Document:

Credit Agreement

 EXHIBIT 10.19 
  
 CREDIT AGREEMENT 
  
 among 
  
 CHATTEM, INC., 
  
 as Borrower, 
  
 THE DOMESTIC
SUBSIDIARIES OF BORROWER, 
  
 as Guarantors, 
  
 THE LENDERS IDENTIFIED HEREIN, 
  
 AND 
  
 BANK OF AMERICA, N.A., 
  
 as Agent 
  
 DATED AS OF FEBRUARY 26, 2004 
  
 BANC OF AMERICA SECURITIES LLC, 
  
 as Sole Lead Arranger and Book Manager 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 SECTION 1 DEFINITIONS AND ACCOUNTING TERMS
	  	1
	 1.1
	  	 Definitions
	  	1
	 1.2
	  	 Computation of Time Periods and Other Definitional Provisions
	  	19
	 1.3
	  	 Accounting Terms
	  	19
	 SECTION 2 CREDIT FACILITIES
	  	20
	 2.1
	  	 Revolving Loans
	  	20
	 2.2
	  	 Letter of Credit Subfacility
	  	22
	 2.3
	  	 Swingline Loans
	  	28
	 2.4
	  	 Continuations and Conversions
	  	30
	 2.5
	  	 Minimum Amounts
	  	31
	 2.6
	  	 Notes
	  	31
	 SECTION 3 GENERAL PROVISIONS APPLICABLE TO LOANS
	  	32
	 3.1
	  	 Interest
	  	32
	 3.2
	  	 Place and Manner of Payments
	  	32
	 3.3
	  	 Prepayments
	  	33
	 3.4
	  	 Fees
	  	33
	 3.5
	  	 Payment in full at Maturity
	  	34
	 3.6
	  	 Computations of Interest and Fees
	  	34
	 3.7
	  	 Pro Rata Treatment
	  	35
	 3.8
	  	 Allocation of Payments After Acceleration
	  	36
	 3.9
	  	 Sharing of Payments
	  	37
	 3.10
	  	 Capital Adequacy
	  	38
	 3.11
	  	 Inability To Determine Interest Rate
	  	38
	 3.12
	  	 Illegality
	  	39
	 3.13
	  	 Requirements of Law
	  	39
	 3.14
	  	 Taxes
	  	40
	 3.15
	  	 Indemnity
	  	42
	 3.16
	  	 Replacement of Lenders
	  	42
	 SECTION 4 GUARANTY
	  	43
	 4.1
	  	 Guaranty of Payment
	  	43
	 4.2
	  	 Obligations Unconditional
	  	43
	 4.3
	  	 Modifications
	  	44
	 4.4
	  	 Waiver of Rights
	  	44
	 4.5
	  	 Reinstatement
	  	44
	 4.6
	  	 Remedies
	  	45
	 4.7
	  	 Limitation of Guaranty
	  	45
	 4.8
	  	 Rights of Contribution
	  	45
	 SECTION 5 CONDITIONS PRECEDENT
	  	46
	 5.1
	  	 Closing Conditions
	  	46
	 5.2
	  	 Conditions to All Extensions of Credit
	  	48
	 SECTION 6 REPRESENTATIONS AND WARRANTIES
	  	49
	 6.1
	  	 Financial Condition
	  	49
	 6.2
	  	 No Material Change
	  	49

  

 -i- 

					
	 6.3
	  	 Organization and Good Standing
	  	50
	 6.4
	  	 Due Authorization
	  	50
	 6.5
	  	 No Conflicts
	  	50
	 6.6
	  	 Consents
	  	50
	 6.7
	  	 Enforceable Obligations
	  	50
	 6.8
	  	 No Default
	  	50
	 6.9
	  	 Ownership
	  	51
	 6.10
	  	 Indebtedness
	  	51
	 6.11
	  	 Litigation
	  	51
	 6.12
	  	 Taxes
	  	51
	 6.13
	  	 Compliance with Law
	  	51
	 6.14
	  	 ERISA
	  	51
	 6.15
	  	 Subsidiaries
	  	52
	 6.16
	  	 Use of Proceeds; Margin Stock
	  	53
	 6.17
	  	 Government Regulation
	  	53
	 6.18
	  	 Environmental Matters
	  	53
	 6.19
	  	 Intellectual Property
	  	54
	 6.20
	  	 Solvency
	  	55
	 6.21
	  	 Investments
	  	55
	 6.22
	  	 No Financing of Corporate Takeovers
	  	55
	 6.23
	  	 Jurisdiction of Organization, Etc.
	  	55
	 6.24
	  	 Disclosure
	  	55
	 6.25
	  	 Licenses, etc.
	  	55
	 6.26
	  	 No Burdensome Restrictions
	  	55
	 6.27
	  	 Brokers’ Fees
	  	56
	 6.28
	  	 Labor Matters
	  	56
	 6.29
	  	 Collateral Documents
	  	56
	 6.30
	  	 Subordination
	  	56
	 SECTION 7 AFFIRMATIVE COVENANTS
	  	56
	 7.1
	  	 Information Covenants
	  	56
	 7.2
	  	 Preservation of Existence and Franchises
	  	59
	 7.3
	  	 Books and Records
	  	59
	 7.4
	  	 Compliance with Law
	  	59
	 7.5
	  	 Payment of Taxes and Other Indebtedness
	  	60
	 7.6
	  	 Insurance
	  	60
	 7.7
	  	 Maintenance of Property
	  	61
	 7.8
	  	 Performance of Obligations
	  	61
	 7.9
	  	 Collateral
	  	61
	 7.10
	  	 Use of Proceeds
	  	61
	 7.11
	  	 Audits/Inspections
	  	61
	 7.12
	  	 Financial Covenants
	  	62
	 7.13
	  	 Additional Credit Parties
	  	62
	 7.14
	  	 Ownership of Subsidiaries
	  	63
	 7.15
	  	 Appraisal Reports
	  	63
	 7.16
	  	 Post-Closing Matters
	  	63
	 SECTION 8 NEGATIVE COVENANTS
	  	63
	 8.1
	  	 Indebtedness
	  	64
	 8.2
	  	 Liens
	  	64

  

 -ii- 

					
	 8.3
	  	 Nature of Business
	  	65
	 8.4
	  	 Consolidation and Merger
	  	65
	 8.5
	  	 Sale or Lease of Assets
	  	65
	 8.6
	  	 Advances, Investments and Loans
	  	66
	 8.7
	  	 Restricted Payments
	  	66
	 8.8
	  	 Transactions with Affiliates
	  	66
	 8.9
	  	 Fiscal Year; Organizational Documents; Floating Rate Indenture
	  	66
	 8.10
	  	 Prepayments of Indebtedness
	  	67
	 8.11
	  	 Subordinated Debt
	  	67
	 8.12
	  	 Limitations
	  	67
	 8.13
	  	 Sale Leasebacks
	  	67
	 8.14
	  	 Negative Pledges
	  	68
	 8.15
	  	 Capital Expenditures
	  	68
	 8.16
	  	 Operating Leases
	  	68
	 SECTION 9 EVENTS OF DEFAULT
	  	68
	 9.1
	  	 Events of Default
	  	68
	 9.2
	  	 Acceleration; Remedies
	  	71
	 SECTION 10 AGENCY PROVISIONS
	  	72
	 10.1
	  	 Appointment and Authorization of Agent
	  	72
	 10.2
	  	 Delegation of Duties
	  	72
	 10.3
	  	 Liability of Agent
	  	73
	 10.4
	  	 Reliance by Agent
	  	73
	 10.5
	  	 Notice of Default
	  	73
	 10.6
	  	 Credit Decision; Disclosure of Information by Agent
	  	74
	 10.7
	  	 Indemnification of Agent
	  	74
	 10.8
	  	 Agent in its Individual Capacity
	  	75
	 10.9
	  	 Successor Agent
	  	75
	 10.10
	  	 Agent May File Proofs of Claim
	  	75
	 10.11
	  	 Collateral and Guaranty Matters
	  	76
	 10.12
	  	 Other Agents; Arrangers and Managers
	  	77
	 SECTION 11 MISCELLANEOUS
	  	77
	 11.1
	  	 Notices
	  	77
	 11.2
	  	 Right of Set-Off
	  	78
	 11.3
	  	 Benefit of Agreement
	  	78
	 11.4
	  	 No Waiver; Remedies Cumulative
	  	81
	 11.5
	  	 Payment of Expenses; Indemnification
	  	81
	 11.6
	  	 Amendments, Waivers and Consents
	  	83
	 11.7
	  	 Counterparts
	  	84
	 11.8
	  	 Headings
	  	84
	 11.9
	  	 USA PATRIOT Act Notice
	  	84
	 11.10
	  	 Survival of Indemnification and Representations and Warranties
	  	85
	 11.11
	  	 Governing Law; Venue
	  	85
	 11.12
	  	 Waiver of Jury Trial
	  	85
	 11.13
	  	 Time
	  	86
	 11.14
	  	 Severability
	  	86
	 11.15
	  	 Entirety
	  	86
	 11.16
	  	 Binding Effect; Further Assurances
	  	86
	 11.17
	  	 Designated Senior Indebtedness
	  	86

  

 -iii- 

 SCHEDULES 
  

			
	 Schedule 1.1(a)
	  	Commitment Percentages
	 Schedule 1.1(b)
	  	Existing Permitted Investments
	 Schedule 6.10
	  	Indebtedness
	 Schedule 6.15
	  	Subsidiaries
	 Schedule 6.18
	  	Environmental Matters
	 Schedule 6.19
	  	Intellectual Property
	 Schedule 6.23
	  	Jurisdiction of Organization
	 Schedule 7.6
	  	Insurance
	 Schedule 8.2
	  	Liens
	 Schedule 8.8
	  	Affiliate Transactions
	 Schedule 11.1
	  	Notices

  
 EXHIBITS 
  

			
	 Exhibit 2.1
	  	Form of Notice of Borrowing
	 Exhibit 2.3
	  	Form of Swingline Loan Notice
	 Exhibit 2.4
	  	Form of Notice of Continuation/Conversion
	 Exhibit 2.6(a)
	  	Form of Revolving Note
	 Exhibit 2.6(b)
	  	Form of Swingline Note
	 Exhibit 7.1(c)
	  	Form of Officer’s Certificate
	 Exhibit 7.13
	  	Form of Joinder Agreement
	 Exhibit 11.3
	  	Form of Assignment and Assumption

  
  

 -iv- 

 CREDIT AGREEMENT 
  
 THIS CREDIT AGREEMENT (this “Credit Agreement”), is entered into as of February 26, 2004 among CHATTEM,
INC., a Tennessee corporation (the “Borrower”), each of the Borrower’s Domestic Subsidiaries, individually a “Guarantor” and collectively the “Guarantors”), the Lenders (as defined herein), and
BANK OF AMERICA, N.A., as agent for the Lenders (in such capacity, the “Agent”). 
  
 RECITALS 
  
 WHEREAS, the Borrower has requested that the Lenders provide credit facilities for the purposes hereinafter set forth; and 
  
 WHEREAS, the Lenders have agreed to make the requested credit facilities available to the Borrower on the terms and conditions hereinafter set
forth; 
  
 NOW, THEREFORE, IN CONSIDERATION of the premises
and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 SECTION 1 
  
 DEFINITIONS AND ACCOUNTING TERMS 
  

	 	1.1	Definitions. 

  
 As used herein, the following terms shall have the meanings herein specified unless the context otherwise requires. Defined terms herein shall include in
the singular number the plural and in the plural the singular: 
  
 “Additional Credit Party” means each Person that becomes a Guarantor after the Closing Date, as provided in Section 7.13. 
  
 “Adjusted Base Rate” means the Base Rate plus the Applicable Percentage. 
  
 “Adjusted Eurodollar Rate” means the
Eurodollar Rate plus the Applicable Percentage. 
  
 “Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Agent. 
  
 “Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more
intermediaries, Controls or is Controlled by or is under common Control with the Person specified. “Control” means the possession, directly or indirectly, of the power (a) to vote 10% or more of the securities having ordinary voting
power for the election of directors of a Person or (b) to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlled” has the
meaning correlative thereto. 
  

 “Agent” means Bank of America, N.A. or any successor administrative
agent appointed pursuant to Section 10.9. 
  
 “Agent’s Office” means the Agent’s address and, as appropriate, account as set forth on Schedule 11.1 or such other address or account as the Agent may from time to time notify the Borrower and the Lenders.

  
 “Agent-Related Persons”
means the Agent, together with its Affiliates (including, in the case of Bank of America in its capacity as the Agent, the Arranger), and the officers, directors, employees, agents and attorneys-in-fact of such Persons and Affiliates. 
  
 “Applicable Percentage” means for purposes
of calculating the applicable interest rate for any day for Loans, the applicable rate for any day for the Letter of Credit Fees and the applicable rate for any day for the Unused Fee, the appropriate applicable percentages corresponding to the
Leverage Ratio in effect as of the most recent Calculation Date as shown below: 
  

									
	 Pricing
Level

	  	 Leverage
Ratio

	  	 Applicable
Percentage For
Eurodollar Loans
and Letter of
Credit Fee

	  	 Applicable
Percentage
For Base
Rate Loans

	  	 Applicable
Percentage for
Unused Fees

	I	  	£ 2.50 to 1.0	  	1.75%	  	0.25%	  	0.375%
	II	  	 > 2.50 to 1.0
 but £3.25 to 1.0
	  	2.00%	  	0.50%	  	0.375%
	III	  	 > 3.25 to 1.0 but
 £ 3.75 to 1.0
	  	2.25%	  	0.75%	  	0.500%
	IV	  	> 3.75 to 1.0	  	2.50%	  	1.00%	  	0.500%

  
 The Applicable
Percentage shall, in each case, be determined and adjusted quarterly on the date (each a “Calculation Date”) five Business Days after the date by which the Borrower is required to provide the officer’s certificate in
accordance with the provisions of Section 7.1(c); provided, however, (i) the initial Applicable Percentages shall be based on Pricing Level III (as shown above) and shall remain at Pricing Level III until the first Calculation Date
following the fiscal quarter ending May 31, 2004 and, thereafter, the Applicable Percentage shall be determined by the then current Leverage Ratio, and (ii) if the Borrower fails to provide the officer’s certificate required by Section 7.1(c)
on or before the most recent Calculation Date or fails to deliver a copy of such officer’s certificate to the Agent as required by Section 7.1(c), the Applicable Percentage from such Calculation Date shall be based on Pricing Level IV until
such time that an appropriate officer’s certificate is provided whereupon the Applicable Percentage shall be determined by the then current Leverage Ratio. Each Applicable Percentage shall be effective from one Calculation Date until the next
Calculation Date. Any adjustment in the Applicable Percentage shall be applicable to all existing Loans and Letters of Credit as well as any new Loans or Letters of Credit made or issued. 
  
 “Approved Fund” has the meaning assigned to
such term in Section 11.3(g). 
  

 2 

 “Arranger” means Banc of America Securities LLC, in its capacity as sole
lead arranger and sole book manager. 
  
 “Asset Disposition” means the disposition of any or all of the assets of the Borrower or any of its Subsidiaries whether by sale, lease, transfer or otherwise. 
  
 “Assignment and Assumption” means an Assignment and Assumption substantially the form of
Exhibit 11.3(b). 
  
 “Bank of
America” means Bank of America, N.A. and its successors. 
  
 “Bankruptcy Code” means the Bankruptcy Code in Title 11 of the United States Code, as amended, modified, succeeded or replaced from time to time. 
  
 “Base Rate” means for any day a fluctuating
rate per annum equal to the higher of (a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate.” The “prime rate”
is a rate set by Bank of America based upon various factors including Bank of America’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at,
above, or below such announced rate. Any change in the “prime rate” announced by Bank of America shall take effect at the opening of business on the day specified in the public announcement of such change. 
  
 “Base Rate Loan” means any Loan bearing
interest at a rate determined by reference to the Base Rate. 
  
 “Borrower” means the Person identified as such in the heading hereof, together with any successors and permitted assigns. 
  
 “Business Day” means any day other than a Saturday, a Sunday, a legal holiday or a day on
which banking institutions are authorized or required by law or other governmental action to close in Charlotte, North Carolina; provided that in the case of Eurodollar Loans, such day is also a day on which dealings between banks are carried on in
Dollar deposits in the London interbank market. 
  
 “Calculation Date” has the meaning set forth in the definition of Applicable Percentage. 
  
 “Capital Expenditures” means all expenditures of the Credit Parties and their Subsidiaries which, in accordance with
GAAP, would be classified as capital expenditures, including, without limitation, Capital Leases. 
  
 “Capital Lease” means, as applied to any Person, any lease of any property (whether real, personal or mixed) by that
Person as lessee which, in accordance with GAAP, is or should be accounted for as a capital lease on the balance sheet of that Person. 
  
 “Capital Stock” means (i) in the case of a corporation, capital stock, (ii) in the case of an association or business
entity, any and all shares, interests, participations, rights or other equivalents (however designated) of capital stock, (iii) in the case of a partnership, partnership 

  

 3 

 
interests (whether general or limited), (iv) in the case of a limited liability company, membership interests and (v) any other interest or participation
that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person. 
  
 “Cash Collateralize” has the meaning assigned to such term in Section 2.2(g). 
  
 “Cash Equivalents” means (a) securities
issued or directly and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof (provided that the full faith and credit of the United States of America is pledged in support thereof) having maturities of
not more than twelve months from the date of acquisition, (b) Dollar denominated (or with respect to Foreign Subsidiaries, Dollar denominated and non Dollar denominated) time deposits and certificates of deposit of (i) any Lender, (ii) any domestic
(or with respect to Foreign Subsidiaries, any domestic or nondomestic) commercial bank of recognized standing having capital and surplus in excess of $500,000,000 or (iii) any bank whose short-term commercial paper rating from S&P is at least
A-1 or the equivalent thereof or from Moody’s is at least P-1 or the equivalent thereof (any such bank being an “Approved Bank”), in each case with maturities of not more than 270 days from the date of acquisition, (c)
commercial paper and variable or fixed rate notes issued by any Approved Bank (or by the parent company thereof) or any variable rate notes issued by, or guaranteed by, any domestic corporation rated A-1 (or the equivalent thereof) or better by
S&P or P-1 (or the equivalent thereof) or better by Moody’s and maturing within six months of the date of acquisition, (d) repurchase agreements with a bank or trust company (including any of the Lenders) or recognized securities dealer
having capital and surplus in excess of $500,000,000 for direct obligations issued by or fully guaranteed by the United States of America in which the Borrower shall have a perfected first priority security interest (subject to no other Liens) and
having, on the date of purchase thereof, a fair market value of at least 100% of the amount of the repurchase obligations and (e) Investments, classified in accordance with GAAP as current assets, in money market investment programs registered under
the Investment Company Act of 1940, as amended, which are administered by reputable financial institutions having capital of at least $500,000,000 and the portfolios of which are limited to Investments of the character described in the foregoing
subdivisions (a) through (d). 
  
 “Change
of Control” means any of the following events: either (i) a “person” or a “group” (within the meaning of Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934) becomes the “beneficial owner” (as
defined in Rule 13d-3 under the Securities Exchange Act of 1934) of more than 35% of the then outstanding voting stock of the Borrower, (ii) a majority of the Board of Directors of the Borrower shall consist of individuals who are not Continuing
Directors; “Continuing Director” means, as of any date of determination, (A) an individual who on the date two years prior to such determination date was a member of the Borrower’s Board of Directors or (B) any new Director
whose nomination for election by the Borrower’s shareholders was approved by a vote of at least 75% of the Directors then still in office who either were Directors on the date two years prior to such determination date or whose nomination for
election was previously so approved, or (iii) the occurrence of a Change of Control (under and as defined in either the Floating Rate Indenture or the Subordinated Indenture). 
  
 “Closing Date” means the date hereof. 
  
 “Code” means the Internal Revenue Code of
1986, as amended, modified, succeeded or replaced from time to time. 
  

 4 

 “Collateral” means all collateral referred to in and covered by the
Collateral Documents. 
  
 “Collateral
Documents” means the Security Agreement, the Pledge Agreement and such other documents executed and delivered in connection with the creation of the Agent’s security interests, for the benefit of the Lenders, in the assets of the
Credit Parties. 
  
 “Commitments” means any of the Revolving Commitments, the LOC Commitment and/or the Swingline Commitment. 
  
 “Credit Documents” means this Credit Agreement, the Notes, the LOC Documents, any Joinder Agreement, the Collateral
Documents and the Fee Letter. 
  
 “Credit
Parties” means the Borrower and the Guarantors, and “Credit Party” means any one of them. 
  
 “Credit Party Obligations” means, without duplication, (a) all of the obligations of the Credit Parties to the Lenders
and the Agent, whenever arising, under this Credit Agreement, the Notes, the Collateral Documents or any of the other Credit Documents to which the Borrower or any other Credit Party is a party (including, but not limited to, any interest accruing
after the occurrence of a Bankruptcy Event with respect to any Credit Party, regardless of whether such interest is an allowed claim under the Bankruptcy Code), (b) all liabilities and obligations, whenever arising, owing from the Borrower to any
Lender, or any Affiliate of a Lender, arising under any Hedging Agreement and (c) all obligations under any Treasury Management Agreement between any Credit Party and any Lender or Affiliate of a Lender. 
  
 “Default” means any event, act or condition
which with notice or lapse of time, or both, would constitute an Event of Default. 
  
 “Defaulting Lender” means, at any time, any Lender that, at such time (a) has failed to make a Loan or purchase a
participation interests required pursuant to the terms of this Credit Agreement, (b) has failed to pay to the Agent or any Lender an amount owed by such Lender pursuant to the terms of this Credit Agreement or (c) has been deemed insolvent or has
become subject to a bankruptcy or insolvency proceeding or to a receiver, trustee or similar official. 
  
 “Domestic Subsidiaries” means all Subsidiaries of the Borrower that are domiciled, incorporated or organized under the
laws of any state of the United States or the District of Columbia. 
  
 “Dollars” and “$” means dollars in lawful currency of the United States of America. 
  
 “Earn Out Obligations” means, with respect to an acquisition of all of the Capital Stock of another Person, all or
substantially all of the assets of another Person or a brand or product line of another Person, all obligations of the Borrower or any Subsidiary to make earn out or other contingency payments pursuant to the documentation relating to such
transaction. The amount of any Earn Out Obligation shall be deemed to be the aggregate liability in respect thereof as recorded on the balance sheet of the Borrower and its Subsidiaries in accordance with GAAP. 
  

