Document:

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                                                                    EXHIBIT 10.3

                                MIDWAY GAMES INC.
                             2704 WEST ROSCOE STREET
                                CHICAGO, IL 60618

                                  June 29, 2004

Mr. Neil D. Nicastro
999 North Sheridan Road
Lake Forest, IL 60045

Dear Mr. Nicastro:

         Reference is made to the Severance Agreement between Midway Games Inc.
and you dated May 6, 2003 (the "Severance Agreement"). Capitalized terms used
herein and not otherwise defined shall have the same meaning ascribed to such
terms in the Severance Agreement.

         The Severance Agreement is hereby amended, effective June 9, 2004, to
delete Section 9 thereof in its entirety and to add a new Section 9 which reads
as follows:

                  "9. OPTIONS. The parties acknowledge that there are no options
                  to be purchased by Midway pursuant to Section 9(b) of the
                  Employment Agreement and that all Midway options held by
                  Nicastro ("Nicastro Stock Options") shall remain in effect in
                  accordance with their terms. If Nicastro is no longer a member
                  of Midway's Board of Directors while any Nicastro Stock
                  Options remain outstanding (the date of such occurrence being
                  hereafter referred to as the "Director Termination Date"), all
                  such outstanding Nicastro Stock Options that are
                  out-of-the-money on the Director Termination Date shall,
                  without further action on the part of Midway or Nicastro, be
                  modified, effective on the date preceding the Director
                  Termination Date, as follows: (i) all unvested
                  out-of-the-money Nicastro Stock Options shall become vested on
                  the Director Termination Date, and (ii) the period during
                  which any out-of-the-money Nicastro Stock Option may be
                  exercised shall continue from the Director Termination Date
                  until the original expiration date of such option. For
                  example, if a ten year option had been granted to Nicastro on
                  February 12, 2000, the original expiration date of such option
                  would be February 12, 2010. All Nicastro Stock Options that
                  are not out-of-the-money shall not be modified. An
                  out-of-the-money stock

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                  option shall be any Nicastro Stock Option with respect to
                  which the option exercise price is equal to or greater than
                  the closing price of Midway Common Stock on the New York
                  Stock Exchange on the Director Termination Date."

         As additional consideration for your agreement to the foregoing, Midway
is immediately paying to you the amount of $277,235.

         Midway confirms that all provisions of your Employment Agreement
relating to your obligations not to compete with Midway or not to solicit
employees of Midway, including Section 8(a) of your Employment Agreement, have
expired and you have no obligations thereunder.

         It is understood that you will have no obligation to serve Midway as a
consultant or advisor after the Director Termination Date.

         In all other respects, the Severance Agreement shall remain in full
force and effect.

         If the foregoing correctly sets forth your understanding, please sign
this letter in the place provided below.

                                                Very truly yours,

                                                MIDWAY GAMES INC.

                                                By: /s/ DAVID F. ZUCKER
                                                    -----------------------
                                                     Name:  David F. Zucker
                                                     Title: President

Accepted and Agreed to:

/s/ NEIL D. NICASTRO
--------------------
Neil D. NicastroSAMSONITE CORPORATION, as Issuer,

 

 

and

 

 

THE BANK OF NEW YORK, as Trustee

 

 

 

INDENTURE

 

Dated as of June 9, 2004

 

 

Floating Rate Senior Notes due 2010

 

 

 

 

CROSS-REFERENCE TABLE

 

	
  TIA

  Section

  	
   

  	
   

  	
  Indenture

  Section

  
	
   

  	
   

  	
   

  
	
  310

  	
  (a)(1)

  	
   

  	
  7.10

  
	
   

  	
  (a)(2)

  	
   

  	
  7.10

  
	
   

  	
  (a)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(4)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  7.08; 7.10

  
	
   

  	
  (b)(1)

  	
   

  	
  7.10

  
	
   

  	
  (b)(9)

  	
   

  	
  7.10

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  311

  	
  (a)

  	
   

  	
  7.11

  
	
   

  	
  (b)

  	
   

  	
  7.11

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  312

  	
  (a)

  	
   

  	
  2.05

  
	
   

  	
  (b)

  	
   

  	
  N.A.

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  313

  	
  (a)

  	
   

  	
  7.06

  
	
   

  	
  (b)(1)

  	
   

  	
  7.06

  
	
   

  	
  (b)(2)

  	
   

  	
  7.06

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
   

  	
  (d)

  	
   

  	
  7.06

  
	
  314

  	
  (a)

  	
   

  	
  4.02; 4.04

  
	
   

  	
  (b)

  	
   

  	
  N.A.

  
	
   

  	
  (c)(1)

  	
   

  	
  N.A.

  
	
   

  	
  (c)(2)

  	
   

  	
  N.A.

  
	
   

  	
  (c)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (d)

  	
   

  	
  N.A.

  
	
   

  	
  (e)

  	
   

  	
  N.A.

  
	
   

  	
  (f)

  	
   

  	
  N.A.

  
	
  315

  	
  (a)

  	
   

  	
  7.01; 7.02

  
	
   

  	
  (b)

  	
   

  	
  7.05

  
	
   

  	
  (c)

  	
   

  	
  7.01

  
	
   

  	
  (d)

  	
   

  	
  6.05; 7.01; 7.02

  
	
   

  	
  (e)

  	
   

  	
  6.11

  
	
  316

  	
  (a) (last sentence)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
   

  	
  (a)(2)

  	
   

  	
  8.02

  
	
   

  	
  (b)

  	
   

  	
  6.07

  
	
   

  	
  (c)

  	
   

  	
  8.04

  
	
  317

  	
  (a)(1)

  	
   

  	
  6.08

  
	
   

  	
  (a)(2)

  	
   

  	
  6.09

  
	
   

  	
  (b)

  	
   

  	
  7.12

  
	
  318

  	
  (a)

  	
   

  	
  N.A.

  
					

 

N.A. means Not Applicable

Note:               This Cross-Reference Table shall not,
for any purpose, be deemed to be a part of this Indenture

 

 

TABLE OF CONTENTS

 

	
  ARTICLE
  1

  	
   

  
	
   

  	
   

  	
   

  
	
  DEFINITIONS AND INCORPORATION BY REFERENCE

  	
   

  
	
   

  	
   

  
	
  Section
  1.01.

  	
  Definitions.

  	
   

  
	
  Section
  1.02.

  	
  Other
  Definitions.

  	
   

  
	
  Section
  1.03.

  	
  Incorporation
  by Reference of Trust Indenture Act.

  	
   

  
	
  Section
  1.04.

  	
  Rules
  of Construction.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  2

  	
   

  
	
   

  	
   

  	
   

  
	
  THE
  SECURITIES

  	
   

  
	
   

  	
   

  
	
  Section
  2.01.

  	
  Dating;
  Incorporation of Form in Indenture.

  	
   

  
	
  Section
  2.02.

  	
  Execution
  and Authentication; Amount.

  	
   

  
	
  Section
  2.03.

  	
  Registrar
  and Paying Agent.

  	
   

  
	
  Section
  2.04.

  	
  Paying
  Agent To Hold Assets in Trust.

  	
   

  
	
  Section
  2.05.

  	
  Securityholder
  Lists.

  	
   

  
	
  Section
  2.06.

  	
  Transfer
  and Exchange.

  	
   

  
	
  Section
  2.07.

  	
  Replacement
  Securities.

  	
   

  
	
  Section
  2.08.

  	
  Outstanding
  Securities.

  	
   

  
	
  Section
  2.09.

  	
  Temporary
  Securities.

  	
   

  
	
  Section
  2.10.

  	
  Cancellation.

  	
   

  
	
  Section
  2.11.

  	
  Defaulted
  Interest.

  	
   

  
	
  Section
  2.12.

  	
  Deposit
  of Moneys.

  	
   

  
	
  Section
  2.13.

  	
  CUSIP,
  ISIN and/or Common Codes.

  	
   

  
	
  Section
  2.14.

  	
  Book-Entry
  Provisions for Global Securities.

  	
   

  
	
  Section
  2.15.

  	
  Special
  Transfer Provisions.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  3

  	
   

  
	
   

  	
   

  	
   

  
	
  REDEMPTION

  	
   

  
	
   

  	
   

  
	
  Section
  3.01.

  	
  Notices
  to Trustee.

  	
   

  
	
  Section
  3.02.

  	
  Selection
  by Trustee of Securities To Be Redeemed.

  	
   

  
	
  Section
  3.03.

  	
  Notice
  of Redemption.

  	
   

  
	
  Section
  3.04.

  	
  Effect
  of Notice of Redemption.

  	
   

  
	
  Section
  3.05.

  	
  Deposit
  of Redemption Price.

  	
   

  
	
  Section
  3.06.

  	
  Securities
  Redeemed in Part.

  	
   

  
	
  Section
  3.07.

  	
  Optional
  Redemption.

  	
   

  
				

 

i

 

	
  ARTICLE
  4

  	
   

  
	
   

  	
   

  
	
  COVENANTS

  	
   

  
	
   

  	
   

  
	
  Section 4.01.

  	
  Payment of Securities.

  	
   

  
	
  Section 4.02.

  	
  SEC Reports.

  	
   

  
	
  Section 4.03.

  	
  Waiver of Stay, Extension or Usury Laws.

  	
   

  
	
  Section 4.04.

  	
  Compliance Certificate.

  	
   

  
	
  Section 4.05.

  	
  Taxes.

  	
   

  
	
  Section 4.06.

  	
  Limitation on Incurrence of Additional Indebtedness.

  	
   

  
	
  Section 4.07.

  	
  Limitation on Preferred Stock of Restricted Subsidiaries.

  	
   

  
	
  Section
  4.08.

  	
  Limitation
  on Restricted Payments.

  	
   

  
	
  Section 4.09.

  	
  Limitation on Certain Asset Sales.

  	
   

  
	
  Section 4.10.

  	
  Limitation on Transactions with Affiliates.

  	
   

  
	
  Section 4.11.

  	
  Payments for Consent.

  	
   

  
	
  Section 4.12.

  	
  Corporate Existence.

  	
   

  
	
  Section 4.13.

  	
  Change of Control.

  	
   

  
	
  Section 4.14.

  	
  Maintenance of Office or Agency.

  	
   

  
	
  Section 4.15.

  	
  Limitation on Liens.

  	
   

  
	
  Section 4.16.

  	
  Limitation on Emerging Market Subsidiaries.

  	
   

  
	
  Section 4.17.

  	
  Limitation on Restricted Subsidiary Dividends; Restriction on Sale
  and Issuance of Subsidiary Stock.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  5

  	
   

  
	
   

  	
   

  	
   

  
	
  SUCCESSOR CORPORATION

  	
   

  
	
   

  	
   

  
	
  Section 5.01.

  	
  Limitation on Consolidation, Merger and Sale of Assets.

  	
   

  
	
  Section 5.02.

  	
  Successor Person Substituted.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  6

  	
   

  
	
   

  	
   

  	
   

  
	
  DEFAULTS AND REMEDIES

  	
   

  
	
   

  	
   

  
	
  Section 6.01.

  	
  Events of Default.

  	
   

  
	
  Section 6.02.

  	
  Acceleration.

  	
   

  
	
  Section 6.03.

  	
  Other Remedies.

  	
   

  
	
  Section 6.04.

  	
  Waiver of Past Defaults and Events of Default.

  	
   

  
	
  Section 6.05.

  	
  Control by Majority.

  	
   

  
	
  Section 6.06.

  	
  Limitation on Suits.

  	
   

  
	
  Section 6.07.

  	
  Rights of Holders To Receive Payment.

  	
   

  
	
  Section 6.08.

  	
  Collection Suit by Trustee.

  	
   

  
	
  Section 6.09.

  	
  Trustee May File Proofs of Claim.

  	
   

  
	
  Section 6.10.

  	
  Priorities.

  	
   

  
	
  Section 6.11.

  	
  Undertaking for Costs.

  	
   

  

 

ii

 

	
  ARTICLE
  7

  	
   

  
	
   

  	
   

  
	
  TRUSTEE

  	
   

  
	
  Section
  7.01.

  	
  Duties
  of Trustee.

  	
   

  
	
  Section 7.02.

  	
  Rights of Trustee.

  	
   

  
	
  Section 7.03.

  	
  Individual Rights of Trustee.

  	
   

  
	
  Section 7.04.

  	
  Trustee’s Disclaimer.

  	
   

  
	
  Section 7.05.

  	
  Notice of Defaults.

  	
   

  
	
  Section 7.06.

  	
  Reports by Trustee to Holders.

  	
   

  
	
  Section 7.07.

  	
  Compensation and Indemnity.

  	
   

  
	
  Section 7.08.

  	
  Replacement of Trustee.

  	
   

  
	
  Section 7.09.

  	
  Successor Trustee by Consolidation, Merger or Conversion.

  	
   

  
	
  Section 7.10.

  	
  Eligibility; Disqualification.

  	
   

  
	
  Section 7.11.

  	
  Preferential Collection of Claims Against Company.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  8

  	
   

  
	
   

  	
   

  	
   

  
	
  AMENDMENTS,
  SUPPLEMENTS AND WAIVERS

  	
   

  
	
   

  	
   

  
	
  Section 8.01.

  	
  Without Consent of Holders.

  	
   

  
	
  Section 8.02.

  	
  With Consent of Holders.

  	
   

  
	
  Section 8.03.

  	
  Compliance with Trust Indenture Act.

  	
   

  
	
  Section 8.04.

  	
  Revocation and Effect of Consents.

  	
   

  
	
  Section 8.05.

  	
  Notation on or Exchange of Securities.

  	
   

  
	
  Section 8.06.

  	
  Trustee To Sign Amendments, etc.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  9

  	
   

  
	
   

  	
   

  	
   

  
	
  DISCHARGE OF INDENTURE; DEFEASANCE

  	
   

  
	
   

  	
   

  
	
  Section 9.01.

  	
  Discharge of Indenture.

  	
   

  
	
  Section 9.02.

  	
  Legal Defeasance.

  	
   

  
	
  Section 9.03.

  	
  Covenant Defeasance.

  	
   

  
	
  Section 9.04.

  	
  Conditions to Defeasance or Covenant Defeasance.

  	
   

  
	
  Section 9.05.

  	
  Deposited Money and EU Government Obligations To Be Held in Trust;
  Other Miscellaneous Provisions.

  	
   

  
	
  Section 9.06.

  	
  Reinstatement.

  	
   

  
	
  Section 9.07.

  	
  Moneys Held by Paying Agent.

  	
   

  
	
  Section 9.08.

  	
  Moneys Held by Trustee.

  	
   

  

 

iii

 

	
  ARTICLE
  10

  	
   

  
	
   

  	
   

  	
   

  
	
  [RESERVED]

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  11

  	
   

  
	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  
	
  Section 11.01.

  	
  Trust Indenture Act Controls.

  	
   

  
	
  Section 11.02.

  	
  Notices.

  	
   

  
	
  Section 11.03.

  	
  Communications by Holders with Other Holders.

  	
   

  
	
  Section 11.04.

  	
  Certificate and Opinion as to Conditions Precedent.

  	
   

  
	
  Section 11.05.

  	
  Statements Required in Certificate and Opinion.

  	
   

  
	
  Section 11.06.

  	
  When Treasury Securities Disregarded.

  	
   

  
	
  Section 11.07.

  	
  Rules by Trustee and Agents.

  	
   

  
	
  Section 11.08.

  	
  Business Days; Legal Holidays.

  	
   

  
	
  Section 11.09.

  	
  Governing Law.

  	
   

  
	
  Section 11.10.

  	
  No Adverse Interpretation of Other Agreements.

  	
   

  
	
  Section 11.11.

  	
  No Recourse Against Others.

  	
   

  
	
  Section 11.12.

  	
  Successors.

  	
   

  
	
  Section 11.13.

  	
  Multiple Counterparts.

  	
   

  
	
  Section 11.14.

  	
  Table of Contents, Headings, etc.

  	
   

  
	
  Section 11.15.

  	
  Separability.

  	
   

  
	
  Section 11.16.

  	
  Judgment Currency.

  	
   

  
	
  Section 11.17.

  	
  Waiver of Jury Trial.

  	
   

  
	
  Section 11.18.

  	
  Force Majeure.

  	
   

  
				

 

EXHIBITS

 

	
  Exhibit
  A

  	
  -

  	
  Form
  of Security

  	
   

  
	
  Exhibit
  B

  	
  -

  	
  Form
  of Legend for Global Securities

  	
   

  
	
  Exhibit
  C

  	
  -

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

  	
   

  
	
  Exhibit
  D

  	
  -

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

  	
   

  

 

iv

 

INDENTURE, dated as of June 9, 2004, between
SAMSONITE CORPORATION, a Delaware corporation, as issuer (the “Company”), and
THE BANK OF NEW YORK, a New York banking corporation, as Trustee (the
“Trustee”).

 

Each party agrees as follows for the benefit
of the other parties and for the equal and ratable benefit of the Holders of
the Company’s Floating Rate Senior Notes due 2010 (the “Securities”).

 

ARTICLE 1

 

DEFINITIONS
AND INCORPORATION BY REFERENCE

 

Section 1.01.                             Definitions.

 

“Acquired Indebtedness” means Indebtedness of
a Person (including an Unrestricted Subsidiary) existing at the time such
Person becomes a Restricted Subsidiary or assumed in connection with the acquisition
of assets from such Person.

 

“Additional Interest” is defined as set forth
in the Registration Rights Agreement.

 

“Additional Securities” means Securities
issued after the date of this Indenture in accordance with Section 2.02.

 

“Affiliate” means, with respect to any
Person, a Person who, directly or indirectly, through one or more
intermediaries controls, or is controlled by, or is under common control with,
such other Person.  The term “control”
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise; provided, however,
that the ownership of at least 10% of the voting power of the Common Stock of a
Person, either directly or indirectly, shall be deemed control.

 

“Agent” means any Registrar, Paying Agent,
co-registrar or agent for service of notices and demands.

 

“Asset Sale” means the sale, transfer or
other disposition (other than to the Company or any of its Restricted
Subsidiaries (other than any Emerging Market Subsidiary)) in any single transaction
or series of related transactions involving assets with a fair market value in
excess of $1,000,000 of (a) any Capital Stock of or other equity interest
in any Restricted Subsidiary of the Company other than in a transaction where
the Company or such Restricted Subsidiary receives therefor one or more
properties with a fair market value equal to the fair market value of the
Capital Stock issued, transferred or disposed of by the Company or the
Restricted Subsidiary (with such fair market values being determined by the
Board of Directors of the Company), (b) all or substantially all of the
assets of the Company or of any Restricted Subsidiary thereof, (c) real
property or (d) all or substantially all of the assets of any division,
line of business or comparable business segment of the Company or of any
Restricted Subsidiary thereof; provided that Asset Sales shall not
include (x) sales, leases, conveyances, transfer or other dispositions to
the Company or to a Restricted Subsidiary to any other Person if, after giving
effect to such sale, lease, conveyance, transfer or other disposition, such
other Person becomes a Restricted Subsidiary (other than any Emerging Market
Subsidiary), (y) the

 

 

sale of all or substantially
all of the assets of the Company or a Restricted Subsidiary in a transaction
complying with Section 5.01, in which case only the assets not so sold shall be
deemed an Asset Sale, or (z) any sale, issuance or other disposition of
Capital Stock or assets of any Joint Venture Subsidiary in compliance with Section
4.17.

 

“Asset Sale Proceeds” means, with respect to
any Asset Sale, (i) cash received by the Company or any Restricted Subsidiary
from such Asset Sale (including cash received as consideration for the
assumption of liabilities incurred in connection with or in anticipation of
such Asset Sale), after (a) provision for all income or other taxes,
estimated in good faith by the Company, measured by or resulting from such
Asset Sale, (b) payment of all brokerage commissions, underwriting,
accounting, legal and other fees and expenses related to such Asset Sale,
(c) provision for minority interest holders in any Restricted Subsidiary as
a result of such Asset Sale and (d) deduction of appropriate amounts to be
provided by the Company or a Restricted Subsidiary as a reserve, in accordance
with GAAP, against any liabilities associated with the assets sold or disposed
of in such Asset Sale and retained by the Company or a Restricted Subsidiary
after such Asset Sale, including, without limitation, pension and other
post-employment benefit liabilities and liabilities related to environmental
matters or against any indemnification obligations associated with the assets
sold or disposed of in such Asset Sale, and (ii) promissory notes and
other non-cash consideration received by the Company or any Restricted
Subsidiary from such Asset Sale or other disposition upon the liquidation or
conversion of such notes or non-cash consideration into cash.

 

“Available Asset Sale Proceeds” means, with
respect to any Asset Sale, the aggregate Asset Sale Proceeds from such Asset
Sale that have not been applied in accordance with clause (iii)(a) or
(b) and that have not yet been the subject of an Excess Proceeds Offer in
accordance with clause (iii)(c) of Section 4.09(a).

 

“Board of Directors” means the board of
directors of the Company or any authorized committee thereof (a “Board
Committee”); provided that the term “Board of Directors” as used in the
definition of “Change of Control” shall not include any Board Committee.

 

“Board Resolution” means a copy of a
resolution certified pursuant to an Officers’ Certificate to have been duly
adopted by the Board of Directors of the Company to be in full force and
effect, and delivered to the Trustee.

 

“Borrowing Base Amount” means, as of any
date, an amount equal to the greater of (x) the sum of:

 

(1)           85%
of the aggregate book value of all accounts receivable (defined as trade
receivable, notes and other receivables as reflected on the balance sheet of
the Company) of the Company and its Restricted Subsidiaries as of the end of
the most recent fiscal quarter preceding such date; plus

 

(2)           60%
of the aggregate book value of all inventory owned by the Company and its
Restricted Subsidiaries as of the end of the most recent fiscal quarter
preceding such date, less

 

(3)           the
aggregate amount of Liens permitted by clause (y) of the definition of
“Permitted Liens”,

 

2

 

and (y) the
Borrowing Base Amount calculated in accordance with clause (x) above as of
January 31, 2004, and in each case, calculated on a consolidated
basis and in accordance with GAAP.

 

“Capital Stock” means (i) with respect
to any Person that is a corporation, any and all shares, interests,
participations or other equivalents (however designated) of capital stock,
including each class of common stock and preferred stock of such Person and
warrants or options to purchase any of the foregoing and (ii) with respect
to any Person that is not a corporation, any and all partnership or other equity
interests of such Person.

 

“Capitalized Lease Obligation” means, as to
any Person, the obligation of such Person to pay rent or other amounts under a
lease to which such Person is a party that is required to be classified and accounted
for as capital lease obligations under GAAP and, for purposes of this
definition, the amount of such obligations at any date shall be the capitalized
amount of such obligations at such date, determined in accordance with GAAP.

 

“Cash Equivalents” means (i) marketable
direct obligations issued by, or unconditionally guaranteed by, the United
States Government or any member nation of the European Union or issued by any
agency thereof and backed by the full faith and credit of the United States or
any member nation of the European Union, in each case maturing within one year
from the date of acquisition thereof; (ii) marketable direct obligations
issued by any state of the United States of America or any political
subdivision of any such state or any public instrumentality thereof maturing
within one year from the date of acquisition thereof and, at the time of
acquisition, having one of the two highest ratings obtainable from either
S&P or Moody’s; (iii) commercial paper maturing no more than one year
from the date of creation thereof and, at the time of acquisition, having a
rating of at least A-1 from S&P or at least P-1 from Moody’s;
(iv) certificates of deposit or bankers’ acceptances maturing within one
year from the date of acquisition thereof issued by any commercial bank
organized under the laws of the United States of America or any state thereof
or the District of Columbia or any U.S. branch of a foreign bank having at the
date of acquisition thereof combined capital and surplus of not less than
$250,000,000; (v) repurchase obligations with a term of not more than
seven days for underlying securities of the types described in clause
(i) above entered into with any bank meeting the qualifications specified
in clause (iv) above; and (vi) investments in money market funds
which invest substantially all of their assets in securities of the types
described in clauses (i) through (v) above.

 

“Change of Control” means, with respect to
the Company, the occurrence of any of the following:  (i) any Person (including a Person’s Affiliates), other than
a Permitted Holder, becomes the beneficial owner (as defined under Rule 13d-3
or any successor rule or regulation promulgated under the Exchange Act) of 50%
or more of the total voting power of the Company’s Common Stock unless, as a
result of such transaction, the ultimate direct or indirect ownership of the
Company is substantially the same immediately after such transaction as it was
immediately prior to such transaction, (ii) there shall be consummated any
consolidation or merger of the Company in which the Company is not the
continuing or surviving corporation or pursuant to which the Common Stock of
the Company would be converted into cash, securities or other property, other
than a merger or consolidation of the Company in which the holders of the
Common Stock of the Company outstanding immediately prior to the consolidation
or merger hold, directly or indirectly, at least a majority of the voting power
of the Common Stock of the surviving corporation immediately after such
consolidation or merger or (iii) during any period of two consecutive
years, individuals who at the beginning of such period constituted the Board of
Directors of the Company (together with any new directors whose election by
such Board of Directors or whose nomination for election by the shareholders of
the Company has been approved by a majority of the directors then still in
office who either were directors at

 

3

 

the beginning of such period or
whose election or recommendation for election was previously so approved) cease
to constitute a majority of the Board of the Directors of the Company.

 

“Clearstream” means Clearstream Banking, a
société anonyme, or any successor securities clearing agency.

 

“Common Depository” means, with respect to
the Securities issued in the form of one or more Global Securities, The Bank of
New York, London Branch, as common depository for Euroclear and Clearstream.

 

“Common Stock” of any Person means any and
all shares, interests or other participations in, and other equivalents
(however designated and whether voting or non-voting) of, such Person’s common
stock, whether outstanding on the Issue Date or issued after the Issue Date,
and includes, without limitation, all series and classes of such common stock.

 

“Company” means the party named as such in
the first paragraph of this Indenture until a successor replaces such party
pursuant to Article 5 of this Indenture and thereafter means the successor
obligor on the Securities.

 

“Company Request” means any written request
signed in the name of the Company by the Chief Executive Officer, the
President, any Vice President, the Chief Financial Officer or the Treasurer and
attested to by the Secretary or any Assistant Secretary of the Company.

 

“Consolidated EBITDA” means, for any Person
and its Restricted Subsidiaries, for any period, an amount equal to the sum of
Consolidated Net Income for such period, plus, to the extent deducted from the
revenues of such Person and its Restricted Subsidiaries in determining
Consolidated Net Income, (i) the provision for taxes for such period based
on income or profits and any provision for taxes utilized in computing a loss
in Consolidated Net Income above, plus (ii) Consolidated Interest Expense
(including, for this purpose, dividends on the Convertible Preferred Stock and
any Redeemable Dividends in each case only to the extent that such dividends
were deducted in determining Consolidated Net Income), plus
(iii) Consolidated Non-Cash Charges, plus (iv) without duplication,
for any four quarter period that includes one or more fiscal quarters of fiscal
year 2004 or fiscal year 2005, cash restructuring charges to the extent
actually incurred during each such applicable quarter, provided that
with respect to fiscal year 2005, such cash restructuring charge shall not
exceed $8,300,000 in an aggregate amount, and minus (vi) without duplication,
the amount of all cash payments made by such Person or any of its Restricted
Subsidiaries during such period to the extent such payments relate to
Consolidated Non-Cash Charges that were added back in determining Consolidated
EBITDA for such period or any prior period, all as determined on a consolidated
basis for such Person and its Restricted Subsidiaries in accordance with GAAP.

