than 30 nor more than 60 days’ prior notice, at a redemption price equal to
100% of the principal amount of Notes redeemed plus the Applicable Premium as
of, and accrued and unpaid interest and Additional Interest, if any, to the applicable
redemption date.

     6. Special Mandatory Redemption. Notwithstanding the foregoing, in the
event that the Acquisition is not consummated on or prior to September 30, 2004 or if the
Acquisition Agreement is terminated prior to such time, the Company shall redeem (the “Special

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Redemption”) the Notes, in whole but not in part, on or prior to October 4, 2004, at a redemption
price (the “Special Redemption Price”) in cash equal to 100.0% of the issue price of the Notes on
the Special Redemption Date, plus accrued and unpaid interest, to, but not including, the Special
Redemption Date. The “Special Redemption Date” means the earlier of the date specified by the
Company in an Officers’ Certificate delivered in accordance with the Escrow Agreement and October
4, 2004. The Trustee shall deliver to each Holder a written notice (specifying the information
specified in Section 3.03 of the Indenture) of the Special Redemption one Business Day prior to the
Special Redemption Date.

          Except as provided in the immediately preceding paragraph, the Company is not required to make
mandatory redemption payments with respect to the Notes.

     7. Repurchase At Option Of Holder.

          (a) If there is a Change of Control, the Company will be required to make an offer (a “Change
of Control Offer”) to repurchase all or any part (equal to $1,000 or an integral multiple thereof)
of each Holder’s Notes at a purchase price equal to 101% of aggregate principal amount thereof plus
accrued and unpaid interest and Additional Interest, if any, to the date of purchase (the “Change
of Control Payment”). Within 30 days following any Change of Control, the Company will mail a
notice to each Holder describing the transaction or transactions that constitute the Change of
Control and offering to repurchase Notes on the Change of Control Payment Date specified in the
notice, which date will be no earlier than 30 days and no later than 60 days from the date such
notice is mailed, pursuant to the procedures required by the Indenture and described in such
notice.

          (b) If the Company or a Restricted Subsidiary consummates an Asset Sale and the aggregate
amount of Excess Proceeds exceeds $10.0 million, the Company will make an Asset Sale Offer to all
Holders of Notes and all holders of other Indebtedness that is pari passu with the Notes containing
provisions similar to those set forth in the Indenture with respect to offers to purchase or redeem
with the proceeds of sales of assets (an “Asset Sale Offer”) pursuant to Section 3.09 of the
Indenture to purchase the maximum principal amount of Notes and such other pari passu Indebtedness
that may be purchased out of the Excess Proceeds. The offer price in any Asset Sale Offer will be
equal to 100% of principal amount plus accrued and unpaid interest and Additional Interest, if any,
to the date of purchase and will be payable in cash. If any Excess Proceeds remain after
consummation of an Asset Sale Offer, the Company may use such Excess Proceeds for any purpose not
otherwise prohibited by the Indenture. If the aggregate principal amount of Notes and other pari
passu Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess Proceeds, the
Trustee will select the Notes and such other pari passu Indebtedness to be purchased on a pro rata
basis. Holders of Notes that are the subject of
an offer to purchase will receive an Asset Sale Offer from the Company prior to any related
purchase date and may elect to have such Notes purchased by completing the form entitled “Option of
Holder to Elect Purchase” on the reverse of this Note.

     8. Notice Of Redemption. Except as set forth in Section 3.10 of the
Indenture, notice of redemption will be mailed at least 30 days but not more than 60 days before
the redemption date to each Holder whose Notes are to be redeemed at its registered address. Notes
in denominations larger than $1,000 may be redeemed in part but only in whole multiples of

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$1,000,
unless all of the Notes held by a Holder are to be redeemed. On and after the redemption date,
interest ceases to accrue on Notes or portions thereof called for redemption.

     9. Denominations, Transfer, Exchange.  The Notes are in registered form
without coupons in denominations of $1,000 and integral multiples of $1,000. The transfer of Notes
may be registered and Notes may be exchanged as provided in the Indenture. The Registrar and the
Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer
documents and the Company may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture. The Company need not exchange or register the transfer of any Note or
portion of a Note selected for redemption, except for the unredeemed portion of any Note being
redeemed in part. Also, it need not exchange or register the transfer of any Notes for a period of
15 days before a selection of Notes to be redeemed or during the period between a record date and
the corresponding Interest Payment Date.

     10. Persons Deemed Owners. The registered Holder of a Note may be treated
as its owner for all purposes.

     11. Amendment, Supplement And Waiver. Subject to certain exceptions, the
Indenture, the Notes or the Subsidiary Guarantees may be amended or supplemented with the consent
of the Holders of at least a majority in principal amount of the then outstanding Notes, and any
existing default or compliance with any provision of the Indenture, the Notes or the Subsidiary
Guarantees may be waived (except a default in respect of the principal or interest on the Notes)
with the consent of the Holders of a majority in principal amount of the then outstanding Notes.
Without the consent of any Holder of a Note, the Indenture, the Notes or the Subsidiary Guarantees
may be amended or supplemented to cure any ambiguity, defect or inconsistency, to provide for
uncertificated Notes in addition to or in place of certificated Notes, to provide for the
assumption of the Company’s or any Guarantor’s obligations to Holders of the Notes in case of a
merger or consolidation or sale of all or substantially all of the Company’s assets, to make any
change that would provide any additional rights or benefits to the Holders of the Notes or that
does not adversely affect the legal rights under the Indenture of any such Holder, to comply with
the rules of any applicable securities depository, to comply with the requirements of the SEC in
order to effect or maintain the qualification of the Indenture under the Trust Indenture Act, to
comply
with Section 5.01 of the Indenture, to add Guarantees with respect to the Notes or to secure
the Notes, to add to the covenants of the Company or any Guarantor for the benefit of the Holders
of the Notes or surrender any right or power conferred upon the Company or any Guarantor, to
release a Guarantor from its Subsidiary Guarantee in accordance with the applicable provisions of
the Indenture or to evidence and provide for the acceptance and appointment under the Indenture of
a successor Trustee pursuant to the procedures set forth in the Indenture.

