Document:

Exhibit 10.2

 

INVESTOR RIGHTS AGREEMENT

 

This INVESTOR RIGHTS
AGREEMENT, dated as of March 16, 2010 (this “Agreement”), is
entered into by and among Southwest Water Company, a Delaware corporation (the “Company”),
and SW Merger Acquisition Corp. (the “Stockholder”).

 

RECITALS

 

WHEREAS, pursuant to the
Securities Purchase Agreement, dated as of March 16, 2010 (the “Purchase
Agreement”), by and between the Company and the Stockholder, the Company
issued 2,700,000 (two million, seven hundred thousand) shares of its common
stock, par value $0.01 per share (the “Company Common Stock”) (the
number of such shares of Company Common Stock, the “Shares”), to the
Stockholder, and the Stockholder owns the Shares;

 

WHEREAS, in connection
with the consummation of the transactions contemplated by the Purchase
Agreement, each of the Company and the Stockholder desires to enter into this
Agreement to set forth certain rights and obligations of the Company and the
Stockholder with respect to the ownership by the Stockholder of the Shares and
certain other matters, all in accordance with the terms and conditions set
forth herein; and

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth herein, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

Section 1.1.      Definitions. In addition to the
terms defined elsewhere in this Agreement: (a) capitalized terms that are
not otherwise defined herein have the meanings given to such terms in the
Merger Agreement, and (b) the following terms have the meanings set forth
in this Section 1.1:

 

“Affiliate”, with
respect to any Person, shall have the meaning set forth in Rule 12b-2 of
the Exchange Act as in effect on the date hereof.

 

“Agreement” has
the meaning specified in the Introduction.

 

“Blackout Notice”
has the meaning specified in Section 2(c) of Exhibit A.

 

“Blackout Period”
has the meaning specified in Section 2(c) of Exhibit A.

 

“Company” has the
meaning specified in the Introduction.

 

“Company Common Stock”
has the meaning specified in the Recitals.

 

“Company Subsidiary”
means a Subsidiary of the Company.

 

 

“Demand Notice”
has the meaning specified in Section 2(b) of Exhibit A.

 

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

 

“Holder” has the
meaning specified in Section 10 of Exhibit A.

 

“Losses” has the
meaning specified in Section 7(a) of Exhibit A.

 

“Merger Agreement”
means the Agreement and Plan of Merger, dated as of March 2, 2010, by and
among Stockholder, SW Merger Sub Corp. and the Company.

 

“Person” means any
natural person, corporation, general or limited partnership, limited liability
company, joint venture, trust, association or entity of any kind.

 

“Registrable Shares”
means the Shares that are not Transferable Shares, and any Company Common Stock
or other securities of the Company or any successor entity which may be issued
or distributed in respect of the Registrable Shares by way of stock dividend or
stock split or other distribution, recapitalization, merger, conversion or
reclassification.

 

“Registration Rights”
has the meaning specified in Section 2.1.

 

“SEC” means the
Securities and Exchange Commission.

 

“Securities Act”
means the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.

 

“Selling Stockholders”
has the meaning specified in Section 3 of Exhibit A.

 

“Shares” has the
meaning specified in the Recitals.

 

“Shelf Registration
Statement” has the meaning specified in Section 2(a) of Exhibit A.

 

“Standstill Period”
means the period commencing on the date hereof and ending on the date of the
termination of the Merger Agreement.

 

“Stockholder” has
the meaning specified in the Introduction.

 

“Subsidiary” of a
Person means any other Person of which at least a majority of the voting power
represented by the outstanding capital stock or other voting securities or
interests having voting power under ordinary circumstances to elect directors
or similar members of the governing body of such corporation or entity or fifty
percent (50%) or more of the equity interests in such corporation or entity
shall at the time be owned or controlled, directly or indirectly, by such Person
and/or by one or more of its Subsidiaries.

 

“Transfer” has the
meaning specified in Section 3.1.

 

2

 

“Transferable Shares”
means all or a portion of the Shares that are eligible for resale in compliance
with Rule 144 of the Securities Act (including the requirement that the
Shares meet the one-year holding period specified in Rule 144(d)).

 

ARTICLE II

 

REGISTRATION RIGHTS

 

Section 2.1.      Registration
Rights. The Stockholder shall have
the rights to registration under the Securities Act of the Registrable Shares,
on the terms and subject to the conditions set forth in Exhibit A (the “Registration
Rights”); provided, however, that such Registration Rights
shall not become effective until the date of termination of the Merger
Agreement.

 

ARTICLE III

 

TRANSFER RESTRICTIONS

 

Section 3.1.      Lock-up Period. Except as permitted
by Section 3.2, the Stockholder shall not (i) sell, contract to sell,
sell any option or contract to purchase, purchase any option or contract to
sell, grant any option, right or warrant to purchase, lend, or otherwise
transfer or dispose of, directly or indirectly, any Shares (each, a “Transfer”)
or (ii) enter into any swap or other arrangement that transfers to another
the economic consequences of ownership of the Shares prior to the earlier of (A) the
Effective Time of the Merger, (B) the termination of the Merger Agreement
upon the mutual written consent of the Company and Parent or (C) the
termination of the Merger Agreement in accordance with its terms under any
other circumstances, provided that if in connection with a termination of the
Merger Agreement under this subclause (C) a Reverse Termination Fee
or expenses are payable to the Company, then such Reverse Termination Fee or
expenses shall have been paid to the Company (the date of the occurrence of an
event in subclause (A), (B) or (C), the “Expiration Date”).

 

Section 3.2.      Permitted Transfers. Provided that
at all times prior to the Expiration Date the Stockholder maintains net working
capital necessary to timely address any claim by the Company for the payment of
a Reverse Termination Fee or expenses under the terms of the Merger Agreement
(and subject to the Stockholder’s continuing compliance prior to the
termination of the Merger Agreement with the terms of the Merger Agreement,
including Section 5.4(d) thereof), the restrictions on transfer in Section 3.1
shall not apply to the following Transfers of Shares (each of which exceptions
shall be separate and not reduce the scope or availability of any other
exception):

 

(a)        (i) to the Company, (ii) to any Affiliate of the
Stockholder, (iii) to any party to the Merger Agreement or (iv) to
any equity holder or investor in the Stockholder or its Affiliates, including
any new equity holder or investor in the Stockholder or its Affiliates after
the date hereof; provided, in each case (other than a transfer to the
Company), that the transferee agrees in writing to the restrictions on further
transfers of such securities to the extent provided in this Article III
and the covenants applicable to Stockholder in Article IV; or

 

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(b)        in sales pursuant to Rule 144 under the Securities Act.

 

Any transfer made
pursuant to this Section 3.2 shall comply with all applicable federal and
state securities laws and regulations.

 

ARTICLE IV

 

COVENANTS

 

Section 4.1.      Registration
Rights. The Company and the Stockholder shall comply with the provisions
contained in Exhibit A regarding the Registration Rights.

 

Section 4.2.      Form S-3
Eligibility. Until such time as all of the Shares are Transferable Shares,
the Company shall use its commercially reasonable best efforts to regain its
eligibility to use Form S-3 under the criteria set forth in Instruction
I.A. thereto, and if it regains such eligibility, to continue to use
commercially reasonable best efforts to remain so eligible to use Form S-3.

 

Section 4.3.      Expenses.
The Company and the Stockholder shall each bear its own expenses and legal fees
with respect to this Agreement and the transactions contemplated hereby.

 

Section 4.4.      Board Seat.
The Stockholder shall be permitted to appoint one member of the board of
directors of the Company (the “Board”) who satisfies the Company’s Board
membership criteria set forth in its Corporate Governance Guidelines.  Once appointed by the Stockholder and seated
on the Board, its designated member of the Board will be subject to the same
election requirements to which all other members of the Board are subject.

 

Section 4.5.      Standstill. During the Standstill Period, except
in respect of the transactions contemplated by this Agreement and by the Merger
Agreement, the Stockholder agrees that it will not nor will it cause any of its
Subsidiaries to acquire beneficial ownership of any additional shares of
Company Common Stock, unless specifically consented to by the Board of
Directors of the Company.

 

ARTICLE V

 

TERMINATION

 

This Agreement shall
terminate (A) upon the Effective 
Time of the Merger, (B) by mutual agreement of the Company and the
Stockholder, or (C) upon the later of (i) the Expiration Date and (ii) such
time as the Holders no longer own any Shares.

 

ARTICLE VI

 

GENERAL PROVISIONS

 

Section 6.1.      Notices.  All notices and other communications required
or permitted by this Agreement shall be in writing and shall be effective, and
any applicable time period shall 

 

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commence, when (a) delivered to the following addresses
by hand or by a nationally recognized overnight courier service (costs prepaid
and with proof of delivery) addressed to the following addresses or (b) transmitted
electronically to the following facsimile numbers or e-mail addresses (receipt
of which is confirmed) in each case marked to the attention of the persons (by
name or title) designated below (or to such other address, facsimile number,
e-mail address, or person as a party may designate by notice given in
accordance with this Section 6.1 to the other parties):

 

if to Stockholder: 

c/o IIF Subway Investment LP

245 Park Avenue, 2nd Floor

New York, NY 10167

Facsimile No.: (212) 648-2033

E-mail: andrew.f.walters@jpmorgan.com
             
christian.p.porwoll@jpmorgan.com

Attention: Andrew F. Walters
                  Christian P. Porwoll

 

and

 

Water Asset Management, LLC

509 Madison Avenue, Suite 804

New York, NY 10022

Facsimile No.: (212) 754-5101

E-mail: m.robert@waterinv.com

Attention: Marc Robert

 

with a copy to:

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York 10017

Facsimile No.: (212) 455-2502

E-mail: aklein@stblaw.com

Attention: Alan Klein

 

if to the Company:

Southwest Water Company

One Wilshire Building

624 South Grand Avenue, Suite 2900

Los Angeles, California 90017-3782

Facsimile No.: (213) 929-1888

E-mail: mswatek@swwc.com

Attention: Mark A. Swatek

 

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with a copy to:

Locke Lord Bissell & Liddell LLP

300 S. Grand Avenue, Suite 2600

Los Angeles, California 90071

Facsimile No.: (213) 341-6774

E-mail: nbrockmeyer@lockelord.com

Attention: Neal H. Brockmeyer

 

Section 6.2.      Entire Agreement. This Agreement
and the Purchase Agreement set forth the entire agreement of the parties with
respect to the subject matter hereof. 
Notwithstanding anything contained herein, this Agreement is not intended
to, and shall in no way, modify or supplement the terms of the Merger
Agreement.  This Agreement supersedes the
terms of that certain binding letter of intent dated March 2, 2010 by and
among the Company, the Stockholder and certain Affiliates of the Stockholder,
and all other prior agreements and understandings, both written and oral,
between the parties with respect to the subject matter hereof (other than the
Merger Agreement).

 

Section 6.3.      Severability. If any provision or
provisions of this Agreement shall be held to be invalid, illegal or
unenforceable for any reason (a) such provision or provisions shall be
deemed reformed to the extent necessary to conform to applicable Law and to
give the maximum effect to the intent of the parties; (b) the validity,
legality and enforceability of the remaining provisions of this Agreement shall
not be affected or impaired thereby; and (c) to the fullest extent
possible, the provisions of this Agreement shall be construed to give the
maximum effect to the intent of the parties.

 

Section 6.4.      Interpretation. Whenever the words “include,”
“includes” or “including” are used in this Agreement, they shall be deemed to
be followed by the words “without limitation.” The words “hereto,” “hereof,” “herein”
and “hereunder” and words of similar import when used in this Agreement shall
refer to this Agreement as a whole and not to any particular provision of this
Agreement. The term “or” is not exclusive. The definitions contained in this
Agreement are applicable to the singular as well as the plural forms of such
terms and to the masculine as well as to the feminine and neuter genders of
such terms.  Any agreement or instrument
defined or referred to herein or in any agreement or instrument that is
referred to herein means such agreement or instrument as from time to time
amended, modified or supplemented. 
References to a person are also to its permitted successors and
assigns.  Whenever a reference is made in
this Agreement to an Article or Section, such reference shall be to an Article or
Section of this Agreement unless otherwise indicated.  Whenever a reference is made in this
Agreement to parties, such reference shall be to the parties to this Agreement
unless otherwise indicated.  The
descriptive headings contained in this Agreement are included for convenience
of reference only and shall not affect in any way the meaning or interpretation
of this Agreement.  Each of the parties
has participated in the drafting and negotiation of this Agreement.  If an ambiguity or question of intent or
interpretation arises, this Agreement must be construed as if it is drafted by
all the parties, and no presumption or burden of proof shall arise favoring or
disfavoring any party by virtue of authorship of any of the provisions of this
Agreement.

 

Section 6.5.      Counterparts; Effect. This
Agreement may be executed in two or more counterparts, and by the different
parties in separate counterparts, all of which taken together 

 

6

 

shall constitute one and the same agreement and shall become
effective when one or more counterparts have been executed by each of the
parties and delivered to the other parties. 
Copies of executed counterparts transmitted by telecopy or electronic
transmission shall be considered original executed counterparts for purposes of
this Section 6.5, provided that receipt of such counterparts is confirmed.

 

Section 6.6.      No Third-Party Beneficiaries. This
Agreement shall be binding upon and inure solely to the benefit of each party
hereto and each permitted assignee hereof, and nothing in this Agreement,
express or implied, is intended to or shall confer upon any other person any
right, benefit or remedy of any nature whatsoever under or by reason of this
Agreement.

 

Section 6.7.      Governing Law; Wavier of Jury Trial.
This Agreement, and all claims or causes of action (whether in contract or
tort) that may be based upon, arise out of or relate to this Agreement, or the
negotiation, execution or performance of this Agreement, shall be governed by,
and construed and enforced in accordance with, the laws of the State of
Delaware applicable to contracts executed in and to be performed in that State,
without giving effect to principles of conflicts of law.  All actions and proceedings arising out of or
relating to this Agreement shall be heard and determined exclusively in the
Court of Chancery of the State of Delaware. 
The parties hereby (a) submit to the exclusive jurisdiction of such
court for the purpose of any Action arising out of or relating to this
Agreement brought by any party hereto, (b) agree that all claims in
respect of such action or proceeding may be heard and determined only in such
court, (c) agree not to bring any action or proceeding arising out of or
relating to this Agreement or any of the transactions contemplated by this
Agreement in any other court and (d) irrevocably waive, and agree not to
assert by way of motion, defense, or otherwise, in any such Action, any claim
that it is not subject personally to the jurisdiction of such court, that its
property is exempt or immune from attachment or execution, that the Action is
brought in an inconvenient forum, that the venue of the Action is improper, or
that this Agreement or the transactions contemplated hereby may not be enforced
in or by such court.  Each party hereto
irrevocably waives any and all right to trial by jury in any legal proceeding
arising out of or relating to this Agreement or the transactions contemplated
hereby.

 

Section 6.8.      Assignment. Neither this Agreement
nor any of the rights, interests or obligations hereunder shall be assigned by
any party hereto (whether by operation of law or otherwise) without the prior
written consent of the other party; provided, however, that Stockholder may,
without the consent of the Company, assign its Registration Rights to any
transferee of its Shares to the extent permitted under the terms of Section 3.2
hereof.

 

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IN WITNESS WHEREOF, this
Agreement has been duly executed and delivered by the duly authorized officers
of the parties hereto as of the date first written above.

 

	
   

  	
  SOUTHWEST
  WATER COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/
  Mark Swatek

  	
   

  
	
   

  	
   

  	
  Name: Mark
  Swatek

  
	
   

  	
   

  	
  Title: Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SW
  ACQUISITION MERGER CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew F.
  Walters

  	
   

  
	
   

  	
   

  	
  Name: Andrew F.
  Walters

  
	
   

  	
   

  	
  Title: Authorized Signatory

  
					

 

 

Signature
Page to Investor Rights Agreement

 

 

EXHIBIT A

 

REGISTRATION RIGHTS

 

Section 1.         Effectiveness of Registration Rights.
The registration rights pursuant to Sections 2 and 3 hereof shall become
effective on the date of termination of the Merger Agreement.

 

Section 2.         Registration Rights Generally.

 

(a)        Shelf Registration. Unless all of
the Shares are Transferable Shares, the Company shall cause to be filed no
later than twenty (20) business days after the termination of the Merger
Agreement, a registration statement (the “Shelf Registration Statement”)
on Form S-1 (or any successor form), unless at such time the Company
qualifies to use Form S-3 (or any successor form), in which case it shall
use Form S-3, and such other documents as may be necessary to permit
offerings and sales of Registrable Shares by Holders pursuant to Rule 415
under the Securities Act. Subject to the terms hereof, the Company shall
exercise its best efforts to cause the Shelf Registration Statement to be
declared effective as promptly as possible after the filing thereof.  Subject to Section 2(c), the Company
shall maintain such Shelf Registration Statement effective and current until
the earlier of (i) the time all Registrable Shares are sold pursuant to
such registration statement and (ii) the time when all Shares are Transferable
Shares. The Company shall supplement and amend the Shelf Registration Statement
if required by the rules, regulations or instructions applicable to the
registration form used for such Shelf Registration Statement or if required by
the Securities Act.

 

(b)        Contingent Demand Registration.
In the event that the Company has failed to or is unable to file and maintain a
Shelf Registration Statement as contemplated by Section 2(a) and
until such failure or inability is remedied, one or more Holders holding
individually or in the aggregate at least 10% of the Registrable Shares
outstanding as of the Closing Date shall have the right to make a written
demand upon the Company (a “Demand Notice”) to have the Company as
promptly as practical register under the Securities Act for offer and sale all
Registrable Shares specified to the Company by such Holders within twenty (20)
business days of the date of the Demand Notice, and the Company agrees to so
register such Registrable Shares. If a Demand Notice has been made on the
Company, no subsequent Demand Notice may be made on the Company for ninety (90)
days unless the Company has failed to comply with its obligations with respect
to the Demand Notice. The Holders shall have the right to exercise registration
rights pursuant to this Section 2(b) up to three (3) times.

 

(c)        Blackout Period. Notwithstanding Section 2(a) above,
if the Company shall furnish to the Holders a certificate signed by the Chief
Executive Officer of the Company (each, a “Blackout Notice”) stating
that (i) there is a reasonable likelihood that such disclosure,
registration statement or related prospectus to be filed, amended or
supplemented, or any other action to be taken in connection with the
prospectus, would materially and adversely affect or interfere with any
financing, acquisition, merger, disposition of assets (outside the ordinary
course of business), corporate reorganization or other similar transaction
involving the Company, or (ii) the occurrence or existence of any pending
corporate development with respect to the Company that the Company reasonably
believes could render the registration statement or any related prospectus
materially misleading, the Company shall be entitled to suspend the use of the
registration statement 

 

A-1

 

and
related prospectus or delay the delivery or filing, but not the preparation, of
any amendment or supplement to the registration statement or otherwise delay
the completion of any sale of Registrable Shares pursuant to the registration
statement for a reasonable period of time, but not to exceed sixty (60) days
(the “Blackout Period”) within any 365-day period beginning on the first
day of a Blackout Period; and provided, further, that any Blackout Period shall
only be effective when and for so long as other holders, if any, of
registration rights with respect to the Company’s securities are restricted
from exercising their registration rights to the same or greater extent as the
Holders. Upon receipt of a Blackout Notice, the Holders shall not effect sales
of Registrable Shares pursuant to the registration statement. The Company shall
promptly deliver written notice to the Holders of the expiration or earlier
termination of any Blackout Period.

 

Section 3.         Incidental Registration Rights.
For a period of two (2) years following the termination of the Merger
Agreement, in the event that the Company has failed to or is unable to file and
maintain a Shelf Registration Statement as contemplated by Section 2(a) and
until such failure or inability is remedied, if the Company proposes to
register (including for this purpose a registration effected by the Company for
security holders of the Company other than any Holder) any Company Common Stock
for sale under the Securities Act or effect or participate in an offering of
Company Common Stock under the Securities Act (other than (i) pursuant to Section 2
hereof, (ii) securities to be issued pursuant to a stock option or other
employee benefit or similar plan, or (iii) securities proposed to be
issued in exchange for securities or assets of, or in connection with a merger
or consolidation with, another corporation) the Company shall, as promptly as
practicable, give written notice to the Holders of the Company’s intention to
effect such registration or effect or participate in such an offering. If,
within ten (10) days after receipt of such notice, any Holder submits a
written request to the Company specifying the amount of Registrable Shares that
it proposes to sell or otherwise dispose of in accordance with this Section 3,
the Company shall use its reasonable best efforts to include the Registrable
Shares specified in the contemplated offering. If the offering is to be made by
or through underwriters, the Company, any selling Holder and such underwriter
shall execute an underwriting agreement in customary form; provided, however,
that if the Company and any selling Holder are advised in writing in good faith
by the lead underwriter of the Company’s securities that the amount to be sold
by Persons other than the Company (collectively, “Selling Stockholders”)
is greater than the amount that can be offered without adversely affecting the
offering (taking into consideration the interests of the Company and the
Holders), the Company may reduce the amount offered for the accounts of Selling
Stockholders (including such holders of Registrable Shares) to a number
reasonably deemed satisfactory by such lead underwriter; provided that the
shares that shall be excluded shall be excluded in the following order: (i) first,
securities held by any Persons not having any contractual or incidental
registration rights in respect of the offering contemplated by this Section 3,
(ii) second, Registrable Shares held by the Holders sought to be included
in the offering pursuant to this Section 3 and Company Common Stock sought
to be included in such offering by Persons having contractual or incidental “piggy-back”
rights, (iii) third, Company Common Stock sought to be offered and sold by
other Persons having demand registration rights with respect to such an
offering and (iv) fourth, Company Common Stock sought to be sold by the
Company. Any reduction of the number of Registrable Shares indicated under (ii) shall
be made on a pro rata basis based upon the aggregate number of shares of
Company Common Stock sought to be registered pursuant to this section by the
relevant Holders and other Persons.

 

A-2

 

Section 4.         Underwriting
and Broad Distribution.

 

(a)        At the
request of any Holder, with respect to a sale of Registrable Shares by such
Holder, the Company shall enter into an underwriting, agency, placement,
subscription or other agreement, in usual and customary form and substance
(including but not limited to usual and customary indemnities, the provision by
independent counsel to the Company of customary opinions and the provision of
customary certificates by officers of the Company and the provision by the
Company’s independent accountants of customary comfort letters as reasonably
requested by such Holder and the lead underwriters of such offering) with
managing underwriters to be selected by such Holder and not disapproved by the
Company acting reasonably, and the Company shall perform its obligations in
connection therewith.

 

(b)        The Company shall be required to enter
into an underwriting, agency, placement, subscription or other agreement
pursuant to Section 4(a) only if such Registrable Shares are to be
offered and sold in a manner intended to result in a broad distribution within
or outside the United States (simultaneously or both), such that no single
purchaser of the Registrable Shares will acquire in such offering more than two
percent of the Company Common Stock outstanding at the time of such purchase
and sale.

 

Section 5.         Registration Mechanics.

 

(a)        Company Obligations. In connection with
any registration of Registrable Shares pursuant to Section 2 or 3, the
Company shall:

 

(i)         prepare and file with the SEC such
amendments and supplements to such registration statement and the prospectus
used in connection with such registration statement as may be necessary to
comply with the provisions of the Securities Act and the rules promulgated
thereunder with respect to the sale or other disposition of all of the
securities proposed to be registered by such registration statement;

 

(ii)        furnish to the Holders such number of
copies of any prospectus (including preliminary, amended and supplemental
prospectuses and any “issuer free writing prospectuses” (as such term is
defined in Rule 433 under the Securities Act)) and conformed copies of the
registration statement (including amendments or supplements thereto and, in
each case, all exhibits) and such other documents as it may reasonably request,
but only while the Company shall be required under the provisions hereof to
cause the registration statement to remain effective;

 

(iii)       (A)       use
its best efforts to register or qualify the Registrable Shares covered by such
registration statement under such other securities or blue sky laws of such
jurisdictions as the Holders or any underwriter shall reasonably request, and
do any and all other acts and things which may be necessary or advisable to
enable such Holders or any underwriter to consummate the disposition of
Registrable Shares in such jurisdictions and (B) keep such registration or
qualification in effect for so long as the registration statement remains in
effect; provided, however, that the Company shall not be obligated to qualify
to do business as a foreign corporation under the laws of any jurisdiction in
which it shall not then be qualified or to file any general consent to service
of process in any jurisdiction in which such a consent has not been previously
filed;

 

A-3

 

(iv)       use reasonable efforts to furnish, or
cause to be furnished, to the Holders, addressed to them, (A) an opinion
of counsel for the Company, dated the date of the closing under the
underwriting agreement relating to any underwritten offering, and (B) a “cold
comfort” letter signed by the independent public accountants who have certified
the Company’s financial statements included in such registration statement,
covering substantially the same matters with respect to such registration statement
(and the prospectus included therein) and, in the case of such accountants’
letter, with respect to events subsequent to the date of such financial
statements, as are customarily covered in opinions of issuer’s counsel and in
accountants’ letters delivered to underwriters in underwritten public offerings
of securities and such other matters as such Holders may reasonably request;

 

(v)        use its reasonable best efforts to cause
all Registrable Shares proposed to be registered by such registration statement
to be registered with or approved by such other federal or state government
agencies or authorities as may be necessary in the opinion of counsel to the
Company to enable the Holders to consummate the disposition of such Registrable
Shares;

 

(vi)       within a reasonable time before each
filing of the registration statement or prospectus or amendments or supplements
thereto with the SEC, furnish to one counsel selected by the Holders copies of
such documents proposed to be filed, which documents shall be subject to the
reasonable approval of such counsel, and promptly provide such counsel with all
written comments from the SEC with respect to such documents;

 

(vii)      make available to the Holders, any
underwriter participating in any disposition pursuant to a registration
statement, and any attorney, accountant or other agent or representative
retained by any selling Holder or underwriter, upon request, all financial and
other records, pertinent corporate documents and properties of the Company and
Company Subsidiaries, including access to due diligence meetings involving the
senior executives of the Company, as shall be reasonably necessary to enable
the Holders, representatives of the Holders and the underwriters to conduct
reasonable due diligence and cause the Company’s officers, directors and
employees to supply all information reasonably requested by any such person in
connection with such registration statement subject, in each case, to such
confidentiality agreements as the Company shall reasonably request and that in
the case of the Holders, this obligation shall only apply to one attorney,
accountant or other representative designated by the Requesting Holders;

 

(viii)      make available executive officers and
other members of senior management of the Company (including the principal
executive and financial officers of the Company) at “road shows” or other
investor presentations conducted in connection with offerings of Registrable
Shares (subject to such executive officers and members of management being able
to properly address their other business responsibilities);

 

(ix)       notify the Holders any time a prospectus
relating to the offering of Registrable Shares is required to be delivered or
filed under the Securities Act upon discovery that, or upon the occurrence of
any event as a result of which, the prospectus included in such registration
statement, as then in effect, includes an untrue statement of a material fact
or omits to state any material facts required to be stated therein or necessary
to make the statements therein not misleading, in light of the circumstances
under which they were made, and (subject to the good faith determination of the
board of directors of the Company as to whether to cease or 

 

A-4

 

temporarily halt all sales under such registration
statement), at the request of the Holders prepare and furnish to it a
reasonable number of copies of a supplement to or an amendment of such
prospectus as may be necessary so that, as thereafter delivered to the
purchasers of such securities, such prospectus shall not include an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading, in
the light of the circumstances under which they were made;

 

(x)        use reasonable efforts to comply with
all applicable rules and regulations of the SEC; and

 

(xi)       cause the Registrable Shares covered by
such registration statement to be listed on the Nasdaq Global Select Market or
on any other principal securities exchange on which Company securities of the
same class as the Registrable Shares are then listed.

 

(b)        Holder Obligations. Each Holder that
holds shares covered by any registration statement will furnish to the Company
in writing such information regarding itself as is required to be included in
the registration statement, the ownership of shares by such Holder and the
proposed distribution by such Holder of such shares as the Company may from
time to time reasonably request in writing.

 

Section 6.         Expenses. The Company shall pay
or cause to be paid all of the Company’s fees and expenses in connection with
any registration and sale of Registrable Shares pursuant to the Registration
Rights (including, without limitation, all registration and filing fees, all
printing costs, all fees and expenses of counsel and independent accountants
for the Company and all fees and expenses of complying with securities or blue
sky laws).  Notwithstanding anything
contained herein, the Company shall not be responsible for any broker,
underwriter or similar fees or commissions, or any legal expenses or costs of
the Holders in connection therewith.

 

Section 7.         Indemnification and Contribution.

 

(a)        Indemnification by the Company.
With respect to any offering and sale registered pursuant to these Registration
Rights, the Company agrees to indemnify and hold any selling Holder, each
underwriter, if any, of the Registrable Shares under such registration, and
each Person who controls any of the foregoing within the meaning of Section 15
of the Securities Act, and any directors and officers of the foregoing,
harmless against any and all losses, claims, damages, or liabilities (including
legal fees and other expenses incurred in the investigation and defense
thereof) to which they or any of them may become subject under the Securities
Act or otherwise (collectively “Losses”), insofar as any such Losses
shall arise out of or shall be based upon (i) any untrue statement or
alleged untrue statement of a material fact contained in the registration
statement relating to the sale of such Registrable Shares, or the omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, (ii) any
untrue statement or alleged untrue statement of a material fact contained in
the prospectus relating to the sale of such Registrable Shares, or the omission
or alleged omission to state therein a material fact necessary in order to make
the statements therein, in light of the circumstances under which they were
made, not misleading, or (iii) any violation or alleged violation by the
Company of the Securities Act, the Exchange Act, any applicable state
securities law or any rule or regulation promulgated under the Securities
Act, the Exchange Act 

 

A-5

 

or any applicable state securities law; provided,
however, that the indemnification contained in this Section 7 shall not
apply to such Losses which shall arise out of or shall be based upon any such
untrue statement, or any such omission or alleged omission, which shall have
been made in reliance upon and in conformity with information furnished in
writing to the Company by any selling Holder or any underwriter, as the case
may be, specifically for use in connection with the preparation of the
registration statement or prospectus contained in the registration statement or
any such amendment thereof or supplement therein.

 

(b)        Indemnification by the Holders.
In the case of each offering and sale registered pursuant to these Registration
Rights, any selling Holder and each underwriter, if any, participating therein
shall severally indemnify and hold harmless the Company and each Person, if
any, who controls the Company within the meaning of Section 15 of the
Securities Act, and the directors and officers of the Company, with respect to
any statement in or omission from such registration statement or prospectus
contained in such registration statement (as amended or as supplemented, if
amended or supplemented as aforesaid) if such statement or omission shall have
been made in reliance upon and in conformity with information furnished in
writing to the Company by any selling Holder or such underwriter, as the case
may be, specifically for use in connection with the preparation of such
registration statement or prospectus contained in the registration statement or
any such amendment thereof or supplement thereto.

 

(c)        Notice. Each party indemnified
under this Section 7 shall promptly after receipt of notice of the
commencement of any claim against such indemnified party in respect of which
indemnity may be sought hereunder, notify the indemnified party in writing of
the commencement thereof. The failure of any indemnified party to notify an
indemnifying party shall not relieve the indemnifying party from any liability
in respect of such action which it may have to such indemnified party on
account of the indemnity contained in this Section 7, unless (and only to
the extent) the indemnifying party was prejudiced by such failure, and in no
event shall such failure relieve the indemnifying party from any other
liability which it may have to such indemnified party. In case any action in
respect of which indemnification may be sought hereunder shall be brought
against any indemnified party and it shall notify an indemnifying party of the
commencement thereof, the indemnifying party shall be entitled to participate
therein and, to the extent that it may desire, jointly with any other
indemnifying party similarly notified, to assume the defense thereof through
counsel reasonably satisfactory to the indemnified party, and after notice from
the indemnifying party to such indemnified party of its election to assume the
defense thereof, the indemnifying party shall not be liable to such indemnified
party under this Section 7 for any legal or other expenses subsequently
incurred by such indemnified party in connection with the defense thereof,
other than reasonable costs of investigation (unless such indemnified party
reasonably objects to such assumption on the grounds that there may be defenses
available to it which are different from or in addition to those available to
such indemnifying party in which event the indemnifying party shall not be
entitled to assume the defense thereof with respect to such defenses). No
indemnifying party shall, without the prior written consent of the indemnified
party, effect any settlement of any claim or pending or threatened proceeding in
respect of which the indemnified party is or could have been a party and
indemnity could have been sought hereunder by such indemnified party, unless
such settlement includes an unconditional release of such indemnified party
from all liability arising out of such claim or proceeding.

 

A-6

 

(d)        Contribution. If the
indemnification provided for in this Section 7 is unavailable to an
indemnified party or is insufficient to hold such indemnified party harmless
from any Losses in respect of which this Section 7 would otherwise apply
by its terms (other than by reason of exceptions provided herein), then each
applicable indemnifying party, in lieu of indemnifying such indemnified party,
shall contribute to the amount paid or payable by such indemnified party as a
result of such Losses, in such proportion as is appropriate to reflect the
relative fault of the indemnifying party, on the one hand, and such indemnified
party, on the other hand, in connection with the offering to which such
contributions relates as well as any other relevant equitable considerations.
The relative fault shall be determined by reference to, among other things,
each party’s relative knowledge and access to information concerning the matter
with respect to which the claim was asserted, and the opportunity to correct
and prevent any statement or omission. The amount paid or payable by a party as
a result of any Losses shall be deemed to include any legal or other fees or
expenses incurred by such party in connection with any investigation or
proceeding to the extent such party would have been indemnified for such
expenses if the indemnification provided for in this Section 7 was
available to such party. The parties hereto agree that it would not be just and
equitable if contribution pursuant to this Section 7(d) were
determined by pro rata allocation or by any other method of allocation that
does not take account of the equitable considerations referred to in the
preceding paragraph. No person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled
to contribution from any person who was not guilty of such fraudulent
misrepresentation.

 

Section 8.         Exchange Act Reports. With a
view to making available to the Holders the benefits of Rule 144 and any
other rule or regulation of the SEC that may at any time permit a Holder
to sell securities of the Company to the public without registration, the
Company agrees to use its reasonable best efforts to:

 

(a)        make and keep public information
available, as those terms are understood and defined in Rule 144, at all
times, and take all action as may be required as a condition to the
availability of Rule 144;

 

(b)        so long as a Holder owns any Registrable
Shares, furnish to any Holders upon its reasonable written request a written
statement certifying the Company’s compliance with the reporting requirements
of Rule 144 or any similar rule, and a copy of the most recent annual,
periodic or current report of the Company filed pursuant to the Exchange Act
and such other reports and documents as reasonably requested by such Holder in
availing itself of any rule or regulation of the SEC allowing the sale of
the Registrable Shares without registration;

 

(c)        file with the SEC in a timely manner all
reports and other documents required of the Company under the Securities Act
and the Exchange Act; and

 

(d)        facilitate and expedite transfers of
Registrable Shares sold pursuant to SEC Rule 144, including providing timely
notice to its transfer agent to expedite such transfers.

 

Section 9.         Other Agreements.

 

(a)        The Company shall not grant, and has not
granted, any other Person rights to register securities of the Company on terms
that would be reasonably likely to restrict the ability 

 

A-7

 

of the Company fully to perform its obligations to the
Holders in connection with the Registration Rights.

 

(b)        The Company shall not amend any
registration rights agreement with any other Person nor shall the Company waive
any provision under any registration rights agreement that it would be entitled
to waive thereunder if such waiver would be reasonably likely to adversely
affect any Holder’s Registration Rights.

 

Section 10.       Benefits of Registration Rights.
The Stockholder and any permitted holder of the Shares under the Investor
Rights Agreement may exercise and have the benefits of the Registration Rights
initially granted to the Stockholder hereunder in such manner and in such proportion
as shall be determined by such Stockholder (such Stockholder and such holders
exercising Registration Rights each shall be termed a “Holder” hereunder);
provided, that each Holder shall also be subject to the obligations provided
hereunder.

 

A-8Exhibit 4.1

 

 

 

REDDY ICE CORPORATION,

 

as Company

 

REDDY ICE HOLDINGS, INC.,

 

as Parent

 

and the Subsidiary Guarantors party hereto

 

11.25% Senior Secured Notes due 2015

 

 

INDENTURE

 

Dated as of March 15, 2010

 

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

 

as Trustee

 

and

 

as Collateral Agent

 

 

 

 

CROSS-REFERENCE TABLE

 

	
  TIA
  Section

  	
   

  	
  Indenture Section

  
	
  303

  	
   

  	
  1.4

  
	
  310
  (a)(1)

  	
   

  	
  7.9

  
	
  (a)(2)

  	
   

  	
  7.9

  
	
  (a)(3)

  	
   

  	
  N.A.

  
	
  (a)(4)

  	
   

  	
  N.A.

  
	
  (a)(5)

  	
   

  	
  7.9

  
	
  (b)

  	
   

  	
  7.9

  
	
  (c)

  	
   

  	
  N.A.

  
	
  311
  (a)

  	
   

  	
  7.11

  
	
  (b)

  	
   

  	
  7.11

  
	
  (c)

  	
   

  	
  N.A.

  
	
  312
  (a)

  	
   

  	
  2.5

  
	
  (b)

  	
   

  	
  12.18

  
	
  (c)

  	
   

  	
  12.18

  
	
  313
  (a)

  	
   

  	
  7.12

  
	
  (b)

  	
   

  	
  7.12

  
	
  (b)(1)

  	
   

  	
  7.12

  
	
  (b)(2)

  	
   

  	
  7.6;
  7.12

  
	
  (c)

  	
   

  	
  7.12;
  12.1

  
	
  (d)

  	
   

  	
  7.12

  
	
  314
  (a)

  	
   

  	
  5.3;
  12.3

  
	
  (a)(1)

  	
   

  	
  6.2

  
	
  (a)(4)

  	
   

  	
  3.12;
  12.3

  
	
  (b)

  	
   

  	
  N.A.

  
	
  (c)(1)

  	
   

  	
  12.2

  
	
  (c)(2)

  	
   

  	
  12.2

  
	
  (c)(3)

  	
   

  	
  N.A.

  
	
  (d)

  	
   

  	
  N.A.

  
	
  (e)

  	
   

  	
  12.2;
  12.3

  
	
  (f)

  	
   

  	
  N.A.

  
	
  315
  (a)

  	
   

  	
  7.1(b);
  7.2

  
	
  (b)

  	
   

  	
  7.5;
  12.1

  
	
  (c)

  	
   

  	
  7.1(a)

  
	
  (d)

  	
   

  	
  7.1(c)

  
	
  (e)

  	
   

  	
  6.11

  
	
  316
  (a) (last sentence)

  	
   

  	
  2.16

  
	
  (a)(1)(A)

  	
   

  	
  6.5

  
	
  (a)(1)(B)

  	
   

  	
  6.4

  
	
  (a)(2)

  	
   

  	
  N.A.

  
	
  (b)

  	
   

  	
  6.7

  
	
  (c)

  	
   

  	
  2.17

  
	
  317
  (a)(1)

  	
   

  	
  6.8

  
	
  (a)(2)

  	
   

  	
  6.9

  
	
  (b)

  	
   

  	
  2.4

  
	
  318 (a)

  	
   

  	
  12.17

  
	
  (c)

  	
   

  	
  12.17

  

 

N.A.
means Not Applicable.

Note:  This
Cross-Reference Table shall not, for any purposes, be deemed to be part hereof.

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Definitions
  and Incorporation by Reference

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.1.

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  SECTION 1.2.

  	
   

  	
  Other Definitions

  	
   

  	
  29

  
	
  SECTION 1.3.

  	
   

  	
  Rules of Construction

  	
   

  	
  30

  
	
  SECTION 1.4.

  	
   

  	
  Incorporation by Reference of Trust Indenture Act

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  II

  
	
   

  
	
  The Notes

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.1.

  	
   

  	
  Form and Dating

  	
   

  	
  31

  
	
  SECTION 2.2.

  	
   

  	
  Form of Execution and Authentication

  	
   

  	
  33

  
	
  SECTION 2.3.

  	
   

  	
  Registrar and Paying Agent

  	
   

  	
  34

  
	
  SECTION 2.4.

  	
   

  	
  Paying Agent to Hold Money in Trust

  	
   

  	
  34

  
	
  SECTION 2.5.

  	
   

  	
  Lists of Holders of the Notes

  	
   

  	
  34

  
	
  SECTION 2.6.

  	
   

  	
  Transfer and Exchange

  	
   

  	
  35

  
	
  SECTION 2.7.

  	
   

  	
  Replacement Notes

  	
   

  	
  44

  
	
  SECTION 2.8.

  	
   

  	
  Outstanding Notes

  	
   

  	
  44

  
	
  SECTION 2.9.

  	
   

  	
  Treasury Notes

  	
   

  	
  45

  
	
  SECTION 2.10.

  	
   

  	
  Temporary Notes

  	
   

  	
  45

  
	
  SECTION 2.11.

  	
   

  	
  Cancellation

  	
   

  	
  45

  
	
  SECTION 2.12.

  	
   

  	
  Payment of Interest; Defaulted Interest

  	
   

  	
  45

  
	
  SECTION 2.13.

  	
   

  	
  CUSIP Numbers

  	
   

  	
  46

  
	
  SECTION 2.14.

  	
   

  	
  Reserved

  	
   

  	
  46

  
	
  SECTION 2.15.

  	
   

  	
  Record Date

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
   

  
	
  Covenants

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.1.

  	
   

  	
  Payment of Notes

  	
   

  	
  47

  
	
  SECTION 3.2.

  	
   

  	
  SEC Reports

  	
   

  	
  47

  
	
  SECTION 3.3.

  	
   

  	
  Limitation on Indebtedness

  	
   

  	
  48

  
	
  SECTION 3.4.

  	
   

  	
  Limitation on Restricted Payments

  	
   

  	
  51

  
	
  SECTION 3.5.

  	
   

  	
  Limitation on Liens

  	
   

  	
  54

  
	
  SECTION 3.6.

  	
   

  	
  Limitation on Restrictions on Distributions from
  Restricted Subsidiaries

  	
   

  	
  55

  
	
  SECTION 3.7.

  	
   

  	
  Limitation on Sales of Assets and Subsidiary Stock

  	
   

  	
  57

  
	
  SECTION 3.8.

  	
   

  	
  Limitation on
  Affiliate Transactions

  	
   

  	
  59

  
	
  SECTION 3.9.

  	
   

  	
  Change of Control

  	
   

  	
  60

  
	
  SECTION 3.10.

  	
   

  	
  Maintenance of Properties

  	
   

  	
  62

  
	
  SECTION 3.11.

  	
   

  	
  Additional Subsidiary Guarantees; Insurance

  	
   

  	
  62

  
	
  SECTION 3.12.

  	
   

  	
  Limitation on Line of Business

  	
   

  	
  63

  

 

i

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.13.

  	
   

  	
  Compliance Certificate

  	
   

  	
  63

  
	
  SECTION 3.14.