 

“Consolidated Fixed Charge Coverage Ratio” on
any date of determination (the “Transaction Date”) means, with respect to any
Person, the ratio of (i) the aggregate amount of Consolidated EBITDA of
such Person for the Reference Period to (ii) the aggregate amount of
Consolidated Fixed Charges of such Person during the Reference Period; provided,
that for purposes of such computation, in calculating Consolidated EBITDA and
Consolidated Fixed Charges, (a) the transaction giving rise to the need to
calculate the Consolidated Fixed Charge Coverage Ratio will be assumed to have
occurred (on a pro forma basis) on the first day of the Reference Period;
(b) the incurrence of any Indebtedness (other than Indebtedness incurred
under any revolving credit or similar facility to the extent that the proceeds
were used to finance working capital requirements in the ordinary course of
business) or the issuance of any Disqualified Capital Stock or Preferred Stock
during the

 

4

 

Reference Period or subsequent
thereto and on or prior to the Transaction Date (and the application of the
proceeds therefrom (other than a repayment of Indebtedness outstanding under a
revolving credit or similar facility to the extent that the proceeds were used
to finance working capital requirements in the ordinary course of business) to
the extent used to retire Indebtedness or Preferred Stock) will be assumed to
have occurred (on a pro forma basis) on the first day of such Reference Period;
(c) Consolidated Interest Expense attributable to any Indebtedness
(whether existing or being incurred) bearing a floating interest rate shall be
computed as if the rate in effect on the Transaction Date had been the
applicable rate for the entire period, unless such Person or any of its
Subsidiaries is a party to an Interest Rate Agreement (which shall remain in
effect for the 12-month period after the Transaction Date) that has the effect
of fixing the interest rate on the date of computation, in which case such rate
(whether higher or lower) shall be used; (d) the repayment of any
Indebtedness (other than under a revolving credit or similar facility to the
extent that the proceeds were used to finance working capital requirements in
the ordinary course of business), Disqualified Capital Stock or Preferred Stock
during the Reference Period or subsequent thereto and on or prior to the
Transaction Date with the proceeds of any sale or other disposition of assets
or properties referred to in clause (f) below will be assumed to have
occurred (on a pro forma basis) on the first day of the Reference Period;
(e) the acquisition during the Reference Period or subsequent thereto and
on or prior to the Transaction Date of any other Person which, as a result of
such acquisition, becomes a Subsidiary, will be assumed to have occurred (on a
pro forma basis) on the first day of the Reference Period; and (f) any
sale or other disposition of assets or properties constituting an existing
business (whether existing as a separate entity, subsidiary, division, unit or
otherwise) outside the ordinary course of business occurring during the
Reference Period or subsequent thereto and on or prior to the Transaction Date
will be assumed to have occurred (on a pro forma basis) on the first day of the
Reference Period.

 

“Consolidated Fixed Charges” of any Person
for any period means (without duplication) the sum of (i) Consolidated
Interest Expense of such Person for such period (excluding amortization or
write-off of deferred financing fees and expenses) and (ii) without
duplication, Redeemable Dividends of such Person and its Restricted
Subsidiaries (whether in cash or otherwise (except dividends payable solely in
shares of Qualified Capital Stock)) with respect to Disqualified Capital Stock
and Preferred Stock accrued during such period in accordance with GAAP (but in
the case of such Preferred Stock, only to the extent that the aggregate amount
of dividends paid or accrued from and after the Issue Date exceeds the
aggregate net cash proceeds to such Person from the issuance and sale of such
Preferred Stock), in each case excluding items eliminated in consolidation of
such Person and its Restricted Subsidiaries; provided, that dividends
accrued or paid on the Convertible Preferred Stock shall not be included in the
calculation of Consolidated Fixed Charges.

 

“Consolidated Interest Expense” means, with
respect to any Person, for any period, the aggregate amount of interest which,
in conformity with GAAP, would be set forth opposite the caption “interest
expense” or any like caption on an income statement for such Person and its Restricted
Subsidiaries on a consolidated basis, including, but not limited to, Redeemable
Dividends, whether paid or accrued, on Restricted Subsidiary Preferred Stock,
imputed interest included in Capitalized Lease Obligations, all commissions,
discounts and other fees and charges owed with respect to letters of credit and
bankers’ acceptance financing, the net costs associated with hedging
obligations, amortization of other financing fees and expenses, the interest
portion of any deferred payment obligation, amortization of discount or premium,
if any, and all other non-cash interest expense (other than interest amortized
to cost of sales) plus, without duplication, all net capitalized interest for
such period and all interest incurred or paid under any guarantee of
Indebtedness (including a guarantee of principal, interest or any combination
thereof) of any Person, plus the amount of all dividends or distributions

 

5

 

paid on Disqualified Capital
Stock (other than dividends paid or payable in shares of Capital Stock of the
Company), minus interest income for such period.

 

“Consolidated Net Income” means, with respect
to any Person, for any period, the aggregate of the net income (or loss) of
such Person and its Restricted Subsidiaries for such period, on a consolidated
basis, determined in accordance with GAAP; provided, however,
that (a) the net income of any Person including of any Emerging Market
Subsidiary or Unrestricted Subsidiary (each, an “Other Person”) in which the
Person in question or any of its Restricted Subsidiaries has less than a 100%
interest (which interest does not cause the net income of such Other Person to
be consolidated into the net income of the Person in question in accordance
with GAAP) shall be included only to the extent of the amount of dividends or
distributions paid to the Person in question or to any of its Restricted
Subsidiaries, (b) the net income of any Restricted Subsidiary of the
Person in question that is subject to any restriction or limitation on the
payment of dividends or the making of other distributions (other than pursuant
to the Securities) shall be excluded to the extent of such restriction or
limitation, (c) any net gain or net loss resulting from an Asset Sale by
the Person in question or any of its Restricted Subsidiaries other than in the
ordinary course of business shall be excluded, (d) extraordinary, unusual
or non-recurring gains and losses shall be excluded, (e) gains and losses
associated with discontinued and terminated operations shall be excluded,
(f) any Consolidated Non-Cash Charges constituting impairment charges
resulting from the application of Statements of Financial Accounting Standards
No. 142 and No. 144 and the amortization of intangibles arising pursuant to
Statement of Financial Accounting Standards No. 141 shall be excluded and
(g) Consolidated Non-Cash Charges constituting compensation expense
determined in accordance with GAAP shall be excluded.

 

“Consolidated Non-Cash Charges” means, with
respect to any Person for any period, the aggregate depreciation, amortization
and other non-cash items (which do not reflect an accrual of a cash expense
which may be incurred in the future) of such Person and its Restricted
Subsidiaries reducing Consolidated Net Income of such Person and its Restricted
Subsidiaries less any such non-cash items increasing Consolidated Net Income of
such Person and its Restricted Subsidiaries for such period, determined on a
consolidated basis in accordance with GAAP.

 

“Consolidated Tangible Assets” means, at any
date, with respect to any Person, the consolidated total assets of such Person
and its Restricted Subsidiaries determined in accordance with GAAP (calculated
after giving pro forma effect to any acquisition of assets on such date), less
all goodwill, trade names, trademarks, patents, unamortized debt discount,
organization expense and other similar intangibles properly classified as
intangibles in accordance with GAAP.

 

“Convertible
Preferred Stock” means the 2003 Convertible Preferred Stock, par
value $0.01 per share, of the Company.

 

“Corporate Trust Office” means the office of
the Trustee at which at any particular time its corporate trust business shall
be principally administered, which office at the date of execution of this
Indenture is specified in Section 11.02, or such other address as the
Trustee may designate from time to time by notice to the Holders and the
Company, or the principal corporate trust office of any successor Trustee (or
such other address as such successor Trustee may designate from time to time by
notice to the Holders and the Company).

 

“Credit Agreement” means (i) one or more
credit agreements, loan agreements or similar agreements providing for working
capital advances, term loans, letter of credit facilities or similar advances,
loans, or facilities to the Company, any Subsidiary, domestic or foreign, or
any or all of such Persons, including the Credit Agreement, dated as of July
31, 2003, among the Company and 

 

6

 

Samsonite Europe N.V., as
borrowers, General Electric Capital Corporation and KBC Bank N.V., and certain
other lenders party thereto from time to time, as the same may be amended,
modified, restated or supplemented from time to time and (ii) any one or
more agreements governing advances, loans or facilities provided to refund,
refinance, replace or renew (including subsequent or successive refunding,
refinancing, replacements and renewals) Indebtedness under the agreement or
agreements referred to in the foregoing clause (i), as the same may be amended,
modified, restated or supplemented from time to time.

 

“Currency Agreement” means any foreign
exchange contract, currency swap agreement or other similar agreement designed
to address fluctuations in currency values.

 

“Default” means an event or condition the
occurrence of which is, or with the lapse of time or the giving of notice or
both would be, an Event of Default.

 

“Depositary” means Euroclear or Clearstream
or a successor clearing agency to either or both of them, which must be a
clearing agency registered under the Exchange Act.

 

“Disqualified Capital Stock” means any
Capital Stock which, by its terms (or by the terms of any security into which
it is convertible or for which it is exchangeable), or upon the happening of
any event, matures (excluding any maturity as the result of an optional
redemption by the issuer thereof) or is mandatorily redeemable, pursuant to a
sinking fund obligation or otherwise, or is redeemable at the sole option of
the holder thereof, in whole or in part, on or prior to the final maturity date
of the Securities.  Without limitation
of the foregoing, Disqualified Capital Stock shall be deemed to include
(i) any Preferred Stock of a Restricted Subsidiary of the Company and
(ii) any Preferred Stock of the Company, with respect to either of which,
under the terms of such Preferred Stock, by agreement or otherwise, such
Restricted Subsidiary or the Company is obligated to pay current dividends or
distributions in cash during the period prior to the maturity date of the
Securities; provided, however, that Preferred Stock of the
Company or any Restricted Subsidiary thereof that is issued with the benefit of
provisions requiring a change of control offer to be made for such Preferred
Stock in the event of a change of control of the Company or such Restricted
Subsidiary, which provisions have substantially the same effect as the
provisions of Section 4.14 shall not be deemed to be Disqualified Capital
Stock solely by virtue of such provisions; and provided, further,
that the Convertible Preferred Stock shall not be considered Disqualified
Capital Stock.

 

“Emerging Market Subsidiary” means
(i) any Initial Emerging Market Subsidiary, (ii) any majority-owned
Subsidiary of the Company the principal operations of which are not located in
the United States, Canada or Western Europe that, at the time of determination,
shall be an Emerging Market Subsidiary (as designated by the Board of
Directors, as provided below) and (iii) any majority-owned Subsidiary of
an Emerging Market Subsidiary.  The
Board of Directors may designate (1) any Unrestricted Subsidiary of the Company
to be an Emerging Market Subsidiary, and (2) any Restricted Subsidiary of the
Company (including any newly acquired or newly formed Subsidiary at or prior to
the time it is so formed or acquired) to be an Emerging Market Subsidiary if it
meets the geographic test set forth above and (a) no Default or Event of
Default is existing or will occur as a consequence thereof, (b) with
respect to previously existing Restricted Subsidiaries, immediately after giving
effect to such designation, on a pro forma basis, the Company could incur at
least $1.00 of additional Indebtedness (other than Permitted Indebtedness)
pursuant to Section 4.06 and (c) such Restricted Subsidiary does not own
any Capital Stock of, or own or hold any Lien on any property of, the Company
or any Restricted Subsidiary that is not a Subsidiary of the Restricted
Subsidiary to be so designated.  At the
time that a previously existing Restricted Subsidiary of the Company is
designated an Emerging Market Subsidiary, the Company shall be deemed to make
an “Investment” in such

 

7

 

Emerging Market Subsidiary in
an amount equal to its Pro Rata Interest in the fair market value of the net
assets of such Restricted Subsidiary.  A
Restricted Subsidiary of the Company shall not be considered to be a
“previously existing Restricted Subsidiary” for purposes of this definition if
such Restricted Subsidiary is designated to be an Emerging Market Subsidiary at
or prior to the time of the formation of such Restricted Subsidiary or at or
prior to the time such Restricted Subsidiary is acquired by the Company.  The Board of Directors may designate any
Emerging Market Subsidiary to be a Restricted Subsidiary, provided that
(i) no Default or Event of Default is existing or will occur as a
consequence thereof and (ii) either (x) immediately after giving effect to
such designation, on a pro forma basis, the Company could incur at least $1.00
of additional Indebtedness (other than Permitted Indebtedness) pursuant to
Section 4.06 or (y) the Consolidated Fixed Charge Coverage Ratio of the Company
immediately after giving effect to such designation, on a pro forma basis,
exceeds the Consolidated Fixed Charge Coverage Ratio of the Company immediately
prior (and without giving effect) to such designation.  Each such designation shall be evidenced by
the filing with the Trustee of a certified copy of the Board Resolution giving
effect to such designation and an Officers’ Certificate certifying that such
designation complied with the foregoing conditions.

 

“Equity Offering” means a sale by the Company
of shares of its Qualified Capital Stock.

 

“EU Government Obligations” means securities
that are (a) direct obligations of any member state of the European Union
(as it exists on the Issue Date) for the payment of which its full faith and
credit are pledged or (b) obligations of a Person controlled or supervised
by and acting as an agency or instrumentality of any member state of the
European Union (as it exists on the Issue Date), the payment of which is
unconditionally guaranteed as a full faith and credit obligation by such member
state of the European Union, which, in either case, are not callable or
redeemable at the option of the issuer thereof, and shall also include a
depository receipt issued by a bank (as defined in Section 3(a)(2) of the
Securities Act) as custodian with respect to any such EU Government Obligation
or a specific payment of principal of or interest on any such EU Government
Obligation held by such custodian for the account of the holder of such
depository receipt; provided that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to
the holder of such depository receipt from any amount received by the custodian
in respect of the EU Government Obligation or a specific payment of principal
or interest on any such EU Government Obligation held by such custodian for the
account of the holder of such depository receipt.

 

“Euroclear” means the Euroclear Clearance
System or any successor securities clearance agency.

 

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

 

“Exchange Offer” means the Company’s offer to
exchange the Exchange Securities for the Initial Securities pursuant to the
terms of the Registration Rights Agreement.

 

“Exchange Securities” means (i) the
Floating Rate Senior Notes due 2010, as amended or supplemented from time to
time in accordance with the terms hereof, to be issued from time to time
pursuant to the Indenture in connection with the Exchange Offer and
(ii) Additional Securities, if any, issued (x) without the Private
Placement Legend or (y) pursuant to a registration rights agreement
substantially similar to the Registration Rights Agreement.

 

“Foreign Credit Agreement” means one or more
Credit Agreements among one or more Foreign Restricted Subsidiaries and the
lenders party thereto.

 

8

 

“Foreign Restricted Subsidiary” means a
Restricted Subsidiary of the Company that is incorporated or otherwise
organized in a jurisdiction other than the United States, any state thereof or
the District of Columbia.

 

“GAAP” means generally accepted accounting
principles consistently applied as in effect in the United States from time to
time.

 

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

 

“Incur” means, with respect to any
Indebtedness or other obligation of any Person, to create, issue, incur (by
conversion, exchange or otherwise), assume, guarantee or otherwise become
liable in respect of such Indebtedness or other obligation or the recording, as
required pursuant to GAAP or otherwise, of any such Indebtedness or other
obligation on the balance sheet of such Person (and “incurrence,” “incurred,”
“incurrable” and “incurring” shall have meanings correlative to the foregoing);
provided that a change in GAAP that results in an obligation of such
Person that exists at such time becoming Indebtedness shall not be deemed an
incurrence of such Indebtedness; provided, further, that the
amortization of original issue discount on Indebtedness issued with original
issue discount or the accumulation of distributions on Disqualified Capital
Stock shall not be deemed an incurrence of Indebtedness.

 

“Indebtedness” means (without duplication),
with respect to any Person, any indebtedness at any time outstanding, secured
or unsecured, contingent or otherwise, which is for borrowed money (whether or
not the recourse of the lender is to the whole of the assets of such Person or
only to a portion thereof) or evidenced by bonds, notes, debentures or similar
instruments or representing the balance deferred and unpaid of the purchase
price of any property (excluding, without limitation, any balances that
constitute accounts payable or trade payables and other accrued liabilities or
accrued expenses arising in the ordinary course of business) if and to the
extent any of the foregoing indebtedness would appear as a liability upon a
balance sheet of such Person prepared in accordance with GAAP, and shall also
include, to the extent not otherwise included, (i) any Capitalized Lease
Obligations, (ii) obligations secured by a Lien to which the property or
assets owned or held by such Person are subject, whether or not the obligation
or obligations secured thereby shall have been assumed (provided, however,
that if such obligation or obligations shall not have been assumed, the amount
of such Indebtedness shall be deemed to be the lesser of the principal amount
of the obligation or the fair market value of the pledged property or assets),
other than a Permitted Lien securing an obligation that is not Indebtedness,
(iii) guarantees of items of other Persons which would be included within
this definition for such other Persons (whether or not such items would appear
upon the balance sheet of the guarantor), (iv) all obligations for the
reimbursement of any obligor on any letter of credit, banker’s acceptance or
similar credit transaction, (v) Disqualified Capital Stock of the Company
or any Restricted Subsidiary thereof and (vi) obligations of any such
Person under any Interest Rate Agreement or Currency Agreement applicable to
any of the foregoing (if and to the extent such Interest Rate Agreement or
Currency Agreement obligations would appear as a liability upon a balance sheet
of such Person prepared in accordance with GAAP).  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, with respect to contingent obligations, the maximum liability upon
the occurrence of the contingency giving rise to the obligation, provided
that (i) the amount outstanding at any time of any Indebtedness issued
with original issue discount is the principal amount of such Indebtedness less
the remaining unamortized portion of the original issue discount of such
Indebtedness at such time as determined in conformity with GAAP and
(ii) Indebtedness shall not include any liability for federal,

 

9

 

state, local or other
taxes.  Notwithstanding any other
provision of the foregoing definition, any trade payable arising from the
purchase of goods or materials or for services obtained in the ordinary course
of business or contingent obligations arising out of customary indemnification
agreements with respect to the sale of assets or securities shall not be deemed
to be “Indebtedness” of the Company or any Restricted Subsidiaries for purposes
of this definition.  Furthermore,
guarantees of (or obligations with respect to letters of credit supporting)
Indebtedness otherwise included in the determination of such amount shall not
also be included.

 

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

 

“Initial Emerging Market Subsidiary” means
each of (i) Arife S.A., (ii) Samsonite Luggage (Ningbo) Co. Ltd.,
(iii) Samsonite Argentina S.A., (iv) Samsonite Brasil Ltda.,
(v) Samsonite India Private Limited, (vi) Samsonite Korea Limited,
(vi) Samsonite Mercosur Limited, (viii) Samsonite Mauritius Limited, and
(ix) Lonberg Express S.A.

 

“Initial Securities” means the Floating Rate
Senior Notes due 2010, as amended or supplemented from time to time in
accordance with the terms hereof, issued from time to time under this
Indenture, bearing the Private Placement Legend.

 

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

 

“Interest Payment Date” means the stated
maturity of any scheduled installment of interest on the Securities.

 

“Interest Rate Agreement” means, for any
Person, any interest rate swap agreement, interest rate cap agreement, interest
rate collar agreement or other similar agreement.

 

“Invested Capital” in an Emerging Market
Subsidiary means the sum (without duplication) of the aggregate net cash
proceeds and non-cash consideration (other than services) received by such
Emerging Market Subsidiary from (a) the issuance of any Qualified Capital
Stock of such Emerging Market Subsidiary; (b) the issuance of Disqualified
Capital Stock or Indebtedness securities of such Emerging Market Subsidiary to
(and only so long as such securities are beneficially owned by) the Company, a
Restricted Subsidiary of the Company or any other Person that beneficially owns
20% or more of the Qualified Capital Stock of such Emerging Market Subsidiary
(a “Significant Partner”); provided, that proceeds from the issuance of
Disqualified Capital Stock and Indebtedness securities that are beneficially
owned by a Significant Partner shall constitute Invested Capital only to the
extent that the ratio of (w) the Invested Capital under the preceding clause
(a) attributable to Capital Stock beneficially owned by such Significant
Partner to (x) the proceeds from the issuance of Disqualified Capital Stock and
Indebtedness of such Emerging Market Subsidiary beneficially owned by such Significant
Partner is not greater than the ratio of (y) the Invested Capital under the
preceding clause (a) attributable to Capital Stock beneficially owned by
the Company and its Restricted Subsidiaries, taken as a whole, to (z) the
proceeds from the issuance of Disqualified Capital Stock and Indebtedness of
such Emerging Market Subsidiary beneficially owned by the Company and its
Restricted Subsidiaries, taken as a whole; and (c) the issuance of
Disqualified Capital Stock or Indebtedness securities of such Emerging Market
Subsidiary convertible into Qualified Capital Stock of such Emerging Market
Subsidiary, in each case upon such conversion thereof into Qualified Capital
Stock of such Emerging Market Subsidiary and that is not considered Invested
Capital pursuant to clause (b) above. 
For purposes

 

10

 

of this definition, the amount
attributable to non-cash consideration shall be the fair value thereof
determined in good faith by the Board of Directors of such Emerging Market
Subsidiary.

 

“Investment” by any Person in any other
Person means, directly or indirectly, any advance, account receivable (other
than an account receivable arising in the ordinary course of business), loan or
capital contribution to (by means of transfers of property to others, payments
for property or services for the account or use of others or otherwise), the
purchase of any stocks, bonds, notes, debentures, partnership or joint venture
interests or other securities of, the acquisition, by purchase or otherwise, of
all or substantially all of the business or assets or stock or other evidence
of beneficial ownership of, such other Person or the making of any investment by
such Person in any other Person. 
Investments shall exclude extensions of trade credit on commercially
reasonable terms in accordance with normal trade practices and repurchases or
redemptions of the Securities or the Convertible Preferred Stock by the Company
or any other security or evidence of Indebtedness issued by the Company.  Notwithstanding the foregoing, the following
shall not be considered Investments by a Person in any other Person:
(i) trade receivables and prepaid expenses, in each case arising in the
ordinary course of business; provided, that such receivables and prepaid
expenses would be recorded as assets of such Person in accordance with GAAP,
(ii) Investments received in connection with the bankruptcy or
reorganization of suppliers and customers or in good faith bona fide settlement
of delinquent ordinary course of business trade receivables of customers,
(iii) endorsements for collection or deposit in the ordinary course of
business by such Person of bank drafts and similar negotiable instruments of
such other Person received as payment for ordinary course of business trade
receivables, (iv) an Interest Rate Agreement or Currency Agreement with an
unaffiliated Person provided that such agreements comply with the
requirements of clause (iv) of the definition of Permitted Indebtedness,
(v) Investments received as consideration for, or customary indemnities
given in connection with, an Asset Sale in compliance with Section 4.09, and
(vi) Investments for which the sole consideration provided is Qualified
Capital Stock.  The Company shall be
deemed to make an “Investment” in an amount equal to its Pro Rata Interest in
the fair market value of the net assets of any previously existing Restricted
Subsidiary, at the time that such Restricted Subsidiary is designated an
Unrestricted Subsidiary or an Emerging Market Subsidiary, as the case may be;
and any property transferred, directly or indirectly (whether by merger or
otherwise) to an Unrestricted Subsidiary or an Emerging Market Subsidiary, as
the case may be, from the Company or a Restricted Subsidiary after the time of
such designation shall be deemed an Investment valued at its fair market value
at the time of such transfer.  A
Restricted Subsidiary of the Company shall not be considered to be a “previously
existing Restricted Subsidiary” for purposes of this definition if such
Restricted Subsidiary is designated to be an Emerging Market Subsidiary or an
Unrestricted Subsidiary, as the case may be, at or prior to the time of the
formation of such Restricted Subsidiary or at or prior to the time such
Restricted Subsidiary is acquired by the Company.

 

“Issue Date” means June 9, 2004.

 

“Joint Venture Subsidiary” means a Restricted
Subsidiary of the Company in which one or more Persons who have provided or are
providing operating assets or services to such Restricted Subsidiary
beneficially own not less than 50% of the Capital Stock of such Restricted
Subsidiary not owned by the Company or a Restricted Subsidiary of the Company.

 

“Lien” means any consensual lien, mortgage,
deed of trust, pledge, security interest, charge or encumbrance of any kind
(including any conditional sale or other title retention agreement, any lease
in the nature thereof and any agreement to give any security interest).

 

“Maturity Date” means June 1, 2010.

 

11

 

“Net Proceeds” means (a) in the case of
any sale of Capital Stock by the Company, the aggregate net proceeds received
by the Company, after payment of expenses, commissions and the like incurred in
connection therewith, whether such proceeds are in cash or in property (valued
at the fair market value thereof, as determined in good faith by the Board of
Directors, at the time of receipt) and (b) in the case of any exchange,
exercise, conversion or surrender of outstanding securities of any kind for or
into shares of Qualified Capital Stock of the Company, the net book value of
such outstanding securities on the date of such exchange, exercise, conversion
or surrender (plus any additional amount required to be paid by the holder to
the Company upon such exchange, exercise, conversion or surrender, less any and
all payments made to the holders, e.g., on account of fractional shares and
less all expenses incurred by the Company in connection therewith).

 

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

 

“Obligations” means all obligations for
principal, premium, interest (including post-petition interest and, in the case
of the Securities, any additional interest or liquidated damages from time to
time payable pursuant to the Registration Rights Agreement), penalties, fees,
costs, indemnifications, reimbursements, repurchase, redemption, retirement or
defeasance obligations, damages and other liabilities and obligations payable
under the documentation governing, or otherwise relating to, any Indebtedness.

 

“Offer Period” shall have the meaning
specified in Section 4.09(b).

 

“Officer” means the Chief Executive Officer,
the President, any Vice President, the Chief Financial Officer, the Treasurer,
the Controller or the Secretary of the Company, or any other officer designated
by the Board of Directors, as the case may be.

 

“Officers’ Certificate” means, with respect
to any Person, a certificate signed by the Chief Executive Officer, the
President or any Vice President and the Chief Financial Officer, the Controller
or any Treasurer of such Person that shall comply with applicable provisions of
this Indenture.

 

“Opinion of Counsel” means a written opinion
from legal counsel which counsel is reasonably acceptable to the Trustee.

 

“Original Credit Agreement” means the
referenced Credit Agreement described in clause (i) of the definition of
Credit Agreement dated on or as in effect on or about the Issue Date, as the
same may be amended, modified, restated or supplemented from time to time, and
any one replacement agreement or facility existing at any time provided to
refund, refinance, replace or renew (including subsequent or successive
refundings, refinancings, replacements and renewals) the Original Credit
Agreement; such replacement agreement or facility to be designated by the
Company and certified in an Officers’ Certificate delivered to the Trustee.

 

“Pari Passu Debt” means any Indebtedness
(secured or unsecured) of the Company that ranks pari passu in right of payment with the Securities.

 

“Permitted
Denver Disposition” means the sale, disposition, lease or transfer by the
Company of the real estate it owns in Denver, Colorado on the Issue Date.

 

“Permitted Holders” means each of Ares
Management LLC, Bain Capital (Europe) LLC, Ontario Teachers’ Pension Plan Board
and any Affiliate of any of the foregoing.