 5 

 “EBITDA” means, for any period, with respect to the Borrower and its
Subsidiaries on a consolidated basis, the sum of (a) Net Income for such period (excluding the effect of any extraordinary or other non-recurring gains and losses outside of the ordinary course of business) plus (b) an amount which, in the
determination of Net Income for such period has been deducted for (i) Interest Expense for such period, (ii) total federal, state, foreign or other income taxes for such period, (iii) all depreciation and amortization for such period, (iv) to the
extent incurred during the applicable period, one-time charges in an aggregate amount not to exceed $25,000,000 in connection with the settlement of the Borrower’s phenylpropanolamine litigation, (v) for the fiscal quarter period ending on
February 29, 2004, any non-recurring charges incurred by the Borrower during such period in connection with the refinancing of the Existing Indenture and the Existing Credit Agreement, including all premiums, fees and legal costs related thereto in
an aggregate amount not to exceed $5,500,000 in the case of non-cash charges and $8,000,000 in the case of cash charges and (vi) to the extent incurred during the applicable period and subsequent to November 30, 2003, the amount of any
write-down of goodwill required under FASB 142 in an aggregate amount not to exceed $37,000,000, all as determined in accordance with GAAP. 
  
 “Eligible Assignee” has the meaning assigned to such term in Section 11.3(g). 
  
 “Environmental Laws” means any and all
federal, state, local, foreign and other applicable statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the
protection of the environment or the release of any materials into the environment, including those related to hazardous substances or wastes, air emissions and discharges to waste or public systems. 
  
 “Equity Issuance” means any issuance by the
Borrower to any Person of (a) shares of its Capital Stock, (b) any shares of its Capital Stock pursuant to the exercise of options or warrants or (c) any shares of its Capital Stock pursuant to the conversion of any debt securities to equity;
provided, however, the term “Equity Issuance” shall not include the issuance by the Borrower of shares of its Capital Stock to employees and directors pursuant to employees or directors stock plans. 
  
 “ERISA” means the Employee Retirement
Income Security Act of 1974, as amended, and any successor statute thereto, as interpreted by the rules and regulations thereunder, all as the same may be in effect form time to time. References to sections of ERISA shall be construed also to refer
to any successor sections. 
  
 “ERISA
Affiliate” means an entity, whether or not incorporated, which is under common control with any Credit Party or any of its Subsidiaries within the meaning of Section 4001(a)(14) of ERISA, or is a member of a group which includes any Credit
Party or any of its Subsidiaries and which is treated as a single employer under Sections 414(b), (c), (m), or (o) of the Code. 
  
 “Eurodollar Base Rate” means, for any Interest Period with respect to any Eurodollar Loan: 
  

	 	(a)	 the rate per annum equal to the rate determined by the Agent to be the offered rate that appears on the page of the Telerate screen (or any successor thereto) that
displays an average British Bankers Association Interest Settlement Rate for deposits in Dollars (for delivery on the first day of such Interest Period) with a term 

  

 6 

	 	 
equivalent to such Interest Period, determined as of approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period,
or 

  

	 	(b)	if the rate referenced in the preceding clause (a) does not appear on such page or service or such page or service shall not be available, the rate per annum equal to the rate
determined by the Agent to be the offered rate on such other page or other service that displays an average British Bankers Association Interest Settlement Rate for deposits in Dollars (for delivery on the first day of such Interest Period) with a
term equivalent to such Interest Period, determined as of approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period, or 

  

	 	(c)	if the rates referenced in the preceding clauses (a) and (b) are not available, the rate per annum (rounded upward to the next 1/100th of 1%) determined by the Agent as the rate of interest at which deposits in Dollars for delivery on the first day of such Interest Period in same day funds in
the approximate amount of the Eurodollar Loan being made, continued or converted by Bank of America and with a term equivalent to such Interest Period would be offered by Bank of America’s London Branch to major banks in the London interbank
eurodollar market at their request at approximately 4:00 p.m. (London time) two Business Days prior to the first day of such Interest Period. 

  
 “Eurodollar Loan” means any Loan bearing interest based at a rate determined by reference to the Eurodollar Rate.

  
 “Eurodollar Rate” means, for
any Interest Period with respect to any Eurodollar Loan, a rate per annum determined by the Agent to be equal to the quotient obtained by dividing (a) the Eurodollar Base Rate for such Eurodollar Loan for such Interest Period by (b) one minus the
Eurodollar Reserve Percentage for such Eurodollar Loan for such Interest Period. 
  
 “Eurodollar Reserve Percentage” means, for any day during any Interest Period, the reserve percentage (expressed as a
decimal, carried out to five decimal places) in effect on such day, whether or not applicable to any Lender, under regulations issued from time to time by the Board of Governors of the Federal Reserve System for determining the maximum reserve
requirement (including any emergency, supplemental or other marginal reserve requirement) with respect to Eurocurrency funding (currently referred to as “Eurocurrency liabilities”). The Eurodollar Rate for each outstanding Eurodollar Loan
shall be adjusted automatically as of the effective date of any change in the Eurodollar Reserve Percentage. 
  
 “Event of Default” has the meaning assigned to such term in Section 9.1. 
  
 “Extension of Credit” means, as to any
Lender, the making of a Loan by such Lender (or a participation therein by a Lender) or the issuance or extension of, or participation in, a Letter of Credit by such Lender. 
  
 “Existing Credit Agreement” means that certain Credit Agreement dated as of March 28, 2002
among the Borrower, its Subsidiaries party thereto, the financial institutions party thereto and 

  

 7 

 
Bank of America, N.A., as agent, as amended, modified, restated or supplemented from time to time. 
  
 “Existing Indenture” means that certain
Indenture dated as of March 24, 1998 among the Borrower, Signal and SouthTrust Bank of Alabama, National Association, as trustee, as amended, modified, restated or supplemented from time to time. 
  
 “Federal Funds Rate” means, for any day,
the rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers on such day, as published by the Federal Reserve Bank of New York on
the Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next
succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to Bank
of America on such day on such transactions as determined by the Agent. 
  
 “Fee Letter” means that certain letter agreement, dated as of February 13, 2004, between Bank of America, BAS and the Borrower, as amended, modified, supplemented or replaced from time to time.

  
 “Fixed Charge Coverage
Ratio” means, as of the end of each fiscal quarter of the Borrower, for the twelve month period ending on such date, with respect to the Borrower and its Subsidiaries on a consolidated basis, the ratio of (a) EBITDA for the applicable
period minus Capital Expenditures for the applicable period minus federal, state and other income taxes paid in cash for the applicable period to (b) the sum of (i) cash Interest Expense for the applicable period plus (ii) Scheduled Funded Debt
Payments for the applicable period (including implied amortization calculated as one fifth (1/5th) of the aggregate of the outstanding principal amount of the Loans as of the end of the applicable period) plus (iii) cash dividends (other than those
permitted by clause (i) of Section 8.7) paid during the applicable period. 
  
 “Floating Rate Indenture” means that certain Indenture with respect to the Floating Rate Senior Notes due 2010 dated as of February 26, 2004 among the Borrower, the guarantors party thereto and
SouthTrust Bank, as trustee, as amended, modified, restated or supplemented from time to time. 
  
 “Foreign Subsidiaries” means all Subsidiaries of the Borrower that are not Domestic Subsidiaries. 
  
 “Fund” has the meaning assigned to such
term in Section 11.3(g). 
  
 “Funded
Debt” means, with respect to any Person, without duplication, (a) all obligations (other than Hedging Agreements) of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar
instruments, or upon which interest payments are customarily made, (c) all obligations of such Person under conditional sale or other title retention agreements relating to assets purchased by such Person (other than customary reservations or
retentions of title under agreements with suppliers entered into in the ordinary course of business), (d) all obligations of such Person issued or assumed as the deferred purchase 

  

 8 

 
price of assets or services purchased by such Person (other than trade debt incurred in the ordinary course of business and due within six months of the
incurrence thereof, but including Earn Out Obligations) which would appear as liabilities on a balance sheet of such Person in accordance with GAAP, (e) the implied principal component of all obligations of such Person under Capital Leases, (f)
commercial letters of credit and the maximum amount of all performance and standby letters of credit issued or bankers’ acceptances facilities created for the account of such Person and, without duplication, all drafts drawn thereunder (to the
extent unreimbursed), (g) all preferred Capital Stock issued by such Person and required by the terms thereof to be redeemed, or for which mandatory sinking fund payments are due, by a fixed date), (h) the principal portion of all obligations of
such Person under Synthetic Leases, (i) the aggregate amount of uncollected accounts receivable of such Person subject at such time to a sale of receivables (or similar transaction) to the extent such transaction is effected with recourse to such
Person (whether or not such transaction would be reflected on the balance sheet of such Person in accordance with GAAP), (j) all Funded Debt of others secured by (or for which the holder of such Funded Debt has an existing right, contingent or
otherwise, to be secured by) any Lien on, or payable out of the proceeds of production from, assets owned or acquired by such Person, whether or not the obligations secured thereby have been assumed, (k) all Guaranty Obligations of such Person with
respect to Funded Debt of another Person and (l) the Funded Debt of any partnership or unincorporated joint venture in which such Person is a general partner or a joint venturer to the extent such Indebtedness is recourse to such Person. 

 
 “GAAP” means generally accepted
accounting principles in the United States applied on a consistent basis and subject to Section 1.3. 
  
 “Governmental Authority” means any federal, state, local, provincial or foreign court or governmental agency, authority,
instrumentality or regulatory body. 
  
 “Guarantor” means each of the Domestic Subsidiaries of the Borrower and each Additional Credit Party which has executed a Joinder Agreement, together with their successors and assigns. 
  
 “Guaranty Obligations” means, with respect
to any Person, without duplication, any obligations (other than endorsements in the ordinary course of business of negotiable instruments for deposit or collection) guaranteeing or intended to guarantee any Indebtedness, leases, dividends or other
obligations of any other Person in any manner, whether direct or indirect, and including without limitation any obligation, whether or not contingent, (a) to purchase any such Indebtedness or other obligation or any property constituting security
therefor, (b) to advance or provide funds or other support for the payment or purchase of such Indebtedness or obligation or to maintain working capital, solvency or other balance sheet condition of such other Person (including, without limitation,
maintenance agreements, comfort letters, take or pay arrangements, put agreements or similar agreements or arrangements) for the benefit of the holder of Indebtedness of such other Person, (c) to lease or purchase property, securities or services
primarily for the purpose of assuring the owner of such Indebtedness or obligation, or (d) to otherwise assure or hold harmless the owner of such Indebtedness or obligation against loss in respect thereof. The amount of any Guaranty Obligation
hereunder shall (subject to any limitations set forth therein) be deemed to be an amount equal to the outstanding principal amount (or maximum principal amount, if larger) of the Indebtedness in respect of which such Guaranty Obligation is made.

  

 9 

 “Hazardous Materials” means any substance, material or waste defined or
regulated in or under any Environmental Laws. 
  
 “Hedging Agreement” means any interest rate protection agreement, foreign currency exchange agreement, commodity purchase or option agreement or other interest or exchange rate or commodity price hedging agreement.

  
 “Honor Date” has the meaning
assigned to such term in Section 2.2(c). 
  
 “Indebtedness” means, with respect to any Person, without duplication, (a) all obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments,
or upon which interest payments are customarily made, (c) all obligations of such Person under conditional sale or other title retention agreements relating to assets purchased by such Person (other than customary reservations or retentions of title
under agreements with suppliers entered into in the ordinary course of business), (d) all obligations of such Person issued or assumed as the deferred purchase price of assets or services purchased by such Person (other than trade debt incurred in
the ordinary course of business and due within six months of the incurrence thereof, but including Earn Out Obligations) which would appear as liabilities on a balance sheet of such Person, (e) all obligations of such Person under take-or-pay or
similar arrangements or under commodities agreements, (f) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on, or payable out of the
proceeds of production from, assets owned or acquired by such Person, whether or not the obligations secured thereby have been assumed, (g) all Guaranty Obligations of such Person, (h) the principal portion of all obligations of such Person under
Capital Leases, (i) all obligations of such Person under Hedging Agreements, (j) commercial letters of credit and the maximum amount of all standby letters of credit issued or bankers’ acceptances facilities created for the account of such
Person and, without duplication, all drafts drawn thereunder (to the extent unreimbursed), (k) the principal portion of all obligations of such Person under Synthetic Leases, (l) all preferred Capital Stock issued by such Person and which by the
terms thereof could be (at the request of the holders thereof or otherwise) be subject to mandatory sinking fund payments, redemption or other acceleration by a fixed date, (m) all obligations of such Person to repurchase any securities issued by
such Person at any time on or prior to the Maturity Date which repurchase obligations are related to the issuance thereof, including, without limitation, obligations commonly known as residual equity appreciation potential shares, (n) the
Indebtedness of any partnership or unincorporated joint venture in which such Person is a general partner or a joint venturer to the extent such Indebtedness is recourse to such Person and (o) the aggregate amount of uncollected accounts receivable
of such Person subject at such time to a sale of receivables (or similar transaction) to the extent such transaction is effected with recourse to such Person (whether or not such transaction would be reflected on the balance sheet of such Person in
accordance with GAAP). 
  
 “Indemnified
Liabilities” has the meaning assigned to such term in Section 11.5(b). 
  
 “Indemnitees” has the meaning assigned to such term in Section 11.5(b). 
  
 “Interest Expense” means, for any period,
with respect to the Borrower and its Subsidiaries on a consolidated basis, all interest expense, including the interest component under Capital Leases and Synthetic Leases, as determined in accordance with GAAP. 
  

 10 

 “Interest Payment Date” means (a) as to Base Rate Loans and Swingline
Loans, the last Business Day of each fiscal quarter of the Borrower and on the Termination Date and (b) as to Eurodollar Loans, on the last day of each applicable Interest Period and on the Termination Date and in addition if the Interest Period for
a Eurodollar Loan is more than 3 months, then at 3 month intervals beginning on the date 3 months from the beginning of the Interest Period. 
  
 “Interest Period” means, as to Eurodollar Loans, a period of one, two, three and six months’ duration, as the
Borrower may elect, commencing, in each case, on the date of the borrowing (including continuations and conversions thereof); provided, however, (a) if any Interest Period would end on a day which is not a Business Day, such Interest
Period shall be extended to the next succeeding Business Day (except that where the next succeeding Business Day falls in the next succeeding calendar month, then on the next preceding Business Day), (b) no Interest Period shall extend beyond the
Termination Date and (c) where an Interest Period begins on a day for which there is no numerically corresponding day in the calendar month in which the Interest Period is to end, such Interest Period shall end on the last Business Day of such
calendar month. 
  
 “Investment”
means (a) the acquisition (whether for cash, property, services, assumption of Indebtedness, securities or otherwise) of assets (including, without limitation, inventory, fixed assets, trademarks or tradenames), shares of Capital Stock, bonds,
notes, debentures, partnership, joint venture or other ownership interests or other securities of any Person or (b) any deposit with, or advance, loan or other extension of credit to, any Person (other than deposits made in connection with the
purchase of equipment or other assets in the ordinary course of business) or (c) any other capital contribution to or investment in such Person, including, without limitation, any Guaranty Obligation incurred for the benefit of such Person.

  
 “ISP” means, with respect to
any Letter of Credit, the “International Standby Practices 1998” published by the Institute of International Banking Law & Practice (or such later version thereof as may be in effect at the time of issuance). 
  
 “Issuing Lender” means Bank of America.

  
 “Joinder Agreement” means a
Joinder Agreement substantially in the form of Exhibit 7.13. 
  
 “Lenders” means any of the Persons identified as a “Lender” on the signature pages hereto, and any Person which may become a Lender by way of assignment in accordance with the terms hereof,
together with their successors and permitted assigns, and, as the context requires, includes the Issuing Lender and the Swingline Lender. 
  
 “Letter of Credit” means any letter of credit issued by the Issuing Lender for the account of the Borrower in accordance
with the terms of Section 2.2(a). 
  
 “Letter of Credit Application” means an application and agreement for the issuance or amendment of a letter of credit in the form from time to time in use by the Issuing Lender. 
  
 “Letter of Credit Expiration Date” means
the day that is thirty days prior to the Termination Date (or, if such day is not a Business Day, the next preceding Business Day). 
  

 11 

 “Letter of Credit Fee” has the meaning assigned to such term in Section
3.4(b)(i). 
  
 “Leverage Ratio”
means, as of the end of each fiscal quarter of the Borrower, with respect to the Borrower and its Subsidiaries on a consolidated basis, the ratio of (a) Funded Debt on such date to (b) EBITDA for the twelve month period ending on such date.

  
 “Lien” means any mortgage,
pledge, hypothecation, assignment, deposit arrangement, security interest, encumbrance, lien (statutory or otherwise), preference, priority or charge of any kind (including, without limitation, any agreement to give any of the foregoing, any
conditional sale or other title retention agreement, any financing or similar statement or notice filed under the Uniform Commercial Code as adopted and in effect in the relevant jurisdiction or other similar recording or notice statute, and any
lease in the nature thereof). 
  
 “Loan” or “Loans” means the Revolving Loans and/or the Swingline Loans (or a portion of any Revolving Loan or Swingline Loan), individually or collectively, as appropriate. 
  
 “LOC Advance” means, with respect to each
Lender, such Lender’s funding of its participation in any LOC Borrowing in accordance with its Revolving Loan Commitment Percentage. 
  
 “LOC Borrowing” means an extension of credit resulting from a drawing under any Letter of Credit which has not been
reimbursed on the date when made or refinanced as a borrowing of Revolving Loans. 
  
 “LOC Commitment” means the commitment of the Issuing Lender to issue Letters of Credit, and to honor payment obligations
under Letters of Credit hereunder in an aggregate face amount at any time outstanding (together with the amounts of any unreimbursed drawings thereon) of up to the LOC Committed Amount. 
  
 “LOC Committed Amount” means FIVE MILLION DOLLARS ($5,000,000). 
  
 “LOC Documents” means, with respect to any
Letter of Credit, such Letter of Credit, any amendments thereto, any documents delivered in connection therewith, any Letter of Credit Application therefor, and any agreements, instruments, guarantees or other documents (whether general in
application or applicable only to such Letter of Credit) governing or providing for (i) the rights and obligations of the parties concerned or at risk or (ii) any collateral security for such obligations. 
  
 “LOC Obligations” means, at any time, the
sum of (i) the maximum amount which is, or at any time thereafter may become, available to be drawn under Letters of Credit then outstanding, assuming compliance with all requirements for drawings referred to in such Letters of Credit plus
(ii) the aggregate of all Unreimbursed Amounts, including all LOC Borrowings. For all purposes of this Credit Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by
reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding” in the amount so remaining available to be drawn. 
  

 12 

 “Material Adverse Effect” means a material adverse effect, after taking
into account applicable insurance (to the extent the provider thereof has the financial ability to support its obligations with respect thereto and is not disputing same), on (a) the operations, financial condition, business or prospects of the
Borrower and its Subsidiaries taken as a whole, (b) the ability of a Credit Party to perform its respective obligations under this Credit Agreement, or any of the other Credit Documents or (c) the validity or enforceability of this Credit Agreement,
or any of the other Credit Documents, or the rights and remedies of the Lenders hereunder or thereunder taken as a whole. 
  
 “Material Foreign Subsidiary” means (i) any Foreign Subsidiary that is directly owned by a Credit Party in which the
revenue for any period attributable to such Foreign Subsidiary and its Subsidiaries exceeds 7.5% of consolidated revenue for the Borrower and its Subsidiaries for such period and/or (ii) those Foreign Subsidiaries that are directly owned by Credit
Parties in which the revenue for any period attributable to all such Foreign Subsidiaries and their Subsidiaries exceeds 15% of consolidated revenue for the Borrower and its Subsidiaries for such period. 
  
 “Moody’s” means Moody’s Investors
Service, Inc., or any successor or assignee of the business of such company in the business of rating securities. 
  
 “Multiemployer Plan” means a Plan covered by Title IV of ERISA which is a multiemployer plan as defined in Sections 3(37)
or 4001(a)(3) of ERISA. 
  
 “Multiple
Employer Plan” means a Plan covered by Title IV of ERISA, other than a Multiemployer Plan, which any Credit Party or any of its Subsidiaries or any ERISA Affiliate and at least one employer other than a Credit Party or any of its
Subsidiaries or any ERISA Affiliate are contributing sponsors. 
  
 “Net Income” means, for any period, the net income after taxes for such period of the Borrower and its Subsidiaries on a consolidated basis, as determined in accordance with GAAP. 
  
 “Net Worth” means, as of any date,
shareholders’ equity or net worth of the Borrower and its Subsidiaries on a consolidated basis, as determined in accordance with GAAP. 
  
 “Non-Excluded Taxes” has the meaning assigned to such term in Section 3.14. 
  
 “Note” or “Notes” means
the Revolving Notes and/or the Swingline Note, individually or collectively, as appropriate. 
  
 “Notice of Borrowing” means a request by the Borrower for a Revolving Loan, in the form of Exhibit 2.1.

  
 “Notice of
Continuation/Conversion” means a request by the Borrower to continue an existing Eurodollar Loan to a new Interest Period or to convert a Eurodollar Loan to a Base Rate Loan or a Base Rate Loan to a Eurodollar Loan, in the form of
Exhibit 2.4. 
  

 13 

 “Operating Lease” means, as applied to any Person, any lease (including,
without limitation, leases which may be terminated by the lessee at any time) of any property (whether real, personal or mixed) which is not a Capital Lease other than any such lease in which that Person is the lessor. 
  
 “Participant” has the meaning assigned to
such term in Section 11.3(d). 
  
 “PBGC” means the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA and any successor thereto. 
  
 “Permitted Acquisition” means the acquisition of all of the Capital Stock of another
Person, all or substantially all of the assets of another Person or a brand or product line of another Person, provided that each of the following conditions are satisfied: (a) prior to such acquisition, the Borrower shall deliver to the Agent and
Lenders a Pro Forma Compliance Certificate demonstrating that after giving effect to such acquisition on a Pro Forma Basis, the Credit Parties and their Subsidiaries would have been in compliance with all the financial covenants set forth in Section
7.12, (b) simultaneously with any such acquisition, the Borrower shall have taken all action required under applicable law, or reasonably requested by the Agent, to grant to the Agent, for the benefit of the Lenders, a valid and perfected
first-priority security interest in all the assets acquired pursuant to such acquisition, (c) the acquisition is consummated pursuant to a negotiated acquisition agreement and involves the purchase of a consumer product or product line similar to
those manufactured, distributed or sold by the Borrower as of the date hereof, or of a business that manufactures, distributes or sells one or more consumer products or product lines, similar to those manufactured, distributed or sold by the
Borrower as of the date hereof, (d) after giving effect to the acquisition, the representations and warranties set forth in Section 6 hereof shall be true and correct in all material respects on and as of the date of such acquisition with the same
effect as though made on and as of such date, (e) no Default or Event of Default exists and is continuing or would result from such acquisition and (f) the aggregate consideration (including cash and non-cash consideration, assumption of
liabilities, Earn Out Obligations and any contingency payments associated therewith) paid by the Borrower and its Subsidiaries shall not exceed $50,000,000 in the aggregate for all such acquisitions occurring subsequent to the Closing Date.