  	
   

  	
  Statement by Officers as to Default

  	
   

  	
  63

  
	
  SECTION 3.15.

  	
   

  	
  Post-Closing Obligations and After-Acquired
  Collateral

  	
   

  	
  63

  
	
  SECTION 3.16.

  	
   

  	
  Limitation on Sales or Issuances of Capital Stock
  of Restricted Subsidiaries

  	
   

  	
  65

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  IV

  
	
   

  
	
  Successor
  Company and Successor Guarantor

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.1.

  	
   

  	
  When Company May Merge or Otherwise Dispose
  of Assets

  	
   

  	
  65

  
	
  SECTION 4.2.

  	
   

  	
  When Parent or a Subsidiary Guarantor
  May Merge or Otherwise Dispose of Assets

  	
   

  	
  66

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  
	
   

  
	
  Redemption
  of Notes

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.1.

  	
   

  	
  Optional Redemption

  	
   

  	
  68

  
	
  SECTION 5.2.

  	
   

  	
  Election to Redeem; Notice to Trustee of Optional
  and Mandatory Redemptions

  	
   

  	
  69

  
	
  SECTION 5.3.

  	
   

  	
  Selection by Trustee of Notes to Be Redeemed

  	
   

  	
  69

  
	
  SECTION 5.4.

  	
   

  	
  Notice of Redemption

  	
   

  	
  70

  
	
  SECTION 5.5.

  	
   

  	
  Deposit of Redemption Price

  	
   

  	
  70

  
	
  SECTION 5.6.

  	
   

  	
  Notes Payable on Redemption Date

  	
   

  	
  71

  
	
  SECTION 5.7.

  	
   

  	
  Notes Redeemed in Part

  	
   

  	
  71

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VI

  
	
   

  
	
  Defaults
  and Remedies

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.1.

  	
   

  	
  Events of Default

  	
   

  	
  71

  
	
  SECTION 6.2.

  	
   

  	
  Acceleration

  	
   

  	
  74

  
	
  SECTION 6.3.

  	
   

  	
  Other Remedies

  	
   

  	
  74

  
	
  SECTION 6.4.

  	
   

  	
  Waiver of Past Defaults

  	
   

  	
  74

  
	
  SECTION 6.5.

  	
   

  	
  Control by Majority

  	
   

  	
  74

  
	
  SECTION 6.6.

  	
   

  	
  Limitation on Suits

  	
   

  	
  75

  
	
  SECTION 6.7.

  	
   

  	
  Rights of Holders to Receive Payment

  	
   

  	
  75

  
	
  SECTION 6.8.

  	
   

  	
  Collection Suit by Trustee

  	
   

  	
  75

  
	
  SECTION 6.9.

  	
   

  	
  Trustee May File Proofs of Claim

  	
   

  	
  75

  
	
  SECTION 6.10.

  	
   

  	
  Priorities

  	
   

  	
  76

  
	
  SECTION 6.11.

  	
   

  	
  Undertaking for Costs

  	
   

  	
  76

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VII

  
	
   

  
	
  Trustee

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.1.

  	
   

  	
  Duties of Trustee and Collateral Agent

  	
   

  	
  76

  

 

ii

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.2.

  	
   

  	
  Rights of Trustee and Collateral Agent

  	
   

  	
  78

  
	
  SECTION 7.3.

  	
   

  	
  Individual Rights of Trustee and Collateral Agent

  	
   

  	
  79

  
	
  SECTION 7.4.

  	
   

  	
  Disclaimer

  	
   

  	
  80

  
	
  SECTION 7.5.

  	
   

  	
  Notice of Defaults

  	
   

  	
  80

  
	
  SECTION 7.6.

  	
   

  	
  Compensation and Indemnity

  	
   

  	
  80

  
	
  SECTION 7.7.

  	
   

  	
  Replacement of Trustee

  	
   

  	
  81

  
	
  SECTION 7.8.

  	
   

  	
  Successor Trustee by Merger

  	
   

  	
  81

  
	
  SECTION 7.9.

  	
   

  	
  Eligibility; Disqualification

  	
   

  	
  82

  
	
  SECTION 7.10.

  	
   

  	
  Limitation on Duty of Trustee and Collateral Agent
  in Respect of Collateral; Indemnification

  	
   

  	
  82

  
	
  SECTION 7.11.

  	
   

  	
  Preferential Collection of Claims Against Company

  	
   

  	
  82

  
	
  SECTION 7.12.

  	
   

  	
  Reports by Trustee to Holders of the Notes

  	
   

  	
  82

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII

  
	
   

  
	
  Discharge
  of Indenture; Defeasance

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.1.

  	
   

  	
  Discharge of Liability on Notes; Defeasance

  	
   

  	
  83

  
	
  SECTION 8.2.

  	
   

  	
  Conditions to Defeasance

  	
   

  	
  84

  
	
  SECTION 8.3.

  	
   

  	
  Application of Trust Money

  	
   

  	
  85

  
	
  SECTION 8.4.

  	
   

  	
  Repayment to Company

  	
   

  	
  85

  
	
  SECTION 8.5.

  	
   

  	
  Indemnity for U.S. Government Obligations

  	
   

  	
  85

  
	
  SECTION 8.6.

  	
   

  	
  Reinstatement

  	
   

  	
  85

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  
	
   

  
	
  Amendments

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.1.

  	
   

  	
  Without Consent of Holders

  	
   

  	
  85

  
	
  SECTION 9.2.

  	
   

  	
  With Consent of Holders

  	
   

  	
  87

  
	
  SECTION 9.3.

  	
   

  	
  Effect of Consents and Waivers

  	
   

  	
  88

  
	
  SECTION 9.4.

  	
   

  	
  Notation on or Exchange of Notes

  	
   

  	
  88

  
	
  SECTION 9.5.

  	
   

  	
  Trustee and Collateral Agent To Sign Amendments

  	
   

  	
  88

  
	
  SECTION 9.6.

  	
   

  	
  Compliance with Trust Indenture Act

  	
   

  	
  89

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  
	
   

  
	
  Guarantees

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.1.

  	
   

  	
  Guarantees

  	
   

  	
  89

  
	
  SECTION 10.2.

  	
   

  	
  Limitation on Liability; Termination, Release and
  Discharge

  	
   

  	
  90

  
	
  SECTION 10.3.

  	
   

  	
  Right of Contribution

  	
   

  	
  91

  
	
  SECTION 10.4.

  	
   

  	
  No Subrogation

  	
   

  	
  91

  

 

iii

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  XI

  
	
   

  
	
  Collateral
  and Security

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.1.

  	
   

  	
  The Collateral

  	
   

  	
  92

  
	
  SECTION 11.2.

  	
   

  	
  Further Assurances

  	
   

  	
  92

  
	
  SECTION 11.3.

  	
   

  	
  Release of Liens on the Collateral

  	
   

  	
  93

  
	
  SECTION 11.4.

  	
   

  	
  Authorization of Actions to Be Taken by the
  Trustee or the Collateral Agent Under the Collateral Documents

  	
   

  	
  94

  
	
  SECTION 11.5.

  	
   

  	
  Recording, Registration and Opinions

  	
   

  	
  95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  XII

  
	
   

  
	
  Miscellaneous

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 12.1.

  	
   

  	
  Notices

  	
   

  	
  96

  
	
  SECTION 12.2.

  	
   

  	
  Certificate and Opinion as to Conditions Precedent

  	
   

  	
  97

  
	
  SECTION 12.3.

  	
   

  	
  Statements Required in Certificate or Opinion

  	
   

  	
  97

  
	
  SECTION 12.4.

  	
   

  	
  When Notes Disregarded

  	
   

  	
  97

  
	
  SECTION 12.5.

  	
   

  	
  Rules by Trustee, Paying Agent and Registrar

  	
   

  	
  98

  
	
  SECTION 12.6.

  	
   

  	
  Days Other than Business Days

  	
   

  	
  98

  
	
  SECTION 12.7.

  	
   

  	
  Governing Law

  	
   

  	
  98

  
	
  SECTION 12.8.

  	
   

  	
  Waiver of Jury Trial

  	
   

  	
  98

  
	
  SECTION 12.9.

  	
   

  	
  No Recourse Against Others

  	
   

  	
  98

  
	
  SECTION 12.10.

  	
   

  	
  Successors

  	
   

  	
  98

  
	
  SECTION 12.11.

  	
   

  	
  Multiple Originals

  	
   

  	
  98

  
	
  SECTION 12.12.

  	
   

  	
  Variable Provisions

  	
   

  	
  98

  
	
  SECTION 12.13.

  	
   

  	
  Table of Contents; Headings

  	
   

  	
  98

  
	
  SECTION 12.14.

  	
   

  	
  Direction by Holders to Enter into Collateral
  Documents, the First Lien Intercreditor Agreement and the Junior Lien
  Intercreditor Agreement

  	
   

  	
  98

  
	
  SECTION 12.15.

  	
   

  	
  Force Majeure

  	
   

  	
  99

  
	
  SECTION 12.16.

  	
   

  	
  USA Patriot Act

  	
   

  	
  99

  
	
  SECTION 12.17.

  	
   

  	
  Trust Indenture Act Controls

  	
   

  	
  99

  
	
  SECTION 12.18.

  	
   

  	
  Communication by Holders of Notes with Other
  Holders of Notes

  	
   

  	
  99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ANNEX
  A

  	
   

  	
  Mortgaged Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT
  A

  	
   

  	
  Form of Note

  	
   

  	
   

  
	
  EXHIBIT
  B

  	
   

  	
  Form of Certificate of Transfer

  	
   

  	
   

  
	
  EXHIBIT
  C

  	
   

  	
  Form of Certificate of Exchange

  	
   

  	
   

  
	
  EXHIBIT
  D

  	
   

  	
  Form of Mortgage

  	
   

  	
   

  

 

iv

 

INDENTURE, dated as of March 15, 2010 (this “Indenture”),
among REDDY ICE CORPORATION, a corporation duly organized and existing under
the laws of the State of Nevada (the “Company”), REDDY ICE HOLDINGS,
INC. (“Parent”), certain subsidiaries of the Company from time to time
parties hereto (the “Subsidiary Guarantors”) and WELLS FARGO BANK,
NATIONAL ASSOCIATION, a national banking association, as trustee (in such
capacity, the “Trustee”) and as collateral agent (in such capacity, the “Collateral
Agent”).

 

Recitals of the Company

 

Each party agrees as follows for the benefit of the
other parties and for the equal and ratable benefit of the Holders of the
Notes:

 

ARTICLE
I

 

Definitions
and Incorporation by Reference

 

SECTION 1.1.              Definitions.

 

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

 

“Additional Pari Passu Lien Indebtedness”
means Indebtedness permitted to be incurred under Section 3.3 hereof and
under the Credit Agreement which is by its terms intended to be secured on a pari passu basis with the Liens securing the Notes; provided such Lien is permitted to be
incurred under this Indenture and the Credit Agreement and such Indebtedness
has a Stated Maturity that is no earlier than the Stated Maturity of the Notes.

 

“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 the purposes of this definition, “control”
when used with respect to any Person means the power to direct the management
and policies of such Person, directly or indirectly, whether through the
ownership of voting securities, by contract or otherwise; and the terms “controlling”
and “controlled” have meanings correlative to the foregoing.  For purposes of Sections 3.4, 3.7
and 3.8, as applicable, only, “Affiliate” shall also mean any beneficial
owner of Capital Stock representing 10% or more of the total voting power of
the Voting Stock (on a fully diluted basis) of the Company or of rights or
warrants to purchase such Capital Stock (whether or not currently exercisable)
and any Person who would be an Affiliate of any such beneficial owner pursuant
to the first sentence hereof.

 

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

 

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

 

(1)           1.0%
of the principal amount of such Note; and

 

(2)           the
excess, if any, of (a) the present value as of such Redemption Date of (i) the
redemption price of such Note on March 15, 2013 as set forth in Section 5.1(a),
plus (ii) the remaining scheduled interest payments due on such Note
through March 15, 2013 (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 of such Note.

 

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

 

“Asset Disposition” means with respect to any
Person (the “Specified Person”) any sale, lease, issuance, transfer or
other disposition (or series of related sales, leases, transfers or dispositions)
by the Specified Person or any Restricted Subsidiary of the Specified Person,
including any disposition by means of a merger, consolidation or similar transaction
(each referred to for the purposes of this definition as a “disposition”)
of:

 

(1)           any
shares of Capital Stock of a Restricted Subsidiary of the Specified Person
(other than directors’ qualifying shares or shares required by applicable law
to be held by a Person other than the Specified Person or a Restricted
Subsidiary of the Specified Person);

 

(2)           all
or substantially all the assets of any division or line of business of the Specified
Person or any Restricted Subsidiary of the Specified Person; or

 

(3)           any
other assets of the Specified Person or any Restricted Subsidiary of the
Specified Person outside of the ordinary course of business of the Specified
Person or such Restricted Subsidiary of the Specified Person.

 

Notwithstanding the
preceding, the following items shall not be deemed to be Asset Dispositions:

 

(1)           a
disposition by a Restricted Subsidiary of the Specified Person to the Specified
Person or by the Specified Person or a Restricted Subsidiary of the Specified
Person to a Restricted Subsidiary of the Specified Person;

 

(2)           for
purposes of Section 3.7 only, (x) a disposition that
constitutes a Restricted Payment (or would constitute a Restricted Payment but
for the exclusions from the definition thereof) and that is not prohibited by Section 3.4
and (y) a disposition of all or substantially all the assets of the
Specified Person in accordance with the Section 4.1, as applicable;

 

(3)           a
disposition of assets in any transaction or series of related transactions
where such assets have an aggregate Fair Market Value of less than
$2.0 million;

 

(4)           a
disposition of cash or Temporary Cash Investments;

 

(5)           the
creation of a Lien (but not the sale or other disposition of the property
subject to such Lien);

 

(6)           the
sale or disposition in the ordinary course of business of obsolete, damaged or
worn out assets no longer used or useful to the business of the Company and its
Restricted Subsidiaries;

 

2

 

(7)           the
sale or discount, in each case without recourse, of accounts receivable arising
in the ordinary course of business, but only in connection with the compromise
or collection thereof;

 

(8)           the
grant in the ordinary course of business of any non-exclusive license of patents,
trademarks, registrations thereof and other similar intellectual property;

 

(9)           any
release of intangible claims or rights in connection with the loss or
settlement of a bona fide lawsuit, dispute or other controversy;

 

(10)         leases
or subleases in the ordinary course of business to third persons not interfering
in any material respect with the business of the Specified Person or any of its
Restricted Subsidiaries;

 

(11)         any
disposition of receivables, equipment and related assets (including contract
rights of the type described in the definition of “Qualified Securitization
Transaction”) to a Securitization Entity pursuant to a Qualified Securitization
Transaction for the Fair Market Value thereof, including cash and Temporary
Cash Investments in an amount at least equal to 75% of the Fair Market Value
thereof (for purposes of this clause (11), Purchase Money Notes shall be deemed
to be cash); and

 

(12)         any
transfer of receivables, equipment and related assets (including contract
rights of the type described in the definition of “Qualified Securitization
Transaction”), or a fractional undivided interest therein, by a Securitization
Entity in a Qualified Securitization Transaction.

 

“Attributable Debt” in respect of a
Sale/Leaseback Transaction means, as at the time of determination, the present
value (discounted at the rate of interest implied in such transaction) of the
total obligations of the lessee for rental payments during the remaining term
of the lease included in such Sale/Leaseback Transaction (including any period
for which such lease has been extended); provided, however, that if such Sale/Leaseback Transaction results in
a Capital Lease Obligation, the amount of Indebtedness represented thereby
shall be determined in accordance with the definition of “Capital Lease Obligation.”

 

“Average Life” means, as of the date of
determination, with respect to any Indebtedness, the quotient obtained by
dividing (1) the sum of the products of the numbers of years from the date
of determination to the dates of each successive scheduled principal payment of
or redemption or similar payment with respect to such Indebtedness multiplied
by the amount of such payment by (2) the sum of all such payments.

 

“Board of Directors” with respect to a Person
means the Board of Directors of such Person or any committee thereof duly
authorized to act on behalf of such Board.

 

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

 

“Broker-Dealer” means any broker or dealer
registered under the Exchange Act.

 

3

 

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

 

“Capital Lease Obligation” means an
obligation that is required to be classified and accounted for as a capital
lease for financial reporting purposes in accordance with GAAP, and the amount
of Indebtedness represented by such obligation shall be the capitalized amount
of such obligation determined in accordance with GAAP; and the Stated Maturity
thereof shall be the date of the last payment of rent or any other amount due
under such lease prior to the first date upon which such lease may be terminated
by the lessee without payment of a penalty.

 

“Capital Stock” of any Person means any and
all shares, interests, rights to purchase, warrants, options, participations or
other equivalents of or interests in (however designated) equity of such
Person, including any Preferred Stock, but excluding any debt securities
convertible into such equity.

 

“Cash Management Obligations” means
obligations owed by the Company or any Subsidiary Guarantor to Person who was a
lender or Affiliate of a lender at the time of entry of such obligations under
the Credit Agreement in respect of any overdraft and related liabilities
arising from treasury, depository, credit and debit card and cash management
services or any automated clearing house transfers of funds.

 

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

 

(i)      any “person” (as such
term is used in Sections 13(d) and 14(d) of the Exchange Act) is
or becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under
the Exchange Act, except that for purposes of this clause (i) such
person shall be deemed to have “beneficial ownership” of all shares that any
such person has the right to acquire, whether such right is exercisable
immediately or only after the passage of time), directly or indirectly, of more
than 50% of the total voting power of the Voting Stock of Parent; provided, however, that
for the purposes of this clause (i), such other person shall be deemed to
beneficially own any Voting Stock of a Person held by any other Person (the “parent
entity”), if such other person is the beneficial owner (as defined above in
this clause (i)), directly or indirectly, of more than 50% of the voting
power of the Voting Stock of such parent entity;

 

(ii)     individuals who on the
Issue Date constituted the Board of Directors of the Company or the Board of
Directors of Parent (the “Parent Board”) (together with any new
directors whose election by such Board of Directors of the Company or Parent
Board or whose nomination for election by the shareholders of the Company or
Parent, as the case may be, was approved by a vote of a majority of the
directors of the Company or Parent, as the case may be, then still in office
who were either directors on the Issue Date or whose election or nomination for
election was previously so approved) cease for any reason to constitute a
majority of the Board of Directors of the Company or the Parent Board then in
office;

 

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

 

(iv)    the failure at any time by
Parent to beneficially own (as defined in Rules 13d-3 and 13d-5 under the
Exchange Act), directly or indirectly, 100% of the Voting Stock of the Company
(except to the extent Parent is merged with and into the Company in accordance
with the terms of this Indenture).

 

4

 

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

 

“Collateral”
means all property and assets, whether now owned or hereafter acquired, in
which Liens are, from time to time, purported to be granted to secure the Notes
and the Guarantees pursuant to the Collateral Documents.

 

“Collateral Agent” means Wells Fargo Bank,
National Association, acting in its capacity as collateral agent under the
Collateral Documents, or any successor thereto.

 

“Collateral Documents” means the Security
Agreement, each mortgage and any other instruments and documents executed and
delivered pursuant to this Indenture or any of the foregoing, as the same may
be amended, supplemented or otherwise modified from time to time and pursuant
to which Collateral is pledged, assigned or granted to or on behalf of the
Collateral Agent for the benefit of the Secured Parties.

 

“Commodity Agreement” means any forward
contract, commodity swap, commodity option or other similar financial agreement
or arrangement relating to, or the value of which is dependent upon,
fluctuations in commodity prices.

 

“Company” has the meaning set forth in the
preamble hereto.

 

“Company Order” means a written request or
order signed in the name of the Company by any Officer.

 

“Consolidated Coverage Ratio” with respect to
any Person (the “Specified Person”) as of any date of determination
means the ratio of (x) the aggregate amount of EBITDA of the Specified
Person and its Restricted Subsidiaries for the period of the most recent four
consecutive fiscal quarters ending on or prior to such date of determination
for which internal financial statements are available to (y) Consolidated
Interest Expense of the Specified Person and its Restricted Subsidiaries for
such four fiscal quarters; provided, however, that:

 

(1)           if
the Specified Person or any of its Restricted Subsidiaries has Incurred any Indebtedness
since the beginning of such period that remains outstanding or if the
transaction giving rise to the need to calculate the Consolidated Coverage
Ratio is an Incurrence of Indebtedness, or both, EBITDA and Consolidated
Interest Expense for such period shall be calculated after giving effect on a
pro forma basis to such Indebtedness as if such Indebtedness had been Incurred
on the first day of such period;

 

(2)           if
the Specified Person or any of its Restricted Subsidiaries has repaid, repurchased,
defeased or otherwise discharged any Indebtedness since the beginning of such period
or if any Indebtedness is to be repaid, repurchased, defeased or otherwise
discharged (in each case other than Indebtedness Incurred under any revolving
credit facility unless such Indebtedness has been permanently repaid and has
not been replaced) on the date of the transaction giving rise to the need to
calculate the Consolidated Coverage Ratio, EBITDA and Consolidated Interest Expense
for such period shall be calculated on a pro forma basis as if such discharge
had occurred on the first day of such period and as if the Specified Person or
such Restricted Subsidiary had not earned the interest income actually earned
during such period in respect of cash or Temporary Cash Investments used to
repay, repurchase, defease or otherwise discharge such Indebtedness;

 

5

 

(3)           if
since the beginning of such period the Specified Person or any of its Restricted
Subsidiaries shall have made any Asset Disposition, EBITDA for such period
shall be reduced by an amount equal to EBITDA (if positive) directly
attributable to the assets which were the subject of such Asset Disposition for
such period, or increased by an amount equal to EBITDA (if negative), directly
attributable thereto for such period and Consolidated Interest Expense for such
period shall be reduced by an amount equal to the Consolidated Interest Expense
directly attributable to any Indebtedness of the Specified Person or any of its
Restricted Subsidiaries repaid, repurchased, defeased or otherwise discharged
with respect to the Specified Person and its continuing Restricted Subsidiaries
in connection with such Asset Disposition for such period (or, if the Capital
Stock of any of its Restricted Subsidiaries is sold, the Consolidated Interest
Expense for such period directly attributable to the Indebtedness of such
Restricted Subsidiary to the extent the Specified Person and its continuing
Restricted Subsidiaries are no longer liable for such Indebtedness after such
sale);

 

(4)           if
since the beginning of such period the Specified Person or any of its Restricted
Subsidiaries (by merger or otherwise) shall have made an Investment in any
Restricted Subsidiary of the Specified Person (or any person which becomes a
Restricted Subsidiary of the Specified Person) or an acquisition of assets,
including any acquisition of assets occurring in connection with a transaction
requiring a calculation to be made hereunder, which constitutes all or substantially
all of an operating unit of a business, EBITDA and Consolidated Interest Expense
for such period shall be calculated after giving pro forma effect thereto (including
the Incurrence of any Indebtedness) as if such Investment or acquisition had
occurred on the first day of such period; and

 

(5)           if
since the beginning of such period any Person (that subsequently became a Restricted
Subsidiary of the Specified Person or was merged with or into the Specified
Person or any of its Restricted Subsidiaries since the beginning of such
period) shall have made any Asset Disposition, any Investment or acquisition of
assets that would have required an adjustment pursuant to clause (3) or
(4) above if made by the Specified Person or a Restricted Subsidiary of
the Specified Person during such period, EBITDA and Consolidated Interest
Expense for such period shall be calculated after giving pro forma effect
thereto as if such Asset Disposition, Investment or acquisition occurred on the
first day of such period.

 

For purposes of this definition, whenever pro forma
effect is to be given to an acquisition of assets, the amount of income or
earnings relating thereto and the amount of Consolidated Interest Expense
associated with any Indebtedness Incurred in connection therewith, the pro
forma calculations shall be determined in good faith by a responsible financial
or accounting Officer of the Specified Person (and, to the extent applicable,
may include any pro forma expense and cost reductions recognizable within
12-months of the acquisition of such assets; provided
that the Company reasonably believes that such expense and cost reductions
could be achieved within such 12-month period as a result of such acquisition
and such reductions are identified and quantified in an Officers’ Certificate
delivered to the Trustee on or prior to the date of such acquisition).  If any Indebtedness bears a floating rate of
interest and is being given pro forma effect, the interest on such Indebtedness
shall be calculated as if the rate in effect on the date of determination had
been the applicable rate for the entire period (taking into account any
Interest Rate Agreement applicable to such Indebtedness to the extent such
Interest Rate Agreement has a remaining term that includes some or all of the
12-month period of the date of determination). 
If any Indebtedness is incurred under a revolving credit facility and is
being given pro forma effect, the interest on such Indebtedness shall be
calculated based on the average daily balance of such Indebtedness for the four
fiscal quarters subject to the pro forma calculation (but, in the case of any
revolving credit facility incurred 

 

6

 

other than pursuant to Section 3.3(b)(i) hereof,
only to the extent such Indebtedness is incurred solely for working capital
purposes or other general corporate purposes in the ordinary course of business
and not, in any case, to support directly or indirectly any acquisitions).

 

“Consolidated Interest Expense” means, with
respect to any Person (the “Specified Person”) for any period, the total
interest expense of the Specified Person and its consolidated Restricted
Subsidiaries, plus, to the extent not included in such total interest expense,
and to the extent incurred by the Specified Person or its Restricted
Subsidiaries, without duplication:

 

(1)           interest
expense attributable to Capital Lease Obligations;

 

(2)           amortization
of debt discount and debt issuance cost;

 

(3)           capitalized
interest;

 

(4)           non-cash
interest expense;

 

(5)           commissions,
discounts and other fees and charges owed with respect to letters of credit and
bankers’ acceptance financing;

 

(6)           net
payments pursuant to Hedging Obligations with respect to Interest Rate
Agreements;

 

(7)           dividends
accrued in respect of all Disqualified Stock of the Specified Person or
Preferred Stock of a Restricted Subsidiary of the Specified Person held by
Persons other than the Specified Person or a Restricted Subsidiary of the
Specified Person (other than dividends payable solely in Capital Stock (other
than Disqualified Stock) of the Specified Person); provided,
however, that such dividends shall be
multiplied by a fraction the numerator of which is one and the denominator of
which is one minus the effective combined tax rate of the issuer of such
Preferred Stock (expressed as a decimal) for such period (as estimated by the
Chief Financial Officer of the Specified Person in good faith);

 

(8)           interest
incurred in connection with Investments in discontinued operations;

 

(9)           interest
accruing on any Indebtedness of any other Person to the extent such Indebtedness
is Guaranteed by (or secured by the assets of) the Specified Person or any
Restricted Subsidiary of the Specified Person; and

 

(10)         the
cash contributions to any employee stock ownership plan or similar trust to the
extent such contributions are used by such plan or trust to pay interest or
fees to any Person (other than the Specified Person) in connection with
Indebtedness Incurred by such plan or trust.

 

“Consolidated Net Income” means, with respect
to any Person (the “Specified Person”) for any period, the net income of
the Specified Person and its consolidated Subsidiaries (other than
non-controlling interests); provided, however, that there shall not be included in such
Consolidated Net Income:

 

7

 

(1)           any net income of any Person (other than the Specified
Person) if such Person is not a Restricted Subsidiary of the Specified Person,
except that:

 

(A)          subject
to the exclusions contained in clauses (4) and (6) below, the
Specified Person’s equity in the net income of any such Person for such period
shall be included in such Consolidated Net Income in an amount equal to the
aggregate amount of cash actually distributed by such Person during such period
to the Specified Person or a Restricted Subsidiary of the Specified Person as a
dividend or other distribution (subject, in the case of a dividend or other
distribution paid to a Restricted Subsidiary, to the limitations contained in
clause (3) below); and

 

(B)           the
Specified Person’s equity in a net loss of any such Person for such period
shall be included in determining such Consolidated Net Income;

 

(2)           any
net income of any Restricted Subsidiary of the Specified Person if such Restricted
Subsidiary is subject to restrictions, directly or indirectly, on the payment
of dividends or the making of distributions by such Restricted Subsidiary (other
than any such restriction that is permitted pursuant to Section 3.6
hereof), directly or indirectly, to the Specified Person, except that:

 

(A)          subject
to the exclusion contained in clause (4) below, the net income of any
such Restricted Subsidiary for such period shall be included in such
Consolidated Net Income in an amount equal to the aggregate amount of cash
actually distributed by such Restricted Subsidiary during such period to the
Specified Person or another Restricted Subsidiary of the Specified Person as a
dividend or other distribution (subject, in the case of a dividend or other
distribution paid to another Restricted Subsidiary of the Specified Person, to
the limitation contained in this clause); and

 

(B)           the
net loss of any such Restricted Subsidiary for such period shall be included in
determining such Consolidated Net Income;

 

(3)           any
gain (or loss) realized upon the sale or other disposition of any assets of the
Specified Person, its consolidated Subsidiaries or any other Person (including
pursuant to any sale-and-leaseback arrangement) which are not sold or otherwise
disposed of in the ordinary course of business and any gain (or loss) realized
upon the sale or other disposition of any Capital Stock of any Person;

 

(4)           extraordinary
gains or losses;

 

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

 

(6)           any
non-recurring fees, charges or other expenses (including bonus and retention
payments and severance expenses) directly related to (x) the Transactions
and (y) any acquisitions, divestitures or similar transactions entered
into after the Issue Date;

 

(7)           fees,
expenses and amounts paid in defense of, or to discharge judgments, pursuant to
settlements or as fines or penalties arising from or related to, lawsuits,
governmental proceedings or regulatory actions or investigations in connection
with the pending Department of Justice investigation of Parent and its
subsidiaries; and

 

8

 

(8)           the
amount of any write-off of deferred financing costs or of debt issuance costs
and the amount of charges related to any premium paid in connection with
repurchasing Indebtedness, in each case as a result of the Transactions.

 

Notwithstanding the foregoing, for the purposes of Section 3.4
only, there shall be excluded from Consolidated Net Income any repurchases,
repayments or redemptions of Investments, proceeds realized on the sale of
Investments or return of capital to the Specified Person or any of its Restricted
Subsidiaries to the extent such repurchases, repayments, redemptions, proceeds
or returns increase the amount of Restricted Payments permitted pursuant to
clause (a)(iii)(D) thereof.

 

“Corporate Trust Office” shall be at the
address of the Trustee specified in Section 12.1 or such other
address as to which the Trustee may give notice to the Company or Holders
pursuant to the procedures set forth in Section 12.1.

 

“Credit Agreement” means the Credit Agreement
dated as of the Issue Date, as amended to date, among the Company, the
guarantors party thereto, the several lenders from time to time party thereto
and J.P. Morgan Chase Bank, N.A., as administrative agent and the other agents
party thereto as such agreement may be amended (including any amendment and
restatement thereof), supplemented or otherwise modified from time to time,
including any agreement extending the maturity of, refinancing, replacing,
consolidating or otherwise restructuring all or any portion of the Indebtedness
under any such agreement or any successor or replacement agreement and whether
by the same or any other agent, lender or group of lenders and whether or not
increasing the amount of Indebtedness that may be incurred thereunder; provided
that any such amendment, supplement, modification, refinancing, consolidating
or restructuring of Indebtedness under such agreement or successor replacement
agreement may only provide for the making of revolving loans and/or issuance of
letters of credit.

 

“Currency Agreement” means any foreign
exchange contract, currency swap agreement or other similar agreement with
respect to currency values.

 

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

 

“Definitive
Note” means a certificated Note registered in the name of the Holder
thereof and issued in accordance with Section 2.6 hereof,
substantially in the form of Exhibit A hereto except that such Note
shall not bear the Global Note Legend and shall not have the “Schedule of
Exchanges of Interests in the Global Note” attached thereto.

 

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

 

“Disqualified Stock” means, with respect to
any Person, any Capital Stock that by its terms (or by the terms of any
security into which it is convertible or for which it is exchangeable at the
option of holder) or upon the happening of any event:  (1) matures or is mandatorily redeemable
(other than redeemable only for Capital Stock of such Person which is not
itself Disqualified Stock) pursuant to a sinking fund obligation or otherwise; (2) is
convertible or exchangeable at the option of the holder for Indebtedness or
Disqualified Stock; or (3) is mandatorily redeemable or must be purchased
upon the occurrence of any event, in whole or in part, in each case on or prior
to the first anniversary of the Stated Maturity of the Notes; provided, however, that
any Capital Stock that would not constitute Disqualified Stock but for
provisions thereof giving holders thereof the right to require such Person to
purchase or redeem

 

9

 

such Capital Stock upon the occurrence of an “asset
sale” or “change of control” occurring prior to the first anniversary of the
Stated Maturity of the Notes shall not constitute Disqualified Stock if:

 

(1)           the
“asset sale” or “change of control” provisions applicable to such Capital Stock
are not more favorable to the holders of such Capital Stock than the terms
applicable to the Notes and described under Sections 3.7 and 3.9
hereof; and

 

(2)           any
such requirement only becomes operative after compliance with such terms
applicable to the Notes including the purchase of any Notes tendered pursuant
thereto.

 

“EBITDA” with respect to any Person (the “Specified
Person”) for any period means the sum of Consolidated Net Income of the
Specified Person, plus the following to the extent deducted in calculating such
Consolidated Net Income:

 

(1)           all
income tax expense of the Specified Person and its consolidated Restricted
Subsidiaries;

 

(2)           Consolidated
Interest Expense;

 

(3)           depreciation
and amortization expense of the Specified Person and its consolidated
Restricted Subsidiaries (excluding amortization expense attributable to a
prepaid operating activity item that was paid in cash in a prior period);

 

(4)           unrealized
non-cash gains or losses or non-cash charges in respect of Hedging Obligations
required to be taken under GAAP;

 

(5)           unrealized
foreign currency translation gains or losses;

 

(6)           all
other non-cash charges (including any goodwill impairment charges) of the
Specified Person and its consolidated Restricted Subsidiaries (excluding any
such non-cash charge to the extent that it represents an accrual of or reserve
for cash expenditures in any future period),

 

in each case for such period. Notwithstanding
the foregoing, the provision for taxes based on the income or profits of, and
the depreciation and amortization and non-cash charges of, a Restricted
Subsidiary of the Specified Person shall be added to Consolidated Net Income to
compute EBITDA only to the extent (and in the same proportion, including by
reason of minority interests) that the net income or loss of such Restricted
Subsidiary was included in calculating Consolidated Net Income in accordance
with the definition of Consolidated Net Income

 

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

 

“Exchange Notes” means the debt securities of
the Company issued in the Exchange Offer pursuant to Section 2.6(i) hereof
in exchange for, and in an aggregate principal amount equal to, the Notes, in
compliance with the terms of the Registration Rights Agreement.

 

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

 

10

 

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

 

“Excluded Property” shall have the meaning
set forth in Section 2.1 of the Security Agreement.

 

“Fair Market Value” means, with respect to
any asset, the price (after taking into account any liabilities relating to
such asset) that would be negotiated in an arm’s-length transaction for cash between
a willing seller and a willing and able buyer, neither of which is under any
compulsion to complete the transaction, as such price is determined in good
faith by management of the Company or by the Board of Directors of the Company
or a duly authorized committee thereof. 
Fair Market Value (other than of any asset with a public trading market)
in excess of $5.0 million shall be determined by the Board of Directors of
the Company acting reasonably and in good faith and shall be evidenced by a
Board Resolution delivered to the Trustee.

 

“First Lien Intercreditor Agreement” means,
that certain Intercreditor Agreement, dated as of the Issue Date, among the
Trustee, the Collateral Agent and the collateral agent under the Credit
Agreement.

 

“First Lien Leverage Ratio” means at the date
of calculation, the ratio of (a) all Indebtedness of the Company and its
Restricted Subsidiaries that is secured by a Lien on any assets of the Company
and its Restricted Subsidiaries (other than Junior Lien Obligations) on such
date on a consolidated basis in accordance with GAAP to (b) EBITDA of the
Company and its Restricted Subsidiaries for the period of the most recent four
consecutive fiscal quarters ending on or prior to such date of determination
for which internal financial statements are available. For purposes of making
the computation referred to above, EBITDA shall be calculated on a pro forma
basis in accordance with the definition of “Consolidated Coverage Ratio.”

 

“Foreign Subsidiary” means any Restricted
Subsidiary of the Company that is not organized under the laws of the United
States of America or any State thereof or the District of Columbia.

 

“GAAP” means
generally accepted accounting principles in the United States of America as in
effect as of the Issue Date, including those set forth in:

 

(1)           the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants;

 

(2)           statements
and pronouncements of the Financial Accounting Standards Board;

 

(3)           such
other statements by such other entity as approved by a significant segment of
the accounting profession; and

 

(4)           the
rules and regulations of the SEC governing the inclusion of financial statements
(including pro forma financial statements) in periodic reports required to be
filed pursuant to Section 13 of the Exchange Act, including opinions and
pronouncements in staff accounting bulletins and similar written statements
from the accounting staff of the SEC.

 

“Global Note Legend” means the legend set
forth in Section 2.1(b) hereof, which is required to be placed
on all Global Notes issued under this Indenture.

 

11

 

“Global Notes” means, individually and
collectively, each of the Restricted Global Notes and the Unrestricted Global
Notes, substantially in the form of Exhibit A hereto issued in accordance
with Section 2.1 or 2.6 hereof.

 

“Guarantee” means any obligation, contingent
or otherwise, of any Person, directly or indirectly, guaranteeing any
Indebtedness of any Person and any obligation, direct or indirect, contingent
or otherwise, of such Person:

 

(1)           to
purchase or pay (or advance or supply funds for the purchase or payment of)
such Indebtedness of such Person (whether arising by virtue of partnership
arrangements, or by agreements to keep-well, to purchase assets, goods,
securities or services, to take-or-pay, or to maintain financial statement
conditions or otherwise); or

 

(2)           entered
into for the purpose of assuring in any other manner the obligee of such
Indebtedness of the payment thereof or to protect such obligee against loss in
respect thereof (in whole or in part); provided, however, that the term “Guarantee” shall not include
endorsements for collection or deposit in the ordinary course of business.  The term “Guarantee” used as a verb has a
corresponding meaning.

 

“Guarantors” means each of Parent and the
Subsidiary Guarantors.

 

“Guaranty Agreement” means a supplemental
indenture, in a form satisfactory to the Trustee, pursuant to which a
Subsidiary Guarantor guarantees the Company’s obligations with respect to the
Notes on the terms provided for in this Indenture.

 

“Hedging Obligations” of any Person means the
obligations of such Person pursuant to any Interest Rate Agreement, Currency
Agreement, Commodity Agreement or derivative contract entered into to hedge
weather exposure.

 

“Holder” or “Noteholder” means the
Person in whose name a Note is registered on the Registrar’s books.

 

“Incur” means issue, assume, Guarantee, incur
or otherwise become liable for; provided, however, that any Indebtedness or Capital Stock of a Person
existing at the time such Person becomes a Restricted Subsidiary of the Company
(whether by merger, consolidation, acquisition or otherwise) shall be deemed to
be Incurred by such Person at the time it becomes a Restricted Subsidiary of the
Company. The term “Incurrence” when used as a noun shall have a
correlative meaning.  Solely for purposes
of determining compliance with Section 3.3 hereof:

 

(1)           amortization
of debt discount or the accretion of principal with respect to a non-interest bearing
or other discount security;

 

(2)           the
payment of regularly scheduled interest in the form of additional Indebtedness
of the same instrument or the payment of regularly scheduled dividends on
Capital Stock in the form of additional Capital Stock of the same class and
with the same terms;

 

(3)           the
obligation to pay a premium in respect of Indebtedness arising in connection
with the issuance of a notice of redemption or making of a mandatory offer to
purchase such Indebtedness; and

 

12

 

(4)           unrealized
losses or charges in respect of Hedging Obligations

 

shall be deemed not to be the Incurrences of
Indebtedness.

 

“Indebtedness” means,
with respect to any Person on any date of determination (without duplication):

 

(1)           the
principal in respect of (A) indebtedness of such Person for money borrowed
and (B) indebtedness evidenced by notes, debentures, bonds or other
similar instruments for the payment of which such Person is responsible or
liable, including, in each case, any premium on such indebtedness to the extent
such premium has become due and payable;

 

(2)           all
Capital Lease Obligations of such Person and all Attributable Debt in respect
of Sale/Leaseback Transactions entered into by such Person;

 

(3)           all
obligations of such Person issued or assumed as the deferred purchase price of
property, all conditional sale obligations of such Person and all obligations
of such Person under any title retention agreement (but excluding trade
accounts payable arising in the ordinary course of business);

 

(4)           all
obligations of such Person for the reimbursement of any obligor on any letter
of credit, bankers’ acceptance or similar credit transaction (other than
obligations with respect to letters of credit securing obligations (other than
obligations described in clauses (1) through (3) above) entered
into in the ordinary course of business of such Person to the extent such
letters of credit are not drawn upon or, if and to the extent drawn upon, such
drawing is reimbursed no later than the tenth Business Day following payment on
the letter of credit);

 

(5)           the
amount of all obligations of such Person with respect to the redemption, repayment
or other repurchase of any Disqualified Stock of such Person or any Preferred
Stock of a Subsidiary of such Person, with the amount of Indebtedness
represented by such Disqualified Stock or Preferred Stock, as applicable, being
equal to the greatest of (A) its voluntary liquidation preference, (B) its
involuntary liquidation preference and (C) its maximum fixed repurchase
price, but excluding, in each case, accrued and unpaid dividends, if any;

 

(6)           all
obligations of the type referred to in clauses (1) through (5) of
other Persons and all dividends of other Persons for the payment of which, in
either case, such Person is responsible or liable, directly or indirectly, as
obligor, guarantor or otherwise, including by means of any Guarantee;

 

(7)           all
obligations of the type referred to in clauses (1) through (6) of
other Persons secured by any Lien on any property or asset of such Person
(whether or not such obligation is assumed by such Person), the amount of such
obligation being deemed to be the lesser of the value of such property or
assets and the amount of the obligation so secured; and

 

(8)           to
the extent not otherwise included in this definition, Hedging Obligations of
such Person.

 

Notwithstanding the foregoing, in connection with
the purchase by the Company or any Restricted Subsidiary of the Company of any
business, the term “Indebtedness” shall exclude 

 

13

 

(x) customary indemnification
obligations and (y) post-closing payment adjustments to which the seller
may become entitled to the extent such payment is determined by a final closing
balance sheet or such payment depends on the performance of such business after
the closing; provided, however,
that, at the time of closing, the amount of any such payment is not
determinable and, to the extent such payment thereafter becomes fixed and determined,
the amount is paid within 60 days thereafter.

 

The amount of Indebtedness of any Person at any date
shall be the outstanding balance at such date of all unconditional obligations
as described above and the maximum liability, upon the occurrence of the
contingency giving rise to the obligation, of any contingent obligations at
such date; provided, however,
that in the case of Indebtedness sold at a discount, the amount of such
Indebtedness at any time shall be the accreted value thereof at such time.