 

12

 

“Permitted Indebtedness” means, without duplication,
each of the following:

 

(i)            Indebtedness
under the Securities issued on the Issue Date under this Indenture;

 

(ii)           Indebtedness
incurred pursuant to any Credit Agreements (and the guarantees thereof) in an
aggregate principal amount at any time outstanding not to exceed the Borrowing
Base Amount;

 

(iii)          all
other Indebtedness of the Company and its Restricted Subsidiaries outstanding
on the Issue Date, including, without limitation, the Senior Subordinated
Notes;

 

(iv)          (a) Obligations
under Interest Rate Agreements of the Company covering Indebtedness of the
Company or any of its Restricted Subsidiaries; provided, however, that
such Interest Rate Agreements are entered into to protect the Company and its
Restricted Subsidiaries from fluctuations in interest rates on Indebtedness
otherwise permitted to be incurred hereunder and not for speculative purposes
to the extent the notional principal amount of such Interest Rate Agreement
does not exceed the principal amount of the Indebtedness to which such Interest
Rate Agreement relates and (b) Indebtedness under Currency Agreements incurred
by the Company in the ordinary course of business to the extent that such
obligations have been entered into to protect against fluctuations in currency
exchange rates and not for speculative purposes; provided, that in the
case of Currency Agreements which relate to Indebtedness, such Currency
Agreements do not increase the Indebtedness of the Company and the Restricted
Subsidiaries outstanding other than as a result of fluctuations in foreign
currency exchange rates or by reason of fees, indemnities and compensation payable
thereunder;

 

(v)           Indebtedness
of a Restricted Subsidiary of the Company to the Company or to a Restricted Subsidiary
of the Company for so long as such Indebtedness is owned by the Company or a
Restricted Subsidiary of the Company, in each case with no Lien securing such
Indebtedness held by a Person other than the Company or a Restricted Subsidiary
of the Company; provided that if as of any date any Person other than
the Company or a Restricted Subsidiary of the Company owns any such
Indebtedness or holds a Lien securing any such Indebtedness, such date shall be
deemed the incurrence of Indebtedness not constituting Permitted Indebtedness
under this clause (v);

 

(vi)          Indebtedness
of the Company to a Restricted Subsidiary of the Company for so long as such
Indebtedness is owned by a Restricted Subsidiary of the Company, in each case
with no Lien securing such Indebtedness; provided that (a) any
Indebtedness of the Company to any Restricted Subsidiary of the Company is
subordinated, pursuant to a written agreement, to the Company’s Obligations
under this Indenture and the Securities at least to the same extent that the
Senior Subordinated Notes are subordinated to the Securities, and (b) if
as of any date any Person other than a Restricted Subsidiary of the Company
owns any such Indebtedness or any Person holds a Lien securing any such Indebtedness,
such date shall be deemed the incurrence of Indebtedness not constituting
Permitted Indebtedness under this clause (vi);

 

(vii)         Purchase
Money Indebtedness and Capitalized Lease Obligations incurred to acquire
property in the ordinary course of business which Indebtedness and Capitalized
Lease Obligations do not in the aggregate exceed the greater of
(x) $25,000,000 and (y) 5% of Consolidated Tangible Assets;

 

13

 

(viii)        Acquired
Indebtedness of any Restricted Subsidiaries, provided that such Indebtedness
was not incurred by a Person in connection with, or in anticipation or contemplation
of, such Person becoming a Restricted Subsidiary of the Company and provided,
further, that after giving effect to such incurrence or assumption of
such Acquired Indebtedness the Consolidated Fixed Charge Coverage Ratio of the
Company and its Restricted Subsidiaries, taken as whole, and the Restricted
Subsidiary making such acquisition independently, are at least equal to 2:00:1
as calculated in accordance with Section 4.06;

 

(ix)           Refinancing
Indebtedness;

 

(x)            Indebtedness
solely in respect of performance bonds, surety agreements, documentary letters
of credit used for payment of goods consistent with past practice, or other
guarantees of performance (in each case other than an obligation for the
payment of borrowed money) incurred in the ordinary course of business;

 

(xi)           additional
Indebtedness of the Company and its Restricted Subsidiaries an aggregate
principal amount at any one time outstanding not to exceed the sum of
(A) $50,000,000 and (B) 100% of the Net Proceeds actually received by the
Company following the Issue Date from the issue or sale of Qualified Capital
Stock of the Company (other than to the Company or any of its Subsidiaries)
determined in accordance with clause (a)(iii)(B) of Section 4.08 to the extent
that (x) such Net Proceeds have not been applied pursuant to clause
(a)(iii)(B) to make Restricted Payments or to make other investments, payments
or exchanges permitted pursuant to Section 4.08(b) or to make Permitted
Investments (other than Permitted Investments specified in clauses (i) and
(iii) of the definition thereof) and (y) (1) such Indebtedness
is incurred within 180 days after the receipt of such Net Proceeds and
(2) is designated as Indebtedness incurred pursuant to this clause (xi)
pursuant to an officers’ certificate on the date of the incurrence thereof, provided,
however, that the aggregate amount of Indebtedness incurred by
Restricted Subsidiaries pursuant to this clause (xi) may not exceed $50,000,000
outstanding at any one time; and

 

(xii)          Indebtedness
incurred pursuant to any Foreign Credit Agreement in an aggregate principal
amount at any time outstanding not to exceed $35,000,000.

 

“Permitted Investments” means, for any
Person, Investments made on or after the Issue Date consisting of:

 

(i)            Investments by the Company, or by a
Restricted Subsidiary thereof, in the Company or a Restricted Subsidiary
thereof;

 

(ii)           Cash
Equivalents;

 

(iii)          Investments
by the Company, or by a Restricted Subsidiary thereof, in a Person (or in all
or substantially all of the business or assets of a Person) if as a result of
such Investment (a) such Person becomes a Restricted Subsidiary of the Company,
(b) such Person is merged, consolidated or amalgamated with or into, or
transfers or conveys substantially all of its assets to, or is liquidated into,
the Company or a Restricted Subsidiary thereof or (c) such business or
assets are owned by the Company or a Restricted Subsidiary;

 

(iv)          Investments
in Emerging Market Subsidiaries in the aggregate amount after the Issue Date
not to exceed $50,000,000;

 

14

 

(v)           reasonable
and customary loans made to employees not to exceed $500,000 to any employee,
and not to exceed $5,000,000 in the aggregate at any one time outstanding;

 

(vi)          an
Investment that is made by the Company or a Restricted Subsidiary thereof in
the form of any stock, bonds, notes, debentures, partnership or joint venture
interests or other securities that are issued by a third party to the Company
or a Restricted Subsidiary solely as partial consideration for the consummation
of an Asset Sale that is otherwise permitted under Section 4.09;

 

(vii)         accounts
receivable of the Company and its Restricted Subsidiaries generated in the
ordinary course of business;

 

(viii)        Investments
deemed to have been made as a result of the acquisition of a Person that at the
time of such acquisition held instruments constituting Investments that were
not acquired in contemplation of the acquisition of such Person; and

 

(ix)           additional
Investments of the Company and its Restricted Subsidiaries from time to time of
an amount not to exceed $20,000,000.

 

Notwithstanding the foregoing, amounts
available for Investments under clauses (iv) and (ix) shall be increased
by the aggregate amount of Returned Investments received by the Company on or
before the date of such Investment.

 

“Permitted Liens” means (a) Liens for
taxes, assessments or governmental charges or claims either (i) not
delinquent or (ii) contested in good faith by appropriate proceedings and
as to which the Company or any of its Restricted Subsidiaries shall have set
aside on its books such reserves as may be required pursuant to GAAP;
(b) statutory Liens of landlords and Liens of carriers, warehousemen,
mechanics, suppliers, materialmen, repairmen and other Liens imposed by law or
pursuant to customary reservations or retentions of title incurred in the
ordinary course of business for sums not yet delinquent or being contested in
good faith, if such reserve or other appropriate provision, if any, as shall be
required by GAAP shall have been made in respect thereof; (c) Liens
incurred or deposits made in the ordinary course of business in connection with
workers’ compensation, unemployment insurance and other types of social
security, including any Lien securing letters of credit issued in the ordinary
course of business consistent with past practice in connection therewith, or to
secure the performance of tenders, statutory obligations, custom bonds, surety
and appeal bonds, bids, leases, government contracts, performance and
return-of-money bonds and other similar obligations (exclusive of obligations
for the payment of borrowed money); (d) Liens arising by reason of any
judgment, decree or order of any court, but not giving rise to an Event of
Default so long as such Lien is adequately bonded and any appropriate legal
proceedings which may have been duly initiated for the review of such judgment,
decree or order shall not have been finally terminated or the period within
which such proceedings may be initiated shall not have expired; (e) survey
exceptions, easements, rights-of-way, zoning restrictions and other similar
charges or encumbrances in respect of real property not interfering in any
material respect with the ordinary conduct of the business of the Company or
any of its Restricted Subsidiaries; (f) any interest or title of a lessor
under any operating lease or any Capitalized Lease Obligation permitted
pursuant to clause (vii) of the definition of “Permitted Indebtedness” or
Liens securing any such Capitalized Lease Obligation; provided that such Liens
do not extend to any property or assets which is not leased property subject to
such Capitalized Lease Obligation; (g) Liens securing Purchase Money
Indebtedness permitted pursuant to clause (vii) of the definition of
Permitted Indebtedness; provided, however, that (a) such
Indebtedness shall not exceed the cost of the property or assets acquired,
together with, in the case where such property or assets include real property
or 

 

15

 

fixtures, the cost of the
construction thereof and improvements thereto, and shall not be secured by any
property or assets of the Company or any Restricted Subsidiary of the Company
other than such property and improvements thereto so acquired or constructed
and (b) the Lien securing such Indebtedness shall be created within 180
days of such acquisition or construction or, in the case of a refinancing of
such Indebtedness, within 180 days of such refinancing; (h) Liens upon
specific items of inventory or other goods and proceeds of any Person securing
such Person’s obligations in respect of bankers’ acceptances issued or created
for the account of such Person to facilitate the purchase, shipment or storage
of such inventory or other goods; (i) Liens securing reimbursement
obligations with respect to commercial letters of credit which encumber
documents and other property relating to such letters of credit and products
and proceeds thereof; (j) Liens encumbering deposits made to secure
obligations arising from statutory, regulatory, contractual, or warranty
requirements of the Company or any of its Restricted Subsidiaries, including
rights of offset and set-off; (k) Liens securing Interest Rate Agreements
which Interest Rate Agreements relate to Indebtedness that is otherwise
permitted pursuant clause (iv) of the definition of Permitted Indebtedness;
(l) Liens securing Currency Agreements that are permitted pursuant clause
(iv) of the definition of Permitted Indebtedness; (m) Liens securing
Acquired Indebtedness incurred in accordance with clause (viii) of the
definition of Permitted Indebtedness; provided  that:  (i) such Liens secured such Acquired
Indebtedness at the time of and prior to the incurrence of such Acquired
Indebtedness by the Company or a Restricted Subsidiary of the Company and were
not granted in connection with, or in anticipation of, the incurrence of such
Acquired Indebtedness by the Company or a Restricted Subsidiary of the Company;
and (ii) such Liens do not extend to or cover any property or assets of
the Company or of any of its Restricted Subsidiaries other than the property or
assets that secured the Acquired Indebtedness prior to the time such
Indebtedness became Acquired Indebtedness of the Company or a Restricted
Subsidiary of the Company and are no more favorable to the lien holders than
those securing the Acquired Indebtedness prior to the incurrence of such
Acquired Indebtedness by the Company or a Restricted Subsidiary of the Company;
(n) Liens existing as of the Issue Date and securing Indebtedness
permitted to be outstanding under clause (iii) of the definition of the
term Permitted Indebtedness to the extent and in the manner such Liens are in
effect on the Issue Date; (o) Liens securing letters of credit permitted
under clause (x) of the definition of the term Permitted Indebtedness, provided,
however, that such Lien is only secured by cash or Cash Equivalents;
(p) Liens securing Indebtedness of Foreign Restricted Subsidiaries to the
extent such Indebtedness is permitted under clause (xii) of the definition of
the term Permitted Indebtedness; provided, however, that no asset of the
Company or any Domestic Restricted Subsidiary shall be subject to any such
Lien; (q) Liens in favor of the Company or a Restricted Subsidiary
of the Company securing Indebtedness permitted to be incurred pursuant to
clause (v) of the definition of Permitted Indebtedness; (r) leases,
subleases, licenses and sublicenses granted to others that do not materially
interfere with the ordinary course of business of the Company and its
Restricted Subsidiaries; (s) banker’s Liens, rights of setoff and similar
Liens with respect to cash and Cash Equivalents on deposit in one or more bank
accounts in the ordinary course of business; provided that such bank accounts
are not cash collateral accounts; (t) Liens arising from the filing of
Uniform Commercial Code financing statements regarding leases; (u) Liens
securing obligations with respect to operating leases and guarantees thereof;
provided that such Liens do not extend to or cover any property of the Company
or any of its Restricted Subsidiaries other than the property subject to such
leases, any property or rights (including rights under subleases) relating to
such leased property and the equity interests of the lessee in any such lease;
(v) deposits made in the ordinary course of business to secure liability
to insurance carriers; (w) rights of a licensor of intellectual property;
(x) Liens arising out of conditional sale, title retention, consignment or
similar arrangement for the sale of goods entered into by the Company or any of
its Restricted Subsidiaries in the ordinary course of business; (y) Liens
in favor of the Pension Benefit Guaranty Corporation (or any related entity)
with respect to collateral also securing Obligations under any Credit
Agreement; (z) Liens incurred in the ordinary course of business of the

 

16

 

Company or any Restricted
Subsidiary of the Company with respect to Obligations that (i) are not
incurred in connection with the borrowing of money (other than trade credit in
the ordinary course of business) and (ii) do not in the aggregate
materially detract from the value of the property subject thereto; and
(aa) Liens securing Refinancing Indebtedness which is incurred to
refinance any Indebtedness which has been secured by a Lien permitted under
this Indenture and which has been incurred in accordance with clause (ix) of
the definition of Permitted Indebtedness; provided, however, that
such Liens: (i) are no less favorable to the Holders and are not more
favorable to the lien holders with respect to such Liens than the Liens in
respect of the Indebtedness being Refinanced; and (ii) do not extend to or
cover any property or assets of the Company or any of its Restricted
Subsidiaries not securing the Refinancing Indebtedness.

 

“Person” means an individual, partnership,
corporation, unincorporated organization, joint stock company, limited
liability company, trust or joint venture, or a governmental agency or
political subdivision thereof.

 

“Plan” means any employee benefit plan,
retirement plan, deferred compensation plan, restricted stock plan, health, life,
disability or other insurance plan or program, employee stock purchase plan,
employee stock ownership plan, pension plan, stock option plan or similar plan
or arrangement of the Company or any Restricted Subsidiary of the Company, or
any successor plan thereof, and “Plans” shall have a correlative meaning.

 

“Preferred Stock” of any Person means any
Capital Stock of such Person that has preferential rights to any other Capital
Stock of such Person with respect to dividends or redemption or upon liquidation.

 

“Private Placement Legend” means the legend
initially set forth on the Securities in the form set forth on Exhibit A
hereto.

 

“Pro Rata Interest” of any Person in any
other Person means a fraction, the numerator of which is the amount of the
equity or other ownership interest in such other Person that is beneficially
owned by such Person and its Restricted Subsidiaries, and the denominator of
which is the aggregate amount of all equity or other ownership interests in
such other Person that is outstanding (for this purpose, equity or other
ownership interests subject to presently exercisable options, warrants or other
rights to acquire such interests shall be deemed to be outstanding and shall be
included in both the numerator and denominator).  The Pro Rata Interest of any Person in any item of income or expense
or in the fair market value of the assets or liabilities of any other Person
means the amount obtained by multiplying (i) the amount of such income or
expense or the fair market value of the relevant asset or liability, as the
case may be, of such other Person by (ii) the Pro Rata Interest of such
Person in such other Person.

 

“Purchase Money Indebtedness” of any Person
means any Indebtedness incurred or assumed by a Person to finance the cost (including
the cost of construction) of an item of real or personal property or on the
improvement of such property, the principal amount of which Indebtedness does
not exceed the sum (i) 100% of such cost and (ii) reasonable fees and
expenses of such Person incurred in connection therewith and provided
that such Indebtedness is incurred or assumed within 90 days of the acquisition
of, or improvement to, such property.

 

“Qualified Capital Stock” means any Capital
Stock that is not Disqualified Capital Stock.

 

17

 

“Qualified Institutional Buyer” or “QIB”
shall have the meaning specified in Rule 144A promulgated under the
Securities Act.

 

“Redeemable Dividend” means, for any dividend
or distribution with regard to Disqualified Capital Stock or Preferred Stock,
the quotient of the dividend or distribution divided by the difference between
one and the maximum statutory United States federal income tax rate (expressed
as a decimal number between 1 and 0) then applicable to the issuer of such
Disqualified Capital Stock or Preferred Stock, as the case may be.

 

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

 

“Reference Period” with regard to any Person
means the four full fiscal quarters of such Person ended on or immediately
preceding any date upon which any determination is to be made pursuant to the
terms of the Securities or this Indenture; provided, that if the
Transaction Date in question is more than 90 days after the end of such
Person’s most recently completed fiscal year or more than 45 days after the end
of such Person’s most recently completed fiscal quarter (other than the fourth
fiscal quarter), then “Reference Period” shall mean the four full fiscal
quarters ended on the last day of such fiscal year or fiscal quarter, as the
case may be, unless financial information for a later period of four full
fiscal quarters is available.

 

“Refinancing Indebtedness” means an extension,
renewal, replacement, refinancing or refunding of any Indebtedness which is
Permitted Indebtedness (other than pursuant to clauses (ii), (iv), (v), (vi),
(vii), (x), (xi) and (xii) of the definition thereof) or is otherwise incurred
in accordance with Section 4.06 (such Indebtedness is collectively referred to
as “Refinancing Indebtedness”); provided, that (1) the maximum
principal amount of the relevant Refinancing Indebtedness (or, if such
Refinancing Indebtedness (if not a revolving credit or similar arrangement)
does not require cash payments prior to maturity or is otherwise issued at a
discount, the original issue price of such Refinancing Indebtedness) may not
exceed (x) the maximum principal amount of the relevant Indebtedness or Disqualified
Capital Stock being extended, renewed, replaced, refinanced or refunded, plus
unpaid interest, prepayment penalties, redemption premiums, fees, expenses and
other amounts owing with respect thereto, plus reasonable financing fees and
other reasonable out-of-pocket expenses incurred in connection therewith
(collectively, “Refinancing Costs”), or (y) if such Indebtedness or
Disqualified Capital Stock being extended, renewed, replaced, refinanced or
refunded was issued at an original issue discount, the original issue price,
plus amortization of the original issue discount at the time of the incurrence
of the Refinancing Indebtedness plus Refinancing Costs, (2) if Pari Passu Debt
or Disqualified Capital Stock, such Refinancing Indebtedness has a Weighted
Average Life to Maturity and a final maturity that is equal to or greater than
the Pari Passu Debt or Disqualified Capital Stock being extended, renewed,
replaced, refinanced or refunded at the time of such extension, renewal, replacement,
refinancing or refunding, (3) with respect to Indebtedness or Disqualified
Capital Stock of the Company or any Restricted Subsidiaries, the relevant
Refinancing Indebtedness shall rank in right of payment with respect to the
Securities to an extent no less favorable in respect thereof to the holders of
Securities than the Indebtedness or Disqualified Capital Stock being
refinanced, extended, renewed, replaced or refunded and (4) Refinancing
Indebtedness incurred by a Restricted Subsidiary of the Company shall only be
used to refinance outstanding Indebtedness or Disqualified Capital Stock of
such Restricted Subsidiary or any other Restricted Subsidiary of the Company.

 

“Registration Rights Agreement” means the
Registration Rights Agreement dated as of June 9, 2004 among the Company
and Merrill Lynch, Pierce, Fenner & Smith Incorporated, Deutsche Bank
Securities Inc., Lehman Brothers Inc. and UBS Securities LLC, as Initial
Purchasers,

 

18

 

relating to the Securities and
any similar registration rights agreement entered into from time to time in
connection with any Additional Securities.

 

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

 

“Related Business” means (i) any line or
lines of business or business activity conducted by the Company, its
Subsidiaries and Emerging Market Subsidiaries on the Issue Date, including,
without limitation, the licensing of brand names, (ii) any line or lines
of business or business activity reasonably related thereto, and (iii) the
manufacture, distribution, marketing, leasing and/or sale of consumer travel
and luggage products.

 

“Responsible Officer” shall mean, when used
with respect to the Trustee, any officer within the corporate trust department
of the Trustee, including any vice president, assistant vice president,
assistant treasurer, trust officer or any other officer of the Trustee who
customarily performs functions similar to those performed by the persons who at
the time shall be such officers, respectively, or to whom any corporate trust
matter is referred because of such person’s knowledge of and familiarity with
the particular subject and who shall have direct responsibility for the
administration of this Indenture.

 

“Restricted Payment” means (i) the
declaration or payment of any dividend or the making of any other distribution
(other than dividends or distributions payable in Qualified Capital Stock) on
shares of the Company’s Capital Stock, (ii) the purchase, redemption,
retirement or other acquisition for value of any Capital Stock of the Company,
or any warrants, rights or options to acquire shares of Capital Stock of the
Company, other than through the exchange of such Capital Stock or any warrants,
rights or options to acquire shares of any class of such Capital Stock for
Qualified Capital Stock or warrants, rights or options to acquire Qualified
Capital Stock, (iii) the making of any principal payment on, or the
purchase, defeasance, redemption, prepayment, decrease or other acquisition or
retirement for value, prior to any scheduled final maturity, scheduled
repayment or scheduled sinking fund payment, of, any Subordinated Debt of the
Company or its Subsidiaries, (iv) the making of any Investment (other than
a Permitted Investment) (provided that the amount of any Investment for
purposes of this clause (iv) shall be calculated by subtracting the amount
of any applicable Returned Investments, if any, on any such Investment),
(v) any designation of a Restricted Subsidiary as an Unrestricted
Subsidiary on the basis of the fair market value of such Subsidiary utilizing
standard valuation methodologies and approved by the Board of Directors or
(vi) forgiveness of any Indebtedness of an Affiliate of the Company to the
Company or a Restricted Subsidiary; provided, however, that the
term “Restricted Payment” does not include (a) any defeasance, redemption,
repurchase or other acquisition or retirement for value, in whole or in part,
of Indebtedness of the Company payable solely in shares of Qualified Capital
Stock or Subordinated Debt or (b) the repayment or retirement of
Subordinated Debt with the proceeds of Refinancing Indebtedness incurred in
accordance with clause (ix) of the definition of Permitted Indebtedness.  For purposes of determining the amount
available to make Restricted Payments pursuant to clause (a)(iii) of
Section 4.08, the amount of any Restricted Payments made pursuant to clauses
(iv) or (v) above shall be calculated after giving effect to any
Returned Investments.

 

“Restricted Security” has the meaning set
forth in Rule 144(a)(3) promulgated under the Securities Act; provided
that the Trustee shall be entitled to request and conclusively rely upon an
Opinion of Counsel with respect to whether any Note is a Restricted Security.

 

“Restricted Subsidiary” means a Subsidiary of
the Company other than an Unrestricted Subsidiary and includes all of the
Subsidiaries of the Company (other than the Initial Emerging

 

19

 

Market Subsidiaries) existing
as of the Issue Date, subject, however, to clause (v) of Section 4.16
providing for Emerging Market Subsidiaries to constitute Restricted
Subsidiaries but only to the extent provided therein.  The Board of Directors of the Company may designate any
Unrestricted Subsidiary or any Person that is to become a Subsidiary as a
Restricted Subsidiary if immediately after giving effect to such action (and
treating any Acquired Indebtedness as having been incurred at the time of such
action), the Company could have incurred at least $1.00 of additional
Indebtedness (other than Permitted Indebtedness) pursuant to Section 4.06; provided
that the Company may not designate any Emerging Market Subsidiary to become a
Restricted Subsidiary unless such designation complies with the requirements
set forth in the definition of “Emerging Market Subsidiary” relating thereto.

 

“Returned Investments” mean, with respect to
all Investments made in Emerging Market Subsidiaries or Unrestricted
Subsidiaries pursuant to clauses (iv) or (ix), respectively, of the
definition of “Permitted Investments” or pursuant to clauses (iv) or
(v) of the definition of “Restricted Payment,” the aggregate amount of
(i) all payments made in respect of such Investments, other than interest,
dividends or other distributions not in the nature of a return or repurchase of
capital or a repayment of principal, that have been paid or returned, without
restriction, in cash to the Company and its Restricted Subsidiaries and
(ii) the Pro Rata Interest of the Company and its Restricted Subsidiaries
in the fair market value of the net assets of all Emerging Market Subsidiaries
or Unrestricted Subsidiaries, as the case may be, that have been designated a
Restricted Subsidiary of the Company after the Issue Date, such fair market
value to be determined as of the date of such designation; provided,
that amounts under the foregoing clause (ii) with respect to each such
Emerging Market Subsidiary or Unrestricted Subsidiary, as the case may be,
shall not constitute Returned Investments to the extent that such amount
exceeds the total amount of Investments by the Company and its Restricted
Subsidiaries in such Emerging Market Subsidiary or Unrestricted Subsidiary, as
the case may be.  Notwithstanding the
foregoing, Returned Investments shall be credited to the amounts available for
Investments pursuant to clauses (iv) or (ix) of the definition of
“Permitted Investments” or Investments made pursuant to the provisions of
clauses (iv) or (v) of the definition of “Restricted Payment,” as the
case may be, only to the extent that such Returned Investments are in respect
of Investments made pursuant to each such clause or provision.

 

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

 

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

 

“SEC” means the United States Securities and
Exchange Commission as constituted from time to time or any successor
performing substantially the same functions.

 

“Securities” means Initial Securities and
Exchange Securities, including any Additional Securities.

 

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

 

“Senior Subordinated Notes” means the
Company’s 8.875% Senior Subordinated Notes due 2011.

 

“Significant Restricted Subsidiary” of the
Company means any Restricted Subsidiary of the Company which satisfies the
requirements for being a “significant subsidiary” as defined in Regulation S-X
under the Securities Act and the Exchange Act.

 

20

 

“Subordinated Debt” means Indebtedness of the
Company or any Subsidiary that is subordinated in right of payment by its
express terms, or by the express terms of any related document, to the
Securities.

 

“Subsidiary”, with respect to any Person,
means (i) any corporation of which the outstanding Capital Stock having at
least a majority of the votes entitled to be cast in the election of directors
under ordinary circumstances shall at the time be owned, directly or
indirectly, by such Person or (ii) any other Person of which at least a
majority of the voting interest under ordinary circumstances is at the time,
directly or indirectly, owned by such Person.

 

“TIA” means the Trust Indenture Act of 1939
(15 U.S. Code §§ 77aaa-77bbbb) as in effect on the date of this Indenture
(except as provided in Section 8.03 hereof).

 

“Trustee” means the party named as such in
this Indenture until a successor replaces it pursuant to this Indenture and
thereafter means the successor.

 

“Unrestricted Subsidiary” means (a) any
Emerging Market Subsidiary, (b) any Subsidiary of an Unrestricted
Subsidiary or an Emerging Market Subsidiary and (c) any Subsidiary of the
Company which is classified after the Issue Date as an Unrestricted Subsidiary
or an Emerging Market Subsidiary by a resolution adopted by the Board of
Directors of the Company; provided that a Subsidiary organized or
acquired after the Issue Date may be so classified as an Unrestricted
Subsidiary only if such classification is in compliance with Section 4.08; and provided,
further, that a Subsidiary may not be classified as an Emerging Market
Subsidiary unless such classification would be in compliance with Section 4.16
and the provisions of the definition of “Emerging Market Subsidiary.”  The Trustee shall be given prompt notice by
the Company of each resolution adopted by the Board of Directors of the Company
under this provision, together with a copy of each such resolution so adopted.