  
 “Permitted Investments”
means Investments which are (a) cash or Cash Equivalents, (b) accounts receivable created, acquired or made in the ordinary course of business and payable or dischargeable in accordance with customary trade terms, (c) Investments in any Credit
Party, (d) loans to directors, officers, employees, agents, customers or suppliers in the ordinary course of business for reasonable business expenses, not to exceed in the aggregate $500,000 at any one time, (e) Investments subsequent to the
Closing Date in Foreign Subsidiaries (other than HBA Indemnity Company, Ltd.) not to exceed $5,000,000 in the aggregate at any time outstanding, (f) Investments in (including any insurance premiums funded to) HBA Indemnity Company, Ltd. not to
exceed $3,500,000 in the aggregate in any fiscal year of the Borrower, (g) purchases or redemptions of Capital Stock of the Borrower permitted by Section 8.7, (h) redemptions or repurchases of the notes issued pursuant to the Floating Rate Indenture
permitted by Section 8.10, (i) redemptions or repurchases of Subordinated Debt permitted by Section 8.11, (j) Permitted Acquisitions and (k) all those existing Investments of the Borrower identified on Schedule 1.1(b) attached hereto.

  
 “Permitted Liens” means (a)
Liens securing Credit Party Obligations, (b) Liens for taxes not yet due or Liens for taxes being contested in good faith by appropriate proceedings for which 

  

 14 

 
adequate reserves determined in accordance with GAAP have been established (and as to which the property subject to any such Lien is not yet subject to
foreclosure, sale or loss on account thereof), (c) Liens in respect of property imposed by law arising in the ordinary course of business such as materialmen’s, mechanics’, warehousemen’s, carrier’s, landlords’ and other
nonconsensual statutory Liens which are not due and payable or, if due and payable, are being contested in good faith by appropriate proceedings for which adequate reserves determined in accordance with GAAP have been established (and as to which
the property subject to any such Lien is not yet subject to foreclosure, sale or loss on account thereof), (d) pledges or deposits made in the ordinary course of business to secure payment of worker’s compensation insurance, unemployment
insurance, pensions or social security programs, (e) Liens arising from good faith deposits in connection with or to secure performance of tenders, bids, leases, government contracts, performance and return-of-money bonds and other similar
obligations incurred in the ordinary course of business (other than obligations in respect of the payment of borrowed money), (f) Liens arising from good faith deposits in connection with or to secure performance of statutory obligations and surety
and appeal bonds, (g) easements, rights-of-way, restrictions (including zoning restrictions), minor defects or irregularities in title and other similar charges or encumbrances not, in any material respect, impairing the use of the encumbered
property for its intended purposes, (h) judgment Liens that would not constitute an Event of Default, (i) Liens on assets of any Person securing purchase money Indebtedness (including Capital Leases) to the extent permitted under Section 8.1(e),
provided that any such Lien attaches to such assets concurrently with or within 90 days after the acquisition thereof, (j) Liens arising by virtue of any statutory or common law provision relating to banker’s liens, rights of setoff or
similar rights as to deposit accounts or other funds maintained with a creditor depository institution and (k) Liens existing on the date hereof and identified on Schedule 8.2; provided that no such Lien shall extend to any property other
than the property subject thereto on the Closing Date. 
  
 “Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity. 
  
 “Plan” means any employee benefit plan (as
defined in Section 3(3) of ERISA) which is covered by ERISA and with respect to which any Credit Party or any of its Subsidiaries or any ERISA Affiliate is (or, if such plan were terminated at such time, would under Section 4069 of ERISA be deemed
to be) an “employer” within the meaning of Section 3(5) of ERISA. 
  
 “Pledge Agreement” means the Pledge Agreement, executed and delivered by each of the applicable Credit Parties in favor of the Agent, for the benefit of the Lenders, to secure their obligations under
the Credit Documents, as amended, modified, extended, renewed or replaced from time to time. 
  
 “Pro Forma Basis” means, in connection with any Permitted Acquisition, any Asset Disposition, any Restricted Payment
permitted by Section 8.7 or any prepayment of Subordinated Debt permitted by Section 8.11, that such transaction shall be deemed to have occurred on the first day of the twelve month period ending on the last day of the Borrower’s most recently
completed fiscal quarter for which the Borrower has delivered the officer’s certificate pursuant to Section 7.1(c). 
  
 “Pro Forma Compliance Certificate” means a certificate of a Responsible Officer of the Borrower containing reasonably
detailed calculation of the financial covenants contained in Section 

  

 15 

 
7.12 as of the most recent fiscal quarter end for which the Borrower has delivered financial statements pursuant to Section 7.1(a) or (b) after giving effect
to the applicable transaction on a Pro Forma Basis. 
  
 “Real Properties” means the collective reference to each of the facilities and real properties owned, leased or operated by the Borrower and its Subsidiaries at such time. 
  
 “Regulation D, T, U, or X” means Regulation
D, T, U or X, respectively, of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor to all or a portion thereof. 
  
 “Related Parties” means, with respect to any specified Person, such Person’s
Affiliates and the respective directors, officers, employees, agents and advisors of such Person and such Person’s Affiliates. 
  
 “Reportable Event” means a “reportable event” as defined in Section 4043 of ERISA with respect to which the
notice requirements to the PBGC have not been waived. 
  
 “Required Lenders” means, at any time, any two or more Lenders holding in the aggregate more than fifty percent (50%) of (a) the Revolving Commitments or (b) if the Revolving Commitments have been terminated, the
outstanding Loans, LOC Obligations, Swingline Loans and participations therein. The Revolving Commitment of, and the outstanding Loans held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required
Lenders . 
  
 “Requirement of
Law” means, as to any Person, the articles or certificate of incorporation and by-laws or other organizational or governing documents of such Person, and any law, treaty, rule or regulation or final, non-appealable determination of an
arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or to which any of its material property is subject. 
  
 “Responsible Officer” means the chief executive officer, president or chief financial
officer of a Credit Party. Any document delivered hereunder that is signed by a Responsible Officer of a Credit Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of
such Credit Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Credit Party. 
  
 “Restricted Payment” has the meaning assigned to such term in Section 8.7. 
  
 “Revolving Loan Commitment Percentage”
means, for each Lender, the percentage identified as its Revolving Loan Commitment Percentage on Schedule 1.1(a), as such percentage may be modified in connection with any assignment made in accordance with the provisions of Section 11.3.

  
 “Revolving Commitment”
means, with respect to each Lender, the commitment of such Lender in an aggregate principal amount at any time outstanding of up to such Lender’s Revolving Loan Commitment Percentage of the Revolving Committed Amount, (i) to make Revolving
Loans in accordance with the provisions of Section 2.1(a), (ii) to purchase participation interests in Letters 

  

 16 

 
of Credit in accordance with the provisions of Section 2.2 and (iii) to purchase participation interests in Swingline Loans in accordance with the provisions
of Section 2.3. 
  
 “Revolving Committed
Amount” means TWENTY-FIVE MILLION DOLLARS ($25,000,000) or such lesser amount as the Revolving Committed Amount may be reduced pursuant to Section 2.1(d); provided that the Revolving Committed Amount may be increased to up to FIFTY
MILLION DOLLARS ($50,000,000) pursuant to Section 2.1(e). 
  
 “Revolving Loans” means the Revolving Loans made to the Borrower pursuant to Section 2.1. 
  
 “Revolving Note” or “Revolving Notes” means the promissory notes of the Borrower in favor of each of the
Lenders evidencing the Revolving Loans provided pursuant to Section 2.1, individually or collectively, as appropriate, as such promissory notes may be amended, modified, supplemented, extended, renewed or replaced from time to time and as evidenced
in the form of Exhibit 2.6(a). 
  
 “S&P” means Standard & Poor’s Ratings Group, a division of McGraw Hill, Inc., or any successor or assignee of the business of such division in the business of rating securities. 
  
 “Scheduled Funded Debt Payments” means, as
of the date of determination, for the Borrower and its Subsidiaries, on a consolidated basis, the sum of all scheduled payments of principal on Funded Debt for the applicable period ending on the date of determination (including the principal
component of payments due on Capital Leases and Synthetic Leases during the applicable period ending on the date of determination); it being understood that Scheduled Funded Debt Payments shall not include voluntary prepayments or the mandatory
prepayments required pursuant to Section 3.3. 
  
 “Security Agreement” means that certain Security Agreement dated as of the date hereof and executed and delivered by the Credit Parties in favor of the Agent for the benefit of the Lenders to secure their obligations under
the Credit Documents, as such may be amended, modified, extended, renewed, restated or replaced from time to time. 
  
 “Senior Secured Leverage Ratio” means as of the end of each fiscal quarter of the Borrower, with respect to the Borrower
and its Subsidiaries on a consolidated basis, the ratio of (a) Funded Debt that is secured by any Lien on such date to (b) EBITDA for the twelve month period ending on such date. 
  
 “Signal” means Signal Investment & Management Co., a Delaware corporation, which is a
wholly-owned subsidiary of the Borrower. 
  
 “Single Employer Plan” means any Plan which is covered by Title IV of ERISA, but which is not a Multiemployer Plan. 
  
 “Solvent” means, with respect to any Person as of a particular date, that on such date (a) such Person is able to pay its
debts and other liabilities, contingent obligations and other commitments as they mature in the normal course of business, (b) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s
ability to pay as such 

  

 17 

 
debts and liabilities mature in their ordinary course, (c) such Person is not engaged in a business or a transaction, and is not about to engage in a
business or a transaction, for which such Person’s assets would constitute unreasonably small capital after giving due consideration to the prevailing practice in the industry in which such Person is engaged or is to engage, (d) the fair value
of the assets of such Person is greater than the total amount of liabilities, including, without limitation, contingent liabilities, of such Person and (e) the present fair saleable value of the assets of such Person is not less than the amount that
will be required to pay the probable liability of such Person on its debts as they become absolute and matured. In computing the amount of contingent liabilities at any time, it is intended that such liabilities will be computed at the amount which,
in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability. 
  
 “Subordinated Debt” means the unsecured Indebtedness evidenced by the Subordinated
Indenture or by the guarantees thereof in an aggregate principal amount not to exceed $125,000,000. 
  
 “Subordinated Indenture” means the that certain Indenture with respect to the 7% Subordinated Notes due 2014 dated as of
February 26, 2004 among the Borrower, the guarantors party thereto and SouthTrust Bank, as trustee, as amended, modified, restated or supplemented from time to time. 
  
 “Subsidiary” means, as to any Person, (a) any corporation more than 50% of whose stock of
any class or classes having by the terms thereof ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time, any class or classes of such corporation shall have or might have voting
power by reason of the happening of any contingency) is at the time owned by such Person directly or indirectly through Subsidiaries, and (b) any partnership, association, joint venture or other entity in which such person directly or indirectly
through Subsidiaries has more than a 50% equity interest at any time. 
  
 “Swingline Commitment” means the commitment of the Swingline Lender to make Swingline Loans hereunder in an aggregate principal amount at any time outstanding of up to the Swingline Committed Amount.

  
 “Swingline Committed Amount”
means FIVE MILLION DOLLARS ($5,000,000). 
  
 “Swingline Lender” means Bank of America in its capacity as provider of Swingline Loans, or any successor swingline lender hereunder. 
  

“Swingline Loan” has the meaning assigned to such term in Section 2.3(a). 
  
 “Swingline Loan Notice” means a notice of a
borrowing of Swingline Loans pursuant to Section 2.3(b), which, if in writing, shall be substantially in the form of Exhibit 2.3. 
  
 “SwingLine Note” means the promissory notes of the Borrower in favor of the Swingline Lender evidencing the Swingline
Loans provided pursuant to Section 2.3, as such promissory note may be amended, modified, supplemented, extended, renewed or replaced from time to time and as evidenced in the form of Exhibit 2.6(b). 
  

 18 

 “Synthetic Lease” means any synthetic lease, tax retention operating
lease, off-balance sheet loan or similar off-balance sheet financing product where such transaction is considered borrowed money indebtedness for tax purposes but is classified as an Operating Lease. 
  
 “Termination Date” means February 26, 2009.

  
 “Termination Event” means
(a) with respect to any Plan, the occurrence of a Reportable Event or the substantial cessation of operations (within the meaning of Section 4062(e) of ERISA); (b) the withdrawal of any Credit Party or any of its Subsidiaries or any ERISA Affiliate
from a Multiple Employer Plan during a plan year in which it was a substantial employer (as such term is defined in Section 4001(a)(2) of ERISA), or the termination of a Multiple Employer Plan; (c) the distribution of a notice of intent to terminate
or the actual termination of a Plan pursuant to Section 4041(a)(2) or 4041A of ERISA; (d) the institution of proceedings to terminate or the actual termination of a Plan by the PBGC under Section 4042 of ERISA; (e) any event or condition which might
reasonably constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan; or (f) the complete or partial withdrawal of any Credit Party or any of its Subsidiaries or any ERISA
Affiliate from a Multiemployer Plan. 
  
 “Treasury Management Agreement” means any agreement governing the provision of treasury or cash management services, including deposit accounts, funds transfer, automated clearinghouse, zero balance accounts, returned check
concentration, controlled disbursement, lockbox, account reconciliation and reporting and trade finance services. 
  
 “Unreimbursed Amount” has the meaning assigned to such term in Section 2.2(c)(i). 
  
 “Unused Fee” has the meaning assigned to
such term in Section 3.4(a). 
  
 “Unused
Fee Calculation Period” has the meaning assigned to such term in Section 3.4(a). 
  
 “Unused Revolving Committed Amount” means, for any period, the amount by which (a) the then applicable Revolving
Committed Amount exceeds (b) the daily average sum for such period of (i) the outstanding aggregate principal amount of all Revolving Loans plus (ii) the outstanding aggregate principal amount of all LOC Obligations. For purposes of
clarification, Swingline Loans shall not be considered outstanding for purposes of determining the Unused Revolving Committed Amount. 
  

	 	1.2	Computation of Time Periods and Other Definitional Provisions. 

  

For purposes of computation of periods of time hereunder, the word “from” means “from and including” and the words “to”
and “until” each mean “to but excluding.” References in this Credit Agreement to “Articles”, “Sections”, “Schedules” or “Exhibits” shall be to Articles, Sections, Schedules or Exhibits of
or to this Credit Agreement unless otherwise specifically provided. 
  

	 	1.3	Accounting Terms. 

  
 (a) Except as otherwise specifically prescribed herein, all accounting terms not specifically or completely defined herein shall be construed in
conformity with, and all financial data (including 

  

 19 

 
financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP applied on
a consistent basis, as in effect from time to time, applied in a manner consistent with that used in preparing the audited financial statements of the Borrower for the fiscal year ended November 30, 2003; provided, however, that
calculations of Indebtedness attributable to any Synthetic Lease or the implied interest component of any Synthetic Lease shall be made by the Borrower in accordance with accepted financial practice and consistent with the terms of such Synthetic
Lease. 
  
 (b) The Borrower will provide a written summary of
material changes in GAAP and in the consistent application thereof with each annual and quarterly officer’s certificate delivered in accordance with Section 7.1(c). If at any time any change in GAAP would affect the computation of any financial
ratio or requirement set forth in any Credit Document, and either the Borrower or the Required Lenders shall so request, the Agent, the Lenders and the Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the
original intent thereof in light of such change in GAAP (subject to the approval of the Required Lenders); provided that, until so amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to
such change therein and (ii) the Borrower shall provide to the Agent and the Lenders financial statements and other documents required under this Credit Agreement or as reasonably requested hereunder setting forth a reconciliation between
calculations of such ratio or requirement made before and after giving effect to such change in GAAP. 
  
 (c) Notwithstanding the above, the parties hereto acknowledge and agree that, for purposes of all calculations made under the financial covenants set
forth in Section 7.12, financial statement items (whether positive or negative) attributable to the assets acquired in any Permitted Acquisition and any Indebtedness incurred by the Borrower or any of its Subsidiaries in order to consummate such
Permitted Acquisition shall be included to the extent relating to any period applicable in such calculations occurring on or after the date of such Permitted Acquisition on a Pro Forma Basis (and, if any Indebtedness incurred by the Borrower or any
of its Subsidiaries in order to consummate such Permitted Acquisition has a floating or formula rate, then the implied rate of interest for such Indebtedness for the applicable period shall be determined by utilizing the rate which is or would be in
effect with respect to such Indebtedness as at the relevant date of determination). Furthermore, the parties hereto agree that, for purposes of all calculations made under the financial covenants set forth in Section 7.12 after any Asset
Disposition, such calculations shall be conducted in a manner similar to any calculation related to a Permitted Acquisition in similar circumstances except that the applicable financial statement items and Indebtedness attributable to the Person or
Property related to the applicable Asset Disposition shall be excluded (rather than included) from such calculation on a Pro Forma Basis. 
  
 SECTION 2 
  
 CREDIT FACILITIES 
  

	 	2.1	Revolving Loans. 

  
 (a) Revolving Commitment. Subject to the terms and conditions set forth herein, each Lender severally agrees to make revolving loans (each a
“Revolving Loan” and collectively the “Revolving Loans”) to the Borrower, in Dollars, at any time and from time to time, during the period from and including the Closing Date to but not including the Termination
Date (or such earlier date if the Revolving Committed Amount has been terminated as provided herein); provided, however, that (i) the sum of the aggregate amount of Revolving Loans outstanding plus the aggregate amount of LOC
Obligations outstanding plus the 

  

 20 

 
aggregate amount of Swingline Loans outstanding shall not exceed the Revolving Committed Amount, and (ii) with respect to each individual Lender, such
Lender’s outstanding Revolving Loans shall not exceed such Lender’s Revolving Loan Commitment Percentage of the Revolving Committed Amount. 
  
 (b) Method of Borrowing for Revolving Loans. By no later than 11:00 a.m. (i) on the Business Day of the requested borrowing of Revolving Loans that
will be Base Rate Loans or (ii) three Business Days prior to the date of the requested borrowing of Revolving Loans that will be Eurodollar Loans, the Borrower shall submit a written Notice of Borrowing from a Responsible Officer of the Borrower in
the form of Exhibit 2.1 (or telephone notice promptly confirmed in writing) to the Agent setting forth (A) the amount requested, (B) whether such Revolving Loans shall accrue interest at the Adjusted Base Rate or the Adjusted Eurodollar Rate,
(C) with respect to Revolving Loans that will be Eurodollar Loans, the Interest Period applicable thereto and (D) evidence that the Borrower has complied in all respects with Section 5.2. 
  
 (c) Funding of Revolving Loans. Upon receipt of a Notice of Borrowing, the Agent shall promptly inform the applicable
Lenders as to the terms thereof. Each such Lender shall make its Revolving Loan Commitment Percentage of the requested Revolving Loans available to the Agent by 1:00 p.m. on the date specified in the Notice of Borrowing by deposit, in Dollars, of
immediately available funds at the offices of the Agent at its principal office in Charlotte, North Carolina or at such other address as the Agent may designate in writing. The amount of the requested Revolving Loans will then be made available to
the Borrower by the Agent by crediting the account of the Borrower on the books of such office of the Agent, to the extent the amount of such Revolving Loans are made available to the Agent; provided, however, that if, on the date of a
borrowing of Revolving Loans, there are LOC Borrowings outstanding, then the proceeds of such borrowing, first, shall be applied to the payment in full of any such LOC Borrowings and second, shall be made available to the Borrower as provided
above. 
  
 (d) Reductions of Revolving Committed Amount.
Upon at least three Business Days’ notice, the Borrower shall have the right to permanently terminate or reduce the aggregate unused amount of the Revolving Committed Amount at any time or from time to time; provided that (i) each partial
reduction shall be in an aggregate amount at least equal to $1,000,000 and in integral multiples of $500,000 above such amount and (ii) no reduction shall be made which would reduce the Revolving Committed Amount to an amount less than the sum of
the aggregate amount of outstanding Revolving Loans plus the aggregate amount of outstanding LOC Obligations plus the aggregate amount of outstanding Swingline Loans. Any reduction in (or termination of) the Revolving Committed Amount shall be
permanent and may not be reinstated. 
  
 (e) The Borrower may at
any time and from time to time, upon prior written notice by the Borrower to the Agent, increase the Revolving Committed Amount by up to TWENTY-FIVE MILLION DOLLARS ($25,000,000) with additional Revolving Commitments from any existing Lender or new
Revolving Commitments from any other Person selected by the Borrower and approved by the Agent; provided that: 
  
 (i) any such increase shall be in a minimum principal amount of $5,000,000 and in integral multiples of $5,000,000 in excess thereof;

  
 (ii) no Default or Event of Default shall be
continuing at the time of any such increase; 
  

 21 

 (iii) no existing Lender shall be under any obligation to increase its Revolving
Commitment and any such decision whether to increase its Revolving Commitment shall be in such Lender’s sole and absolute discretion; and 
  
 (iv) any new Lender shall join this Agreement by executing such joinder documents reasonably required by the Agent. 
  

	 	2.2	Letter of Credit Subfacility. 

  

	 	(a)	The Letter of Credit Commitment. 

  
 (i) From the Closing Date until the Letter of Credit Expiration Date, in reliance upon the agreements of the other Lenders set forth in
this Section 2.2 and subject to the terms and conditions hereof and of the LOC Documents, if any, and such other terms and conditions which the Issuing Lender may reasonably require, the Issuing Lender shall issue, and the Lenders shall participate
in, such standby Letters of Credit in Dollars as the Borrower may request for its own account or for the account of a Subsidiary as provided herein, in a form acceptable to the Issuing Lender, for the purposes hereinafter set forth; provided
that (i) the aggregate amount of LOC Obligations shall not exceed the LOC Committed Amount and (ii) the sum of the aggregate amount of Revolving Loans outstanding plus the aggregate amount of LOC Obligations outstanding plus the aggregate amount of
Swingline Loans outstanding shall not exceed the Revolving Committed Amount. 
  
 (ii) The Issuing Lender shall not issue any Letter of Credit if: 
  
 (A) the expiry date of such requested Letter of Credit would occur more than twelve months after the date of issuance, unless the Required
Lenders have approved such expiry date; or 
  
 (B) the expiry date of such requested Letter of Credit would occur after the Letter of Credit Expiration Date, unless all the Lenders have approved such expiry date. 
  