     12. Defaults and Remedies. An “Event of Default” occurs if: (i) default for
30 days in the payment when due of interest on, or Additional Interest, if any, with respect to,
the Notes (whether or not prohibited by the subordination provisions of the Indenture); (ii)
default in payment when due of the principal of, or premium, if any, on the Notes (whether or not
prohibited by the subordination provisions of the Indenture); (iii) failure by the Company or any
of its Restricted Subsidiaries for 30 days after notice to comply with the covenants contained in
Sections 4.07, 4.09, 4.10, 4.15 or 5.01 of the Indenture; (iv) default in the performance of or
the

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failure by the Company or any of its Restricted Subsidiaries for 60 days after notice to comply
with any of its other agreements (other than a default or failure which is described in clauses
(i), (ii) or (iii) above) in the Indenture or the Notes; (v) default under any mortgage, indenture
or instrument under which there may be issued or by which there may be secured or evidenced any
Indebtedness for money borrowed by the Company or any of its Restricted Subsidiaries (or the
payment of which is guaranteed by the Company or any of its Restricted Subsidiaries) whether such
Indebtedness or guarantee now exists, or is created after the Issue Date, which default is caused
by a failure to pay principal of, or interest or premium, if any, on such Indebtedness at its
stated maturity prior to the expiration of the grace period provided in such Indebtedness on the
date of such default (a “Payment Default”) or results in the acceleration of such Indebtedness
prior to its Stated Maturity and, in each case, the principal amount of any such Indebtedness,
together with the principal amount of any other such Indebtedness under which there has been a
Payment Default or the maturity of which has been so accelerated, aggregates $25.0 million or more;
(vi) failure by the Company or any of its Restricted Subsidiaries to pay final judgments
aggregating in excess of $25.0 million, which judgments are not paid, discharged or stayed for a
period of 60 days; (vii) except as permitted by the Indenture, any Subsidiary Guarantee is held in
any judicial proceeding to be unenforceable or invalid or ceases for any reason to be in full force
and effect or any Guarantor, or any Person acting on behalf of any Guarantor, denies or disaffirms
its obligations under its Subsidiary Guarantee; or (viii) certain events of bankruptcy or
insolvency with respect to the Company or any of its Significant Subsidiaries or any group of
Restricted Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary.

     If any Event of Default occurs and is continuing, the Trustee or the Holders of at least 25%
in principal amount of the then outstanding Notes may declare all outstanding Notes to be due and
payable immediately. Notwithstanding the foregoing, in the case of an Event of Default arising from
certain events of bankruptcy or insolvency, with respect to the Company or any Significant
Subsidiary or any group of Restricted Subsidiaries that, taken as a whole, would constitute a
Significant Subsidiary, all outstanding Notes will become due and payable without further action or
notice. Holders of the Notes may not enforce the Indenture or the Notes except as provided in the
Indenture. Subject to certain limitations, Holders of a majority in principal amount of the then
outstanding Notes may direct the Trustee in its exercise of any trust or power.
The Trustee may withhold from Holders of the Notes notice of any continuing Default or Event
of Default (except a Default or Event of Default relating to the payment of principal or interest)
if it determines that withholding notice is in their interest, except with respect to a Default or
Event of Default relating to the payment of principal of, or interest or premium of Additional
Interest, if any, on, the Notes.

     In the event of any Event of Default specified in clause (v) of the first paragraph of this
Section 12, such Event of Default and all consequences thereof (excluding, however, any resulting
payment default) will be annulled, waived and rescinded, automatically and without any action by
the Trustee or the holders of the Notes, if within 20 days after such Event of Default arose the
Company delivers an Officers’ Certificate to the Trustee stating that (x) the Indebtedness or
guarantee that is the basis for such Event of Default has been discharged or (y) 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 (z) the default that is the basis for the Event of Default has
been cured.

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     The Holders of a majority in aggregate principal amount of the Notes then outstanding by
notice to the Trustee may, on behalf of the Holders of all of the Notes, waive any existing Default
or Event of Default and its consequences under the Indenture, except a continuing Default or Event
of Default in the payment of principal of, or interest or premium or Additional Interest, if any,
on, the Notes; provided, however, that the Holders of a majority in aggregate principal amount of
the then outstanding Notes may rescind an acceleration and its consequences, if the rescission
would not conflict with any judgment or decree or if all existing Events of Default have been cured
or waived.

     13. Subordination.  Payment of the principal of, premium and Additional Interest, if
any, or interest on the Notes is subordinated to the prior payment of Senior Debt on the terms
provided in the Indenture.

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

     15. No Recourse Against Others. A director, officer, employee, incorporator
or stockholder, of the Company or any Guarantor, as such, will not have any liability for any
obligations of the Company or any Guarantor under the Notes, the Indenture or the Subsidiary
Guarantees or for any claim based on, in respect of, or by reason of, such obligations or their
creation. Each Holder by accepting a Note waives and releases all such liability. The waiver and
release are part of the consideration for the issuance of the Notes.

     16. Authentication
This Note will not be valid until authenticated by the manual signature of the
Trustee or an authenticating agent.

     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).

     18. Additional Rights Of Holders Of Restricted Notes. In addition to the
rights provided to Holders of Notes under the Indenture, Holders of Restricted Notes will have all
the rights set forth in the Registration Rights Agreement dated as of August 20, 2004, between the
Company and the parties named on the signature pages thereof, or, with respect to any Additional
Notes, Holders of Restricted Notes will have all the rights set forth in one or more registration
rights agreements between the Company and the other parties thereto, relating to rights given by
the Company to the purchasers of Additional Notes (collectively, the “Registration Rights
Agreement”).

     19. CUSIP Numbers.  Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be
printed on the Notes and the Trustee may use CUSIP numbers in notices of redemption as a
convenience to Holders. No representation is made as to the accuracy of such numbers either as

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printed on the Notes or as contained in any notice of redemption and reliance may be placed only on
the other identification numbers placed thereon.

     20. Governing Law. This Note will be governed by, and construed in
accordance with, the laws of the State of New York.

     The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture and/or the Registration Rights Agreement. Requests may be made to:

Standard Aero Holdings, Inc.

500-1780 Wellington Avenue

Winnipeg, Manitoba, Canada

Attention: Bradley Bertouille

(Fax: 204-784-9647)

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ASSIGNMENT FORM

               To assign this Note, fill in the form below:

               I or we assign and transfer this Note to:

	 	 	 
	

(Print or type assignee’s name, address and zip code)

	 	 	 
	

(Insert assignee’s social security or tax I.D. No.)

and irrevocably appoint ___agent to transfer this Note on the books of the Company. The
agent may substitute another to act for him.

	 	 	 	 	 	 	 
	Date:

	 	 	 	Your Signature:	 	 
	

	 	

	 	 	 	

	 	 	 
	Signature Guarantee:
	 	 
	

	 	

(Signature must be guaranteed)

      

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

The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to SEC Rule 17Ad-15.