 

The amount of any Disqualified Stock or Preferred
Stock that does not have a fixed redemption, repayment or repurchase price
shall be calculated in accordance with the terms of such Disqualified Stock or
Preferred Stock as if such Disqualified Stock or Preferred Stock were redeemed,
repaid or repurchased on any date on which the amount of such Disqualified
Stock or Preferred Stock is to be determined pursuant to this Indenture; provided, however, that
if such Disqualified Stock or Preferred Stock could not be required to be
redeemed, repaid or repurchased at the time of such determination, the
redemption, repayment or repurchase price shall be the book value of such
Disqualified Stock or Preferred Stock as reflected on the most recent financial
statements of such Person.

 

“Indenture” has the meaning set forth in the
preamble hereto.

 

“Independent Qualified Party” means an
investment banking firm, accounting firm or appraisal firm of national
standing; provided, however,
that such firm is not an Affiliate of the Company.

 

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

 

“Initial Notes” means the $300,000,000 in
aggregate principal amount of 11.25% Senior Secured Notes due 2015 of the
Company issued under this Indenture on the Issue Date.

 

“Initial Purchasers” means, with respect to
the Initial Notes, J.P. Morgan Securities Inc., Broadpoint Capital, Inc.,
Wells Fargo Securities, LLC and Oppenheimer & Co. Inc.

 

“Interest Payment Date” means March 15
and September 15 of each year, commencing, in the case of the Initial
Notes, on September 15, 2010 and ending at the Stated Maturity of the
Notes.

 

“Interest Rate Agreement” means any interest
rate swap agreement, interest rate cap agreement or other financial agreement
or arrangement with respect to exposure to interest rates.

 

“Investment” in any Person means any direct
or indirect advance, loan (other than advances to customers in the ordinary
course of business that are recorded as accounts receivable on the balance
sheet of the lender) or other extensions of credit (including by way of
Guarantee or similar arrangement) or capital contribution to (by means of any
transfer of cash or other property to others or any payment for property or
services for the account or use of others), or any purchase or acquisition of
Capital Stock, Indebtedness or other similar instruments issued by such
Person.  Except as otherwise provided for
herein, the amount of an Investment shall be its fair value at the time the Investment
is made and without giving effect to subsequent changes in value.

 

14

 

For purposes of the
definition of “Unrestricted Subsidiary,” the definition of “Restricted Payment”
and Section 3.4:

 

(1)           “Investment”
shall include the portion (proportionate to the Company’s equity interest in
such Subsidiary) of the Fair Market Value of the net assets of any 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 equal to an amount (if positive) equal to (A) the
Company’s “Investment” in such Subsidiary at the time of such redesignation
less (B) 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

 

(2)           any
property transferred to or from an Unrestricted Subsidiary shall be valued at
its Fair Market Value at the time of such transfer.

 

“Issue Date” means March 15, 2010, the
date on which the Initial Notes are originally issued.

 

“Junior Lien Intercreditor Agreement” means
that certain Intercreditor Agreement, dated as of the Issue Date, among the
Trustee, the Collateral Agent, the collateral agent under the Credit Agreement
and the trustee and collateral agent with respect to the Second Lien Notes and
the trustee and collateral agent with respect to any other Junior Lien Obligations.

 

“Junior Lien Obligations” means (i) any
Indebtedness Incurred pursuant to Section 3.3(b)(xv) hereof
(including, without limiation, the Second Lien Notes) and any Refinancing
Indebtedness in respect thereof, in each case, which is by its terms intended
to be secured by the Collateral on a basis junior to the Liens securing the
Notes and (ii) other Indebtedness permitted to be incurred under Section 3.3(a) hereof
and under the Credit Agreement which is by its terms intended to be secured by
the Collateral on a basis junior to the Liens securing the Notes; provided such Lien is permitted to be
incurred under this Indenture and the Credit Agreement and, in the case of
clause (ii) only, such Indebtedness has a Stated Maturity after the
Stated Maturity of the Notes.

 

“Legal Holiday” means a Saturday, a Sunday or
a day on which banking institutions are not required to be open in the State of
New York.

 

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

 

“Lien” means, with respect to any property or
assets of any Person, any mortgage or deed of trust, pledge, hypothecation,
assignment, deposit arrangement, security interest, lien, charge, easement,
encumbrance, preference, priority or other security agreement or preferential
arrangement of any kind or nature whatsoever on or with respect to such
property or assets, including any Capital Lease Obligation, conditional sale or
other title retention agreement having substantially the same economic effect
as any of the foregoing.

 

“Material Real Property” means owned real
properties owned by Parent, the Company and the Subsidiary Guarantors with a
cost or book value (whichever is greater) in excess of $1.5 million.

 

15

 

“Mortgage” means an
agreement, including, but not limited to, a mortgage, deed of trust or other
document, creating and evidencing a Lien on Mortgaged Property, which shall be
substantially in the form of Exhibit D, in each case, with such
schedules and including such provisions as shall be necessary to conform such
documents to applicable local or foreign law or as shall be customary under
applicable local or foreign law.

 

“Mortgaged Property”
means (i) each real property designated as “Mortgaged Property” on Annex A
to Schedule 2 to each of the Purchase Agreements and (ii) each real
property encumbered by a Mortgage delivered after the date hereof, if any,
pursuant to Sections 3.15 and 11.2.

 

“Net Available Cash” from an Asset
Disposition means cash payments received therefrom (including any cash payments
received by way of deferred payment of principal pursuant to a note or
installment receivable or otherwise and proceeds from the sale or other
disposition of any securities received as consideration, but only as and when
received, but excluding any other consideration received in the form of
assumption by the acquiring Person of Indebtedness or other obligations
relating to such properties or assets or received in any other non-cash form),
in each case net of (1) all legal, title and recording tax expenses,
commissions and other fees and expenses incurred, and all Federal, state, provincial,
foreign and local taxes required to be paid or accrued as a liability under
GAAP, as a consequence of such Asset Disposition, (2) all payments made on
any Indebtedness (other than Pari Passu Lien Indebtedness and Junior Lien
Obligations) that is secured by any assets subject to such Asset Disposition,
in accordance with the terms of any Lien upon or other security agreement of
any kind with respect to such assets, or that must by its terms, or in order to
obtain a necessary consent to such Asset Disposition, or by applicable law be
repaid out of the proceeds from such Asset Disposition, (3) all
distributions and other payments required to be made to minority interest
holders in Restricted Subsidiaries of the Company as a result of such Asset
Disposition, (4) the deduction of appropriate amounts provided by the
seller as a reserve, in accordance with GAAP, against any liabilities
associated with the property or other assets disposed in such Asset Disposition
and retained by the Company or any Restricted Subsidiary of the Company after
such Asset Disposition and (5) any portion of the purchase price from an
Asset Disposition placed in escrow, whether as a reserve for adjustment of the
purchase price, for satisfaction of indemnities in respect of such Asset
Disposition or otherwise in connection with that Asset Disposition; provided, however, that
upon the termination of that escrow, Net Available Cash shall be increased by
any portion of funds in escrow that are released to the Company or any
Restricted Subsidiary of the Company.

 

“Net Cash Proceeds,” with respect to any
issuance or sale of Capital Stock or Indebtedness, means the cash proceeds of
such issuance or sale, net of attorneys’ fees, accountants’ fees, underwriters’
or placement agents’ fees, discounts or commissions and brokerage, consultant
and other fees actually incurred in connection with such issuance or sale and
net of taxes paid or payable as a result thereof.

 

“Non-Guarantor Subsidiary” means any
Restricted Subsidiary that is not a Subsidiary Guarantor.

 

“Non-Recourse Securitization Entity Indebtedness”
has the meaning set forth in the definition of “Securitization Entity.”

 

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

 

“Notes” means the Initial Notes, the Exchange
Notes and any Additional Notes, treated as a single class of securities.

 

16

 

“Notes Custodian” means the custodian with
respect to the Global Note (as appointed by the Depositary), or any successor
Person thereto and shall initially be the Trustee.

 

“Notes First Lien Percentage” means, at any
time for purposes of Section 3.7, a fraction (expressed as a
percentage), the numerator of which is the outstanding principal amount of the
Notes at such time and the denominator of which is the outstanding principal
amount of all outstanding Pari Passu Lien Indebtedness (including the Notes) at
such time requiring a prepayment from a specified Asset Disposition.

 

“Obligations” means, with respect to any
Indebtedness, all obligations for principal, premium, interest (including any
interest accruing subsequent to the filing of a petition in bankruptcy, reorganization
or similar proceeding at the rate provided for in the documentation with
respect thereto, whether or not such interest is an allowed claim under
applicable state, federal or foreign law), penalties, fees, indemnifications,
reimbursements (including in respect of letters of credit), and other amounts
payable pursuant to the documentation governing such Indebtedness.

 

“Offering Memorandum” means the confidential
Offering Memorandum dated February 26, 2010, as supplemented by that
certain offering memorandum supplement dated March 3, 2010, used in
connection with the offering of the Initial Notes to be issued on the Issue
Date.

 

“Officer” means the Chairman of the Board,
the President, or any Vice President, the Treasurer or the Secretary of the
Company.

 

“Officers’ Certificate” means a certificate
signed by two Officers.

 

“Opinion of Counsel” means a written opinion
from legal counsel who is acceptable to the Trustee.  The counsel may be an employee of or counsel
to the Company or the Trustee.

 

“Parent” means Reddy Ice Holdings, Inc.,
a Delaware corporation.

 

“Parent Board” means the Board of Directors
of Parent or any committee thereof duly authorized to act on behalf of such
Board.

 

“Parent Guaranty” means the Guarantee by
Parent of the Company’s obligations with respect to the Notes.

 

“Pari Passu Lien Indebtedness” means (i) the
Notes and (ii) Additional Pari Passu Lien Indebtedness; provided that such Lien is permitted to be incurred under
this Indenture and the Credit Agreement and, in the case of clause (ii) only,
such Indebtedness has a Stated Maturity that is no earlier than the Stated
Maturity of the Notes.

 

“Participant” means, with respect to the
Depositary, a Person who has an account with the Depositary.

 

17

 

“Permitted Investment”
means an Investment by the Company or any Restricted Subsidiary of the Company
in:

 

(1)           the
Company, a Restricted Subsidiary of the Company or a Person that shall, upon
the making of such Investment, become a Restricted Subsidiary of the Company; provided, however, that
the primary business of such Restricted Subsidiary is a Related Business;

 

(2)           another
Person if, as a result of such Investment, such other Person is merged or consolidated
with or into, or transfers or conveys all or substantially all its assets to,
the Company or a Restricted Subsidiary of the Company; provided,
however, that such Person’s primary business
is a Related Business;

 

(3)           cash
and Temporary Cash Investments;

 

(4)           receivables
owing to the Company or any Restricted Subsidiary of the Company if created or
acquired in the ordinary course of business and payable or dischargeable in
accordance with customary trade terms; provided, however, that such trade terms may include such
concessionary trade terms as the Company or any such Restricted Subsidiary
deems reasonable under the circumstances;

 

(5)           payroll,
travel and similar advances to cover matters that are expected at the time of
such advances ultimately to be treated as expenses for accounting purposes and
that are made in the ordinary course of business;

 

(6)           loans
or advances to employees made in the ordinary course of business of the Company
or such Restricted Subsidiary;

 

(7)           stock,
obligations or securities received in settlement of debts created in the ordinary
course of business and owing to the Company or any Restricted Subsidiary of the
Company or in satisfaction of judgments;

 

(8)           any
Person to the extent such Investment represents the non-cash portion of the
consideration received for (i) an Asset Disposition as permitted pursuant
to Section 3.7 or (ii) a disposition of any assets not
constituting an Asset Disposition;

 

(9)           any
Person where such Investment was acquired by the Company or any of its Restricted
Subsidiaries (a) in exchange for any other Investment or accounts
receivable held by the Company or any such Restricted Subsidiary in connection
with or as a result of a bankruptcy, workout, reorganization or
recapitalization of the issuer of such other Investment or accounts receivable
or (b) as a result of a foreclosure by the Company or any of its
Restricted Subsidiaries with respect to any secured Investment or other
transfer of title with respect to any secured Investment in default;

 

(10)         any
Person to the extent such Investments consist of prepaid expenses, negotiable
instruments held for collection and lease, utility and workers’ compensation,
performance and other similar deposits made in the ordinary course of business
by the Company or any Restricted Subsidiary;

 

18

 

(11)         any
Person to the extent such Investments consist of Hedging Obligations otherwise
permitted pursuant to Section 3.3 hereof;

 

(12)         any
Person existing on the Issue Date, and any extension, modification or renewal
of any such Investments existing on the Issue Date, but only to the extent not
involving additional advances, contributions or other Investments of cash or
other assets or other increases thereof (other than as a result of the accrual
or accretion of interest or original issue discount or the issuance of
pay-in-kind securities, in each case, pursuant to the terms of such Investment
as in effect on the Issue Date);

 

(13)         Investments
by the Company in a Securitization Entity or any Investment by a Securitization
Entity in any other Person in connection with a Qualified Securitization Transaction
which Investments consist of the transfer of receivables, equipment and related
assets; provided, however,
that any Investment in a Securitization Entity is in the form of (a) a
Purchase Money Note, (b) an equity interest, (c) obligations of the
Securitization Entity to pay the purchase price for assets transferred to it or
(d) interests in either (x) equipment owned by the Company or a
Restricted Subsidiary of the Company or (y) accounts receivable generated
by the Company or a Restricted Subsidiary of the Company and, in each case,
transferred to such Securitization Entity or other Person in connection with a
Qualified Securitization Transaction; and

 

(14)         Persons
to the extent such Investments, when taken together with all other Investments
made pursuant to this clause (14) outstanding on the date such Investment
is made, do not exceed $25.0 million; provided that no Investments made
pursuant to this clause (14) may be used to directly or indirectly purchase,
repurchase, redeem, defease or otherwise acquire or retire for value (x) any
Indebtedness or equity of any Affiliate of the Company or (y) any (i) Subordinated
Obligations, (ii) unsecured Indebtedness of the Company or a Restricted
Subsidiary or (iii) Junior Lien Obligations.

 

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

 

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

 

(2)           Liens
in favor of carriers, warehousemen, mechanics, suppliers, repairmen, materialmen
and landlords and other similar Liens imposed by law, in each case for sums not
overdue or being contested in good faith by appropriate proceedings or other Liens
arising out of judgments or awards against such Person with respect to which
such Person shall then be proceeding with an appeal or other proceedings for
review and Liens arising solely by virtue of any statutory or common law
provision relating to banker’s Liens, rights of set-off or similar rights and
remedies as to deposit accounts or other funds maintained with a creditor
depository institution; provided, however, that (A) such deposit account is not a
dedicated cash collateral account and is not subject to restrictions against
access by the Company in excess of those set forth by regulations promulgated
by the Federal Reserve Board and (B) such deposit account is not intended
by the Company to provide collateral to the depository institution;

 

19

 

(3)           Liens
for taxes not yet subject to penalties for non-payment or which are being
contested in good faith by appropriate proceedings;

 

(4)           Liens
in favor of issuers of surety bonds or letters of credit issued pursuant to the
request of and for the account of such Person in the ordinary course of its
business; provided, however,
that such letters of credit do not constitute Indebtedness;

 

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

 

(6)           Liens
securing Indebtedness Incurred to finance the construction, purchase or lease
of, or repairs, improvements or additions to, property, plant or equipment of
such Person; provided, however,
that the Lien may not extend to any other property owned by such Person or any
of its Restricted Subsidiaries at the time the Lien is Incurred (other than
assets and property affixed or appurtenant thereto or proceeds or distributions
thereof), and the Indebtedness (other than any interest thereon) secured by the
Lien may not be Incurred more than 180 days after the later of the
acquisition, completion of construction, repair, improvement, addition or
commencement of full operation of the property subject to the Lien;

 

(7)           (i) Liens
on the Collateral securing Indebtedness Incurred pursuant to Section 3.3(b)(iv) and
(ii) other Liens on the Collateral securing Additional Pari Passu Lien
Indebtedness; provided that the
First Lien Leverage Ratio, after giving effect to the incurrence of such Additional
Pari Passu Lien Indebtedness and Liens, shall not exceed 3.50 to 1.0; provided further that an authorized
representative of the holders of such Indebtedness shall have executed a
joinder to the First Lien Intercreditor Agreement in the form provided therein;

 

(8)           Liens
existing on the Issue Date other than Liens securing the Notes and the Priority
Payment Lien Obligations;

 

(9)           Liens
on property or shares of Capital Stock of another Person at the time such other
Person becomes a Subsidiary of such Person; provided, however, that the Liens may not extend to any other property
owned by such Person or any of its Restricted Subsidiaries (other than assets
and property affixed or appurtenant thereto or proceeds or distributions
thereof);

 

(10)         Liens
on property at the time such Person or any of its Subsidiaries acquires the
property, including any acquisition by means of a merger or consolidation with
or into such Person or a Subsidiary of such Person; provided,
however, that the Liens may not extend
to any other property owned by such Person or any of its Restricted
Subsidiaries (other than assets and property affixed or appurtenant thereto or
proceeds or distributions thereof);

 

(11)         Liens
securing Indebtedness or other obligations of a Subsidiary of such Person owing
to such Person or a Restricted Subsidiary of such Person;

 

20

 

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

 

(13)         Liens
to secure any Refinancing (or successive Refinancings) as a whole, or in part,
of any Indebtedness secured by any Lien referred to in the foregoing clause (6),
(8), (9) or (10); provided, however, that:

 

(A)          such
new Lien shall be limited to all or part of the same property and assets that
secured or, under the written agreements pursuant to which the original Lien
arose, could secure the original Lien (plus improvements and accessions to,
such property or proceeds or distributions thereof); and

 

(B)           the
Indebtedness secured by such Lien at such time is not increased to any amount
greater than the sum of (x) the outstanding principal amount or, if greater,
committed amount of the Indebtedness described under clause (6), (8), (9) or
(10) at the time the original Lien became a Permitted Lien and (y) an
amount necessary to pay any fees and expenses, including premiums, related to
such refinancing, refunding, extension, renewal or replacement;

 

(14)         Liens
arising under this Indenture in favor of the Trustee for its own benefit and
similar Liens in favor of other trustees, agents and representatives arising
under instruments governing Indebtedness permitted to be Incurred under this
Indenture; provided that such Liens are solely for
the benefit of the trustees, agents or representatives in their capacities as
such and not for the benefit of the holders of such Indebtedness;

 

(15)         Liens
securing Priority Payment Lien Obligations; provided that
an authorized representative of the holders of such Indebtedness shall be party
to a joinder to the First Lien Intercreditor Agreement;

 

(16)         Liens
on the Collateral securing Junior Lien Obligations; provided that an authorized representative of the holders of
such Indebtedness shall have executed a joinder to the Junior Lien
Intercreditor Agreement in the form provided therein;

 

(17)         Liens
on cash securing reimbursement obligations under letters of credit in aggregate
amount no to exceed $15.0 million;

 

(18)         Liens
securing Hedging Obligations otherwise permitted to be Incurred under this
Indenture in an aggregate amount not to exceed $5.0 million; and

 

(19)         other
Liens not to exceed $10.0 million outstanding at any time.

 

For purposes of this definition, the term “Indebtedness”
shall be deemed to include interest on such Indebtedness.

 

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

 

21

 

“Preferred Stock,” as applied to the Capital
Stock of any Person, means Capital Stock of any class or classes (however
designated) that is preferred as to the payment of dividends or distributions,
or as to the distribution of assets upon any voluntary or involuntary
liquidation or dissolution of such Person, over shares of Capital Stock of any
other class of such Person.

 

“principal” of a Note means the principal of
such Note, plus the premium, if any, payable on the Note which is due or
overdue or is to become due at the relevant time.

 

“Priority Payment Lien Obligations” means any
Indebtedness Incurred pursuant to Section 3.3(b)(i); provided that Hedging Obligations Incurred
under such Section 3.3(b)(i) and secured pursuant to clause (18)
of the definition of “Permitted Liens” that are cash collateralized shall not
constitute Priority Payment Lien Obligations.

 

“Private Placement Legend” means the legend
set forth in Section 2.1(c) to be placed on all Notes issued
under this Indenture except where otherwise permitted by the provisions hereof.

 

“Public Equity Offering” means an
underwritten public offering of common stock of the Company or Parent (so long
as Parent makes a capital contribution to the Company with the net proceeds
thereof) pursuant to an effective registration statement under the Securities
Act.

 

“Purchase Agreements” means the Purchase
Agreement, dated February 26, 2010 and the Purchase Agreement, dated March 3,
2010, among the Company, Parent and the Initial Purchasers.

 

“Purchase Money Note” means a promissory note
of a Securitization Entity evidencing a line of credit, which may be irrevocable,
from the Company or any Subsidiary of the Company in connection with a
Qualified Securitization Transaction to a Securitization Entity, which note
shall be repaid from cash available to the Securitization Entity, other than
amounts required to be established as reserves pursuant to agreements, amounts
paid to investors in respect of interest, principal and other amounts paid in
connection with the purchase of newly generated receivables or newly acquired
equipment.

 

“QIB” means any “qualified institutional
buyer” (as defined in Rule 144A).

 

“Qualified Equity Offering” means a public or
private offering of Capital Stock (other than Disqualified Stock) of the
Company or Parent (to the extent the net proceeds are contributed to the
Company).

 

“Qualified Securitization Transaction” means
any transaction or series of transactions that may be entered into by the
Company or any of its Subsidiaries pursuant to which the Company or any of its
Subsidiaries may sell, convey or otherwise transfer to (1) a Securitization
Entity, in the case of a transfer by the Company or any of its Subsidiaries,
and (2) any other Person, in the case of a transfer by a Securitization
Entity, or may grant a security interest in, any accounts receivable or
equipment, whether now existing or arising or acquired in the future, of the
Company or any of its Subsidiaries, and any assets related thereto, including
all collateral securing such accounts receivable and equipment, all contracts
and contract rights and all guarantees or other obligations in respect of such
accounts receivable and equipment, proceeds of such accounts receivable and
equipment and other assets, including contract rights, that are customarily
transferred or in respect of which security interests are customarily granted
in connection with asset securitization transactions involving accounts
receivable and equipment.

 

22

 

“Record Date” for the interest payable on any
applicable Interest Payment Date means March 1 and September 1
(whether or not a Business Day) next preceding such Interest Payment Date.

 

“Refinance” means, in respect of any
Indebtedness, to refinance, extend, renew, refund, repay, prepay, redeem,
purchase, defease or retire, or to issue other Indebtedness in exchange or
replacement for, such Indebtedness.  “Refinanced”
and “Refinancing” shall have correlative meanings.

 

“Refinancing Indebtedness” means Indebtedness
that Refinances any Indebtedness of the Company or any Restricted Subsidiary of
the Company existing on the Issue Date or Incurred in compliance with this
Indenture, including Indebtedness that Refinances Refinancing Indebtedness; provided, however, that:

 

(1)           such
Refinancing Indebtedness has a Stated Maturity no earlier than the Stated
Maturity of the Indebtedness being Refinanced;

 

(2)           such
Refinancing Indebtedness has an Average Life at the time such Refinancing
Indebtedness is Incurred that is equal to or greater than the Average Life of
the Indebtedness being Refinanced;

 

(3)           such
Refinancing Indebtedness has an aggregate principal amount (or if Incurred with
original issue discount, an aggregate issue price) that is equal to or less
than the aggregate principal amount (or if Incurred with original issue
discount, the aggregate accreted value) then outstanding or committed (plus
fees and expenses, including any premium and defeasance costs) under the
Indebtedness being Refinanced; and

 

(4)           if
the Indebtedness being Refinanced is subordinated in right of payment to the
Notes, such Refinancing Indebtedness is subordinated in right of payment to the
Notes at least to the same extent as the Indebtedness being Refinanced;

 

provided further, however, that Refinancing Indebtedness shall not include (A) Indebtedness
of a Subsidiary that Refinances Indebtedness of the Company, (B) Indebtedness
of the Company or a Restricted Subsidiary of the Company that Refinances Indebtedness
of an Unrestricted Subsidiary or (C) Indebtedness under any Credit
Agreement.

 

“Registration Rights Agreement” means (1) in
the case of the Initial Notes, the registration rights agreement dated the
Issue Date, among Parent, the Company and the Initial Purchasers, entered into
in connection with the Initial Notes and (2) in the case of any Additional
Notes, any registration rights agreement with respect to such Additional Notes
entered into in connection with the initial issuance thereof.

 

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

 

“Regulation S Global Note” means a Global
Note bearing the Private Placement Legend and deposited with or on behalf of
the Depositary and registered in the name of the Depositary or its nominee,
issued in an initial denomination equal to the outstanding principal amount of
the Notes initially sold in reliance on Rule 903.

 

“Related Business” means any business in
which the Company or any of its Subsidiaries was engaged on the Issue Date and
any business related, ancillary or complementary to any business of 

 

23

 

the Company in which the Company or any of
its Subsidiaries was engaged on the Issue Date or any reasonable extension,
development or expansion of the business of the Company or its Restricted
Subsidiaries.

 

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

 

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

 

“Restricted Payment”
with respect to any Person means:

 

(1)           the
declaration or payment of any dividends or any other distributions of any sort
in respect of its Capital Stock (including any payment in connection with any
merger or consolidation involving such Person) or similar payment to the direct
or indirect holders of its Capital Stock (other than (A) dividends or
distributions payable solely in its Capital Stock (other than Disqualified
Stock), (B) dividends or distributions payable solely to the Company or a
Restricted Subsidiary of the Company and (C) pro rata dividends or other
distributions made by a Subsidiary that is not a Wholly Owned Subsidiary to
minority stockholders (or owners of an equivalent interest in the case of a
Subsidiary that is an entity other than a corporation));

 

(2)           the
purchase, redemption or other acquisition or retirement for value of any Capital
Stock of the Company held by any Person (other than a Restricted Subsidiary of
the Company) or of any Capital Stock of a Restricted Subsidiary of the Company
held by any Affiliate of the Company (other than the Company or a Restricted
Subsidiary of the Company), including in connection with any merger or
consolidation and including the exercise of any option to exchange any Capital
Stock (other than into Capital Stock of the Company that is not Disqualified
Stock);

 

(3)           the
purchase, repurchase, redemption, defeasance or other acquisition or retirement
for value of any (i) Subordinated Obligations, (ii) unsecured
Indebtedness and (iii) Junior Lien Obligations (other than from the
Company or a Restricted Subsidiary of the Company);

 

(4)           the
making of any Investment (other than a Permitted Investment) in any Person; and

 

(5)           any
payment in connection with any plea, judgment, settlement, penalty or fine
arising from or related to lawsuits, government proceedings or regulatory
actions or investigations in connection with matters relating to the pending
Department of Justice investigation of Parent and its subsidiaries and the
litigation related thereto.

 

“Restricted Period” means, in relation to the
Initial Notes, the 40 consecutive days beginning on and including the later of (A) the
day on which the Initial Notes are offered to persons other than distributors
(as defined in Regulation S under the Securities Act) and (B) the Issue
Date; and, in relation to any Additional Notes that bear the Private Placement
Legend, it means the comparable period of 40 consecutive days.

 

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

 

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

 

24

 

“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.

 

“Sale/Leaseback Transaction” means an
arrangement relating to property owned by the Company or a Restricted
Subsidiary of the Company on the Issue Date or thereafter acquired by the
Company or a Restricted Subsidiary of the Company whereby the Company or a
Restricted Subsidiary of the Company transfers such property to a Person and
the Company or a Restricted Subsidiary of the Company leases it from such
Person.

 

“SEC” means the United States Securities and
Exchange Commission.

 

“Second Lien Notes” means those notes issued
by the Company on the Issue Date or any subsequent settlement thereafter in the
Parent Exchange Offer (as defined below in the definition of “Transactions”)
and any Refinancing Indebtedness Incurred to Refinance such Indebtedness.

 

“Secured Parties” means (i) the
Noteholders, (ii) the Trustee, (iii) the Collateral Agent and (iv) any
successors, indorsees, transferees and assigns of each of the foregoing.

 

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

 

“Securitization Entity” means a wholly owned
Subsidiary of the Company (or a wholly owned Subsidiary of another Person in
which the Company or any Subsidiary of the Company makes an Investment and in
which the Company or any Subsidiary of the Company transfers accounts
receivable or equipment and related assets) that engages in no activities other
than in connection with the financing of accounts receivable and that is
designated by the Board of Directors of the Company (as provided below) as a
Securitization Entity and:

 

(1)           no portion of the Indebtedness or any other obligations
(contingent or otherwise) of which:

 

(a)           is
guaranteed by the Company or any Restricted Subsidiary of the Company
(excluding guarantees of obligations (other than the principal of, and interest
on, Indebtedness) pursuant to Standard Securitization Undertakings);

 

(b)           is
recourse to or obligates the Company or any Restricted Subsidiary of the
Company (other than such Securitization Entity) in any way other than pursuant
to Standard Securitization Undertakings; or

 

(c)           subjects
any property or asset of the Company or any Restricted Subsidiary of the
Company (other than such Securitization Entity), directly or indirectly, contingently
or otherwise, to the satisfaction thereof, other than pursuant to Standard
Securitization Undertakings

 

(such
Indebtedness described in this clause (1), “Non-Recourse Securitization
Entity Indebtedness”);

 

25

 

(2)           with
which neither the Company nor any Restricted Subsidiary of the Company (other
than such Securitization Entity) has any material contract, agreement,
arrangement or understanding other than those that might be obtained at the
time from Persons that are not Affiliates of the Company, other than fees
payable in the ordinary course of business in connection with servicing
accounts receivable of such entity; and

 

(3)           to
which neither the Company nor any Restricted Subsidiary of the Company (other
than such Securitization Entity) has any obligation to maintain or preserve
such entity’s financial condition or cause such entity to achieve certain
levels of operating results.

 

Any designation of a Subsidiary as a Securitization
Entity shall be evidenced to the Trustee by filing with the Trustee a certified
copy of the resolution of the Board of Directors of the Company giving effect
to the designation and an Officers’ Certificate certifying that the designation
complied with the preceding conditions and was permitted by this Indenture.

 

“Security Agreement” means the security
agreement dated March 15, 2010, among the Company, Parent, the Subsidiary
Guarantors and the Collateral Agent, as the same may be amended, supplemented
or otherwise modified from time to time.

 

“Shelf Registration Statement” means the
Shelf Registration Statement as defined in the Registration Rights Agreement.

 

“Significant Subsidiary” means any Restricted
Subsidiary of the Company that would be a “Significant Subsidiary” of the
Company within the meaning of Rule 1-02 under Regulation S-X promulgated
by the SEC as in effect on the Issue Date.

 

“Standard Securitization Undertakings” means
representations, warranties, covenants and indemnities entered into by the
Company or any Restricted Subsidiary of the Company that are reasonably
customary in an accounts receivable or equipment securitization transaction, including
servicing of the obligations thereunder.

 

“Stated Maturity” means, with respect to any
security, the date specified in such security as the fixed date on which the
final payment of principal of such security is due and payable, including
pursuant to any mandatory redemption provision (but excluding any provision
providing for the repurchase of such security at the option of the holder
thereof upon the happening of any contingency unless such contingency has
occurred).

 

“Subordinated Obligation” means, with respect
to a Person, any Indebtedness of such Person (whether outstanding on the Issue
Date or thereafter Incurred) which is subordinate or junior in right of payment
to the Notes or a Subsidiary Guaranty of such Person, as the case may be, pursuant
to a written agreement to that effect.

 

“Subsidiary” means, with respect to any
Person, any corporation, association, partnership or other business entity of
which more than 50% of the total voting power of shares of Voting Stock is at
the time owned or controlled, directly or indirectly, by:

 

(1)           such
Person;

 

(2)           such
Person and one or more Subsidiaries of such Person; or

 

26

 

(3)           one
or more Subsidiaries of such Person.

 

“Subsidiary Guarantor” means each Subsidiary
of the Company that after the Issue Date guarantees the Notes pursuant to the
terms of this Indenture or required by Section 3.11, in each case,
unless and until released from such guarantees in accordance with the terms of
this Indenture.

 

“Subsidiary Guaranty” means a Guarantee by a
Subsidiary Guarantor of the Company’s obligations with respect to the Notes.

 

“Tax Sharing Arrangement” means any tax
sharing agreement or arrangement between the Company and any other Person with
which the Company is required to, or is permitted to, file a consolidated,
combined or unitary tax return or with which the Company is or could be part of
a consolidated group for tax purposes.

 

“Temporary Cash
Investments” means any of the following:

 

(1)           any
investment in direct obligations of the United States of America or any agency
thereof or obligations guaranteed by the United States of America or any agency
thereof;

 

(2)           investments
in demand and time deposit accounts, certificates of deposit and money market
deposits maturing within one year of the date of acquisition thereof issued by
a bank or trust company which is organized under the laws of the United States
of America, any State thereof or any foreign country recognized by the United
States of America, and which bank or trust company has capital, surplus and
undivided profits aggregating in excess of $50.0 million (or the foreign
currency equivalent thereof) and has outstanding debt which is rated “A” (or
such similar equivalent rating) or higher by at least one nationally recognized
statistical rating organization (as defined in Rule 436 under the
Securities Act) or any money-market fund sponsored by a registered broker
dealer or mutual fund distributor;

 

(3)           repurchase
obligations with a term of not more than 90 days for underlying securities
of the types described in clause (1) above entered into with a bank
meeting the qualifications described in clause (2) above;

 

(4)           investments
in commercial paper, maturing not more than one year after the date of acquisition,
issued by a corporation (other than an Affiliate of the Company) organized and
in existence under the laws of the United States of America or any foreign
country recognized by the United States of America with a rating at the time as
of which any investment therein is made of “P-1” (or higher) according to Moody’s
Investors Service, Inc. or “A-1” (or higher) according to Standard and
Poor’s Ratings Group;

 

(5)           investments
in securities with maturities of one year or less from the date of acquisition issued
or fully guaranteed by any state, commonwealth or territory of the United
States of America, or by any political subdivision or taxing authority thereof,
and rated at least “A” by Standard & Poor’s Ratings Group or “A” by
Moody’s Investors Service, Inc.; and

 

(6)           investments
in money market funds that invest substantially all their assets in securities
of the types described in clauses (1) through (5) above.

 

27

 

“TIA” means the Trust Indenture Act of 1939
as in effect on the Issue Date, except as provided in Section 9.6
hereof.

 

“Transactions” means the (i) offering
and sale of the Initial Notes and the application of the proceeds to refinance
certain existing Indebtedness of the Company and Parent, (ii) the entering
into the Credit Agreement and repayment and termination of the Company’s
existing credit agreement and (iii) the exchange offer and consent
solicitation relating to Parent’s existing 101⁄2% Senior Discount Notes due 2012
for the Second Lien Notes (the “Parent Exchange Offer”).

 

“Treasury Rate” means, as obtained by the
Company, the yield to maturity at the time of computation 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 March 15, 2013; provided,
however, that if the period from
the Redemption Date to March 15, 2013 is not equal to the constant
maturity of a United States Treasury security for which a weekly average yield
is given, the Treasury Rate shall be obtained by linear interpolation
(calculated to the nearest one-twelfth of a year) from the weekly average
yields of United States Treasury securities for which such yields are given,
except that if the period from the Redemption Date to March 15, 2013 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.

 

“Trust Officer” means the Chairman of the
Board, the President or any other officer or assistant officer of the Trustee
assigned by the Trustee to administer its corporate trust matters.

 

“Trustee” means Wells Fargo Bank, National
Association until a successor replaces it and, thereafter, means the successor.

 

“Uniform
Commercial Code” means the New York Uniform Commercial Code, as in effect
from time to time.

 

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

 

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

 

“Unrestricted Subsidiary”
means:

 

(1)           any
Subsidiary of the Company that at the time of determination shall be designated
an Unrestricted Subsidiary by the Board of Directors of the Company in the
manner provided below; and

 

(2)           any
Subsidiary of an Unrestricted Subsidiary.

 

The Board of Directors of the Company may designate
any Subsidiary of the Company (including any newly acquired or newly formed
Subsidiary) to be an Unrestricted Subsidiary unless such 

 

28

 

Subsidiary or any of its Subsidiaries owns
any Capital Stock or Indebtedness of, or holds any Lien on any property of, the
Company or any other Subsidiary of the Company that is not a Subsidiary of the
Subsidiary to be so designated or another Unrestricted Subsidiary; provided, however, that
either (A) the Subsidiary to be so designated has total assets of $1,000
or less or (B) if such Subsidiary has assets greater than $1,000, such
designation would be permitted pursuant to Section 3.4 hereof.

 

The Board of Directors of the Company may designate
any Unrestricted Subsidiary to be a Restricted Subsidiary of the Company; provided, however, that
immediately after giving effect to such designation (A) the Company could
Incur $1.00 of additional Indebtedness pursuant to Section 3.3(a) hereof
and (B) no Default shall have occurred and be continuing. Any such
designation by the Board of Directors of the Company shall be evidenced to the
Trustee by promptly filing with the Trustee a copy of the resolution of the
Board of Directors of the Company giving effect to such designation and an
Officers’ Certificate certifying that such designation complied with the
foregoing provisions.

 

“U.S. Dollar Equivalent” means with respect
to any monetary amount in a currency other than U.S. dollars, at any time for
determination thereof, the amount of U.S. dollars obtained by converting such
foreign currency involved in such computation into U.S. dollars at the spot
rate for the purchase of U.S. dollars with the applicable foreign currency as
published in The Wall Street Journal in the “Exchange Rates” column under the
heading “Currency Trading” on the date two Business Days prior to such
determination.

 

Except as described pursuant to Section 3.3
hereof, whenever it is necessary to determine whether the Company has complied
with any covenant in this Indenture or a Default has occurred and an amount is
expressed in a currency other than U.S. dollars, such amount shall be treated
as the U.S. Dollar Equivalent determined as of the date such amount is
initially determined in such currency.

 

“U.S. Government Obligations” means direct
obligations (or certificates representing an ownership interest in such
obligations) of the United States of America (including any agency or instrumentality
thereof) for the payment of which the full faith and credit of the United
States of America is pledged and which are not callable at the issuer’s option.

 

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

 

“Voting Stock” of a Person means all classes
of Capital Stock or other interests (including partnership interests) of such
Person then outstanding and normally entitled (without regard to the occurrence
of any contingency) to vote in the election of directors, managers or trustees
thereof.

 

“Wholly Owned Subsidiary” of a Person means a
Restricted Subsidiary of such Person all the Capital Stock of which (other than
directors’ qualifying shares) is owned by such Person or one or more other
Wholly Owned Subsidiaries of such Person.

 

SECTION 1.2.              Other Definitions.

 

	
  Term

  	
   

  	
  Defined in

  Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  “Actual
  Knowledge”

  	
   

  	
  7.2(g)

  	
   

  
	
  “Additional
  Notes”

  	
   

  	
  2.2

  	
   

  

 

29

 

	
  Term

  	
   

  	
  Defined in

  Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  “Affiliate
  Transaction”

  	
   

  	
  3.8(a)

  	
   

  
	
  “Agent
  Member”

  	
   

  	
  2.1(c)

  	
   

  
	
  “Asset
  Disposition Offer”

  	
   

  	
  3.7(c)

  	
   

  
	
  “Asset
  Disposition Offer Amount”

  	
   

  	
  3.7(d)

  	
   

  
	
  “Asset
  Disposition Offer Period”

  	
   

  	
  3.7(d)

  	
   

  
	
  “Asset
  Disposition Purchase Date”

  	
   

  	
  3.7(d)

  	
   

  
	
  “Bankruptcy
  Law”

  	
   

  	
  6.1

  	
   

  
	
  “Change
  of Control Offer”

  	
   

  	
  3.9(b)

  	
   

  
	
  “covenant
  defeasance option”

  	
   

  	
  8.1(b)

  	
   

  
	
  “cross
  acceleration period”

  	
   

  	
  6.1(a)(vi)

  	
   

  
	
  “Custodian”

  	
   

  	
  6.1

  	
   

  
	
  “Defaulted
  Interest”

  	
   

  	
  2.12

  	
   

  
	
  “defeasance
  trust”

  	
   

  	
  8.2(i)

  	
   

  
	
  “DTC”

  	
   

  	
  2.1(b)

  	
   

  
	
  “Event
  of Default”

  	
   

  	
  6.1(a)

  	
   

  
	
  “Excess
  Proceeds”

  	
   

  	
  3.7(c))

  	
   

  
	
  “Guarantor
  Obligations”

  	
   

  	
  10.1

  	
   

  
	
  “Initial
  Lien”

  	
   

  	
  3.5

  	
   

  
	
  “judgment
  default provision”

  	
   

  	
  6.1(a)(ix)

  	
   

  
	
  “legal
  defeasance option”

  	
   

  	
  8.1(b)

  	
   

  
	
  “Notice
  of Default”

  	
   

  	
  6.1

  	
   

  
	
  “Paying
  Agent”

  	
   

  	
  2.3

  	
   

  
	
  “Redemption
  Date”

  	
   

  	
  5.4

  	
   

  
	
  “Registrar”

  	
   

  	
  2.3

  	
   

  
	
  “Special
  Interest Payment Date”

  	
   

  	
  2.12(a)

  	
   

  
	
  “Special
  Record Date”

  	
   

  	
  2.12(a)

  	
   

  
	
  “Successor
  Company”

  	
   

  	
  4.1(a)(i)

  	
   

  
	
  “Unutilized
  Excess Proceeds”

  	
   

  	
  3.7(c)

  	
   

  

 

SECTION 1.3.              Rules of Construction.  Unless the context otherwise requires:

 

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

 

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

 

(c)           “or” is not exclusive;

 

(d)           “including” means including without limitation;

 

(e)           words in the singular include the plural and words in the
plural include the singular;

 

(f)            unsecured Indebtedness shall not be deemed to be
subordinate or junior to secured Indebtedness merely by virtue of its nature as
unsecured Indebtedness;

 

30

 

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

 

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

 

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

 

(j)            any requirement to pay interest on the Notes shall
include all additional interest required pursuant to the Registration Rights
Agreement or Section 6.1.

 

SECTION 1.4.              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 hereof.

 

The following TIA term used in this Indenture has the following
meanings:

 

“obligor” on the
Notes means each of the Company and any successor obligor upon the Notes.

 

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

 

ARTICLE
II

 

The
Notes

 

SECTION 2.1.              Form and Dating.

 

(a)           The Notes and the Trustee’s certificate of authentication
shall be substantially in the form of Exhibit A hereto, the terms
of which are incorporated in and made a part hereof.  The Notes may have notations, legends or
endorsements approved as to form by the Company, and required by law, stock
exchange rule, agreements to which the Company is subject or usage.  Each Note shall be dated the date of its
authentication.  The Notes shall be
issuable only in denominations of $2,000 and integral multiples of $1,000 in
excess thereof.