 (iii) The Issuing Lender shall not be under any obligation to issue any Letter of Credit if: 
  
 (A) any order, judgment or decree of any Governmental
Authority or arbitrator shall by its terms purport to enjoin or restrain the Issuing Lender from issuing such Letter of Credit, or any Requirement of Law applicable to the Issuing Lender or any request or directive (whether or not having the force
of law) from any Governmental Authority with jurisdiction over the Issuing Lender shall prohibit, or request that the Issuing Lender refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose
upon the Issuing Lender with respect to such Letter of Credit any restriction, reserve or capital requirement (for which the Issuing Lender is not otherwise compensated hereunder) not in effect on the Closing Date, or shall impose upon the Issuing
Lender any unreimbursed loss, cost or expense which was not applicable on the Closing Date and which the Issuing Lender in good faith deems material to it; 
  

 22 

 (B) the issuance of such Letter of Credit would violate any Requirments of Law or one or
more policies of the Issuing Lender; 
  
 (C)
except as otherwise agreed by the Agent and the Issuing Lender, such Letter of Credit is in an initial face amount less than $500,000; 
  
 (D) such Letter of Credit is to be denominated in a currency other than Dollars; 
  
 (E) such Letter of Credit contains any provisions for
automatic reinstatement of the stated amount after any drawing thereunder; or 
  
 (F) a default of any Lender’s obligations to fund under Section 2.2(c) exists or any Lender is at such time a Defaulting Lender
hereunder, unless the Issuing Lender has entered into satisfactory arrangements with the Borrower or such Lender to eliminate the Issuing Lender’s risk with respect to such Lender. 
  
 (iv) The Issuing Lender shall not amend any Letter of Credit if the Issuing Lender would not be permitted at
such time to issue such Letter of Credit in its amended form under the terms hereof. 
  
 (v) The Issuing Lender shall be under no obligation to amend any Letter of Credit if (A) the Issuing Lender would have no obligation at
such time to issue such Letter of Credit in its amended form under the terms hereof, or (B) the beneficiary of such Letter of Credit does not accept the proposed amendment to such Letter of Credit. 
  
 (b) Procedures for Issuance and Amendment of Letters of Credit.

  
 (i) Each Letter of Credit shall be issued or
amended, as the case may be, upon the request of the Borrower delivered to the Issuing Lender (with a copy to the Agent) in the form of a Letter of Credit Application, appropriately completed and signed by a Responsible Officer of the Borrower. Such
Letter of Credit Application must be received by the Issuing Lender and the Agent not later than 11:00 a.m. at least five (5) Business Days (or such later date and time as the Agent and the Issuing Lender may agree in a particular instance in their
sole discretion) prior to the proposed issuance date or date of amendment, as the case may be. In the case of a request for an initial issuance of a Letter of Credit, such Letter of Credit Application shall specify in form and detail satisfactory to
the Issuing Lender: (A) the proposed issuance date of the requested Letter of Credit (which shall be a Business Day); (B) the amount thereof; (C) the expiry date thereof; (D) the name and address of the beneficiary thereof; (E) the documents to be
presented by such beneficiary in case of any drawing thereunder; (F) the full text of any certificate to be presented by such beneficiary in case of any drawing thereunder; and (G) such other matters as the Issuing Lender may require. In the case of
a request for an amendment of any outstanding Letter of Credit, such Letter of Credit Application shall specify in form and detail satisfactory to the Issuing Lender (A) the Letter of Credit to be amended; (B) the proposed date of amendment thereof
(which shall be a Business Day); (C) the nature of the proposed amendment; and (D) such other matters as the Issuing Lender may require. Additionally, the Borrower shall furnish to the Issuing Lender and the Agent such other documents and
information pertaining to such 

  

 23 

 
requested Letter of Credit issuance or amendment, including any LOC Documents, as the Issuing Lender or the Agent may require. 
  
 (ii) Promptly after receipt of any Letter of Credit
Application, the Issuing Lender will confirm with the Agent (by telephone or in writing) that the Agent has received a copy of such Letter of Credit Application from the Borrower and, if not, the Issuing Lender will provide the Agent with a copy
thereof. Unless the Issuing Lender has received written notice from any Lender, the Agent or any Credit Party, at least one Business Day prior to the requested date of issuance or amendment of the applicable Letter of Credit, that one or more
applicable conditions contained in Section 5 shall not be satisfied, then, subject to the terms and conditions hereof, the Issuing Lender shall, on the requested date, issue a Letter of Credit for the account of the Borrower or the applicable
Subsidiary or enter into the applicable amendment, as the case may be, in each case in accordance with the Issuing Lender’s usual and customary business practices. Immediately upon the issuance of each Letter of Credit, each Lender shall be
deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Issuing Lender a risk participation in such Letter of Credit in an amount equal to the product of such Lender’s Revolving Loan Commitment Percentage times
the amount of such Letter of Credit. 
  
 (iii)
Promptly after its delivery of any Letter of Credit or any amendment to a Letter of Credit to an advising bank with respect thereto or to the beneficiary thereof, the Issuing Lender will also deliver to the Borrower and the Agent a true and complete
copy of such Letter of Credit or amendment. 
  
 (c) Drawings
and Reimbursements; Funding of Participations. 
  
 (i) Upon receipt from the beneficiary of any Letter of Credit of any notice of drawing under such Letter of Credit, the Issuing Lender shall notify the Borrower and the Agent thereof. Not later than 11:00 a.m. on the date of any payment by
the Issuing Lender under a Letter of Credit (each such date, an “Honor Date”), the Borrower shall reimburse the Issuing Lender through the Agent in an amount equal to the amount of such drawing. If the Borrower fails to so reimburse
the Issuing Lender by such time, the Agent shall promptly notify each Lender of the Honor Date, the amount of the unreimbursed drawing (the “Unreimbursed Amount”), and the amount of such Lender’s Revolving Loan Commitment
Percentage thereof. In such event, the Borrower shall be deemed to have requested a borrowing of Base Rate Loans to be disbursed on the Honor Date in an amount equal to the Unreimbursed Amount, without regard to the minimum and multiples specified
in Section 2.5 for the principal amount of Base Rate Loans, but subject to the amount of the unutilized portion of the Revolving Committed Amount and the conditions set forth in Section 5.2 (other than the delivery of a Notice of Borrowing). Any
notice given by the Issuing Lender or the Agent pursuant to this Section 2.2(c)(i) may be given by telephone if immediately confirmed in writing; provided that the lack of such an immediate confirmation shall not affect the conclusiveness or
binding effect of such notice. 
  
 (ii) Each
Lender (including the Lender acting as Issuing Lender) shall upon any notice pursuant to Section 2.2(c)(i) make funds available to the Agent for the account of the Issuing Lender at the Agent’s Office in an amount equal to its Revolving Loan
Commitment Percentage of the Unreimbursed Amount not later than 1:00 p.m. on the Business Day specified in such notice by the Agent, whereupon, subject to the provisions of Section 2.2(c)(iii), each 

  

 24 

 
Lender that so makes funds available shall be deemed to have made a Base Rate Loan to the Borrower in such amount. The Agent shall remit the funds so
received to the Issuing Lender. 
  
 (iii) With
respect to any Unreimbursed Amount that is not fully refinanced by a borrowing of Base Rate Loans because the conditions set forth in Section 5.2 cannot be satisfied or for any other reason, the Borrower shall be deemed to have incurred from the
Issuing Lender an LOC Borrowing in the amount of the Unreimbursed Amount that is not so refinanced, which LOC Borrowing shall be due and payable on demand (together with interest) and shall bear interest at the default rate of interest described in
Section 3.1(b). In such event, each Lender’s payment to the Agent for the account of the Issuing Lender pursuant to Section 2.2(c)(ii) shall be deemed payment in respect of its participation in such LOC Borrowing and shall constitute an LOC
Advance from such Lender in satisfaction of its participation obligation under this Section 2.2. 
  
 (iv) Until each Lender funds its Revolving Loan or LOC Advance pursuant to this Section 2.2(c) to reimburse the Issuing Lender for any
amount drawn under any Letter of Credit, interest in respect of such Lender’s Revolving Loan Commitment Percentage of such amount shall be solely for the account of the Issuing Lender. 
  
 (v) Each Lender’s obligation to make Revolving Loans or
LOC Advances to reimburse the Issuing Lender for amounts drawn under Letters of Credit, as contemplated by this Section 2.2(c), shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any set-off,
counterclaim, recoupment, defense or other right which such Lender may have against the Issuing Lender, the Borrower or any other Person for any reason whatsoever; (B) the occurrence or continuance of a Default or Event of Default, or (C) any other
occurrence, event or condition, whether or not similar to any of the foregoing; provided, however, that each Lender’s obligation to make Revolving Loans pursuant to this Section 2.2(c) is subject to the conditions set forth in
Section 5.2 (other than delivery by the Borrower of a Notice of Borrowing). No such making of an LOC Advance shall relieve or otherwise impair the obligation of the Borrower to reimburse the Issuing Lender for the amount of any payment made by the
Issuing Lender under any Letter of Credit, together with interest as provided herein. 
  
 (vi) If any Lender fails to make available to the Agent for the account of the Issuing Lender any amount required to be paid by such
Lender pursuant to the foregoing provisions of this Section 2.2(c) by the time specified in Section 2.2(c)(ii), the Issuing Lender shall be entitled to recover from such Lender (acting through the Agent), on demand, such amount with interest thereon
for the period from the date such payment is required to the date on which such payment is immediately available to the Issuing Lender at a rate per annum equal to the Federal Funds Rate from time to time in effect. A certificate of the Issuing
Lender submitted to any Lender (through the Agent) with respect to any amounts owing under this clause (vi) shall be conclusive absent manifest error. 
  
 (d) Repayment of Participations. 
  
 (i) At any time after the Issuing Lender has made a payment under any Letter of Credit and has received from any Lender such Lender’s
LOC Advance in respect of such payment in accordance with Section 2.2(c), if the Agent receives for the account of the Issuing Lender any payment in respect of the related Unreimbursed Amount or interest thereon (whether directly 

  

 25 

 
from the Borrower or otherwise, including proceeds of cash collateral applied thereto by the Agent), the Agent will distribute to such Lender its Revolving
Loan Commitment Percentage thereof (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Lender’s LOC Advance was outstanding) in the same funds as those received by the Agent. 
  
 (ii) If any payment received by the Agent for the account of
the Issuing Lender pursuant to Section 2.2(c)(i) is required to be returned under any of the circumstances described in Section 3.9 (including pursuant to any settlement entered into by the Issuing Lender in its discretion), each Lender shall pay to
the Agent for the account of the Issuing Lender its Revolving Loan Commitment Percentage thereof on demand of the Agent, plus interest thereon from the date of such demand to the date such amount is returned by such Lender, at a rate per annum equal
to the Federal Funds Rate from time to time in effect. 
  
 (e)
Obligations Absolute. The obligation of the Borrower to reimburse the Issuing Lender for each drawing under each Letter of Credit and to repay each LOC Borrowing shall be absolute, unconditional and irrevocable, and shall be paid strictly in
accordance with the terms of this Credit Agreement under all circumstances, including the following: 
  
 (i) any lack of validity or enforceability of such Letter of Credit, this Credit Agreement or any other Credit Document; 
  
 (ii) the existence of any claim, counterclaim, set-off,
defense or other right that the Borrower or any Subsidiary may have at any time against any beneficiary or any transferee of such Letter of Credit (or any Person for whom any such beneficiary or any such transferee may be acting), the Issuing Lender
or any other Person, whether in connection with this Credit Agreement, the transactions contemplated hereby or by such Letter of Credit or any agreement or instrument relating thereto, or any unrelated transaction; 
  
 (iii) any draft, demand, certificate or other document
presented under such Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect; or any loss or delay in the transmission or otherwise of any document
required in order to make a drawing under such Letter of Credit; 
  
 (iv) any payment by the Issuing Lender under such Letter of Credit against presentation of a draft or certificate that does not strictly comply with the terms of such Letter of Credit; or any payment made by the
Issuing Lender under such Letter of Credit to any Person purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit of creditors, liquidator, receiver or other representative of or successor to any beneficiary or any
transferee of such Letter of Credit, including any arising in connection with any proceeding under the Bankruptcy Code or any similar laws; or 
  
 (v) any other circumstance or happening whatsoever, whether or not similar to any of the foregoing, including any other circumstance that
might otherwise constitute a defense available to, or a discharge of, the Borrower or any Subsidiary. 
  
 The Borrower shall promptly examine a copy of each Letter of Credit and each amendment thereto that is delivered to it and, in the event of any claim of noncompliance with the Borrower’s 

  

 26 

 
instructions or other irregularity, the Borrower will immediately notify the Issuing Lender. The Borrower shall be conclusively deemed to have waived any
such claim against the Issuing Lender and its correspondents unless such notice is given as aforesaid. 
  
 (f) Role of Issuing Lender. Each Lender and the Borrower agree that, in paying any drawing under a Letter of Credit, the Issuing Lender shall not
have any responsibility to obtain any document (other than any sight draft, certificates and documents expressly required by such Letter of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the authority of
the Person executing or delivering any such document. None of the Issuing Lender, any Agent-Related Person or any of the respective correspondents, participants or assignees of the Issuing Lender shall be liable to any Lender for (i) any action
taken or omitted in connection herewith at the request or with the approval of the Lenders or the Required Lenders, as applicable; (ii) any action taken or omitted in the absence of gross negligence or willful misconduct; or (iii) the due execution,
effectiveness, validity or enforceability of any document or instrument related to any Letter of Credit or Letter of Credit Application. The Borrower hereby assumes all risks of the acts or omissions of any beneficiary or transferee with respect to
its use of any Letter of Credit; provided, however, that this assumption is not intended to, and shall not, preclude the Borrower’s pursuing such rights and remedies as it may have against the beneficiary or transferee at law or
under any other agreement. None of the Issuing Lender, any Agent-Related Person or any of the respective correspondents, participants or assignees of the Issuing Lender, shall be liable or responsible for any of the matters described in clauses (i)
through (v) of Section 2.2(e); provided, however, that anything in such clauses to the contrary notwithstanding, the Borrower may have a claim against the Issuing Lender, and the Issuing Lender may be liable to the Borrower, to the
extent, but only to the extent, of any direct, as opposed to consequential or exemplary, damages suffered by the Borrower which the Borrower proves were caused by the Issuing Lender’s willful misconduct or gross negligence or the Issuing
Lender’s willful failure to pay under any Letter of Credit after the presentation to it by the beneficiary of a sight draft and certificate(s) strictly complying with the terms and conditions of a Letter of Credit unless the Issuing Lender is
prevented or prohibited from so paying as a result of any order or directive of any court or other Governmental Authority. In furtherance and not in limitation of the foregoing, the Issuing Lender may accept documents that appear on their face to be
in order, without responsibility for further investigation, regardless of any notice or information to the contrary, and the Issuing Lender shall not be responsible for the validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason. 
  
 (g) Cash Collateral. Upon the request of the Agent, (i) if the Issuing
Lender has honored any full or partial drawing request under any Letter of Credit and such drawing has resulted in an LOC Borrowing, or (ii) if, as of the Letter of Credit Expiration Date, any Letter of Credit for any reason remains outstanding and
partially or wholly undrawn, the Borrower shall immediately Cash Collateralize the then Outstanding Amount of all LOC Obligations (in an amount equal to such Outstanding Amount determined as of the date of such LOC Borrowing or the Letter of Credit
Expiration Date, as the case may be). Section 3.3(b) and Section 3.8 set forth certain additional requirements to deliver Cash Collateral hereunder. For purposes of this Section 2.2, Section 3.3(b) and Section 3.8, “Cash
Collateralize” means to pledge and deposit with or deliver to the Agent, for the benefit of the Issuing Lender and the Lenders, as collateral for the LOC Obligations, cash or deposit account balances pursuant to documentation in form and
substance satisfactory to the Agent and the Issuing Lender (which documents are hereby consented to by the Lenders). Derivatives of such term have corresponding meanings. The Borrower hereby grants to the Agent, for the benefit of the Issuing Lender
and the 

  

 27 

 
Lenders, a security interest in all such cash, deposit accounts and all balances therein and all proceeds of the foregoing. Cash Collateral shall be
maintained in blocked, non-interest bearing deposit accounts at Bank of America. 
  
 (h) Designation of other Subsidiaries as Account Parties. Notwithstanding that a Letter of Credit issued or outstanding hereunder is in support of any obligations of, or is for the account of, a Subsidiary, the
Borrower shall be obligated to reimburse the Issuing Lender hereunder for any and all drawings under such Letter of Credit. The Borrower hereby acknowledges that the issuance of Letters of Credit for the account of Subsidiaries inures to the benefit
of the Borrower, and that the Borrower’s business derives substantial benefits from the businesses of such Subsidiaries. 
  
 (i) Applicability of ISP98. Unless otherwise expressly agreed by the Issuing Lender and the Borrower when a Letter of Credit is issued, the
rules of the ISP shall apply to each standby Letter of Credit. 
  
 (j) Conflict with LOC Documents. In the event of any conflict between this Credit Agreement and any LOC Document (including any letter of credit application), this Credit Agreement shall control. 
  

	 	2.3	Swingline Loans. 

  
 (a) Swingline Subfacility. Subject to the terms and conditions set forth herein, the Swingline Lender agrees to make swingline loans (each a
“Swingline Loan” and collectively the “Swingline Loans”) to the Borrower, in Dollars, at any time and from time to time, during the period from and including the Closing Date to but not including the Termination
Date (or such earlier date if the Revolving Committed Amount has been terminated as provided herein) in an aggregate amount not to exceed at any time outstanding the amount of the Swingline Committed Amount, notwithstanding the fact that such
Swingline Loans, when aggregated with the Revolving Loan Commitment Percentages of the outstanding principal amount of Revolving Loans and LOC Obligations of the Swingline Lender in its capacity as a Lender of Revolving Loans, may exceed the amount
of such Lender’s Revolving Commitment; provided, however, that (i) the sum of the aggregate amount of Revolving Loans outstanding plus the aggregate amount of LOC Obligations outstanding plus the aggregate amount of Swingline
Loans outstanding shall not exceed the Revolving Committed Amount, and (ii) the outstanding Swingline Loans shall not exceed the Swingline Committed Amount, and provided, further, that the Borrower shall not use the proceeds of any
Swingline Loan to refinance any outstanding Swingline Loan. Within the foregoing limits, and subject to the other terms and conditions hereof, the Borrower may borrow under this Section 2.3, prepay under Section 3.3(a), and reborrow under this
Section 2.3. Each Swingline Loan shall bear interest at such rate mutually agreed to between the Borrower and the Swingline Lender (which shall be confirmed with the Agent) or, in the absence of such mutual agreement, shall be a Base Rate Loan.
Immediately upon the making of a Swingline Loan, each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Swingline Lender a risk participation in such Swingline Loan in an amount equal to the product
of such Lender’s Revolving Loan Commitment Percentage times the amount of such Swingline Loan. 
  
 (b) Borrowing Procedures. Each borrowing of Swingline Loans shall be made upon the Borrower’s irrevocable notice to the Swingline Lender and
the Agent, which may be given by telephone. Each such notice must be received by the Swingline Lender and the Agent not later than 1:00 p.m. on the requested borrowing date, and shall specify (i) the amount to be borrowed and (ii) the requested
borrowing date, which shall be a Business Day. Each such telephonic notice must be confirmed 

  

 28 

 
promptly by delivery to the Swingline Lender and the Agent of a written Swingline Loan Notice, appropriately completed and signed by a Responsible Officer of
the Borrower. Promptly after receipt by the Swingline Lender of any telephonic Swingline Loan Notice, the Swingline Lender will confirm with the Agent (by telephone or in writing) that the Agent has also received such Swingline Loan Notice and, if
not, the Swingline Lender will notify the Agent (by telephone or in writing) of the contents thereof. Unless the Swingline Lender has received notice (by telephone or in writing) from the Agent (including at the request of any Lender) prior to 2:00
p.m. on the date of the proposed borrowing of Swingline Loans (A) directing the Swingline Lender not to make such Swingline Loan as a result of the limitations set forth in the proviso to the first sentence of Section 2.3(a), or (B) that one or more
of the applicable conditions specified in Section 5 is not then satisfied, then, subject to the terms and conditions hereof, the Swingline Lender will, not later than 3:00 p.m. on the borrowing date specified in such Swingline Loan Notice, make the
amount of its Swingline Loan available to the Borrower. 
  
 (c)
Refinancing of Swingline Loans. 
  
 (i)
The Swingline Lender at any time in its sole and absolute discretion may request, on behalf of the Borrower (which hereby irrevocably requests and authorizes the Swingline Lender to so request on its behalf), that each Lender make a Base Rate Loan
in an amount equal to such Lender’s Revolving Loan Commitment Percentage of the amount of Swingline Loans then outstanding. Such request shall be made in writing (which written request shall be deemed to be a Notice of Borrowing for purposes
hereof) and in accordance with the requirements of Section 2.1(b), without regard to the minimum and multiples specified in Section 2.5 for the principal amount of Base Rate Loans, but subject to the unutilized portion of the Revolving Committed
Amount and the conditions set forth in Section 5.2. The Swingline Lender shall furnish the Borrower with a copy of the applicable Notice of Borrowing promptly after delivering such notice to the Agent. Each Lender shall make an amount equal to its
Revolving Loan Commitment Percentage of the amount specified in such Notice of Borrowing available to the Agent in immediately available funds for the account of the Swingline Lender at the Agent’s Office not later than 1:00 p.m. on the day
specified in such Notice of Borrowing, whereupon, subject to Section 2.3(c)(ii), each Lender that so makes funds available shall be deemed to have made a Base Rate Loan to the Borrower in such amount. The Agent shall remit the funds so received to
the Swingline Lender. 
  
 (ii) If for any reason
any Swingline Loan cannot be refinanced by such a borrowing of Revolving Loans in accordance with Section 2.3(c)(i), the request for Base Rate Loans submitted by the Swingline Lender as set forth herein shall be deemed to be a request by the
Swingline Lender that each of the Lenders fund its risk participation in the relevant Swingline Loan and each Lender’s payment to the Agent for the account of the Swingline Lender pursuant to Section 2.3(c)(i) shall be deemed payment in respect
of such participation. 
  
 (iii) If any Lender
fails to make available to the Agent for the account of the Swingline Lender any amount required to be paid by such Lender pursuant to the foregoing provisions of this Section 2.3(c) by the time specified in Section 2.3(c)(i), the Swingline Lender
shall be entitled to recover from such Lender (acting through the Agent), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to the Swingline
Lender at a rate per annum equal to the Federal Funds Rate from time to time in effect. A certificate of the Swingline Lender 

  

 29 

 
submitted to any Lender (through the Agent) with respect to any amounts owing under this clause (iii) shall be conclusive absent manifest error. 