     In connection with any transfer or exchange of any of the Notes evidenced by this certificate
occurring prior to the date that is two years after the later of the date of original issuance of
such Notes and the last date, if any, on which such Notes were owned by the Company or any
Affiliate of the Company, the undersigned confirms that such Notes are being:

CHECK ONE BOX BELOW:

	 	 	 	 	 	 	 	 	 
	 

	 	 	(1	)	 	 ̈
	 	acquired for the undersigned’s own account, without transfer; or
	 
	 	 	 	 	 	 	 	 
	

	 	 	(2	)	 	 ̈
	 	transferred to the Company; or
	 
	 	 	 	 	 	 	 	 
	

	 	 	(3	)	 	 ̈
	 	transferred pursuant to and in compliance with Rule 144A under the
Securities Act of 1933, as amended (the “Securities Act”); or
	 
	 	 	 	 	 	 	 	 
	

	 	 	(4	)	 	 ̈
	 	transferred pursuant to an effective registration statement under the
Securities Act; or
	 
	 	 	 	 	 	 	 	 
	

	 	 	(5	)	 	 ̈
	 	transferred pursuant to and in compliance with Regulation S under the
Securities Act; or

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	 	 	(6	)	 	 ̈
	 	transferred to an institutional “accredited investor” (as defined in Rule
501(a)(1), (2), (3) or (7) under the Securities Act), that has furnished to the
Trustee a signed letter containing certain representations and agreements
(the form of which letter appears as Section 2.8 of the Indenture); or
	 
	 	 	 	 	 	 	 	 
	

	 	 	(7	)	 	 ̈
	 	transferred pursuant to another available exemption from the
registration requirements of the Securities Act of 1933.

Unless one of the boxes is checked, the Trustee will refuse to register any of the Notes evidenced
by this certificate in the name of any person other than the registered Holder thereof; provided,
however, that if box (5), (6) or (7) is checked, the Company may require, prior to registering any
such transfer of the Notes, in its sole discretion, such legal opinions, certifications and other
information as the Company may reasonably request to confirm that such transfer is being made
pursuant to an exemption from, or in a transaction not subject to, the registration requirements of
the Securities Act, such as the exemption provided by Rule 144 under such Act.

	 	 	 
	

	 	

	Signature Guarantee:

	 	Signature
	 
	 	 
	

	 	

	(Signature must be guaranteed)

	 	Signature

The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to SEC Rule 17Ad-15.

TO BE COMPLETED BY PURCHASER IF BOX (1) OR (3) ABOVE IS CHECKED.

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

	 	 	 
	 

	 	

	

	 	Dated:

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[TO BE ATTACHED TO GLOBAL NOTES]

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE

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

	 	 	 	 	 	 	 	 	 
	Date of Exchange

	 	Amount of decrease
in Principal Amount
of this Global Note
	 	Amount of increase
in Principal Amount
of this Global Note
	 	Principal Amount of this
Global Note following
such decrease or
increase
	 	Signature of
authorized
signatory of
Trustee or
Note Custodian
	 

	 	 
	 	 
	 	 
	 	 

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OPTION OF HOLDER TO ELECT PURCHASE

     If you elect to have this Note purchased by the Company pursuant to Section 4.10 or 4.15 of
the Indenture, check the appropriate box below:

	 	 	 
	 ̈
	 	 ̈
	4.10
	 	4.15

     If you want to elect to have only part of this Note purchased by the Company pursuant to
Section 4.10 or Section 4.15 of the Indenture, state the principal amount (must be integral
multiple of $1,000): $___and specify the denomination or
denominations (which shall not be less than the minimum authorized denomination) of the Notes to be
issued to the Holder for the portion of the within Note not being repurchased (in the absence of
any such specification, one such Note will be issued for the portion not being repurchased):
___.

	 	 	 	 	 	 	 
	Date:

	 	 	 	Your Signature	 	 
	

	 	

	 	 	 	

	

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

	 	 	 
	Signature Guarantee:
	 	 
	

	 	

(Signature must be guaranteed)

The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to SEC Rule 17Ad-15.

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EXHIBIT B

CUSIP NO.                     

ISIN                     

[FORM OF FACE OF SERIES B NOTE]

[Depositary Legend, if applicable]

			
	No.                     
	 	$                     

Standard Aero Holdings, Inc.

81/4% Senior Subordinated Notes, Series B, Due 2014

     Standard Aero Holdings, Inc., a Delaware corporation, promises to pay to                     , or
registered assigns, the principal sum of                      Dollars, as revised by the Schedule of Increases
and Decreases in Global Security attached hereto, on September 1, 2014.

	 	 	 
	     Interest Payment Dates:

	 	March 1 and
September 1
	 
	 	 
	     Record Dates:

	 	February 15 and
August 15

     Additional provisions of this Note are set forth on the other side of this Security.

Dated:                     , 200  

	 	 	 	 	 
	 	STANDARD AERO HOLDINGS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

TRUSTEE’S CERTIFICATE OF

AUTHENTICATION

WELLS FARGO BANK,

NATIONAL ASSOCIATION

as Trustee, certifies that this

is one of the Notes referred

to in the Indenture.

	 	 	 	 	 
	By:
	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 
	

	 	Authorized Signatory
	 	 

B-1

 

[FORM OF REVERSE SIDE OF NOTE]

81/4% Senior Subordinated Note, Series B, due 2014

          Capitalized terms used herein will have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

     1. Interest. Standard Aero Holdings, Inc., a Delaware corporation (the
“Company”), promises to pay interest on the principal amount of this Note at 81/4% per annum
from            until maturity and will pay the Additional Interest payable pursuant to Section 2 of
the Registration Rights Agreement referred to below. The Company will pay interest and Additional
Interest, if any, semi-annually on March 1 and September 1 of each year, commencing
          , or if any such day is not a Business Day, on the next succeeding Business Day (each an
“Interest Payment Date”), with the same force and effect as if made on the date for such payment.
Interest on the Notes will accrue from the most recent date to which interest has been paid or, if
no interest has been paid, from August 20, 2004. The Company will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and
premium, if any, from time to time on demand at a rate that is 1% per annum in excess of the rate
then in effect; it will pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue installments of interest and Additional Interest (without regard to any
applicable grace periods) from time to time on demand at the same rate to the extent lawful.
Interest will be computed on the basis of a 360-day year of twelve 30-day months.

     2. Method Of Payment. The Company will pay interest on the Notes (except
defaulted interest) and Additional Interest, if any, to the Persons who are registered Holders of
Notes at the close of business on the February 15 or August 15 next (whether or not a Business Day)
preceding the Interest Payment Date, even if such Notes are canceled after such record date and on
or before such Interest Payment Date, except as provided in Section 2.14 of the Indenture with
respect to defaulted interest. The Notes will be payable as to principal, premium and Additional
Interest, if any, and interest at the office or agency of the Company maintained for such purpose,
or, at the option of the Company, payment of interest and Additional Interest, if any, may be made
by check mailed to the Holders at their respective addresses set forth in the register of Holders;
provided that payment by wire transfer of immediately available funds will be required with respect
to principal of and interest, premium and Additional Interest, if any, on, all Global Notes and all
other Notes the Holders of which have provided wire transfer instructions to the Company or the
Paying Agent if such Holders are registered Holders of at least $250,000 in principal amount of the
Notes. Such payment will be in such coin or currency of the United States of America as at the time
of payment is legal tender for payment of public and private debts.