 

(b)           The Notes shall initially be issued in the form of one or
more Global Notes and The Depository Trust Company (“DTC”), its
nominees, and their respective successors, shall act as the Depositary with
respect thereto.  Each Global Note (i) shall
be registered in the name of the Depositary for such Global Note or the nominee
of such Depositary, (ii) shall be delivered by the Trustee to such Depositary
or held by the Trustee as custodian for the Depositary pursuant to such
Depositary’s instructions, and (iii) shall bear a Global Note Legend in
substantially the following form:

 

UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION

 

31

 

(“DTC”),
TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
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.

 

THIS
NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE AND IS REGISTERED IN
THE NAME OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY OR A SUCCESSOR
DEPOSITARY.  THIS NOTE IS NOT EXCHANGEABLE
FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR
ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND
NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO
THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY) MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED
IN THE INDENTURE.

 

(c)           Except as permitted by Section 2.6(g), any
Note not registered under the Securities Act shall bear the following 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 ONE YEAR IN THE CASE OF RULE 144A NOTES AND 40 DAYS IN THE CASE OF
REGULATION S NOTES 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 

 

32

 

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 OR (E) 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) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION
OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF
THEM. THIS LEGEND SHALL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE
RESALE RESTRICTION TERMINATION DATE.

 

Members of, or participants in, the Depository (“Agent
Members”) shall have no rights under this Indenture with respect to any
Global Note held on their behalf by the Depository, or the Trustee as its
custodian and the Depository may be treated by the Company, the Trustee and any
agent of the Company or the Trustee as the absolute owner of the global Note for
all purposes whatsoever, including but not limited to notices and
payments.  Notwithstanding the foregoing,
nothing herein shall prevent the Company, the Trustee or any agent of the
Company or the Trustee from giving effect to any written certification, proxy
or other authorization furnished by the Depository or impair, as between the
Depository and its Agent Members, the operation of customary practices
governing the exercise of the rights of a Holder of any Note.  Any notice to be delivered to DTC (including,
but not limited to, a notice of redemption) may be delivered electronically by
the Trustee in accordance with applicable procedures of DTC.

 

SECTION 2.2.              Form of Execution and
Authentication.  An Officer shall
sign the Notes for the Company by manual or facsimile signature.

 

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

 

A Note shall not be valid until authenticated by the
manual signature of the Trustee.  The
signature of the Trustee shall be conclusive evidence that the Note has been
authenticated under this Indenture.

 

The Trustee shall authenticate (i) Initial
Notes for original issue on the Issue Date in an aggregate principal amount of
$300,000,000, (ii) pursuant to the Exchange Offer, Exchange Notes from
time to time for issue only in exchange for a like principal amount of Initial
Notes and (iii) subject to compliance with Sections 3.3 and 3.5,
one or more series of Notes (“Additional Notes”) for original issue
after the Issue Date (such Notes to be substantially in the form of Exhibit A)
in an unlimited amount (and if issued with a Private Placement Legend, the same
principal amount of Exchange Notes in exchange therefor upon consummation of an
Exchange Offer for such Additional Notes), in each case upon written order of
the Company in the form of an Officers’ Certificate, which Officers’
Certificate shall, in the case of any issuance of Additional Notes, certify
that such issuance is in compliance with Sections 3.3 and 3.5,
together with an enforceability opinion that contains customary
exceptions.  In addition, each such Officers’
Certificate shall specify the amount of Notes to be authenticated, the date on
which the Notes are to be authenticated, whether the securities are to be
Initial Notes, Exchange Notes or Additional Notes and the aggregate principal
amount of Notes outstanding on the date of authentication, and shall further
specify the amount of such Notes to be issued as Global Notes or Definitive
Notes.  Such Notes shall initially be in
the form of one or more Global Notes, which (i) shall represent, and shall
be denominated in an 

 

33

 

amount equal to the aggregate principal
amount of, the Notes to be issued, (ii) shall be registered in the name of
the Depositary or its nominee and (iii) shall be delivered by the Trustee
to the Depositary or pursuant to the Depositary’s instruction.  All Notes issued under this Indenture shall
vote and consent together on all matters as one class and no series of Notes
shall have the right to vote or consent as a separate class on any matter.

 

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

 

SECTION 2.3.              Registrar and Paying Agent.  The Company shall maintain (i) an office
or agency where Notes may be presented for registration of transfer or for
exchange (including any co-registrar, the “Registrar”) and (ii) an
office or agency where Notes may be presented for payment (“Paying Agent”).  The Registrar shall keep a register of the
Notes and of their transfer and exchange. 
The Company may appoint one or more co-registrars and one or more
additional paying agents.  The term “Paying
Agent” includes any additional paying agent. 
The Company may change any Paying Agent, Registrar or co-registrar
without prior notice to any Holder of a Note. 
The Company shall notify the Trustee in writing and the Trustee shall
notify the Holders of the Notes of the name and address of any Agent not a
party to this Indenture.  The Company may
act as Paying Agent, Registrar or co-registrar. 
The Company shall enter into an appropriate agency agreement with any
Agent not a party to this Indenture, which shall incorporate the provisions of
the TIA.  The agreement shall implement
the provisions hereof that relate to such Agent.  The Company shall notify the Trustee in
writing of the name and address of any such Agent.  If the Company fails to maintain a Registrar
or Paying Agent, or fails to give the foregoing notice, the Trustee shall act
as such, and shall be entitled to appropriate compensation in accordance with Section 7.11.

 

The Company initially appoints the Trustee as
Registrar, Paying Agent and agent for service of notices and demands in
connection with the Notes.

 

SECTION 2.4.              Paying Agent to Hold Money in
Trust.  The Company shall require
each Paying Agent other than the Trustee to agree in writing that the Paying
Agent shall hold in trust for the benefit of the Holders of the Notes or the
Trustee all money held by the Paying Agent for the payment of principal of,
premium, if any, and interest on the Notes, and shall notify the Trustee in
writing of any Default by the Company in making any such payment.  While any such Default continues, the Trustee
may require a Paying Agent to pay all money held by it to the Trustee.  The Company at any time may require a Paying
Agent to pay all money held by such Paying Agent to the Trustee.  Upon payment over to the Trustee, the Paying
Agent (if other than the Company) shall have no further liability for the money
delivered to the Trustee.  If the Company
acts as Paying Agent, it shall segregate and hold in a separate trust fund for
the benefit of the Holders of the Notes all money held by it as Paying Agent.

 

SECTION 2.5.              Lists of Holders of the Notes.  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 of the Notes and shall otherwise comply with TIA
§ 312(a).  If the Trustee is not the
Registrar, the Company shall furnish to the Trustee at least seven 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 of the Notes,
including the aggregate

 

34

 

principal amount of the Notes held by each
thereof, and the Company shall otherwise comply with TIA § 312(a).

 

SECTION 2.6.              Transfer and Exchange.

 

(a)           Transfer and Exchange of Global Notes.  A Global Note may
not be transferred as a whole except by the Depositary to a nominee of the
Depositary, by a nominee of the Depositary to the Depositary or to another
nominee of the Depositary, or by the Depositary or any such nominee to a successor
Depositary or a nominee of such successor Depositary.  Global Notes shall be exchanged by the
Company for Definitive Notes, subject to any applicable laws, only if (i) the
Company delivers to the Trustee notice from the Depositary that (A) the
Depositary is unwilling or unable to continue to act as Depositary for the
Global Notes or (B) the Depositary is no longer a clearing agency
registered under the Exchange Act and, in either case, the Company fails to
appoint a successor Depositary after the date of such notice from the
Depositary, (ii) upon request of the Trustee or Holders of a majority of
the aggregate principal amount of outstanding Notes if there shall have
occurred and be continuing an Event of Default with respect to the Notes or (iii) if
the Company notifies the Trustee in writing that it elects to cause the issuance
of Definitive Notes.  In any such case,
the Company shall notify the Trustee in writing that, upon surrender by the
Participants and Indirect Participants of their interests in such Global Note,
certificated Notes shall be issued to each Person that such Participants,
Indirect Participants and DTC jointly identify as being the beneficial owner of
the related Notes.  Global Notes also may
be exchanged or replaced, in whole or in part, as provided in Sections 2.7
and 2.10.  Every Note
authenticated and delivered in exchange for, or in lieu of, a Global Note or
any portion thereof, pursuant to this Section 2.6 or Section 2.7
or 2.10 hereof, shall be authenticated and delivered in the form of, and
shall be, a Global Note.  A Global Note
may not be exchanged for another Note other than as provided in this Section 2.6.  However, beneficial interests in a Global
Note may be transferred and exchanged as provided in Section 2.6(b),
(c) or (i) below.

 

(b)           Transfer and Exchange of Beneficial Interests in the
Global Notes.  The transfer and
exchange of beneficial interests in the Global Notes shall be effected through
the Depositary, in accordance with the provisions hereof and the Applicable
Procedures.  Beneficial interests in the
Restricted Global Notes shall be subject to restrictions on transfer comparable
to those set forth in this Indenture to the extent required by the Securities
Act.  Transfers of beneficial interests
in the Global Notes also shall require compliance with the applicable
subparagraphs below.

 

(i)      Transfer of Beneficial
Interests in the Same Global Note. 
Beneficial interests in any Restricted Global Note may be transferred to
Persons who take delivery thereof in the form of a beneficial interest in the
same Restricted Global Note in accordance with the transfer restrictions set
forth in the Private Placement Legend; provided, however, that prior to the expiration of the Restricted
Period, no transfer of beneficial interests in a Regulation S Global Note may
be made to a U.S. Person or for the account or benefit of a U.S. Person (other
than an Initial Purchaser) unless permitted by applicable law and made in
compliance with Sections 2.6(b)(ii) and (iii) below.  Beneficial interests in any Unrestricted
Global Note may be transferred to Persons who take delivery thereof in the form
of a beneficial interest in an Unrestricted Global Note.  No written orders or instructions shall be required
to be delivered to the Registrar to effect the transfers described in this Section 2.6(b)(i) unless
specifically stated above.

 

(ii)     All Other Transfers
and Exchanges of Beneficial Interests in Global Notes.  In connection with all transfers and
exchanges of beneficial interests that are not subject to Section 2.6(b)(i) above,
the transferor of such beneficial interest must deliver to the Registrar either
(A) (1) a written 

 

35

 

order
from a Participant or an Indirect Participant given to the Depositary in
accordance with the Applicable Procedures directing the Depositary to credit or
cause to be credited a beneficial interest in another Global Note in an amount
equal to the beneficial interest to be transferred or exchanged and (2) instructions
given in accordance with the Applicable Procedures containing information regarding
the Participant account to be credited with such increase, or (B) (1) if
Definitive Notes are at such time permitted to be issued pursuant to this
Indenture, a written order from a Participant or an Indirect Participant given
to the Depositary in accordance with the Applicable Procedures directing the
Depositary to cause to be issued a Definitive Note in an amount equal to the
beneficial interest to be transferred or exchanged and (2) instructions
given by the Depositary to the Registrar containing information regarding the
Person in whose name such Definitive Note shall be registered to effect the
transfer or exchange referred to in (1) above.  Upon consummation of an Exchange Offer by the
Company in accordance with Section 2.6(i) below, the requirements
of this Section 2.6(b)(ii) shall be deemed to have been
satisfied upon receipt by the Registrar of the instructions contained in the
Letter of Transmittal delivered by the holder of such beneficial interests in
the Restricted Global Notes (or delivered in accordance with Applicable
Procedures).  Upon satisfaction of all of
the requirements for transfer or exchange of beneficial interests in Global
Notes contained in this Indenture and the Notes or otherwise applicable under
the Securities Act, the Trustee shall adjust the principal amount of the
relevant Global Note(s) pursuant to Section 2.6(m) below.

 

(iii)    Transfer of Beneficial
Interests to Another Restricted Global Note.  A beneficial interest in any Restricted
Global Note may be transferred to a Person who takes delivery thereof in the
form of a beneficial interest in another Restricted Global Note if the transfer
complies with the requirements of Section 2.6(b)(ii) above and
the Registrar receives the following:

 

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

 

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

 

(iv)    Transfer and Exchange
of Beneficial Interests in a Restricted Global Note for Beneficial Interests in
an Unrestricted Global Note.  A
beneficial interest in any Restricted Global Note may be exchanged by any
holder thereof for a beneficial interest in an Unrestricted Global Note or
transferred to a Person who takes delivery thereof in the form of a beneficial
interest in an Unrestricted Global Note if the exchange or transfer complies
with the requirements of Section 2.6(b)(ii) above, and

 

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

 

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

 

36

 

(C)           such transfer is
effected by a Broker-Dealer pursuant to an Exchange Offer Registration
Statement and such Broker-Dealer complies with the terms of the Registration
Rights Agreement; or

 

(D)          the Registrar receives the following:

 

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

 

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

 

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

 

If
any such transfer is effected pursuant to subparagraph (B) or (D) above
at a time when an Unrestricted Global Note has not yet been issued, the Company
shall issue and, upon receipt of an authentication order in accordance with Section 2.2,
the Trustee shall authenticate one or more Unrestricted Global Notes in an
aggregate principal amount equal to the aggregate principal amount of
beneficial interests transferred pursuant to subparagraph (B) or (D) above.

 

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

 

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

 

(i)   Transfer and Exchange of Beneficial Interests in Restricted
Global Notes for Restricted Definitive Notes.  Subject to Section 2.6(a), if any
holder of a beneficial interest in a Restricted Global Note proposes to
exchange such beneficial interest for a Restricted Definitive Note or to
transfer such beneficial interest to a Person who takes delivery thereof in the
form of a Restricted Definitive Note, then upon receipt by the Registrar of the
following documentation:

 

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

 

(B)           if such beneficial interest is being transferred to a QIB
in accordance with Rule 144A under the Securities Act, a certificate to
the effect set forth in Exhibit B hereto, including the certifications
in item (1) thereof;

 

37

 

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

 

(D)          if such beneficial interest is being transferred to the
Company or any of its Subsidiaries, a certificate to the effect set forth in Exhibit B
hereto, including the certifications in item (3)(b) thereof; or

 

the Trustee shall cause the aggregate
principal amount of the applicable Global Note to be reduced accordingly
pursuant to Section 2.6(m) below, and the Company shall
execute and the Trustee shall authenticate and deliver to the Person designated
in the certificate a Restricted Definitive Note in the appropriate principal
amount.  Any Restricted Definitive Note
issued in exchange for a beneficial interest in a Restricted Global Note
pursuant to this Section 2.6(c) shall be registered in such
name or names and in such authorized denomination or denominations as the
holder of such beneficial interest shall instruct the Registrar through instructions
from the Depositary and the Participant or Indirect Participant.  The Trustee shall deliver such Restricted
Definitive Notes to the Persons in whose names such Notes are so registered.  Any Restricted Definitive Note issued in
exchange for a beneficial interest in a Restricted Global Note pursuant to this
Section 2.6(c)(i) shall bear the Private Placement Legend and
shall be subject to all restrictions on transfer contained therein.

 

(ii)    Transfer and Exchange of Beneficial Interests in Restricted
Global Notes for Unrestricted Definitive Notes.  Subject to Section 2.6(a), a
holder of a beneficial interest in a Restricted Global Note may exchange such
beneficial interest for an Unrestricted Definitive Note or may transfer such
beneficial interest to a Person who takes delivery thereof in the form of an
Unrestricted Definitive Note only if:

 

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

 

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

 

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

 

(D)          the Registrar receives the following:

 

(y)           if the holder of
such beneficial interest in a Restricted Global Note proposes to exchange such
beneficial interest for a Definitive Note that does not bear the Private
Placement Legend, a certificate from such holder in the form of Exhibit C
hereto, including the certifications in item (1)(b) thereof; or

 

(z)            if the holder of
such beneficial interest in a Restricted Global Note proposes to transfer such
beneficial interest to a Person who shall take delivery thereof in the form of
a Definitive Note that does not bear the Private Placement Legend, a
certificate 

 

38

 

from
such holder in the form of Exhibit B hereto, including the
applicable certifications in item (4) thereof,

 

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

 

(iii) Transfer and Exchange of Beneficial Interests in Unrestricted
Global Notes for Unrestricted Definitive Notes.  Subject to Section 2.6(a), if any
holder of a beneficial interest in an Unrestricted Global Note proposes to
exchange such beneficial interest for a Definitive Note or to transfer such
beneficial interest to a Person who takes delivery thereof in the form of a
Definitive Note, then, upon satisfaction of the conditions set forth in Section 2.6(b)(ii) above,
the Trustee shall cause the aggregate principal amount of the applicable Global
Note to be reduced accordingly pursuant to Section 2.6(m) below,
and the Company shall execute and the Trustee shall authenticate and deliver to
the Person designated in the certificate a Definitive Note in the appropriate
principal amount.  Any Definitive Note
issued in exchange for a beneficial interest pursuant to this Section 2.6(c)(iii) shall
be registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest shall instruct the
Registrar through instructions from the Depositary and the Participant or
Indirect Participant.  The Trustee shall
deliver such Definitive Notes to the Persons in whose names such Notes are so
registered.  Any Definitive Note issued
in exchange for a beneficial interest pursuant to this Section 2.6(c)(iii) shall
not bear the Private Placement Legend.

 

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

 

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

 

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

 

(B)           if such Restricted Definitive Note is being transferred to
a QIB in accordance with Rule 144A under the Securities Act, a certificate
to the effect set forth in Exhibit B hereto, including the
certifications in item (1) thereof; or

 

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

 

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

 

39

 

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

 

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

 

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

 

(C)           such transfer is effected by a Broker-Dealer pursuant to
an Exchange Offer Registration Statement and such Broker-Dealer complies with
the terms of the Registration Rights Agreement; or

 

(D)          the Registrar receives the following:

 

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

 

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

 

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

 

Upon satisfaction of the conditions of any of the
subparagraphs in this Section 2.6(d)(ii), the Trustee shall cancel
the Definitive Notes and increase or cause to be increased the aggregate principal
amount of the Unrestricted Global Note.

 

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

 

If any such exchange or transfer from an
Unrestricted Definitive Note or a Restricted Definitive Note, as the case may
be, to a beneficial interest is effected pursuant to Section 2.6(d)(ii)(B),

 

40

 

(d)(ii)(D) or (d)(iii) above
at a time when an Unrestricted Global Note has not yet been issued, the Company
shall issue and, upon receipt of an authentication order in accordance with Section 2.2,
the Trustee shall authenticate one or more Unrestricted Global Notes in an
aggregate principal amount equal to the principal amount of Unrestricted
Definitive Notes or Restricted Definitive Notes, as the case may be, so transferred.

 

(e)           Transfer and Exchange of Definitive Notes for
Definitive Notes.  Upon request by a
Holder of Definitive Notes and such Holder’s compliance with the provisions of
this Section 2.6(e), the Registrar shall register the transfer or
exchange of Definitive Notes.  Prior to
such registration of transfer or exchange, the requesting Holder shall present
or surrender to the Registrar the Definitive Notes duly endorsed or accompanied
by a written instruction of transfer in form satisfactory to the Registrar duly
executed by such Holder or its attorney, duly authorized in writing.  In addition, the requesting Holder shall
provide any additional certifications, documents and information, as
applicable, required pursuant to the following provisions of this Section 2.6(e).

 

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

 

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

 

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

 

(C)           if the transfer will be made pursuant to any other
exemption from the registration requirements of the Securities Act, then the
transferor must deliver a certificate in the form of Exhibit B
hereto, including, if the Registrar so requests, a certification or Opinion of
Counsel in form reasonably acceptable to the Company to the effect that such
transfer is in compliance with the Securities Act.

 

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

 

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

 

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

 

41

 

(C)           any such transfer is effected by a Broker-Dealer pursuant
to an Exchange Offer Registration Statement and such Broker-Dealer complies
with the terms of the Registration Rights Agreement; or

 

(D)          the Registrar receives the following:

 

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

 

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

 

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

 

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

 

(i)            Exchange Offer. 
Upon the occurrence of an Exchange Offer in accordance with the Registration
Rights Agreement, the Company shall issue and, upon receipt of an
authentication order in accordance with Section 2.2 hereof, the
Trustee shall authenticate (i) one or more Unrestricted Global Notes in an
aggregate principal amount equal to the principal amount of the beneficial
interests in the Restricted Global Notes tendered for acceptance by Persons
that make the certifications in the applicable Letters of Transmittal required
by Section 2(a) of the Registration Rights Agreement, and accepted
for exchange in an Exchange Offer and (ii) subject to Section 2.6(a) Definitive
Notes in an aggregate principal amount equal to the principal amount of the
Restricted Definitive Notes accepted for exchange in an Exchange Offer.  Concurrently with the issuance of such Notes,
the Trustee shall cause the aggregate principal amount of the applicable
Restricted Global Notes to be reduced accordingly, and the Company shall
execute and the Trustee shall authenticate and deliver to the Persons designated
by the Holders of Restricted Definitive Notes so accepted Unrestricted
Definitive Notes in the appropriate principal amounts.

 

(j)            Reserved.

 

(k)           Private Placement Legend.

 

(A)          Except as permitted by subparagraph (B) below, each
Global Note (other than an Unrestricted Global Note) and each Definitive Note
(and all Notes issued in exchange therefor or substitution thereof) shall bear
the Private Placement Legend.

 

42

 

(B)           Notwithstanding the foregoing, any Global Note or
Definitive Note issued pursuant to subparagraph (b)(iv), (c)(ii), (c)(iii),
(d)(ii), (d)(iii), (e)(ii), (e)(iii) or (f) of this Section 2.6
(and all Notes issued in exchange therefor or substitution thereof) shall not
bear the Private Placement Legend.

 

(l)            Global Note Legend.  Each Global Note shall bear the Global Note
Legend.

 

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

 

(n)           General Provisions Relating to
Transfers and Exchanges.

 

(i)      To permit registrations of transfers and exchanges, the Company
shall execute and the Trustee shall authenticate Global Notes and Definitive
Notes upon the Company’s order or at the Registrar’s request.

 

(ii)     No service charge shall be made to a holder of a beneficial
interest in a Global Note or to a Holder of a Definitive Note for any
registration of transfer or exchange, but the Company may require payment of a
sum sufficient to cover any transfer tax or similar governmental charge payable
in connection therewith (other than any such transfer taxes or similar governmental
charge payable upon exchange or transfer pursuant to Sections 2.2, 2.10,
3.7, 3.9 and 5.7).

 

(iii)    The Registrar shall not be required to register the transfer of
or exchange any Note selected for redemption in whole or in part, except for
the unredeemed portion of any Note being redeemed in part.

 

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

 

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

 

(vi)    Prior to due presentment for the registration of a transfer of
any Note, the Trustee, any Agent and the Company may deem and treat the Person
in whose name any Note is registered as the absolute owner of such Note for the
purpose of receiving payment of principal of and interest on such 

 

43

 

Notes and for all other purposes, and none of
the Trustee, any Agent or the Company shall be affected by notice to the contrary.

 

(vii)   The Trustee shall authenticate Global Notes and Definitive Notes
in accordance with the provisions of Section 2.2.

 

(viii)  All certifications, certificates and Opinions
of Counsel required to be submitted to the Registrar pursuant to this Section 2.6
to effect a registration of transfer or exchange may be submitted by facsimile.

 

(ix)    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 Participants
or Indirect Participants) 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.

 

(x)     Neither the Trustee nor any Agent shall have any responsibility
for any actions taken or not taken by the Depositary.

 

SECTION 2.7.              Replacement Notes.

 

If any mutilated Note is surrendered to the Trustee,
or the Company and the Trustee receive evidence to their satisfaction of the
destruction, loss or theft of any Note, the Company shall issue and the
Trustee, upon the written order of the Company signed by two Officers of the
Company, shall authenticate a replacement Note if the Trustee’s requirements
for replacements of Notes are met.  The
Holder must supply indemnity or security sufficient in the judgment of the
Trustee and the Company to protect the Company, the Trustee, any Agent or any
authenticating agent from any loss which any of them may suffer if a Note is
replaced.  The Company and the Trustee
may charge for their fees and expenses in replacing a Note including amounts to
cover any tax, assessment, fee or other governmental charge that may be imposed
in relation thereto.

 

Every replacement Note is an obligation of the
Company.

 

SECTION 2.8.              Outstanding Notes.

 

The Notes outstanding at any time are all the Notes
authenticated by the Trustee except for those canceled by it, those delivered
to it for cancellation and those described in this Section 2.8 as
not outstanding.

 

If a Note is replaced pursuant to Section 2.7,
it ceases to be outstanding unless the Trustee receives proof satisfactory to
it that the replaced Note is held by a protected purchaser.

 

If the principal amount of any Note is considered
paid under Section 3.1 hereof, it shall cease to be outstanding and
interest on it shall cease to accrue.

 

Subject to Section 2.9, a Note does not
cease to be outstanding because the Company, a Subsidiary of the Company or an
Affiliate of the Company holds the Note.

 

44

 

SECTION 2.9.              Treasury Notes.  In determining whether the Holders of the
required principal amount of Notes have concurred in any direction, waiver or
consent, Notes owned by the Company, any Subsidiary of the Company or any
Affiliate of the Company shall be considered as though not outstanding, except
that for purposes of determining whether the Trustee shall be protected in
relying on any such direction, waiver or consent, only Notes which a Trust
Officer actually knows to be so owned shall be so considered.  Notwithstanding the foregoing, Notes that are
to be acquired by the Company, any Subsidiary of the Company or an Affiliate of
the Company pursuant to an exchange offer, tender offer or other agreement
shall not be deemed to be owned by the Company, a Subsidiary of the Company or
an Affiliate of the Company until legal title to such Notes passes to the
Company, such Subsidiary or such Affiliate, as the case may be.

 

SECTION 2.10.            Temporary Notes.  Until 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 of Definitive Notes but may have variations that the
Company and the Trustee consider appropriate for temporary Notes.  Without unreasonable delay, the Company shall
prepare and the Trustee, upon receipt of the written order of the Company
signed by two Officers of the Company, shall authenticate Definitive Notes in exchange
for temporary Notes.  Until such
exchange, temporary Notes shall be entitled to the same rights, benefits and
privileges as Definitive Notes.

 

SECTION 2.11.            Cancellation.  The Company at any time may deliver Notes to
the Trustee for cancellation.  The
Registrar and Paying Agent shall forward to the Trustee any Notes surrendered
to them for registration of transfer, exchange or payment.  The Trustee shall cancel all Notes surrendered
for registration of transfer, exchange, payment, replacement or cancellation
and shall dispose of all canceled Notes in its customary manner (subject to the
record retention requirements of the Exchange Act), unless the Company directs
copies of canceled Notes to be returned to it. 
The Company may not issue new Notes to replace Notes that it has
redeemed or paid or that have been delivered to the Trustee for cancellation.

 

SECTION 2.12.            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 interest at the office or agency of the Company maintained
for such purpose pursuant to Section 2.3.

 

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 by virtue of having been such Holder, 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 unless a shorter period shall be acceptable to the Trustee) 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 

 

45

 

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 Trustee shall fix a record date
(the “Special Record Date”) for the payment of such Defaulted Interest,
which 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 Trustee shall promptly notify the Company
of such Special Record Date, and in the name and at the expense of the Company,
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 12.1, 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 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
securities 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 (b), such manner of payment
shall be deemed practicable by the Trustee.

 

Notwithstanding the foregoing, if any such Interest
Payment Date (other than an Interest Payment Date at maturity) would otherwise
be a day that is not a Business Day, then the Interest Payment Date shall be
postponed to the next succeeding Business Day (except if that Business Day
falls in the next succeeding calendar month, then interest shall be paid on the
immediately preceding Business Day).  If
the maturity date of the Notes is a day that is not a Business Day, all
payments to be made on such day shall be made on the next succeeding Business
Day, with the same force and effect as if made on the maturity date.  In either of such cases, no additional
interest shall be payable as a result of such delay in payment.

 

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 2.13.            CUSIP Numbers.  The Company in issuing the Notes may use “CUSIP”
numbers (if then generally in use).  The
Trustee shall not be responsible for the use of CUSIP numbers, and the Trustee
makes no representation as to their correctness as printed on any Note or
notice to Holders.  The Company shall
promptly notify the Trustee in writing of any change in the CUSIP numbers.

 

SECTION 2.14.            Reserved.

 

SECTION 2.15.            Record Date.  The Record Date for purposes of determining
the identity of Holders of the Notes entitled to vote or consent to any action
by vote or consent authorized or permitted under this Indenture shall be
determined as provided for in TIA § 316(c).

 

46

 

ARTICLE
III

 

Covenants

 

SECTION 3.1.              Payment of Notes.  The Company shall promptly pay the principal
of, premium, if any, and interest on the Notes on the dates and in the manner
provided in the Notes and in this Indenture. 
Principal, premium, if any, and interest shall be considered paid on the
date due if on such date the Trustee or the Paying Agent holds in accordance
with this Indenture money sufficient to pay all principal, premium, if any, and
interest then due and the Trustee or the Paying Agent, as the case may be, is
not prohibited from paying such money to the Holders on that date pursuant to
the terms of this Indenture.

 

The Company shall pay interest on overdue principal
at the rate specified therefor in the Notes.

 

Notwithstanding anything to the contrary contained
in this Indenture, the Company may, to the extent it is required to do so by
law, deduct or withhold income or other similar taxes imposed by the United
States of America from principal or interest payments hereunder.

 

SECTION 3.2.              SEC Reports.  Notwithstanding that the Company may not be
subject to the reporting requirements of Section 13 or 15(d) of the
Exchange Act, the Company shall file with the SEC (to the extent the SEC will
accept such filings) and provide the Trustee and Noteholders with such annual
reports and such information, documents and other reports as are specified in
Sections 13 and 15(d) of the Exchange Act and applicable to a U.S. corporation
subject to such Sections, such information, documents and other reports to be
so filed and provided at the times specified for the filings of such
information, documents and reports under such Sections; provided,
however, that so long as Parent is a
Guarantor of the Notes and complies with the requirements of Rule 3-10 of
Regulation S-X promulgated by the SEC (or any successor provision), the
reports, information and other documents required to be filed and provided as
described hereunder may, at the Company’s option, be filed by and be those of
Parent rather than the Company.

 

Additionally, the Company agrees that it shall not
take any action for the purpose of causing the SEC not to accept any such
filings. If, notwithstanding the foregoing, the SEC will not accept the Company’s
filings for any reason, the Company shall post the reports, information and
documents referred to in this paragraph on its website within the time periods
that would apply if the Company were required to file those reports with the
SEC.

 

At any time that any of the Company’s Subsidiaries
are Unrestricted Subsidiaries, then the quarterly and annual financial
information required by the preceding paragraphs shall include a reasonably
detailed presentation, either on the face of the financial statements or in the
footnotes thereto, and in “Management discussion and analysis,” 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.

 

In addition, the Company shall furnish to the
Holders of the Notes and to prospective investors, upon the requests of such
Holders, any 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.

 

47

 

SECTION 3.3.              Limitation on Indebtedness.

 

(a)           The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, Incur, directly or indirectly, any Indebtedness; provided, however, that
the Company and the Subsidiary Guarantors shall be entitled to Incur
Indebtedness (including Indebtedness Incurred under a Credit Agreement) if, on
the date of such Incurrence and after giving effect thereto on a pro forma
basis, the Consolidated Coverage Ratio of the Company exceeds 2 to 1.

 

(b)           Notwithstanding the provisions of Section 3.3(a),
the Company and its Restricted Subsidiaries shall be entitled to Incur any or
all of the following Indebtedness:

 

(i)      (x) Indebtedness
Incurred by the Company or any Subsidiary Guarantor pursuant to the Credit
Agreement; provided, however,
that, immediately after giving effect to any such Incurrence, the aggregate
principal amount of all Indebtedness Incurred under this clause (i) and
clause (xiv) of this Section 3.3(b) and then outstanding
does not exceed $50.0 million less the aggregate sum of all principal
payments actually made from time to time with respect to such Indebtedness
pursuant to a prepayment of Indebtedness and permanent reduction in the
commitments under the Credit Agreement pursuant to Section 3.7, and
(y) Indebtedness represented by Hedging Obligations entered into in the
ordinary course of business with Persons who were lenders under the Credit
Agreement or their Affiliates at the time such Hedging Obligations were entered
into and Cash Management Obligations;

 

(ii)     Indebtedness Incurred by
the Company or any Subsidiary Guarantor representing reimbursement obligations
in respect of letters of credit in an aggregate principal amount outstanding
not to exceed $15.0 million;

 

(iii)    Indebtedness owed to and
held by the Company or any of its Restricted Subsidiaries; provided,
however, that (A) any subsequent
issuance or transfer of any Capital Stock which results in any such Restricted
Subsidiary ceasing to be a Restricted Subsidiary or any subsequent transfer of
such Indebtedness (other than to the Company or a Restricted Subsidiary of the
Company) shall be deemed, in each case, to constitute the Incurrence of such
Indebtedness by the obligor thereon, (B) if the Company is the obligor on
such Indebtedness, such Indebtedness is expressly subordinated to the prior
payment in full in cash of all obligations with respect to the Notes and (C) if
a Subsidiary Guarantor is the obligor on such Indebtedness, such Indebtedness
is expressly subordinated to the prior payment in full in cash of all
obligations of such obligor with respect to its Subsidiary Guaranty;

 

(iv)    the Notes and the Exchange
Notes in an aggregate principal amount up to $300 million and all Subsidiary
Guarantees thereof;

 

(v)     Indebtedness of the
Company and its Subsidiaries outstanding on the Issue Date (other than
Indebtedness described in clause (i), (ii), (iii) or (iv));

 

(vi)    Indebtedness of a
Restricted Subsidiary of the Company Incurred and outstanding on or prior to
the date on which such Subsidiary became a Restricted Subsidiary of the Company
or was acquired by the Company or a Restricted Subsidiary of the Company (other
than Indebtedness Incurred in connection with, or to provide all or any portion
of the funds or credit support utilized to consummate, the transaction or
series of related transactions pursuant to which such Subsidiary became a
Subsidiary or was acquired by the Company or a Restricted Subsidiary of the
Company); provided, however,
that on the date of such acquisition and after giving pro forma effect thereto,
either 

 

48

 

(x) the
Company would have been able to Incur at least $1.00 of additional Indebtedness
pursuant to Section 3.3(a); or (y) the Consolidated Coverage
Ratio would be equal to or greater than the Consolidated Coverage Ratio immediately
prior to such acquisition;

 

(vii)   Refinancing Indebtedness
in respect of Indebtedness Incurred pursuant to Section 3.3(a) or
pursuant to clause (iv), (v), (vi), (xv) or this
clause (vii); provided, however, that to the extent such Refinancing Indebtedness
directly or indirectly Refinances Indebtedness of a Subsidiary Incurred
pursuant to clause (vi), such Refinancing Indebtedness shall be Incurred
only by such Subsidiary;

 

(viii)  Hedging Obligations
entered into in the ordinary course of business to purchase any raw material or
other commodity or to hedge risks or reduce costs with respect to the interest
rate, currency, commodity or weather exposure of the Company or any Restricted
Subsidiary of the Company and not for speculative purposes;

 

(ix)    (x) obligations in
respect of performance bonds, bankers’ acceptances, workers’ compensation
claims, surety, bid or appeal bonds, completion guarantees and payment obligations
in connection with self-insurance or similar obligations provided by the
Company or any Restricted Subsidiary of the Company in the ordinary course of
business and (y) obligations owed to (including in respect of letters of
credit for the benefit of) any Person in connection with workers’ compensation,
health, disability or other employee benefits or property, casualty or
liability insurance provided by such Person to the Company or any Restricted
Subsidiary of the Company pursuant to reimbursement or indemnification
obligations to such Person, in each case, Incurred in the ordinary course of
business;

 

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

 

(xi)    Indebtedness consisting of
any Guarantee by the Company or a Subsidiary Guarantor of Indebtedness Incurred
pursuant to Section 3.3(a) or pursuant to clause (i),
(ii), (iii), (iv), (v), (viii), (ix), (x), (xv) or pursuant to clause (vii) to
the extent the Refinancing Indebtedness Incurred thereunder directly or
indirectly Refinances Indebtedness Incurred pursuant to Section 3.3(a) or
pursuant to clause (iv) or (v);

 

(xii)   Indebtedness (including
Capital Lease Obligations) Incurred by the Company or any of its Restricted
Subsidiaries to finance the purchase, lease or improvement of property (real or
personal) or equipment (whether through the direct purchase of assets or the
Capital Stock of any Person owning such assets) within 180 days of such
purchase, lease or improvement, and any Refinancing Indebtedness Incurred to
Refinance such Indebtedness, in an aggregate principal amount which, when added
together with the amount of Indebtedness Incurred pursuant to this
clause (xii) and then outstanding, does not exceed $10.0 million;

 

(xiii)  Indebtedness of Foreign
Subsidiaries in an aggregate principal amount which, when taken together with
all other Indebtedness of Foreign Subsidiaries Incurred pursuant to this
clause (xiii) and then outstanding, does not exceed $5.0 million;

 

49

 

(xiv)  Non-Recourse Securitization
Entity Indebtedness Incurred by a Securitization Entity in connection with a
Qualified Securitization Transaction; provided, however, that at the time of such Incurrence, the Company or
any Restricted Subsidiary of the Company would have been able to Incur the same
amount of Indebtedness pursuant to clause (i) above;

 

(xv)   Indebtedness Incurred by
the Company, the proceeds of which are used to repay, refinance, repurchase,
redeem, defease or retire (substantially concurrently with such Incurrence), or
which is issued in exchange for, Parent’s 101/2% Senior Discount Notes due 2012 in an amount not to exceed the
aggregate principal amount of Parent’s 101/2% Senior Discount Notes due 2012 repaid, refinanced, repurchased,
redeemed, defeased, retired or exchanged, as applicable, plus any fees, expenses
or premiums associated therewith; and

 

(xvi)  Indebtedness of the Company
or of any of its Restricted Subsidiaries in an aggregate principal amount
which, when taken together with all other Indebtedness of the Company and its Restricted
Subsidiaries outstanding on the date of such Incurrence (other than
Indebtedness permitted by clauses (i) through (xv) above or Section 3.3(a))
does not exceed $25.0 million.

 

(c)           Notwithstanding the foregoing, neither the Company nor any
Subsidiary Guarantor shall be entitled to incur any Indebtedness pursuant to Section 3.3(b) if
the proceeds thereof are used, directly or indirectly, to Refinance any
Subordinated Obligations of the Company or any Subsidiary Guarantor unless such
Indebtedness shall be subordinated to the Notes or the applicable Subsidiary
Guaranty to at least the same extent as such Subordinated Obligations.

 

(d)           For purposes of determining
compliance with this Section 3.3:

 

(i)      in the event that an item
of Indebtedness (or any portion thereof) meets the criteria of more than one of
the types of Indebtedness described in Section 3.3(b) or could
be incurred pursuant to Section 3.3(a), the Company, in its sole
discretion, shall classify such item of Indebtedness (or any portion thereof)
at the time of Incurrence and shall only be required to include the amount and
type of such Indebtedness in Section 3.3(a) or 3.3(b);

 

(ii)     the Company shall be
entitled to divide and classify an item of Indebtedness in more than one of the
types of Indebtedness described above; and

 

(iii)    following the date of its
Incurrence, any Indebtedness originally classified as Incurred pursuant to one
of the clauses in Section 3.3(b) above (other than pursuant to
Section 3.3(b)(i) or 3.3(b)(iv) above) may later
be reclassified by the Company such that it shall be deemed as having been
Incurred pursuant to Section 3.3(a) or another clause in Section 3.3(b) above,
as applicable, to the extent that such reclassified Indebtedness could be
Incurred pursuant to such new paragraph or clause at the time of such
reclassification.

 

(e)           For purposes of determining compliance with any U.S.
dollar-denominated restriction on the Incurrence of Indebtedness where the
Indebtedness Incurred is denominated in a different currency, the amount of
such Indebtedness shall be the U.S. Dollar Equivalent determined on the date of
the Incurrence of such Indebtedness; provided, however, that if any such Indebtedness denominated in a
different currency is subject to a Currency Agreement with respect to U.S.
dollars covering all principal, premium, if any, and interest payable on such
Indebtedness, the amount of such Indebtedness expressed in U.S. dollars shall
be as provided in such Currency Agreement. 
The principal amount of any Refinancing Indebtedness being Refinanced
shall be the U.S. Dollar Equivalent of the Indebtedness Refinanced, except 

 

50

 

to the extent that (i) such U.S. Dollar
Equivalent was determined based on a Currency Agreement, in which case the
Refinancing Indebtedness shall be determined in accordance with the preceding
sentence, and (ii) the principal amount of the Refinancing Indebtedness
exceeds the principal amount of the Indebtedness being Refinanced, in which
case the U.S. Dollar Equivalent of such excess shall be determined on the date
such Refinancing Indebtedness is Incurred.

 

SECTION 3.4.              Limitation on Restricted
Payments.

 

(a)           The Company shall not, and shall not permit any of its
Restricted Subsidiaries, directly or indirectly, to make a Restricted Payment
if at the time the Company or such Restricted Subsidiary makes such Restricted
Payment:

 

(i)      a Default shall have
occurred and be continuing (or would result therefrom);

 

(ii)     after giving effect to
such Restricted Payment, on a pro forma basis, the First Lien Leverage Ratio
would exceed 3.50 to 1.0; or

 

(iii)    the aggregate amount of
such Restricted Payment and all other Restricted Payments since the Issue Date
would exceed the sum of (without duplication):

 

(A)          50% of the
Consolidated Net Income accrued during the period (treated as one accounting
period) from April 1, 2010 to the end of the Company’s most recently ended
fiscal quarter prior to the date of such Restricted Payment for which internal
financial statements are then available (or, in case such Consolidated Net
Income shall be a deficit, minus 100% of such deficit); plus

 

(B)           100% of the
aggregate Net Cash Proceeds received by the Company from the issuance or sale
of its Capital Stock (other than Disqualified Stock) subsequent to April 1,
2010 (other than an issuance or sale to a Subsidiary of the Company and other
than an issuance or sale to an employee stock ownership plan or to a trust
established by the Company or any of its Subsidiaries for the benefit of their
employees) and 100% of any cash capital contribution received by the Company
from its shareholders subsequent to April 1, 2010; plus

 

(C)           the amount by which
Indebtedness of the Company or any of its Restricted Subsidiaries is reduced on
the Company’s balance sheet upon the conversion or exchange subsequent to April 1,
2010 of any Indebtedness of the Company or any of its Restricted Subsidiaries
convertible or exchangeable for Capital Stock (other than Disqualified Stock)
of the Company (less the amount of any cash, or the fair value of any other
property, distributed by the Company upon such conversion or exchange); provided, however, that
the foregoing amount shall not exceed the Net Cash Proceeds received by the
Company or any such Restricted Subsidiary from the sale of such Indebtedness
(excluding Net Cash Proceeds from sales to a Subsidiary of the Company or to an
employee stock ownership plan or to a trust established by the Company or any
of its Subsidiaries for the benefit of their employees); plus

 

(D)          an amount equal to
the sum of (x) the net reduction in the Investments (other than Permitted
Investments) made by the Company or any of its Restricted Subsidiaries in any
Person resulting from repurchases, repayments or redemptions of such 

 

51

 

Investments
by such Person, proceeds realized on the sale of such Investment and proceeds
representing the return of capital (excluding dividends and distributions), in
each case received by the Company or any of its Restricted Subsidiaries, and (y) to
the extent such Person is an Unrestricted Subsidiary, the portion (proportionate
to the Company’s equity interest in such Subsidiary) of the Fair Market Value
of the net assets of such Unrestricted Subsidiary at the time such Unrestricted
Subsidiary is designated a Restricted Subsidiary of the Company; provided, however, that
the foregoing sum shall not exceed, in the case of any such Person or
Unrestricted Subsidiary, the amount of Investments (excluding Permitted
Investments) previously made (and treated as a Restricted Payment) by the
Company or any Restricted Subsidiary of the Company in such Person or Unrestricted
Subsidiary.