 

“Weighted Average Life to Maturity” means,
when applied to any Indebtedness at any date, the number of years obtained by
dividing (a) the then outstanding aggregate principal amount of such Indebtedness
into (b) the total of the product obtained by multiplying (i) the
amount of each then remaining installment, sinking fund, serial maturity or
other required payment of principal, including payment at final maturity, in
respect thereof, by (ii) the number of years (calculated to the nearest
one-twelfth) which will elapse between such date and the making of such
payment.

 

“Wholly-Owned Subsidiary” means any
Restricted Subsidiary all of the outstanding voting securities (other than
directors’ qualifying shares) of which are owned, directly or indirectly, by
the Company.

 

Section 1.02.                             Other
Definitions.

 

The definitions of the following terms may be
found in the sections indicated as follows:

 

21

 

	
  Term

  	
   

  	
  Defined in Section

  
	
  “Acceleration Notice”

  	
   

  	
  6.02

  
	
  “Affiliate Transaction”

  	
   

  	
  4.10

  
	
  “Bankruptcy Law”

  	
   

  	
  6.01

  
	
  “Bankruptcy Proceeding”

  	
   

  	
  10.02

  
	
  “Business Day”

  	
   

  	
  11.08

  
	
  “Calculation Agent”

  	
   

  	
  2.03

  
	
  “Change of Control Offer”

  	
   

  	
  4.13

  
	
  “Change of Control Payment Date”

  	
   

  	
  4.13

  
	
  “Change of Control Purchase Price”

  	
   

  	
  4.13

  
	
  “Covenant Defeasance”

  	
   

  	
  9.03

  
	
  “Custodian”

  	
   

  	
  6.01

  
	
  “Event of Default”

  	
   

  	
  6.01

  
	
  “Excess Proceeds Offer”

  	
   

  	
  4.09

  
	
  “Global Securities”

  	
   

  	
  2.01

  
	
  “Judgment Currency”

  	
   

  	
  11.16

  
	
  “Legal Defeasance”

  	
   

  	
  9.02

  
	
  “Legal Holiday”

  	
   

  	
  11.08

  
	
  “Offer Period”

  	
   

  	
  4.09

  
	
  “Offshore Physical Securities”

  	
   

  	
  2.01

  
	
  “Paying Agent”

  	
   

  	
  2.03

  
	
  “Payment Restriction”

  	
   

  	
  4.17

  
	
  “Physical Securities”

  	
   

  	
  2.01

  
	
  “Principal Paying Agent”

  	
   

  	
  2.03

  
	
  “Purchase Date”

  	
   

  	
  4.09

  
	
  “Registrar”

  	
   

  	
  2.03

  
	
  “Required Currency”

  	
   

  	
  11.16

  
	
  “Reinvestment Date”

  	
   

  	
  4.09

  
	
  “Required Filing Dates”

  	
   

  	
  4.02

  
	
  “U.S. Physical Securities”

  	
   

  	
  2.01

  

 

Section 1.03.                             Incorporation
by Reference of Trust Indenture Act.

 

Whenever this Indenture refers to a provision
of the TIA, the portion of such provision required to be incorporated herein in
order for this Indenture to be qualified under the TIA is incorporated by
reference in and made a part of this Indenture.  The following TIA terms used in this Indenture have the following
meanings:

 

“Commission” means the SEC.

 

“indenture securities” means the Securities.

 

“indenture securityholder” means a
Securityholder.

 

“indenture to be qualified” means this
Indenture.

 

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

 

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

 

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

 

22

 

Section 1.04.                             Rules
of Construction.

 

Unless the context otherwise requires:

 

	
  (1)

  	
  a term has the meaning assigned to it
  herein, whether defined expressly or by reference;

  
	
   

  	
   

  
	
  (2)

  	
  an accounting term not otherwise defined
  has the meaning assigned to it in accordance with

  GAAP;

  
	
   

  	
   

  
	
  (3)

  	
  “or” is not exclusive;

  
	
   

  	
   

  
	
  (4)

  	
  words in the singular include the plural,
  and in the plural include the singular; and

  
	
   

  	
   

  
	
  (5)

  	
  words used herein implying any gender shall
  apply to every gender.

  

 

ARTICLE 2

 

THE SECURITIES

 

Section 2.01.                             Dating;
Incorporation of Form in Indenture.

 

The Securities and the Trustee’s certificate
of authentication shall be substantially in the form of Exhibit A which is
incorporated in and made part of this Indenture.  The Securities may have notations, legends or endorsements
required by law, stock exchange rule or usage. 
The Company may use “CUSIP” numbers, “ISIN” or “Common Codes” in issuing
the Securities.  The Company shall
approve the form of the Securities. 
Each Security shall be dated the date of its authentication.

 

The terms and provisions contained in the
Securities shall constitute, and are hereby expressly made, a part of this
Indenture and, to the extent applicable, the Company and the Trustee, by their
execution and delivery of this Indenture, expressly agree to such terms and
provisions and to be bound thereby.

 

The Securities offered and sold in reliance
on Rule 144A shall be issued initially in the form of one or more
permanent Global Securities in registered form, substantially in the form set
forth in Exhibit A (“Global Securities”), deposited with the Trustee, as
custodian for the Common Depository, duly executed by the Company and
authenticated by the Trustee as hereinafter provided and shall bear the
legend set forth on Exhibit B.  The
aggregate principal amount of any Global Security may from time to time be
increased or decreased by adjustments made on the records of the Trustee, as
custodian for the Common Depository, as hereinafter provided.

 

Securities offered and sold in offshore
transactions in reliance on Regulation S may be issued in the form of
certificated Securities in registered form set forth in Exhibit A (the
“Offshore Physical Securities”). 
Securities offered and sold in reliance on any other exemption from
registration under the Securities Act other than as described in the preceding
paragraph shall be issued, and Securities offered and sold in reliance on
Rule 144A may be issued, in the form of certificated Securities in
registered form in substantially the form set forth in Exhibit A (the
“U.S. Physical Securities”).  The

 

23

 

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

 

Section 2.02.                             Execution
and Authentication; Amount.

 

The Securities shall be executed on behalf of
the Company by two Officers of the Company or an Officer and an Assistant
Secretary of the Company.  Such
signature may be either manual or facsimile.

 

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

 

A Security shall not be valid until the
Trustee manually signs the certificate of authentication on the Security.  Such signature shall be conclusive evidence
that the Security has been authenticated under this Indenture.

 

The Trustee, upon a Company Request shall
authenticate (i) Initial Securities for original issue on the Issue Date
in the aggregate principal amount not to exceed €100,000,000 and
(ii) subject to Section 4.06, Additional Securities.  The Trustee, upon a Company Request, shall
authenticate Exchange Securities; provided that such Exchange Securities
shall be issuable only upon the valid surrender for cancellation of Initial
Securities of a like aggregate principal amount in accordance with an exchange
offer specified in any registration rights agreement relating to the Additional
Securities or to be offered in connection with any issuance of Additional
Securities pursuant to a registration statement filed pursuant to the
Securities Act.  Such Company Request
shall specify the amount of Securities to be authenticated and the date on
which the original issue of Securities is to be authenticated.  Any Additional Securities shall be part of
the same issue as the Initial Securities being issued on the Issue Date and
will vote on all matters as one class with the Initial Securities being issued
on the Issue Date, including, without limitation, waivers, amendments, redemptions,
Change of Control Offers and Excess Proceeds Offers.  For the purposes of this Indenture, except for Section 4.06
hereof, references to the Securities include Additional Securities, if any.

 

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

 

The Securities shall be issuable in fully
registered form only, without coupons, in denominations of €5,000 and any
integral multiple of €1,000.

 

Section 2.03.                             Registrar
and Paying Agent.

 

The Company will maintain one or more paying
agents (each, a “Paying Agent”) for the Securities in each of (i) the
Borough of Manhattan, City of New York (the “Principal Paying Agent”) and
(ii) Luxembourg, for so long as the Securities are listed on the
Luxembourg Stock Exchange and its rules so require.  If the European Council Directive 2003/48/EC or any other
directive implementing the conclusions of the ECOFIN Council meeting of 26-27
November 2000 is implemented, the Company will use its best efforts to
maintain a Paying Agent in a member state of the European Union that will not
be obliged to withhold or deduct tax pursuant to any European Union Directive on
the taxation of savings implementing such conclusions or any law implementing
or complying with, or introduced to conform to, such directive.  The initial Paying Agents will be The Bank

 

24

 

of New York in New York and The
Bank of New York Europe Limited Luxembourg Branch in Luxembourg.

 

The Company will also maintain one or more
registrars (each, a “Registrar”) with offices in the Borough of Manhattan, City
of New York.  The Company will also
maintain a transfer agent in each of New York and Luxembourg, for so long as
the Securities are listed on the Luxembourg Stock Exchange and the rules so
require.  The initial Registrar will be
The Bank of New York in New York.  The
initial transfer agent will be The Bank of New York in New York and The Bank of
New York Europe Limited Luxembourg Branch in Luxembourg.  The Registrar and the transfer agent in New
York and the transfer agent in Luxembourg will maintain a register reflecting
ownership of Securities outstanding from time to time and will make payments on
and facilitate transfer of notes on behalf of the Company.  Each transfer agent shall perform the
functions of a transfer agent.  In addition,
the Company shall appoint a calculation agent (the “Calculation Agent”) to
determine the interest rate on the Securities. 
The Company may change any Paying Agent, Registrar or co-registrar
without notice to any Holder.  If, and
for so long as, the Securities are listed on the Luxembourg Stock Exchange and
its rules so require, the Company will publish a notice of any change of Paying
Agent, Registrar or transfer agent in a newspaper having a general circulation
in Luxembourg (which is expected to be the Luxemburger
Wort).  The Company or any of
its Subsidiaries may act as a Paying Agent or Registrar.

 

The Company shall enter into an appropriate
agency agreement with any Registrar, Paying Agent or Calculation Agent not a
party to this Indenture.  The agreement
shall implement the provisions of this Indenture that relate to such
Agent.  The Company shall notify the
Trustee of the name and address of any such Agent.  If the Company fails to maintain a Registrar, Paying Agent or
Calculation Agent, or agent for service of notices and demands, or fails to
give the foregoing notice, the Trustee shall act as such.  The Company initially appoints the Trustee
as Registrar, Paying Agent, Calculation Agent and agent for service of notices
and demands in connection with the Securities.

 

Section 2.04.                             Paying
Agent To Hold Assets in Trust.

 

On or before each due date of the principal
of and interest on any Securities, the Company shall deposit with the Paying
Agent a sum sufficient to pay such principal and interest so becoming due.  The Company at any time may require a Paying
Agent to pay all money held by it to the Trustee.  Upon doing so, the Paying Agent shall have no further liability
for such money.

 

Section 2.05.                             Securityholder
Lists.

 

The Trustee shall preserve in as current a
form as is reasonably practicable the most recent list available to it of the
names and addresses of Securityholders. 
If the Trustee is not the Registrar, the Company shall furnish to the
Trustee on or before each June 1 and December 1 in each year, and at
such other times as the Trustee may request in writing, a list as of the applicable
Record Date and in such form and as of such date as the Trustee may reasonably
require of the names and addresses of Securityholders.

 

Section 2.06.                             Transfer
and Exchange.

 

When a Security is presented to the Registrar
with a request to register the transfer thereof, the Registrar shall register
the transfer as requested if the requirements of applicable law are met and,
when Securities are presented to the Registrar with a request to exchange them
for an equal principal amount of Securities of other authorized denominations,
the Registrar shall make the exchange

 

25

 

as requested provided
that every Security presented or surrendered for registration of transfer or
exchange shall be duly endorsed, or be accompanied by a written instrument of
transfer in form satisfactory to the Company and the Registrar duly executed by
the Holder thereof or his attorney duly authorized in writing.  To permit transfers and exchanges, upon
surrender of any Security for registration of transfer at the office or agency
maintained pursuant to Section 2.03 hereof, the Company shall execute and
the Trustee shall authenticate Securities at the Registrar’s request.  Any exchange or transfer shall be without
charge, except that the Company may require payment by the Holder of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation to a transfer or exchange, but this provision shall not apply to any
exchange pursuant to Sections 2.09, 3.06 or 8.05 hereof.  The Trustee shall not be required to
register transfers of Securities or to exchange Securities for a period of 15
days before mailing notice to Holders of a redemption of Securities.  The Trustee shall not be required to
exchange or register transfers of any Securities called or being called for
redemption in whole or in part, except the unredeemed portion of any Security
being redeemed in part.

 

Section 2.07.                             Replacement
Securities.

 

If a mutilated Security is surrendered to the
Trustee or if the Holder of a Security presents evidence to the satisfaction of
the Company and the Trustee that the Security has been lost, destroyed or
wrongfully taken, the Company shall issue and the Trustee shall authenticate a
replacement Security if the requirements of Section 8-405 of the New York
Uniform Commercial Code as in effect on the date of this Indenture are
met.  An indemnity bond shall be
required that is sufficient in the judgment of the Company and the Trustee to
protect the Company, the Trustee or any Agent from any loss which any of them
may suffer if a Security is replaced. 
In every case of destruction, loss or theft, the applicant shall also
furnish to the Company and to the Trustee evidence to their satisfaction of the
destruction, loss or the theft of such Security and the ownership thereof.  The Company and the Trustee may charge for
its expenses in replacing a Security. 
Every replacement Security is an additional obligation of the Company.

 

Section 2.08.                             Outstanding
Securities.

 

Securities outstanding at any time are all
Securities authenticated by the Trustee except for those cancelled by it, those
delivered to it for cancellation, and those described in this Section 2.08
as not outstanding.

 

If a Security is replaced pursuant to
Section 2.07, it ceases to be outstanding until the Company and the
Trustee receive proof satisfactory to each of them that the replaced Security
is held by a bona fide purchaser.

 

If a Paying Agent holds on a Redemption Date
or Maturity Date money sufficient to pay the principal of, premium, if any, and
accrued interest on Securities payable on that date, then on and after that
date such Securities cease to be outstanding and interest on them ceases to accrue.

 

Subject to Section 11.06, a Security
does not cease to be outstanding solely because the Company or an Affiliate
holds the Security.

 

Section 2.09.                             Temporary
Securities.

 

Until definitive Securities are ready for
delivery, the Company may prepare and the Trustee shall, upon receipt of a Company
Request, authenticate temporary Securities. 
Temporary Securities shall be substantially in the form, and shall carry
all rights, of definitive Securities but may

 

26

 

have variations that the Company
considers appropriate for temporary Securities.  Without unreasonable delay, the Company shall prepare and the
Trustee shall authenticate definitive Securities in exchange for temporary
Securities presented to it.

 

Section 2.10.                             Cancellation.

 

The Company at any time may deliver
Securities to the Trustee for cancellation. 
The Registrar and the Paying Agent shall forward to the Trustee any
Securities surrendered to them for transfer, exchange or payment.  The Trustee shall cancel and retain or, upon
written request of the Company, may dispose of or return to the Company in
accordance with its normal practice, all Securities surrendered for transfer,
exchange, payment or cancellation. 
Subject to Section 2.07 hereof, the Company may not issue new
Securities to replace Securities in respect of which it has previously paid all
principal, premium and interest accrued thereon, or delivered to the Trustee
for cancellation.

 

Section 2.11.                             Defaulted
Interest.

 

If the Company defaults in a payment of
interest on the Securities, it shall pay the defaulted amounts, plus any
interest payable on defaulted amounts pursuant to Section 4.01 hereof, to
the persons who are Securityholders on a subsequent special record date.  The Company shall fix the special record
date and payment date in a manner satisfactory to the Trustee and provide the
Trustee at least 20 days notice of the proposed amount of default interest to
be paid and the special payment date. 
At least 15 days before the special record date, the Company shall mail
or cause to be mailed to each Securityholder at his address as it appears on
the Securities register maintained by the Registrar a notice that states the
special record date, the payment date (which shall be not less than five nor
more than ten days after the special record date), and the amount to be
paid.  In lieu of the foregoing
procedures, the Company may pay defaulted interest in any other lawful manner
satisfactory to the Trustee.

 

Section 2.12.                             Deposit
of Moneys.

 

Prior to 10:00 a.m., London time, on
each Interest Payment Date and Maturity Date, the Company shall have deposited
with the Paying Agent in immediately available funds money sufficient to make
cash payments, if any, due on such Interest Payment Date or Maturity Date, as
the case may be, in a timely manner which permits the Trustee to remit payment
to the Holders on such Interest Payment Date or Maturity Date, as the case may
be.

 

Section 2.13.                             CUSIP,
ISIN and/or Common Codes.

 

The Company in issuing the Securities may use
a “CUSIP” number(s), ISIN and/or Common Codes and if so, the Trustee shall use
the CUSIP number(s), ISIN and/or Common Codes in notices of redemption or exchange
as a convenience to Holders, provided that any such notice may state
that no representation is made as to the correctness or accuracy of the CUSIP
number(s), ISIN and/or Common Codes printed in the notice or on the Securities,
and that reliance may be placed only on the other identification numbers
printed on the Securities.  The Company
shall promptly inform the Trustee of any change in the CUSIP number(s), ISIN
and/or Common Codes.

 

Section 2.14.                             Book-Entry
Provisions for Global Securities.

 

(a)           The Global
Securities initially shall (i) be registered in the name of the Common
Depository or its nominee, (ii) be delivered to the Trustee as custodian
for such Common Depository and (iii) bear legends as set forth in
Exhibit B.

 

27

 

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

 

(b)           Transfers of Global
Securities shall be limited to transfer in whole, but not in part, to the
Common Depository, its successors or their respective nominees.  Interests of beneficial owners in the Global
Securities may be transferred or exchanged for Physical Securities in
accordance with the rules and procedures of the Common Depository and the
Depositary and the provisions of Section 2.15.  In addition, Physical Securities shall be transferred to all
beneficial owners in exchange for their beneficial interests in Global
Securities if (i) the Depositary notifies the Company that it is unwilling
or unable to continue as Depositary for any Global Security and a successor
depositary is not appointed by the Company within 90 days of such notice or
(ii) an Event of Default has occurred and is continuing and the Registrar
has received a written request from the Depository to issue Physical
Securities.

 

(c)           In connection with
any transfer or exchange of a portion of the beneficial interest in any Global
Security to beneficial owners pursuant to paragraph (b), the Registrar
shall (if one or more Physical Securities are to be issued) reflect on its
books and records the date and a decrease in the principal amount of the Global
Security in an amount equal to the principal amount of the beneficial interest
in the Global Security to be transferred, and the Company shall execute, and
the Trustee shall upon receipt of a written order from the Company authenticate
and make available for delivery, one or more Physical Securities of like tenor
and amount.

 

(d)           In connection with
the transfer of Global Securities as an entirety to beneficial owners pursuant
to paragraph (b), the Global Securities shall be deemed to be surrendered
to the Trustee for cancellation, and the Company shall execute, and the Trustee
shall authenticate and deliver, to each beneficial owner identified by the
Depositary in writing in exchange for its beneficial interest in the Global
Securities, an equal aggregate principal amount of Physical Securities of
authorized denominations.

 

(e)           Any Physical
Security constituting a Restricted Security delivered in exchange for an
interest in a Global Security pursuant to paragraph (b), (c) or
(d) shall, except as otherwise provided by paragraphs (a)(i)(x)
and (c) of Section 2.15, bear the Private Placement Legend.

 

(f)            The Holder of any
Global Security may grant proxies and otherwise authorize any Person, including
Agent Members and Persons that may hold interests through Agent Members, to
take any action which a Holder is entitled to take under this Indenture or the
Securities.

 

(g)           With respect to any
Global Security deposited with the Trustee as custodian for the Common
Depository, the provisions of the operating procedures of Euroclear and
Clearstream shall be applicable to the Global Securities.

 

28

 

Section 2.15.                             Special
Transfer Provisions.

 

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

 

(i)            the
Registrar shall register the transfer of any Security constituting a Restricted
Security, whether or not such Security bears the Private Placement Legend, if
(x) the requested transfer is subsequent to a date which is two years
after the later of the Issue Date and the last date on which the Company or any
of its Affiliates was the owner of such Security or (y) (1) in the
case of a transfer to an Institutional Accredited Investor which is not a QIB
(excluding Non-U.S. Persons), the proposed transferee has delivered to the
Registrar a certificate substantially in the form of Exhibit C hereto or
(2) in the case of a transfer to a Non-U.S. Person (including a QIB), the
proposed transferor has delivered to the Registrar a certificate substantially
in the form of Exhibit D hereto; and

 

(ii)           if
the proposed transferor is an Agent Member holding a beneficial interest in a
Global Security, upon receipt by the Registrar of (x) the certificate, if
any, required by paragraph (i) above and (y) instructions given
in accordance with the Depositary’s and the Registrar’s procedures,

 

whereupon
(a) the Registrar shall reflect on its books and records the date and (if
the transfer does not involve a transfer of outstanding Physical Securities) a
decrease in the principal amount of a Global Security in an amount equal to the
principal amount of the beneficial interest in a Global Security to be
transferred, and (b) the Company shall execute and the Trustee shall
authenticate and make available for delivery one or more Physical Securities of
like tenor and amount.

 

(b)           Transfers to QIBs.  The following provisions shall apply with
respect to the registration of any proposed transfer of a Security constituting
a Restricted Security to a QIB (excluding transfers to Non-U.S. Persons):

 

(i)            the
Registrar shall register the transfer if such transfer is being made by a
proposed transferor who has checked the box provided for on the form of Security
stating, or has otherwise advised the Company and the Registrar in writing,
that the sale has been made in compliance with the provisions of Rule 144A
to a transferee who has signed the certification provided for on the form of
Security stating, or has otherwise advised the Company and the Registrar in
writing, that it is purchasing the Security for its own account or an account with
respect to which it exercises sole investment discretion and that it and any
such account is a QIB within the meaning of Rule 144A, and is aware that
the sale to it is being made in reliance on Rule 144A and acknowledges
that it has received such information regarding the Company as it has requested
pursuant to Rule 144A or has determined not to request such information
and that it is aware that the transferor is relying upon its foregoing
representations in order to claim the exemption from registration provided by
Rule 144A; and

 

(ii)           if
the proposed transferee is an Agent Member, and the Securities to be transferred
consist of Physical Securities which after transfer are to be evidenced by an
interest in the Global Security, upon receipt by the Registrar of instructions
given in accordance with the Depositary’s and the Registrar’s procedures, the
Registrar shall reflect on its books and records the date and an increase in
the principal amount of the Global Security in an amount

 

29

 

equal to the
principal amount of the Physical Securities to be transferred, and the Trustee
shall cancel the Physical Securities so transferred.

 

(c)           Private Placement
Legend.  Upon the transfer, exchange
or replacement of Securities not bearing the Private Placement Legend, the
Registrar shall deliver Securities that do not bear the Private Placement Legend.  Upon the transfer, exchange or replacement
of Securities bearing the Private Placement Legend, the Registrar shall deliver
only Securities that bear the Private Placement Legend unless (i) the
circumstances contemplated by paragraph (a)(i)(x) of this
Section 2.15 exist, (ii) there is delivered to the Registrar an
Opinion of Counsel reasonably satisfactory to the Company to the effect that
neither such legend nor the related restrictions on transfer are required in
order to maintain compliance with the provisions of the Securities Act or
(iii) such Security has been sold pursuant to an effective registration
statement under the Securities Act.

 

(d)           General.  By its acceptance of any Security bearing
the Private Placement Legend, each Holder of such a Security acknowledges the
restrictions on transfer of such Security set forth in this Indenture and in
the Private Placement Legend and agrees that it will transfer such Security
only as provided in this Indenture, and each Holder agrees to indemnify the
Company and the Trustee against any liability resulting from the transfer of
such Holder’s Security in violation of the provisions hereof or of applicable
federal or state securities laws.

 

The Registrar shall retain copies of all
letters, notices and other written communications received pursuant to
Section 2.14 hereof or this Section 2.15.  The Company shall have the right to inspect and make copies of
all such letters, notices or other written communications at any reasonable
time upon the giving of reasonable notice to the Registrar.

 

(e)           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 Security
(including any transfers between or among depositary participants or beneficial
owners of interests in any Global Security), 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.

 

ARTICLE 3

 

REDEMPTION

 

Section 3.01.                             Notices
to Trustee.

 

If the Company elects to redeem Securities
pursuant to Section 3.07, (i) at least 60 days prior to the
Redemption Date in the case of a partial redemption, (ii) at least 45 days
prior to the Redemption Date in the case of a total redemption or
(iii) during such other period as the Trustee may agree to, the Company
shall notify the Trustee in writing of the Redemption Date, the principal amount
of Securities to be redeemed and the redemption price, and deliver to the
Trustee an Officers’ Certificate stating that such redemption will comply with
the conditions contained in Section 3.07 hereof, as appropriate.

 

30

 

Section 3.02.                             Selection
by Trustee of Securities To Be Redeemed.

 

In the event that fewer than all of the
Securities are to be redeemed, the Trustee shall select the Securities to be
redeemed, if the Securities are listed on a national securities exchange, in
accordance with the rules of such exchange (including the Luxembourg Stock
Exchange) or, if the Securities are not so listed, on either a pro rata basis
or by lot, or such other method as it shall deem fair and equitable; provided,
however, that a redemption pursuant to Section 3.07(b) shall
be made by the Trustee on a pro rata basis, unless such method is
prohibited.  The Trustee shall promptly
notify the Company of the Securities selected for redemption and, in the case
of any Securities selected for partial redemption, the principal amount thereof
to be redeemed.  The Trustee may select
for redemption portions of the principal of Securities that have denominations
larger than €5,000.  Securities and portions
thereof the Trustee selects shall be redeemed in amounts of €1,000 or whole
multiples of €1,000.  For all purposes
of this Indenture unless the context otherwise requires, provisions of this
Indenture that apply to Securities called for redemption also apply to portions
of Securities called for redemption.

 

Section 3.03.                             Notice
of Redemption.

 

At least 30 days, and no more than 60 days,
before a Redemption Date, the Company shall mail, or cause to be mailed, a
notice of redemption by first-class mail to each Holder of Securities to be
redeemed at his or her last address as the same appears on the registry books
maintained by the Registrar pursuant to Section 2.03 hereof.

 

The notice shall identify the Securities to
be redeemed (including the CUSIP number(s) thereof) and shall state:

 

(1)           the
Redemption Date;

 

(2)           the
redemption price;

 

(3)           if
any Security is being redeemed in part, the portion of the principal amount of
such Security to be redeemed and that, after the Redemption Date and upon
surrender of such Security, a new Security or Securities in principal amount
equal to the unredeemed portion will be issued;

 

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

 

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

 

(6)           that
unless the Company defaults in making the redemption payment, interest on
Securities called for redemption ceases to accrue on and after the Redemption
Date;

 

(7)           the
paragraph of the Securities pursuant to which the Securities are being redeemed;
and

 

(8)           the
aggregate principal amount of Securities that are being redeemed.

 

At the Company’s request, the Trustee shall
give the notice of redemption in the Company’s name and at the Company’s sole
expense.

 

31

 

Section 3.04.                             Effect
of Notice of Redemption.