     3. Paying Agent And Registrar. Initially, Wells Fargo Bank, National Association, the Trustee under the Indenture, will
act as Paying Agent and Registrar. The Company may change any Paying Agent or Registrar without
notice to any Holder. The Company or any of its Restricted Subsidiaries may act in any such
capacity.

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     4. Indenture. The Company issued the Notes under an Indenture dated as of
August 20, 2004 (“Indenture”) among the Company, the Guarantors named therein and the Trustee. The
terms of the Notes include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb). The Notes
are subject to all such terms, and Holders are referred to the Indenture and such Act for a
statement of such terms. To the extent any provision of this Note conflicts with the express
provisions of the Indenture, the provisions of the Indenture will govern and be controlling.

     5. Optional Redemption.

          (a) Except as set forth in clauses (b) and (c) of this paragraph 5 and paragraph 6, the Notes
will not be redeemable at the Company’s option prior to September 1, 2009. Thereafter, the Company
may redeem all or a part of the Notes upon not less than 30 nor more than 60 days’ notice, at the
redemption prices (expressed as percentages of principal amount) set forth below plus accrued and
unpaid interest and Additional Interest, if any, on the Notes redeemed, to the applicable
redemption date, if redeemed during the twelve-month period beginning on September 1 of the years
indicated below:

	 	 	 	 	 
	Year	 	Percentage	 
	2009
	 	 	104.125	%
	2010
	 	 	102.750	%
	2011
	 	 	101.375	%
	2012 and thereafter
	 	 	100.000	%

          (b) Notwithstanding the foregoing, at any time prior to September 1, 2007, the Company may on
any one or more occasions redeem up to 35% of the aggregate principal amount of the Notes issued
under the Indenture (calculated after giving effect to the issuance of Additional Notes) at a
redemption price of 108.250% of the principal amount thereof, plus accrued and unpaid interest and
Additional Interest thereon, if any, to the redemption date, with the net cash proceeds of one or
more Equity Offerings by the Company or from the cash contribution of equity capital (other than
Disqualified Stock) to the Company; provided that at least 65% of the aggregate principal amount of
Notes (including Additional Notes, if any) issued under the Indenture remains outstanding
immediately after the occurrence of each such redemption (excluding Notes held by the Company and
its Subsidiaries); and provided, further, that any such redemption occurs within 90 days of the
date of the closing of such Equity Offering.

          (c) At any time prior to September 1, 2009, the Company may also redeem all or a part of the
Notes, upon not less than 30 nor more than 60 days’ prior notice, at a redemption price equal to
100% of the principal amount of Notes redeemed plus the Applicable Premium as
of, and accrued and unpaid interest and Additional Interest, if any, to the applicable
redemption date.

     6. Special Mandatory Redemption. Notwithstanding the foregoing, in the
event that the Acquisition is not consummated on or prior to September 30, 2004 or if the
Acquisition Agreement is terminated prior to such time, the Company shall redeem (the “Special

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Redemption”) the Notes, in whole but not in part, on or prior to October 4, 2004, at a redemption
price (the “Special
Redemption Price”) in cash equal to 100.0% of the issue price of the Notes on
the Special Redemption Date, plus accrued and unpaid interest, to, but not including, the Special
Redemption Date. The “Special Redemption Date” means the earlier of the date specified by the
Company in an Officers’ Certificate delivered in accordance with the Escrow Agreement and October
4, 2004. The Trustee shall deliver to each Holder a written notice (specifying the information
specified in Section 3.03 of the Indenture) of the Special Redemption one Business Day prior to the
Special Redemption Date.

          Except as provided in the immediately preceding paragraph, the Company is not required to make
mandatory redemption payments with respect to the Notes.

     7. Repurchase At Option Of Holder.

          (a) If there is a Change of Control, the Company will be required to make an offer (a “Change
of Control Offer”) to repurchase all or any part (equal to $1,000 or an integral multiple thereof)
of each Holder’s Notes at a purchase price equal to 101% of aggregate principal amount thereof plus
accrued and unpaid interest and Additional Interest, if any, to the date of purchase (the “Change
of Control Payment”). Within 30 days following any Change of Control, the Company will mail a
notice to each Holder describing the transaction or transactions that constitute the Change of
Control and offering to repurchase Notes on the Change of Control Payment Date specified in the
notice, which date will be no earlier than 30 days and no later than 60 days from the date such
notice is mailed, pursuant to the procedures required by the Indenture and described in such
notice.

          (b) If the Company or a Restricted Subsidiary consummates an Asset Sale and the aggregate
amount of Excess Proceeds exceeds $10.0 million, the Company will make an Asset Sale Offer to all
Holders of Notes and all holders of other Indebtedness that is pari passu with the Notes containing
provisions similar to those set forth in the Indenture with respect to offers to purchase or redeem
with the proceeds of sales of assets (an “Asset Sale Offer”) pursuant to Section 3.09 of the
Indenture to purchase the maximum principal amount of Notes and such other pari passu Indebtedness
that may be purchased out of the Excess Proceeds. The offer price in any Asset Sale Offer will be
equal to 100% of principal amount plus accrued and unpaid interest and Additional Interest, if any,
to the date of purchase and will be payable in cash. If any Excess Proceeds remain after
consummation of an Asset Sale Offer, the Company may use such Excess Proceeds for any purpose not
otherwise prohibited by the Indenture. If the aggregate principal amount of Notes and other pari
passu Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess Proceeds, the
Trustee will select the Notes and such other pari passu Indebtedness to be purchased on a pro rata
basis. Holders of Notes that are the subject of
an offer to purchase will receive an Asset Sale Offer from the Company prior to any related
purchase date and may elect to have such Notes purchased by completing the form entitled “Option of
Holder to Elect Purchase” on the reverse of this Note.

     8. Notice Of Redemption. Except as set forth in Section 3.10 of the
Indenture, notice of redemption will be mailed at least 30 days but not more than 60 days before
the redemption date to each Holder whose Notes are to be redeemed at its registered address. Notes
in denominations larger than $1,000 may be redeemed in part but only in whole multiples of

B-4

 

$1,000,
unless all of the Notes held by a Holder are to be redeemed. On and after the redemption date,
interest ceases to accrue on Notes or portions thereof called for redemption.