 

(b)           The provisions of Section 3.4(a) shall
not prohibit:

 

(i)      any Restricted Payment
made out of the Net Cash Proceeds of the substantially concurrent sale of, or
made by exchange for, Capital Stock of the Company (other than Disqualified
Stock and Capital Stock issued or sold to a Subsidiary of the Company or an
employee stock ownership plan or to a trust established by the Company or any
of its Subsidiaries for the benefit of their employees) subsequent to April 1,
2010 or a substantially concurrent cash capital contribution received by the
Company from its shareholders subsequent to April 1, 2010; provided, however, that (A) such
Restricted Payment shall be excluded in the calculation of the amount of
Restricted Payments and (B) the Net Cash Proceeds from such sale or such
cash capital contribution (to the extent so used for such Restricted Payment)
shall be excluded from the calculation of amounts pursuant to Section 3.4(a)(iii)(B);

 

(ii)     any purchase, repurchase,
redemption, defeasance or other acquisition or retirement for value of (i) Subordinated
Obligations, (ii) unsecured Indebtedness or (iii) Junior Lien Obligations,
in each case, of the Company or any Subsidiary Guarantor made by exchange for,
or out of the proceeds of the substantially concurrent sale of, Subordinated
Obligations, unsecured Indebtedness or Junior Lien Obligations, as the case may
be, of such Person or any Subsidiary Guarantor which is permitted to be
Incurred pursuant to Section 3.3; provided, however,
that such purchase, repurchase, redemption, defeasance or other acquisition or
retirement for value shall be excluded in the calculation of the amount of
Restricted Payments;

 

(iii)    dividends paid within
60 days after the date of declaration thereof if at such date of
declaration such dividend would have complied with this covenant; provided, however, that
at the time of payment of such dividend, no other Default shall have occurred
and be continuing (or result therefrom); provided further,
however, that such dividend shall be
included in the calculation of the amount of Restricted Payments;

 

(iv)    so long as no Default has
occurred and is continuing, the purchase, redemption or other acquisition or
retirement for value of shares of Capital Stock of the Company or any of its Subsidiaries
from employees, former employees, directors or former directors of the Company
or any of its Subsidiaries (or permitted transferees of such employees, former
employees, directors or former directors), pursuant to the terms of the
agreements (including employment agreements) or plans (or amendments thereto)
approved by the Board of Directors of the Company under which such individuals
purchase or sell or are granted the option to purchase or sell, shares of such
Capital Stock; provided, however,
that (i) the aggregate amount of such purchases, redemptions and other
acquisitions and retirements (excluding amounts representing cancellation of Indebtedness)
shall not exceed 

 

52

 

$2.0 million
in any calendar year and (ii) any Restricted Payments permitted (but not
made) pursuant to this clause (b)(4) in any one calendar year may be
carried forward to any succeeding calendar year but that the aggregate amount
of all Restricted Payments made pursuant to this clause (b)(4) shall
not exceed $5.0 million in any calendar year; provided
further, however, that
such repurchases and other acquisitions shall be excluded in the calculation of
the amount of Restricted Payments;

 

(v)     declarations and payments
of dividends on Disqualified Stock issued pursuant to Section 3.3; provided, however, that
such dividends shall be excluded in the calculation of the amount of Restricted
Payments;

 

(vi)    repurchases of Capital
Stock deemed to occur upon exercise of stock options if such Capital Stock
represents a portion of the exercise price of such options; provided, however, that
such Restricted Payments shall be excluded in the calculation of the amount of
Restricted Payments;

 

(vii)   payments of intercompany
subordinated Indebtedness, the Incurrence of which was permitted pursuant to Section 3.3(b)(ii);
provided further, however,
that such payments shall be excluded in the calculation of the amount of
Restricted Payments;

 

(viii)  dividends and other
payments to Parent to be used by Parent solely to pay its franchise taxes and
other fees required to maintain its corporate existence and to pay for general
corporate and overhead expenses (including salaries and other compensation of
the employees) incurred by Parent in the ordinary course of its business and
legal fees and expenses incurred in connation with the pending Department of
Justice investigation of Parent and its subsidiaries and the defense of litigation
related thereto; provided, however,
that such dividends and other payments shall not exceed $1.0 million in any
calendar year; provided further, however, that such dividends and other payments shall be
excluded in the calculation of the amount of Restricted Payments;

 

(ix)    any payment by the Company
to Parent pursuant to any Tax Sharing Arrangement in effect as of the Issue
Date, as such Tax Sharing Arrangement may be modified or amended from time to
time; provided, however,
that the amount of any such payment shall not exceed the amount of taxes that
the Company would have been liable for on a stand alone basis on a consolidated
tax return with its Subsidiaries; provided further,
however, that such payment shall be
excluded in the calculation of the amount of Restricted Payments;

 

(x)     in the event of a Change
of Control, and if no Default shall have occurred and be continuing, the
payment, purchase, redemption, defeasance or other acquisition or retirement of
Subordinated Obligations, unsecured Indebtedness or Junior Lien Obligations, in
each case, of the Company or any Subsidiary Guarantor, in each case, at a
purchase price not greater than 101% of the principal amount of such
Indebtedness, plus any accrued and unpaid interest thereon; provided, however, that
prior to such payment, purchase, redemption, defeasance or other acquisition or
retirement, the Company (or a third party to the extent permitted by this
Indenture) has made a Change of Control Offer with respect to the Notes as a
result of such Change of Control and has repurchased all Notes validly tendered
and not withdrawn in connection with such Change of Control Offer; provided further, however, that
such repurchase and other acquisitions shall be included in the calculation of
the amount of Restricted Payments;

 

(xi)    in the event of an Asset
Disposition that requires the Company to offer to repurchase Notes pursuant to Section 3.7,
and if no Default shall have occurred and be continuing, the payment, purchase,
redemption, defeasance or other acquisition or retirement of Subordinated
Obligations, unsecured 

 

53

 

Indebtedness
or Junior Lien Obligations, of the Company or any Subsidiary Guarantor, in each
case, at a purchase price not greater than 100% of the principal amount (or, if
such Subordinated Obligations were issued with original issue discount, 100% of
the accreted value) of such Subordinated Obligations, plus any accrued and
unpaid interest thereon; provided, however, that (A) prior to such payment, purchase,
redemption, defeasance or other acquisition or retirement, the Company has made
an offer with respect to the Notes pursuant to Section 3.7 and has
repurchased all Notes validly tendered and not withdrawn in connection with
such offer and (B) the aggregate amount of all such payments, purchases,
redemptions, defeasances or other acquisitions or retirements of all such
Subordinated Obligations may not exceed the amount of Net Available Cash remaining
after the Company has complied with the requirement to make an Asset
Disposition Offer pursuant to Section 3.7(a); provided further, however, that
such repurchases and other acquisitions shall be included in the calculation of
the amount of Restricted Payments;

 

(xii)   cash payments in lieu of
the issuance of fractional shares in connection with the exercise of warrants,
options or other securities convertible into or exchangeable for Capital Stock
of the Company; provided, however,
that any such cash payment shall not be for the purpose of evading the
limitation of the covenant described under this subheading (as determined in
good faith by the Board of Directors of the Company); provided
further, however, that
such payments shall be excluded in the calculation of the amount of Restricted
Payments;

 

(xiii)  dividends in an aggregate
amount per annum not to exceed 6% of the aggregate Net Cash Proceeds received
by the Company in connection with any Public Equity Offerings occurring after
the Issue Date; provided, however,
that at the time of each such Restricted Payment, no Default shall have
occurred or be continuing;

 

(xiv)  dividends to Parent (i) in
an amount to pay interest, when due, on Parent’s 101⁄2% Senior Discount Notes due
2012 and (ii) to repay, redeem or retire Parent’s 101⁄2% Senior Discount
Notes due 2012 with the proceeds of Indebtedness Incurred pursuant Section 3.3(b)(xv);
provided, however that
such Restricted Payments shall be excluded in the calculation of the amount of
Restricted Payments;

 

(xv)   the purchase, repurchase,
redemption, defeasance or other acquisition or retirement for value of up to
$25 million aggregate principal amount of (i) unsecured Indebtedness
or (ii) Junior Lien Obligations, in each case, of the Company or any
Subsidiary Guarantor, so long as the First Lien Leverage Ratio after giving
effect to such purchase, repurchase, redemption, defeasance or other
acquisition or retirement for value is less than or equal to 2.5 to 1.0 (which
amount shall increase to $50 million for so long as the First Lien Leverage
Ratio after giving effect to such purchase, repurchase, redemption, defeasance
or other acquisition or retirement for value is less than or equal to 2.0 to
1.0); and

 

(xvi)  Restricted Payments in an
amount which, when taken together with all Restricted Payments made pursuant to
this clause (xvi), does not exceed $25.0 million; provided,
however, that (A) at the time of
each such Restricted Payment, no Default shall have occurred and be continuing
(or result therefrom) and (B) such Restricted Payments shall be excluded
in the calculation of the amount of Restricted Payments.

 

SECTION 3.5.              Limitation on Liens.  The Company shall not, and shall not permit
any of its Restricted Subsidiaries to directly or indirectly, Incur or permit
to exist any Lien of any nature whatsoever on any of their respective
properties (including Capital Stock), whether owned at the Issue

 

54

 

Date or thereafter acquired, securing any
Indebtedness, other than Permitted Liens. 
Additionally, the Company shall not, and shall not permit any of its
Restricted Subsidiaries to, incur or suffer to exist any Lien (the “Initial
Lien”) on any Excluded Property to secure any Priority Payment Lien
Obligations or Pari Passu Lien Indebtedness (other than on cash collateral for (x) letters
of credit in an amount not to exceed $15.0 million and (y) Hedging
Obligations entered into in the ordinary course of business in an aggregate
amount not to exceed $5.0 million), unless the Company or such Restricted
Subsidiary concurrently grants a Lien to the Collateral Agent to secure the
Notes ranking pari passu with such Lien securing such Priority Payment Lien
Obligations or Pari Passu Lien Indebtedness, as applicable; provided, however, that
any such Lien on Excluded Property created to secure the Notes pursuant to this
sentence shall provide by its terms that upon the release and discharge of the
Initial Lien on such Excluded Property by the collateral agent for the Priority
Payment Lien Obligations or Pari Passu Lien Indebtedness secured by such
Initial Lien, the Lien on such Excluded Property securing the Notes shall be
automatically and unconditionally released and discharged and the Company may
take any action necessary to effectuate such release or discharge.

 

SECTION 3.6.              Limitation on Restrictions on
Distributions from Restricted Subsidiaries.

 

(a)           The Company shall not, and shall not permit any Restricted
Subsidiary of the Company to, create or otherwise cause or permit to exist or
become effective any consensual encumbrance or restriction on the ability of
any Restricted Subsidiary of the Company to

 

(i)      pay dividends or make any
other distributions on its Capital Stock to the Company or a Restricted
Subsidiary of the Company or pay any Indebtedness owed to the Company;

 

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

 

(iii)    transfer any of its
property or assets to the Company.

 

(b)           The restrictions in Section 3.6(a) shall
not prohibit encumbrances or restrictions existing under or by reason of:

 

(i)      any encumbrance or
restriction pursuant to an agreement in effect at or entered into on the Issue
Date, including the Credit Agreement;

 

(ii)     any encumbrance or restriction
contained in the terms of any Credit Agreement if (x) either (i) the
encumbrance or restriction applies only in the event of and during the continuance
of a payment default or a default with respect to a financial covenant
contained in such Indebtedness or agreement or (ii) the Company determines
at the time any such Indebtedness is Incurred (and at the time of any
modification of the terms of any such encumbrance or restriction) that any such
encumbrance or restriction shall not materially affect the Company’s ability to
make principal or interest payments on the Notes or (y) the encumbrance or
restriction is not materially more disadvantageous to the holders of the Notes
than is customary in comparable financings or agreements (as determined by the
Company in good faith);

 

(iii)    any encumbrance or
restriction with respect to a Restricted Subsidiary of the Company pursuant to
an agreement relating to any Indebtedness Incurred by such Restricted
Subsidiary on or prior to the date on which such Restricted Subsidiary became a
Restricted Subsidiary or was acquired by the Company (other than Indebtedness
Incurred as consideration in, or to provide all or 

 

55

 

any
portion of the funds or credit support utilized to consummate, the transaction
or series of related transactions pursuant to which such Restricted Subsidiary
became a Restricted Subsidiary or was acquired by the Company) and outstanding
on such date;

 

(iv)    any encumbrance or
restriction pursuant to an agreement effecting a Refinancing (in whole or in
part) of Indebtedness Incurred pursuant to an agreement referred to in
clause (i), (ii) or (iii) of this Section 3.6(b) or
this clause (iv) or contained in any amendment to an agreement
referred to in clause (i), (ii) or (iii) of this Section 3.6(b) or
this clause (iv); provided, however, that the encumbrances and restrictions with respect
to such Restricted Subsidiary contained in any such refinancing agreement or
amendment, taken as a whole, are no less favorable to the Noteholders than
encumbrances and restrictions with respect to such Restricted Subsidiary
contained in such predecessor agreements;

 

(v)     any encumbrance or
restriction with respect to a Restricted Subsidiary of the Company imposed pursuant
to an agreement entered into for the sale or disposition of all or substantially
all the Capital Stock or any assets of such Restricted Subsidiary pending the
closing of such sale or disposition;

 

(vi)    any encumbrance or
restriction existing under applicable law, rule, regulation or order;

 

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

 

(viii)  protective Liens filed in
connection with Sale/Leaseback Transactions permitted under this Indenture;

 

(ix)    customary restrictions on
the assignment or transfer of any property that is subject to a license or
similar contract; and

 

(x)     any encumbrance or
restriction existing under Non-Recourse Securitization Entity Indebtedness or
other contractual requirements of a Securitization Entity in connection with a
Qualified Securitization Transaction; provided, however, that such restrictions apply only to such Securitization
Entity;

 

(c)           The restrictions in Section 3.6(a)(iii) shall
not prohibit encumbrances or restrictions existing under or by reason of:

 

(A)          any encumbrance or restriction consisting of customary
nonassignment provisions in leases governing leasehold interests to the extent
such provisions restrict the transfer or assignment of the lease or the
property leased thereunder;

 

(B)           any encumbrance or restriction contained in security
agreements or other documentation governing secured Indebtedness of a
Restricted Subsidiary of the Company to the extent such encumbrance or
restriction restricts the transfer of the property securing such Indebtedness;
and

 

(C)           customary provisions restricting the disposition or
distribution of assets or property to each holder of Capital Stock of a joint
venture contained in any constitutional documents 

 

56

 

of such joint venture or any joint venture
agreement, shareholders agreement or similar agreement which restriction is
limited to the assets or property of such joint venture.

 

SECTION 3.7.              Limitation on Sales of Assets
and Subsidiary Stock.

 

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

 

(i)      the Company or such Restricted
Subsidiary receives consideration at the time of such Asset Disposition at
least equal to the Fair Market Value (including as to the value of all non-cash
consideration) of the shares and assets subject to such Asset Disposition; and

 

(ii)     at least 75% of the
consideration thereof received by the Company or such Restricted Subsidiary is
in the form of cash or cash equivalents; provided, however, that this clause (a)(ii) shall not apply
to any Asset Disposition in exchange for assets of a similar nature and to be
used by the Company or a Restricted Subsidiary of the Company in a Related
Business, or a combination of such assets and cash or cash equivalents, in each
case having a Fair Market Value comparable to the Fair Market Value of the
assets disposed of by the Company or a Restricted Subsidiary of the Company.

 

(b)           Any Net Available Cash received by
the Company or any Restricted Subsidiary from any Asset Disposition shall be
applied at the Company’s election:

 

(w)          in
the case of any Asset Disposition by a Non-Guarantor Subsidiary, to repay Indebtedness
of a Non-Guarantor Subsidiary,

 

(x)            to
reinvest in or acquire assets (including Capital Stock or other securities purchased
in connection with the acquisition of Capital Stock or property of another
Person that is or becomes a Restricted Subsidiary of the Company or that would
constitute a Permitted Investment under clause (1) of the definition
thereof) used or useful in a Related Business; provided
that to the extent the assets subject to such Asset Disposition were
Collateral, such newly acquired assets shall also be Collateral; or

 

(y)           to
repay or redeem Priority Payment Lien Obligations; provided that if the Priority Payment Lien Obligations so
repaid, prepaid, purchased, redeemed or acquired, is under a revolving credit
facility, the Company shall effect a permanent reduction in the availability
thereunder in an amount equal to the aggregate principal amount of Priority
Payment Lien Obligations under such revolving credit facility so repaid, prepaid,
purchased, redeemed or acquired.

 

(c)           All Net Available Cash that is not applied or invested (or
committed pursuant to a written agreement to be applied or invested) as
provided in subclause (w), (x) or (y) of the preceding paragraph
within 365 days after receipt (or in the case of any amount committed to
be so applied or reinvested, which are not actually so applied or reinvested
within 180 days following such 365 day period) shall be deemed to
constitute “Excess Proceeds.”  When the
aggregate amount of Excess Proceeds exceeds $10.0 million, the Company
shall be required to make an offer (“Asset Disposition Offer”) to all
Holders in an amount equal to the Notes First Lien Percentage (determined with
respect to any Net Available Cash from any Asset Disposition included in such
Excess Proceeds at the time of such Asset Disposition) of such Excess Proceeds
to purchase the maximum principal amount of the Notes (on a pro rata basis)
that may be purchased out of the Notes First Lien Percentage of such Excess Proceeds,
at an offer 

 

57

 

price in cash equal to 100% of the principal
amount of the Notes, plus accrued and unpaid interest and additional interest,
if any, thereon to, but excluding, the date of purchase (subject to the rights
of Holders of record on any record date to receive payments of interest on the
related Interest Payment Date), in accordance with the procedures set forth in
this Indenture in integral multiples of $1,000 (except that no Note shall be
purchased in part if the remaining principal amount would be less than $2,000).
To the extent that the aggregate amount of Notes so validly tendered and not
properly withdrawn pursuant to an Asset Disposition Offer is less than the
Notes First Lien Percentage of such Excess Proceeds, the Company may use any
remaining portion of such Excess Proceeds that is not applied to purchase Notes
(“Unutilized Excess Proceeds”) for general corporate purposes, the
repayment of Indebtedness or as otherwise required pursuant to its other
contractual requirements, subject to the terms of this Indenture. If the aggregate
principal amount of Notes surrendered by Holders exceeds the Notes First Lien
Percentage of such Excess Proceeds, the Notes to be purchased shall be selected
on a pro rata basis on the basis of the aggregate
principal amount of tendered Notes. Upon completion of such Asset Disposition
Offer, the amount of Excess Proceeds shall be reset at zero. For the avoidance
of doubt, the Company shall be permitted to apply Net Available Cash from any
Asset Disposition (other than the Notes First Lien Percentage thereof) to
repay, prepay, redeem, purchase or otherwise acquire Pari Passu Lien
Indebtedness or Priority Payment Lien Obligations at any time; provided that any such Pari Passu Lien
Indebtedness or Priority Payment Lien Obligations shall be cancelled by the
Company and deemed no longer outstanding; provided,
further, that if the Pari Passu
Lien Indebtedness or Priority Payment Lien Obligations so repaid, prepaid, purchased,
redeemed or acquired, is under a revolving credit facility, the Company shall
effect a permanent reduction in the availability thereunder in an amount equal
to the aggregate principal amount of Pari Passu Lien Indebtedness or Priority
Payment Lien Obligations under such revolving credit facility so repaid,
prepaid, purchased, redeemed or acquired.

 

(d)           The Asset Disposition Offer shall remain open for a period
of 20 Business Days following its commencement, except to the extent that a
longer period is required by applicable law (the “Asset Disposition Offer
Period”). No later than five Business Days after the termination of the
Asset Disposition Offer Period (the “Asset Disposition Purchase Date”),
the Company shall purchase the principal amount of Notes required to be
purchased pursuant to this Section 3.7 (the “Asset Disposition
Offer Amount”) or, if less than the Asset Disposition Offer Amount has been
so validly tendered and not properly withdrawn, all Notes validly tendered in
response to the Asset Disposition Offer.

 

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

 

(f)            On or before the Asset Disposition Purchase Date, the
Company shall, to the extent lawful, accept for payment, on a pro rata basis to the extent necessary, the Asset Disposition
Offer Amount of Notes or portions of Notes validly tendered and not properly
withdrawn pursuant to the Asset Disposition Offer, or if less than the Asset
Disposition Offer Amount has been validly tendered and not properly withdrawn,
all Notes validly tendered and not properly withdrawn, in each case in denominations
of $1,000 (except that no Note shall be purchased in part if the remaining principal
amount would be less than $2,000). The Company or the Trustee, as the case may
be, shall promptly (but in any case not later than five Business Days after
termination of the Asset Disposition Offer Period) mail or deliver to each
tendering Holder of Notes an amount equal to the purchase price of the Notes
validly tendered and not properly withdrawn by such holder and accepted by the
Company for purchase, and the Company shall promptly issue a new Note, and the
Trustee, upon delivery of an Officers’ Certificate from the 

 

58

 

Company, shall authenticate and mail or
deliver such new Note to such Holder, in a principal amount equal to any
unpurchased portion of the Note surrendered; provided
that each such new Note shall be in a principal amount of $2,000 or an integral
multiple of $1,000 in excess thereof. Any Note not so accepted shall be
promptly mailed or delivered by the Company to the Holder thereof.

 

(g)           For the purposes of Section 3.7(a)(ii),
the following are deemed to be cash or cash equivalents:

 

(i)      the assumption of
Indebtedness of the Company (other than obligations in respect of Disqualified
Stock of the Company) or any Restricted Subsidiary of the Company and the
release of the Company or such Restricted Subsidiary from all liability on such
Indebtedness in connection with such Asset Disposition; and

 

(ii)     securities received by
the Company or any Restricted Subsidiary of the Company from the transferee
that are converted within 90 days by the Company or such Restricted
Subsidiary into cash, to the extent of cash received in that conversion.

 

(h)           The Company shall comply, to the extent applicable, with
the requirements of Section 14(e) of the Exchange Act and any other
securities laws or regulations in connection with the repurchase of Notes
pursuant to this Section 3.7. To the extent that the provisions of
any securities laws or regulations conflict with provisions of this Section 3.7,
the Company shall comply with the applicable securities laws and regulations
and shall not be deemed to have breached its obligations under this Section 3.7
by virtue of its compliance with such securities laws or regulations.

 

SECTION 3.8.              Limitation on Affiliate
Transactions.

 

(a)           The Company shall not, and shall not permit any Restricted
Subsidiary of the Company to, enter into any transaction (including the
purchase, sale, lease or exchange of any property, employee compensation
arrangements or the rendering of any service) with, or for the benefit of, any
Affiliate of the Company (an “Affiliate Transaction”) unless:

 

(i)      the terms of the
Affiliate Transaction are no less favorable to the Company or such Restricted
Subsidiary than those that could be obtained at the time of the Affiliate
Transaction in arm’s-length dealings with a Person who is not an Affiliate;

 

(ii)     if such Affiliate
Transaction involves an amount in excess of $2.0 million, the terms of the
Affiliate Transaction are set forth in writing and a majority of the directors
of the Company disinterested with respect to such Affiliate Transaction shall
have determined in good faith that the criteria set forth in clause (i) are
satisfied and shall have approved the relevant Affiliate Transaction as
evidenced by a resolution of the Board of Directors; and

 

(iii)    if such Affiliate
Transaction involves an amount in excess of $10.0 million, the Board of
Directors of the Company shall also have received a written opinion from an
Independent Qualified Party to the effect that such Affiliate Transaction is
fair, from a financial standpoint, to the Company and its Restricted
Subsidiaries or is not 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.

 

59

 

(b)           The provisions of Section 3.8(a) shall
not apply to:

 

(i)      any Investment (other
than a Permitted Investment) or other Restricted Payment, in each case
permitted to be made pursuant to Section 3.4;

 

(ii)     any issuance of
securities, or other payments, awards or grants in cash, securities or
otherwise pursuant to, or the funding of, employment arrangements, stock
options and stock ownership plans approved by the Board of Directors of the
Company;

 

(iii)    loans or advances to
officers, employees and directors in the ordinary course of business of the
Company or its Restricted Subsidiaries, but in any event not to exceed
$3.0 million in the aggregate outstanding at any one time;

 

(iv)    reasonable fees and
compensation paid to, and indemnity provided for the benefit of, officers,
directors, employees or consultants of the Company or any Restricted Subsidiary
of the Company as determined in good faith by the Company’s Board of Directors;

 

(v)     any transaction with a
Restricted Subsidiary of the Company or joint venture or similar entity which
would constitute an Affiliate Transaction solely because the Company or a Restricted
Subsidiary of the Company owns an equity interest in or otherwise controls such
Restricted Subsidiary, joint venture or similar entity;

 

(vi)    the issuance or sale of
any Capital Stock (other than Disqualified Stock) of the Company;

 

(vii)   any agreement or
arrangement as in effect on the Issue Date and described in the Offering
Memorandum (including any Tax Sharing Arrangement) or any renewals or
extensions of any such agreement (so long as such renewals or extensions are
not less favorable to the Company or its Restricted Subsidiaries) and the
transactions evidenced thereby;

 

(viii)  any merger of the Company
with an Affiliate of the Company solely for the purpose and with the sole
effect of reincorporating the Company in another jurisdiction;

 

(ix)    transactions with
customers, clients, suppliers, joint venture partners or purchasers or sellers
of goods or services, in each case, in the ordinary course of business,
including pursuant to joint venture agreements, and otherwise in compliance
with the terms of this Indenture which are fair to the Company and its
Restricted Subsidiaries, in the reasonable determination of the Board of Directors
of the Company or the senior management thereof, or are on terms at least as
favorable as might reasonably have been obtained at such time in arm’s-length
dealings with a Person who is not an Affiliate;

 

(x)     transactions effected as
part of a Qualified Securitization Transaction; and

 

(xi)    any transaction
constituting part of the Transactions.

 

SECTION 3.9.              Change of Control.

 

(a)           Upon the occurrence of a Change of Control, each Holder
shall have the right to require that the Company repurchase such Holder’s Notes
at a purchase price in cash equal to 101% of the 

 

60

 

principal amount thereof on the date of
purchase plus accrued and unpaid interest, if any, to the date of purchase
(subject to the right of Holders of record on the relevant Record Date to
receive interest due on the relevant Interest Payment Date).

 

(b)           Within 30 days following any
Change of Control, the Company shall mail a notice to each Holder with a copy
to the Trustee (the “Change of Control Offer”) stating:

 

(i)      that a Change of Control
has occurred and that such Holder has the right to require the Company to
purchase such Holder’s Notes at a purchase price in cash equal to 101% of the
principal amount thereof on the date of purchase, plus accrued and unpaid
interest, if any, to the date of purchase (subject to the right of Holders of
record on the relevant Record Date to receive interest on the relevant Interest
Payment Date);

 

(ii)     the circumstances and
relevant facts regarding such Change of Control;

 

(iii)    the purchase date (which
shall be no earlier than 30 days nor later than 60 days from the date
such notice is mailed); and

 

(iv)    the instructions, as
determined by the Company, consistent with this Section 3.9, that a
Holder must follow in order to have its Notes purchased.

 

(c)           Holders electing to have a Note purchased shall be
required to surrender the Note, with an appropriate form duly completed, to the
Company at the address specified in the notice at least three Business Days
prior to the purchase date.  Holders
shall be entitled to withdraw their election if the Trustee or the Company
receives not later than one Business Day prior to the purchase date, a telegram,
telex facsimile transmission or letter setting forth the name of the Holder,
the principal amount at maturity of the Note which was delivered for purchase
by the Holder and a statement that such Holder is withdrawing his selection to
have such Note purchased.

 

(d)           On the purchase date, all Notes purchased by the Company
under this Section 3.9 shall be delivered by the Company to the Trustee
for cancellation, and the Company shall pay the purchase price plus accrued and
unpaid interest, if any, to the Holders entitled thereto.  With respect to any Note purchased in part,
the Company will issue a new Note in a principal amount equal at maturity to
the unredeemed portion of the original Note in the name of the holder upon
cancellation of the original Note.

 

(e)           The Company shall not be required to make a Change of
Control Offer following a Change of Control if a third party makes the Change
of Control Offer in the manner, at the times and otherwise in compliance with
the requirements set forth in this Indenture applicable to a Change of Control
Offer made by the Company and purchases all Notes validly tendered and not withdrawn
under such Change of Control Offer. Additionally, the Company shall not be
required to make a Change of Control Offer or purchase the Notes as described
under this Section 3.9 to the extent that the Company has mailed a
notice to exercise its right to redeem Notes pursuant to the provisions of Section 5.1
at any time prior to the time by which consummation of a Change of Control
Offer is required.

 

(f)            The Company shall comply, to the extent applicable, with
the requirements of Section 14(e) of the Exchange Act and any other
securities laws or regulations 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 conflict with the provisions of this Section 3.9,
the Company shall comply with the 

 

61

 

applicable securities laws and regulations
and shall not be deemed to have breached its obligations under this Section 3.9
by virtue of its compliance with such securities laws or regulations.

 

SECTION 3.10.            Maintenance of Properties.

 

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

 

SECTION 3.11.            Additional Subsidiary Guarantees;
Insurance.

 

(a)           If after the Issue Date the Company or any of its
Restricted Subsidiaries acquires or creates another wholly-owned Restricted
Subsidiary (other than a Foreign Subsidiary or Securitization Entity), then
that Restricted Subsidiary shall become a Subsidiary Guarantor and (i) execute
a supplemental indenture and a joinder agreement to the Collateral Documents
(or any additional security documents) in form and substance reasonably satisfactory
to the Trustee providing that such Subsidiary shall become a Subsidiary
Guarantor under this Indenture and a party as grantor to the Collateral Documents,
(ii) deliver an opinion of counsel satisfactory to the Trustee, in each
case, within 5 Business Days of the date on which it was acquired or created
and (iii) take all actions required by the Collateral Documents to perfect
the Liens created thereunder.

 

(b)           The Company and each Subsidiary Guarantor will do or cause
to be done all acts and things which may be required, or which the Trustee from
time to time may reasonably request, to assure and confirm that the Collateral
Agent holds, for the benefit of the Note holders, duly created, enforceable and
perfected first-priority Liens (subject to Permitted Liens) upon all property,
whether real, personal (including after-acquired personal property) or mixed,
of the Company and the Guarantors.

 

(c)           Upon request of the Trustee at any time and from time to
time, the Company and each Subsidiary Guarantor will promptly execute,
acknowledge and deliver such security documents, instruments, certificates,
notices and other documents and take such other actions as shall be required or
which the Trustee may reasonably request to grant, perfect or maintain the
priority of (subject to Permitted Liens) the Liens and benefits intended to be
conferred as contemplated by the Collateral Documents for the benefit of the
holders of the Notes.

 

(d)           The Company and the Subsidiary Guarantors shall maintain
with financially sound and reputable insurance companies, insurance (including,
with respect to any area identified by the Federal Emergency Management Agency
(or any successor agency) as a Special Flood Hazard Area with respect to which
flood insurance has been made available under the National Flood Insurance Act
of 1968 (as now or hereafter in effect or successor act thereto), flood
insurance) on their property and assets (including the Collateral) in at least
such amounts, with such deductibles and against at least such risks as is customary
for companies of the same or similar size engaged in the same or similar
businesses as those of the Company and the Subsidiary Guarantors and furnish to
the Trustee, upon written request, full information as to its property and liability
insurance carriers in form and substance
reasonably satisfactory to 

 

62

 

the Trustee. The Trustee
shall be named as an additional insured on all liability insurance policies of
the Company and their Restricted Subsidiaries and the Trustee shall be named as
loss payee on all property and casualty insurance policies of each such Person.

 

SECTION 3.12.            Limitation on Line of Business.  The Company shall not, and shall not permit
any of its Restricted Subsidiaries to, engage in any business other than a
Related Business.

 

SECTION 3.13.            Compliance Certificate.  The Company shall deliver to the Trustee
within 120 days after the end of each fiscal year of the Company (commencing
with the fiscal year ending December 31, 2010) an Officers’ Certificate
stating whether or not the signers know of any Default or Event of Default that
occurred during such period.  If they do,
the certificate shall describe the Default or Event of Default, its status and
what action the Company is taking or proposes to take with respect thereto.

 

SECTION 3.14.            Statement by Officers as to
Default.  The Company shall deliver
to the Trustee, within 30 days after the knowledge thereof if such event is
still continuing, written notice in the form of an Officers’ Certificate of any
Event of Default or any event which, with notice or the lapse of time or both,
would constitute an Event of Default under Section 6.1(a)(i), (ii),
(iii), (iv), (v), (vi), (ix), (x), (xi)
or (xii), which shall include their status and what action the Company
is taking or proposing to take in respect thereof.

 

SECTION 3.15.            Post-Closing Obligations and After-Acquired Collateral.

 

(a)            Promptly following the acquisition by the Company or any
Guarantor after the Issue Date of (i) any after-acquired assets,
including, but not limited to, any after-acquired Material Real Property or any
equipment or fixtures which constitute accretions, additions or technological
upgrades to the equipment or fixtures or any working capital assets that, in
any such case, form part of the Collateral, or (ii) any replacement assets
in compliance with Section 3.7 hereof, the Company or such
Guarantor shall execute and deliver, (x) with regard to any Material Real
Property, within 90 days of the acquisition thereof, such mortgages, deeds of
trust, security instruments, title insurance policies, surveys, financing
statements, and certificates and opinions of counsel as shall be reasonably
necessary to vest in the Collateral Agent a perfected security interest, and (y) to
the extent required by the Collateral Documents, any information,
documentation, financing statements or other certificates and opinions of
counsel as may be necessary to vest in the Collateral Agent a perfected
security interest, subject only to Permitted Liens, in such after-acquired
property (other than Excluded Property) and to have such after-acquired
property added to the Collateral, and thereupon all provisions of this
Indenture and the Collateral Documents relating to the Collateral shall be
deemed to relate to such after-acquired property to the same extent and with
the same force and effect.

 

(b)           The Company shall, and shall cause each applicable
Subsidiary Guarantor to, within ninety (90) days after the Issue Date, deliver
to the Trustee and the Collateral Agent each of the following:

 

(i)                 Title Insurance. With respect to
each Mortgage encumbering any Mortgaged Property, a 2006 ALTA policy of title
insurance (or commitment to issue such a policy having the effect of a loan policy
of title insurance) insuring (or committing to insure) the lien of such
Mortgage as a valid and enforceable first-priority mortgage or deed of trust
lien on the fee estate of each Mortgaged Property described therein, in an
amount not less than 115% of the greater of cost or book value of such
Mortgaged Property as specified on Annex A attached hereto (such policies collectively,
the “Mortgage Policies”) issued by such title insurance company, which
reasonably assures the 

 

63

 

Collateral Agent that the
Mortgages on such Mortgaged Properties are valid and enforceable mortgage liens
on the respective Mortgaged Properties, free and clear of all defects and encumbrances
except Permitted Liens and such Mortgage Policies shall otherwise be in form
and substance reasonably satisfactory to the Collateral Agent and shall include
such title endorsements as the Collateral Agent shall reasonably request (to
the extent applicable and available under local/state law at commercially
reasonable rates) (it being understood that such policy or policies may include
a so-called “pro tanto” endorsement effectively causing such policy or policies
to be issued concurrently with the policy or policies issued to (i) the
collateral agent insuring its Lien on the Mortgaged Properties pursuant to the
Credit Agreement and (ii) the collateral agent insuring its Lien on the
Mortgaged Properties pursuant to Parent’s existing 10 1/2% Senior Discount
Notes due 2012 in connection with the Parent Exchange Offer) on matters
relating to usury, first loss, last dollar, contiguity, doing business,
nonimputation, public road access, survey, variable rate, environmental lien,
subdivision, mortgage recording tax, separate tax lot, so-called comprehensive
coverage over covenants and restrictions, zoning (or, in lieu thereof, reports
from zoning report companies or zoning letters as may be reasonably acceptable
to the Collateral Agent), waiver of arbitration, “me too” coverage relating to
co-insurance and/or re-insurance arrangements (if applicable) and “cluster” or “tie-in”
coverage.

 

(ii)                Survey.
Parent and the Company shall deliver to the applicable title
insurance company any and all surveys (or in the alternative, ExpressMaps issued by First American Title
Insurance Company Express Map Division in form and substance reasonably
acceptable to the Representative) and any and all affadavits as may be
reasonably necessary to cause such title insurance company to issue the title
insurance required pursuant to clause (i) above.

 

(iii) Consents. With respect to the Mortgaged
Property, such consents, approvals or tenant subordination agreements, as
necessary to consummate the transactions or as shall reasonably be deemed
necessary by the Collateral Agent in order for the owner of such Mortgaged
Property to grant the lien contemplated by the Mortgage.

 

(iv) Mortgaged Property Indemnification. With
respect to each Mortgaged Property, such affidavits, certificates, instruments
of indemnification and other items (including a so-called “gap”
indemnification) as shall be reasonably required to induce the title insurance
company to issue the Mortgage Policy/ies and endorsements contemplated above.

 

(v) Collateral Fees and Expenses. Evidence
reasonably acceptable to the Collateral Agent of payment by the Company of all
Mortgage Policy premiums, search and examination charges and issuance of the
Mortgage Policies referred to above.

 

(vi) If
necessary (or to the extent as shall reasonably be deemed necessary by the
Collateral Agent) amendments to the Mortgages duly authorized, executed and
acknowledged, in recordable form and otherwise in form and substance reasonably
acceptable to the Collateral Agent with respect to each Mortgaged Property
sufficient for the owner of such Mortgaged Property to (x) grant to the
Collateral Agent and/or confirm the Collateral Agent’s Mortgage lien on and
security interests in such Mortgaged (y) confirm such owner’s right and
indefeasible title thereto and (z) confirm the Mortgaged Property to be
encumbered thereby.

 

64

 

SECTION 3.16.            Limitation on Sales or Issuances
of Capital Stock of Restricted Subsidiaries.

 

(a)           The Company and shall not permit any Restricted Subsidiary
(other than a Securitization Entity) to, sell, lease, transfer or otherwise
dispose of (other than the granting of any Lien permitted under the terms of
this Indenture) any Capital Stock of any Restricted Subsidiary to any Person
(other than the Company or a Wholly Owned Subsidiary or, if necessary, shares
of its Capital Stock constituting directors’ or other legally required
qualifying shares), and

 

(b)           The Company shall not permit any Restricted Subsidiary
(other than a Securitization Entity) to issue any of its Capital Stock (other
than, if necessary, shares of its Capital Stock constituting directors’ or
other legally required qualifying shares) to any Person (other than to the
Company or a Wholly Owned Subsidiary), unless:

 

(i)      immediately after giving
effect to such issuance, sale or other disposition, neither the Company nor any
of its Subsidiaries owns any Capital Stock of such Restricted Subsidiary; or

 

(ii)     immediately after giving
effect to such issuance, sale or other disposition, such Restricted Subsidiary
would no longer constitute a Restricted Subsidiary and any Investment in such
Person remaining after giving effect thereto is treated as a new Investment by
the Company and such Investment would be permitted to be made pursuant to Section 3.4
hereof if made on the date of such issuance, sale or other disposition.

 

ARTICLE
IV

 

Successor
Company and Successor Guarantor

 

SECTION 4.1.              When Company May Merge or
Otherwise Dispose of Assets.

 

(a)           The Company shall not consolidate with or merge with or
into, or convey, transfer or lease, in one transaction or a series of
transactions, directly or indirectly, all or substantially all its assets
(determined on a consolidated basis for the Company and its Restricted
Subsidiaries) to, any Person, unless:

 

(i)      the resulting, surviving
or transferee Person (the “Successor Company”) shall be a Person
organized and existing under the laws of the United States of America, any
State thereof or the District of Columbia and the Successor Company (if not the
Company) shall expressly assume, by an indenture supplemental thereto, executed
and delivered to the Trustee, in form satisfactory to the Trustee, all the
obligations of the Company under the Notes and this Indenture;

 

(ii)     immediately after giving
pro forma effect to such transaction (and treating any Indebtedness which
becomes an obligation of the Successor Company or any Subsidiary as a result of
such transaction as having been Incurred by such Successor Company or such
Subsidiary at the time of such transaction), no Default shall have occurred and
be continuing;

 

(iii)    immediately after giving
pro forma effect to such transaction, either (x) the Successor Company
would be able to Incur an additional $1.00 of Indebtedness pursuant to Section 3.3(a) hereof
or (y) the Consolidated Coverage Ratio would be equal to or greater than
the Consolidated Coverage Ratio immediately prior to such transaction;

 

65

 

(iv)    the Company shall have
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel,
each stating that such consolidation, merger or transfer and such supplemental
indenture (if any) comply with this Indenture;

 

(v)     the Successor Company
causes such amendments, supplements or other instruments to be executed,
delivered, filed and recorded, as applicable, in such jurisdictions as may be
required by applicable law to preserve and protect the Liens created by the
Collateral Documents on the Collateral owned by or transferred to the Successor
Company;

 

(vi)    the Collateral owned by or
transferred to the Successor Company shall (a) constitute Collateral under
this Indenture and the Collateral Documents, (b) be subject to the Lien in
favor of the Collateral Agent for the benefit of the Trustee and the Holders of
the Notes, and (c) not be subject to any Liens other than Permitted Liens;
and

 

(vii)   the property and assets of
the Person which is merged or consolidated with or into the Successor Company,
to the extent that they are property or assets of the types which would constitute
Collateral under the Collateral Documents, shall be treated as after-acquired
property and the Successor Company shall take such action as may be reasonably
necessary to cause such property and assets to be made subject to the Lien of
the Collateral Documents in the manner and to the extent required in this
Indenture.

 

provided, however, (A) that the foregoing shall not prohibit a
Restricted Subsidiary of the Company from merging into or transferring all or
part of its properties and assets to the Company or another Restricted
Subsidiary of the Company and (B) clause (iii) shall not be
applicable to the Company merging with an Affiliate of the Company solely for
the purpose and with the sole effect of reincorporating the Company in another
jurisdiction.

 

For purposes of this Section 4.1, 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.