 

Once the notice of redemption described in
Section 3.03 is mailed, Securities called for redemption become due and
payable on the Redemption Date and at the redemption price, including any
premium, plus interest accrued to the Redemption Date.  Upon surrender to the Paying Agent, such
Securities shall be paid at the redemption price, including any premium, plus
interest accrued to the Redemption Date, provided that if the Redemption
Date is after a regular interest payment record date and on or prior to the
Interest Payment Date, the accrued interest shall be payable to the Holder of
the redeemed Securities registered on the relevant record date, and provided,
further, that if a Redemption Date is a Legal Holiday, payment shall be
made on the next succeeding Business Day and no interest shall accrue for the
period from such Redemption Date to such succeeding Business Day.

 

Section 3.05.                             Deposit
of Redemption Price.

 

On or prior to 10:00 A.M., London time,
on each Redemption Date, the Company shall deposit with the Paying Agent in
immediately available funds money sufficient to pay the redemption price of and
accrued interest on all Securities to be redeemed on that date other than
Securities or portions thereof called for redemption on that date which have
been delivered by the Company to the Trustee for cancellation.

 

On and after any Redemption Date, if money
sufficient to pay the redemption price of and accrued interest on Securities
called for redemption shall have been made available in accordance with the
preceding paragraph, the Securities called for redemption will cease to accrue
interest and the only right of the Holders of such Securities will be to
receive payment of the redemption price of and, subject to the first proviso in
Section 3.04, accrued and unpaid interest on such Securities to the Redemption
Date.  If any Security called for
redemption shall not be so paid, interest will be paid, from the Redemption
Date until such redemption payment is made, on the unpaid principal of the
Security and any interest not paid on such unpaid principal, in each case, at the
rate and in the manner provided in the Securities.

 

Section 3.06.                             Securities
Redeemed in Part.

 

Upon surrender of a Security that is redeemed
in part, the Trustee shall authenticate for a Holder a new Security equal in
principal amount to the unredeemed portion of the Security surrendered.

 

Section 3.07.                             Optional
Redemption.

 

(a)           The Company may
redeem the Securities, in whole or in part, at any time on or after
June 1, 2006 at the following redemption prices (expressed as a percentage
of principal amount), together, in each case, with accrued and unpaid interest
to the Redemption Date, if redeemed during the twelve-month period beginning on
June 1 of each year listed below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2006

  	
   

  	
  102.000

  	
  %

  
	
  2007

  	
   

  	
  101.000

  	
  %

  
	
  2008 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

32

 

(b)           Notwithstanding the
foregoing, on or prior to June 1, 2006, the Company may, at its
option, use the Net Proceeds of one or more Equity Offerings to redeem for cash
up to an aggregate of 35% of the aggregate principal amount of the Securities
at a redemption price equal to 100% of the aggregate principal amount so
redeemed plus a premium equal to the interest rate per annum of the Securities
applicable on the date on which the notice of redemption is given, plus accrued
and unpaid interest thereon to the Redemption Date; provided, however,
that at least 65% of the principal amount of Securities issued under this
Indenture remains outstanding immediately after any such redemption and the
Company makes such redemption not more than 90 days after the receipt by the
Company of the proceeds of each such Equity Offering.

 

ARTICLE 4

 

COVENANTS

 

Section 4.01.                             Payment
of Securities.

 

The Company shall pay the principal of and
interest (including all Additional Interest (as defined in the Registration
Rights Agreement) as provided in the Registration Rights Agreement) on the
Securities on the dates and in the manner provided in the Securities and this
Indenture.  An installment of principal
of or interest on the Securities shall be considered paid on the date it is due
if the Trustee or Paying Agent holds on that date on or prior to the time
required by Section 2.12 money designated for and sufficient to pay the
installment.  Interest will be computed
on the basis of a 360-day year comprised of twelve 30-day months and, for
periods not involving a full calendar month, the actual number of days elapsed
(but not to exceed 30 days).  The
Company shall deliver written notice to the Trustee of any Additional Interest
owed.

 

The Company shall pay interest on overdue
principal (including post-petition interest in a proceeding under any
Bankruptcy Law), and overdue interest, to the extent lawful, at the rate
specified in the Securities.

 

Section 4.02.                             SEC
Reports.

 

(a)           The Company will
file with the SEC all information, documents and reports to be filed with the
SEC pursuant to Section 13 or 15(d) of the Exchange Act and will
provide the Trustee and the Securityholders with copies of all such
information, documents and reports within 15 days of filing thereof with the
SEC; provided that if the Company is not required to file such
information, documents or reports with the SEC, it will nonetheless continue to
furnish (i) all quarterly and annual financial information that would be
required to be contained in a filing with the SEC on forms 10-Q and 10-K if the
Company were required to file such forms, including a “Management’s Discussion
and Analysis of Financial Condition and Results of Operations” if required by
the SEC at such time and, with respect to the annual information only, a report
thereon by the Company’s certified independent accountants; and (ii) all
current reports that would be required to be filed with the SEC on Form 8-K if
the Company were required to file such reports, to the Trustee and the
Securityholders, in each case, within 15 days of the date on which filing with
the SEC would have been required.  The
Company shall also comply with the provisions of TIA § 314(a).  Delivery of such reports, information and
documents to the Trustee is for informational purposes only and the Trustee’s
receipt of such shall not constitute constructive notice of any information
contained therein or determinable from

 

33

 

information contained therein,
including the Company’s compliance with any of its covenants hereunder (as to
which the Trustee is entitled to rely exclusively on Officers’ Certificates).

 

(b)           The Company will,
upon request, provide to any Holder of Securities or any prospective transferee
of any such Holder any information concerning the Company (including financial
statements) necessary in order to permit such Holder to sell or transfer
Securities in compliance with Rule 144 and Rule 144A under the Securities Act.

 

(c)           Following the
consummation of the exchange offer contemplated by the Registration Rights
Agreement, whether or not required by the rules and regulations of the
Commission, the Company will file a copy of all such information and reports
with the SEC for public availability within the time periods specified in the
SEC’s rules and regulations (unless the SEC will not accept such a filing) and
make such information available to securities analysts and prospective
investors upon request.

 

Section 4.03.                             Waiver
of Stay, Extension or Usury Laws.

 

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

 

Section 4.04.                             Compliance
Certificate.

 

(a)           The Company shall
deliver to the Trustee, within 120 days after the end of each fiscal year, an
Officers’ Certificate (one of the signers of which shall be the principal
executive officer, principal financial officer or principal accounting officer
of the Company) stating that a review of the activities of the Company and its
Subsidiaries during such fiscal year or fiscal quarter, as the case may be, has
been made under the supervision of the signing Officers with a view to
determining whether each has kept, observed, performed and fulfilled its
obligations under this Indenture, and further stating, as to each such Officer
signing such certificate, that to the best of his or her knowledge each has
kept, observed, performed and fulfilled each and every covenant contained in
this Indenture and is not in default in the performance or observance of any of
the terms, provisions and conditions hereof (or, if a Default or Event of
Default shall have occurred, describing all or such Defaults or Events of Default
of which he or she may have knowledge and what action each is taking or
proposes to take with respect thereto) and that to the best of his or her
knowledge no event has occurred and remains in existence by reason of which
payments on account of the principal of or interest, if any, on the Securities
is prohibited or if such event has occurred, a description of the event and
what action each is taking or proposes to take with respect thereto.

 

(b)           The Company will, so
long as any of the Securities are outstanding, deliver to the Trustee, within
five Business Days of any Officer becoming aware of any Default or Event of
Default, an Officers’ Certificate specifying such Default or Event of Default
and what action the Company is taking or proposes to take with respect thereto.

 

34

 

Section 4.05.                             Taxes.

 

The Company shall, and shall cause each of
its Subsidiaries to, pay prior to delinquency all material taxes, assessments,
and governmental levies except as contested in good faith and by appropriate
proceedings.

 

Section 4.06.                             Limitation
on Incurrence of Additional Indebtedness.

 

(a) The Company will not, and will not permit
any Restricted Subsidiary of the Company to, directly or indirectly incur any
Indebtedness (including Acquired Indebtedness) other than Permitted
Indebtedness.  Notwithstanding the
foregoing limitations, the Company and its Restricted Subsidiaries may incur
Indebtedness if (i) after giving effect to the incurrence of such
Indebtedness and the receipt and application of the proceeds thereof, the
Company’s Consolidated Fixed Charge Coverage Ratio (determined on a pro forma
basis for the last four full fiscal quarters of the Company for which financial
information is available at the date of determination) is at least equal to
2:00:1; but no Restricted Subsidiary may incur Indebtedness which is not
Permitted Indebtedness unless its Consolidated Fixed Charge Coverage Ratio is
at least equal to 3:00:1; provided, however, that if the
Indebtedness which is the subject of a determination under this provision is
Acquired Indebtedness, or Indebtedness incurred in connection with the
simultaneous acquisition of any Person, business, property or assets, then such
ratio shall be determined by giving effect (on a pro forma basis, as if the
transaction had occurred at the beginning of the four quarter period) to both
the incurrence or assumption of such Acquired Indebtedness or such other
Indebtedness by the Company or such Restricted Subsidiary and the inclusion in
the Company’s or such Restricted Subsidiary’s Consolidated EBITDA of the
Consolidated EBITDA of the acquired Person, business, property or assets; and provided,
further, that in the event that the Consolidated EBITDA of the acquired
Person, business, property or assets reflects an operating loss, no amounts
shall be deducted from the Company’s or such Restricted Subsidiary’s
Consolidated EBITDA in making the determinations described above and
(ii) no Default or Event of Default shall have occurred and be continuing
at the time or as a consequence of the incurrence of such Indebtedness.

 

(b) The Company will not, and will not permit
any of its Restricted Subsidiaries to, directly or indirectly incur any
Indebtedness which by its terms (or by the terms of any agreement governing
such Indebtedness) is expressly subordinated in right of payment to any other
Indebtedness of the Company or such Restricted Subsidiary, as the case may be,
unless such Indebtedness is also by its terms (or by the terms of any agreement
governing such Indebtedness) made expressly subordinate to the Securities, as
the case may be, to the same extent and in the same manner as such Indebtedness
is subordinated to other Indebtedness of the Company or such Restricted
Subsidiary, as the case may be.

 

(c) 
For purposes of this Section 4.06, the phrase “subordinate in right
of payment” means debt subordination only and not lien subordination, and
accordingly, (i) unsecured indebtedness shall not be deemed to be
subordinate in right of payment to secured indebtedness merely by virtue of the
fact that it is unsecured and (ii) junior liens, second liens and other
contractual arrangements that provide for priorities among holders of the same
or different issues of indebtedness with respect to any collateral or the proceeds
of collateral shall not constitute subordination in right of payment.

 

Section 4.07.                             Limitation
on Preferred Stock of Restricted Subsidiaries.

 

The Company will not permit any Restricted
Subsidiary to issue any Preferred Stock (except to the Company or to a
Restricted Subsidiary) or permit any Person (other than the Company or a
Restricted Subsidiary) to hold any such Preferred Stock unless the Company or
such Restricted 

 

35

 

Subsidiary would be entitled to
incur or assume Indebtedness in compliance with Section 4.06 in an
aggregate principal amount equal to the aggregate liquidation value of the
Preferred Stock to be issued.

 

Section 4.08.                             Limitation on
Restricted Payments.

 

(a)           The Company will
not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly, make any Restricted Payment if at the time of such Restricted
Payment and immediately after giving effect thereto:

 

(i)            any Default or
Event of Default shall have occurred and be continuing; or

 

(ii)           the Company could
not incur $1.00 of additional Indebtedness (other than Permitted Indebtedness)
in compliance with Section 4.06; or

 

(iii)          the aggregate
amount of Restricted Payments declared or made after the Issue Date (the amount
expended for such purposes, if other than in cash, being the fair market value
of such property as determined by the Board of Directors of the Company in good
faith) exceeds the sum of (A) 50% of the Company’s Consolidated Net Income
for the period (taken as one accounting period) commencing with the first full
fiscal quarter of the Company which commenced after the Issue Date to and
including the fiscal quarter of the Company ended immediately prior to the date
of each calculation (or in the event Consolidated Net Income is a deficit minus
100% of such deficit), plus (B) 100% of the aggregate Net Proceeds and the
fair market value of securities or other property received by the Company from
the issue or sale, after the Issue Date (other than Net Proceeds to the extent
such Net Proceeds have been used to incur Indebtedness pursuant to clause (xi)
of the definition of Permitted Indebtedness), of Qualified Capital Stock (other
than Capital Stock of the Company issued to any Restricted Subsidiary of the
Company) of the Company or any Indebtedness or other securities of the Company
convertible into or exercisable or exchangeable for Qualified Capital Stock of
the Company which have been so converted or exercised or exchanged, as the case
may be, plus (C) without duplication, the sum of:  (1) the aggregate Net Proceeds and the
fair market value of securities or other property received by the Company with
respect to Investments (other than Permitted Investments) made subsequent to
the Issue Date whether through interest payments, principal payments, dividends
or other distributions or payments; (2) the aggregate Net Proceeds and the
fair market value of securities or other property received by the Company or
any of its Restricted Subsidiaries from the disposition of all or any portion
of such Investments (other than to a Subsidiary of the Company); and
(3) upon redesignation of an Unrestricted Subsidiary as a Restricted
Subsidiary, the fair market value of such Subsidiary; provided, however,
that the sum of clauses (1), (2) and (3) of this subclause (C) shall not
exceed the aggregate amount of all such Investments made subsequent to the
Issue Date; plus (D) $25,000,000, provided, that the amount of
Restricted Payments permitted by this clause (D) shall not be reduced by
any negative amounts that occur under clause (A) above.

 

(b)           Notwithstanding the
foregoing, if no other Default or Event of Default shall have occurred and be
continuing or shall occur as a consequence thereof, the provisions set forth in
the immediately preceding paragraph will not prohibit (A) payments with
respect to the purchase or redemption of Capital Stock or Subordinated Debt of
the Company made by exchange for, or out of the proceeds of the substantially
concurrent sale (other than to a Subsidiary of the Company or an Emerging
Market Subsidiary) of, Qualified Capital Stock; (B) payments in respect of
any redemption, repurchase, acquisition, cancellation or other retirement for
value of shares of Capital Stock of the Company

 

36

 

or options, stock appreciation
or similar rights, in each case held by officers, directors or employees of the
Company or any of its Subsidiaries (or former officers, directors or employees)
(or their estates or beneficiaries under their estates) or by an employee
benefit plan, upon death, disability, retirement or termination of employment
of any such Person pursuant to the terms of any employee benefit plan or any
other agreement under which shares of Capital Stock or stock appreciation or
similar rights were issued or acquired, and the purchase of shares of Capital
Stock by the Company or any Restricted Subsidiary for the purpose of
contributing such shares to any employee benefit plan (provided, that
all such payments and purchases referred to in this clause (B) may not exceed
$2,000,000 in any calendar year, with any unused amounts in any calendar year
being carried over to the next succeeding calendar year; provided that
in no event shall such amount exceed $4,000,000 in any single calendar year);
(C) the payment of any dividend within 60 days after the date of its
declaration if such dividend could have been paid on the date of its
declaration in compliance with the foregoing provisions; (D) any purchase
or defeasance of Subordinated Debt upon a Change of Control or an Asset Sale to
the extent required by this Indenture or other agreement or instrument pursuant
to which such Subordinated Debt was issued, but only if the Company (i) in
the case of a Change of Control, has complied with its obligations under
Section 4.13 or (ii) in the case of an Asset Sale, has applied the
Asset Sale Proceeds from such Asset Sale in accordance with Section 4.09;
(E) on or after July 31, 2008, payments of regular cash dividends on
the Convertible Preferred Stock, payable quarterly in arrears, at the rate per
annum set forth in the certificate of designations relating to the Convertible
Preferred Stock, as in effect on the Issue Date; or (F) the repurchase,
redemption or other acquisition or retirement for value of the Senior
Subordinated Notes with the Asset Sale Proceeds from the Permitted Denver
Disposition within 180 days of the consummation of the Permitted Denver
Disposition.  Each Restricted Payment
made or paid in accordance with this paragraph (b) shall be counted
(without duplication) for purposes of computing amounts utilized for Restricted
Payments pursuant to clause (a)(iii) of the immediately preceding
paragraph.  No payments made or paid
pursuant to clause (C) of this paragraph shall be counted for purposes of
computing amounts utilized for Restricted Payments pursuant to clause
(a)(iii) of the immediately preceding paragraph to the extent such amount
was already counted for such purposes.

 

Section 4.09.                             Limitation
on Certain Asset Sales.

 

(a)           The Company will
not, and will not cause or permit any of its Restricted Subsidiaries to,
consummate an Asset Sale or series of related Asset Sales unless (i) the
Company or such Restricted Subsidiary, as the case may be, receives
consideration at least equal to the fair market value thereof on the date the
Company or Restricted Subsidiary (as applicable) entered into the agreement to
consummate such Asset Sale (as determined in good faith by the Company’s Board
of Directors, and evidenced by a Board Resolution of such Board of Directors);
(ii) not less than 75% of the consideration received by the Company or its
Restricted Subsidiaries, as the case may be, is in the form of cash or Cash
Equivalents other than in the case where the Company is exchanging all or
substantially all of the assets or one or more properties operated by the
Company (including by way of the transfer of capital stock) for all or substantially
all of the assets (including by way of the transfer of capital stock)
constituting one or more properties operated by another Person, provided
that at least 75% of the consideration received by the Company (50% with
respect to Emerging Market Subsidiaries) in such exchange, other than the
properties, is in the form of cash or Cash Equivalents; and (iii) the
Asset Sale Proceeds received by the Company or such Restricted Subsidiary are
applied, at its option, (a) first, to the extent the Company elects or is
required, to permanently reduce (1) Obligations under any Credit Agreement
(and to correspondingly reduce commitments with respect thereto),
(2) Indebtedness of the Company that ranks pari passu with the Securities and is secured by a Lien on
the assets subject to such Asset Sale, which Lien is permitted by this
Indenture, (3) any Indebtedness of any Restricted

 

37

 

Subsidiary (other than
Indebtedness owed to the Company or an Affiliate of the Company) or
(4) any other Indebtedness of the Company (other than Subordinated Debt); provided that if the Company shall so
reduce Obligations under such Indebtedness set forth in this clause (4),
it will equally and ratably reduce Obligations under the Securities by making
an offer (in accordance with the procedures set forth below for an Excess
Proceeds Offer) to all Holders of Securities to purchase at a purchase price
equal to 100% of the principal amount thereof, plus accrued and unpaid interest
and Additional Interest, if any, the pro
rata principal amount of Securities, and, in each case, within
270 days following the receipt of the Asset Sales Proceeds from any Asset
Sale; (b) second, to the extent of the balance of Asset Sale Proceeds
after application as described above, to the extent the Company elects, to make
an investment in assets (including Capital Stock or other securities purchased
in connection with the acquisition of Capital Stock or property of another
Person) used or useful in businesses similar or ancillary to the business of
the Company or Restricted Subsidiary as conducted at the time of such Asset
Sale, provided that such Investment occurs or the Company or a
Restricted Subsidiary enters into contractual commitments to make such
investment, subject only to customary conditions (other than the obtaining of
financing), on or prior to the 270th day following receipt of such Asset Sale
Proceeds (the “Reinvestment Date”) and Asset Sales Proceeds contractually
committed are so applied within 360 days following the receipt of such Asset
Sale Proceeds; and/or (c) third, if on the Reinvestment Date with respect
to any Asset Sale, the Available Asset Sale Proceeds exceed $10,000,000, the
Company shall apply an amount equal to such Available Asset Sale Proceeds to an
offer to repurchase the Securities, at a purchase price in cash equal to 100%
of the principal amount thereof plus accrued and unpaid interest, if any, to
the date of repurchase (an “Excess Proceeds Offer”).

 

(b)           If the Company is
required to make an Excess Proceeds Offer, the Company shall mail, within 30
days following the Reinvestment Date, a notice to the registered holders stating,
among other things:  (1) that such
holders have the right to require the Company to apply the Available Asset Sale
Proceeds to repurchase such Securities at a purchase price in cash equal to
100% of the principal amount thereof plus accrued and unpaid interest, if any,
to the date of purchase; (2) the purchase date (the “Purchase Date”),
which shall be no earlier than 30 days and not later than 60 days from the date
such notice is mailed; (3) the instructions, determined by the Company,
that each holder must follow in order to have such Securities repurchased; and
(4) the calculations used in determining the amount of Available Asset
Sale Proceeds to be applied to the repurchase of such Securities.  The Excess Proceeds Offer shall remain open
for a period of 20 Business Days following its commencement (the “Offer Period”).  The notice, which shall govern the terms of
the Excess Proceeds Offer, shall also state:

 

(1)           that the Excess
Proceeds Offer is being made pursuant to this Section 4.09 and the length
of time the Excess Proceeds Offer will remain open;

 

(2)           the purchase price
and the Purchase Date;

 

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

 

(4)           that any Security
accepted for payment pursuant to the Excess Proceeds Offer shall cease to
accrue interest on and after the Purchase Date;

 

(5)           that Holders
electing to have a Security purchased pursuant to any Excess Proceeds Offer
will be required to surrender the Security, with the form entitled “Option of
Holder to Elect Purchase” on the reverse of the Security completed, to the
Company, a depositary,

 

38

 

if appointed
by the Company, or a Paying Agent at the address specified in the notice at
least three Business Days before the Purchase Date;

 

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

 

(7)           that, if the
aggregate principal amount of Securities surrendered by Holders exceeds the
Available Asset Sale Proceeds, the Company shall select the Securities to be
purchased on a pro rata basis (with such adjustments as may be deemed
appropriate by the Company so that only Securities in denominations of €5,000,
or integral multiples of €1,000, shall be purchased); and

 

(8)           that Holders whose
Securities were purchased only in part will be issued new Securities equal in
principal amount to the unpurchased portion of the Securities surrendered.

 

(c)           On or before the
Purchase Date, the Company shall, to the extent lawful, accept for payment, on
a pro rata basis to the extent necessary, Securities or portions thereof
tendered pursuant to the Excess Proceeds Offer, deposit with the Paying Agent
U.S. legal tender sufficient to pay the purchase price plus accrued interest,
if any, on the Securities to be purchased and deliver to the Trustee an
Officers’ Certificate stating that such Securities or portions thereof were
accepted for payment by the Company in accordance with the terms of this
Section 4.09.  The Paying Agent
shall promptly (but in any case not later than 5 days after the Purchase Date)
mail or deliver to each tendering Holder an amount equal to the purchase price
of the Security tendered by such Holder and accepted by the Company for
purchase, and the Company shall promptly issue a new Security, and the Trustee
shall authenticate and mail or make available for delivery such new Security to
such Holder equal in principal amount to any unpurchased portion of the
Security surrendered.  Any Security not
so accepted shall be promptly mailed or delivered by the Company to the Holder
thereof.  The Company will publicly
announce the results of the Excess Proceeds Offer on the Purchase Date.  If an Excess Proceeds Offer is not fully
subscribed, the Company may retain that portion of the Available Asset Sale
Proceeds not required to repurchase Securities.

 

(d)           Notwithstanding the
foregoing:

 

(i)            the Company and any
Restricted Subsidiary of the Company may, in the ordinary course of business,
convey, sell, lease, transfer or otherwise dispose of assets and license brand
names in the ordinary course of business;

 

(ii)           the Company may
convey, sell, lease, transfer or otherwise dispose of assets pursuant to and in
accordance with Section 5.01;

 

(iii)          the Company and its
Restricted Subsidiaries may (a) sell damaged, worn out or other obsolete
property in the ordinary course of business or other property no longer
necessary for the proper conduct of the business or (b) abandon such
property if it cannot, through reasonable efforts, be sold;

 

(iv)          the Company and its
Restricted Subsidiaries may consummate the Permitted Denver Disposition; and

 

39

 

(v)           the provisions of
this Section 4.09 shall apply only with respect to the amount by which the
aggregate Asset Sale Proceeds from all conveyances, sales, leases, transfers
and other dispositions of assets by the Company and its Restricted Subsidiaries
not otherwise permitted exceeds $10,000,000 in any fiscal year of the Company.

 

Section 4.10.                             Limitation
on Transactions with Affiliates.

 

(a)           The Company will
not, and will not cause or permit any of its Restricted Subsidiaries to, directly
or indirectly, enter into any transaction or series of related transactions
(including, without limitation, the sale, purchase, exchange or lease of
assets, property or services) with any Affiliate of the Company (an “Affiliate
Transaction”) or extend, renew, waive or otherwise modify the terms of any
Affiliate Transaction entered into prior to the Issue Date unless (i) such
Affiliate Transaction is between or among the Company and its Restricted
Subsidiaries; or (ii) such Affiliate Transaction is entered into in good
faith and the terms of such Affiliate Transaction are fair and reasonable to
the Company or such Restricted Subsidiary, as the case may be.  In any Affiliate Transaction involving an
amount or having a value in excess of $5,000,000 which is not permitted under
clause (i) above, the Company must obtain a Board Resolution of the Board
of Directors determining that such Affiliate Transaction complies with
clause (ii) above.  In
transactions with a value in excess of $10,000,000 which are not permitted
under clause (i) above, the Company must obtain a written opinion as
to the fairness of such a transaction, from a financial point of view to the
Company or such Restricted Subsidiary, as the case may be, from an independent
accounting, appraisal or investment banking firm.

 

(b)           Notwithstanding the
foregoing, the provisions set forth in paragraph (a) above will not
apply to:  (i) Restricted Payments
that are not prohibited under Section 4.08; (ii) transactions
permitted by, and complying with, the provisions described under
Section 5.01; (iii) transactions in the ordinary course of business
(including expense advances) between the Company or any of its Restricted
Subsidiaries or Unrestricted Subsidiaries, on the one hand, and any employee
thereof, on the other hand; (iv) employment contracts existing on the
Issue Date and employment contracts approved by the Board of Directors of the
Company the terms of which are consistent with past practice; (v) the
granting and performance of registration rights for shares of Capital Stock of
the Company under a written registration rights agreement approved by a
majority of directors of the Company that are disinterested with respect to
such transaction; (vi) transactions with Affiliates solely in their capacity
as holders of Indebtedness or Capital Stock of the Company or any of its
Restricted Subsidiaries or Unrestricted Subsidiaries, where such Affiliates are
treated no more favorably than holders of such Indebtedness or such Capital
Stock generally; (vi) any Permitted Investments; (viii) reasonable
fees and compensation paid to, and indemnity provided on behalf of, officers,
directors, employees or consultants of the Company or any Subsidiary of the Company
as determined in good faith by the Company’s Board of Directors;
(ix) transactions exclusively between or among the Company and any of its
Subsidiaries, provided such transactions are not otherwise prohibited by
this Indenture; (x) any agreement as in effect as of the Issue Date or any
amendment thereto or any transaction contemplated thereby (including pursuant
to any amendment thereto) in any replacement agreement thereto so long as any
such amendment or replacement agreement is not more disadvantageous to the
holders of the Securities in any material respect than the original agreement
as in effect on the Issue Date; (xi) any payment, issuance of securities
or other payments, awards or grants, in cash or otherwise, pursuant to, or the
funding of, employment arrangements and Plans approved by the Board of Directors;
(xii) the grant of stock options or similar rights to employees and
directors of the Company and its Subsidiaries (or any adjustment or amendment
thereto) pursuant to Plans and employment contracts and stock option, stock
bonus, restricted stock and similar agreements approved by the Board of
Directors; (xiii) loans or advances to officers, directors or employees of
the Company or its Restricted Subsidiaries 

 

40

 

not in excess of $5,000,000 at
any one time outstanding; and (xiv) the payment to the Permitted Holders
and any of their Affiliates of annual management, consulting, monitoring and
advisory fees in an aggregate amount in any fiscal year not to exceed
$2.5 million and related reasonable expenses.