     9. Denominations, Transfer, Exchange.  The Notes are in registered form
without coupons in denominations of $1,000 and integral multiples of $1,000. The transfer of Notes
may be registered and Notes may be exchanged as provided in the Indenture. The Registrar and the
Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer
documents and the Company may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture. The Company need not exchange or register the transfer of any Note or
portion of a Note selected for redemption, except for the unredeemed portion of any Note being
redeemed in part. Also, it need not exchange or register the transfer of any Notes for a period of
15 days before a selection of Notes to be redeemed or during the period between a record date and
the corresponding Interest Payment Date.

     10. Persons Deemed Owners. The registered Holder of a Note may be treated
as its owner for all purposes.

     11. Amendment, Supplement And Waiver. Subject to certain exceptions, the
Indenture, the Notes or the Subsidiary Guarantees may be amended or supplemented with the consent
of the Holders of at least a majority in principal amount of the then outstanding Notes, and any
existing default or compliance with any provision of the Indenture, the Notes or the Subsidiary
Guarantees may be waived (except a default in respect of the principal or interest on the Notes)
with the consent of the Holders of a majority in principal amount of the then outstanding Notes.
Without the consent of any Holder of a Note, the Indenture, the Notes or the Subsidiary Guarantees
may be amended or supplemented to cure any ambiguity, defect or inconsistency, to provide for
uncertificated Notes in addition to or in place of certificated Notes, to provide for the
assumption of the Company’s or any Guarantor’s obligations to Holders of the Notes in case of a
merger or consolidation or sale of all or substantially all of the Company’s assets, to make any
change that would provide any additional rights or benefits to the Holders of the Notes or that
does not adversely affect the legal rights under the Indenture of any such Holder, to comply with
the rules of any applicable securities depository, to comply with the requirements of the SEC in
order to effect or maintain the qualification of the Indenture under the Trust Indenture Act, to
comply with Section 5.01 of the Indenture, to add Guarantees with respect to the Notes or to secure
the Notes, to add to the covenants of the Company or any Guarantor for the benefit of the Holders
of the Notes or surrender any right or power conferred upon the Company or any Guarantor, to
release a Guarantor from its Subsidiary Guarantee in accordance with the applicable provisions of
the Indenture or to evidence and provide for the acceptance and appointment under the Indenture of
a successor Trustee pursuant to the procedures set forth in the Indenture.

     12. Defaults and Remedies. An “Event of Default” occurs if: (i) default for
30 days in the payment when due of interest on, or Additional Interest, if any, with respect to,
the Notes (whether or not prohibited by the subordination provisions of the Indenture); (ii)
default in payment when due of the principal of, or premium, if any, on the Notes (whether or not
prohibited by the subordination provisions of the Indenture); (iii) failure by the Company or any
of its Restricted Subsidiaries for 30 days after notice to comply with the covenants contained in
Sections 4.07, 4.09, 4.10, 4.15 or 5.01 of the Indenture; (iv) default in the performance of or
the

B-5

 

failure by the Company or any of its Restricted Subsidiaries for 60 days after notice to comply
with any of its other agreements (other than a default or failure which is described in clauses
(i), (ii) or (iii) above) in the Indenture or the Notes; (v) default under any mortgage, indenture
or instrument under which there may be issued or by which there may be secured or evidenced any
Indebtedness for money borrowed by the Company or any of its Restricted Subsidiaries (or the
payment of which is guaranteed by the Company or any of its Restricted Subsidiaries) whether such
Indebtedness or guarantee now exists, or is created after the Issue Date, which default is caused
by a failure to pay principal of, or interest or premium, if any, on such Indebtedness at its
stated maturity prior to the expiration of the grace period provided in such Indebtedness on the
date of such default (a “Payment Default”) or results in the acceleration of such Indebtedness
prior to its Stated Maturity and, in each case, the principal amount of any such Indebtedness,
together with the principal amount of any other such Indebtedness under which there has been a
Payment Default or the maturity of which has been so accelerated, aggregates $25.0 million or more;
(vi) failure by the Company or any of its Restricted Subsidiaries to pay final judgments
aggregating in excess of $25.0 million, which judgments are not paid, discharged or stayed for a
period of 60 days; (vii) except as permitted by the Indenture, any Subsidiary Guarantee is held in
any judicial proceeding to be unenforceable or invalid or ceases for any reason to be in full force
and effect or any Guarantor, or any Person acting on behalf of any Guarantor, denies or disaffirms
its obligations under its Subsidiary Guarantee; or (viii) certain events of bankruptcy or
insolvency with respect to the Company or any of its Significant Subsidiaries or any group of
Restricted Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary.

     If any Event of Default occurs and is continuing, the Trustee or the Holders of at least 25%
in principal amount of the then outstanding Notes may declare all outstanding Notes to be due and
payable immediately. Notwithstanding the foregoing, in the case of an Event of Default arising from
certain events of bankruptcy or insolvency, with respect to the Company or any Significant
Subsidiary or any group of Restricted Subsidiaries that, taken as a whole, would constitute a
Significant Subsidiary, all outstanding Notes will become due and payable without further action or
notice. Holders of the Notes may not enforce the Indenture or the Notes except as provided in the
Indenture. Subject to certain limitations, Holders of a majority in principal amount of the then
outstanding Notes may direct the Trustee in its exercise of any trust or power. The Trustee may
withhold from Holders of the Notes notice of any continuing Default or Event
of Default (except a Default or Event of Default relating to the payment of principal or
interest) if it determines that withholding notice is in their interest, except with respect to a
Default or Event of Default relating to the payment of principal of, or interest or premium of
Additional Interest, if any, on, the Notes.

     In the event of any Event of Default specified in clause (v) of the first paragraph of this
Section 12, such Event of Default and all consequences thereof (excluding, however, any resulting
payment default) will be annulled, waived and rescinded, automatically and without any action by
the Trustee or the holders of the Notes, if within 20 days after such Event of Default arose the
Company delivers an Officers’ Certificate to the Trustee stating that (x) the Indebtedness or
guarantee that is the basis for such Event of Default has been discharged or (y) 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 (z) the default that is the basis for the Event of Default has
been cured.

B-6

 

     The Holders of a majority in aggregate principal amount of the Notes then outstanding by
notice to the Trustee may, on behalf of the Holders of all of the Notes, waive any existing Default
or Event of Default and its consequences under the Indenture, except a continuing Default or Event
of Default in the payment of principal of, or interest or premium or Additional Interest, if any,
on, the Notes; provided, however, that the Holders of a majority in aggregate principal amount of
the then outstanding Notes may rescind an acceleration and its consequences, if the rescission
would not conflict with any judgment or decree or if all existing Events of Default have been cured
or waived.