 
 (iv) Each Lender’s obligation to make Revolving
Loans or to purchase and fund risk participations in Swingline Loans pursuant to this Section 2.3(c) shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any set-off, counterclaim, recoupment, defense or
other right that such Lender may have against the Swingline Lender, the Borrower or any other Person for any reason whatsoever, (B) the occurrence or continuance of a Default or Event of Default, or (C) any other occurrence, event or condition,
whether or not similar to any of the foregoing; provided, however, that each Lender’s obligation to make Revolving Loans pursuant to this Section 2.3(c) is subject to the conditions set forth in Section 5.2. No such purchase or
funding of risk participations shall relieve or otherwise impair the obligation of the Borrower to repay Swingline Loans, together with interest as provided herein. 
  
 (d) Repayment of Participations. 
  
 (i) At any time after any Lender has purchased and funded a risk participation in a Swingline Loan, if the
Swingline Lender receives any payment on account of such Swingline Loan, the Swingline Lender will distribute to such Lender its Revolving Loan Commitment Percentage of such payment (appropriately adjusted, in the case of interest payments, to
reflect the period of time during which such Lender’s risk participation was funded) in the same funds as those received by the Swingline Lender. 
  
 (ii) If any payment received by the Swingline Lender in respect of principal or interest on any Swingline Loan is required to be returned
by the Swingline Lender under any of the circumstances described in Section 3.9 (including pursuant to any settlement entered into by the Swingline Lender in its discretion), each Lender shall pay to the Swingline Lender its Revolving Loan
Commitment Percentage thereof on demand of the Agent, plus interest thereon from the date of such demand to the date such amount is returned, at a rate per annum equal to the Federal Funds Rate. The Agent will make such demand upon the request of
the Swingline Lender. 
  
 (e) Interest for Account of Swingline
Lender. The Swingline Lender shall be responsible for invoicing the Borrower for interest on the Swingline Loans. Until each Lender funds its Revolving Loans that are Base Rate Loans or risk participation pursuant to this Section 2.3 to
refinance such Lender’s Revolving Loan Commitment Percentage of any Swingline Loan, interest in respect of such share shall be solely for the account of the Swingline Lender. 
  
 (f) Payments Directly to Swingline Lender. The Borrower shall make all payments of principal and interest in respect
of the Swingline Loans directly to the Swingline Lender. 
  

	 	2.4	Continuations and Conversions. 

  
 Subject to the terms of Section 5.2, the Borrower shall have the option, on any Business Day, to continue in existence Eurodollar Loans for a subsequent
Interest Period, to convert Base Rate Loans into Eurodollar Loans or to convert Eurodollar Loans into Base Rate Loans; provided, however, that (a) each such continuation or conversion must be requested by the Borrower pursuant to a written Notice of

  

 30 

 
Continuation/Conversion from a Responsible Officer of the Borrower, in the form of Exhibit 2.4, in compliance with the terms set forth below, (b)
except as provided in Section 3.12, Eurodollar Loans may only be continued or converted into Base Rate Loans on the last day of the Interest Period applicable thereto, (c) Eurodollar Loans may not be continued nor may Base Rate Loans be converted
into Eurodollar Loans during the existence and continuation of a Default or Event of Default, (d) Swingline Loans may not be converted into Eurodollar Loans and (e) any request to extend a Eurodollar Loan that fails to comply with the terms hereof
or any failure to request an extension of a Eurodollar Loan at the end of an Interest Period shall constitute a request for a conversion to a Base Rate Loan on the last day of the applicable Interest Period. Each continuation or conversion must be
requested by the Borrower no later than 11:00 a.m. (i) one Business Day prior to the date for a requested conversion of a Eurodollar Loan to a Base Rate Loan or (ii) three Business Days prior to the date for a requested extension of a Eurodollar
Loan or conversion of a Base Rate Loan to a Eurodollar Loan, in each case pursuant to a written Notice of Continuation/Conversion submitted to the Agent which shall set forth (A) whether the Borrower wishes to continue or convert such Loans and (B)
if the request is to continue a Eurodollar Loan or convert a Base Rate Loan to a Eurodollar Loan, the Interest Period applicable thereto. 
  

	 	2.5	Minimum Amounts. 

  
 (a) Revolving Loans. Each request for a borrowing, conversion or continuation shall be subject to the requirements that (a) each Eurodollar Loan
shall be in a minimum amount of $1,000,000 and in integral multiples of $500,000 in excess thereof, (b) each Base Rate Loan shall be in a minimum amount of the lesser of $1,000,000 (and integral multiples of $500,000 in excess thereof) or the
remaining amount available under the Revolving Committed Amount and (c) no more than six Eurodollar Loans shall, in the aggregate, be outstanding hereunder at any one time. For the purposes of this Section, all Eurodollar Loans with the same
Interest Periods shall be considered as one Eurodollar Loan, but Eurodollar Loans with different Interest Periods, even if they begin on the same date, shall be considered as separate Eurodollar Loans. 
  
 (b) Swingline Loans. Each Swingline Loan shall be a minimum amount of
$100,000 (and integral multiples of $100,000 in excess thereof). 
  

	 	2.6	Notes. 

  
 (a) Revolving Notes. The Revolving Loans made by each Lender shall be evidenced by a duly executed promissory note of the Borrower to each
applicable Lender in the face amount of its Revolving Loan Commitment Percentage of the Revolving Committed Amount in substantially the form of Exhibit 2.6(a). 
  
 (b) Swingline Note. The Swingline Loans made by the Swingline Lender shall be evidenced by a duly executed promissory
note of the Borrower to the Swingline Lender in the face amount of the Swingline Loan Committed Amount in substantially the form of Exhibit 2.6(b). 
  

 31 

 SECTION 3 
  

GENERAL PROVISIONS APPLICABLE TO LOANS 
  

	 	3.1	Interest. 

  
 (a) Interest Rate. 
  
 (i) Revolving Loans. All Revolving Loans that are Base Rate Loans shall accrue interest at the Adjusted Base Rate, and all
Revolving Loans that are Eurodollar Loans shall accrue interest at the Adjusted Eurodollar Rate. 
  
 (ii) Swingline Loans. Unless otherwise mutually agreed between the Borrower and the Swingline Lender (and confirmed with the
Agent), all Swingline Loans shall accrue interest at the Adjusted Base Rate. 
  
 (b) Default Rate of Interest. Upon the occurrence, and during the continuance, of an Event of Default, the principal of and, to the extent permitted by law, interest on the Loans and any other amounts owing
hereunder or under the other Credit Documents (including without limitation fees and expenses) shall bear interest, payable on demand, at a per annum rate equal to 2% plus the rate which would otherwise be applicable (or if no rate is applicable,
then the rate for Revolving Loans that are Base Rate Loans plus 2% per annum). 
  
 (c) Interest Payments. Interest on Loans shall be due and payable in arrears on each Interest Payment Date. If an Interest Payment Date falls on a date which is not a Business Day, such Interest Payment Date
shall be deemed to be the next succeeding Business Day (subject to accrual of interest for the period of such extension), except that in the case of Eurodollar Loans where the next succeeding Business Day falls in the next succeeding calendar month,
then on the next preceding day. 
  

	 	3.2	Place and Manner of Payments. 

  
 All payments to be made by the Borrower shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff. Except as
otherwise expressly provided herein, all payments by the Borrower hereunder shall be received not later than 2:00 p.m. on the date when due, in Dollars and in immediately available funds, by the Agent at its offices in Charlotte, North Carolina.
Payments received after such time shall be deemed to have been received on the next Business Day. The Borrower shall, at the time it makes any payment under this Credit Agreement, specify to the Agent, the Loans, fees or other amounts payable by the
Borrower hereunder to which such payment is to be applied (and in the event that it fails to specify, or if such application would be inconsistent with the terms hereof, the Agent shall, subject to Section 3.7, distribute such payment to the Lenders
in such manner as the Agent may deem appropriate). The Agent will promptly distribute such payments to the applicable Lenders. Whenever any payment hereunder shall be stated to be due on a day which is not a Business Day, the due date thereof shall
be extended to the next succeeding Business Day (subject to accrual of interest and fees for the period of such extension), except that in the case of Eurodollar Loans, if the extension would cause the payment to be made in the next following
calendar month, then such payment shall instead be made on the next preceding Business Day. If at any time insufficient funds are received by and available to the Agent to pay fully all amounts of principal, LOC Borrowings, interest and fees then
due hereunder, such funds shall be applied (i) first, toward costs and expenses (including attorneys fees and amounts payable under Sections 3.10, 3.13, 

  

 32 

 
3.14 or 3.15) incurred by the Agent and each Lender, (ii) second, toward repayment of interest and fees then due hereunder, ratably among the parties
entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (iii) third, toward repayment of principal and LOC Borrowings then due hereunder, ratably among the parties entitled thereto in accordance with
the amounts of principal and LOC Borrowings then due to such parties. 
  

	 	3.3	Prepayments. 

  
 (a) Voluntary Prepayments. 
  
 (i) Revolving Loans. The Borrower shall have the right to prepay Revolving Loans in whole or in part from time to time without
premium or penalty; provided, however, that (i) Eurodollar Loans may only be prepaid on three Business Days’ prior written notice to the Agent and any prepayment of Eurodollar Loans will be subject to Section 3.15; (ii) Base Rate
Loans may only be prepaid after written notice (confirmed by a telephone call from the Borrower) to the Agent not later than 11:00 a.m. on the Business Day of the applicable prepayment; (iii) each such partial prepayment of Loans shall be in the
minimum principal amount of $500,000 and integral multiples of $500,000 in excess thereof. 
  
 (ii) Swingline Loans. The Borrower shall have the right to prepay Swingline Loans in whole or in part from time to time without
premium or penalty; provided, however, that (i) the Borrower must provide prior written notice to the Swingline Lender (with a copy to the Agent), which notice must be received not later than 1:00 p.m. on the date of the prepayment,
and (ii) each such prepayment shall be in a minimum principal amount of $100,000 and integral multiples of $100,000 in excess thereof. 
  
 (b) Mandatory Prepayments. If at any time the sum of the aggregate amount of Revolving Loans outstanding plus the aggregate amount of LOC
Obligations outstanding plus the aggregate amount of Swingline Loans outstanding exceeds the Revolving Committed Amount, the Borrower shall immediately make a principal payment on the Revolving Loans and/or Swingline Loans and/or Cash Collateralize
the LOC Obligations, in an amount sufficient to eliminate such excess; provided, however, that the Borrower shall not be required to Cash Collateralize the LOC Obligations pursuant to this Section 3.3(b) unless after the prepayment in
full of the Revolving Loans and Swingline Loans, the LOC Obligations exceed the Revolving Committed Amount then in effect. All amounts required to be paid pursuant to this Section 3.3(b) shall be applied first to Revolving Loans and Swingline
Loans and second to Cash Collateralize the LOC Obligations. Within the parameters of the application set forth above, prepayments shall be applied first to Base Rate Loans and then to Eurodollar Loans in direct order of Interest Period
maturities. All prepayments hereunder shall be subject to Section 3.15. 
  

	 	3.4	Fees. 

  
 (a) Unused Fees. In consideration of the Revolving Commitments of the Lenders hereunder, the Borrower agrees to pay to the Agent for the account of
each Lender a fee (the “Unused Fee”) computed at a per annum rate on the Unused Revolving Committed Amount during the Unused Fee Calculation Period (hereinafter defined) equal to the Applicable Percentage for Unused Fees then in
effect. The Unused Fee shall commence to accrue on the Closing Date and shall be due and payable in arrears on the last business day of each March, June, September and December (and any date that the Revolving Committed Amount is reduced as provided
in Section 2.1(d) and the Termination Date) for the immediately preceding quarter (or portion thereof) (each such quarter or portion thereof for which the Unused Fee is payable hereunder being 

  

 33 

 
herein referred to as an “Unused Fee Calculation Period”), beginning with the first of such dates to occur after the Closing Date.

  
 (b) Letter of Credit Fees. 
  
 (i) Letter of Credit Fee. The Borrower shall pay to
the Agent for the account of each Lender in accordance with its Revolving Loan Commitment Percentage a Letter of Credit fee (the “Letter of Credit Fee”) for each Letter of Credit equal to the Applicable Percentage times the
daily maximum amount available to be drawn under such Letter of Credit (whether or not such maximum amount is then in effect under such Letter of Credit). Letter of Credit Fees shall be (i) computed on a quarterly basis in arrears and (ii) due and
payable on the last Business Day of each March, June, September and December, commencing with the first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand. If there is any
change in the Applicable Percentage during any quarter, the daily maximum amount of each Letter of Credit shall be computed and multiplied by the Applicable Percentage separately for each period during such quarter that such Applicable Percentage
was in effect. 
  
 (ii) Issuing Lender
Fees. In addition to the Letter of Credit Fee, the Borrower promises to pay to the Agent for the account of the Issuing Lender without sharing by the other Lenders (i) a letter of credit fronting fee of one-eighth of one percent (0.125%) on the
average daily maximum amount available to be drawn under each Letter of Credit computed at a per annum rate for each day from the date of issuance to the date of expiration and (ii) the customary charges from time to time of the Issuing Lender with
respect to the issuance, amendment, transfer, administration, cancellation and conversion of, and drawings under, such Letters of Credit. 
  
 (c) Administrative Fees. The Borrower agrees to pay to the Agent, for its own account, an annual fee as agreed to between the Borrower and the
Agent in the Fee Letter. 
  

	 	3.5	Payment in full at Maturity. 

  
 (a) Revolving Loans. On the Termination Date, the entire outstanding principal balance of all Revolving Loans, together with accrued but unpaid
interest and all other sums owing with respect thereto, shall be due and payable in full, unless accelerated sooner pursuant to Section 9. 
  
 (b) Swingline Loans. Each Swingline Loan, together with accrued but unpaid interest and all other sums owing with respect thereto, shall be due and
payable in full on the earlier to occur of (i) demand by the Swingline Lender and (ii) the Termination Date, unless accelerated sooner pursuant to Section 9. 
  

	 	3.6	Computations of Interest and Fees. 

  
 (a) Except for Base Rate Loans, in which case interest shall be computed on the basis of a 365 or 366 day year as the case may be (unless the Base Rate is
determined by reference to the Federal Funds Rate), all computations of interest and fees hereunder shall be made on the basis of the actual number of days elapsed over a year of 360 days. Interest shall accrue from and include the date of borrowing
(or continuation or conversion) but exclude the date of payment. 
  

 34 

 (b) It is the intent of the Lenders and the Credit Parties to conform to and contract in strict
compliance with applicable usury law from time to time in effect. All agreements between the Lenders and the Borrower are hereby limited by the provisions of this paragraph which shall override and control all such agreements, whether now existing
or hereafter arising and whether written or oral. In no way, nor in any event or contingency (including but not limited to prepayment or acceleration of the maturity of any obligation), shall the interest taken, reserved, contracted for, charged, or
received under this Credit Agreement, under the Notes or otherwise, exceed the maximum nonusurious amount permissible under applicable law. If, from any possible construction of any of the Credit Documents or any other document, interest would
otherwise be payable in excess of the maximum nonusurious amount, any such construction shall be subject to the provisions of this paragraph and such documents shall be automatically reduced to the maximum nonusurious amount permitted under
applicable law, without the necessity of execution of any amendment or new document. If any Lender shall ever receive anything of value which is characterized as interest on the Loans under applicable law and which would, apart from this provision,
be in excess of the maximum lawful amount, an amount equal to the amount which would have been excessive interest shall, without penalty, be applied to the reduction of the principal amount owing on the Loans and not to the payment of interest, or
refunded to the Borrower or the other payor thereof if and to the extent such amount which would have been excessive exceeds such unpaid principal amount of the Loans. The right to demand payment of the Loans or any other Indebtedness evidenced by
any of the Credit Documents does not include the right to receive any interest which has not otherwise accrued on the date of such demand, and the Lenders do not intend to charge or receive any unearned interest in the event of such demand. All
interest paid or agreed to be paid to the Lenders with respect to the Loans shall, to the extent permitted by applicable law, be amortized, prorated, allocated, and spread throughout the full stated term (including any renewal or extension) of the
Loans so that the amount of interest on account of such Indebtedness does not exceed the maximum nonusurious amount permitted by applicable law. 
  

	 	3.7	Pro Rata Treatment. 

  
 Except to the extent otherwise provided herein: 
  
 (a) Loans. Each Loan borrowing, each payment or prepayment of principal of any Loan or reimbursement obligations arising from drawings under
Letters of Credit, each payment of interest on any Loan or reimbursement obligations arising from drawings under Letters of Credit, each payment of fees (other than the administrative fees retained by the Agent for its own account), each reduction
of the Revolving Committed Amount, and each conversion or continuation of any Loan shall be allocated pro rata among the relevant Lenders in accordance with the respective Revolving Loan Commitment Percentages of such Lenders (or, if the Commitments
of such Lenders have expired or been terminated, in accordance with the respective principal amounts of their outstanding Loans and participation interests in LOC Obligations and Swingline Loans of such Lenders). 
  
 (b) Advances. 
  
 (i) The obligations of the Lenders hereunder to make Loans
and to fund participations in Letters of Credit and Swingline Loans are several and not joint. The failure of any Lender to make any Loan or to fund any such participation on any date required hereunder shall not relieve any other Lender of its
corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to so make its Loan or purchase its participation. 
  

 35 

 (ii) Unless the Borrower or any Lender has notified the Agent, prior to the date any
payment is required to be made by it to the Agent hereunder, that the Borrower or such Lender, as the case may be, will not make such payment, the Agent may assume that the Borrower or such Lender, as the case may be, has timely made such payment
and may (but shall not be so required to), in reliance thereon, make available a corresponding amount to the Person entitled thereto. If and to the extent that such payment was not in fact made to the Agent in immediately available funds, then:

  
 (A) if the Borrower failed to make such
payment, each Lender shall forthwith on demand repay to the Agent the portion of such assumed payment that was made available to such Lender in immediately available funds, together with interest thereon in respect of each day from and including the
date such amount was made available by the Agent to such Lender to the date such amount is repaid to the Agent in immediately available funds at the Federal Funds Rate from time to time in effect; and 
  
 (B) if any Lender failed to make such payment, such Lender
shall forthwith on demand pay to the Agent the amount thereof in immediately available funds, together with interest thereon for the period from the date such amount was made available by the Agent to the Borrower to the date such amount is
recovered by the Agent (the “Compensation Period”) at a rate per annum equal to the Federal Funds Rate from time to time in effect. If such Lender pays such amount to the Agent, then such amount shall constitute such Lender’s
Loan included in the applicable borrowing. If such Lender does not pay such amount forthwith upon the Agent’s demand therefor, the Agent may make a demand therefor upon the Borrower, and the Borrower shall pay such amount to the Agent, together
with interest thereon for the Compensation Period at a rate per annum equal to the rate of interest applicable to the applicable borrowing. Nothing herein shall be deemed to relieve any Lender from its obligation to fulfill its Commitment or to
prejudice any rights which the Agent or the Borrower may have against any Lender as a result of any default by such Lender hereunder. 
  
 A notice of the Agent to any Lender or the Borrower with respect to any amount owing under this subsection (b)(ii) shall be conclusive, absent manifest
error. 
  
 (iii) If any Lender makes available to
the Agent funds for any Loan to be made by such Lender as provided in this Credit Agreement, and such funds are not made available to the Borrower by the Agent because the conditions to the applicable Extension of Credit set forth in Section 5.2 are
not satisfied or waived in accordance with the terms hereof, the Agent shall return such funds (in like funds as received from such Lender) to such Lender, without interest. 
  

	 	3.8	Allocation of Payments After Acceleration. 

  
 Notwithstanding any other provisions of this Credit Agreement, after the acceleration of the Credit Party Obligations pursuant to Section 9.2, all amounts
collected or received by an Agent or any Lender on account of amounts outstanding under any of the Credit Documents or in respect of the Collateral shall be paid over or delivered as follows: 
  
 FIRST, to the payment of all reasonable out-of-pocket costs
and expenses (including without limitation reasonable attorneys’ fees) of the Agent in connection with enforcing the rights of 

  

 36 

 
the Lenders under the Credit Documents and any protective advances made by the Agent with respect to the Collateral under or pursuant to the terms of the
Collateral Documents; 
  
 SECOND, to payment of
any fees owed to an Agent in its capacity as Agent; 
  
 THIRD, to the payment of all reasonable out-of-pocket costs and expenses, (including, without limitation, reasonable attorneys’ fees) of each of the Lenders in connection with enforcing its rights under the Credit Documents;

  
 FOURTH, to the payment of all accrued fees
and interest payable to the Lenders hereunder; 
  
 FIFTH, to the payment of the outstanding principal amount of the Loans (including the payment or cash collateralization of the outstanding LOC Obligations), and to any amounts owing under Hedging Agreements or under Treasury Management
Agreements between any Credit Party and any Lender, or any Affiliate of a Lender, pro rata, as set forth below; 
  
 SIXTH, to all other obligations which shall have become due and payable under the Credit Documents and not repaid pursuant to clauses
“FIRST” through “FIFTH” above; and 
  
 SEVENTH, to the payment of the surplus, if any, to whomever may be lawfully entitled to receive such surplus. 
  
 In carrying out the foregoing, (a) amounts received shall be applied in the numerical order provided until exhausted prior to application to the next succeeding category;
(b) each of the Lenders shall receive an amount equal to its pro rata share (based on the proportion that the then outstanding Loans and obligations under Hedging Agreements and Treasury Management Agreements held by such Lender bears to the
aggregate then outstanding Loans and obligations under Hedging Agreements and Treasury Management Agreements) of amounts available to be applied pursuant to clauses “THIRD”, “FOURTH,” “FIFTH,” and “SIXTH”
above; and (c) to the extent that any amounts available for distribution pursuant to clause “FIFTH” above are attributable to the issued but undrawn amount of outstanding Letters of Credit, such amounts shall be held by the Agent as Cash
Collateral and applied (A) first, to reimburse the Issuing Lender for any drawings under such Letters of Credit and (B) then, following the expiration of all Letters of Credit, to all other obligations of the types described in clauses
“FIFTH” and “SIXTH” above in the manner provided in this Section 3.8. 
  