 

Section 4.11.                             Payments
for Consent.

 

Neither the Company nor any of its
Subsidiaries shall, directly or indirectly, pay or cause to be paid any
consideration, whether by way of interest, fee or otherwise, to any Holder of
any Securities for or as an inducement to any consent, waiver or amendment of
any of the terms or provisions of this Indenture or the Securities unless such
consideration is offered to be paid or agreed to be paid to all Holders of the
Securities which so consent, waive or agree to amend in the time frame set
forth in solicitation documents relating to such consent, waiver or agreement.

 

Section 4.12.                             Corporate
Existence.

 

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

 

Section 4.13.                             Change
of Control.

 

(a)           The Company shall
notify the Trustee within five Business Days after the Company knows, or
reasonably should know, of the occurrence of a Change of Control.  Within 15 Business Days after the Company
knows or reasonably should know, of the occurrence of each Change of Control,
the Company will make an offer to purchase (the “Change of Control Offer”) the
outstanding Securities at a purchase price equal to 101% of the principal
amount thereof plus any accrued and unpaid interest thereon to the Change of
Control Payment Date (such applicable purchase price being hereinafter referred
to as the “Change of Control Purchase Price”) in accordance with the procedures
set forth in this Section 4.13.

 

(b)           The Company will
within 15 days after it knows, or reasonably should know, of the Change of
Control (i) cause a notice of the Change of Control Offer to be sent at
least once to the Dow Jones News Service or similar business news service in
the United States and (ii) send by first-class mail, postage prepaid, to
the Trustee and to each Holder of the Securities, at the address appearing in
the register maintained by the Registrar of the Securities, a notice stating:

 

(i)            that the Change of
Control Offer is being made pursuant to this Section 4.13 and that all
Securities tendered will be accepted for payment, and otherwise subject to the
terms and conditions set forth herein;

 

(ii)           the Change of
Control Purchase Price and the purchase date (which shall be a Business Day no
earlier than 20 Business Days nor more than 60 Business Days from the date such
notice is mailed (the “Change of Control Payment Date”));

 

41

 

(iii)          that any Security
not tendered will continue to accrue interest;

 

(iv)          that, unless the
Company defaults in the payment of the Change of Control Purchase Price, any
Securities accepted for payment pursuant to the Change of Control Offer shall
cease to accrue interest after the Change of Control Payment Date;

 

(v)           that Holders accepting
the offer to have their Securities purchased pursuant to a Change of Control
Offer will be required to surrender the Securities to the Paying Agent at the address
specified in the notice prior to the close of business on the Business Day
preceding the Change of Control Payment Date;

 

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

 

(vii)         that Holders whose
Securities are being purchased only in part will be issued new Securities equal
in principal amount to the unpurchased portion of the Securities surrendered, provided
that each Security purchased and each such new Security issued shall be in an
original principal amount in denominations of €5,000 and integral multiples of
€1,000;

 

(viii)        a summary of any
other procedures that a holder must follow to accept a Change of Control Offer
or effect withdrawal of such acceptance; and

 

(ix)           the name and
address of the Paying Agent.

 

(c)           On the Change of
Control Payment Date, the Company shall, to the extent lawful, (i) accept
for payment Securities or portions thereof tendered pursuant to the Change of
Control Offer, (ii) deposit with the Paying Agent money sufficient to pay
the purchase price of all Securities or portions thereof so tendered and
(iii) deliver or cause to be delivered to the Trustee Securities so
accepted together with an Officers’ Certificate stating the Securities or
portions thereof tendered to the Company. 
The Paying Agent shall promptly mail to each Holder of Securities so
accepted payment in an amount equal to the purchase price for such Securities,
and the Company shall execute and issue, and the Trustee shall promptly
authenticate and mail to such Holder, a new Security equal in principal amount
to any unpurchased portion of the Securities surrendered; provided that
each such new Security shall be issued in an original principal amount in
denominations of €5,000 and integral multiples of €1,000.

 

(d)           The Company will
comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent such laws and
regulations are applicable in connection with the purchase of Securities
pursuant to a Change of Control Offer.

 

Section 4.14.                             Maintenance
of Office or Agency.

 

The Company shall maintain an office or
agency as provided in Section 2.03 where Securities may be surrendered for
registration of transfer or exchange or for presentation for payment and where
notices and demands to or upon the Company in respect of the Securities and
this Indenture

 

42

 

may be served.  The Company shall give prompt written notice
to the Trustee of the location, and any change in the location, of such office
or agency.  If at any time the Company
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the address of the Trustee as set
forth in Section 11.02.

 

The Company may also from time to time
designate one or more other offices or agencies where the Securities may be
presented or surrendered for any or all such purposes and may from time to time
rescind such designations.  The Company
shall give prompt written notice to the Trustee of such designation or
rescission and of any change in the location of any such other office or
agency.

 

The Company hereby initially designates the
Corporate Trust Office of the Trustee set forth in Section 11.02 as such
office of the Company.

 

Section 4.15.                             Limitation
on Liens.

 

The Company will not, and will not permit any
Restricted Subsidiary to, directly or indirectly, create, incur, assume or
suffer to exist any Lien (other than Permitted Liens) upon any of its property
or assets, whether now owned or hereafter acquired, that secures Subordinated
Debt or Pari Passu Debt on any asset or property of the Company or any
Restricted Subsidiary, or any income or profits therefrom, or assign or convey
any right to receive income therefrom, unless: 
(1) in the case of Liens securing Indebtedness subordinated to the
Securities, the Securities are secured by a Lien on such property, assets or
proceeds that is senior in priority to such Liens; or (2) in all other
cases, the Securities are equally and ratably secured, except that the
foregoing shall not apply to:  (i) Liens
securing the Securities, (ii) Liens securing Indebtedness under any Credit
Agreement in an aggregate principal amount not to exceed the aggregate
principal amount of Indebtedness permitted to be incurred pursuant to
clause (ii) of the definition of “Permitted Indebtedness,” and (iii)
Permitted Liens.

 

Section 4.16.                             Limitation
on Emerging Market Subsidiaries.

 

(i) The Company or a Wholly-Owned Subsidiary
must designate Persons at all times constituting a majority of the directors
(or members of the governing body) of, and at all times have the power to
direct the management and policies of, each Emerging Market Subsidiary;
(ii) the Company will not, and will not permit any of its Subsidiaries to,
directly or indirectly own any Capital Stock or other ownership interests in an
Emerging Market Subsidiary unless the Company and its Subsidiaries or Emerging
Market Subsidiaries own, in the aggregate, Capital Stock or other ownership
interests such that the Emerging Market Subsidiary at all times satisfies the
conditions necessary for a Person to be a Subsidiary of the Company under the
definition of “Subsidiary” in this Indenture; (iii) the Company will not
permit any Emerging Market Subsidiary to incur Indebtedness or issue
Disqualified Capital Stock (other than Indebtedness or Disqualified Capital
Stock issued to or held by a Subsidiary of such Emerging Market Subsidiary or
to another Emerging Market Subsidiary or any Subsidiary of another Emerging
Market Subsidiary) if, immediately after giving effect thereto (including the
redemption, repurchase, repayment or retirement of Indebtedness or Disqualified
Capital Stock with the proceeds thereof), the aggregate outstanding principal
amount of Indebtedness and liquidation or redemption value (whichever is the
greater) of Disqualified Capital Stock (other than Capital Stock issued to the
Company or a Restricted Subsidiary and other than Indebtedness that constitutes
Invested Capital) of all Emerging Market Subsidiaries on a combined
consolidated basis would exceed the greater of (A) $50,000,000 and
(B) the product of (x) the greater of (A) the combined consolidated
stockholders’ equity (calculated in accordance with GAAP) of all Emerging
Market Subsidiaries and

 

43

 

(B) the aggregate amount,
determined on a combined consolidated basis, of Invested Capital (whether by
the Company or a Subsidiary of the Company or any other Person or Persons) in
all Emerging Market Subsidiaries and (y) 2.5; (iv) the Company will not
permit any Emerging Market Subsidiary to directly or indirectly (A) make any
material Investment or (B) engage to any material extent in, any line or lines
of business activity, in each case, other than in a Related Business; and
(v) each Emerging Market Subsidiary will be deemed to be a Restricted Subsidiary
for purposes of Section 4.09 and the definitions as applicable thereto but
only to the extent such definitions are used therein and only to the extent not
specifically excluded therefrom.

 

Section 4.17.                             Limitation
on Restricted Subsidiary Dividends; Restriction on Sale and Issuance of
Subsidiary Stock.

 

The Company may not, and may not permit any
of its Restricted Subsidiaries to, directly or indirectly, create or assume any
consensual encumbrance or restriction on the ability of any Restricted
Subsidiary of the Company to pay dividends or make other distributions on the
Capital Stock of any Restricted Subsidiary of the Company or pay any obligation
to the Company or any of its Restricted Subsidiaries that is the parent of such
Restricted Subsidiary or otherwise transfer assets or make or pay loans or advances
to the Company or any of its Restricted Subsidiaries that is the parent of such
Restricted Subsidiary (collectively, “Payment Restrictions”), except Payment
Restrictions existing under (i) this Indenture and the Securities and the
Senior Subordinated Notes or Refinancing Indebtedness incurred to refinance the
Securities or the Senior Subordinated Notes; provided, that such
encumbrances and restrictions are no more restrictive than those contained in
this Indenture, as the case may be, as in effect on the Issue Date,
(ii) Indebtedness incurred under clause (ii) of the definition of
“Permitted Indebtedness,” or Indebtedness (other than Permitted Indebtedness)
incurred under Section 4.06, provided, that such encumbrances and
restrictions are no more restrictive than those set forth in the Original
Credit Agreement as in effect on the Issue Date, (iii) Indebtedness
incurred under clause (xi) of the definition of Permitted Indebtedness or by
Foreign Restricted Subsidiaries in accordance with Section 4.06, provided,
that any such encumbrances or restrictions are ordinary and customary with respect
to the type of Indebtedness being incurred under the relevant circum-stances
and do not, in the good faith judgment of the Board of Directors of the
Company, materially impair the Company’s ability to make payments on the
Securities, (iv) Indebtedness existing on the Issue Date or Refinancing
Indebtedness incurred to refinance such existing Indebtedness; provided,
that such encumbrances and restrictions are no more restrictive than those
contained in the agreements governing Indebtedness existing on the Issue Date
as in effect on the Issue Date, (v) leasing agreements as in effect on the
Issue Date and (vi) any agreement of a Person acquired by the Company or a
Restricted Subsidiary of the Company, which restrictions existed at the time of
acquisition, were not put in place in anticipation of such acquisition and are
not applicable to any Person or property, other than the Person or any property
of the Person so acquired. 
Notwithstanding the foregoing, (a) customary provisions restricting
subletting or assignment of any lease or license entered into the ordinary
course of business consistent with past practice and (b) Liens permitted
under Section 4.15 on assets securing Indebtedness incurred in accordance
with Section 4.06 shall not in and of themselves be considered a Payment
Restriction.  The Company will not sell,
and will not permit any of its Restricted Subsidiaries to issue or sell, any
shares of Capital Stock of any Restricted Subsidiary of the Company to any
Person other than the Company or a Restricted Subsidiary of the Company; provided,
that the Company and its Restricted Subsidiaries may sell all (but not less than
all) of the outstanding shares of Capital Stock of any Restricted Subsidiary of
the Company held by them in a single transaction or a series of substantially
contemporaneous transactions if the provisions described under
Section 4.09 are complied with. 
Notwithstanding the foregoing, the issuance or sale of shares of Capital
Stock of any Restricted Subsidiary of the Company shall not violate the
provisions above if (i) such shares are issued or sold

 

44

 

in connection with (x) the
formation or capitalization of a Restricted Subsidiary which, at the time of
such issuance or sale and after giving effect thereto, is a Joint Venture
Subsidiary or (y) a single transaction or a series of substantially
contemporaneous transactions whereby such Restricted Subsidiary becomes a
Restricted Subsidiary of the Company by reason of the acquisition of securities
or assets from another Person or (ii) such shares constitute directors’
qualifying shares not exceeding one percent of the outstanding Capital Stock of
such Restricted Subsidiary.

 

ARTICLE 5

 

SUCCESSOR
CORPORATION

 

Section 5.01.                             Limitation
on Consolidation, Merger and Sale of Assets.

 

The Company will not, in a single transaction
or series of related transactions, consolidate with or merge with or into, or
sell, assign, transfer, lease, convey or otherwise dispose of all or
substantially all of its assets to, another Person unless (i) either
(1) the Company is the survivor of such merger, consolidation, sale,
assignment, transfer, lease, conveyance or other disposition, or (2) the
surviving or transferee Person is a corporation, partnership or trust organized
and existing under the laws of the United States, any state thereof or the
District of Columbia and such surviving or transferee Person expressly assumes
by supplemental indenture all the obligations of the Company under the
Securities and this Indenture; (ii) immediately after giving effect to
such transaction and the use of proceeds therefrom (on a pro forma basis,
including any Indebtedness incurred or anticipated to be incurred in connection
with such transaction), the Company or the surviving or transferee Person is
able to incur $1.00 of additional Indebtedness (other than Permitted
Indebtedness) in compliance with Section 4.06; (iii) immediately
after giving effect to such transaction (including any Indebtedness incurred or
anticipated to be incurred in connection with the transaction) no Default or
Event of Default has occurred and is continuing; and (iv) the Company has
delivered to the Trustee an Officers’ Certificate and Opinion of Counsel, each
stating that such consolidation, merger, sale, assignment, transfer, lease or
other disposition complies with this Indenture, that the surviving Person
agrees by supplemental Indenture to be bound thereby, and that all conditions
precedent in this Indenture relating to such transaction have been
satisfied.  For purposes of the
foregoing, the transfer (by lease, assignment, sale or otherwise, in a single
transaction or series of related transactions) of all or substantially all of
the properties and assets of one or more Restricted Subsidiaries the Capital
Stock of which constitutes all or substantially all of the properties and
assets of the Company will be deemed to be the transfer of all or substantially
all of the properties and assets of the Company.  Notwithstanding the foregoing clauses (ii) and (iii), but
subject to clauses (i) and (iv) thereof, (a) the Company may
consolidate with, merge into or transfer all or part of its properties and
assets to any Restricted Subsidiary so long as all assets of the Company
immediately prior to such transaction are owned by such Restricted Subsidiary
immediately after the consummation thereof, and (b) the Company may merge
with an Affiliate that is a corporation that has no material assets or
liabilities and that was incorporated solely for the purpose of (A)
reincorporating the Company in the same or another jurisdiction of the United
States, any state thereof or the District of Columbia or (B) the creation of a
holding company of the Company.

 

Section 5.02.                             Successor
Person Substituted.

 

Upon any consolidation or merger, or any
transfer of all or substantially all of the assets of the Company in accordance
with Section 5.01 above, the successor corporation formed by such
consolidation or into which the Company is merged or to which such transfer is
made shall succeed to,

 

45

 

and be substituted for, and may
exercise every right and power of the Company under this Indenture with the
same effect as if such successor corporation had been named as the Company
herein, and thereafter the predecessor corporation shall be relieved of all
obligations and covenants under this Indenture and the Securities.

 

ARTICLE 6

 

DEFAULTS AND
REMEDIES

 

Section 6.01.                             Events
of Default.

 

An “Event of Default” occurs if

 

(1)           there is a failure
to pay the principal or premium, if any, on any Securities when such principal
becomes due and payable, at maturity, upon acceleration, redemption or
otherwise;

 

(2)           there is a failure
to pay interest on any Security when the same becomes due and payable and such
Default continues for a period of 30 days;

 

(3)           the Company defaults
in the observance or performance of any other covenant or agreement in the
Securities or this Indenture which default continues for a period of
60 days after the Company receives written notice thereof specifying the
default from the Trustee or the Holders of at least 25% in aggregate principal
amount of outstanding Securities;

 

(4)           there is a default
in the payment at final maturity of principal in an aggregate amount of
$15,000,000 or more with respect to any Indebtedness of the Company or any
Restricted Subsidiary thereof which default shall not be cured, waived or
postponed pursuant to an agreement with the holders of such Indebtedness within
60 days after written notice, or the acceleration of any such Indebtedness
aggregating $15,000,000 or more which acceleration shall not be rescinded or
annulled within 30 days after written notice to the Company of such
Default by the Trustee or any Holder;

 

(5)           any final judgment
or judgments which can no longer be appealed for the payment of money in excess
of $15,000,000 shall be rendered against the Company or any Restricted
Subsidiary thereof, and shall not be discharged for a period of 60 consecutive
days during which a stay of enforcement of such judgment shall not be in
effect;

 

(6)           the Company or any
Significant Restricted Subsidiary pursuant to or within the meaning of any
Bankruptcy Law:

 

(A)          commences
a voluntary case,

 

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

 

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

 

46

 

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

 

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

 

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

 

(A)          is
for relief against the Company or any Significant Restricted Subsidiary in an
involuntary case,

 

(B)           appoints
a Custodian of the Company or any Significant Restricted Subsidiary or for all
or substantially all of the property of the Company or any Significant
Restricted Subsidiary, or

 

(C)           orders
the liquidation of the Company or any Significant Restricted Subsidiary,

 

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

 

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

 

The Trustee may withhold notice to the Holders
of the Securities of any Default (except in payment of principal or premium, if
any, or interest on the Securities) if the Trustee considers it to be in the
best interest of the Holders of the Securities to do so.

 

Section 6.02.                             Acceleration.

 

Upon the happening of any Event of Default
specified in Section 6.01, the Trustee may, and the Trustee upon the
request of Holders of at least 25% in aggregate principal amount of the
Securities shall or the Holders of at least 25% in aggregate principal amount
of outstanding Securities may, declare the principal of and accrued but unpaid
interest, if any, on all the Securities to be due and payable by notice in
writing to the Company and the Trustee specifying the respective Event of
Default and that it is a “notice of acceleration” (the “Acceleration Notice”),
and the same shall become immediately due and payable.  If an Event of Default described under
clauses (6) or (7) of Section 6.01 with respect to the Company occurs and
is continuing, then such amount will ipso facto become and be immediately due
and payable without any declaration or other act on the part of the Trustee or
any Holder of Securities; provided, however, that at any time
after a declaration of acceleration with respect to the Securities, the Holders
of a majority in principal amount of the Securities then outstanding (by notice
to the Trustee) may rescind and cancel such declaration and its consequences if
(i) the rescission would not conflict with any judgment or decree of a
court of competent jurisdiction, (ii) all existing Events of Default have
been cured or waived except nonpayment of principal or interest on the
Securities that has become due solely by such declaration of acceleration,
(iii) to the extent the payment of such interest is lawful, interest (at
the same rate specified in the Securities) on overdue installments of interest
and overdue principal which has become due otherwise than by such declaration
of acceleration has been paid, (iv) the Company has paid the Trustee its
reasonable compensation and reimbursed the Trustee for its expenses,
disbursements and advances and (v) in the event of the cure or waiver of a
Default or Event of Default (with respect to the Company) of the type described
in Section 6.01(6) or (7), the Trustee has received an Officers’
Certificate and an Opinion of Counsel that

 

47

such Default or Event of Default has been
cured or waived.  The Holders of a
majority in principal amount of the Securities may waive any existing Default
or Event of Default under this Indenture, and its consequences, except a
default in the payment of the principal of or interest on any Securities.

 

Section 6.03.                             Other
Remedies.

 

If an Event of Default occurs and is
continuing, the Trustee may pursue any available remedy by proceeding at law or
in equity to collect the payment of principal of, or premium, if any, and
interest on the Securities or to enforce the performance of any provision of
the Securities or this Indenture and may take any necessary action requested of
it as Trustee to settle, compromise, adjust or otherwise conclude any
proceedings to which it is a party.

 

The Trustee may maintain a proceeding even if
it does not possess any of the Securities or does not produce any of them in
the proceeding.  A delay or omission by
the Trustee or any Securityholder 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 6.04.                             Waiver
of Past Defaults and Events of Default.

 

Subject to Sections 6.02, 6.07 and 8.02
hereof, the Holders of a majority in principal amount of the Securities then
outstanding have the right to waive any existing Default or Event of Default or
compliance with any provision of this Indenture or the Securities.  Upon any such waiver, such Default shall
cease to exist, and any Event of Default arising therefrom shall be deemed to
have been cured for every purpose of this Indenture; but no such waiver shall extend
to any subsequent or other Default or Event of Default or impair any right
consequent thereto.

 

Section 6.05.                             Control
by Majority.

 

The Holders of a majority in principal amount
of the Securities then outstanding may direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee or exercising
any trust or power conferred on the Trustee by this Indenture.  The Trustee, however, may refuse to follow
any direction that conflicts with law or this Indenture or that the Trustee
determines may be unduly prejudicial to the rights of another Securityholder
not taking part in such direction, and the Trustee shall have the right to
decline to follow any such direction if the Trustee, being advised by counsel,
determines that the action so directed may not lawfully be taken or if the
Trustee in good faith shall, by a Responsible Officer, determine that the
proceedings so directed may involve it in personal liability; provided
that the Trustee may take any other action deemed proper by the Trustee which
is not inconsistent with such direction.

 

Section 6.06.                             Limitation
on Suits.

 

Subject to Section 6.07 below, a
Securityholder may not institute any proceeding or pursue any remedy with
respect to this Indenture or the Securities unless:

 

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

 

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

 

48

 

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

 

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

 

(5)           no direction
inconsistent with such written request has been given to the Trustee during such
60 day period by the Holders of a majority in aggregate principal amount
of the Securities then outstanding.

 

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

 

Section 6.07.                             Rights
of Holders To Receive Payment.

 

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

 

Section 6.08.                             Collection
Suit by Trustee.

 

If an Event of Default in payment of
principal, premium or interest specified in Section 6.01(1) or (2) hereof
occurs and is continuing, the Trustee may recover judgment in its own name and
as trustee of an express trust against the Company (or any other obligor on the
Securities) for the whole amount of unpaid principal and accrued interest
remaining unpaid, together with interest on overdue principal and, to the
extent that payment of such interest is lawful, interest on overdue
installments of interest, in each case at the rate then borne by the
Securities, and such further amounts as shall be sufficient to cover the costs
and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.

 

Section 6.09.                             Trustee
May File Proofs of Claim.

 

The Trustee 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 Securityholders allowed in any judicial proceedings relative to the
Company (or any other obligor upon the Securities), its creditors or its
property and shall be entitled and empowered to collect and receive any monies
or other securities or property payable or deliverable upon the conversion or exchange
of the Securities or upon any such claims and to distribute the same after
deduction of its charges and expenses to the extent that any such charges and
expenses are not paid out of the estate in any such proceedings and any
custodian in any such judicial proceeding is hereby authorized by each Securityholder
to make such payments to the Trustee, and in the event that the Trustee shall
consent to the making of such payments directly to the Securityholders, to pay
to the Trustee any amount due to it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 7.07 hereof.

 

Nothing herein contained shall be deemed to
authorize the Trustee to authorize or consent to or accept or adopt on behalf
of any Securityholder any plan of reorganization, arrangement,

 

49

 

adjustment or composition
affecting the Securities or the rights of any Holder thereof, or to authorize
the Trustee to vote in respect of the claim of any Securityholder in any such
proceeding.

 

Section 6.10.                             Priorities.

 

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

 

FIRST:  to the Trustee for amounts due under
Section 7.07 hereof;

 

SECOND:  to Securityholders for amounts due and
unpaid on the Securities for principal, premium, if any, and interest as to
each, ratably, without preference or priority of any kind, according to the
amounts due and payable on the Securities; and

 

THIRD:  to the Company.

 

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

 

Section 6.11.                             Undertaking
for Costs.

 

In any suit for the enforcement of any right
or remedy under this Indenture or in any suit against the Trustee for any
action taken or omitted by it as Trustee, a court 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 6.11 does not apply to a suit by the Trustee, a suit
by a Holder pursuant to Section 6.07 hereof or a suit by Holders of more
than 10% in principal amount of the Securities then outstanding.

 

ARTICLE 7

 

TRUSTEE

 

Section 7.01.                             Duties of Trustee.

 

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

 

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

 

(1)           The Trustee
undertakes to perform such duties and only such duties that are specifically
set forth in this Indenture and no implied covenants or obligations shall be
read into this Indenture against the Trustee.

 

50

 

(2)           In the absence of
bad faith on its part, the Trustee may conclusively rely, as to the truth of
the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture; but in the case of any such certificates or
opinions which by any provision hereof are specifically required to be
furnished to the Trustee, the Trustee shall be under a duty to examine the same
to determine whether or not they conform to the requirements of this Indenture
(but need not confirm or investigate the accuracy of mathematical calculations
or other facts stated therein).

 

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

 

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

 

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

 

(3)           The Trustee shall
not be liable with respect to any action it takes or omits to take in good
faith in accordance with a direction received by it pursuant to Sections 6.02
and 6.05 hereof.

 

(d)           No provision of this
Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its rights
or powers if it shall have reasonable grounds for believing that repayment of
such funds or adequate indemnity satisfactory to it against such risk or
liability is not reasonably assured to it.

 

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

 

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

 

Section 7.02.                             Rights
of Trustee.

 

Subject to Section 7.01 hereof:

 

(1)           The Trustee may
conclusively rely and shall be protected in acting or refraining from acting on
any document reasonably believed by it to be genuine and to have been signed or
presented by the proper person.  The
Trustee need not investigate any fact or matter stated in the document.

 

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

 

(3)           The Trustee shall
not be liable for any action it takes or omits to take in good faith which it
reasonably believes to be authorized or within its rights or powers.

 

51

 

(4)           The Trustee may
consult with counsel of its selection, and the advice or opinion of such counsel
as to matters of law shall be full and complete authorization and protection
from liability in respect of any action taken, omitted or suffered by it
hereunder in good faith and in accordance with the advice or opinion of such
counsel.

 

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

 

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

 

(7)           Any request or
direction of the Company mentioned herein shall be sufficiently evidenced by a
Company Request and any resolution of the Board of Directors may be
sufficiently evidenced by a Board Resolution.

 

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

 

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

 

(10)         The rights,
privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to,
and shall be enforceable by, the Trustee in each of its capacities hereunder,
and each agent, custodian and other Person employed to act hereunder.

 

(11)         The Trustee may
request that the Company deliver an Officers’ Certificate setting forth the
names of individuals and/or titles of officers authorized at such time to take
specified actions pursuant to this Indenture, which Officers’ Certificate may
be signed by any person authorized to sign an Officers’ Certificate, including
any person specified as so authorized in any such certificate previously
delivered and not superseded.

 

Section 7.03.                             Individual
Rights of Trustee.

 

The Trustee in its individual or any other
capacity may become the owner or pledgee of Securities and may make loans to,
accept deposits from, perform services for or otherwise deal with the Company,
or any Affiliates thereof, with the same rights it would have if it were not
Trustee.  Any Agent may do the same with
like rights.  The Trustee, however,
shall be subject to Sections 7.10 and 7.11 hereof.

 

52

 

Section 7.04.                             Trustee’s
Disclaimer.

 

The Trustee shall not be responsible for and
makes no representation as to the validity or adequacy of this Indenture or the
Securities, it shall not be accountable for the Company’s use of the proceeds
from the sale of Securities or any money paid to the Company pursuant to the
terms of this Indenture and it shall not be responsible for any statement of
the Company in this Indenture or any document issued in connection with the
sale of Securities or any statement in the Securities other than the Trustee’s
certificate of authentication.

 

Section 7.05.                             Notice
of Defaults.