     13. Subordination.  Payment of the principal of, premium and Additional Interest, if
any, or interest on the Notes is subordinated to the prior payment of Senior Debt on the terms
provided in the Indenture.

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

     15. No Recourse Against Others. A director, officer, employee, incorporator
or stockholder, of the Company or any Guarantor, as such, will not have any liability for any
obligations of the Company or any Guarantor under the Notes, the Indenture or the Subsidiary
Guarantees or for any claim based on, in respect of, or by reason of, such obligations or their
creation. Each Holder by accepting a Note waives and releases all such liability. The waiver and
release are part of the consideration for the issuance of the Notes.

     16. Authentication.  This Note will not be valid until authenticated by the manual signature of the
Trustee or an authenticating agent.

     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).

     18. Additional Rights Of Holders Of Restricted Notes. In addition to the
rights provided to Holders of Notes under the Indenture, Holders of Restricted Notes will have all
the rights set forth in the Registration Rights Agreement dated as of August 20, 2004, between the
Company and the parties named on the signature pages thereof, or, with respect to any Additional
Notes, Holders of Restricted Notes will have all the rights set forth in one or more registration
rights agreements between the Company and the other parties thereto, relating to rights given by
the Company to the purchasers of Additional Notes (collectively, the “Registration Rights
Agreement”).

     19. CUSIP Numbers.  Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be
printed on the Notes and the Trustee may use CUSIP numbers in notices of redemption as a
convenience to Holders. No representation is made as to the accuracy of such numbers either as

B-7

 

printed on the Notes or as contained in any notice of redemption and reliance may be placed only on
the other identification numbers placed thereon.

     20. Governing Law. This Note will be governed by, and construed in
accordance with, the laws of the State of New York.

     The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture and/or the Registration Rights Agreement. Requests may be made to:

Standard Aero Holdings, Inc.

500-1780 Wellington Avenue

Winnipeg, Manitoba, Canada

Attention: Bradley Bertouille

(Fax: 204-784-9647)

B-8

 

ASSIGNMENT FORM

To assign this Note, fill in the form below:

I or we assign and transfer this Note to:

(Print or type assignee’s name, address and zip code)

(Insert assignee’s social security or tax I.D. No.)

and irrevocably appoint                      agent to transfer this Note on the books of the Company. The
agent may substitute another to act for him.

	 	 	 	 	 	 	 
	Date:

	 	 	 	Your Signature	 	 
	

	 	 
	 	 	 	 

	 	 	 
	Signature Guarantee:
	 	 
	

	 	 
	(Signature must be guaranteed)

Sign exactly as your name appears on the other side of this Security.

The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to S.E.C. Rule 17Ad-15.

B-9

 

[TO BE ATTACHED TO GLOBAL NOTES]

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE

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

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Principal Amount of this Global	 	Signature of authorized
	Date of	 	Amount of decrease in Principal	 	Amount of increase in Principal	 	Note following such decrease or	 	signatory of Trustee or
	Exchange	 	Amount of this Global Note	 	Amount of this Global Note	 	increase	 	Securities Custodian
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 

B-10

 

OPTION OF HOLDER TO ELECT PURCHASE

               If you elect to have this Note purchased by the Company pursuant to Section 4.10 or 4.15 of
the Indenture, check either box:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 ̈
	 	 ̈
	 	 
	 	 
	 	 
	
	 	 	 	 	 	4.10
	 	4.15	 	 	 	 	 	 

               If you want to elect to have only part of this Note purchased by the Company pursuant to
Section 4.10 or Section 4.15 of the Indenture, state the amount in principal amount (must be
integral multiple of $1,000): $                                                             and specify the
denomination or denominations (which shall not be less than the minimum authorized denomination) of
the Notes to be issued to the Holder for the portion of the within Note not being repurchased (in
the absence of any such specification, one such Note will be issued for the portion not being
repurchased):                                         .

	 	 	 	 	 	 	 
	Date:

	 	 	 	Your Signature:	 	 
	

	 	 
	 	 	 	 
	

	 	 	 	 	 	(Sign exactly as your name appears on the other side of the Security)
	 
	 	 	 	 	 	 
	Signature Guarantee:	 	 	 	 
	 	 	 	 	 
	(Signature must be guaranteed)

The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to S.E.C. Rule 17Ad-15.

B-11

 

EXHIBIT C

FORM OF NOTATION ON SENIOR SUBORDINATED NOTE RELATING TO SUBSIDIARY GUARANTEE

          Pursuant to the Indenture (the “Indenture”) dated as of August 20, 2004 among Standard Aero
Holdings, Inc., the Guarantors party thereto (each a “Guarantor” and collectively the “Guarantors”)
and Wells Fargo Bank, National Association, as trustee (the “Trustee”), each Guarantor (i) has
jointly and severally unconditionally guaranteed (a) the due and punctual payment of the principal
of, and premium, interest and Additional Interest on the Notes, whether at maturity or on an
interest payment date, by acceleration, call for redemption or otherwise, (b) the due and punctual
payment of interest on the overdue principal and premium of and interest and Additional Interest on
the Notes and (c) in case of any extension of time of payment or renewal of any Notes or any of
such other Obligations, the same will be promptly paid in full when due in accordance with the
terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise and
(ii) has agreed to pay any and all costs and expenses (including reasonable attorneys’ fees)
incurred by the Trustee or any Holder in enforcing any rights under the Subsidiary Guarantee (as
defined in the Supplemental Indenture).

          Notwithstanding the foregoing, in the event that the Subsidiary Guarantee of any Guarantor
would constitute or result in a violation of any applicable fraudulent conveyance or similar law of
any relevant jurisdiction, the liability of such Guarantor under its Subsidiary Guarantee will be
reduced to the maximum amount permissible under such fraudulent conveyance or similar law.

          The Subsidiary Guarantee will be binding upon each Guarantor and its successors and assigns
and will inure to the benefit of the successors and assigns of the Trustee and the Holders and, in
the event of any transfer or assignment of rights by any Holder or the Trustee, the rights and
privileges herein conferred upon that party will automatically extend to and be vested in such
transferee or assignee, all subject to the terms and conditions hereof.

          The Subsidiary Guarantee will not be valid or obligatory for any purpose until the certificate
of authentication on the Note upon which the Subsidiary Guarantee is noted has been executed by the
Trustee under the Indenture by the manual signature of one of its authorized officers. Capitalized
terms used herein have the meaning assigned to them in the Indenture.