	 	3.9	Sharing of Payments. 

  
 The Lenders agree among themselves for the benefit of themselves that, except to the extent otherwise provided herein, in the event that any Lender shall
obtain payment in respect of any Loan, LOC Obligation, any participation interest in Swingline Loans, or any other obligation owing to such Lender under this Credit Agreement (but not including any amounts applied by the Swingline Lender to
outstanding Swingline Loans) through the exercise of a right of setoff, banker’s lien or counterclaim, or pursuant to a secured claim under Section 506 of the Bankruptcy Code or other security or interest arising from, or in lieu of, such
secured claim, received by such Lender under any applicable bankruptcy, insolvency or other similar law or otherwise, or by any other means, in excess of its pro rata share of such payment as provided for in this Credit Agreement, such Lender shall
promptly purchase from the other Lenders for cash an interest in such Loans, LOC Obligations and other obligations in such amounts, and make such other adjustments from time to time, as shall be equitable to the end that all Lenders share such

  

 37 

 
payment in accordance with their respective ratable shares as provided for in this Credit Agreement. The Lenders further agree among themselves that if
payment to a Lender obtained by such Lender, whether through the exercise of a right of setoff, banker’s lien, counterclaim or otherwise, shall be rescinded or must otherwise be restored, each Lender which shall have shared the benefit of such
payment shall, by repurchase of the interest theretofore sold, return its share of that benefit (together with its share of any accrued interest payable with respect thereto) to each Lender whose payment shall have been rescinded or otherwise
restored. The Borrower agrees that any Lender so purchasing such an interest may, to the fullest extent permitted by law, exercise all rights of payment, including setoff, banker’s lien or counterclaim, with respect to such interest as fully as
if such Lender were a holder of such Loan, LOC Obligation or other obligation in the amount of such interest. Except as otherwise expressly provided in this Credit Agreement, if any Lender or the Agent shall fail to remit to the Agent or any other
Lender an amount payable by such Lender or the Agent to the Agent or such other Lender pursuant to this Credit Agreement on the date when such amount is due, such payments shall be made together with interest thereon for each date from the date such
amount is due until the date such amount is paid to the Agent or such other Lender at a rate per annum equal to the Federal Funds Rate. If under any applicable bankruptcy, insolvency or other similar law, any Lender receives a secured claim in lieu
of a setoff to which this Section 3.9 applies, such Lender shall, to the extent practicable, exercise its rights in respect of such secured claim in a manner consistent with the rights of the Lenders under this Section 3.9 to share in the benefits
of any recovery on such secured claim. 
  

	 	3.10	Capital Adequacy. 

  
 If, after the date hereof, any Lender has determined that the adoption or the becoming effective of, or any change in, or any change by any Governmental
Authority, central bank or comparable agency charged with the interpretation or administration thereof in the interpretation or administration of, any applicable law, rule or regulation regarding capital adequacy, or compliance by such Lender with
any request or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank or comparable agency, has or would have the effect of reducing the rate of return on such Lender’s capital or
assets as a consequence of its commitments or obligations hereunder to a level below that which such Lender could have achieved but for such adoption, effectiveness, change or compliance (taking into consideration such Lender’s policies with
respect to capital adequacy), then, upon notice from such Lender to the Borrower, the Borrower shall be obligated to pay to such Lender such additional amount or amounts as will compensate such Lender for such reduction. Each determination by any
such Lender of amounts owing under this Section shall, absent manifest error, be conclusive and binding on the parties hereto. 
  

	 	3.11	Inability To Determine Interest Rate. 

  
 If prior to the first day of any Interest Period, the Agent shall have determined (which determination shall be conclusive and binding upon the Borrower)
that, by reason of circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining the Eurodollar Rate for such Interest Period, the Agent shall promptly give telecopy or telephonic notice thereof to the
Borrower and the Lenders. If such notice is given (a) any Eurodollar Loans requested to be made on the first day of such Interest Period shall be made as Base Rate Loans, (b) any Loans that were to have been converted on the first day of such
Interest Period to or continued as Eurodollar Loans shall be converted to or continued as Base Rate Loans and (c) any outstanding Eurodollar Loans shall be converted, on the first day of such Interest Period, to Base Rate Loans. Until such notice
has been withdrawn by the Agent, no further Eurodollar Loans shall be made or continued as such, nor shall the Borrower have the right to convert Base Rate Loans to Eurodollar Loans. 
  

 38 

	 	3.12	Illegality. 

  
 Notwithstanding any other provision herein, if the adoption of or any change in any Requirement of Law or in the interpretation or application thereof
occurring after the Closing Date shall make it unlawful for any Lender to make or maintain Eurodollar Loans as contemplated by this Credit Agreement, (a) such Lender shall promptly give written notice of such circumstances to the Borrower and the
Agent (which notice shall be withdrawn whenever such circumstances no longer exist), (b) the commitment of such Lender hereunder to make Eurodollar Loans, continue Eurodollar Loans as such and convert a Base Rate Loan to Eurodollar Loans shall
forthwith be canceled and, until such time as it shall no longer be unlawful for such Lender to make or maintain Eurodollar Loans, such Lender shall then have a commitment only to make a Base Rate Loan when a Eurodollar Loan is requested and (c)
such Lender’s Loans then outstanding as Eurodollar Loans, if any, shall be converted automatically to Base Rate Loans on the respective last days or the then current Interest Periods with respect to such Loans or within such earlier period as
required by law. If any such conversion of a Eurodollar Loan occurs on a day which is not the last day of the then current Interest Period with respect thereto, the Borrower shall pay to such Lender such amounts, if any, as may be required pursuant
to Section 3.15. 
  

	 	3.13	Requirements of Law. 

  
 If the adoption of or any change in any Requirement of Law or in the interpretation or application thereof applicable to any Lender, or compliance by any
Lender with any request or directive (whether or not having the force of law) from any central bank or other Governmental Authority, in each case made subsequent to the Closing Date (or, if later, the date on which such Lender becomes a Lender):

  
 (a) shall subject such Lender to any tax of
any kind whatsoever with respect to any Eurodollar Loans made by it or its obligation to make Eurodollar Loans, or change the basis of taxation of payments to such Lender in respect thereof (except for Non-Excluded Taxes covered by Section 3.14
(including Non-Excluded Taxes imposed solely by reason of any failure of such Lender to comply with its obligations under Section 3.14(b)) and changes in taxes measured by or imposed upon the overall net income, or franchise tax (imposed in lieu of
such net income tax), of such Lender or its applicable lending office, branch, or any affiliate thereof); 
  
 (b) shall impose, modify or hold applicable any reserve, special deposit, compulsory loan or similar requirement against assets held by,
deposits or other liabilities in or for the account of, advances, loans or other extensions of credit by, or any other acquisition of funds by, any office of such Lender which is not otherwise included in the determination of the Eurodollar Rate
hereunder; or 
  
 (c) shall impose on such Lender
any other condition (excluding any tax of any kind whatsoever); 
  
 and the result
of any of the foregoing is to increase the cost to such Lender, by an amount which such Lender reasonably deems to be material, of making, converting into, continuing or maintaining Eurodollar Loans or to reduce any amount receivable hereunder in
respect thereof, then, in any such case, upon notice to the Borrower from such Lender, through the Agent, in accordance herewith, the Borrower shall be obligated to promptly pay such Lender, upon its demand, any additional amounts necessary to
compensate such Lender for such increased cost or reduced amount receivable, provided that, in any such case, the Borrower may elect to convert the Eurodollar Loans made by such Lender hereunder to Base Rate Loans by 

  

 39 

 
giving the Agent at least one Business Day’s notice of such election, in which case the Borrower shall promptly pay to such Lender, upon demand, without
duplication, such amounts, if any, as may be required pursuant to Section 3.15. If any Lender becomes entitled to claim any additional amounts pursuant to this Section 3.13, it shall provide prompt notice thereof to the Borrower, through the Agent,
certifying (x) that one of the events described in this Section 3.13 has occurred and describing in reasonable detail the nature of such event, (y) as to the increased cost or reduced amount resulting from such event and (z) as to the additional
amount demanded by such Lender and a reasonably detailed explanation of the calculation thereof. Such a certificate as to any additional amounts payable pursuant to this Section 3.13 submitted by such Lender, through the Agent, to the Borrower shall
be conclusive and binding on the parties hereto in the absence of manifest error. This covenant shall survive the termination of this Credit Agreement and the payment of the Loans and all other amounts payable hereunder. 
  

	 	3.14	Taxes. 

  
 (a) Except as provided below in this Section 3.14, all payments made by the Borrower under this Credit Agreement and any Notes shall be
made free and clear of, and without deduction or withholding for or on account of, any present or future income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now or hereafter imposed, levied, collected,
withheld or assessed by any court, or governmental body, agency or other official, excluding taxes measured by or imposed upon the overall net income of any Lender or its applicable lending office, or any branch or affiliate thereof, and all
franchise taxes, branch taxes, taxes on doing business or taxes on the overall capital or net worth of any Lender or its applicable lending office, or any branch or affiliate thereof, in each case imposed in lieu of net income taxes: (i) by the
jurisdiction under the laws of which such Lender, applicable lending office, branch or affiliate is organized or is located, or in which its principal executive office is located, or any nation within which such jurisdiction is located or any
political subdivision thereof; or (ii) by reason of any connection between the jurisdiction imposing such tax and such Lender, applicable lending office, branch or affiliate other than a connection arising solely from such Lender having executed,
delivered or performed its obligations, or received payment under or enforced, this Credit Agreement or any Notes. If any such non-excluded taxes, levies, imposts, duties, charges, fees, deductions or withholdings (“Non-Excluded
Taxes”) are required to be withheld from any amounts payable to the Agent or any Lender hereunder or under any Notes, (A) the amounts so payable to the Agent or such Lender shall be increased to the extent necessary to yield to an Agent or
such Lender (after payment of all Non-Excluded Taxes) interest or any such other amounts payable hereunder at the rates or in the amounts specified in this Credit Agreement and any Notes, provided, however, that the Borrower shall be
entitled to deduct and withhold any Non-Excluded Taxes and shall not be required to increase any such amounts payable to any Lender that is not organized under the laws of the United States of America or a state thereof if such Lender fails to
comply with the requirements of paragraph (b) of this Section 3.14 whenever any Non-Excluded Taxes are payable by the Borrower, and (B) as promptly as possible thereafter the Borrower shall send to the Agent for its own account or for the account of
such Lender, as the case may be, a certified copy of an original official receipt received by the Borrower showing payment thereof. If the Borrower fails to pay any Non-Excluded Taxes when due to the appropriate taxing authority or fails to remit to
the Agent the required receipts or other required documentary evidence, the Borrower shall indemnify the Agent and the Lenders for any incremental taxes, interest or penalties that may become payable by the Agent or any Lender as a result of any
such failure. The agreements in this subsection shall survive the termination of this Credit Agreement and the payment of the Loans, the LOC Obligations and all other amounts payable hereunder. 
  

 40 

 (b) Each Lender that is not a “United States Person” within the meaning of
Section 7701(a)(30) of the Code shall: 
  
 (i)(A)
on or before the date of any payment by the Borrower under this Credit Agreement or Notes to such Lender, deliver to the Borrower and the Agent (x) two duly completed copies of United States Internal Revenue Service Form W-8BEN or W-8ECI, or
successor applicable form, as the case may be, certifying that it is entitled to receive payments under this Credit Agreement and any Notes without deduction or withholding of any United States federal income taxes and (y) an Internal Revenue
Service Form W-8 or W-9, or successor applicable form, as the case may be, certifying that it is entitled to an exemption from United States backup withholding tax; 
  
 (B) deliver to the Borrower and the Agent two further copies of any such form or certification on or before
the date that any such form or certification expires or becomes obsolete and after the occurrence of any event requiring a change in the most recent form previously delivered by it to the Borrower; and 
  
 (C) obtain such extensions of time for filing and complete
such forms or certifications as may reasonably be requested by the Borrower or the Agent; or 
  
 (ii) (A) represent to the Borrower (for the benefit of the Borrower and the Agent) that it is not a “United States Person”
within the meaning of Section 7701(a)(30) of the Code, (B) agree to furnish to the Borrower, on or before the date of any payment by the Borrower, with a copy to the Agent, two accurate and complete original signed copies of Internal Revenue Service
Form W-8, or successor applicable form certifying to such Lender’s legal entitlement at the date of such certificate to an exemption from U.S. withholding tax under the provisions of Section 881(c) of the Code with respect to payments to be
made under this Credit Agreement and any Notes (and to deliver to the Borrower and the Agent two further copies of such form on or before the date it expires or becomes obsolete and after the occurrence of any event requiring a change in the most
recently provided form and, if necessary, obtain any extensions of time reasonably requested by the Borrower or the Agent for filing and completing such forms), and (C) agree, to the extent legally entitled to do so, upon reasonable request by the
Borrower, to provide to the Borrower (for the benefit of the Borrower and the Agent) such other forms as may be reasonably required in order to establish the legal entitlement of such Lender to an exemption from withholding with respect to payments
under this Credit Agreement and any Notes. 
  
 Notwithstanding
the above, if any change in treaty, law or regulation has occurred after the date such Person becomes a Lender hereunder which renders all such forms inapplicable or which would prevent such Lender from duly completing and delivering any such form
with respect to it and such Lender so advises the Borrower and the Agent then such Lender shall be exempt from such requirements. 
  

 41 

	 	3.15	Indemnity. 

  
 Upon the written demand of any Lender, the Borrower shall promptly compensate such Lender for and hold such Lender harmless from any loss, cost or expense
incurred by it as a result of: 
  
 (a) any
continuation, conversion, payment or prepayment of any Eurodollar Loan on a day other than the last day of the Interest Period for such Eurodollar Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise); 

 
 (b) any failure by the Borrower (for a reason other than
the failure of such Lender to make a Eurodollar Loan) to prepay, borrow, continue or convert any Eurodollar Loan on the date or in the amount previously requested by the Borrower; or 
  
 (c) any assignment of a Eurodollar Loan on a day other than the last day of the Interest Period therefor as
a result of: 
  
 (i) a request by the Borrower
pursuant to Section 3.16; or 
  
 (ii) an
assignment by Bank of America pursuant to Section 11.3(b) as part of the primary syndication of the Commitments and Loans during the 180-day period immediately following the Closing Date, provided that Bank of America agrees to use reasonable
efforts to reduce the breakage costs payable by the Borrower in connection therewith (including, without limitation, to the extent reasonably practical, closing such assignments at the end of Interest Periods of outstanding Eurodollar Loans).

  
 The amount each such Lender shall be compensated pursuant to this Section 3.15
shall include, without limitation, (i) any loss incurred by such Lender in connection with the re-employment of funds prepaid, repaid, not borrowed or paid, as the case may be and (ii) any reasonable out-of-pocket expenses (including reasonable
attorneys’ fees) incurred and reasonably attributable thereto. 
  
 For
purposes of calculating amounts payable by the Borrower to the Lenders under this Section 3.15, each Lender may deem that it funded each Eurodollar Loan made by it at the Eurodollar Rate for such Eurodollar Loan by a matching deposit or other
borrowing in the applicable offshore Dollar interbank market for a comparable amount and for a comparable period, whether or not such Eurodollar Loan was in fact so funded. 
  

	 	3.16	Replacement of Lenders. 

  
 If any Lender delivers a notice to the Borrower pursuant to Sections 3.10, 3.13 or 3.14, then the Borrower shall have the right, if no Default or Event of
Default then exists, to either (i) replace such Lender (the “Replaced Lender”) with one or more additional banks or financial institutions (collectively, the “Replacement Lender”), provided that (A) at the
time of any replacement pursuant to this Section 3.16, the Replacement Lender shall enter into one or more assignment agreements substantially in the form of Exhibit 11.3 pursuant to, and in accordance with the terms of, Section 11.3(b) (and
with all fees payable pursuant to said Section 11.3(b) to be paid by the Replacement Lender) pursuant to which the Replacement Lender shall acquire all of the rights and obligations of the Replaced Lender hereunder and, in connection therewith,
shall pay to the Replaced Lender in respect thereof an amount equal to the sum of (a) the principal of, and all accrued interest on, all outstanding Loans of the Replaced Lender, and (b) all accrued, but theretofore 

  

 42 

 
unpaid, fees owing to the Replaced Lender pursuant to Section 3.4, and (B) all obligations of the Borrower owing to the Replaced Lender (including all
obligations, if any, owing pursuant to Section 3.10, 3.13 or 3.14, but excluding those obligations specifically described in clause (A) above in respect of which the assignment purchase price has been, or is concurrently being paid) shall be paid in
full to such Replaced Lender concurrently with such replacement or (ii) if a Replacement Lender is not located within 60 days of such notice, terminate the Commitments and repay the Loans owing to such Replaced Lender. 
  
 SECTION 4 
  
 GUARANTY 
  

	 	4.1	Guaranty of Payment. 

  
 Subject to Section 4.7 below, each of the Guarantors hereby, jointly and severally, unconditionally guarantees to each Lender, each Affiliate of Lender
that enters into a Hedging Agreement or a Treasury Management Agreement and the Agent the prompt payment of the Credit Party Obligations in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration or otherwise). The
Guarantors additionally, jointly and severally, unconditionally guarantee to each Lender the timely performance of all other obligations under the Credit Documents, Hedging Agreements and Treasury Management Agreement. This Guaranty is a guaranty of
payment and not of collection and is a continuing guaranty and shall apply to all Credit Party Obligations whenever arising. 
  

	 	4.2	Obligations Unconditional. 

  
 The obligations of the Guarantors hereunder are absolute and unconditional, irrespective of the value, genuineness, validity, regularity or enforceability
of any of the Credit Documents, the Hedging Agreements or the Treasury Management Agreements, or any other agreement or instrument referred to therein, to the fullest extent permitted by applicable law, irrespective of any other circumstance
whatsoever which might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor. Each Guarantor agrees that this Guaranty may be enforced by the Lenders without the necessity at any time of resorting to or exhausting
any other security or collateral and without the necessity at any time of having recourse to the Notes or any other of the Credit Documents or any collateral, if any, hereafter securing the Credit Party Obligations or otherwise and each Guarantor
hereby waives the right to require the Lenders to proceed against the Borrower or any other Person (including a co-guarantor) or to require the Lenders to pursue any other remedy or enforce any other right. Each Guarantor further agrees that it
shall have no right of subrogation, indemnity, reimbursement or contribution against the Borrower or any other Guarantor of the Credit Party Obligations for amounts paid under this Guaranty until such time as the Lenders (and any Affiliates of
Lenders entering into Hedging Agreements or Treasury Management Agreements) have been paid in full, all Commitments under the Credit Agreement have been terminated and no Person or Governmental Authority shall have any right to request any return or
reimbursement of funds from the Lenders in connection with monies received under the Credit Documents. Each Guarantor further agrees that nothing contained herein shall prevent the Lenders from suing on the Notes or any of the other Credit
Documents, any of the Hedging Agreements or any of the Treasury Management Agreements or foreclosing its security interest in or Lien on any collateral, if any, securing the Credit Party Obligations or from exercising any other rights available to
it under this Credit Agreement, the Notes, any other of the Credit Documents, or any other instrument of security, if any, and the exercise of any of the aforesaid rights and the completion of any foreclosure proceedings shall not constitute a
discharge of any of any Guarantor’s 

  

 43 

 
obligations hereunder; it being the purpose and intent of each Guarantor that its Guarantor’s obligations hereunder shall be absolute, independent and
unconditional under any and all circumstances. Neither any Guarantor’s obligations under this Guaranty nor any remedy for the enforcement thereof shall be impaired, modified, changed or released in any manner whatsoever by an impairment,
modification, change, release or limitation of the liability of the Borrower or by reason of the bankruptcy or insolvency of the Borrower. Each Guarantor waives any and all notice of the creation, renewal, extension or accrual of any of the Credit
Party Obligations and notice of or proof of reliance by the Agent or any Lender upon this Guarantee or acceptance of this Guarantee. The Credit Party Obligations, and any of them, shall conclusively be deemed to have been created, contracted or
incurred, or renewed, extended, amended or waived, in reliance upon this Guarantee. All dealings between the Borrower and any of the Guarantors, on the one hand, and the Agent and the Lenders, on the other hand, likewise shall be conclusively
presumed to have been had or consummated in reliance upon this Guarantee. 
  

	 	4.3	Modifications. 

  
 Each Guarantor agrees that (a) all or any part of the security now or hereafter held for the Credit Party Obligations, if any, may be exchanged,
compromised or surrendered from time to time; (b) the Lenders shall not have any obligation to protect, perfect, secure or insure any such security interests, liens or encumbrances now or hereafter held, if any, for the Credit Party Obligations or
the properties subject thereto; (c) the time or place of payment of the Credit Party Obligations may be changed or extended, in whole or in part, to a time certain or otherwise, and may be renewed or accelerated, in whole or in part; (d) the
Borrower and any other party liable for payment under the Credit Documents may be granted indulgences generally; (e) any of the provisions of the Notes or any of the other Credit Documents may be modified, amended or waived; (f) any party (including
any co-guarantor) liable for the payment thereof may be granted indulgences or be released; and (g) any deposit balance for the credit of the Borrower or any other party liable for the payment of the Credit Party Obligations or liable upon any
security therefor may be released, in whole or in part, at, before or after the stated, extended or accelerated maturity of the Credit Party Obligations, all without notice to or further assent by the Guarantor, which shall remain bound thereon,
notwithstanding any such exchange, compromise, surrender, extension, renewal, acceleration, modification, indulgence or release. 
  

	 	4.4	Waiver of Rights. 

  
 Each Guarantor expressly waives: (a) notice of acceptance of this Guaranty by the Lenders and of all extensions of credit to the Borrower by the Lenders;
(b) presentment and demand for payment or performance of any of the Credit Party Obligations; (c) protest and notice of dishonor or of default (except as specifically required in the Credit Agreement) with respect to the Credit Party Obligations or
with respect to any security therefor; (d) notice of the Lenders obtaining, amending, substituting for, releasing, waiving or modifying any security interest, lien or encumbrance, if any, hereafter securing the Credit Party Obligations, or the
Lenders’ subordinating, compromising, discharging or releasing such security interests, liens or encumbrances, if any; (e) all other notices to which the Guarantor might otherwise be entitled; and (f) demand for payment under this Guaranty.

  

	 	4.5	Reinstatement. 

  
 The obligations of the Guarantors under this Section 4 shall be automatically reinstated if and to the extent that for any reason any payment by or on
behalf of any Person in respect of the Credit Party Obligations is rescinded or must be otherwise restored by any holder of any of the Credit Party Obligations, 

  

 44 

 
whether as a result of any proceedings in bankruptcy or reorganization or otherwise, and each Guarantor agrees that it will indemnify the Agent and each
Lender on demand for all reasonable costs and expenses (including, without limitation, reasonable fees of counsel) incurred by an Agent or such Lender in connection with such rescission or restoration, including any such costs and expenses incurred
in defending against any claim alleging that such payment constituted a preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or similar law. 
  