 

If a Default occurs and is continuing and if
it is known to the Trustee, the Trustee shall mail to each Securityholder
notice of the Default within 90 days after it occurs.  Except in the case of a Default in payment of the principal of,
or premium, if any, or interest on any Security the Trustee may withhold the
notice if and so long as the board of directors of the Trustee, the executive
committee or any trust committee of such board and/or any of its Trust Officers
in good faith determine(s) that withholding the notice is in the interests of
the Securityholders.

 

Section 7.06.                             Reports
by Trustee to Holders.

 

If required by TIA § 313(a), within 60
days after May 15 of any year, commencing the May 15 following the
date of this Indenture, the Trustee shall mail to each Securityholder a brief
report dated as of such May 15 that complies with TIA § 313(a).  The Trustee also shall comply with TIA
§ 313(b)(2).  The Trustee shall
also transmit by mail all reports as required by TIA § 313(c) and TIA
§ 313(d).

 

Reports pursuant to this Section 7.06
shall be transmitted by mail:

 

(1)           to all registered
Holders of Securities, as the names and addresses of such Holders appear on the
Registrar’s books; and

 

(2)           to such Holder of
Securities as have, within the two years preceding such transmission, filed
their names and addresses with the Trustee for that purpose.

 

A copy of each report at the time of its
mailing to Securityholders shall be filed with the SEC and each stock exchange
on which the Securities are listed.  The
Company shall promptly notify the Trustee when the Securities are listed on any
securities exchange.

 

Section 7.07.                             Compensation
and Indemnity.

 

The Company shall pay to the Trustee from
time to time such compensation as shall be agreed in writing between the
Company and the Trustee for its services hereunder (which compensation shall not
be limited by any provision of law in regard to the compensation of a trustee
of an express trust).  The Company shall
reimburse the Trustee upon request for all reasonable disbursements, expenses
and advances incurred or made by it in connection with its duties under this
Indenture, including the reasonable compensation, disbursements and expenses of
the Trustee’s agents and counsel.

 

The Company shall indemnify each of the
Trustee, any predecessor Trustee for, and hold them harmless against, any and
all loss, damage, claim, liability or reasonable expense, including taxes
(other than taxes based on the income of the Trustee) incurred by it in
connection with the acceptance

 

53

 

or performance of its duties
under this Indenture including the reasonable costs and expenses of entering
against the Company (including this Section 7.07) and of defending itself
against any claim (whether asserted by any Securityholder or the Company) or
liability in connection with the exercise or performance of any of its powers
or duties hereunder (including, without limitation, settlement costs).  The Trustee shall notify the Company in
writing promptly of any claim asserted against the Trustee for which it may
seek indemnity.  However, the failure by
the Trustee to so notify the Company shall not relieve the Company of its
obligations hereunder except to the extent the Company is prejudiced thereby.

 

Notwithstanding the foregoing, the Company
need not reimburse the Trustee for any expense or indemnify it against any loss
or liability incurred by the Trustee through its negligence or bad faith.  To secure the payment obligations of the
Company in this Section 7.07, the Trustee shall have a lien prior to the
Securities on all money or property held or collected by the Trustee except
such money or property held in trust to pay principal of and interest on
particular Securities.  The Trustee’s
right to receive payment of any amounts due under this Section 7.07 shall
not be subordinate to any other liability or indebtedness of the Company (even
though the Securities may be so subordinated) and the Securities shall be
subordinate to the Trustee’s right to receive such payment.  The obligations of the Company under this
Section 7.07 to compensate and indemnify the Trustee and each predecessor
Trustee and to pay or reimburse the Trustee and each predecessor Trustee for
expenses, disbursements and advances shall survive the resignation or removal
of any Trustee, any rejection or termination under any Bankruptcy Law and the
satisfaction and discharge of this Indenture.

 

When the Trustee incurs expenses or renders
services after an Event of Default specified in Section 6.01(6) or (7)
hereof occurs, the expenses and the compensation for the services are intended
to constitute expenses of administration under any Bankruptcy Law.

 

For purposes of this Section 7.07, the
term “Trustee” shall include any trustee appointed pursuant to Article 9.

 

Section 7.08.                             Replacement
of Trustee.

 

The Trustee may resign by so notifying the
Company in writing.  The Holders of a
majority in principal amount of the outstanding Securities may remove the
Trustee by notifying the removed Trustee in writing and may appoint a successor
Trustee with the Company’s written consent which consent shall not be
unreasonably withheld.  The Company may
remove the Trustee at its election if:

 

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

 

(2)           the Trustee is
adjudged a bankrupt or an insolvent under any Bankruptcy Law;

 

(3)           a receiver or other
public officer takes charge of the Trustee or its property;

 

(4)           the Trustee
otherwise becomes incapable of acting; or

 

(5)           a successor
corporation becomes successor Trustee pursuant to Section 7.09 below.

 

54

 

If the Trustee resigns or is removed or if a
vacancy exists in the office of Trustee for any reason, the Company shall
promptly appoint a successor Trustee.

 

If a successor Trustee does not take office
within 60 days after the retiring Trustee resigns or is removed, the retiring
Trustee, the Company or the Holders of a majority in principal amount of the
outstanding Securities may petition any court of competent jurisdiction at the
expense of the Company for the appointment of a successor Trustee.

 

If the Trustee fails to comply with
Section 7.10 hereof, any Securityholder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a
successor Trustee.

 

A successor Trustee shall deliver a written
acceptance of its appointment to the retiring Trustee and to the Company.  Promptly following such delivery, the
retiring Trustee shall, subject to its rights under Section 7.07 hereof,
transfer all property held by it as Trustee to the successor Trustee, 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.  A successor
Trustee shall mail notice of its succession to each Securityholder.  Notwithstanding replacement of the Trustee
pursuant to this Section 7.08, the Company’s obligations under
Section 7.07 hereof shall continue for the benefit of the retiring
Trustee.

 

Section 7.09.                             Successor
Trustee by Consolidation, Merger or Conversion.

 

If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all of its corporate trust
assets to, another corporation, subject to Section 7.10 hereof, the successor
corporation without any further act shall be the successor Trustee.

 

Section 7.10.                             Eligibility;
Disqualification.

 

This Indenture shall always have a Trustee
who satisfies the requirements of TIA § 310(a)(1) and (2) in every
respect.  The Trustee shall have a
combined capital and surplus of at least $100,000,000 as set forth in its most
recent published annual report of condition. 
The Trustee shall comply with TIA § 310(b), including the provision
in § 310(b)(1); provided, however, that there shall be
excluded from the operation of TIA § 310(b)(1) any indenture or indentures
under which other securities, or certificates of interest or participation in
other securities, of the Company are outstanding, if the requirements for such
exclusion set forth in TIA § 310(b)(1) are met.

 

Section 7.11.                             Preferential
Collection of Claims Against Company.

 

The Trustee shall comply with 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.

 

55

 

ARTICLE 8

 

AMENDMENTS,
SUPPLEMENTS AND WAIVERS

 

Section 8.01.                             Without
Consent of Holders.

 

The Company, when authorized by a Board
Resolution, and the Trustee may amend or supplement this Indenture or the
Securities without notice to or consent of any Securityholder:

 

(1)           to comply with
Section 5.01 hereof;

 

(2)           to provide for
uncertificated Securities in addition to or in place of certificated
Securities;

 

(3)           to comply with any
requirements of the SEC under the TIA;

 

(4)           to cure any
ambiguity, defect or inconsistency, or to make any other change that does not
materially and adversely affect the rights of any Securityholder; or

 

(5)           to make any other
change that does not materially and adversely affect the rights of any
Securityholder.

 

The Trustee is hereby authorized to join with
the Company in the execution of any supplemental indenture authorized or
permitted by the terms of this Indenture and to make any further appropriate
agreements and stipulations which may be therein contained; provided, however,
that the Company has delivered to the Trustee an Officers’ Certificate stating
that such amendment or supplement complies with the provisions of this
Section 8.01 and; provided, further, that the Trustee shall
not be obligated to enter into any such supplemental indenture which adversely
affects its own rights, duties or immunities under this Indenture.

 

Section 8.02.                             With
Consent of Holders.

 

The Company and the Trustee may modify or
supplement this Indenture or the Securities with the written consent of the
Holders of not less than a majority in aggregate principal amount of the
outstanding Securities without notice to any Securityholder.  The Holders of not less than a majority in
aggregate principal amount of the outstanding Securities may waive compliance
in a particular instance by the Company with any provision of this Indenture or
the Securities without notice to any Securityholder.  Without the consent of each Securityholder affected, however, an
amendment, supplement or waiver, including a waiver pursuant to
Section 6.04, may not:

 

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

 

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

 

(3)           reduce the principal
of or premium on or change the stated maturity of any Security;

 

56

 

(4)           make any Security
payable in money other than that stated in the Security or change the place of
payment;

 

(5)           change the amount or
time of any payment required by the Securities or reduce the premium payable
upon any redemption of the Securities or change the time before which no
redemption may be made (other than provisions relating to Section 4.09 or
Section 4.13);

 

(6)           after the time the
Company is obligated to purchase Securities hereunder, amend, change or modify
in any material respect the obligation of the Company to make and consummate a
Change of Control Offer in the event of a Change of Control or make and
consummate an Excess Proceeds Offer with respect to any Asset Sale that has
been consummated or, after such Change of Control has occurred or such Asset
Sale has been consummated, modify any of the provisions or definitions with
respect thereto;

 

(7)           waive a default in
the payment of the principal of, or interest on, or redemption payment with
respect to, any Security (including any obligation to make a Change of Control
Offer or, after the Company’s obligation to purchase Securities arises
thereunder, an Excess Proceeds Offer or modify any of the provisions or
definitions with respect to such offers);

 

(8)           make any changes in
Sections 6.04 or 6.07 hereof or this sentence of Section 8.02;

 

(9)           affect the ranking
of the Securities in a manner adverse to the Holders; or

 

(10)         take any other action
otherwise prohibited by this Indenture to be taken without the consent of each
Holder affected thereby.

 

After an amendment, supplement or waiver
under this Section 8.02 becomes effective, the Company shall mail to the
Holders a notice briefly describing the amendment, supplement or waiver.

 

Upon receipt of a Company Request,
accompanied by a Board Resolution authorizing the execution of any such
supplemental indenture, and upon the receipt by the Trustee of evidence
reasonably satisfactory to the Trustee of the consent of the Securityholders as
aforesaid and upon receipt by the Trustee of the documents described in
Section 8.06 hereof, the Trustee shall join with the Company in the execution
of such supplemental indenture unless such supplemental indenture affects the
Trustee’s own rights, duties or immunities under this Indenture, in which case
the Trustee may in its discretion, but shall not be obligated to, enter into
such supplemental indenture.

 

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

 

Section 8.03.                             Compliance
with Trust Indenture Act.

 

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

 

57

 

Section 8.04.                             Revocation
and Effect of Consents.

 

Until an amendment, supplement, waiver or
other action becomes effective, a consent to it by a Holder of a Security is a
continuing consent conclusive and binding upon such Holder and every subsequent
Holder of the same Security or portion thereof, and of any Security issued upon
the transfer thereof or in exchange therefor or in place thereof, even if
notation of the consent is not made on any such Security.  Any such Holder or subsequent Holder,
however, may revoke the consent as to his Security or portion of a Security, if
the Trustee receives the notice of revocation before the date the amendment,
supplement, waiver or other action becomes effective.

 

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

 

After an amendment, supplement, waiver or
other action becomes effective, it shall bind every Securityholder, unless it
makes a change described in any of clauses (1) through (9) of Section 8.02
hereof.  In that case the amendment,
supplement, waiver or other action shall bind each Holder of a Security who has
consented to it and every subsequent Holder of a Security or portion of a Security
that evidences the same debt as the consenting Holder’s Security.

 

Section 8.05.                             Notation
on or Exchange of Securities.

 

If an amendment, supplement, or waiver
changes the terms of a Security, the Trustee may request the Holder of the
Security to deliver it to the Trustee. 
In such case, the Trustee shall place an appropriate notation on the
Security about the changed terms and return it to the Holder.  Alternatively, if the Company or the Trustee
so determines, the Company in exchange for the Security shall issue and the
Trustee shall authenticate a new security that reflects the changed terms.  Failure to make the appropriate notation or
issue a new Security shall not affect the validity and effect of such amendment
supplement or waiver.

 

Section 8.06.                             Trustee
To Sign Amendments, etc.

 

The Trustee shall sign any amendment,
supplement or waiver authorized pursuant to this Article 8 if the
amendment, supplement or waiver does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. 
If it does, the Trustee may, but need not, sign it.  In signing or refusing to sign such
amendment, supplement or waiver the Trustee shall be entitled to receive and,
subject to (and to the extent provided in) Section 7.01 hereof, 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 this Indenture and that such amendment, supplement or waiver
constitutes the legal, valid and binding obligation of the Company, enforceable
in accordance with its terms (subject to customary enforceability
exceptions).  The Company may not sign
an amendment or supplement until the Board of Directors of the Company approves
it.  In signing any amendment, supplement
or waiver, the Trustee shall be entitled to receive an indemnity reasonably
satisfactory to it.

 

58

 

ARTICLE 9

 

DISCHARGE OF
INDENTURE; DEFEASANCE

 

Section 9.01.                             Discharge
of Indenture.

 

The Company may terminate its obligations
under the Securities and this Indenture, except the obligations referred to in
the last paragraph of this Section 9.01, if (A)(i) there shall have
been cancelled by the Trustee or delivered to the Trustee for cancellation all
Securities theretofore authenticated and delivered (other than any Securities
that are asserted to have been destroyed, lost or stolen and that shall have
been replaced as provided in Section 2.07 hereof) or (ii) all
Securities not theretofore delivered to the Trustee for cancellation (1) have
become due and payable or (2) will become due and payable within one year, or
are to be called for redemption within one year, under arrangements reasonably
satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the Company, and the Company has
irrevocably deposited or caused to be deposited with the Trustee funds in an
amount sufficient to pay and discharge the entire Indebtedness on the
Securities not theretofore delivered to the Trustee for cancellation, for
principal of, premium, if any, and interest on the Securities to the date of
maturity or redemption, as the case may be, together with irrevocable
instructions from the Company directing the Trustee to apply such funds to the
payment thereof at maturity or redemption, as the case may be; (B) the
Company has paid all sums payable by it hereunder or deposited all required
sums with the Trustee; and (C) the Company has delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel stating that all conditions
precedent under this Indenture relating to the satisfaction and discharge of
this Indenture have been complied with.

 

After such delivery the Trustee upon request
shall acknowledge in writing the discharge of the Company’s obligations under
the Securities and this Indenture except for those surviving obligations specified
below.

 

Notwithstanding the satisfaction and
discharge of this Indenture, the obligations of the Company in Sections 7.07,
9.05 and 9.06 hereof shall survive.

 

Section 9.02.                             Legal
Defeasance.

 

The Company may at its option, by Board
Resolution, be discharged from its obligations with respect to the Securities
on the date the conditions set forth in Section 9.04 below are satisfied
(hereinafter, “Legal Defeasance”).  For
this purpose, such Legal Defeasance means that the Company shall be deemed to
have paid and discharged the entire indebtedness represented by the Securities
and to have satisfied all its other obligations under such Securities and this
Indenture insofar as such Securities are concerned (and the Trustee, at the
expense of the Company, shall, subject to Section 9.06 hereof, execute
proper instruments acknowledging the same), except for the following which shall
survive until otherwise terminated or discharged hereunder:  (A) the rights of Holders of
outstanding Securities to receive solely from the trust funds described in
Section 9.04 hereof and as more fully set forth in such Section, payments
in respect of the principal of, premium, if any, and interest on such
Securities when such payments are due, (B) the Company’s obligations with
respect to such Securities under Sections 2.02, 2.03, 2.04, 2.05, 2.06,
2.07, 2.08 and 4.14 hereof, (C) the rights, powers, trusts, duties, and
immunities of the Trustee hereunder (including claims of, or payments to, the
Trustee under or pursuant to Section 7.07 hereof) and (D) this
Article 9.  Subject to compliance
with this Article 9, the Company may exercise its option under this
Section 9.02 with respect to the Securities

 

59

 

notwithstanding the prior
exercise of its option under Section 9.03 below with respect to the Securities.

 

Section 9.03.                             Covenant
Defeasance.

 

At the option of the Company, pursuant to a
Board Resolution, the Company shall be released from its obligations under
Sections 4.02 through 4.18 hereof, inclusive, and clause (ii) of
Section 5.01 hereof with respect to the outstanding Securities on and
after the date the conditions set forth in Section 9.04 hereof are
satisfied (hereinafter, “Covenant Defeasance”).  For this purpose, such Covenant Defeasance means that the Company
may omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such specified Section or portion
thereof, whether directly or indirectly by reason of any reference elsewhere
herein to any such specified Section or portion thereof or by reason of
any reference in any such specified Section or portion thereof to any
other provision herein or in any other document, but the remainder of this
Indenture and the Securities shall be unaffected thereby.

 

Section 9.04.                             Conditions
to Defeasance or Covenant Defeasance.

 

The following shall be the conditions to
application of Section 9.02 or Section 9.03 hereof to the outstanding
Securities:

 

(1)           the Company shall
irrevocably have deposited or caused to be deposited with the Trustee (or
another trustee satisfying the requirements of Section 7.10 hereof who
shall agree to comply with the provisions of this Article 9 applicable to
it) as funds in trust for the purpose of making the following payments, specifically
pledged as security for, and dedicated solely to, the benefit of the Holders of
the Securities, (A) money in an amount, or (B) EU Government
Obligations which through the scheduled payment of principal and interest in
respect thereof in accordance with their terms will provide, not later than the
due date of any payment, money in an amount, or (C) a combination thereof,
sufficient, in the opinion of a nationally-recognized firm of independent
public accountants expressed in a written certification thereof delivered to
the Trustee, to pay and discharge, and which shall be applied by the Trustee
(or other qualifying trustee) to pay and discharge, the principal of, premium,
if any, and accrued interest on the outstanding Securities at the maturity date
of such principal, premium, if any, or interest, or on dates for payment and
redemption of such principal, premium, if any, and interest selected in
accordance with the terms of this Indenture and of the Securities;

 

(2)           no Event of Default
or Default with respect to the Securities shall have occurred and be continuing
on the date of such deposit, or shall have occurred and be continuing at any
time during the period ending on the 91st day after the date of such deposit
or, if longer, ending on the day following the expiration of the longest
preference period under any Bankruptcy Law applicable to the Company in respect
of such deposit (it being understood that this condition shall not be deemed
satisfied until the expiration of such period);

 

(3)           such Legal
Defeasance or Covenant Defeasance shall not cause the Trustee to have a
conflicting interest for purposes of the TIA with respect to any securities of
the Company;

 

(4)           such Legal
Defeasance or Covenant Defeasance shall not result in a breach or violation of,
or constitute default under any other agreement or instrument to which the
Company is a party or by which it is bound;

 

60

 

(5)           the Company shall
have delivered to the Trustee an Opinion of Counsel stating that, as a result
of such Legal Defeasance or Covenant Defeasance, neither the trust nor the Trustee
will be required to register as an investment company under the Investment
Company Act of 1940, as amended;

 

(6)           in the case of an
election under Section 9.02 above, the Company shall have delivered to the
Trustee an Opinion of Counsel stating that (i) the Company has received
from, or there has been published by, the Internal Revenue Service a ruling to
the effect that or (ii) there has been a change in any applicable Federal
income tax law with the effect that, and such opinion shall confirm that, the
Holders of the outstanding Securities or persons in their positions will not
recognize income, gain or loss for Federal income tax purposes solely as a
result of such Legal Defeasance and will be subject to Federal income tax on
the same amount and in the same amounts, in the same manner, including as a
result of prepayment, and at the same times as would have been the case if such
Legal Defeasance had not occurred;

 

(7)           in the case of an
election under Section 9.03 hereof, the Company shall have delivered to
the Trustee an Opinion of Counsel to the effect that the Holders of the
outstanding Securities will not recognize income, gain or loss for Federal
income tax purposes as a result of such Covenant Defeasance and will be subject
to Federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Covenant Defeasance had not occurred;

 

(8)           the Company shall
have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for relating to
either the Legal Defeasance under Section 9.02 above or the Covenant
Defeasance under Section 9.03 hereof (as the case may be) have been
complied with;

 

(9)           the Company shall
have delivered to the Trustee an Officers’ Certificate stating that the deposit
under clause (1) was not made by the Company with the intent of defeating, hindering,
delaying or defrauding any creditors of the Company or others; and

 

(10)         the Company shall
have paid or duly provided for payment under terms mutually satisfactory to the
Company and the Trustee all amounts then due to the Trustee pursuant to
Section 7.07 hereof.

 

Notwithstanding
the foregoing, the opinion of counsel required by clause (6) above with respect
to a defeasance need not be delivered if all Securities not theretofore
delivered to the Trustee for cancellation (A) have become due and payable
or (B) will become due and payable on the maturity date within one year
under arrangements satisfactory to the Trustee for the giving of notice of
redemption by the Trustee in the name, and at the expense, of the Company.

 

Section 9.05.                             Deposited
Money and EU Government Obligations To Be Held in Trust; Other Miscellaneous
Provisions.

 

All money and EU Government Obligations (including
the proceeds thereof) deposited with the Trustee pursuant to Section 9.04
hereof in respect of the outstanding Securities shall be held in trust and
applied by the Trustee, in accordance with the provisions of such Securities
and this Indenture, to the payment, either directly or through any Paying Agent
as the Trustee may determine, to the Holders of such Securities, of all sums
due and to become due thereon in respect of principal,

 

61

 

premium, if any, and accrued
interest, but such money need not be segregated from other funds except to the
extent required by law.

 

The Company shall pay and indemnify the
Trustee against any tax, fee or other charge imposed on or assessed against the
EU Government Obligations deposited pursuant to Section 9.04 hereof or the
principal, premium, if any, and interest received in respect thereof other than
any such tax, fee or other charge which by law is for the account of the
Holders of the outstanding Securities.

 

Anything in this Article 9 to the
contrary notwithstanding, the Trustee shall deliver or pay to the Company from
time to time upon Company Request any money or EU Government Obligations held
by it as provided in Section 9.04 hereof which, in the opinion of a nationally-recognized
firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, are in excess of the amount thereof which
would then be required to be deposited to effect an equivalent Legal Defeasance
or Covenant Defeasance.

 

Section 9.06.                             Reinstatement.

 

If the Trustee or Paying Agent is unable to
apply any money or EU Government Obligations in accordance with
Section 9.01, 9.02 or 9.03 hereof by reason of any legal proceeding or by
reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the Company’s
obligations under this Indenture and the Securities shall be revived and
reinstated as though no deposit had occurred pursuant to this Article 9
until such time as the Trustee or Paying Agent is permitted to apply all such
money or EU Government Obligations in accordance with Section 9.01 hereof;
provided, however, that if the Company has made any payment of
principal of, premium, if any, or accrued interest on any Securities because of
the reinstatement of its obligations, the Company shall be subrogated to the
rights of the Holders of such Securities to receive such payment from the money
or EU Government Obligations held by the Trustee or Paying Agent.

 

Section 9.07.                             Moneys
Held by Paying Agent.

 

In connection with the satisfaction and
discharge of this Indenture, all moneys then held by any Paying Agent under the
provisions of this Indenture shall, upon demand of the Company, be paid to the
Trustee, or if sufficient moneys have been deposited pursuant to
Section 9.01 hereof, to the Company and thereupon such Paying Agent shall
be released from all further liability with respect to such moneys.

 

Section 9.08.                             Moneys
Held by Trustee.

 

Any moneys deposited with the Trustee or any
Paying Agent or then held by the Company in trust for the payment of the
principal of, or premium, if any, or interest on any Security that are not
applied but remain unclaimed by the Holder of such Security for two years after
the date upon which the principal of, or premium, if any, or interest on such
Security shall have respectively become due and payable shall be repaid to the
Company upon Company Request, or if such moneys are then held by the Company in
trust, such moneys shall be released from such trust; and the Holder of such
Security entitled to receive such payment shall thereafter, as an unsecured
general creditor, look only to the Company for the payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money
shall thereupon cease; provided, however, that the Trustee or any
such Paying Agent, before being required to make any such repayment, may, at
the expense of the Company, either mail to each Securityholder affected, at the
address shown in the register of the Securities

 

62

 

maintained by the Registrar
pursuant to Section 2.03 hereof, or cause to be published once a week for
two successive weeks, in a newspaper published in the English language,
customarily published each Business Day and of general circulation in the City
of Luxembourg, a notice that such money remains unclaimed and that, after a
date specified therein, which shall not be less than 30 days from the date of
such mailing or publication, any unclaimed balance of such moneys then
remaining will be repaid to the Company. 
After payment to the Company or the release of any money held in trust
by the Company, Securityholders entitled to the money must look only to the
Company for payment as general creditors unless applicable abandoned property
law designates another person.

 

ARTICLE 10

 

[RESERVED]

 

ARTICLE 11

 

MISCELLANEOUS

 

Section 11.01.                       Trust
Indenture Act Controls.

 

If any provision of this Indenture limits,
qualifies or conflicts with another provision which is required to be included
in this Indenture by the TIA, the required provision shall control.

 

Section 11.02.                       Notices.

 

(a)           Any notice or
communication shall be given in writing and delivered in person, sent by
telecopier, facsimile, delivered by overnight commercial courier service or
mailed by registered or certified mail, postage prepaid, return receipt
requested, addressed as follows:

 

	
  If to the Company:

  
	
   

  
	
  Samsonite Corporation

  
	
  11200 East 45th Avenue

  
	
  Denver, Colorado  80239

  
	
  Attention:

  	
   

  	
  Chief Financial Officer with

  
	
   

  	
   

  	
  a copy to General Counsel

  
	
  Facsimile:

  	
   

  	
  (303) 373-6606

  
	
   

  	
   

  	
   

  
	
  Copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Skadden, Arps, Slate, Meagher & Flom
  LLP

  
	
  Four Times Square

  
	
  New York, New York  10036

  
	
  Attention:

  	
   

  	
  Gregory A. Fernicola, Esq.

  
	
  Facsimile:

  	
   

  	
  (212) 735-2000

  
	
   

  	
   

  	
   

  

 

63

 

	
  If to the Trustee:

  
	
   

  
	
  The Bank of New York

  
	
  101 Barclay Street

  
	
  New York, New York  10286

  
	
  Attention:

  	
   

  	
  Corporate Trust Administration

  
	
  Facsimile:

  	
   

  	
  (212) 815-5802

  
	
   

  
	
  Copy to:

  
	
   

  
	
  BNY Western Trust Company, N.A.

  
	
  700 South Flower Street, Suite 500

  
	
  Los Angeles, California  90017

  
	
  Facsimile:

  	
   

  	
  (213) 630-6298

  
					

 

Such notices or communications shall be
sufficiently given if so given within the time prescribed in this Indenture.

 

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

 

Any notice or communication to the Company or
the Trustee shall be deemed to have been given or made as of the date actually
received.

 

Any notice or communication mailed to a
Securityholder shall be mailed to him by first-class mail, postage prepaid, at
his address shown on the register kept by the Registrar.

 

(b)           Failure to mail a
notice or communication to a Securityholder or any defect in it shall not
affect its sufficiency with respect to other Securityholders.  If a notice or communication to a Securityholder
is mailed in the manner provided above, it shall be deemed duly given, whether
or not the addressee receives it.

 

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

 

Section 11.03.                       Communications by Holders
with Other Holders.