C-1

 

EXHIBIT D

FORM OF SUPPLEMENTAL INDENTURE TO BE DELIVERED

BY GUARANTOR

          SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of                     , among
                     (the “Guarantors”), each a direct or indirect subsidiary of Standard Aero
Holdings, Inc. (or its permitted successor), a Delaware corporation (the “Company”), the Company
and Wells Fargo Bank, National Association, as trustee under the indenture referred to below (the
“Trustee”).

W I T N E S S E T H

          WHEREAS, the Company and certain of its Subsidiaries have heretofore executed and delivered to
the Trustee an indenture (the “Indenture”), dated as of August 20, 2004 providing for the issuance
of an unlimited amount of 81/4% Senior Subordinated Notes due 2014 (the “Notes”);

          WHEREAS, the Indenture provides that under certain circumstances the Guarantors will execute
and deliver to the Trustee a supplemental indenture pursuant to which the Guarantors will
unconditionally guarantee all of the Company’s Obligations (as defined in the Indenture) under the
Notes and the Indenture on the terms and conditions set forth herein (the “Subsidiary Guarantee”);
and

          WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and
deliver this Supplemental Indenture.

          NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guarantors and the Trustee mutually
covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows:

     1. Capitalized Terms. Capitalized terms used herein without definition will have the
meanings assigned to them in the Indenture.

     2. Agreement To Guarantee. Each Guarantor hereby agrees as follows:

	 	(a)  	Such Guarantor, jointly and severally with all other current
and future guarantors of the Notes (collectively, the “Guarantors” and each, a
“Guarantor”), unconditionally guarantees to each Holder of a Note authenticated
and delivered by the Trustee and to the Trustee and its successors and assigns,
regardless of the validity and enforceability of the Indenture, the Notes or
the Obligations of the Company under the Indenture or the Notes, that:

	 	(i)  	the principal of, premium, interest and
Additional Interest, if any, on the Notes will be promptly paid in full
when due, whether at maturity, by acceleration, redemption or
otherwise, and interest on

D-1

 

	 	   	the overdue principal of, premium, interest and Additional Interest,
if any, on the Notes, to the extent lawful, and all other Obligations
of the Company to the Holders or the Trustee thereunder or under the
Indenture will be promptly paid in full, all in accordance with the
terms thereof, including but not limited to Section 11 thereof; and
	 
	 	(ii)  	in case of any extension of time for payment or
renewal of any Notes or any of such other Obligations, that the same
will be promptly paid in full when due in accordance with the terms of
the extension or renewal, whether at stated maturity, by acceleration
or otherwise.

	 	(b)  	Notwithstanding the foregoing, in the event that this
Subsidiary Guarantee would constitute or result in a violation of any
applicable fraudulent conveyance or similar law of any relevant jurisdiction,
the liability of such Guarantor under this Supplemental Indenture and its
Subsidiary Guarantee shall be reduced to the maximum amount permissible under
such fraudulent conveyance or similar law.
	 
	 	(c)  	Failing payment when due of any amount so guaranteed or any
performance so guaranteed for whatever reason, the Guarantors will be jointly
and severally obligated to pay the same immediately. Each Guarantor agrees
that this is a guarantee of payment and not a guarantee of collection.

     3. Execution And Delivery Of Subsidiary Guarantees.

	 	(a)  	To evidence its Subsidiary Guarantee set forth in this
Supplemental Indenture, such Guarantor hereby agrees that a notation of such
Subsidiary Guarantee substantially in the form of Exhibit C to the
Indenture will be endorsed by an officer of such Guarantor on each Note
authenticated and delivered by the Trustee after the date hereof.
	 
	 	(b)  	Notwithstanding the foregoing, such Guarantor hereby agrees
that its Subsidiary Guarantee set forth herein will remain in full force and
effect notwithstanding any failure to endorse on each Note a notation of such
Subsidiary Guarantee.
	 
	 	(c)  	If an Officer whose signature is on this Supplemental Indenture
or on the Subsidiary Guarantee no longer holds that office at the time the
Trustee authenticates the Note on which a Subsidiary Guarantee is endorsed, the
Subsidiary Guarantee will be valid nevertheless.

D-2

 

	 	(d)  	The delivery of any Note by the Trustee, after the
authentication thereof under the Indenture, will constitute due delivery of the
Subsidiary Guarantee set forth in this Supplemental Indenture on behalf of each
Guarantor.
	 
	 	(e)  	Each Guarantor hereby agrees that its Obligations hereunder
will be unconditional, regardless of the validity, regularity or enforceability
of the Notes or the Indenture, the absence of any action to enforce the same,
any waiver or consent by any Holder of the Notes with respect to any provisions
hereof or thereof, the recovery of any judgment against the Company, any action
to enforce the same or any other circumstance which might otherwise constitute
a legal or equitable discharge or defense of a guarantor.
	 
	 	(f)  	Each Guarantor hereby waives diligence, presentment, demand of
payment, filing of claims with a court in the event of insolvency or bankruptcy
of the Company, any right to require a proceeding first against the Company,
protest, notice and all demands whatsoever and covenants that its Subsidiary
Guarantee made pursuant to this Supplemental Indenture will not be discharged
except by complete performance of the Obligations contained in the Notes and
the Indenture.
	 
	 	(g)  	If any Holder or the Trustee is required by any court or
otherwise to return to the Company or any Guarantor, or any custodian, Trustee,
liquidator or other similar official acting in relation to either the Company
or such Guarantor, any amount paid by either to the Trustee or such Holder, the
Subsidiary Guarantee made pursuant to this Supplemental Indenture, to the
extent theretofore discharged, will be reinstated in full force and effect.
	 
	 	(h)  	Each Guarantor agrees that it shall not be entitled to any
right of subrogation in relation to the Holders in respect of any Obligations
guaranteed hereby until payment in full of all Obligations guaranteed hereby.
Each Guarantor further agrees that, as between such Guarantor, on the one hand,
and the Holders and the Trustee, on the other hand:

	 	(i)  	the maturity of the Obligations guaranteed
hereby may be accelerated as provided in Article 6 of the Indenture for
the purposes of the Subsidiary Guarantee made pursuant to this
Supplemental Indenture, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the Obligations
guaranteed hereby; and
	 
	 	(ii)  	in the event of any declaration of acceleration
of such Obligations as provided in Article 6 of the Indenture, such
Obligations (whether or not due and payable) will forthwith become due
and

D-3

 

	 	   	payable by such Guarantor for the purpose of the Subsidiary Guarantee
made pursuant to this Supplemental Indenture.

	 	(i)  	Each Guarantor will have the right to seek contribution from
any other non-paying Guarantor so long as the exercise of such right does not
impair the rights of the Holders or the Trustee under the Subsidiary Guarantee
made pursuant to this Supplemental Indenture.