 

(b)           The Successor Company shall be the successor to the
Company and shall succeed to, and be substituted for, and may exercise every
right and power of, the Company under this Indenture, and the predecessor
Company, except in the case of a lease, shall be released from the obligation
to pay the principal of and interest on the Notes.

 

SECTION 4.2.              When Parent or a Subsidiary
Guarantor May Merge or Otherwise Dispose of Assets.

 

(a)           The Company shall not permit any Subsidiary Guarantor to
consolidate with or merge with or into, or convey, transfer or lease, in one
transaction or a series of transactions, all or substantially all of its assets
to, any Person (other than the Company or another Subsidiary Guarantor) unless:

 

(i)      except in the case of a
Subsidiary Guarantor (x) that has been disposed of in its entirety to
another Person (other than to the Company or an Affiliate of the Company),
whether through a merger, consolidation or sale of Capital Stock or assets, or (y) that,
as a result of the disposition of all or a portion of its Capital Stock, ceases
to be a Subsidiary, in both cases, if in connection 

 

66

 

therewith
the Company provides an Officers’ Certificate to the Trustee to the effect that
the Company shall comply with its obligations pursuant to Section 3.7
hereto in respect of such disposition, the Successor Company (if not such
Subsidiary) shall be a Person organized and existing under the laws of the
jurisdiction under which such Subsidiary was organized or under the laws of the
United States of America, or any State thereof or the District of Columbia,
and, if not a Subsidiary Guarantor, such Person shall expressly assume, by a
Guaranty Agreement, in a form satisfactory to the Trustee, all the obligations
of such Subsidiary, if any, under its Subsidiary Guaranty;;

 

(ii)     immediately after giving
effect to such transaction or transactions on a pro forma basis (and treating
any Indebtedness which becomes an obligation of the resulting, surviving or
transferee Person as a result of such transaction as having been issued by such
Person at the time of such transaction), no Default shall have occurred and be
continuing;

 

(iii)    the Company delivers to
the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating
that such consolidation, merger or transfer and such Guaranty Agreement, if
any, comply with this Indenture;

 

(iv)    the Successor Company causes such
amendments, supplements or other instruments to be executed, delivered, filed
and recorded, as applicable, in such jurisdictions as may be required by
applicable law to preserve and protect the Liens created by the Collateral
Documents on the Collateral owned by or transferred to the Successor Company;

 

(v)     the Collateral owned by or
transferred to the Successor Company shall (a) constitute Collateral under
this Indenture and the Collateral Documents, (b) be subject to the Lien in
favor of the Collateral Agent for the benefit of the Trustee and the Holders of
the Notes, and (c) not be subject to any Liens other than Permitted Liens;
and

 

(vi)    the property and assets of
the Person which is merged or consolidated with or into such Successor Company,
to the extent that they are property or assets of the types which would constitute
Collateral under the Collateral Documents, shall be treated as after-acquired
property and such Person shall take such action as may be reasonably necessary
to cause such property and assets to be made subject to the Lien of the
Collateral Documents in the manner and to the extent required in this Indenture.

 

The Successor Company shall
be the successor to the Guarantor and shall succeed to, and be substituted for,
and may exercise every right and power of, the Guarantor under this Indenture,
and the predecessor Subsidiary Guarantor, except in the case of a lease, shall
be released from the obligation to pay the principal of and interest on the
Notes.

 

(b)           Parent shall not merge with or into,
or convey, transfer or lease, in one transaction or a series of transactions,
all or substantially all of its assets to, any Person unless:

 

(i)      the Successor Company (if
not Parent) shall be a Person organized and existing under the laws of the
jurisdiction under which Parent was organized or under the laws of the United
States of America, or any State thereof or the District of Columbia, and such
Person shall expressly assume all the obligations of Parent, if any, under the
Parent Guaranty;

 

(ii)     immediately after giving
effect to such transaction or transactions on a pro forma basis (and treating
any Indebtedness which becomes an obligation of the resulting, surviving or
transferee 

 

67

 

Person
as a result of such transaction as having been issued by such Person at the
time of such transaction), no Default shall have occurred and be continuing;

 

(iii)    the Company delivers to
the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating
that such consolidation, merger or transfer and such Guaranty Agreement, if
any, complies with this Indenture;

 

(iv)    the Successor Company
causes such amendments, supplements or other instruments to be executed,
delivered, filed and recorded, as applicable, in such jurisdictions as may be
required by applicable law to preserve and protect the Liens created by the
Collateral Documents on the Collateral owned by or transferred to the Successor
Company;

 

(v)     the Collateral owned by or
transferred to the Successor Company shall (a) constitute Collateral under
this Indenture and the Collateral Documents, (b) be subject to the Lien in
favor of the Collateral Agent for the benefit of the Trustee and the Holders of
the Notes, and (c) not be subject to any Liens other than Permitted Liens;
and

 

(vi)    the property and assets of
the Person which is merged or consolidated with or into such Successor Company,
to the extent that they are property or assets of the types which would constitute
Collateral under the Collateral Documents, shall be treated as after-acquired
property and such Person shall take such action as may be reasonably necessary
to cause such property and assets to be made subject to the Lien of the
Collateral Documents in the manner and to the extent required in this Indenture.

 

The Successor Company shall
be the successor to Parent and shall succeed to, and be substituted for, and
may exercise every right and power of, Parent under this Indenture, and the
predecessor Company, except in the case of a lease, shall be released from the
obligation to pay the principal of and interest on the Notes.

 

ARTICLE
V

 

Redemption
of Notes

 

SECTION 5.1.              Optional Redemption.

 

(a)           Except as set forth in Section 5.1(b) and
(c), the Company shall not be entitled to redeem the Notes at its option
prior to March 15, 2013.  On and
after March 15, 2013, the Company shall be entitled to at its option
redeem all or a portion of the Notes upon not less than 30 nor more than 60
days’ notice, at the redemption prices (expressed in percentages of principal
amount on the Redemption Date), plus accrued and unpaid interest to the
Redemption Date (subject to the right of Holders of record on the relevant Record
Date to receive interest due on the relevant Interest Payment Date), if redeemed
during the twelve-month period commencing on March 15 of the years set
forth below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2013

  	
   

  	
  105.625

  	
  %

  
	
  2014

  	
   

  	
  100.000

  	
  %

  

 

(b)           Prior to March 15, 2013,  the Company shall be entitled at its option
on one or more occasions to redeem Notes (which includes Additional Notes, if
any) in an aggregate principal 

 

68

 

amount not to exceed 35% of the aggregate
principal amount of the Notes (which includes Additional Notes, if any) issued
prior to such time at a redemption price (expressed as a percentage of principal
amount as of the date of redemption) of 111.25%, plus accrued and unpaid
interest to the Redemption Date, if any, with the net cash proceeds from one or
more Qualified Equity Offerings (provided that
if the Qualified Equity Offering is an offering by Parent, a portion of the Net
Cash Proceeds thereof equal to the amount required to redeem any such Notes is
contributed to the equity capital of the Company); provided,
however, that:

 

(i)      at least 65% of such
aggregate principal amount of Notes (which includes Additional Notes, if any)
remains outstanding immediately after the occurrence of each such redemption (other
than Notes held, directly or indirectly, by the Company or its Affiliates); and

 

(ii)     each such redemption
occurs within 90 days after the date of the related Qualified Equity
Offering.

 

(c)           In addition, at any time prior to March 15, 2013, the
Company may redeem the Notes, in whole or in part, at a redemption price equal
to 100% of the principal amount thereof plus the Applicable Premium, plus
accrued and unpaid interest, if any, and additional interest thereon, if any,
to, but excluding, the Redemption Date (subject to the right of Holders of
record on the relevant Record Date to receive interest due on the relevant
Interest Payment Date).

 

SECTION 5.2.              Election to Redeem; Notice to
Trustee of Optional and Mandatory Redemptions.  If the Company elects to redeem Notes
pursuant to Section 5.1, the Company shall furnish to the Trustee,
at least 5 Business Days before notice of redemption is required to be mailed
or caused to be mailed to Holders pursuant to Section 5.4, an
Officers’ Certificate setting forth (a) the paragraph or subparagraph of
such Note and/or Section of this Indenture pursuant to which the
redemption shall occur, (b) the Redemption Date, (c) the principal
amount of the Notes to be redeemed and (d) the redemption price.  The Company shall deliver to the Trustee such
documentation and records as shall enable the Trustee to select the Notes to be
redeemed pursuant to Section 5.3.

 

SECTION 5.3.              Selection by Trustee of Notes
to Be Redeemed.  In the case of any
partial redemption, selection of the Notes for redemption shall be made by the
Trustee in compliance with the requirements of the principal national
securities exchange, if any, on which the Notes are listed or, if the Notes are
not listed, then on as nearly a pro rata basis
as possible (subject to such rounding as the Trustee may determine so that
Notes are redeemed in whole increments of $1,000 and no Note of $2,000 in principal
amount or less shall be redeemed in part), and in accordance with applicable
procedures of DTC.  If any Note is to be
redeemed in part only, the notice of redemption relating to such note shall
state the portion of the principal amount thereof to be redeemed.  A new Note in principal amount equal to the
unredeemed portion thereof shall be issued in the name of the Holder thereof
upon cancellation of the original Note in accordance with Section 5.7.

 

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

 

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

 

69

 

SECTION 5.4.              Notice of Redemption.  The Company shall 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 not less than 30 nor more than 60 days
prior to a date fixed for redemption (a “Redemption Date”), to each
Holder of Notes to be redeemed.  The
Trustee shall give notice of redemption in the Company’s name and at the
Company’s expense; provided, however, that redemption notices may be mailed more than 60
days prior to a Redemption Date if the notice is issued in connection with Article VIII.

 

All notices of redemption
shall state:

 

(a)           the Redemption Date,

 

(b)           the redemption price and the amount of accrued interest,
if any, to, but excluding, the Redemption Date payable as provided in Section 5.6,
if any,

 

(c)           if less than all outstanding Notes are to be redeemed, the
identification of the particular Notes (or portion thereof) to be redeemed, as
well as the aggregate principal amount of Notes to be redeemed and the
aggregate principal amount of Notes to be outstanding after such partial
redemption,

 

(d)           in case any Note is to be redeemed in part only, the
notice which relates to such Note shall state that on and after the Redemption
Date, upon surrender of such Note, the Holder shall receive, without charge, a
new Note or Notes of authorized denominations for the principal amount thereof
remaining unredeemed,

 

(e)           that on the Redemption Date the redemption price (and
accrued interest, if any, to, but excluding, the Redemption Date payable as
provided in Section 5.6) shall become due and payable upon each
such Note, or the portion thereof, to be redeemed, and, unless the Company
defaults in making the redemption payment, that interest on Notes called for
redemption (or the portion thereof) shall cease to accrue on and after said
date,

 

(f)            the place or places where such Notes are to be
surrendered for payment of the redemption price and accrued interest, if any,

 

(g)           the name and address of the Paying Agent,

 

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

 

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

 

(j)            the Section of this Indenture pursuant to which the
Notes are to be redeemed.

 

SECTION 5.5.              Deposit of Redemption Price.  Prior to 10:00 a.m. New York City time,
on any Redemption Date, the Company shall deposit with the Trustee or with a
Paying Agent (or, if the Company is acting as its own Paying Agent, segregate
and hold in trust as provided in Section 2.4) an amount of money
sufficient to pay the redemption price of, and accrued interest on, all the
Notes which are to be redeemed on that date.

 

70

 

SECTION 5.6.              Notes Payable on Redemption
Date.  Notice of redemption having
been given as aforesaid, the Notes so to be redeemed shall, on the Redemption
Date, become due and payable at the redemption price therein specified
(together with accrued interest, if any, to, but excluding, the Redemption
Date) (except as provided for in the last paragraph of Section 5.1(b)),
and from and after such date (unless the Company shall default in the payment
of the redemption price and accrued interest) such Notes shall cease to bear
interest.  Upon surrender of any such
Note for redemption in accordance with said notice, such Note shall be paid by
the Company at the redemption price, together with accrued interest, if any,
to, but excluding, the Redemption Date (subject to the rights of Holders of
record on the relevant Record Date to receive interest due on the relevant
Interest Payment Date).

 

If any Note called for redemption shall not be so
paid upon surrender thereof for redemption, the principal (and premium, if any)
shall, until paid, bear interest from the Redemption Date at the rate borne by
the Notes.

 

If a Redemption Date is on or after a Record Date
and on or before the related Interest Payment Date, the accrued and unpaid
interest, if any, shall be paid to the Person in whose name the Note is
registered at the close of business on such Record Date, and no additional interest
shall be payable to Holders whose Notes shall be subject to redemption by the
Company.

 

SECTION 5.7.              Notes Redeemed in Part.  Any Note which is to be redeemed only in part
(pursuant to the provisions of this Article) shall be surrendered at the office
or agency of the Company maintained for such purpose pursuant to Section 2.3
(with, if the Company so requires, due endorsement by, or a written instrument
of transfer in form satisfactory to the Company duly executed by, the Holder
thereof or such Holder’s attorney duly authorized in writing), and the Company
shall execute, and the Trustee shall authenticate and make available for
delivery to the Holder of such Note at the expense of the Company, a new Note
or Notes, of any authorized denomination as requested by such Holder, in an
aggregate principal amount equal to and in exchange for the unredeemed portion
of the principal of the Note so surrendered, provided
that each such new Note shall be in a principal amount of $2,000 and integral
multiples of $1,000 in excess thereof.

 

ARTICLE
VI

 

Defaults
and Remedies

 

SECTION 6.1.              Events of Default.

 

(a)           Each of the following is an event of
default (an “Event of Default”):

 

(i)      a default in the payment
of interest on the Notes when due, and such default continues for a period of
30 days;

 

(ii)     a default in payment of
the principal of any Note when due at its Stated Maturity, upon optional
redemption, upon required purchase, upon declaration of acceleration or otherwise;

 

(iii)    the failure by the
Company, Parent or any Subsidiary Guarantor to comply with its obligations
under Article IV;

 

(iv)    the failure by the Company
or any Subsidiary Guarantor to comply for 30 days after notice as provided
below with any of its obligations under Sections 3.2, 3.3, 3.4,
3.5, 3.6, 3.7 (other 

 

71

 

than
a failure to purchase the Notes), 3.8, 3.9 (other than a failure
to purchase the Notes), 3.11, 3.12 and 3.16;

 

(v)     the failure by the Company
or any Subsidiary Guarantor to comply for 60 days after notice as provided
below with its other agreements (except as provided in clauses (a)(i) through
(a)(iv) of this Section 6.1) contained in this Indenture, the
Notes or the Collateral Documents;

 

(vi)    Indebtedness of the
Company or any Significant Subsidiary is not paid within any applicable grace
period after final maturity or is accelerated by the holders thereof because of
a default and the total amount of such Indebtedness unpaid or accelerated exceeds
$10.0 million (the “cross acceleration provision”);

 

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

 

(1)           commences a
voluntary case;

 

(2)           consents to the
entry of an order for relief against it in any voluntary case;

 

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

 

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

 

or takes any comparable
action under any foreign laws relating to insolvency.

 

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

 

(1)           is for relief
against Parent, the Company or any Significant Subsidiary in an involuntary
case;

 

(2)           appoints a Custodian
of Parent, the Company or any Significant Subsidiary or for any substantial
part of its property; or

 

(3)           orders the winding
up or liquidation of the Company or any Significant Subsidiary;

 

or any similar relief is
granted under any foreign laws and the order or decree remains unstayed and in
effect for 60 days;

 

(ix)    any judgment or decree for
the payment of money in excess of $10.0 million (excluding the amount of
any insurance proceeds or indemnification claims available to the obligor from
insurance carriers and indemnitors who in the reasonable judgment of the Board
of Directors of the Company are creditworthy and who have acknowledged their
liability with respect thereto) is entered against the Company or any
Significant Subsidiary, remains outstanding for a period of 60 consecutive days
following such judgment and is not paid, discharged, waived or stayed (the “judgment
default provision”);

 

72

 

(x)     any Subsidiary Guaranty of
a Significant Subsidiary or group of Restricted Subsidiaries that taken
together as of the latest audited consolidated financial statements for the
Company and their Restricted Subsidiaries would constitute a Significant Subsidiary
ceases to be in full force and effect (other than in accordance with the terms
of the Parent Guaranty or such Subsidiary Guaranty) and such default continues
for five Business Days or any Subsidiary Guarantor denies or disaffirms its
obligations under its Subsidiary Guaranty; or

 

(xi)    with respect to any
Collateral having a fair market value in excess of $5.0 million
individually or in the aggregate, the applicable Collateral Document or
Collateral Documents, in each case, of Parent, the Company or a Significant
Subsidiary or group of Restricted Subsidiaries that taken together as of the
latest audited consolidated financial statements for the Company and their
Restricted Subsidiaries would constitute a Significant Subsidiary ceases to be
in full force and effect (except as contemplated by the terms of this Indenture
and the Guarantees) or is declared null and void in a judicial proceeding or
Parent, the Company or any Subsidiary Guarantor that is a Significant
Subsidiary or group of Subsidiary Guarantors that taken together as of the
latest audited consolidated financial statements of Parent, the Company and
their Restricted Subsidiaries would constitute a Significant Subsidiary denies
or disaffirms its obligations under this Indenture, its Guarantee or any
Collateral Document; and

 

(xii)   with respect to any
Collateral having a fair market value in excess of $5.0 million
individually or in the aggregate, (A) the failure of the security interest
with respect to such Collateral under the Collateral Documents, at any time, to
be in full force and effect for any reason other than in accordance with their
terms and the terms of this Indenture and other than the satisfaction in full
of all obligations under this Indenture and discharge of this Indenture if such
failure continues for 60 days or (B) the assertion by Parent, the
Company or any Subsidiary Guarantor, in any pleading in any court of competent
jurisdiction, that any such security interest is invalid or unenforceable,
except in each case for the failure or loss of perfection resulting from the
failure of the Trustee to make filings, renewals and continuations (or other
equivalent filings) which are required to be made or the failure of the Trustee
to maintain possession of certificates actually delivered to it representing
securities pledged under the Collateral Documents.

 

The foregoing shall constitute Events of Default
whatever the reason for any such Event of Default and whether it is voluntary
or involuntary or is effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body.

 

Notwithstanding the foregoing, to the extent elected
by the Company, the sole remedy for an Event of Default relating to the failure
to comply with the reporting obligations in Section 3.2 hereof,
shall, for the 365 days after the occurrence of such an Event of Default,
consist exclusively of the right to receive additional interest on the Notes at
an annual rate equal to 0.50% of the principal amount of the Notes. This
additional interest shall be payable in the same manner and on the same dates
as the stated interest payable on the Notes. The additional interest shall
accrue on all outstanding Notes from, and including, the date on which an Event
of Default relating to a failure to comply with Section 3.2 hereof first
occurs to, but not including, the 365th day thereafter (or such earlier
date on which the Event of Default relating to Section 3.2 shall
have been cured or waived). On such 365th day (or earlier, if an Event of
Default relating to Section 3.2 is cured or waived prior to such
365th day), such additional interest shall cease to accrue and the Notes
shall be subject to acceleration as provided below. If the Company does not
elect to pay additional interest during the continuance of such an Event of
Default, as applicable, in 

 

73

 

accordance with this paragraph, or if such
Event of Default is continuing on such 365th day, the Notes shall be subject
to acceleration as provided above.

 

Notwithstanding the foregoing, a default under
clause (iv) or (v) of this Section 6.1(a) shall 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 in clause (iv) and
(v) of this paragraph after receipt of such notice.  Such notice must specify the Default, demand
that it be remedied and state that such notice is a “Notice of Default.”

 

The term “Bankruptcy Law” means Title 11,
United States Code, or any similar Federal or state law for the relief of
debtors.  The term “Custodian”
means any receiver, trustee, assignee, liquidator, custodian or similar
official under any Bankruptcy Law.

 

SECTION 6.2.              Acceleration.  If an Event of Default (other than an Event
of Default specified in Sections 6.1(a)(vii) or (viii) above
with respect to the Company) occurs and is continuing, the Trustee or the
Holders of at least 25% in principal amount of the outstanding Notes may
declare the principal of, premium, if any, and accrued but unpaid interest on
all the Notes to be due and payable. Upon such a declaration, such principal,
premium, if any, and interest shall be due and payable immediately. Under
certain circumstances, the Holders of a majority in principal amount of the
outstanding Notes may rescind any such acceleration with respect to the Notes
and its consequences. In case an Event of Default set forth in Section 6.1(a)(vii) or
(viii) above shall occur with respect to the Company, the
principal, premium, if any, and interest amount with respect to all of the
Notes shall be due and payable immediately without any declaration or other act
on the part of the Trustee or the Noteholders.

 

SECTION 6.3.              Other Remedies.  If an Event of Default occurs and is
continuing, the Trustee may pursue any available remedy to collect the payment
of principal of or interest on the Notes or to enforce the performance of any
provision of the Notes, this Indenture (including sums owed to the Trustee and
Collateral Agent and their agents and counsel), the Guarantees, Collateral Documents,
the First Lien Intercreditor Agreement or the Junior Lien Intercreditor Agreement.

 

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 in exercising any right or remedy accruing upon an Event
of Default shall not impair the right or remedy or constitute a waiver of or
acquiescence in the Event of Default.  No
remedy is exclusive of any other remedy. 
All available remedies are cumulative.

 

SECTION 6.4.              Waiver of Past Defaults.  The Holders of a majority in principal amount
outstanding (including without limitation, consents obtained in connection with
a purchase of, or tender offer or exchange offer for, notes) Notes by notice to
the Trustee may waive an existing Default or Event of Default and its consequences
(except a Default or Event of Default in the payment of the principal of,
premium, if any, or interest on a Note) and rescind any such acceleration with
respect to the Notes and its consequences if (1) rescission would not
conflict with any judgment or decree of a court of competent jurisdiction and (2) all
existing Events of Default, other than the nonpayment of the principal of, premium,
if any, and interest on the Notes that have become due solely by such
declaration of acceleration, have been cured or waived.

 

SECTION 6.5.              Control by Majority.  The Holders of a majority in principal amount
of the then outstanding Notes may direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee or of
exercising any trust or power conferred on the Trustee.  The 

 

74

 

Trustee, however, may refuse to follow any
direction that conflicts with law or this Indenture or that the Trustee
determines is unduly prejudicial to the rights of any other Noteholders or that
would involve the Trustee in personal liability.

 

SECTION 6.6.              Limitation on Suits.  Except to enforce the right to receive payment
of principal, premium, if any, or interest when due, no Holder may pursue any
remedy with respect to this Indenture or the Notes unless:

 

(i)      the Holder has previously
given to the Trustee written notice stating that an Event of Default is
continuing;

 

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

 

(iii)    such Holder or Holders
have offered to the Trustee security or indemnity reasonably satisfactory to it
against any loss, liability or expense;

 

(iv)    the Trustee has not
complied with the request within 60 days after receipt of the request and the
offer of security or indemnity; and

 

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

 

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

 

SECTION 6.7.              Rights of Holders to Receive
Payment.  Notwithstanding any other
provision of this Indenture, the right of any Holder to receive payment of
principal of, premium (if any) or interest on the Notes held by such Holder, on
or after the respective due dates expressed in the Notes, or to bring suit for
the enforcement of any such payment on or after such respective dates, shall
not be impaired or affected without the consent of such Holder.

 

SECTION 6.8.              Collection Suit by Trustee.  If an Event of Default specified in Section 6.1(a)(i) or
(ii) occurs and is continuing, the Trustee may recover judgment in
its own name and as trustee of an express trust against the Company for the
whole amount then due and owing (together with interest on any unpaid interest
to the extent lawful) and the amounts provided for in Section 7.6.

 

SECTION 6.9.              Trustee May File Proofs of
Claim.  The Trustee may file such
proofs of claim and other papers or documents as may be necessary or advisable
in order to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel) and the Holders allowed in any judicial proceedings
relative to Parent, the Company, its Subsidiaries or their respective creditors
or properties and, unless prohibited by law or applicable regulations, may vote
on behalf of the Holders in any election of a trustee in bankruptcy or other
Person performing similar functions, and any Custodian in any such judicial
proceeding is hereby authorized by each Holder to make payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments
directly to the Holders, to pay to the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and its counsel, and any other amounts due the Trustee under Section 7.6.  Nothing herein contained shall be 

 

75

 

deemed to authorize the Trustee to authorize
or consent to or accept or adopt on behalf of any Holder any plan or
reorganization, arrangement, adjustment or composition affecting the Notes or
the rights of any Holder thereof, or to authorize the Trustee to vote in
respect of the claim of any Holder in such proceeding.

 

SECTION 6.10.            Priorities.  Subject to the terms of the First Lien
Intercreditor Agreement, Collateral Documents and Section 11.4(f),
the Trustee shall pay out any money or property received by it, whether
pursuant to the foreclosure or other remedial provisions contained in the
Collateral Documents or otherwise, in the following order:

 

First:  to the Trustee and Collateral Agent for
amounts due to each of them under Section 7.6 and under the
Collateral Documents;

 

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

 

Third:  to Parent or to the Company or, to the extent
the Trustee receives any amount for any Subsidiary Guarantor, to such
Subsidiary Guarantor.

 

The Trustee may fix a record date and payment date
for any payment to Holders pursuant to this Section.  At least 15 days before such record date, the
Company shall mail to each Holder and the Trustee a notice that states the
record date, the payment date and amount to be paid.

 

SECTION 6.11.            Undertaking for Costs.  In any suit for the enforcement of any right
or remedy under this Indenture or in any suit against the Trustee for any
action taken or omitted by it as Trustee, a court in its discretion may require
the filing by any party litigant in the suit of an undertaking to pay the costs
of the suit, and the court in its discretion may assess reasonable costs, including
reasonable attorneys’ fees and expenses, against any party litigant in the
suit, having due regard to the merits and good faith of the claims or defenses
made by the party litigant.  This Section does
not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.7
or a suit by Holders of more than 10% in outstanding principal amount of the
Notes.

 

ARTICLE
VII

 

Trustee

 

SECTION 7.1.              Duties of Trustee and
Collateral Agent.

 

(a)           If an Event of Default has occurred and is continuing, the
Trustee or the Collateral Agent shall exercise the rights and powers vested in
it by this Indenture, the Collateral Documents, the First Lien Intercreditor
Agreement and the Junior Lien Intercreditor Agreement, as the case may be, and
use the same degree of care and skill in their exercise as a prudent Person
would exercise or use under the circumstances in the conduct of such Person’s
own affairs; provided that if an
Event of Default occurs and is continuing, the Trustee and the Collateral Agent
shall be under no obligation to exercise any of the rights or powers under this
Indenture, the Notes, the Guarantees, the Collateral Documents, the First Lien
Intercreditor Agreement and the Junior Lien Intercreditor Agreement at the request
or direction of any of the Holders unless such Holders have offered the Trustee
or the Collateral Agent indemnity, security or 

 

76

 

prefunding satisfactory to the Trustee or the
Collateral Agent in its sole discretion, as applicable, against loss, liability
or expense.

 

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

 

(i)      the Trustee or the
Collateral Agent undertake to perform such duties and only such duties as are
specifically set forth in this Indenture, the Collateral Documents, the First
Lien Intercreditor Agreement and the Junior Lien Intercreditor Agreement and no
implied covenants or obligations shall be read into this Indenture, any
Collateral Document and the Intercreditor Agreement against the Trustee or the
Collateral Agent; and

 

(ii)     in the absence of gross
negligence or bad faith on its part, the Trustee or Collateral Agent 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 or Collateral Agent under this Indenture, the Notes, the Guarantees,
the Collateral Documents, the First Lien Intercreditor Agreement and the Junior
Lien Intercreditor Agreement, as applicable. 
However, in the case of any such certificates or opinions which by any
provisions hereof are specifically required to be furnished to the Trustee or
the Collateral Agent, the Trustee or the Collateral Agent shall examine such
certificates and opinions to determine whether or not they conform to the
requirements of this Indenture, the Notes, the Guarantees, the Collateral
Documents, the First Lien Intercreditor Agreement and the Junior Lien
Intercreditor Agreement, as the case may be (but need not confirm or
investigate the accuracy of mathematical calculations or other facts stated
therein).

 

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

 

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

 

(ii)     neither the Trustee nor
the Collateral Agent shall be liable for any error of judgment made in good
faith by a Trust Officer or Trust Officers unless it is proved that the Trustee
or the Collateral Agent was negligent in ascertaining the pertinent facts; and

 

(iii)    neither the Trustee nor
the Collateral Agent shall 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 6.5.

 

(iv)    The Collateral Agent shall
not have any fiduciary or other implied duties of any kind or nature to any
person, regardless of whether an Event of Default has occurred and is continuing.

 

(d)           The Trustee and the Collateral Agent shall not be liable
for interest on any money received by it except as the Trustee and the
Collateral Agent may agree in writing with the Company.

 

(e)           Money held in trust by the Trustee or the Collateral Agent
need not be segregated from other funds except to the extent required by law.

 

(f)            No provision of this Indenture, the Notes, the
Guarantees, the Collateral Documents, the First Lien Intercreditor Agreement or
the Junior Lien Intercreditor Agreement shall require the Trustee or the
Collateral Agent to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder or
thereunder or in the exercise of any of its rights or 

 

77

 

powers, if it shall have reasonable grounds
to believe that repayment of such funds or adequate indemnity against such risk
or liability is not reasonably assured to it.

 

(g)           Every provision of this Indenture, the Collateral
Documents, the First Lien Intercreditor Agreement or the Junior Lien
Intercreditor Agreement relating to the conduct or affecting the liability of
or affording protection to the Trustee and the Collateral Agent shall be
subject to the provisions of this Section.

 

(h)           The Trustee and the Collateral Agent shall be under no
obligation to exercise any of the rights or powers vested in it by this
Indenture at the request or direction of any of the Holders unless such Holders
shall have offered to the Trustee or the Collateral Agent, as applicable,
security, prefunding or indemnity reasonably satisfactory to it against the
costs, expenses (including reasonable attorneys’ fees and expenses) and
liabilities that might be incurred by it in compliance with such request or
direction.

 

SECTION 7.2.              Rights of Trustee and Collateral
Agent.

 

(a)           Each of the Trustee and the Collateral Agent may
conclusively rely and shall be protected in acting upon any resolution,
certificate, statement, instrument, opinion, notice, request, direction, consent,
order, bond or any other paper or document believed by it to be genuine and to
have been signed or presented by the proper Person or Persons.  The Trustee and the Collateral Agent need not
investigate any fact or matter stated in the document.

 

(b)           Before the Trustee or the Collateral Agent acts or
refrains from acting, it may require an Officers’ Certificate or an Opinion of
Counsel.  Neither the Trustee nor the
Collateral Agent shall be liable for any action it takes or omits to take in
good faith in reliance on an Officers’ Certificate or Opinion of Counsel.

 

(c)           Each of the Trustee and the Collateral Agent may act
through its attorneys and agents and shall not be responsible for the
misconduct or negligence of any agent or attorney appointed with due care.

 

(d)           Each of the Trustee and the Collateral Agent shall not be
liable for any action it takes or omits to take in good faith (in the case of
the Trustee) which it believes to be authorized or within its rights or powers;
provided, however, that
the Trustee’s or the Collateral Agent’s conduct, respectively, does not
constitute willful misconduct or negligence.

 

(e)           Each of the Trustee and the Collateral Agent may consult
with counsel of its selection, and the advice or opinion of counsel with
respect to legal matters relating to this Indenture, the Notes, the Guarantees,
the Collateral Documents, the First Lien Intercreditor Agreement and the Junior
Lien Intercreditor Agreement shall be full and complete authorization and
protection from liability in respect to any action taken, omitted or suffered
by it hereunder or under the Notes, the Guarantees, the Collateral Documents,
the First Lien Intercreditor Agreement and the Junior Lien Intercreditor
Agreement in good faith and in accordance with the advice or opinion of such
counsel.

 

(f)            The Trustee and the Collateral Agent shall not be bound
to make any investigation into any statement, warranty or representation, or
the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, notice, request, direction, consent, order, bond or other
paper or document made or in connection with this Indenture, any other
Collateral Document or the Intercreditor 

 

78

 

Agreement; moreover, the Trustee and the
Collateral Agent shall not be bound to make any investigation into (i) the
performance or observance of any of the covenants, agreements or other terms or
conditions set forth herein, in any other Collateral Document, the First Lien
Intercreditor Agreement or the Junior Lien Intercreditor Agreement, (ii) the
occurrence of any default, or the validity, enforceability, effectiveness or
genuineness of this Indenture, any other Collateral Document, the First Lien
Intercreditor Agreement, the Junior Lien Intercreditor Agreement or any other
agreement, instrument or document, (iii) the creation, perfection or
priority of any Lien purported to be created by the Collateral Documents, (iv) the
value or the sufficiency of any Collateral, (v) the satisfaction of any
condition set forth in any Collateral Document, other than to confirm receipt
of items expressly required to be delivered to the Collateral Agent or (vi) the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture,
note other evidence of indebtedness or other paper or document, but each of the
Trustee and the Collateral Agent, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit, and, if
the Trustee or the Collateral Agent shall determine to make such further
inquiry or investigation, it shall be entitled to examine the books, records
and premises of the Company, personally or by agent or attorney and shall incur
no liability or additional liability of any kind by reason of such inquiry or
investigation.  The Trustee and the
Collateral Agent shall have no liability with respect to any action or inaction
taken by or with respect to any Sub-Collateral Agent (as defined in the Security
Agreement).

 

(g)           The Trustee shall not be deemed to have knowledge of any
Default or Event of Default except any Default or Event of Default of which a
Trust Officer shall have (x) received written notification at the
Corporate Trust Office of the Trustee and such notice references the Notes and
this Indenture or (y) obtained “actual knowledge.”  “Actual knowledge” shall mean the
actual fact or statement of knowing by a Trust Officer without independent
investigation with respect thereto.

 

(h)           In no event shall the Trustee or the Collateral Agent be
responsible or liable for special, indirect, or consequential loss or damage of
any kind whatsoever (including, but not limited to, loss of profit)
irrespective of whether the Trustee or the Collateral Agent has been advised of
the likelihood of such loss or damage and regardless of the form of action.

 

(i)            The rights, privileges, protections, immunities and
benefits given to the Trustee, including, without limitation, its right to be
indemnified, are extended to, and shall be enforceable by, the Trustee in each
of its capacities hereunder, the Collateral Agent, and each agent, custodian
and other Person employed to act hereunder and under the Collateral Documents,
the First Lien Intercreditor Agreement and the Junior Lien Intercreditor Agreement.

 

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

 

SECTION 7.3.              Individual Rights of Trustee
and Collateral Agent.  Subject to the
TIA each of the Trustee and the Collateral Agent in its individual or any other
capacity may become the owner or pledgee of Notes and may otherwise deal with Parent,
the Company, the Subsidiary Guarantors or their Affiliates with the same rights
it would have if it were not Trustee or Collateral Agent, respectively.  Any Paying Agent, Registrar, co-registrar or
co-paying agent may do the same with like rights.  However, the Trustee must comply with Section 7.9.  In addition, the Trustee shall be permitted
to engage in transactions with the Company; provided, however,
that if the Trustee acquires any conflicting interest the Trustee must (i) eliminate
such conflict within 90 days of acquiring such conflicting interest, (ii) apply
to the SEC for permission to continue acting as Trustee or (iii) resign.

 

79

 

SECTION 7.4.              Disclaimer.  Each of the Trustee and the Collateral Agent
shall not be responsible for and makes no representation as to the validity or
adequacy of this Indenture, the Notes, the Subsidiary Guarantees, the
Collateral Documents, the First Lien Intercreditor Agreement or the Junior Lien
Intercreditor Agreement, it shall not be accountable for the Company’s use of
the Notes or the proceeds from the Notes, and it shall not be responsible for
any statement of the Company in this Indenture or in any document issued in
connection with the sale of the Notes or in the Notes other than the Trustee’s
certificate of authentication or for the use or application of any funds
received by any Paying Agent other than the Trustee.

 

SECTION 7.5.              Notice of Defaults.  If a Default occurs and is continuing and is
known to the Trustee, the Trustee shall mail to each Holder, with a copy to the
Collateral Agent, notice of the Default within 90 days after the Trustee
obtains such knowledge.  Except in the
case of a Default in payment of principal of, premium, if any, or interest on
any Note, the Trustee may withhold the notice if and so long as a committee of
Trust Officers of the Trustee in good faith determines that withholding the notice
is in the interests of Holders.

 

SECTION 7.6.              Compensation and Indemnity.  The Company shall pay to each of the Trustee
and the Collateral Agent from time to time such compensation for its services
as the parties shall agree in writing from time to time.  The Trustee’s compensation and the Collateral
Agent’s compensation shall not be limited by any law on compensation of a
trustee of an express trust.  The Company
shall reimburse each of the Trustee and the Collateral Agent upon request for
all reasonable out-of-pocket expenses incurred or made by it, including, but
not limited to, costs of collection, costs of preparing and reviewing reports,
certificates and other documents, costs of preparation and mailing of notices
to Holders and reasonable costs of counsel, in addition to the compensation for
its services.  Such expenses shall include
the reasonable compensation and expenses, disbursements and advances of the
Trustee’s agents, counsel, accountants and experts.  The Company shall indemnify the Collateral
Agent, any predecessor Collateral Agent, the Trustee or any predecessor Trustee
in each of its capacities hereunder (including Paying Agent, and Registrar),
and each of their officers, directors, employees, counsel and agents, against
any and all loss, liability or expense (including, but not limited to,
reasonable attorneys’ fees and expenses) incurred by it in connection with the
administration of this trust and the performance of its duties hereunder and
under the Notes, the Guarantees, the Collateral Documents, the First Lien Intercreditor
Agreement and the Junior Lien Intercreditor Agreement, including the costs and
expenses of enforcing this Indenture (including this Section 7.6),
the Notes, the Guarantees, the Collateral Documents, the First Lien
Intercreditor Agreement and the Junior Lien Intercreditor Agreement and of
defending itself against any claims (whether asserted by any Holder, the
Company or otherwise).  The Collateral
Agent and the Trustee shall notify the Company promptly of any claim for which
it may seek indemnity.  Failure by the
Collateral Agent and the Trustee to so notify the Company shall not relieve the
Company of its obligations hereunder. 
The Company shall defend the claim and the Collateral Agent and the
Trustee may have separate counsel and the Company shall pay the reasonable fees
and expenses of such counsel.  The Company
need not reimburse any expense or indemnify against any loss, liability or
expense incurred by the Collateral Agent and the Trustee through their own
willful misconduct or negligence or bad faith.

 

To secure the Company’s payment obligations in this
Section, the Collateral Agent and the Trustee shall have a lien prior to the
Notes on all money or property held or collected by the Trustee other than
money or property held in trust to pay principal of and interest on particular
Notes.  The right of the Collateral Agent
and the Trustee to receive payment of any amounts due under this Section 7.6
shall not be subordinate to any other liability or indebtedness of the Company.

 

80

 

The Company’s payment obligations pursuant to this Section and
any lien arising hereunder shall survive the discharge of this Indenture and
the resignation or removal of the Trustee or Collateral Agent.  When the Trustee or Collateral Agent incurs
expenses after the occurrence of a Default specified in Section 6.1(a)(vii) or
(viii) with respect to the Company, the expenses are intended to
constitute expenses of administration under any Bankruptcy Law.

 

Pursuant to Section 10.1, the
obligations of the Company hereunder are jointly and severally guaranteed by
the Guarantors.

 

SECTION 7.7.              Replacement of Trustee.  The Trustee may resign at any time by so
notifying the Company.  The Holders of a
majority in principal amount of the Notes may remove the Trustee by so
notifying the Company and the Trustee in writing and may appoint a successor
Trustee.  The Company shall remove the
Trustee if:

 

(i)      the Trustee fails to
comply with Section 7.9;

 

(ii)     the Trustee is adjudged
bankrupt or insolvent;

 

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

 

(iv)    the Trustee otherwise
becomes incapable of acting.

 

If the Trustee resigns or is removed by the Company
or by the Holders of a majority in principal amount of the Notes and such
Holders do not reasonably promptly appoint a successor Trustee, or if a vacancy
exists in the office of Trustee for any reason (the Trustee in such event being
referred to herein as the retiring Trustee), the Company shall promptly appoint
a successor Trustee.

 

A successor Trustee shall deliver a written
acceptance of its appointment to the retiring Trustee and to the Company.  Thereupon the resignation or removal of the
retiring Trustee shall become effective, and the successor Trustee shall have
all the rights, powers and duties of the Trustee under this Indenture.  The successor Trustee shall mail a notice of
its succession to Holders.  The retiring
Trustee shall promptly transfer all property held by it as Trustee to the
successor Trustee, subject to the lien provided for in Section 7.6.

 

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

 

If the Trustee fails to comply with Section 7.9,
unless the Trustee’s duty to resign is stayed, any Holder may petition any
court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee.

 

Notwithstanding the replacement of the Trustee
pursuant to this Section 7.7, the Company’s obligations under Section 7.6
shall continue for the benefit of the retiring Trustee.

 

SECTION 7.8.              Successor Trustee by Merger.  If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all its corporate trust
business or assets to, another 

 

81

 

corporation or banking association, the
resulting, surviving or transferee corporation without any further act shall be
the successor Trustee.

 

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

 

SECTION 7.9.              Eligibility; Disqualification.  The Trustee shall have a combined capital and
surplus of at least $50 million as set forth in its most recent filed annual
report of condition.

 

This Indenture shall 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 7.10.            Limitation on Duty of Trustee and
Collateral Agent in Respect of Collateral; Indemnification.

 

(a)           Beyond the exercise of reasonable care in the custody
thereof, neither the Trustee nor the Collateral Agent shall have any duty as to
any Collateral in their possession or control or in the possession or control
of any agent or bailee or any income thereon or as to preservation of rights
against prior parties or any other rights pertaining thereto and neither the
Trustee nor the Collateral Agent shall be responsible for filing any financing
or continuation statements or recording any documents or instruments in any
public office at any time or times or otherwise perfecting or maintaining the
perfection of any security interest in the Collateral.  The Trustee and the Collateral Agent shall be
deemed to have exercised reasonable care in the custody of the Collateral in
their possession if the Collateral is accorded treatment substantially equal to
that which they accord their own property and shall not be liable or
responsible for any loss or diminution in the value of any of the Collateral,
by reason of the act or omission of any carrier, forwarding agency or other
agent or bailee selected by the Trustee or the Collateral Agent in good faith.

 

Neither the Trustee nor the Collateral Agent shall
have any duty to ascertain or inquire as to the performance or observance of
any of the terms of this Indenture, the Notes, the Guarantees, the Collateral
Documents, the First Lien Intercreditor Agreement and the Junior Lien
Intercreditor Agreement by the Company, the Subsidiary Guarantors or any other
Person.

 

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 shall be subject to TIA § 311(a) to the extent
indicated therein.