 

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

 

Section 11.04.                       Certificate
and Opinion as to Conditions Precedent.

 

Upon any request or application by the
Company to the Trustee to take any action under this Indenture, the Company
shall furnish to the Trustee:

 

(1)           an Officers’
Certificate (which shall include the statements set forth in Section 11.05
below) 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

 

64

 

(2)           an Opinion of
Counsel (which shall include the statements set forth in Section 11.05
below) stating that, in the opinion of such counsel, all such conditions
precedent have been complied with.

 

Section 11.05.                       Statements
Required in Certificate and Opinion.

 

Each certificate and opinion with respect to
compliance with a condition or covenant provided for in this Indenture shall
include:

 

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

 

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

 

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

 

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

 

Section 11.06.                       When
Treasury Securities Disregarded.

 

In determining whether the Holders of the
required aggregate principal amount of Securities have concurred in any
direction, waiver or consent, Securities owned by the Company or by any
Affiliate of the Company shall be disregarded, except that for the purposes of
determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent, only Securities which the Trustee actually knows
are so owned shall be so disregarded. 
Securities so owned which have been pledged in good faith shall not be
disregarded if the pledgee establishes to the satisfaction of the Trustee the
pledgee’s right so to act with respect to the Securities and that the pledgee
is not the Company or any Affiliate of the Company.

 

Section 11.07.                       Rules
by Trustee and Agents.

 

The Trustee may make reasonable rules for
action by or meetings of Securityholders. 
The Registrar and Paying Agent may make reasonable rules for their
functions.

 

Section 11.08.                       Business
Days; Legal Holidays.

 

A “Business Day” is a day that is not a Legal
Holiday.  A “Legal Holiday” is a
Saturday, a Sunday, a federally-recognized holiday or a day on which banking
institutions are not required to be open in the City of New York, London or
Luxembourg.  If a payment date is a
Legal Holiday at a place of payment, payment may be made at that place on the
next succeeding day that is not a Legal Holiday, and no interest shall accrue
for the intervening period.

 

Section 11.09.                       Governing
Law.

 

THIS INDENTURE AND THE SECURITIES SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
AS APPLIED

 

65

 

TO CONTRACTS MADE AND PERFORMED
WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
LAW.  EACH OF THE PARTIES HERETO AGREES
TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE OR THE
SECURITIES.

 

Section 11.10.                       No
Adverse Interpretation of Other Agreements.

 

This Indenture may not be used to interpret
another indenture, loan, security or debt agreement of the Company or any
Subsidiary thereof.  No such indenture,
loan, security or debt agreement may be used to interpret this Indenture.

 

Section 11.11.                       No
Recourse Against Others.

 

A director, officer, employee, stockholder or
incorporator, as such, of the Company shall not have any liability for any
obligations of the Company under the Securities or this Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creation.  Each Securityholder by accepting
a Security waives and releases all such liability.  Such waiver and release are part of the consideration for the
issuance of the Securities.

 

Section 11.12.                       Successors.

 

All agreements of the Company in this
Indenture and the Securities shall bind its successors.  All agreements of the Trustee, any
additional trustee and any Paying Agents in this Indenture shall bind its
successor.

 

Section 11.13.                       Multiple
Counterparts.

 

The parties may sign multiple counterparts of
this Indenture.  Each signed counterpart
shall be deemed an original, but all of them together represent one and the
same agreement.

 

Section 11.14.                       Table
of Contents, Headings, etc.

 

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 to be considered a part hereof, and
shall in no way modify or restrict any of the terms or provisions hereof.

 

Section 11.15.                       Separability.

 

Each provision of this Indenture shall be
considered separable and if for any reason any provision which is not essential
to the effectuation of the basic purpose of this Indenture or the Securities
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

 

Section 11.16.                       Judgment
Currency.

 

Any payment on account of any amount that is
payable in U.S. dollars with respect to the Securities (the “Required
Currency”) which is made to or for the account of any Holder or the Trustee in
lawful currency of any other jurisdiction (the “Judgment Currency”), whether as
a result of any judgment or order or the enforcement thereof or the liquidation
of the Company or any Restricted Subsidiary, shall constitute a discharge of
the Company or such Restricted

 

66

 

Subsidiary’s obligation under
this Indenture and the Securities, as the case may be, only to the extent of
the amount of the Required Currency which such Holder or the Trustee, as the
case may be, could purchase in the New York foreign exchange markets with the
amount of the Judgment Currency in accordance with normal banking procedures at
the rate of exchange prevailing on the first business day following receipt of
the payment in the Judgment Currency. 
If the amount of the Required Currency that could be so purchased is
less than the amount of the Required Currency originally due to such Holder or
the Trustee, as the case may be, the Company shall indemnify and hold harmless
the Holder or the Trustee, as the case may be, from and against all loss or
damage arising out of, or as a result of, such deficiency.  This indemnity shall constitute an obligation
separate and independent from the other obligations contained in this Indenture
or the Securities, shall give rise to a separate and independent cause of
action, shall apply irrespective of any indulgence granted by any Holder or the
Trustee from time to time and shall continue in full force and effect
notwithstanding any judgment or order for a liquidated sum in respect of an
amount due hereunder or under any judgment or order.

 

Section 11.17.                       Waiver
of Jury Trial.

 

EACH OF THE COMPANY 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 TRANSACTION CONTEMPLATED HEREBY.

 

Section 11.18.                       Force
Majeure.

 

In no event shall the Trustee be responsible
or liable for any failure or delay in the performance of its obligations
hereunder arising out of or caused by, directly or indirectly, forces beyond
its control, including, without limitation strikes, work stoppages, accidents,
acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions of
utilities, communications or computer (software and hardware) services; it being
understood that the Trustee shall use reasonable efforts which are consistent
with accepted practices in the banking industry to resume performance as soon
as practicable under the circumstances.

 

67

 

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

 

	
   

  	
  SAMSONITE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Richard H. Wiley

  	
   

  
	
   

  	
   

  	
  Name:
  Richard H. Wiley

  
	
   

  	
   

  	
  Title: Chief
  Financial Officer, Treasurer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  L.C. Ross

  	
   

  
	
   

  	
   

  	
  Name: L.C.
  Ross

  
	
   

  	
   

  	
  Title: Vice
  President – Legal and General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK, as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Ritu Khanna

  	
   

  
	
   

  	
   

  	
  Name: Ritu
  Khanna

  
	
   

  	
   

  	
  Title:
  Assistant Vice President

  
	
   

  	
   

  	
   

  

 

68

 

EXHIBIT A

 

THE SECURITIES
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS.  NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN
MAY BE REOFFERED, SOLD, ASSIGNED, TRANS-FERRED, PLEDGED, ENCUMBERED OR
OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION AND SUBJECT TO
COMPLIANCE WITH OTHER APPLICABLE LAWS. 
THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER,
SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE WHICH IS [IN THE
CASE OF RULE 144A NOTES: TWO YEARS] [IN THE CASE OF REGULATION S NOTES: 40
DAYS] (OR SUCH SHORTER PERIOD THAT MAY HEREAFTER BE PROVIDED UNDER
RULE 144(K) (OR ANY SUCCESSOR PROVISION THEREOF) AS PERMITTING THE RESALE BY
NON-AFFILIATES OF RESTRICTED SECURITIES WITHOUT RESTRICTION) 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
THIS SECURITY) (THE “RESALE RESTRICTION TERMINATION DATE”), ONLY (A) TO THE
COMPANY, (B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED
EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE
ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE
144A”), TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER”
AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OF 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 TO
NON-U.S. PERSONS 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
AND OTHERWISE IN COMPLIANCE WITH OTHER APPLICABLE LAWS, SUBJECT TO THE
COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSE (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM.  THE LEGEND WILL BE REMOVED UPON THE REQUEST
OF A HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

 

A-1

 

	
  NO. 

  	
   

  	
  ISIN:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CUSIP NO.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  COMMON CODE

  

 

SAMSONITE CORPORATION

 

Floating Rate Senior Note due 2010

 

€

 

SAMSONITE CORPORATION, a Delaware corporation
(the “Company”), for value received, promises to pay to The Bank of New York,
London Branch or registered assigns the principal sum of
                           
Euros, on June 1, 2010.

 

Interest Payment Dates:  March 1, June 1, September 1
and December 1

 

Record Dates:  February 15, May 15, August 15 and
November 15

 

Reference is made to the further provisions
of this Security contained herein, which will for all purposes have the same
effect as if set forth at this place.

 

A-2

 

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

 

	
   

  	
  SAMSONITE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-3

 

Trustee’s Certificate of Authentication

 

This is one of the Floating Rate Senior Notes
due 2010 referred to in the within-mentioned Indenture.

 

Dated:

 

	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  

 

A-4

 

(REVERSE OF SECURITY)

 

Senior Floating Rate Note due 2010

 

1.             Interest.  SAMSONITE CORPORATION, a Delaware
corporation (the “Company”), promises to pay interest on the principal amount
of this Security at a rate per annum, reset quarterly, equal to EURIBOR plus
4.375%, as determined by an agent appointed by the Company (the “Calculation
Agent”).  Interest will be payable
quarterly on each March 1, June 1, September 1 and
December 1, commencing on September 1, 2004(1).  The Company will pay interest to those
persons who were holders of record on the February 15, May 15,
August 15 and November 15 immediately preceding the applicable
Interest Payment Date.  The Securities
will bear interest from the Issue Date or, if interest has already been paid,
from the date it was most recently paid.

 

For
purposes of this Section 1, the following terms shall have the meanings
indicated below:

 

“Determination
Date” with respect to an Interest Period, will be the day that is two
TARGET Settlement Days preceding the first day of such Interest Period.

 

“EURIBOR”, with respect to an Interest
Period, will be the rate (expressed as a percentage per annum) for deposits in
euros for the three-month period beginning on the day that is two TARGET Settlement
Days after the Determination Date that appears on Telerate Page 248 as of
11:00 a.m., Brussels time, on the Determination Date.  If Telerate Page 248 does not include such a
rate or is unavailable on a Determination Date, the Calculation Agent will
request the principal London office of each of four major banks in the
Euro-Zone inter-bank market, as selected by the Calculation Agent, to provide
such bank’s offered quotation (expressed as a percentage per annum), as of approximately
11:00 a.m., Brussels time, on such Determination Date, to prime banks in
the Euro-Zone interbank market for deposits in a Representative Amount in euro
for a three-month period beginning on the day that is two TARGET Settlement
Days after the Determination Date.  If
at least two such offered quotations are so provided, the rate for the Interest
Period will be the arithmetic mean of such quotations.  If fewer than two such quotations are so
provided, the Calculation Agent will request each of three major banks in
London, as selected by the Calculation Agent, to provide such bank’s rate (expressed
as a percentage per annum), as of approximately 11:00 a.m., London time,
on such Determination Date, for loans in a Representative Amount in euros to
leading European banks for a three-month period beginning on the day that is
two TARGET Settlement Days after the Determination Date.  If at least two such rates are so provided,
the rate for the Interest Period will be the arithmetic mean of such
rates.  If fewer than two such rates are
so provided then the rate for the Interest Period will be the rate in effect
with respect to the immediately preceding Interest Period.

 

“Euro-Zone” means the region composed of
member states of the European Union that adopts the euro.

 

(1)           Only with respect to the Securities issued on the Issue
Date.

 

A-5

 

“Interest
Period” means the period commencing on and including an interest payment
date and ending on and including the day immediately preceding the next
succeeding interest payment date, with the exception that the first Interest
Period shall commence on and include the Issue Date and end on and include
September 1, 2004.

 

“Representative Amount” means the greater of
(a) €1,000,000 and (b) an amount that is representative for a single
transaction in the relevant market at the relevant time.

 

“TARGET Settlement Day” means any day on
which the Trans-European Automated Real-Time Gross Settlement Express Transfer
(TARGET) System is open.

 

“Telerate
Page 248” means the display page so designated on Bridge’s Telerate
Service (or such other page as may replace that page on that service), or such
other service as may be nominated as the information vendor.

 

The amount of interest for each day that the
Securities are outstanding (the “Daily Interest Amount”) will be calculated by
dividing the interest rate in effect for such day by 360 and multiplying the
result by the principal amount of the senior notes.  The amount of interest to be paid on the senior notes for each
Interest Period will be calculated by adding the Daily Interest Amounts for
each day in the Interest Period.

 

All percentages resulting from any of the
above calculations will be rounded, if necessary, to the nearest one
hundred-thousandth of a percentage point, with five one-millionths of a
percentage point being rounded upwards (e.g.,
9.876545% (or .09876545) being rounded to 9.87655% (or .0987655)) and all euro
amounts used in or resulting from such calculations will be rounded to the
nearest cent (with one-half cent being rounded upwards).

 

The interest rate on the Securities will in
no event be higher than the maximum rate permitted by New York law as the same
may be modified by United States law of general application.

 

The Calculation Agent will, upon the request
of the holder of any Security, provide the interest rate then in effect with
respect to the Securities.  All
calculations made by the Calculation Agent in the absence of manifest error
will be conclusive for all purposes and binding on the Company and the holders
of the Securities.

 

2.             Method of Payment.  The Company shall pay interest on the
Securities (except defaulted interest) to the Persons who are the registered
Holders at the close of business on the February 15, May 15,
August 15 and November 15 immediately preceding the Interest Payment
Date even if the Securities are cancelled on registration of transfer or
registration of exchange after such record date and on or before such Interest
Payment Date, except as provided in Section 2.11 of the Indenture with
respect to defaulted interest.  Holders
must surrender Securities to a Paying Agent to collect principal payments.  The Company shall pay principal and interest
in money of any member state of the European Union (as it exists on the Issue
Date) that at the time of payment is legal tender for payment of public and
private debts (“EU Legal Tender”). 
However, the Company may pay principal and interest by its check payable
in such EU Legal Tender.  The Company
may deliver any such interest payment to the Paying Agent or to a Holder at the
Holder’s registered address.

 

A-6

 

3.             Paying Agent and Registrar.  Initially, THE BANK OF NEW YORK EUROPE
LIMITED LUXEMBOURG BRANCH (an affiliate of The Bank of New York, the
“Trustee”), a bank and trust company organized under the laws of Luxembourg,
will act as Paying Agent and Registrar. 
The Company may change any Paying Agent or Registrar without notice to
the Holders of the Securities.  The
Company or any of its Subsidiaries may act as Paying Agent or Registrar.

 

4.             Indenture; Restrictive Covenants.  The Company issued this Security under an
Indenture dated as of June 9, 2004 (the “Indenture”) between the Company
and the Trustee.  The terms of this
Security include those stated in the Indenture and those made part of the Indenture
by reference to the Trust Indenture Act of 1939 (15 U.S. Code
§§ 77aaa-77bbbb) as in effect on the date of the Indenture.  This Security is subject to all such terms,
and the Holder of this Security is referred to the Indenture and said Trust
Indenture Act for a statement of them. 
All capitalized terms in this Security, unless otherwise defined, have
the meanings assigned to them by the Indenture.

 

The Securities are general unsecured
obligations of the Company and, subject to compliance with the terms of the
Indenture, unlimited in aggregate principal amount.  The Indenture imposes certain restrictions on, among other
things, the incurrence of indebtedness, the issuance of preferred stock by the
Company and its subsidiaries, mergers and sale of assets, the payments of
dividends on, or the repurchase of, capital stock of the Company and its subsidiaries,
certain other restricted payments by the Company and its subsidiaries, certain
transactions with, and investments in, its affiliates, and a provision
regarding change of control transactions.

 

5.             Optional Redemption.  The Company may redeem the Securities, in
the manner set forth in Section 3.07 of the Indenture.

 

6.             Notice of Redemption.  Notice of redemption will be mailed at least
30 days but not more than 60 days before the Redemption Date to each Holder of
Securities to be redeemed at such Holder’s registered address.  In order to effect a redemption with the
proceeds of an Equity Offering, the Company shall send the redemption notice
not later than 90 days after the consummation of such Equity Offering.  Securities in denominations larger than €5,000
may be redeemed in part.

 

7.             Offers to Purchase.  The Indenture requires that certain proceeds
from Asset Sales be used, subject to further limitations contained therein, to
make an offer to purchase certain amounts of Securities in accordance with the
procedures set forth in the Indenture. 
The Company is also required to make an offer to purchase Securities
upon occurrence of a Change of Control in accordance with procedures set forth
in the Indenture.

 

8.             Denominations; Transfer;
Exchange.  The Securities are in
registered form, without coupons, in denominations of €5,000 and integral
multiples of €1,000.  A Holder shall
register the transfer of or exchange Securities in accordance with the
Indenture.  The Registrar may require a
Holder, among other things, to furnish appropriate endorsements and transfer
documents and to pay certain transfer taxes or similar governmental charges
payable in connection therewith as permitted by the Indenture.  The Registrar need not register the transfer
of or exchange any Securities during a period beginning 15 days before the
mailing of a redemption notice for any Securities or portions thereof selected
for redemption.

 

9.             Persons Deemed Owners.  The registered Holder of this Security shall
be treated as the owner of it for all purposes.

 

A-7

 

10.           Unclaimed Money.  If money for the payment of principal,
premium or interest on any Security remains unclaimed for two years, the
Trustee and the Paying Agent will pay the money back to the Company at its
request.  After that, Holders entitled to
money must look to the Company for payment as general creditors unless an
“abandoned property” law designates another Person.

 

11.           Amendment, Supplement and Waiver.  Subject to certain exceptions, the Indenture
or the Securities may be modified, amended or supplemented by the Company and
the Trustee with the consent of the Holders of at least a majority in principal
amount of the Securities then outstanding and any existing default or
compliance with any provision may be waived in a particular instance with the
consent of the Holders of a majority in principal amount of the Securities then
outstanding.  Without the consent of
Holders, the Company and the Trustee may amend the Indenture or the Securities
or supplement the Indenture for certain specified purposes including, without
limitation, providing for uncertificated Securities in addition to certificated
Securities, and curing any ambiguity, defect or inconsistency, or making any
other change that does not materially and adversely affect the rights of any
Holder.

 

12.           Successor Entity.  When a successor corporation assumes all the
obligations of its predecessor under the Securities and the Indenture and
immediately before and thereafter no Default exists and certain other
conditions are satisfied, the predecessor corporation will be released from
those obligations.

 

13.           Defaults and Remedies.  Events of Default are set forth in the Indenture.  Upon the happening of any Event of Default
specified in Section 6.01, the Trustee may, and the Trustee upon the request
of 25% in principal amount of the Securities shall or the Holders of at least
25% in aggregate principal amount of outstanding Securities may, declare the
principal of and accrued but unpaid interest, if any, on all the Securities to
be due and payable by notice in writing to the Company and the Trustee specifying
the respective Event of Default and that it is a “notice of acceleration” (the
“Acceleration Notice”), and the same shall become immediately due and
payable.  If an Event of Default described
under clauses (6) or (7) of Section 6.01 with respect to the Company
occurs and is continuing, then such amount will ipso facto become and be
immediately due and payable without any declaration or other act on the part of
the Trustee or any Holder of Securities; provided, however, that
at any time after a declaration of acceleration with respect to the Securities,
the Holders of a majority in principal amount of the Securities then
outstanding (by notice to the Trustee) may rescind and cancel such declaration
and its consequences if (i) the rescission would not conflict with any
judgment or decree of a court of competent jurisdiction, (ii) all existing
Events of Default have been cured or waived except nonpayment of principal or
interest on the Securities that has become due solely by such declaration of
acceleration, (iii) to the extent the payment of such interest is lawful,
interest (at the same rate specified in the Securities) on overdue installments
of interest and overdue principal which has become due otherwise than by such
declaration of acceleration has been paid, (iv) the Company has paid the
Trustee its reasonable compensation and reimbursed the Trustee for its
expenses, disbursements and advances and (v) in the event of the cure or
waiver of a Default or Event of Default (with respect to the Company) of the
type described in Section 6.01(6) or (7), the Trustee has received an
Officers’ Certificate and an Opinion of Counsel that such Default or Event of
Default has been cured or waived.  The
Holders of a majority in principal amount of the Securities may waive any
existing Default or Event of Default under this Indenture, and its
consequences, except a default in the payment of the principal of or interest
on any Securities.

 

A-8

 

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

 

15.           No Recourse Against Others.  A director, officer, employee, stockholder
or incorporator, as such, of the Company shall not have any liability for any
obligations of the Company under the Securities or the Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creations.  Each Securityholder by
accepting a Security waives and releases all such liability.  Such waiver and release are part of the
consideration for the issuance of the Securities.

 

16.           Defeasance and Covenant Defeasance.  The Indenture contains provisions for
defeasance of the entire indebtedness on this Security (pursuant to
Section 9.02 of the Indenture) and for defeasance of certain covenants in
the Indenture (pursuant to Section 9.03 of the Indenture) upon compliance
by the Company with certain conditions set forth in the Indenture.

 

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

 

18.           CUSIP Numbers, ISIN and/or Common
Codes.  Pursuant to a recommendation
promulgated by the Committee on Uniform Note Identification Procedures, the
Company has caused CUSIP Numbers, ISIN and/or Common Codes to be printed on the
Securities and has directed the Trustee to use CUSIP numbers, ISIN and/or
Common Codes in notices of redemption as a convenience to Holders of the
Securities.  No representation is made
as to the accuracy of such numbers either as printed on the Securities or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

 

19.           Indenture Controls.  If any provision of this Note limits,
qualifies or conflicts with the provisions of the Indenture, the provisions of
the Indenture shall control.

 

20.           Governing Law.  THE INDENTURE AND THE SECURITIES SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
AS APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF NEW YORK,
WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.  EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO THE JURISDICTION
OF THE COURTS OF THE STATE OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT
OF OR RELATING TO THE INDENTURE OR THE SECURITIES.

 

THE COMPANY WILL FURNISH TO ANY HOLDER OF A
SECURITY UPON WRITTEN REQUEST AND WITHOUT CHARGE A COPY OF THE INDENTURE,
REQUESTS MAY BE MADE TO:

 

SAMSONITE
CORPORATION, 11200 East 45th Avenue, Denver, Colorado 80239, Attention:  General Counsel.

 

A-9

 

ASSIGNMENT

 

I or we assign to PLEASE INSERT SOCIAL
SECURITY OR

	
  TAX I.D.
  NUMBER 

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

(please print or type name and address)

 

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

 

	
  Date:

  	
   

  	
   

  

 

 

NOTICE:  The signature on this assignment must
correspond with the name as it appears upon the face of the within Security in
every particular without alteration or enlargement or any change whatsoever and
be guaranteed by the endorser’s bank or broker.

 

 

	
  Signature
  Guarantee:

  	
   

  	
   

  

 

A-10

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to elect to have all or any part
of this Security purchased by the Company pursuant to Section 4.09 or
Section 4.13 of the Indenture, check the appropriate box:

 

	
  o            Section 4.09

  	
   

  	
  o            Section 4.13

  

 

If you want to have only part of the Security
purchased by the Company pursuant to Section 4.09 or Section 4.14 of
the Indenture, state the amount you elect to have purchased:

 

	
  $

  	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
					

 

	
  Your
  Signature:

  	
   

  	
   

  
	
   

  
	
  (Sign
  exactly as your name appears on the face of this Security)

  
	
   

  
	
   

  	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  	
   

  
					

 

A-11

 

EXHIBIT B

 

FORM OF LEGEND FOR GLOBAL SECURITIES

 

Any Global Security authenticated and
delivered hereunder shall bear a legend (which would be in addition to any
other legends required in the case of a Restricted Security) in substantially
the following form:

 

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

 

UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE BANK OF NEW
YORK, LONDON BRANCH TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
THE BANK OF NEW YORK, LONDON BRANCH AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE BANK OF NEW YORK, LONDON BRANCH (AND ANY PAYMENT IS MADE
TO THE BANK OF NEW YORK, LONDON BRANCH SUCH ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE BANK OF NEW YORK, LONDON BRANCH), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, HAS AN INTEREST HEREIN.

 

B-1

 

EXHIBIT C

 

Form of Certificate to Be Delivered in

Connection with Transfers to Non-QIB Accredited Investors

 

	
   

  	
   

  	
                  ,      

  
	
   

  
	
  Re:

  	
   

  	
  Samsonite
  Corporation (the “Company”)

  Floating Rate Senior Notes due 2010 (the “Notes”)

  	
   

  
						

 

Dear Sirs:

 

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

 

1.             We understand that any subsequent
transfer of the Notes is subject to certain restrictions and conditions set
forth in the Indenture dated as of June 9, 2004 relating to the Notes and
the undersigned agrees to be bound by, and not to resell, pledge or otherwise
transfer the Securities except in compliance with, such restrictions and
conditions and the Securities Act of 1933, as amended (the “Securities Act”).

 

2.             We understand that the Notes have
not been registered under the Securities Act, and that the Notes may not be
offered or sold except as permitted in the following sentence.  We agree, on our own behalf and on behalf of
any accounts for which we are acting as hereinafter stated, that if we should
sell any Notes within two years after the original issuance of the Notes, we
will do so only (A) to the Company or any subsidiary thereof,
(B) pursuant to a registration statement which has been declared effective
under the Securities Act, (C) for so long as the Notes are eligible for
resale pursuant to Rule 144(A) (“Rule 144A”) to a person we reasonably
believe to be a “qualified institutional buyer” as defined in Rule 144A that
purchases for its own account or for the account of a qualified institutional
buyer to whom notice is given that the transfer is being made in reliance on
Rule 144A, (D) outside the United States to non-U.S. persons in
compliance with Rule 904 of Regulation S under the Securities Act, or
(E) pursuant to another available exemption from the registration requirements
of the Securities Act and otherwise in compliance with other applicable laws,
and we further agree to provide to any person purchasing any of the Notes from
us a notice advising such purchaser that resales of the Notes are restricted as
stated herein.

 

3.             We understand that, on any proposed
resale of any Notes, we will be required to furnish to you and the Company such
certifications, legal opinions and other information as you and the Company may
reasonably require to confirm that the proposed sale complies with the
foregoing restrictions.  We further
understand that the Notes purchased by us will bear a legend to the foregoing
effect.

 

4.             We are an “accredited investor” (as
defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act) and have
such knowledge and experience in financial and business matters as

 

C-1

 

to be capable of evaluating the
merits and risks of our investment in the Notes, and we and any accounts for
which we are acting are each able to bear the economic risk of our or its
investment.

 

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

 

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

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [Name of Transferee]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signature

  
	
   

  	
   

  	
   

  

 

C-2

 

EXHIBIT D

 

Form of Certificate to Be Delivered in

Connection with Transfers Pursuant to Regulation S

 

	
   

  	
   

  	
                  ,      

  
	
   

  
	
  Re:

  	
   

  	
  Samsonite
  Corporation (the “Company”)

  Floating Rate Senior Notes due 2010 (the “Notes”)

  	
   

  
						

 

Dear Sirs:

 

In connection with our proposed sale of
€                 
aggregate principal amount of the Notes, we confirm that such sale has been
effected pursuant to and in accordance with Regulation S under the Securities
Act of 1933, as amended (the “Securities Act”), and, accordingly, we represent
that:

 

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

 

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

 

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

 

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

 

(5)           we understand that,
on any proposed resale of any Notes, we will be required to furnish to you and
the Company such certifications, legal opinions and other information as you
and the Company may reasonably require to confirm that the proposed sale
complies with the foregoing restrictions. 
We further understand that the Notes purchased by us will bear a legend
to the foregoing effect; and

 

(6)           we have advised the
transferee of the transfer restrictions applicable to the Notes.

 

D-1

 

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

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [Name of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signature

  

 

D-2

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