	 	4.6	Remedies. 

  
 The Guarantors agree that, as between the Guarantors, on the one hand, and the Agent and the Lenders, on the other hand, the Credit Party Obligations may
be declared to be forthwith due and payable as provided in Section 9 (and shall be deemed to have become automatically due and payable in the circumstances provided in Section 9) notwithstanding any stay, injunction or other prohibition preventing
such declaration (or preventing such Credit Party Obligations from becoming automatically due and payable) as against any other Person and that, in the event of such declaration (or such Credit Party Obligations being deemed to have become
automatically due and payable), such Credit Party Obligations (whether or not due and payable by any other Person) shall forthwith become due and payable by the Guarantors. The Guarantors acknowledge and agree that their obligations hereunder are
secured in accordance with the terms of the Security Agreement and the other Collateral Documents and that the Lenders may exercise their remedies thereunder in accordance with their terms. 
  

	 	4.7	Limitation of Guaranty. 

  
 Notwithstanding any provision to the contrary contained herein or in any other of the Credit Documents, Hedging Agreements or Treasury Management
Agreements, the obligations of each Guarantor hereunder shall be limited to an aggregate amount equal to the largest amount that would not render its obligations hereunder subject to avoidance under Section 548 of the Bankruptcy Code or any
comparable provisions of any applicable state law. 
  

	 	4.8	Rights of Contribution. 

  
 The Guarantors agree among themselves that, in connection with payments made hereunder, each Guarantor shall have contribution rights against the other
Guarantors as permitted under applicable law. Such contribution rights shall be subordinate and subject in right of payment to the obligations of such Guarantors under the Credit Documents and no Guarantor shall exercise such rights of contribution
until all Credit Party Obligations have been paid in full and the Commitments have terminated. 
  

 45 

 SECTION 5 
  

CONDITIONS PRECEDENT 
  

	 	5.1	Closing Conditions. 

  
 The obligation of the Lenders to enter into this Credit Agreement and make the initial Extension of Credit is subject to satisfaction of the following
conditions (in form and substance acceptable to the Lenders in their sole discretion): 
  
 (a) Executed Credit Documents. Receipt by the Agent of duly executed copies of: (i) this Credit Agreement; (ii) the Notes; (iii)
the Collateral Documents and (iv) all other Credit Documents. 
  
 (b) Corporate Documents. Receipt by the Agent of the following: 
  
 (i) Charter Documents. Copies of the articles or certificates of incorporation or other charter documents of each Credit Party
certified to be true and complete as of a recent date by the appropriate Governmental Authority of the state or other jurisdiction of its incorporation and certified by a secretary or assistant secretary of such Credit Party to be true and correct
as of the Closing Date. 
  
 (ii) Bylaws. A
copy of the bylaws of each Credit Party certified by a secretary or assistant secretary of such Credit Party to be true and correct as of the Closing Date. 
  
 (iii) Resolutions. Copies of resolutions of the Board of Directors of each Credit Party approving and adopting the Credit Documents
to which it is a party, the transactions contemplated therein and authorizing execution and delivery thereof, certified by a secretary or assistant secretary of such Credit Party to be true and correct and in force and effect as of the Closing Date.

  
 (iv) Good Standing. Copies of
certificates of good standing, existence or its equivalent with respect to each Credit Party certified as of a recent date by the appropriate Governmental Authorities of the state or other jurisdiction of incorporation and each other jurisdiction in
which the failure to so qualify and be in good standing would have a Material Adverse Effect on the business or operations of a Credit Party in such jurisdiction. 
  
 (v) Incumbency. An incumbency certificate of each Credit Party certified by a secretary or assistant
secretary to be true and correct as of the Closing Date. 
  
 (c) Financial Statements. Receipt by the Agent and the Lenders of the consolidated and consolidating financial statements of the Borrower and its Subsidiaries for fiscal year ending November 30, 2003, including
balance sheets and income and cash flow statements, audited by nationally recognized independent public accountants and containing an unqualified opinion of such firm that such statements fairly present in all material respects the consolidated
financial condition of the Borrower and its Subsidiaries and have been prepared in conformity with GAAP and interim unaudited quarterly financial statements of the Borrower and its Subsidiaries, prepared in conformity with GAAP, for the trailing
twelve months of the Borrower and first projected year of the Borrower and working capital detail for the trailing twelve months of the Borrower and the first projected fiscal year of the Borrower. 
  
 (d) Opinion of Counsel. Receipt by the Lenders of an
opinion, or opinions (which shall cover, among other things, authority, legality, validity, binding effect, enforceability and attachment and perfection of liens), satisfactory to the Agent, addressed to the Agent and the Lenders and dated as of the
Closing Date, from legal counsel to the Credit Parties. 
  

 46 

 (e) Personal Property Collateral. The Agent shall have received, in form and
substance satisfactory to the Agent: 
  
 (i)
searches of Uniform Commercial Code (“UCC”) filings in the jurisdiction of the chief executive office of each Credit Party, the jurisdiction of organization of each Credit Party and each jurisdiction where any Collateral is located or
where a filing would need to be made in order to perfect the Agent’s security interest, for the benefit of the Lenders, in the Collateral, copies of the financing statements on file in such jurisdictions and evidence that no Liens exist other
than Permitted Liens; 
  
 (ii) UCC financing
statements for each appropriate jurisdiction as is necessary, in the Agent’s sole discretion, to perfect the Agent’s security interest, for the benefit of the Lenders, in the Collateral; 
  
 (iii) searches of ownership of intellectual property in the
appropriate governmental offices and such United States or Canadian patent/trademark/copyright filings as requested by the Agent in order to perfect the Agent’s security interest in the Collateral; 
  
 (iv) all stock certificates evidencing the stock pledged to
the Agent pursuant to the Pledge Agreement, together with duly executed in blank undated stock powers attached thereto; and 
  
 (v) all instruments and chattel paper in the possession of a Credit Party together with allonges or assignments as may be necessary or
appropriate to perfect the Lenders’ security interest in the Collateral. 
  
 (f) Evidence of Insurance. Receipt by the Agent of copies of insurance policies or certificates of insurance of the Borrower and its Subsidiaries evidencing liability and casualty insurance meeting the
requirements set forth in the Credit Documents, including, but not limited to, naming the Agent as sole loss payee on behalf of the Lenders. 
  
 (g) Material Adverse Effect. With respect to the Borrower and its Subsidiaries, there shall not have occurred a change since
November 30, 2003 that has had or could reasonably be expected to have a Material Adverse Effect (including matters related to litigation, tax, accounting, labor, insurance and pension liabilities). 
  
 (h) Litigation. There shall not exist any pending or
threatened action, suit, investigation or proceeding which if adversely determined against the Borrower or any of its Subsidiaries would have or would reasonably be expected to have a Material Adverse Effect.  
  
 (i) Closing Date Financings. The Agent shall be
satisfied that (i) the Borrower shall have received (i) gross proceeds of at least $75 million from the issuance by the Borrower of floating rate notes under the Floating Rate Indenture on terms that are satisfactory to the Agent and (ii) gross
proceeds of at least $125 million from the issuance by the Borrower of subordinated notes under the Subordinated Indenture on terms that are satisfactory to the Agent. The Agent shall have received a copy, certified by a Responsible Officer of the
Borrower as true and complete, of each of the Floating Rate Indenture and the Subordinated Indenture as originally executed and delivered, 

  

 47 

 
together with all exhibits and schedules thereto. The Borrower shall have applied the proceeds of the notes issued under the Floating Rate Indenture and the
Subordinated Indenture to pay approximately $180.7 million of Indebtedness evidenced by the Existing Indenture. 
  
 (j) Officer’s Certificate. The Agent shall have received a certificate executed by the chief financial officer of the Borrower
as of the Closing Date stating that (A) the Borrower and each of the Borrower’s Subsidiaries are in compliance with all existing financial obligations, (B) all governmental, shareholder and third party consents and approvals, if any, with
respect to the Credit Documents and the transactions contemplated thereby have been obtained, (C) no action, suit, investigation or proceeding is pending or threatened in any court or before any arbitrator or governmental instrumentality that
purports to effect the Borrower, any of the Borrower’s Subsidiaries or any transaction contemplated by the Credit Documents, or could have or might be reasonably expected to have a Material Adverse Effect, and (D) immediately after giving
effect to this Credit Agreement, the other Credit Documents and all the transactions contemplated herein or therein to occur on such date, (1) the Borrower and each of its Subsidiaries is Solvent, (2) no Default or Event of Default exists, (3) all
representations and warranties contained herein and in the other Credit Documents are true and correct in all material respects, and (4) the Credit Parties are in compliance with each of the financial covenants set forth in Section 7.12. 

 
 (k) Fees and Expenses. Payment by the Credit
Parties of all fees and expenses owed by them to the Lenders and the Agent, including, without limitation, payment to the Agent of the fees set forth in the Fee Letter. 
  
 (l) First Priority Lien. Receipt by the Agent of evidence satisfactory in form and substance to the
Agent, that the Agent, on behalf of the Lenders, holds a perfected, first priority lien, subject to no other Liens other than Permitted Liens, in the Collateral. 
  
 (m) Other. Receipt by the Lenders of such other documents, instruments, agreements or information as
reasonably requested by any Lender, including, but not limited to, information regarding litigation, tax, accounting, labor, insurance, pension liabilities (actual or contingent), real estate leases, material contracts, debt agreements, property
ownership and contingent liabilities of the Borrower and its Subsidiaries. 
  

	 	5.2	Conditions to All Extensions of Credit. 

  
 In addition to the conditions precedent stated elsewhere herein, the Lenders shall not be obligated to make, continue or convert Loans (nor shall the
Issuing Lender be obligated to issue any Letter of Credit) hereunder unless: 
  
 (a) Notice. The Borrower shall have delivered (i) in the case of any new Revolving Loan, a Notice of Borrowing, duly executed and completed, by the time specified in Section 2.1, (ii) in the case of any Letter
of Credit, a Letter of Credit Application, duly executed and completed, by the time specified in Section 2.2, (iii) in the case of any new Swingline Loan, a Swingline Loan Notice, duly executed and completed, by the time specified in Section 2.3 and
(iv) in the case of any continuation or conversion of a Loan, a duly executed and completed Notice of Continuation/Conversion by the time specified in Section 2.4; 
  

 48 

 (b) Representations and Warranties. The representations and warranties made by the
Credit Parties in any Credit Document are true and correct in all material respects at and as if made as of such date; 
  
 (c) No Default. No Default or Event of Default shall exist or be continuing either prior to or after giving effect thereto;

  
 (d) No Material Adverse Effect. There
shall not have occurred any Material Adverse Effect; and 
  
 (e) Availability. Immediately after giving effect to the making of such Loan (and the application of the proceeds thereof) or the issuance of such Letter of Credit, the sum of the Revolving Loans outstanding
plus LOC Obligations outstanding plus the Swingline Loans outstanding shall not exceed the Revolving Commitment Amount. 
  
 The delivery of each Notice of Borrowing and each Notice of Extension/Conversion shall constitute a representation and warranty by the Borrower of the
correctness of the matters specified in subsections (b), (c), (d) and (e) above. 
  
 SECTION 6 
  
 REPRESENTATIONS AND WARRANTIES 
  
 The
Credit Parties hereby represent to the Agent and each Lender that: 
  

	 	6.1	Financial Condition. 

  
 The financial statements delivered to the Lenders pursuant to Section 5.1(c), (a) have been prepared in accordance with GAAP and (b) present fairly (on
the basis disclosed in the footnotes to such financial statements) the consolidated and consolidating (as applicable) financial condition, results of operations and cash flows of the Credit Parties and their Subsidiaries as of such date and for such
periods. Since November 30, 2003, there has been no sale, transfer or other disposition by the Borrower or any of its Subsidiaries of any material part of the business or property of the Borrower or any of its Subsidiaries, and no purchase or other
acquisition by any of them of any business or assets material in relation to the consolidated financial condition of the Borrower and its Subsidiaries, in each case, which, is not reflected in the foregoing financial statements or in the notes
thereto. 
  

	 	6.2	No Material Change. 

  
 Since November 30, 2003, (a) there has been no development or event relating to or affecting Borrower or any of its Subsidiaries which has had or would be
reasonably expected to have a Material Adverse Effect and (b) other than the Borrower’s repurchase of 16,000 shares of its Capital Stock for $318,750 prior to the Closing Date, no dividends or other distributions have been declared, paid or
made upon the Capital Stock in Borrower or any of its Subsidiaries nor, except as otherwise permitted under this Credit Agreement, has any of the Capital Stock in a Credit Party been redeemed, retired, purchased or otherwise acquired for value.

  

 49 

	 	6.3	Organization and Good Standing. 

  
 The Borrower and each of its Subsidiaries (a) is duly organized, validly existing and in good standing under the laws of the State (or other jurisdiction)
of its organization, (b) is duly qualified and in good standing authorized to do business in every jurisdiction where the failure to be so qualified would have a Material Adverse Effect and (c) has the requisite power and authority to own its
properties and to carry on its business as now conducted and as proposed to be conducted. 
  

	 	6.4	Due Authorization. 

  
 Each Credit Party (a) has the requisite power and authority to execute, deliver and perform this Credit Agreement and the other Credit Documents to which
it is a party and to incur the obligations herein and therein provided for and (b) is duly authorized to, and has been authorized by all necessary action, to execute, deliver and perform this Credit Agreement and the other Credit Documents to which
it is a party. 
  

	 	6.5	No Conflicts. 

  
 Neither the execution and delivery of the Credit Documents, nor the consummation of the transactions contemplated therein, nor performance of and
compliance with the terms and provisions thereof by such Credit Party will (a) violate or conflict with any provision of its articles or certificate of incorporation or bylaws, (b) violate, contravene or materially conflict with any Requirement of
Law or any other law, regulation (including, without limitation, Regulation U or Regulation X), order, writ, judgment, injunction, decree or permit applicable to it, (c) violate, contravene or conflict with contractual provisions of, or cause an
event of default under, any indenture, loan agreement, mortgage, deed of trust, contract or other agreement or instrument to which it is a party or by which it may be bound, the violation of which could have or might be reasonably expected to have a
Material Adverse Effect, or (d) result in or require the creation of any Lien (other than those contemplated in or created in connection with the Credit Documents) upon or with respect to its properties. 
  

	 	6.6	Consents. 

  
 No consent, approval, authorization or order of, or filing, registration or qualification with, any court or Governmental Authority or third party in
respect of a Credit Party is required in connection with the execution, delivery or performance of this Credit Agreement or any of the other Credit Documents by a Credit Party, or if required, such consent, approval and authorization has been
obtained. 
  

	 	6.7	Enforceable Obligations. 

  
 This Credit Agreement and the other Credit Documents have been duly executed and delivered and constitute legal, valid and binding obligations of each
Credit Party enforceable against such Credit Party in accordance with their respective terms, except as may be limited by bankruptcy or insolvency laws or similar laws affecting creditors’ rights generally or by general equitable principles.

  

	 	6.8	No Default. 

  
 Neither the Borrower nor any of its Subsidiaries is in default in any respect under any contract, lease, loan agreement, indenture, mortgage, security
agreement or other agreement or obligation to which it is a party or by which any of its properties is bound which default would have or would be reasonably 

  

 50 

 
expected to have a Material Adverse Effect. No Default or Event of Default has occurred or exists except as previously disclosed to the Lenders. 

 

	 	6.9	Ownership. 

  
 The Borrower and each of its Subsidiaries is the owner of and has good and marketable title to all of its assets and none of such assets are subject to
any Lien other than Permitted Liens. 
  

	 	6.10	Indebtedness. 

  
 The Borrower and its Subsidiaries have no Indebtedness except (a) as disclosed in the financial statements referenced in Section 6.1, (b) as set forth on
Schedule 6.10 and (c) as otherwise permitted by this Credit Agreement. 
  

	 	6.11	Litigation. 

  
 There are no actions, suits or legal, equitable, arbitration or administrative proceedings, pending or, to the knowledge of any Credit Party, threatened
against the Borrower or any of its Subsidiaries which, if adversely determined, would have or would be reasonably expected to have a Material Adverse Effect. 
  

	 	6.12	Taxes. 

  
 Each of the Borrower and its Subsidiaries has filed, or caused to be filed, all tax returns (federal, state, local and foreign) required to be filed and
paid (a) all amounts of taxes shown thereon to be due (including interest and penalties) and (b) all other taxes, fees, assessments and other governmental charges (including mortgage recording taxes, documentary stamp taxes and intangibles taxes)
owing by it, except for such taxes (i) which are not yet delinquent or (ii) that are being contested in good faith and by proper proceedings, and against which adequate reserves are being maintained in accordance with GAAP. No Credit Party is aware
of any proposed tax assessments against it, any of its Subsidiaries or any other Credit Party. 
  

	 	6.13	Compliance with Law. 

  
 Each of the Borrower and its Subsidiaries is in compliance with all Requirements of Law and all other laws, rules, regulations, orders and decrees
(including without limitation Environmental Laws) applicable to it, or to its properties, unless such failure to comply would not have or would not be reasonably expected to have a Material Adverse Effect. No Requirement of Law would be reasonably
expected to cause a Material Adverse Effect. 
  

	 	6.14	ERISA. 

  
 Except as would not result in a Material Adverse Effect: 
  
 (a) During the five-year period prior to the date on which this representation is made or deemed made: (i) no Termination Event has
occurred, and, to the best knowledge of the Credit Parties, no event or condition has occurred or exists as a result of which any Termination Event could reasonably be expected to occur, with respect to any Plan; (ii) no “accumulated funding
deficiency,” as such term is defined in Section 302 of ERISA and Section 412 of the Code, whether 

  

 51 

 
or not waived, has occurred with respect to any Plan; (iii) each Plan has been maintained, operated, and funded in compliance with its own terms and in
material compliance with the provisions of ERISA, the Code, and any other applicable federal or state laws; and (iv) no lien in favor or the PBGC or a Plan has arisen or is reasonably likely to arise on account of any Plan. 
  
 (b) The actuarial present value of all “benefit
liabilities” under each Single Employer Plan (determined within the meaning of Section 401(a)(2) of the Code, utilizing the actuarial assumptions used to fund such Plans), whether or not vested, did not, as of the last annual valuation date
prior to the date on which this representation is made or deemed made, exceed the current value of the assets of such Plan allocable to such accrued liabilities. 
  
 (c) Neither the Borrower, nor any of its Subsidiaries nor any ERISA Affiliate has incurred, or, to the best
knowledge of the Credit Parties, are reasonably expected to incur, any withdrawal liability under ERISA to any Multiemployer Plan or Multiple Employer Plan. Neither the Borrower, nor any of its Subsidiaries nor any ERISA Affiliate has received any
notification that any Multiemployer Plan is in reorganization (within the meaning of Section 4241 of ERISA), is insolvent (within the meaning of Section 4245 of ERISA), or has been terminated (within the meaning of Title IV of ERISA), and no
Multiemployer Plan is, to the best knowledge of the Credit Parties, reasonably expected to be in reorganization, insolvent, or terminated. 
  
 (d) No prohibited transaction (within the meaning of Section 406 of ERISA or Section 4975 of the Code) or breach of fiduciary
responsibility has occurred with respect to a Plan which has subjected or may subject the Borrower or any of its Subsidiaries or any ERISA Affiliate to any liability under Sections 406, 409, 502(i), or 502(l) of ERISA or Section 4975 of the Code, or
under any agreement or other instrument pursuant to which the Borrower or any of its Subsidiaries or any ERISA Affiliate has agreed or is required to indemnify any person against any such liability. 
  
 (e) The present value (determined using actuarial and other
assumptions which are reasonable with respect to the benefits provided and the employees participating) of the liability of the Borrower and its Subsidiaries and each ERISA Affiliate for post-retirement welfare benefits to be provided to their
current and former employees under Plans which are welfare benefit plans (as defined in Section 3(1) of ERISA), net of all assets under all such Plans allocable to such benefits, are reflected on the Financial Statements in accordance with FAS 106.

  
 (f) Each Plan which is a welfare plan (as
defined in Section 3(1) of ERISA) to which Sections 601-609 of ERISA and Section 4980B of the Code apply has been administered in compliance in all material respects with such sections. 
  

	 	6.15	Subsidiaries. 

  
 Set forth on Schedule 6.15 is a complete and accurate list of all Subsidiaries of each Credit Party. Information on Schedule 6.15 includes
jurisdiction of organization, the number of shares of each class of Capital Stock outstanding, the number and percentage of outstanding shares of each class owned (directly or indirectly) by such Credit Party; and the number and effect, if
exercised, of all outstanding options, warrants, rights of conversion or purchase and all other similar rights with respect thereto. The outstanding Capital Stock of all such Subsidiaries is validly issued, fully paid and non-assessable and is owned
by each such Credit Party, directly or indirectly, free and clear of all Liens (other than those arising under or contemplated in connection with the Credit Documents). Other than as set forth in Schedule 6.15, neither 

  

 52 

 
any Credit Party nor any Subsidiary thereof has outstanding any securities convertible into or exchangeable for its Capital Stock nor does any such Person
have outstanding any rights to subscribe for or to purchase or any options for the purchase of, or any agreements providing for the issuance (contingent or otherwise) of, or any calls, commitments or claims of any character relating to its Capital
Stock. Schedule 6.15 may be updated from time to time by the Borrower by giving written notice thereof to the Agent. 
  

	 	6.16	Use of Proceeds; Margin Stock. 

  
 The proceeds of the Loans hereunder will be used solely for the purposes specified in Section 7.10. None of the proceeds of the Loans will be used for the
purpose of purchasing or carrying any “margin stock” as defined in Regulation U or Regulation X, or for the purpose of reducing or retiring any Indebtedness which was originally incurred to purchase or carry “margin stock” or any
“margin security” or for any other purpose which might constitute this transaction a “purpose credit” within the meaning of Regulation U, Regulation X or Regulation T. None of the Credit Parties owns any “margin stock”.

  

	 	6.17	Government Regulation. 

  
 No Credit Party is subject to regulation under the Public Utility Holding Company Act of 1935, the Federal Power Act, the Investment Company Act of 1940
or the Interstate Commerce Act, each as amended. In addition, no Credit Party is (a) an “investment company” registered or required to be registered under the Investment Company Act of 1940, as amended, or controlled by such a company, or
(b) a “holding company,” or a “Subsidiary company” of a “holding company,” or an “affiliate” of a “holding company” or of a “Subsidiary” or a “holding company,” within the meaning
of the Public Utility Holding Company Act of 1935, as amended. 
  

	 	6.18	Environmental Matters. 

  
 (a) Except as set forth on Schedule 6.18. 
  