 

SECTION 7.12.            Reports by Trustee to Holders of
the Notes.  Within 60 days after each
May 15, beginning with May 15, 2011, the Trustee shall 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 twelve months preceding the
reporting date, no report need be transmitted). 
The Trustee also shall comply with TIA § 313(b).  The Trustee shall also transmit by mail all reports
as required by TIA § 313(c).

 

82

 

A copy of each report at the time of its mailing to
the Holders of Notes shall be mailed to the Company and filed with the SEC and
each stock exchange on which any Notes are listed.  The Company shall promptly notify the Trustee
in writing when any Notes are listed on any stock exchange and of any delisting
thereof.

 

ARTICLE
VIII

 

Discharge
of Indenture; Defeasance

 

SECTION 8.1.              Discharge of Liability on
Notes; Defeasance.

 

(a)           When (i) the Company delivers to the Trustee all
outstanding Notes (other than Notes replaced pursuant to Section 2.7)
for cancellation or (ii) all outstanding Notes not theretofore delivered
for cancellation (x) have become due and payable, whether at maturity or
on a Redemption Date as a result of the mailing of a notice of redemption
pursuant to Article V hereof, or (y) shall become due and
payable within one year or are to be called for redemption within one year
under arrangements reasonably satisfactory to the Trustee and, in the case of
clauses (x) and (y), the Company irrevocably deposits with the
Trustee funds sufficient to pay at maturity or upon redemption all outstanding
Notes, including interest thereon to maturity or such Redemption Date, and if
in any case the Company pays all other sums payable hereunder by the Company,
then this Indenture shall, subject to Section 8.1(c), cease to be
of further effect.

 

(b)           Subject to Sections 8.1(c) and 8.2, the
Company at its option and at any time may terminate (i) all the
obligations of the Company and any Guarantor under the Notes, this Indenture
and the Collateral Documents (“legal defeasance option”) or (ii) the
obligations of the Company and any Guarantors under Sections 3.2, 3.3,
3.4, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10,
3.11, 3.12, 3.15, 3.16 and 4.1(a)(iii) of
this Indenture and under the Collateral Documents (whereupon the Collateral
shall be automatically released) and the Company and the Guarantors may omit to
comply with and shall have no liability in respect of any term, condition or
limitation set forth in any such covenant or provision, whether directly or indirectly,
by reason of any reference elsewhere herein to any such covenant or provision
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 with such covenants
or provisions shall no longer constitute a Default or an Event of Default under
Section 6.1(a)(iii) (only with respect to Section 4.1(a)(iii)),
6.1(a)(iv) (only with respect to such covenants), 6.1(a)(vi),
6.1(a)(vii) or (viii) (in the case of each of Sections 6.1(a)(vii) and
(viii), only with respect to Significant Subsidiaries), Section 6.1(a)(ix) (clause
(ii) being referred to as the “covenant defeasance option”), but
except as specified above, the remainder of this Indenture and the Notes shall
be unaffected thereby.  The Company may
exercise its legal defeasance option notwithstanding its prior exercise of its
covenant defeasance option.

 

If the Company exercises its legal defeasance
option, payment of the Notes may not be accelerated because of an Event of
Default.  If the Company exercises its
covenant defeasance option, payment of the Notes may not be accelerated because
of an Event of Default specified in Section 6.1(a)(iii) (only
with respect to Section 4.1(a)(iii)), 6.1(a)(iv) (only
with respect to the covenants subject to such covenant defeasance), 6.1(a)(vi),
6.1(a)(vii) or (viii) (in the case of each of Sections 6.1(a)(vii) and
(viii), only with respect to Significant Subsidiaries) or 6.1(a)(ix).

 

Upon satisfaction of the conditions set forth herein
and upon request of the Company, the Trustee shall acknowledge in writing the
discharge of those obligations that the Company terminates.

 

83

 

(c)           Notwithstanding the provisions of Sections 8.1(a) and
(b), the Company’s obligations in Sections 2.2, 2.3, 2.4,
2.5, 2.6, 2.9, 2.10, 2.12, 3.1, 6.7,
6.8, 7.1, 7.2, 7.6, 7.7, 8.1(b) (with
respect to legal defeasance), 8.3, 
8.4, 8.5 and 8.6 shall survive until the Notes have
been paid in full.  Thereafter, the
Company’s obligations in Sections 6.7, 7.6, 8.4 and 8.5
shall survive.

 

SECTION 8.2.              Conditions to Defeasance.  The Company may exercise its legal defeasance
option or its covenant defeasance option only if:

 

(i)      the Company shall irrevocably
deposit in trust (the “defeasance trust”) with the Trustee money or U.S.
Government Obligations for the payment of the principal amount and interest on
the outstanding Notes issued hereunder on the Stated Maturity or on the Redemption
Date, as the case may be;

 

(ii)     the Company delivers to
the Trustee a certificate from a nationally recognized firm of independent
accountants expressing their opinion that the payments of principal and interest
when due and without reinvestment on the deposited U.S. Government Obligations plus
any deposited money without investment shall provide cash at such times and in
such amounts as shall be sufficient to pay principal and interest when due on
all the Notes to maturity or redemption, as the case may be;

 

(iii)    123 days pass after the
deposit is made and during the 123-day period no Default specified in Section 6.1(vii) and
(viii) with respect to the Company occurs which is continuing at
the end of the period;

 

(iv)    the deposit does not
constitute a default under any other agreement binding the Company and is not
prohibited by Article XII;

 

(v)     the Company delivers to
the Trustee an Opinion of Counsel to the effect that the trust resulting from
the deposit does not constitute, or is qualified as, a regulated investment company
under the Investment Company Act of 1940;

 

(vi)    in the case of covenant
defeasance, the Company has delivered to the Trustee an Opinion of Counsel
confirming that, subject to customary assumptions and exclusions, the Holders
of the respective outstanding Notes shall not recognize income, gain or loss
for Federal income tax purposes as a result of such deposit and covenant
defeasance and shall be subject to Federal income tax on the same amounts and
in the same manner and at the same times as would have been the case if such
deposit and covenant defeasance had not occurred;

 

(vii)   in the case of legal
defeasance, the Company has delivered to the Trustee an Opinion of Counsel
confirming that, subject to customary assumptions and exclusions, such Opinion
of Counsel is based on a ruling of the Internal Revenue Service or other change
in applicable Federal income tax law, in either case to the effect that, the
Holders of the respective outstanding Notes shall not recognize income, gain or
loss for Federal income tax purposes as a result of such deposit and legal
defeasance and shall be subject to Federal income tax on the same amounts and
in the same manner and at the same times as would have been the case if such
deposit and legal defeasance had not occurred; and

 

(viii)  the Company delivers to
the Trustee and Officers’ Certificate and an Opinion of Counsel, each stating
that all conditions precedent to the defeasance and discharge of the Notes as
contemplated by this Article VIII have been complied with.

 

84

 

Before or after a deposit, the Company may
make arrangements satisfactory to the Trustee for the redemption of Notes at a
future date in accordance with Article V.

 

SECTION 8.3.              Application of Trust Money.  The Trustee shall hold in trust money or U.S.
Government Obligations deposited with it pursuant to this Article VIII.  It shall apply the deposited money and the
money from U.S. Government Obligations through the Paying Agent and in
accordance with this Indenture to the payment of principal of and interest on
the Notes.

 

SECTION 8.4.              Repayment to Company.  Anything herein to the contrary notwithstanding,
the Trustee shall deliver or pay to the Company from time to time upon Company
Order any money or U.S. Government Obligations held by it as provided in this Article VIII
which, in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the
Trustee, are in excess of the amount thereof which would then be required to be
deposited to effect legal defeasance or covenant defeasance, as applicable, provided that the Trustee shall not be required to liquidate
any U.S. Government Obligations in order to comply with the provisions of this
paragraph.

 

Subject to any applicable abandoned property law,
the Trustee and the Paying Agent shall pay to the Company upon written request
any money held by them for the payment of principal of or interest on the Notes
that remains unclaimed for two years, and, thereafter, Holders entitled to the
money must look to the Company for payment as general creditors.

 

SECTION 8.5.              Indemnity for U.S. Government
Obligations.  The Company shall pay
and shall indemnify the Trustee against any tax, fee or other charge imposed on
or assessed against deposited U.S. Government Obligations or the principal and
interest received on such U.S. Government Obligations.

 

SECTION 8.6.              Reinstatement.  If the Trustee or Paying Agent is unable to
apply any money or U.S. Government Obligations in accordance with this Article VIII
by reason of any legal proceeding or by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the obligations of the Company and each Subsidiary Guarantor
under this Indenture, the Notes, the Subsidiary Guarantees and the Collateral
Documents shall be revived and reinstated as though no deposit had occurred
pursuant to this Article VIII until such time as the Trustee or Paying
Agent is permitted to apply all such money or U.S. Government Obligations in accordance
with this Article VIII; provided, however,
that, if the Company or the Subsidiary Guarantors have made any payment of
interest on or principal of any Notes because of the reinstatement of its obligations,
the Company or the Subsidiary Guarantors, as the case may be, shall be
subrogated to the rights of the Holders of such Notes to receive such payment
from the money or U.S. Government Obligations held by the Trustee or Paying
Agent.

 

ARTICLE
IX

 

Amendments

 

SECTION 9.1.              Without Consent of Holders.  This Indenture, the Notes, the Collateral
Documents, the First Lien Intercreditor Agreement and the Junior Lien
Intercreditor Agreement may be amended without notice to or consent of any
Holder:

 

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

 

85

 

(ii)     to comply with Article IV
in respect of the assumption by a Successor Company of an obligations of the
Company, Parent or any Subsidiary Guarantor under this Indenture;

 

(iii)    to provide for
uncertificated Notes in addition to or in place of certificated Notes; provided that the uncertificated Notes are issued in registered form for
purposes of Section 163(f) of the Code or in a manner such that the
uncertificated Notes are described in Section 163(f)(2)(B) of the
Code;

 

(iv)    to add Guarantees with
respect to the Notes or to add additional assets that secure the Notes,
including any Subsidiary Guaranty;

 

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

 

(vi)    to make any change that
does not adversely affect the rights of any Holder of the Notes;

 

(vii)   to comply with any
requirement of the SEC in connection with the qualification of this Indenture
under the TIA;

 

(viii)  to make any amendment to
the provisions of this Indenture relating to the form, authentication, transfer
and legending of Notes; provided, however,
that (a) compliance with this Indenture as so amended would not result in
Notes being transferred in violation of the Securities Act or any other
applicable securities law and (b) such amendment does not materially
affect the rights of Holders to transfer Notes;

 

(ix)    to release Liens in favor
of the Collateral Agent in the Collateral as provided in Section 11.3
or otherwise in accordance with the terms of this Indenture and the Collateral
Documents;

 

(x)     to provide for the
appointment of a successor trustee; provided that
the successor trustee is otherwise qualified and eligible to act as such under
the terms of this Indenture; or

 

(xi)    to conform the text of
this Indenture, the Notes, the Guarantees, the Collateral Documents, the First
Lien Intercreditor Agreement or the Junior Lien Intercreditor Agreement to any
provision of the “Description of the notes” section of the Offering Memorandum
to the extent that such provision in the “Description of the notes” is intended
to be a verbatim recitation of a provision of this Indenture, the Notes, the
Guarantees, the Collateral Documents, the First Lien Intercreditor Agreement or
the Junior Lien Intercreditor Agreement.

 

In addition, no consent of
the Holders shall be required under the Collateral Documents, the First Lien
Intercreditor Agreement or the Junior Lien Intercreditor Agreement to any
amendments and other modifications to the Collateral Documents, the First Lien
Intercreditor Agreement or the Junior Lien Intercreditor Agreement (A) to
add other parties (or any authorized agent thereof or trustee therefor) holding
Pari Passu Lien Indebtedness or Junior Lien Obligations that are Incurred in
compliance with this Indenture and the Collateral Documents, (B) to
establish that the Liens on any Collateral securing such Pari Passu Lien
Indebtedness shall be pari passu
under the Intercreditor Agreement with the Liens on such Collateral securing
the Obligations under this Indenture and the Notes, all on the terms provided
for in the First Lien Intercreditor Agreement or Junior Lien Intercreditor
Agreement as in effect immediately prior 

 

86

 

to such amendment or other modification and (C) to
provide that the Liens securing the Notes are senior to the Liens securing
other Indebtedness pursuant to the terms of the Junior Lien Intercreditor Agreement.

 

After an amendment under this Section becomes
effective, the Company shall mail to Holders a notice briefly describing such
amendment.  The failure to give such
notice to all Holders, or any defect therein, shall not impair or affect the
validity of an amendment under this Section.

 

SECTION 9.2.              With Consent of Holders.  This Indenture, the Notes, the Collateral
Documents the First Lien Intercreditor Agreement or the Junior Lien
Intercreditor Agreement may be amended with the consent of the Holders of a
majority in principal amount of the Notes then outstanding (including consents
obtained in connection with a tender offer or exchange for the Notes).  Any past default or compliance with the
provisions of this Indenture, the Notes, the Collateral Documents, the First
Lien Intercreditor Agreement or the Junior Lien Intercreditor Agreement may be
waived with the consent of the Holders of at least a majority in principal
amount of the Notes then outstanding. 
However, without the consent of each Holder of an outstanding Note
affected, no amendment or waiver may:

 

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

 

(ii)     reduce the rate of or
extend the time for payment of interest on any Note;

 

(iii)    reduce the principal
amount of or change the Stated Maturity of any Note;

 

(iv)    change the provisions
applicable to the redemption of any Note as described in Section 5.1;

 

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

 

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

 

(vii)   make any change in the
amendment provisions in this Section 9.2;

 

(viii)  make any change in the
ranking or priority of any Note that would adversely affect the Noteholders; or

 

(ix)    make any change in or
release (other than in accordance with this Indenture) any Subsidiary Guaranty
that would adversely affect the Noteholders.

 

Notwithstanding the foregoing, (x) in addition
to the release of Collateral expressly permitted by this Indenture, the
Collateral Documents, the First Lien Intercreditor Agreement and the Junior
Lien Intercreditor Agreement, all or any portion of the Collateral may be
released under this Indenture, the Collateral Documents, the First Lien
Intercreditor Agreement and the Junior Lien Intercreditor Agreement as to the
Notes, (y) any Subsidiary Guarantor may be released from its obligations
under its Subsidiary Guaranty and (z) the First Lien Intercreditor
Agreement and the Junior Lien Intercreditor Agreement may be amended in a
manner adverse to the Holders, in each case, with the consent of the Holders of
at least 662/3% in principal amount of
Notes then outstanding.

 

87

 

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

 

After an amendment under this Indenture, the Collateral
Document, the First Lien Intercreditor Agreement or the Junior Lien
Intercreditor Agreement becomes effective, the Company shall mail to the
Holders a notice briefly describing such amendment.  The failure to give such notice to all
Holders of the Notes, or any defect therein, shall not impair or affect the
validity of an amendment under this Section.

 

SECTION 9.3.              Effect of Consents and Waivers.  A consent to an amendment or a waiver by a
Holder of a Note shall bind the Holder and every subsequent Holder of that Note
or portion of the Note that evidences the same debt as the consenting Holder’s
Note, even if notation of the consent or waiver is not made on the Note.  After an amendment or waiver becomes
effective, it shall bind every Holder unless it makes a change described in
clauses (i) through (ix) of Section 9.2, in which case
the amendment or waiver or other action shall bind each Holder who has
consented to it and every subsequent Holder that evidences the same debt as the
consenting Holder’s Notes.  An amendment
or waiver made pursuant to Section 9.2 shall become effective upon
receipt by the Trustee of the requisite number of written consents.

 

The Company may, but shall not be obligated to, fix
a record date for the purpose of determining the Holders entitled to give their
consent or take any other action described above or required or permitted to be
taken pursuant to this Indenture.  If a
record date is fixed, then notwithstanding the immediately preceding paragraph,
those Persons who were Holders at such record date (or their duly designated
proxies), and only those Persons, shall be entitled to give such consent or to
take any such action, whether or not such Persons continue to be Holders after
such record date.

 

SECTION 9.4.              Notation on or Exchange of
Notes.  If an amendment changes the
terms of a Note, the Trustee may require the Holder of the Note to deliver it
to the Trustee.  The Trustee may place an
appropriate notation on the Note regarding the changed terms and return it to
the Holder.  Alternatively, if the
Company or the Trustee so determines, the Company in exchange for the Note
shall issue and the Trustee shall authenticate a new Note that reflects the
changed terms.  Failure to make the
appropriate notation or to issue a new Note shall not affect the validity of
such amendment.

 

SECTION 9.5.              Trustee and Collateral Agent To
Sign Amendments.  The Trustee and
Collateral Agent shall sign any amendment, supplement or waiver authorized
pursuant to this Article IX if the amendment, supplement or waiver
does not, in the sole determination of the Trustee or Collateral Agent,
adversely affect the rights, duties, liabilities or immunities of the Trustee
or Collateral Agent.  If it does, the
Trustee or Collateral Agent may but need not sign it.  In signing any amendment, supplement or
waiver pursuant to this Article IX, the Trustee or Collateral Agent
shall be entitled to receive, and (subject to Sections 7.1 and 7.2)
shall be fully protected in relying upon, an Officers’ Certificate and an Opinion
of Counsel stating that such amendment, supplement or waiver is authorized or
permitted by or complies with this Indenture, the Collateral Documents, the
First Lien Intercreditor Agreement and the Junior Lien Intercreditor Agreement
and that such amendment, supplement or waiver is the legal, valid and binding
obligation of the Company, enforceable against the Company in accordance with
its terms, subject to customary exceptions. 
Notwithstanding the foregoing, no Opinion of Counsel shall be required
for the Trustee or Collateral Agent to execute any amendment or supplement
adding a new Subsidiary Guarantor under this Indenture.

 

88

 

SECTION 9.6.              Compliance with Trust Indenture
Act.  Every amendment to this Indenture
and the Notes shall be set forth in an amended or supplemental indenture that
complies with the TIA as then in effect.

 

ARTICLE
X

 

Guarantees

 

SECTION 10.1.            Guarantees.  Subject to the provisions of this Article X,
each Guarantor hereby fully, unconditionally and irrevocably guarantees, as
primary obligor and not merely as surety, jointly and severally with each other
Guarantor, to each Holder of the Notes, to the extent lawful, and the Trustee
the full and punctual payment when due, whether at maturity, by acceleration,
by redemption or otherwise, of the principal of, premium, if any, and interest
on the Notes and all other obligations of the Company under this Indenture and
the Notes (including, without limitation, interest accruing after the filing of
any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding, relating to the Company or any Guarantor
whether or not a claim for post-filing or post-petition interest is allowed in
such proceeding and the obligations under Section 7.6) and the
Collateral Documents (all the foregoing being hereinafter collectively called
the “Guarantor Obligations”). 
Each Guarantor agrees (to the extent lawful) that the Guarantor Obligations
may be extended or renewed, in whole or in part, without notice or further
assent from it, and that it shall remain bound under this Article X
notwithstanding any extension or renewal of any Guarantor Obligation.

 

Each Guarantor waives (to the extent lawful)
presentation to, demand of, payment from and protest to the Company of any of
the Guarantor Obligations and also waives (to the extent lawful) notice of
protest for nonpayment.  Each Guarantor
waives (to the extent lawful) notice of any default under the Notes or the
Guarantor Obligations.

 

Each Guarantor further agrees that its Guarantee
herein constitutes a Guarantee of payment when due (and not a Guarantee of
collection) and waives any right to require that any resort be had by any
Holder to any security held for payment of the Guarantor Obligations.

 

Except as set forth in Section 4.2, Section 10.2
and Article VIII, the obligations of each Guarantor hereunder shall
not be subject to any reduction, limitation, impairment or termination for any
reason (other than payment of the Guarantor Obligations in full), including any
claim of waiver, release, surrender, alteration or compromise, and shall not
(to the extent lawful) be subject to any defense of setoff, counterclaim,
recoupment or termination whatsoever or by reason of the invalidity, illegality
or unenforceability of the Guarantor Obligations or otherwise.  Without limiting the generality of the
foregoing, the obligations of each Guarantor herein shall not (to the extent
lawful) be discharged or impaired or otherwise affected by (a) the failure
of any Holder to assert any claim or demand or to enforce any right or remedy
against the Company or any other person under this Indenture, the Notes, the
Collateral Documents, the First Lien Intercreditor Agreement, the Junior Lien
Intercreditor Agreement or any other agreement or otherwise; (b) any
extension or renewal of any thereof; (c) any rescission, waiver, amendment
or modification of any of the terms or provisions of this Indenture, the Notes,
the Collateral Documents, the First Lien Intercreditor Agreement, the Junior
Lien Intercreditor Agreement or any other agreement; (d) the release of
any security held by any Holder or the Collateral Agent for the Guarantor
Obligations or any of them; (e) the failure of any Holder to exercise any
right or remedy against any other Guarantor; (f) any change in the
ownership of the Company; (g) any default, failure or delay, willful or
otherwise, in the performance of the Guarantor Obligations; or (h) any
other act or thing or omission or 

 

89

 

delay to do any other act or thing which may
or might in any manner or to any extent vary the risk of any Guarantor or would
otherwise operate as a discharge of such Guarantor as a matter of law or
equity.

 

Each Guarantor agrees that its Guarantee herein
shall remain in full force and effect until payment in full of all the
Guarantor Obligations or such Guarantor is released from its Guarantee in compliance
with Section 4.2, Section 10.2 and Article VIII.  Each Guarantor further agrees that its
Guarantee herein shall continue to be effective or be reinstated, as the case
may be, if at any time payment, or any part thereof, of principal of, premium,
if any, or interest on any of the Guarantor Obligations is rescinded or must
otherwise be restored by any Holder upon the bankruptcy or reorganization of
the Company or otherwise.

 

In furtherance of the foregoing and not in
limitation of any other right which any Holder has at law or in equity against
any Guarantor by virtue hereof, upon the failure of the Company to pay any of
the Guarantor Obligations when and as the same shall become due, whether at
maturity, by acceleration, by redemption or otherwise, each Guarantor hereby
promises to and shall, upon receipt of written demand by the Trustee, forthwith
pay, or cause to be paid, in cash, to the Trustee or the Trustee on behalf of
the Holders an amount equal to the sum of (i) the unpaid amount of such
Guarantor Obligations then due and owing and (ii) accrued and unpaid
interest on such Guarantor Obligations then due and owing (but only to the
extent not prohibited by law) (including interest accruing after the filing of
any petition in bankruptcy or the commencement of any insolvency,
reorganization or like proceeding relating to the Company or any Guarantor
whether or not a claim for post-filing or post-petition interest is allowed in
such proceeding).

 

Each Guarantor further agrees that, as between such
Guarantor, on the one hand, and the Holders, on the other hand, (x) the maturity
of the Guarantor Obligations guaranteed hereby may be accelerated as provided
in this Indenture for the purposes of its Guarantee herein, notwithstanding any
stay, injunction or other prohibition preventing such acceleration in respect
of the Guarantor Obligations guaranteed hereby and (y) in the event of any
such declaration of acceleration of such Guarantor Obligations, such Guarantor
Obligations (whether or not due and payable) shall forthwith become due and
payable by the Guarantor for the purposes of this Guarantee.

 

Each Guarantor also agrees to pay any and all
reasonable costs and expenses (including reasonable attorneys’ fees) incurred
by the Trustee or the Holders in enforcing any rights under this Section.

 

Neither the Company nor the Guarantors shall be
required to make a notation on the Notes to reflect any Guarantee or any
release, termination or discharge thereof and any such notation shall not be a
condition to the validity of any Guarantee.

 

SECTION 10.2.            Limitation on Liability; Termination,
Release and Discharge.

 

(a)           Any term or provision of this Indenture to the contrary
notwithstanding, the obligations of each Subsidiary Guarantor hereunder shall
be limited to the maximum amount as shall, after giving effect to all other
contingent and fixed liabilities of such Subsidiary Guarantor and after giving
effect to any collections from or payments made by or on behalf of any other
Subsidiary Guarantor in respect of the obligations of such other Subsidiary
Guarantor under its Subsidiary Guarantee or pursuant to its contribution
obligations under this Indenture, result in the obligations of such Subsidiary
Guarantor under its Subsidiary Guarantee not constituting a fraudulent
conveyance or fraudulent transfer under 

 

90

 

federal or state law and not otherwise being
void or voidable under any similar laws affecting the rights of creditors generally.

 

(b)           A Subsidiary Guaranty by a Subsidiary Guarantor shall be
automatically and unconditionally released and discharged, and each Subsidiary
Guarantor and its obligations under the Subsidiary Guaranty and this Indenture
shall be released and discharged:

 

(i)      upon any sale, exchange
or transfer (by merger or otherwise) of the Capital Stock of such Subsidiary
Guarantor (including any sale, exchange or transfer) following which such
Subsidiary Guarantor ceases to be a direct or indirect Subsidiary of the
Company if such sale or disposition does not constitute an Asset Disposition or
is made in compliance with this Indenture, including Section 3.7
and Article IV);

 

(ii)     if such Subsidiary
Guarantor is dissolved or liquidated in accordance with the provisions of this
Indenture;

 

(iii)    upon exercise of the
Company’s legal defeasance option or covenant defeasance option or upon
satisfaction and discharge of this Indenture, in each case, pursuant to the
provisions of Article VIII hereof; and

 

(iv)    if the Company designates
such Subsidiary Guarantor as an Unrestricted Subsidiary and such designation
complies with the other applicable provisions of this Indenture.

 

(c)           In the case of Section 10.2(b)(i) only,
the Company shall deliver to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent provided for in
this Indenture relating to such transaction have been complied with.

 

(d)           The release of a Subsidiary Guarantor from its Subsidiary
Guaranty and its obligations under this Indenture in accordance with the
provisions of this Section 10.2 shall not preclude the future
applications of Section 3.11 to such Person.

 

SECTION 10.3.            Right of Contribution.  Each Subsidiary Guarantor hereby agrees that
to the extent that any such Subsidiary Guarantor shall have paid more than its
proportionate share of any payment made on the obligations under its Subsidiary
Guaranty, such Subsidiary Guarantor shall be entitled to seek and receive
contribution from and against the Company or any other Subsidiary Guarantor who
has not paid its proportionate share of such payment.  The provisions of this Section 10.3
shall in no respect limit the obligations and liabilities of each Subsidiary
Guarantor to the Trustee and the Holders and each Subsidiary Guarantor shall
remain liable to the Trustee and the Holders for the full amount guaranteed by
such Subsidiary Guarantor hereunder.

 

SECTION 10.4.            No Subrogation.  Notwithstanding any payment or payments made
by each Subsidiary Guarantor hereunder, no Subsidiary Guarantor shall be
entitled to be subrogated to any of the rights of the Trustee or any Holder
against the Company or any other Subsidiary Guarantor or any collateral
security or guarantee or right of offset held by the Trustee or any Holder for
the payment of the Guarantor Obligations, nor shall any Subsidiary Guarantor
seek or be entitled to seek any contribution or reimbursement from the Company
or any other Subsidiary Guarantor in respect of payments made by such
Subsidiary Guarantor hereunder, until all amounts owing to the Trustee and the
Holders by the Company on account of the Guarantor Obligations are paid in
full.  If any amount shall be paid to any
Subsidiary Guarantor on account of such subrogation rights at any time when all
of the Guarantor Obligations 

 

91

 

shall not have been paid in full, such amount
shall be held by such Subsidiary Guarantor in trust for the Trustee and the
Holders, segregated from other funds of such Subsidiary Guarantor, and shall,
forthwith upon receipt by such Subsidiary Guarantor, be turned over to the
Trustee in the exact form received by such Subsidiary Guarantor (duly indorsed
by such Subsidiary Guarantor to the Trustee, if required), to be applied
against the Guarantor Obligations.

 

ARTICLE
XI

 

Collateral
and Security

 

SECTION 11.1.            The Collateral.

 

(a)           The due and punctual payment of the principal of, premium,
if any, and interest on the Notes and the Guarantees thereof when and as the
same shall be due and payable, whether on an interest payment date, at
maturity, by acceleration, repurchase, redemption or otherwise, interest on the
overdue principal of and interest (to the extent lawful), if any, on the Notes
and the Guarantees thereof and performance of all other obligations under this
Indenture, including, without limitation, the obligations of the Company set
forth in Section 7.6 and Section 8.6 herein, and the
Notes and the Guarantees thereof and the Collateral Documents, shall be secured
by Liens as provided in the Collateral Documents which Parent, the Company and
the Subsidiary Guarantors, as the case may be, have entered into simultaneously
with the execution of this Indenture and shall be secured by all Collateral
Documents hereafter delivered as required or permitted by this Indenture.

 

(b)           Parent, the Company and the Subsidiary Guarantors hereby agree
that the Collateral Agent shall hold the Collateral in trust for the benefit of
all of the Holders, the Collateral Agent and the Trustee, in each case pursuant
to the terms of the Collateral Documents, and the Collateral Agent is hereby
authorized to execute and deliver the Collateral Documents.

 

(c)           Each Holder, by its acceptance of any Notes and the
Guarantees thereof, consents and agrees to the terms of the Collateral
Documents (including, without limitation, the provisions providing for
foreclosure), the First Lien Intercreditor Agreement and the Junior Lien
Intercreditor Agreement, as the same may be in effect or as may be amended from
time to time in accordance with their terms, and authorizes and directs the
Junior Lien Collateral Agent to perform its obligations and exercise its rights
under the Collateral Documents, the First Lien Intercreditor Agreement and the
Junior Lien Intercreditor Agreement in accordance therewith.

 

(d)           The Trustee and each Holder, by accepting the Notes and
the Guarantees thereof, acknowledges that, as more fully set forth in the
Collateral Documents, the Collateral as now or hereafter constituted shall be
held for the benefit of all the Holders and the Trustee, and that the Lien of
this Indenture and the Collateral Documents in respect of the Trustee and the
Holders is subject to and qualified and limited in all respects by the
Collateral Documents, the First Lien Intercreditor Agreement and the Junior
Lien Intercreditor Agreement and actions that may be taken thereunder.

 

SECTION 11.2.            Further Assurances.

 

The Company and the Subsidiary Guarantors shall, at
their expense, duly execute and deliver, or cause to be duly executed and
delivered, such further agreements, documents and instruments, and do or cause
to be done such further acts as may be necessary or proper, or which the
Collateral Agent may reasonably request, to evidence, perfect, maintain and
enforce the first-priority lien in the Collateral

 

92

 

granted to the Collateral Agent and the
priority thereof and benefits intended to be conferred as contemplated by, and
to otherwise effectuate the provisions or purposes of, this Indenture and the
Collateral Documents.

 

In addition, from time to time, the Company will
reasonably promptly secure the obligations under this Indenture and the
Collateral Documents by pledging or creating, or causing to be pledged or
created, perfected security interests and Liens with respect to the
Collateral.  Such security interests and
Liens will be created under the Collateral Documents and other security
agreements, mortgages, deeds of trust and other instruments and documents, in
form and substance reasonably satisfactory to the Collateral Agent, all such
instruments and documents (including certificates and legal opinions) as the
Collateral Agent shall reasonably request to evidence compliance with this Section 11.2.

 

SECTION 11.3.            Release of Liens on the
Collateral.

 

(a)           The Liens
on the Collateral shall automatically and without any need for any further
action by any Person be released:

 

(i)      in whole
or in part, as applicable, as to all or any portion of property subject to such
Liens which has been taken by eminent domain, condemnation or other similar
circumstances;

 

(ii)     in whole upon:

 

(1)           satisfaction and discharge of this
Indenture as set forth in Section 8.1(a); or

 

(2)           a legal defeasance or covenant
defeasance of this Indenture as set forth in Section 8.1(b);

 

(iii)    in part,
as to any property that (x) is sold, transferred or otherwise disposed of
by the Company or any Subsidiary Guarantor (other than to the Company or
another Subsidiary Guarantor) in a transaction not prohibited by this Indenture
at the time of such sale, transfer or disposition or (y) is owned or at
any time acquired by a Subsidiary Guarantor that has been released from its
Subsidiary Guaranty in accordance with this Indenture, concurrently with the
release of such Subsidiary Guaranty (including in connection with the
designation of a Subsidiary Guarantor as an Unrestricted Subsidiary);

 

(iv)    pursuant
to an amendment in accordance with Article IX;

 

(v)     in whole
as to all Collateral that is owned by a Subsidiary Guarantor that is released
from its Subsidiary Guaranty in accordance with Section 10.2; and

 

(vi)    in part,
in accordance with the applicable provisions of the Collateral Documents and
the First Lien Intercreditor Agreement.

 

(b)           In connection with any termination or release of any Liens
in all or any portion of the Collateral pursuant to this Indenture or any of
the Collateral Documents, the Trustee shall, or shall cause the Collateral
Agent to, promptly execute, deliver or acknowledge all documents, instruments
and releases that have been requested to release, reconvey to the Company and/or
the Subsidiary Guarantors, as the case may be, such Collateral or otherwise
give effect to, evidence or confirm such termination or 

 

93

 

release in accordance with the directions of
the Company and/or the Subsidiary Guarantor, as the case may be.

 

(c)           The release of any Collateral from the terms of the
Collateral Documents shall not be deemed to impair the security under this
Indenture in contravention of the provisions hereof if and to the extent such
Collateral is released pursuant to this Indenture or upon termination of this
Indenture.  The Trustee and each of the
Holders each acknowledge and direct the Trustee and the Collateral Agent that a
release of Collateral or a Lien in accordance with the terms of any Collateral
Document and this Article XI shall not be deemed for any purpose to
be an impairment of the Lien on the Collateral in contravention of the terms of
this Indenture.

 

(d)           Notwithstanding any provision to the contrary herein, as
and when requested by the Company or any Subsidiary Guarantor, the Trustee
shall instruct the Collateral Agent to authorize the filing of Uniform
Commercial Code financing statement amendments or releases (which shall be prepared
by the Company or such Subsidiary Guarantor) solely to the extent necessary to
delete or release Liens on property or assets not required to be subject to a
Lien under the Collateral Documents from the description of assets in any
previously filed financing statements. 
If requested in writing by the Company or any Subsidiary Guarantor, the
Trustee shall instruct the Collateral Agent to execute such documents, instruments
or statements reasonably requested of it (which shall be prepared by the
Company or such Subsidiary Guarantor) and to take such other action as the
Company may request to evidence or confirm that such property or assets not
required to be subject to a Lien under the Collateral Documents described in
the immediately preceding sentence has been released from the Liens of each of
the Collateral Documents.  The Collateral
Agent shall execute and deliver such documents, instruments and statements and
shall take all such actions promptly upon receipt of such instructions from the
Company, any Subsidiary Guarantor or the Trustee.

 

(e)           In no event shall the Trustee or Collateral Agent be
obligated to execute or deliver any document evidencing any release or
reconveyance without receipt of an Opinion of Counsel and Officers’
Certificate, each stating that such release complies with this Indenture, the First Lien Intercreditor Agreement, the
Junior Lien Intercreditor Agreement and the Collateral Documents.

 

SECTION 11.4.            Authorization of Actions to Be
Taken by the Trustee or the Collateral Agent Under the Collateral Documents.

 

(a)           Subject to the provisions of the Collateral Documents, the First Lien Intercreditor Agreement, the
Junior Lien Intercreditor Agreement and the other provisions of this Indenture,
each of the Trustee or the Collateral Agent may take all actions it deems necessary
or appropriate in order to (i) enforce any of its rights or any of the
rights of the Holders under the Collateral Documents and (ii) upon the
occurrence and during the continuance of an Event of Default, collect and
receive any and all amounts payable in respect of the Collateral in respect of
the obligations of Parent, the Company and the Subsidiary Guarantors hereunder
and thereunder.  Subject to the
provisions of the Collateral Documents, the
First Lien Intercreditor Agreement and the Junior Lien Intercreditor
Agreement, the Trustee or the Collateral Agent shall have the power (but not
the obligation) to institute and to maintain such suits and proceedings as it
may deem expedient to prevent any impairment of the Collateral by any acts that
may be unlawful or in violation of the Collateral Documents, the First Lien Intercreditor Agreement, the
Junior Lien Intercreditor Agreement or this Indenture, and such suits and
proceedings as the Trustee or the Collateral Agent may deem expedient to
preserve or protect its interest and the interests of the Holders in the Collateral
(including power to institute and maintain suits or proceedings to restrain the
enforcement of or compliance with any legislative or other governmental
enactment, rule or order that may be unconstitutional 

 

94

 

or otherwise invalid if the enforcement of,
or compliance with, such enactment, rule or order would impair the
security interest hereunder or be prejudicial to the interests of the Holders
or the Trustee).

 

(b)           The Trustee or the Collateral Agent shall not be
responsible for the existence, genuineness or value of any of the Collateral or
for the validity, perfection, priority or enforceability of the Liens in any of
the Collateral, whether impaired by operation of law or by reason of any action
or omission to act on its part hereunder, except to the extent such action or
omission constitutes negligence, bad faith or willful misconduct on the part of
the Trustee or the Collateral Agent, for the validity or sufficiency of the
Collateral or any agreement or assignment contained therein, for the validity
of the title of the Company to the Collateral, for insuring the Collateral or
for the payment of taxes, charges, assessments or Liens upon the Collateral or
otherwise as to the maintenance of the Collateral.  The Trustee or the Collateral Agent shall
have no responsibility for recording, filing, re-recording or refiling any
financing statement, continuation statement, document, instrument or other
notice in any public office at any time or times or to otherwise take any
action to perfect or maintain the perfection of any security interest granted
to it under the Collateral Documents or otherwise.

 

(c)           Where any provision of the Collateral Documents requires
that additional property or assets be added to the Collateral, the Company or
Parent shall, or shall cause the applicable Subsidiary Guarantors to, take any
and all actions reasonably required to cause such additional property or assets
to be added to the Collateral and to create and maintain a valid and
enforceable perfected first-priority security interest on a pari passu basis with the Liens securing any Pari Passu Lien
Indebtedness in such property or assets (subject to Permitted Liens) in favor
of the Collateral Agent for the benefit of the Holders, in each case in
accordance with and to the extent required under the Collateral Documents.

 

(d)           The Trustee or the Collateral Agent, in taking any action
under the Collateral Documents, shall be entitled to receive, if requested, as
a condition to take any action, an Officers’ Certificate and Opinion of Counsel
to the effect that such action does not violate this Indenture, the Collateral
Documents, the First Lien Intercreditor
Agreement or the Junior Lien Intercreditor Agreement, and the Trustee or
the Collateral Agent shall be fully protected relying thereon.

 

(e)           In acting under the Collateral Documents, the First Lien Intercreditor Agreement and
the Junior Lien Intercreditor Agreement, the Trustee and Collateral Agent shall
have all the protections, rights and immunities given to them under this
Indenture.

 

SECTION 11.5.            Recording, Registration and
Opinions.

 

(a)           The Company shall comply with the provisions of TIA
Sections 314(b) and 314(d), in each case following qualification of this
Indenture pursuant to the TIA, except to the extent not required as set forth
in any SEC regulation or interpretation or guidance (including any no-action
letter or exemptive order issued by the Staff of the SEC, whether issued to the
Company or any other Person).  Following
such qualification, to the extent the Company is required to furnish to the
Trustee an Opinion of Counsel pursuant to Trust Indenture Act Section 314(b)(2),
the Company shall furnish such opinion not more than 60 but not less than 30
days prior to each September 1.

 

(b)           Any release of Collateral permitted by Section 11.3
shall be deemed not to impair the Liens under this Indenture and the Collateral
Documents in contravention thereof and any person that is required to deliver
any certificate or opinion pursuant to Section 314(d) of the TIA
shall be entitled to rely upon the foregoing as a basis for delivery of such
certificate or opinion.  The Trustee
shall, to the 

 

95

 

extent permitted by Sections 7.1 and 7.2,
accept as conclusive evidence of compliance with the foregoing provisions the
appropriate statements contained in such certificate or opinion.

 

(c)           If any Collateral is released in accordance with this
Indenture or any Collateral Document, the Company shall determine whether it
has delivered all documentation required by TIA Section 314(d) in
connection with such release.

 

ARTICLE
XII

Miscellaneous

 

SECTION 12.1.            Notices.  Notices given by publication shall be deemed
given on the first date on which publication is made, and notices given by
first-class mail, postage prepaid, shall be deemed given five calendar days
after mailing.  Any notice or communication
shall be in writing and delivered in person, by facsimile or mailed by
first-class mail addressed as follows:

 

if
to Parent, the Company or any Subsidiary Guarantor:

c/o Reddy Ice Corporation

8750 N. Central Expressway, Suite 1800

Dallas, Texas  75231

Attention:  Steven J. Janusek

Facsimile No.:  (214) 528-1532

 

if
to the Trustee or Collateral Agent:

Wells Fargo Bank, National Association

1445 Ross Avenue, 2nd Floor, MAC T5303-022

Dallas, TX 75202

Attention: Corporate Trust Services

Facsimile: 214-777-4086

 

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

 

Any notice or communication mailed to a Holder shall
be mailed to the Holder at the Holder’s address as it appears on the
registration books of the Registrar and shall be sufficiently given if so
mailed within the time prescribed.  Any
notice or communication shall also be so mailed or delivered 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 shall not affect its sufficiency with respect to
other Holders.  If a notice or
communication is mailed in the manner provided above, it is duly given, whether
or not the addressee receives it.

 

Each of the Trustee and Collateral Agent agrees to
accept and act upon instructions or directions pursuant to this Indenture or
the Collateral Documents, the First Lien
Intercreditor Agreement or the Junior Lien Intercreditor Agreement sent
by unsecured e-mail, facsimile transmission or other similar unsecured
electronic methods.  If the party elects
to give the Trustee or Collateral Agent e-mail or facsimile instructions (or
instructions by a similar electronic method) and the Trustee or Collateral
Agent in its 

 

96

 

discretion elects to act upon such instructions,
the Trustee’s or Collateral Agent’s understanding of such instructions shall be
deemed controlling.  Neither the Trustee
nor the Collateral Agent shall be liable for any losses, costs or expenses
arising directly or indirectly from the Trustee’s or Collateral Agent’s reliance
upon and compliance with such instructions notwithstanding such instructions
conflict or are inconsistent with a subsequent written instruction.  The party providing electronic instructions
agrees to assume all risks arising out of the use of such electronic methods to
submit instructions and directions to the Trustee or Collateral Agent,
including without limitation the risk of the Trustee or Collateral Agent acting
on unauthorized instructions, and the risk or interception and misuse by third
parties.

 

SECTION 12.2.            Certificate and Opinion as to
Conditions Precedent.  Upon any request
or application by the Company to the Trustee to take or refrain from taking any
action under this Indenture (except in connection with the original issuance of
Notes on the date hereof), the Company shall furnish to the Trustee:

 

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

 

(ii)     an Opinion of Counsel in
form and substance reasonably satisfactory to the Trustee stating that, in the
opinion of such counsel, all such conditions precedent have been complied with.