     4. Guarantor May Consolidate, etc. on Certain Terms.

	 	(a)  	Except as set forth in Articles 4 and 5 of the Indenture,
nothing contained in the Indenture, this Supplemental Indenture or in the Notes
will prevent any consolidation or merger of any Guarantor with or into the
Company or any other Guarantor or will prevent any transfer, sale or conveyance
of the property of any Guarantor as an entirety or substantially as an entirety
to the Company or any other Guarantor.
	 
	 	(b)  	Except as set forth in Section 10.04 of the Indenture, no
Guarantor may sell or otherwise dispose of all or substantially all of its
assets to, or consolidate with or merge with or into (whether or not such
Guarantor is the surviving Person), another Person, other than the Company or
another Guarantor, unless: (i) immediately after giving effect to such
transaction, no Default or Event of Default exists and (ii) either (A) subject
to Section 10.04 of the Indenture, the Person acquiring the property in any
such sale or disposition or the Person formed by or surviving any such
consolidation or merger unconditionally assumes all the obligations of that
Guarantor, pursuant to a supplemental indenture in form and substance
reasonably satisfactory to the Trustee, under the Indenture and the Subsidiary
Guarantee on the terms set forth in the Indenture or such Subsidiary Guarantee,
as the case may be, or (B) the Net Proceeds of such sale or other disposition
are applied in accordance with the applicable provisions of the Indenture,
including without limitation, Section 4.10 thereof.
	 
	 	(c)  	In case of any such consolidation, merger, sale or conveyance
and upon the assumption by the successor Person, by supplemental indenture,
executed and delivered to the Trustee and satisfactory in form to the Trustee,
of the Subsidiary Guarantee made pursuant to this Supplemental Indenture and
the due and punctual performance of all of the covenants and conditions of the
Indenture and this Supplemental Indenture to be performed by such Guarantor,
such successor Person will succeed to and be substituted for such Guarantor
with the same effect as if it had been named herein as the Guarantor. Such
successor Person thereupon may cause to be signed any or all of the Subsidiary
Guarantees to be endorsed upon the Notes issuable under the Indenture which
theretofore have not been signed by the Company and delivered to the Trustee.
All the

D-4

 

	 	   	Subsidiary Guarantees so issued will in all respects have the same legal
rank and benefit under the Indenture and this Supplemental Indenture as the
Subsidiary Guarantees theretofore and thereafter issued in accordance with
the terms of the Indenture and this Supplemental Indenture as though all of
such Subsidiary Guarantees had been issued at the date of the execution
hereof.

     5. Releases.

	 	(a)  	In the event of any sale or other disposition of all or
substantially all of the assets of any Guarantor, by way of merger,
consolidation or otherwise, or a sale or other disposition of all of the
Capital Stock of any Guarantor, in each case to a Person that is not (either
before or after giving effect to such transactions) a Subsidiary of the
Company, then such Guarantor (in the event of a sale or other disposition, by
way of merger, consolidation or otherwise, of all of the Capital Stock of such
Guarantor) or the Person acquiring the property (in the event of a sale or
other disposition of all or substantially all of the assets of such Guarantor)
will be released and relieved of any obligations under its Subsidiary
Guarantee; provided that the Net Proceeds of such sale or other disposition are
applied in accordance with the applicable provisions of the Indenture,
including without limitation Section 4.10 thereof. Upon delivery by the
Company to the Trustee of an Officer’s Certificate and an Opinion of Counsel to
the effect that such sale or other disposition was made by the Company in
accordance with the provisions of the Indenture, including without limitation
Section 4.10 thereof, the Trustee will execute any documents reasonably
required in order to evidence the release of any Guarantor from its obligations
under its Subsidiary Guarantee. Any Guarantor not released from its
obligations under its Subsidiary Guarantee will remain liable for the full
amount of principal of and interest on the Notes and for the other obligations
of any Guarantor under the Indenture as provided in Article 10 thereof.
	 
	 	(b)  	Upon the designation of a Guarantor as an Unrestricted
Subsidiary in accordance with the terms of the Indenture, such Guarantor will
be released and relieved of its Obligations under its Subsidiary Guarantee and
this Supplemental Indenture. Upon delivery by the Company to the Trustee of an
Officer’s Certificate and an Opinion of Counsel to the effect that such
designation of such Guarantor as an Unrestricted Subsidiary was made by the
Company in accordance with the provisions of the Indenture, including without
limitation Section 4.07 of the Indenture, the Trustee will execute any
documents reasonably required in order to evidence the release of such
Guarantor from its Obligations under its Subsidiary Guarantee. Any Guarantor
not released from its Obligations under its Subsidiary Guarantee will remain
liable for the full amount of principal of

D-5

 

	 	   	and interest on the Notes and for the other Obligations of any Guarantor
under the Indenture as provided in Article 10 thereof.
	 
	 	(c)  	Each Guarantor will be released and relieved of its obligations
under this Supplemental Indenture in accordance with, and subject to, Article 8
of the Indenture.

     6. No Recourse Against Others. No past, present or future director, officer,
employee, incorporator, stockholder or agent of any Guarantor, as such, will have any liability for
any Obligations of the Company or any Guarantor under the Notes, any Subsidiary Guarantees, the
Indenture or this Supplemental Indenture or for any claim based on, in respect of, or by reason of,
such Obligations or their creation. Each Holder of the Notes by accepting a Note waives and
releases all such liability. The waiver and release are part of the consideration for issuance of
the Notes. Such waiver may not be effective to waive liabilities under the federal securities laws
and it is the view of the SEC that such a waiver is against public policy.

     7. NEW YORK LAW TO GOVERN. THIS SUPPLEMENTAL INDENTURE WILL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

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

     9. Effect Of Headings. The Section headings herein are for convenience only and will
not affect the construction hereof.

     10. The Trustee. The Trustee will not be responsible in any manner whatsoever for or
in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of
the recitals contained herein, all of which recitals are made solely by the Guarantors and the
Company.

D-6

 

          IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed and attested, all as of the date first above written.

Dated:                     ,      

	 	 	 	 	 
	 	STANDARD AERO HOLDINGS, INC.

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Guarantors:

[EXISTING GUARANTORS]

[ADDITIONAL GUARANTORS]

Dated:                     ,      

	 	 	 	 	 
	WELLS FARGO BANK,	 	 
	

	 	NATIONAL ASSOCIATION, as Trustee	 	 
	 
	 	 	 	 
	By:

	 	 
	 	 
	

	 	 	 	 
	

	 	Name:	 	 
	

	 	Title:	 	 

D-7

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