 

SECTION 12.3.            Statements Required in
Certificate or Opinion.  Each
certificate or opinion with respect to compliance with a covenant or condition
provided for in this Indenture (other than a certificate provided pursuant to
TIA § 314(a)(4)) shall comply with the provisions of TIA § 314(e) and
also shall include:

 

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

 

(ii)     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;

 

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

 

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

 

In giving such Opinion of Counsel, counsel may rely
as to factual matters on an Officers’ Certificate or on certificates of public
officials.

 

SECTION 12.4.            When Notes Disregarded.  In determining whether the Holders of the
required principal amount of Notes have concurred in any direction, waiver or
consent, Notes owned by Parent, the Company, any Subsidiary Guarantor or by any
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Company shall be disregarded and deemed not to
be outstanding, except that, for the purpose of determining whether the Trustee
shall be protected in relying on any such direction, waiver or consent, only
Notes which a Trust Officer of the Trustee knows 

 

97

 

are so owned shall be so disregarded.  Also, subject to the foregoing, only Notes
outstanding at the time shall be considered in any such determination.

 

SECTION 12.5.            Rules by Trustee, Paying
Agent and Registrar.  The Trustee may
make reasonable rules for action by, or a meeting of, Holders.  The Registrar and the Paying Agent may make
reasonable rules for their functions.

 

SECTION 12.6.            Days Other than Business Days.  If a payment date is not a Business Day,
payment shall be made on the next succeeding day that is a Business Day, and no
interest shall accrue for the intervening period.  If a regular Record Date is not a Business
Day, the Record Date shall not be affected.

 

SECTION 12.7.            Governing Law.  This Indenture, the Notes and the Guarantees
shall be governed by, and construed in accordance with, the laws of the State
of New York.

 

SECTION 12.8.            Waiver of Jury Trial.  EACH OF PARENT, THE COMPANY, THE SUBSIDIARY
GUARANTORS AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

 

SECTION 12.9.            No Recourse Against Others.  An incorporator, director, officer, employee,
stockholder or controlling person, as such, of Parent, the Company or any
Subsidiary Guarantor shall not have any liability for any obligations of
Parent, the Company or any Subsidiary Guarantor under the Notes, the
Guarantees, the Collateral Documents, the First Lien Intercreditor Agreement,
the Junior Lien Intercreditor Agreement or this Indenture or for any claim
based on, in respect of or by reason of such obligations or their
creation.  By accepting a Note, each
Holder shall waive and release all such liability.  The waiver and release shall be part of the
consideration for the issue of the Notes.

 

SECTION 12.10.          Successors.  All agreements of Parent, the Company and
each Subsidiary Guarantor in this Indenture and the Notes shall bind their
respective successors.  All agreements of
the Trustee in this Indenture shall bind its successors.

 

SECTION 12.11.          Multiple Originals.  The parties may sign any number of copies of
this Indenture.  Each signed copy shall
be an original, but all of them together represent the same agreement.  One signed copy is enough to prove this
Indenture.

 

SECTION 12.12.          Variable Provisions.  The Company initially appoints the Trustee as
Paying Agent and Registrar and custodian with respect to any Global Notes.

 

SECTION 12.13.          Table of Contents; Headings.  The table of contents, cross-reference sheet
and headings of the Articles and Sections of this Indenture have been inserted
for convenience of reference only, are not intended to be considered a part
hereof and shall not modify or restrict any of the terms or provisions hereof.

 

SECTION 12.14.          Direction by Holders to Enter into
Collateral Documents, the First Lien Intercreditor Agreement and the Junior
Lien Intercreditor Agreement.  By
accepting a Note, each Holder is deemed to have authorized and directed the
Trustee and the Collateral Agent, as applicable, to 

 

98

 

enter into the Collateral Documents the First
Lien Intercreditor Agreement and the Junior Lien Intercreditor Agreement.

 

SECTION 12.15.          Force Majeure.  In no event shall the Trustee or the
Collateral Agent be responsible or liable for any failure or delay in the
performance of its obligations hereunder arising out of or caused by, directly
or indirectly, forces beyond its control, including, without limitation,
strikes, work stoppages, accidents, acts of war or terrorism, civil or military
disturbances, nuclear or natural catastrophes or acts of God, and
interruptions, loss or malfunctions of utilities, communications or computer
(software and hardware) services; it being understood that the Trustee and the
Collateral Agent shall use reasonable efforts which are consistent with
accepted practices in the banking industry to resume performance as soon as
practicable under the circumstances.

 

SECTION 12.16.          USA Patriot Act.  The parties hereto acknowledge that in
accordance with Section 326 of the USA Patriot Act the Trustee and the
Trust Officers, like all financial institutions and in order to help fight the
funding of terrorism and money laundering, are required to obtain, verify, and
record information that identifies each person or legal entity that establishes
a relationship or opens an account.  The
parties to this agreement agree that they shall provide the Trustee and the
Trust Officers with such information as they may request in order to satisfy
the requirements of the USA Patriot Act.

 

SECTION 12.17.          Trust Indenture Act Controls.  If any provision hereof limits, qualifies or
conflicts with the duties imposed by TIA § 318(c), the imposed duties
shall control.

 

SECTION 12.18.          Communication by Holders of Notes
with Other Holders of Notes.  Holders
of the Notes may communicate pursuant to TIA § 312(b) with other
Holders of Notes with respect to their rights under this Indenture or the
Notes.  The Company, the Trustee, the
Registrar and anyone else shall have the protection of TIA § 312(c).

 

99

 

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

 

	
   

  	
  REDDY ICE CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven J. Janusek

  
	
   

  	
   

  	
  Name:

  	
  Steven J. Janusek

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President,
  Chief

  Financial Officer and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  REDDY ICE HOLDINGS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven J. Janusek

  
	
   

  	
   

  	
  Name:

  	
  Steven J. Janusek

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President,
  Chief

  Financial Officer and Secretary

  

 

[Signature
Page to Indenture]

 

 

	
   

  	
  WELLS FARGO BANK, NATIONAL
  ASSOCIATION, as Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Patrick T. Giordano

  
	
   

  	
   

  	
  Name:

  	
  Patrick T. Giordano

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, NATIONAL
  ASSOCIATION, as Collateral Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Patrick T. Giordano

  
	
   

  	
   

  	
  Name:

  	
  Patrick T. Giordano

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

[Signature
Page to Indenture]

 

 

Annex A

 

Mortgaged Property

 

	
  15960
  Shaw Rd.

  	
  Athens

  	
  AL

  
	
  4626
  S. 40th St.

  	
  Phoenix

  	
  AZ

  
	
  2101
  31st Street

  	
  Denver

  	
  CO

  
	
  604
  N. Frontage Rd

  	
  Plant
  City (Tampa)

  	
  FL

  
	
  5050
  S.W. 51st Street

  	
  Davie

  	
  FL

  
	
  117
  Society Ave.

  	
  Albany

  	
  GA

  
	
  1586
  E. Taylor Ave.

  	
  East
  Point

  	
  GA

  
	
  1111
  Burt St.

  	
  Shreveport

  	
  LA

  
	
  8700
  Ice Drive

  	
  Raleigh

  	
  NC

  
	
  5525
  S.W. 29th Street

  	
  Oklahoma
  City

  	
  OK

  
	
  6004
  N. Shepherd Dr.

  	
  Houston

  	
  TX

  
	
  7901
  Springdale Road

  	
  Austin

  	
  TX

  
	
  1104
  - 1130 E. Durango

  	
  San
  Antonio

  	
  TX

  
	
  4320
  Duncanville Rd

  	
  Dallas

  	
  TX

  
	
  610
  Pleasant Valley Rd

  	
  Harrisonburg

  	
  VA

  
	
  W.
  Moler Ave. @ Factory St.

  	
  Martinsburg

  	
  WV

  

 

 

EXHIBIT A

 

[FORM OF FACE OF NOTE]

Global Note Legend, if applicable

Private Placement Legend, if applicable

 

A-1

 

	
  No. [      ]

  	
  Principal Amount $[                            ],

  
	
   

  	
  as revised by the Schedule of Increases

  
	
   

  	
  or Decreases in the Global Note attached hereto

  

 

CUSIP NO.               

 

REDDY ICE CORPORATION

11.25% Senior Secured Note due 2015

 

Reddy Ice Corporation, a Nevada corporation, promises
to pay to
[                      ],
or registered assigns, the initial principal amount set forth on the Schedule
of Increases or Decreases in the Global Note attached hereto, as revised by the
Schedule of Increases or Decreases in the Global Note attached hereto, on March 15,
2015.

 

Interest Payment Dates:  March 15 and September 15.

 

Record Dates: 
March 1 and September 1.

 

Additional provisions of this Note are set forth on
the other side of this Note.

 

A-2

 

	
   

  	
  REDDY ICE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-3

 

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

  	
   

  	
  Date:

  

 

A-4

 

[FORM OF REVERSE SIDE OF NOTE]

 

11.25% Senior Secured Note due 2015

 

1.             Interest

 

Reddy Ice Corporation, a Nevada corporation (such
corporation, and its successors and assigns under the Indenture hereinafter
referred to, being herein called the “Company”), promises to pay
interest on the principal amount of this Note at the rate per annum shown
above.

 

The Company shall pay interest semiannually on March 15
and September 15 of each year, with the first interest payment to be made
on September 15, 2010(1).  Interest on the Notes shall accrue
from the most recent date to which interest has been paid on the Notes or, if
no interest has been paid, from March 15, 2010(2).  The
Company shall pay interest on overdue principal or premium, if any (plus
interest on such interest to the extent lawful), at the rate borne by the Notes
to the extent lawful.  Interest shall be
computed on the basis of a 360-day year of twelve 30-day months.  Interest shall accrue (in addition to the
interest rate borne by the Notes) from and including the date on which an Event
of Default under Section 6.1(a)(i), 6.1(a)(ii), 6.1(a)(vii) or
6.1(a)(viii) shall occur to but excluding the date on which such
Event of Default shall have been cured, at a rate per annum equal to 1.0% of
the principal amount of the Notes.

 

(1)          With
respect to the Initial Notes.

 

(2)          With
respect to the Initial Notes.

 

2.             Method of
Payment

 

By no later than 10:00 a.m. (New York City
time) on the date on which any principal of, premium, if any, or interest on
any Note is due and payable, the Company shall irrevocably deposit with the
Trustee or the Paying Agent money sufficient to pay such principal, premium, if
any, and/or interest.  The Company shall
pay interest (except Defaulted Interest) to the Persons who are registered
Holders of Notes at the close of business on the March 1 and September 1
next preceding the Interest Payment Date unless Notes are cancelled,
repurchased or redeemed after the record date and before the Interest Payment
Date.  Holders must surrender Notes to a
Paying Agent to collect principal payments. 
The Company shall pay principal, premium, if any, and interest in money
of the United States that at the time of payment is legal tender for payment of
public and private debts.  Payments in
respect of Notes represented by a Global Note (including principal, premium, if
any, and interest) shall be made by the transfer of immediately available funds
to the accounts specified by the Depositary. 
The Company shall make all payments in respect of a Definitive Note
(including principal, premium, if any, and interest) by mailing a check to the
registered address of each Holder thereof.

 

(1)           With respect to the Initial Notes.

 

(2)           With respect to the
Initial Notes.

 

A-5

 

3.             Paying Agent and
Registrar

 

Initially, Wells Fargo Bank, National
Association, duly organized and existing under the laws of the
United States of America and having a corporate trust office at Wells Fargo
Bank, National Association, 1445 Ross Avenue, 2nd Floor, Dallas, TX
75202, Attention: Corporate Trust Services (“Trustee”), shall act as
Paying Agent and Registrar.  The Company
may appoint and change any Paying Agent, Registrar or co-registrar without
notice to any Holder.  The Company or any
of its domestically incorporated Wholly-Owned Subsidiaries may act as Paying
Agent, Registrar or co-registrar.

 

4.             Indenture

 

The Company issued the Notes under an Indenture
dated as of March 15, 2010 (as it may be amended or supplemented from time
to time in accordance with the terms thereof, the “Indenture”), among
the Company, Parent, the Subsidiary Guarantors and the Trustee.  The terms of the Notes include those stated
in the Indenture.  Capitalized terms used
herein and not defined herein have the meanings ascribed thereto in the
Indenture.  The Notes are subject to all
such terms, and Holders are referred to the Indenture and the Securities Act
for a statement of those terms.  To the
extent any provision of this Note conflicts with the express provisions of the
Indenture, the provisions of the Indenture shall govern and be controlling.

 

The Notes are senior secured obligations of the
Company.  This Note is one of the 11.25%
Senior Secured Notes due 2015 referred to in the Indenture.  The Notes include (i) $300,000,000
aggregate principal amount of the Company’s 11.25% Senior Secured Notes due 2015
issued under the Indenture on March 15, 2010 (herein called “Initial
Notes”), (ii) pursuant to the Exchange Offer, Exchange Notes from time
to time for issue only in exchange for a like principal amount of Initial Notes
and (iii) if and when issued, additional 11.25% Senior Secured Notes due
2015 of the Company that may be issued from time to time under the Indenture
subsequent to March 15, 2010 (herein called “Additional Notes”).  The Indenture contains the terms and
restrictions set forth in the Indenture or made a part of the Indenture
pursuant to the requirements of the TIA. 
The Indenture, among other things, imposes certain covenants with
respect to the following matters:  the
Incurrence of Indebtedness by the Company and its Restricted Subsidiaries, the
payment of dividends and other distributions on the Capital Stock of the
Company, the purchase or redemption of Capital Stock of the Company, certain
purchases or redemptions of Subordinated Obligations and other Junior Lien
Obligations, the sale or transfer of assets and Capital Stock of Subsidiaries,
the issuance or sale of Capital Stock of Restricted Subsidiaries, the
incurrence of certain Liens, future Subsidiary Guarantors, the business
activities and investments of the Company and its Restricted Subsidiaries and
transactions with Affiliates.  In
addition, the Indenture limits the ability of the Company and its Restricted
Subsidiaries to enter into agreements that restrict distributions and dividends
from Subsidiaries.  The Indenture also
imposes requirements with respect to the provision of financial
information.  The Indenture also contains
certain exceptions to the foregoing, and this description is qualified in its
entirety by reference to the Indenture.

 

5.             Guarantee

 

To guarantee the due and punctual payment of the
principal, premium, if any, and interest (including post-filing or
post-petition interest) on the Notes and all other amounts payable by the Company
under the Indenture, the Notes, the Collateral Documents, the First Lien
Intercreditor Agreement and the Junior Lien Intercreditor Agreement when and as
the same shall be due and payable, whether at maturity, by acceleration or
otherwise, according to the terms of the Notes and the Indenture, Parent has
unconditionally Guaranteed (and future guarantors, together with Parent, shall
unconditionally Guarantee), 

 

A-6

 

jointly and severally, such obligations on a
senior, secured basis on a pari passu
basis with the Liens securing any Pari Passu Lien Indebtedness pursuant to the
terms of the Indenture.

 

6.             Security

 

The Initial Notes, Exchange Notes and Additional
Notes, if any, are treated as a single class of securities under the Indenture
and shall be secured by first-priority Liens and security interests, subject to
Permitted Liens, in the Collateral on the terms and conditions set forth in the
Indenture and the Collateral Documents. 
The Collateral Agent holds the Collateral in trust for the benefit of
the Trustee and the Holders, in each case pursuant to the Collateral
Documents.  Each Holder, by accepting
this Note, consents and agrees to the terms of the Collateral Documents
(including the provisions providing for the foreclosure and release of
Collateral) as the same may be in effect or may be amended from time to time in
accordance with their terms, the Indenture, the First Lien Intercreditor
Agreement and the Junior Lien Intercreditor Agreement and authorizes and directs
the Collateral Agent to enter into the Collateral Documents, the First Lien
Intercreditor Agreement and the Junior Lien Intercreditor Agreement, and to
perform its obligations and exercise its rights thereunder in accordance
therewith.

 

7.             Redemption

 

(a)           Except
as described in clauses (b) and (c) below, the Notes are not redeemable
until March 15, 2013.  On and after March 15,
2013, the Company may redeem all or, from time to time, a portion of the Notes,
at the following redemption prices (expressed as a percentage of principal
amount of the Notes to be redeemed) plus accrued and unpaid interest on the
Notes, if any, to the applicable Redemption Date (subject to the right of
Holders of record on the relevant Record Date to receive interest due on the
relevant Interest Payment Date), if redeemed during the twelve-month period
beginning on March 15 of the years indicated below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2013

  	
   

  	
  105.625

  	
  %

  
	
  2014

  	
   

  	
  100.000

  	
  %

  

 

(b)           At
any time prior to March 15, 2013, the Company may redeem the Notes, in
whole or in part, at a redemption price equal to 100% of the principal amount
thereof plus the Applicable Premium, plus accrued and unpaid interest, if any,
and additional interest thereon, if any, to, but excluding, the Redemption Date
(subject to the rights of Holders of record on the relevant Record Date to receive
interest due on the relevant Interest Payment Date).

 

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

 

(1)           1.0%
of the principal amount of such Note; and

 

(2)           the
excess, if any, of (a) the present value as of such Redemption Date of (i) the
redemption price of such Note on March 15, 2013, plus (ii) the
remaining scheduled interest payments due on such Note through March 15,
2013 (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 of such
Note.

 

A-7

 

“Treasury Rate” means, as obtained by the
Company, the yield to maturity at the time of computation 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 March 15, 2013; provided, however, that if the period from the Redemption Date to March 15,
2013 is not equal to the constant maturity of a United States Treasury security
for which a weekly average yield is given, the Treasury Rate shall be obtained
by linear interpolation (calculated to the nearest one-twelfth of a year) from
the weekly average yields of United States Treasury securities for which such
yields are given, except that if the period from the Redemption Date to March 15,
2013 is less than one year, the weekly average yield on actually traded United
States Treasury securities adjusted to a constant maturity of one year shall be
used.

 

(c)           On
or prior to March 15, 2013, the Company may on any one or more occasions
redeem up to 35% of the aggregate principal amount of the Notes (which includes
Additional Notes, if any) with the Net Cash Proceeds of one or more Qualified
Equity Offerings at a redemption price of 111.25% of the principal amount
thereof, plus accrued and unpaid interest to the Redemption Date, if any (provided that if the Qualified Equity Offering is an
offering by Parent, a portion of the Net Cash Proceeds thereof equal to the
amount required to redeem any such Notes is contributed to the equity capital
of the Company); provided, however,
that:

 

(i)            at least 65% of the aggregate
principal amount of the Notes (which includes Additional Notes, if any) remains
outstanding immediately after the occurrence of each such redemption (other
than Notes held, directly or indirectly, by the Company or its Affiliates); and

 

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

 

Notice of any redemption pursuant to clause (c) may
be given prior to the completion of such Qualified Equity Offering, and any
such redemption or notice may, at the Company’s discretion, be subject to one
or more conditions precedent, including, but not limited to, completion of the
related Qualified Equity Offering.

 

(d)           Any
redemption pursuant to this paragraph 7 shall be made pursuant to the provisions
of Section 5.1, and Sections 5.2 through 5.7 of the
Indenture.

 

A-8

 

[8.            Registration
Rights Agreement.  The Notes are
entitled to the benefit of the Registration Rights Agreement.](3)

 

9.             Change of
Control; Asset Sales

 

(a)           If
a Change of Control occurs, unless the Company has exercised its right to redeem
all of the Notes under Section 5.1 of the Indenture, each Holder
shall have the right to require the Company to repurchase all or any part (in
integral multiples of $1,000 except that no Note may be tendered in part if the
remaining principal amount would be less than $2,000) of such Holder’s Notes at
a purchase price in cash equal to 101% of the principal amount of the Notes
plus accrued and unpaid interest, if any, to, but excluding, the date of
purchase (subject to the right of Holders of record on the relevant Record Date
to receive interest due on the relevant Interest Payment Date) as provided in,
and subject to the terms of, the Indenture.

 

(b)           In
the event of an Asset Disposition that requires the purchase of Notes pursuant
to Section 3.7(c) of the Indenture, the Company shall be
required to make an offer to all Holders to purchase Notes in accordance with Section 3.7(c) of
the Indenture at an offer price in cash in an amount equal to 100% of the
principal amount of the Notes, plus accrued and unpaid interest to, but
excluding, the date of purchase (subject to the rights of Holders of record on
any Record Date to receive payments of interest on the related Interest Payment
Date).  Holders of Notes that are the
subject of an offer to purchase shall receive an Asset Disposition Offer from
the Company prior to any related purchase date and may elect to have such Note
purchased pursuant to such offer by completing the form entitled “Option of
Holder To Elect Purchase” attached hereto, or transferring its interest in such
Note by book-entry transfer, to the Company or a Paying Agent at the address
specified in the notice at least three Business Days before the Asset
Disposition Purchase Date.

 

10.           Denominations;
Transfer; Exchange

 

The Notes are in registered form without coupons in
denominations of principal amount of $2,000 and whole multiples of $1,000 in
excess thereof.  A Holder may transfer or
exchange Notes in accordance with the Indenture.  The Registrar may require a Holder, among
other things, to furnish appropriate endorsements or transfer documents and to
pay any taxes and fees required by law or permitted by the Indenture.  The Registrar need not register the transfer
of or exchange any Notes for a period beginning 15 Business Days before an
Interest Payment Date and ending on such Interest Payment Date.

 

11.           Persons Deemed
Owners

 

The registered Holder of this Note may be treated as
the owner of it for all purposes.

 

(3)           To be included in
Notes bearing the Private Placement Legend.

 

A-9

 

12.           Unclaimed Money

 

If money for the payment of the principal of or
premium, if any, or interest remains unclaimed for two years, the Trustee or
Paying Agent shall pay the money back to the Company at its request unless an
abandoned property law designates another person.  After any such payment, Holders entitled to
the money must look only to the Company and not to the Trustee for payment.

 

13.           Discharge and
Defeasance

 

Subject to certain conditions set forth in the
Indenture, the Company at any time may terminate some or all of its obligations
under the Notes and the Indenture if the Company deposits with the Trustee
money or U.S. Government Obligations for the payment of principal and interest
on the Notes to redemption or maturity, as the case may be.

 

14.           Amendment, Waiver

 

The Indenture, the Notes and the Collateral
Documents may be amended or waived as set forth in Article IX of the
Indenture.

 

15.           Defaults and
Remedies

 

Events of Default shall be as set forth in Article VI
of the Indenture.

 

If an Event of Default occurs and is continuing, the
Trustee or Holders of at least 25% in aggregate principal amount of the
outstanding Notes then outstanding may declare all the Notes to be due and
payable immediately.  Certain events of
bankruptcy or insolvency with respect to the Company are Events of Default
which shall result in the Notes being due and payable immediately upon the
occurrence of such Events of Default.

 

Holders may not enforce the Indenture or the Notes
except as provided in the Indenture.  The
Trustee and the Collateral Agent may refuse to enforce the Indenture or the
Notes unless each receives indemnity or security reasonably satisfactory to
each of the Trustee and the Collateral Agent. 
Subject to certain limitations, Holders of a majority in principal
amount of the Notes may direct the Trustee in its exercise of any trust or
power.  The Trustee may withhold from
Holders notice of any continuing Default or Event of Default (except a Default
or Event of Default in payment of principal or interest) if it determines that
withholding notice is in their interest.

 

16.           Trustee Dealings
with the Company

 

Subject to certain limitations set forth in the
Indenture, the Trustee under the Indenture, in its individual or any other
capacity, may become the owner or pledgee of Notes and may otherwise deal with
and collect obligations owed to it by the Company or its Affiliates and may otherwise
deal with the Company or its Affiliates with the same rights it would have if
it were not Trustee.

 

17.           No Recourse
Against Others

 

A director, officer, employee, incorporator,
stockholder or controlling person, as such, of Parent, the Company or any
Subsidiary Guarantor shall not have any liability for any obligations of Parent,
the Company or any Subsidiary Guarantor under the Notes, the Indenture, the
Guarantees, the 

 

A-10

 

Collateral Documents, the First Lien
Intercreditor Agreement or the Junior Lien Intercreditor Agreement or for any
claim based on, in respect of, or by reason of, such obligations or their
creation.  By accepting a Note, each
Holder waives and releases all such liability. 
The waiver and release shall be part of the consideration for the issue
of the Notes.

 

18.           Authentication

 

This Note shall not be valid until an authorized
signatory of the Trustee (or an authenticating agent acting on its behalf)
manually signs the certificate of authentication on the other side of this
Note.

 

19.           Abbreviations

 

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

 

20.           CUSIP Numbers

 

Pursuant to a recommendation promulgated by the
Committee on Uniform Note Identification Procedures the Company has caused
CUSIP numbers to be printed on the Notes. 
No representation is made as to the accuracy of such numbers as printed
on the Notes and reliance may be placed only on the other identification
numbers placed thereon.

 

21.           Successor Entity

 

When a successor entity assumes, in accordance with
the Indenture, all the obligations of its predecessor under the Notes and the
Indenture, and immediately before and thereafter no Default or Event of Default
exists and all other conditions of the Indenture are satisfied, the predecessor
entity shall be released from those obligations.

 

22.           Governing Law

 

This Note shall be governed by, and construed in
accordance with, the laws of the State of New York.

 

The Company shall furnish to any Holder upon written
request and without charge to the Holder a copy of the Indenture which has in
it the text of this Note in larger type. 
Requests may be made to:

 

Reddy Ice Corporation

8750
North Central Expressway

Suite 800

Dallas, Texas  75231

Attention:  Steven J. Janusek

Facsimile No.:  (214) 528-1532

 

A-11

 

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 soc. sec. 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.

 

A-12

 

[TO BE ATTACHED TO GLOBAL NOTES]

 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE

 

The initial principal amount of the Note shall be $
[                            ].  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

  Notes Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-13

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to elect to have this Note purchased by
the Company pursuant to Section 3.7 or 3.9 of the Indenture,
check the box:

 

	
   

  	
  o

  	
   

  	
  o

  	
   

  
	
   

  	
  3.7

  	
   

  	
  3.9

  	
   

  

 

If you want to elect to have only part of this Note
purchased by the Company pursuant to Section 3.7 or 3.9 of
the Indenture, state the amount in principal amount (must be in denominations of
$2,000 or integral multiples of $1,000 in excess thereof):  $

 

	
  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.

 

A-14

 

PARENT GUARANTY

 

Pursuant to the Indenture (the “Indenture”)
dated as of March 15, 2010 among Reddy Ice Corporation, Reddy Ice Holdings, Inc.
(“Parent” and the “Guarantor”), the Subsidiary Guarantors party
thereto and Wells Fargo Bank, National Association, as trustee (the “Trustee”)
and as collateral agent, the Guarantor, subject to the provisions of Article X
of the Indenture, hereby fully, unconditionally and irrevocably guarantees on a
pari passu basis with the Liens securing
any Pari Passu Lien Indebtedness, as primary obligor and not merely as surety,
to each Holder of the Notes, to the extent lawful, and the Trustee the full and
punctual payment when due, whether at maturity, by acceleration, by redemption
or otherwise, of the principal of, premium, if any, and interest on the Notes
and all other obligations of the Company under the Indenture and the Notes
(including without limitation interest accruing after the filing of any
petition in bankruptcy, or the commencement of any insolvency, reorganization
or like proceeding, relating to the Company or any Guarantor whether or not a
claim for post-filing or post-petition interest is allowed in such proceeding
and the obligations under Section 7.6 of the Indenture) and the
Collateral Documents (all the foregoing being hereinafter collectively called
the “Guarantor Obligations”). 
Parent agrees (to the extent lawful) that the Guarantor Obligations may
be extended or renewed, in whole or in part, without notice or further assent
from it, and that it shall remain bound under this Parent Guaranty
notwithstanding any extension or renewal of any Guarantor Obligation.

 

The Guarantor Obligations of Parent to the Holders
of the Notes pursuant to the Parent Guaranty and the Indenture are expressly
set forth in Article X of the Indenture and reference is hereby
made to the Indenture for the precise terms of the Parent Guaranty.

 

Parent also agrees to pay any and all reasonable
costs and expenses (including reasonable attorneys’ fees) incurred by the
Trustee or the Holders in enforcing any rights under this Parent Guaranty.

 

A-15

 

	
   

  	
  REDDY ICE HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-16

 

[FORM OF SUBSIDIARY GUARANTY]

 

Pursuant to the Indenture (the “Indenture”)
dated as of March 15, 2010 among Reddy Ice Corporation, Reddy Ice Holdings, Inc.
(“Parent”), the Subsidiary Guarantors party thereto (each a “Subsidiary
Guarantor” and collectively the “Subsidiary Guarantors”) and Wells
Fargo Bank, National Association, as trustee (the “Trustee”) and as
collateral agent, each Subsidiary Guarantor, subject to the provisions of Article X
of the Indenture, hereby fully, unconditionally and irrevocably guarantees on a
pari passu basis with the Liens securing
any Pari Passu Lien Indebtedness, as primary obligor and not merely as surety,
jointly and severally with each other Subsidiary Guarantor, to each Holder of
the Notes, to the extent lawful, and the Trustee the full and punctual payment
when due, whether at maturity, by acceleration, by redemption or otherwise, of
the principal of, premium, if any, and interest on the Notes and all other
obligations of the Company under the Indenture and the Notes (including without
limitation interest accruing after the filing of any petition in bankruptcy, or
the commencement of any insolvency, reorganization or like proceeding, relating
to Parent, the Company or any Subsidiary Guarantor whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding and the
obligations under Section 7.6 of the Indenture) and the Collateral
Documents (all the foregoing being hereinafter collectively called the “Guarantor
Obligations”).  Each Subsidiary
Guarantor agrees (to the extent lawful) that the Guarantor Obligations may be
extended or renewed, in whole or in part, without notice or further assent from
it, and that it shall remain bound under this Subsidiary Guaranty
notwithstanding any extension or renewal of any Guarantor Obligation.

 

The Guarantor Obligations of the Guarantors to the
Holders of the Notes pursuant to the Subsidiary Guaranty and the Indenture are
expressly set forth in Article X of the Indenture and reference is
hereby made to the Indenture for the precise terms of the Subsidiary Guaranty.

 

Each Subsidiary Guarantor also agrees to pay any and
all reasonable costs and expenses (including reasonable attorneys’ fees)
incurred by the Trustee or the Holders in enforcing any rights under this
Subsidiary Guaranty.

 

	
   

  	
  [Name of Subsidiary]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-17

 

EXHIBIT B

 

FORM OF CERTIFICATE OF TRANSFER

 

Reddy
Ice Corporation

8750
North Central Expressway

Suite 800

Dallas,
Texas  75231

Attention:  Steven J. Janusek

Facsimile
No.:  (214) 528-1532

 

Wells
Fargo Bank, National Association

1445 Ross Avenue, 2nd Floor

Dallas,
TX 75202

Attention:  Corporate Trust
Services

Facsimile:  214-777-4086

 

Re:  11.25% Senior Secured
Notes due 2015

 

Reference
is hereby made to the Indenture, dated as of March 15, 2010 (the “Indenture”), among Reddy Ice Corporation, as Issuer (the “Company”), the Guarantors named therein and Wells Fargo
Bank, National Association, as Trustee. 
Capitalized terms used but not defined herein shall have the meanings
given to them in the Indenture.

 

(the “Transferor”)
owns and proposes to transfer the Note[s] or interest in such Note[s] specified
in Annex A hereto, in the principal amount of
$         in such Note[s] or interests
(the “Transfer”), to
                    
(the “Transferee”), as further specified in
Annex A hereto.  In connection with the Transfer,
the Transferor hereby certifies that:

 

[CHECK ALL THAT APPLY]

 

1.                                       o                                    Check
if Transferee will take delivery of a beneficial interest in the 144A Global
Note or a Definitive Note pursuant to Rule 144A. The Transfer
is being effected pursuant to and in accordance with Rule 144A under the
United States Securities Act of 1933, as amended (the “Securities
Act”), and, accordingly, the Transferor hereby further certifies
that the beneficial interest or Definitive Note is being transferred to a
Person that the Transferor reasonably believed and believes is purchasing the
beneficial interest or Definitive Note for its own account, or for one or more
accounts with respect to which such Person exercises sole investment
discretion, and such Person and each such account is a “qualified institutional
buyer” within the meaning of Rule 144A in a transaction meeting the
requirements of Rule 144A and such Transfer is in compliance with any applicable
blue sky securities laws of any state of the United States. Upon consummation
of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on
the 144A Global Note and/or the Definitive Note and in the Indenture and the
Securities Act.

 

B-1

 

2.                                       o                                    Check
if Transferee will take delivery of a beneficial interest in the Regulation S
Global Note or a Definitive Note pursuant to Regulation S.  The Transfer is being effected pursuant to
and in accordance with Rule 903 or Rule 904 under the Securities Act
and, accordingly, the Transferor hereby further certifies that (i) the
Transfer is not being made to a Person in the United States and (x) at the
time the buy order was originated, the Transferee was outside the United States
or such Transferor and any Person acting on its behalf reasonably believed and
believes that the Transferee was outside the United States or (y) the
transaction was executed in, on or through the 
facilities of a designated offshore securities market and neither such
Transferor nor any Person acting on its behalf knows that the transaction was
prearranged with a buyer in the United States, (ii) no directed selling
efforts have been made in contravention of the requirements of Rule 903(b) or
Rule 904(b) of Regulation S under the Securities Act, (iii) the
transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act and (iv) if the proposed transfer is
being made prior to the expiration of the Restricted Period, the transfer is
not being made to a U.S. Person or for the account or benefit of a U.S. Person
(other than an Initial Purchaser).  Upon
consummation of the proposed transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Note will be
subject to the restrictions on Transfer enumerated in the Private Placement
Legend printed on the Regulation S Global Note and/or the Definitive Note and
in the Indenture and the Securities Act.

 

3.                                       o                                    Check
and complete if Transferee will take delivery of a beneficial interest in an
Unrestricted Global Note pursuant to any provision of the Securities Act other
than Rule 144A or Regulation S.  The Transfer is being effected in compliance
with the transfer restrictions applicable to beneficial interests in Restricted
Global Notes and Restricted Definitive Notes and pursuant to and in accordance
with the Securities Act and any applicable blue sky securities laws of any
state of the United States, and accordingly the Transferor hereby further
certifies that (check one):

 

(a)                                  o                                    such Transfer
is being effected pursuant to and in accordance with Rule 144 under the
Securities Act;

 

or

 

(b)                                 o                                    or such
Transfer is being effected to the Company or a subsidiary thereof;

 

or

 

(c)                                  o                                    such Transfer
is being effected pursuant to an effective registration statement under the
Securities Act and in compliance with the prospectus delivery requirements of
the Securities Act.

 

4.                                       o                                    Check
if Transferee will take delivery of a beneficial interest in an Unrestricted
Global Note or of an Unrestricted Definitive Note.

 

(a)                                  o                                    Check
if Transfer is pursuant to Rule 144.  (i)  The Transfer is being effected
pursuant to and in accordance with Rule 144 under the Securities Act and
in compliance with the transfer restrictions contained in the 

 

B-2

 

Indenture and any applicable blue sky
securities laws of any state of the United States and (ii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities
Act.  Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will no longer be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on
the Restricted Global Notes, on Restricted Definitive Notes and in the
Indenture.

 

(b)                                 o                                    Check
if Transfer is pursuant to Regulation S.  (i)  The Transfer is being effected
pursuant to and in accordance with Rule 903 or Rule 904 under the
Securities Act and in compliance with the transfer restrictions contained in
the Indenture and any applicable blue sky securities laws of any state of the
United States and (ii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act. 
Upon consummation of the proposed Transfer in accordance with the terms
of the Indenture, the transferred beneficial interest or Definitive Note will
no longer be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Restricted Global Notes, on Restricted
Definitive Notes and in the Indenture.

 

(c)                                  o                                    Check
if Transfer is pursuant to other exemption.  (i)  The Transfer is being effected
pursuant to and in compliance with an exemption from the registration requirements
of the Securities Act other than Rule 144, Rule 903 or Rule 904
and in compliance with the transfer restrictions contained in the Indenture and
any applicable blue sky securities laws of any State of the United States and (ii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities
Act.  Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will not be subject to the restrictions
on transfer enumerated in the Private Placement Legend printed on the
Restricted Global Notes or Restricted Definitive Notes and in the Indenture.

 

This certificate and the statements contained herein
are made for your benefit and the benefit of the Company.

 

 

	
   

  	
   

  
	
   

  	
  [Insert
  Name of Transferor]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

B-3

 

	
  Dated:

  	
   

  	
   

  

 

B-4

 

ANNEX A TO CERTIFICATE OF TRANSFER

 

1.                                       The Transferor owns and
proposes to transfer the following:

 

[CHECK
ONE OF (a) OR (b)]

 

(a)                                  o                                    a beneficial
interest in the:

 

(i)                                      o                                    144A Global
Note (CUSIP
[               ]),
or

 

(ii)                                   o                                    Regulation S
Global Note (CUSIP
[               ])),  or

 

(b)                                 o                                    a Restricted
Definitive Note.

 

2.                                       After the Transfer the
Transferee will hold:

 

[CHECK
ONE]

 

(a)                                  o                                    a beneficial
interest in the:

 

(i)                                      o                                    144A Global
Note  (CUSIP
[               ]),  or

 

(ii)                                   o                                    Regulation S
Global Note (CUSIP
[               ]),
or

 

(iii)                                o                                    Unrestricted
Global Note  (CUSIP
[               ]),  or

 

(b)                                 o                                    a Restricted
Definitive Note; or

 

(c)                                  o                                    an Unrestricted
Definitive Note,

 

in accordance with the terms of the Indenture.

 

B-5

 

EXHIBIT C

 

FORM OF CERTIFICATE OF EXCHANGE

 

Reddy
Ice Corporation

8750
North Central Expressway

Suite 800

Dallas,
Texas  75231

Attention:  Steven J. Janusek

Facsimile
No.:  (214) 528-1532

 

Wells
Fargo Bank, National Association

1445 Ross Avenue, 2nd Floor

Dallas,
TX 75202

Attention:  Corporate Trust Services

Facsimile:  214-777-4086

 

Re:  11.25% Senior Secured
Notes due 2015

 

(CUSIP
[             ])

 

Reference
is hereby made to the Indenture, dated as of March 15, 2010 (the “Indenture”), among Reddy Ice Corporation, as Issuer (the “Company”), the Guarantors named therein and Wells Fargo
Bank, National Association, as trustee. 
Capitalized terms used but not defined herein shall have the meanings
given to them in the Indenture.

 

(the “Owner”)
owns and proposes to exchange the Note[s] or interest in such Note[s] specified
herein, in the principal amount of
$                
in such Note[s] or interests (the “Exchange”).  In connection with the Exchange, the Owner
hereby certifies that:

 

1.                                       Exchange
of Restricted Definitive Notes or Beneficial Interests in a Restricted Global
Note for Unrestricted Definitive Notes or Beneficial Interests in an Unrestricted
Global Note.

 

(a)                                  o                                    Check
if Exchange is from beneficial interest in a Restricted Global Note to beneficial
interest in an Unrestricted Global Note.  In connection with the Exchange of the Owner’s
beneficial interest in a Restricted Global Note for a beneficial interest in an
Unrestricted Global Note in an equal principal amount, the Owner hereby
certifies (i) the beneficial interest is being acquired for the Owner’s
own account without transfer, (ii) such Exchange has been effected in
compliance with the transfer restrictions applicable to the Global Notes and
pursuant to and in accordance with the United States Securities Act of 1933, as
amended (the “Securities Act”), (iii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act
and (iv) the beneficial interest in an Unrestricted Global Note is being
acquired in compliance with any applicable blue sky securities laws of any
state of the United States.

 

(b)                                 o                                    Check
if Exchange is from beneficial interest in a Restricted Global Note to Unrestricted
Definitive Note.  In
connection with the Exchange of the Owner’s beneficial interest in a Restricted
Global Note for an Unrestricted Definitive Note, the Owner hereby certifies (i) the
Definitive Note is being acquired for the Owner’s own account without transfer,
(ii) such Exchange has been 

 

D-1

 

effected in compliance with the transfer
restrictions applicable to the Restricted Global Notes and pursuant to and in
accordance with the Securities Act, (iii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in
order to maintain compliance with the Securities Act and (iv) the
Definitive Note is being acquired in compliance with any applicable blue sky securities
laws of any state of the United States.

 

(c)                                  o                                    Check
if Exchange is from Restricted Definitive Note to beneficial interest in an
Unrestricted Global Note.  In
connection with the Owner’s Exchange of a Restricted Definitive Note for a
beneficial interest in an Unrestricted Global Note, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without
transfer, (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to Restricted Definitive Notes and pursuant to
and in accordance with the Securities Act, (iii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the
beneficial interest is being acquired in compliance with any applicable blue
sky securities laws of any state of the United States.

 

(d)                                 o                                    Check
if Exchange is from Restricted Definitive Note to Unrestricted Definitive Note.  In connection with the Owner’s Exchange of a
Restricted Definitive Note for an Unrestricted Definitive Note, the Owner
hereby certifies (i) the Unrestricted Definitive Note is being acquired
for the Owner’s own account without transfer, (ii) such Exchange has been
effected in compliance with the transfer restrictions applicable to Restricted
Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act
and (iv) the Unrestricted Definitive Note is being acquired in compliance
with any applicable blue sky securities laws of any state of the United States.

 

2.                                       Exchange
of Restricted Definitive Notes or Beneficial Interests in Restricted Global
Notes for Restricted Definitive Notes or Beneficial Interests in Restricted
Global Notes.

 

(a)                                  o                                    Check
if Exchange is from beneficial interest in a Restricted Global Note to
Restricted Definitive Note.  In connection with the Exchange of the Owner’s
beneficial interest in a Restricted Global Note for a Restricted Definitive
Note with an equal principal amount, the Owner hereby certifies that the
Restricted Definitive Note is being acquired for the Owner’s own account
without transfer.  Upon consummation of
the proposed Exchange in accordance with the terms of the Indenture, the
Restricted Definitive Note issued will continue to be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on
the Restricted Definitive Note and in the Indenture and the Securities Act.

 

(b)                                 o                                    Check
if Exchange is from Restricted Definitive Note to beneficial interest in a
Restricted Global Note.  In
connection with the Exchange of the Owner’s Restricted Definitive Note for a
beneficial interest in the [CHECK ONE] _ 144A Global Note, _ Regulation S
Global Note with an equal principal amount, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without transfer
and (ii) such Exchange has been effected in compliance with the transfer
restrictions applicable to the Restricted Global Notes and pursuant to and in
accordance with the Securities Act, and in compliance with any applicable blue
sky securities laws of any state of the United States.  Upon consummation of the proposed Exchange in
accordance with the terms of the Indenture, the beneficial interest issued will
be subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the relevant Restricted Global Note and in the Indenture and
the Securities Act.

 

C-2

 

This certificate and the
statements contained herein are made for your benefit and the benefit of the
Company.

 

 

	
   

  	
   

  
	
   

  	
  [Insert
  Name of Transferor]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

	
  Dated:

  	
   

  	
   

  

 

C-3

 

Exhibit D

 

Form of Mortgage

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