(i) each of the Real Properties and all operations at the Real Properties are in compliance with all applicable Environmental Laws, and
there is no violation of any Environmental Law with respect to the Real Properties or the businesses operated by the Borrower or any of its Subsidiaries (the “Businesses”), and there are no conditions relating to the Businesses or
Real Properties that could give rise to liability under any applicable Environmental Laws. 
  
 (ii) (A) To the best of the Credit Parties’ knowledge, there has been no release of Hazardous Materials on any of the Real Properties
that constitutes a violation of Environmental Laws, and (B) all Hazardous Materials located on any of the Real Properties are stored in compliance with Environmental Laws. 
  
 (iii) Neither the Borrower nor any of its Subsidiaries has received any written or oral notice of, or
inquiry from any Governmental Authority regarding, any violation, alleged violation, non-compliance, liability or potential liability regarding Hazardous Materials or compliance with Environmental Laws with regard to any of the Real Properties or
the Businesses, nor does the Borrower or any of its Subsidiaries have knowledge or reason to believe that any such notice is being threatened. 
  

 53 

 (iv) Hazardous Materials have not been transported or disposed of from the Real
Properties, or generated, treated, stored or disposed of at, on or under any of the Real Properties or any other location, in each case by, or on behalf or with the permission of, the Borrower or any of its Subsidiaries in a manner that would
reasonably be expected to give rise to liability under any applicable Environmental Law. 
  
 (v) No judicial proceeding or governmental or administrative action is pending or, to the knowledge of the Borrower or any of its
Subsidiaries, threatened, under any Environmental Law to which the Borrower or any of its Subsidiaries is or will be named as a party, nor are there any consent decrees or other decrees, consent orders, administrative orders or other orders, or
other administrative or judicial requirements outstanding under any Environmental Law with respect to the Borrower or any of its Subsidiaries, the Real Properties or the Businesses. 
  
 (vi) There has been no release or threat of release of Hazardous Materials at or from the Real Properties or
arising from or related to the operations (including, without limitation, disposal) of the Borrower or any of its Subsidiaries in connection with the Real Properties or otherwise in connection with the Businesses. 
  
 (vii) Neither the Borrower nor any of its Subsidiaries has
assumed any liability of any Person (other than another Credit Party) under any Environmental Law. 
  
 (b) The Borrower has adopted procedures that are designed to (i) ensure that each Credit Party and their Subsidiaries, any of their
operations and each of the properties owned or leased by each Credit Party and their Subsidiaries remains in compliance with applicable Environmental Laws and (ii) minimize any liabilities or potential liabilities that each Credit Party and their
Subsidiaries, any of their operations and each of the properties owned or leased by each Credit Party and their Subsidiaries may have under applicable Environmental Laws. 
  

	 	6.19	Intellectual Property. 

  
 The Borrower and each of its Subsidiaries owns, or has the legal right to use, all trademarks, tradenames, copyrights, technology, know-how and processes
(the “Intellectual Property”) necessary for each of them to conduct its business as currently conducted except for those the failure to own or have such legal right to use would not have or be reasonably expected to have a Material
Adverse Effect. Set forth on Schedule 6.19 is a list of all Intellectual Property owned by the Borrower and its Subsidiaries or that the Borrower or one of its Subsidiaries has the right to use as of the Closing Date (which list shall
identify the Person that owns or has the right to use each such item of Intellectual Property), in each case that is registered in the United States or Canada. Except as provided on Schedule 6.19, no claim has been asserted and is pending by
any Person challenging or questioning the use of any such Intellectual Property or the validity or effectiveness of any such Intellectual Property, nor does any Credit Party know of any such claim, and to the Credit Parties’ knowledge the use
of such Intellectual Property by the Borrower or any of its Subsidiaries does not infringe on the rights of any Person, except for such claims and infringements that in the aggregate, would not have or be reasonably expected to have a Material
Adverse Effect. 
  

 54 

	 	6.20	Solvency. 

  
 Each Credit Party is and, after consummation of the transactions contemplated by this Credit Agreement, will be Solvent. 
  

	 	6.21	Investments. 

  
 All Investments of the Borrower and each of its Subsidiaries are either Permitted Investments or otherwise permitted by the terms of this Credit
Agreement. 
  

	 	6.22	No Financing of Corporate Takeovers. 

  
 No proceeds of the Loans hereunder have been or will be used to acquire, directly or indirectly, any security in any transaction which is subject to
Sections 13 or 14 of the Securities Exchange Act of 1934, as amended (including, without limitation, Sections 13(d) and 14(d) thereof) or to refinance any Indebtedness used to acquire any such securities. 
  

	 	6.23	Jurisdiction of Organization, Etc. 

  
 Set forth on Schedule 6.23 is the exact legal name, the jurisdiction of organization, federal tax identification number and chief executive office
and principal place of business of each Credit Party. Schedule 6.23 may be updated from time to time by the Borrower by written notice to the Agent. 
  

	 	6.24	Disclosure. 

  
 Neither this Credit Agreement nor any financial statements delivered to the Lenders nor any other document, certificate or statement furnished to the
Lenders by or on behalf of any Credit Party in connection with the transactions contemplated hereby contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained therein or
herein not misleading. 
  

	 	6.25	Licenses, etc. 

  
 The Borrower and each of its Subsidiaries has obtained and holds in full force and effect, all franchises, licenses, permits, certificates,
authorizations, qualifications, accreditations, easements, rights of way and other rights, consents and approvals which are necessary for the operation of their respective businesses as presently conducted. 
  

	 	6.26	No Burdensome Restrictions. 

  
 Neither the Borrower nor any Subsidiary of the Borrower is a party to any agreement or instrument or subject to any other obligation or any charter or
corporate restriction or any provision of any applicable law, rule or regulation which, individually or in the aggregate, would have or be reasonably expected to have a Material Adverse Effect. 
  

 55 

	 	6.27	Brokers’ Fees. 

  
 No Credit Party has any obligation to any Person in respect of any finder’s, broker’s, investment banking or other similar fee in connection
with any of the transactions contemplated under the Credit Documents. 
  

	 	6.28	Labor Matters. 

  
 There are no collective bargaining agreements or Multiemployer Plans covering the employees of the Borrower or any Subsidiary of the Borrower and none of
such Persons has suffered any strikes, walkouts, work stoppages or other material labor difficulty within the last five years. 
  

	 	6.29	Collateral Documents. 

  
 The Collateral Documents create valid security interests in, and first Liens on, the Collateral purported to be covered thereby, which security interests
and Liens are and will remain perfected security interests and Liens, prior to all other Liens other than Permitted Liens. Each of the representations and warranties made by the Borrower and its Subsidiaries in the Collateral Documents is true and
correct. 
  

	 	6.30	Subordination. 

  
 The subordination provisions contained in the Subordinated Indenture are enforceable against the Borrower, the Guarantors and the holders of the notes
issued pursuant thereto, and all Credit Party Obligations hereunder and under the other Credit Documents are within the definitions of “Senior Debt” (or any comparable term) and “Designated Senior Indebtedness” (or any comparable
term) included in such subordination provisions. There exists no Designated Senior Debt for purposes of, and as defined in, the Subordinated Indenture (other than the Credit Party Obligations). 
  
 SECTION 7 
  
 AFFIRMATIVE COVENANTS 
  

Each Credit Party hereby covenants and agrees that so long as this Credit Agreement is in effect and until the Loans, together with interest, fees and
other obligations hereunder, have been paid in full, no Letter of Credit is outstanding and the Commitments hereunder shall have terminated: 
  

	 	7.1	Information Covenants. 

  
 The Borrower will furnish, or cause to be furnished, to the Agent: 
  
 (a) Annual Financial Statements. As soon as available, and in any event within 120 days after the
close of each fiscal year of the Borrower, a consolidated and consolidating balance sheet and income statement of the Borrower and its Subsidiaries, as of the end of such fiscal year, together with related consolidated and consolidating statements
of operations and retained earnings and of cash flows for such fiscal year, setting forth in comparative form consolidated figures for the preceding fiscal year, all such financial information described above to be in reasonable form and detail and
audited by independent certified public accountants of recognized national standing reasonably acceptable to the Agent and whose opinion shall be to the effect that such financial statements have been prepared in accordance with GAAP (except for
changes with which such accountants concur) and shall not be limited as to the scope of the audit or qualified in any manner. 
  

 56 

 (b) Quarterly Financial Statements. As soon as available, and in any event within
45 days after the close of each fiscal quarter of the Borrower (other than the fourth fiscal quarter, in which case 120 days after the end thereof) a consolidated balance sheet and income statement of the Borrower and its Subsidiaries, as of the end
of such fiscal quarter, together with related consolidated statements of operations and retained earnings and of cash flows for such fiscal quarter in each case setting forth in comparative form consolidated figures for the corresponding period of
the preceding fiscal year, all such financial information described above to be in reasonable form and detail and reasonably acceptable to the Agent, and accompanied by a certificate of the chief financial officer of the Borrower to the effect that
such quarterly financial statements fairly present in all material respects the financial condition of the Borrower and its Subsidiaries and have been prepared in accordance with GAAP, subject to changes resulting from audit and normal year-end
audit adjustments. 
  
 (c) Officer’s
Certificate. At the time of delivery of the financial statements provided for in Sections 7.1(a) and 7.1(b) above, a certificate of the chief financial or accounting officer of the Borrower substantially in the form of Exhibit 7.1(c), (i)
demonstrating compliance with the financial covenants contained in Section 7.12 by calculation thereof as of the end of each such fiscal period and (ii) stating that no Default or Event of Default exists, or if any Default or Event of Default does
exist, specifying the nature and extent thereof and what action the Borrower proposes to take with respect thereto. 
  
 (d) Annual Business Plan and Budgets. No later than 70 days after the end of each fiscal year of the Borrower, beginning with the
fiscal year ending November 30, 2004, an annual business plan and budget of the Borrower and its Subsidiaries containing, among other things, pro forma financial statements for the next fiscal year. 
  
 (e) Compliance With Certain Provisions of the Credit
Agreement. Within 120 days after the end of each fiscal year of the Borrower, the Borrower shall deliver a certificate, containing information regarding the amount of any Asset Dispositions that were made during the prior fiscal year.

  
 (f) Accountant’s Certificate.
Within the period for delivery of the annual financial statements provided in Section 7.1(a), a certificate of the accountants conducting the annual audit stating that they have reviewed this Credit Agreement and stating further whether, in the
course of their audit, they have become aware of any Default or Event of Default and, if any such Default or Event of Default exists, specifying the nature and extent thereof. 
  
 (g) Auditor’s Reports. Promptly upon receipt thereof, a copy of any “management
letter” submitted by independent accountants to the Borrower or any of its Subsidiaries in connection with any annual, interim or special audit of the books of the Borrower or any of its Subsidiaries. 
  
 (h) Reports. Promptly upon transmission or receipt
thereof, (a) copies of any filings and registrations with, and reports to or from, the Securities and Exchange Commission, or any successor agency, and copies of all financial statements, proxy statements, notices and reports as the Borrower or any
of its Subsidiaries shall send to its shareholders generally or to a holder of any Indebtedness owed by the Borrower or any of its Subsidiaries in its capacity as such a holder and 

  

 57 

 
(b) upon the written request of the Agent, all reports and written information to and from the United States Environmental Protection Agency, or any state or
local agency responsible for environmental matters, the United States Occupational Health and Safety Administration, or any state or local agency responsible for health and safety matters, or any successor agencies or authorities concerning
environmental, health or safety matters. 
  
 (i)
Notices. Upon a Credit Party obtaining knowledge thereof, such Credit Party will give written notice to the Agent immediately of (a) the occurrence of an event or condition consisting of a Default or Event of Default, specifying the nature
and existence thereof and what action the Borrower proposes to take with respect thereto, and (b) the occurrence of any of the following with respect to the Borrower or any of its Subsidiaries (i) the pendency or commencement of any litigation,
arbitral or governmental proceeding against the Borrower or any of its Subsidiaries which if adversely determined would have or would be reasonably expected to have a Material Adverse Effect, or (ii) the institution of any proceedings against the
Borrower or any of its Subsidiaries with respect to, or the receipt of notice by such Person of potential liability or responsibility for violation, or alleged violation of any federal, state or local law, rule or regulation, including but not
limited to, Environmental Laws, the violation of which would have or would be reasonably expected to have a Material Adverse Effect. 
  
 (j) ERISA. Upon any of the Credit Parties or any ERISA Affiliate obtaining knowledge thereof, Borrower will give written notice to
the Agent promptly (and in any event within five Business Days) of: (i) any event or condition, including, but not limited to, any Reportable Event, that constitutes, or might reasonably lead to, a Termination Event; (ii) with respect to any
Multiemployer Plan, the receipt of notice as prescribed in ERISA or otherwise of any withdrawal liability assessed against the Borrower or any of its ERISA Affiliates, or of a determination that any Multiemployer Plan is in reorganization or
insolvent (both within the meaning of Title IV of ERISA); (iii) the failure to make full payment on or before the due date (including extensions) thereof of all amounts which the Borrower or any of its Subsidiaries or ERISA Affiliate is required to
contribute to each Plan pursuant to its terms and as required to meet the minimum funding standard set forth in ERISA and the Code with respect thereto; or (iv) any change in the funding status of any Plan that could have a Material Adverse Effect;
together, with a description of any such event or condition or a copy of any such notice and a statement by the principal financial officer of the Borrower briefly setting forth the details regarding such event, condition, or notice, and the action,
if any, which has been or is being taken or is proposed to be taken by the Credit Parties with respect thereto. Promptly upon request, the Borrower shall furnish the Agent with such additional information concerning any Plan as may be reasonably
requested, including, but not limited to, copies of each annual report/return (Form 5500 series), as well as all schedules and attachments thereto required to filed with the Department of Labor and/or the Internal Revenue Service pursuant to ERISA
and the Code, respectively, for each “plan year” (within the meaning of Section 3(39) of ERISA). 
  
 (k) Environmental. The Borrower and each of its Subsidiaries will conduct and complete all investigations, studies, sampling, and
testing and all remedial, removal, and other actions necessary to address all Hazardous Materials on, from, or affecting any real property owned or leased by the Borrower or its Subsidiaries to the extent necessary to be in compliance with all
Environmental Laws and all other applicable federal, state, and local laws, regulations, rules and policies and with the orders and directives of all Governmental Authorities exercising jurisdiction 

  

 58 

 
over such real property to the extent any failure would have or be reasonably expected to have a Material Adverse Effect. 
  
 (l) Annual and Quarterly Reports. (i) At the time of
delivery of the financial statements provided for in Section 7.1(a) above, a company-prepared report containing information as to brand sales and advertising cost analysis and variable contribution margins for the fiscal year of the Borrower most
recently ending and (ii) at the time of delivery of the financial statements provided for in Section 7.1(b) above, a company-prepared report containing information with respect to the status of on-going litigation of the Borrower and its
Subsidiaries, including, without limitation, judgments and settlements during such fiscal quarter. 
  
 (m) Intellectual Property. Concurrently with the delivery of the financial statements referred to in Sections 7.1(a) and (b), a
certificate of a Responsible Officer of the Borrower listing (A) all applications, if any, for Copyrights, Patents or Trademarks (each such term as defined in the Security Agreement) made since the date of the prior certificate (or, in the case of
the first such certificate, the Closing Date), (B) all issuances of registrations or letters on existing applications for Copyrights, Patents and Trademarks (each such term as defined in the Security Agreement) received since the date of the prior
certificate (or, in the case of the first such certificate, the Closing Date), and (C) all Trademark Licenses, Copyright Licenses and Patent Licenses (each such term as defined in the Security Agreement) entered into since the date of the prior
certificate (or, in the case of the first such certificate, the Closing Date). 
  
 (n) Other Information. With reasonable promptness upon any such request, such other information regarding the business, properties
or financial condition of the Borrower and its Subsidiaries as the Agent or the Required Lenders may reasonably request. 
  

	 	7.2	Preservation of Existence and Franchises. 

  
 Except as permitted by Section 8.4, each of the Credit Parties will, and will cause each of its Subsidiaries to, do all things necessary to preserve and
keep in full force and effect in all material respects its existence, rights, franchises and authority. 
  

	 	7.3	Books and Records. 

  
 Each of the Credit Parties will, and will cause each of its Subsidiaries to, keep complete and accurate books and records of its transactions in
accordance with good accounting practices on the basis of GAAP (including the establishment and maintenance of appropriate reserves). 
  

	 	7.4	Compliance with Law. 

  
 Each of the Credit Parties will, and will cause each of its Subsidiaries to, comply with all laws, rules, regulations and orders, and all applicable
restrictions imposed by all Governmental Authorities, applicable to it and its property (including, without limitation, Environmental Laws) if noncompliance with any such law, rule, regulation, order or restriction would have or reasonably be
expected to have a Material Adverse Effect. 
  

 59 

	 	7.5	Payment of Taxes and Other Indebtedness. 

  
 Each of the Credit Parties will, and will cause its Subsidiaries to, pay and discharge (a) all taxes, assessments and governmental charges or levies
imposed upon it, or upon its income or profits, or upon any of its properties, before they shall become delinquent, (b) all lawful claims (including claims for labor, materials and supplies) which, if unpaid, might give rise to a Lien upon any of
its properties, and (c) except as prohibited hereunder, all of its other Indebtedness as it shall become due; provided, however, that a Credit Party or its Subsidiary shall not be required to pay any such tax, assessment, charge, levy, claim or
Indebtedness which is being contested in good faith by appropriate proceedings and as to which adequate reserves therefor have been established in accordance with GAAP, unless the failure to make any such payment (i) would give rise to an immediate
right to foreclose on a Lien securing such amounts or (ii) would have a Material Adverse Effect. 
  

	 	7.6	Insurance. 

  
 Each of the Credit Parties will, and will cause its Subsidiaries to maintain in full force and effect insurance (including worker’s compensation
insurance, liability insurance, casualty insurance and business interruption insurance) with financially sound and reputable insurance companies not Affiliates of the Borrower or any Subsidiary, in such amounts, with such deductibles and covering
such risks as are customarily carried by companies engaged in similar businesses and owning similar properties in localities where the Borrower or the applicable Subsidiary operates; provided that the Borrower and its Subsidiaries may reduce the
amount of insurance required to be maintained above to the extent the Borrower and its Subsidiaries establish a self-insurance program providing insurance coverage in lieu of such insurance. All liability policies shall have each Lender as an
additional insured and all casualty policies shall have the Agent, on behalf of the Lenders, as loss payee. 
  
 In the event there occurs any material loss, damage to or destruction of the Collateral of any Credit Party or any part thereof, such Credit Party shall
promptly give written notice thereof to the Agent generally describing the nature and extent of such damage or destruction. Subsequent to any loss, damage to or destruction of the Collateral of any Credit Party or any part thereof, such Credit
Party, whether or not the insurance proceeds, if any, received on account of such damage or destruction shall be sufficient for that purpose, at such Credit Party’s cost and expense, will promptly repair or replace the Collateral of such Credit
Party so lost, damaged or destroyed; provided, however, that such Credit Party shall not be obligated to repair or replace any Collateral so lost, damaged or destroyed to the extent the failure to make such repair or replacement (a) is desirable to
the proper conduct of the business of such Credit Party in the ordinary course and otherwise is in the best interest of such Credit Party and (b) would not materially impair the rights and benefits of the Agent or the Lenders under this Credit
Agreement or any other Credit Document. In the event a Credit Party shall receive any insurance proceeds, as a result of any loss, damage or destruction, in a net amount in excess of $500,000, such Credit Party will immediately pay over such
proceeds to the Agent as cash collateral for the Credit Party Obligations. The Agent agrees to release such insurance proceeds to such Credit Party for replacement or restoration of the portion of the Collateral of such Credit Party lost, damaged or
destroyed if, (A) the Agent has received written application for such release from such Credit Party together with evidence reasonably satisfactory to it that the Collateral lost, damaged or destroyed has been or will be replaced or restored to its
condition (or by Collateral having a value at least equal to the condition of the asset subject to the loss, damage or destruction) immediately prior to the loss, destruction or other event giving rise to the payment of such insurance proceeds and
(B) on the date of such release no Default or Event of Default exists. All insurance proceeds shall be subject to the security interest of the Lenders under the Collateral Documents. 
  

 60 

 The present insurance coverage of the Borrower and its Subsidiaries is outlined as to carrier, policy
number, expiration date, type and amount on Schedule 7.6, as Schedule 7.6 may be amended from time to time by written notice to the Agent. 
  

	 	7.7	Maintenance of Property. 

  
 Each of the Credit Parties will, and will cause its Subsidiaries to, maintain and preserve its properties and equipment in good repair, working order and
condition, normal wear and tear excepted, and will make, or cause to be made, in such properties and equipment from time to time all repairs, renewals, replacements, extensions, additions, betterments and improvements thereto as may be needed or
proper, to the extent and in the manner customary for companies in similar businesses. 
  

	 	7.8	Performance of Obligations. 

  
 Each of the Credit Parties will, and will cause its Subsidiaries to, perform in all material respects all of its obligations under the terms of all
material agreements, indentures, mortgages, security agreements or other debt instruments to which it is a party or by which it is bound. 
  

	 	7.9	Collateral. 

  
 If, subsequent to the Closing Date, a Credit Party shall acquire any intellectual property, securities instruments, chattel paper or other personal
property required to be delivered to the Agent as Collateral hereunder or under any of the Collateral Documents, the Borrower shall immediately notify the Agent of same. Each Credit Party shall take such action (including, but not limited to, the
actions set forth in Section 5.1), as requested by the Agent and at its own expense, to ensure that the Lenders have a first priority perfected Lien in all personal property of the Credit Parties (whether now owned or hereafter acquired), subject
only to Permitted Liens. Each Credit Party shall adhere to the covenants regarding the location of personal property as set forth in the Security Agreement. 
  

	 	7.10	Use of Proceeds. 

  
 The Credit Parties will use the proceeds of the Loans solely (a) to refinance the existing Indebtedness of the Borrower, (b) to provide working capital,
(c) to finance Permitted Acquisitions and (d) for general corporate purposes. 
  

	 	7.11	Audits/Inspections. 

  
 Upon reasonable notice and during normal business hours, each Credit Party will, and will cause its Subsidiaries to, permit representatives appointed by
the Agent or any Lender, including, without limitation, independent accountants, agents, attorneys and appraisers to visit and inspect such Credit Party’s (or its Subsidiary’s) property, including its books and records, its accounts
receivable and inventory, its facilities and its other business assets, and to make photocopies or photographs thereof and to write down and record any information such representative obtains and shall permit the Agent or its representatives to
investigate and verify the accuracy of information provided to the Lenders and to discuss all such matters with the officers, employees and representatives of the Credit Parties and their Subsidiaries. The Credit Parties agree that the Agent, and
its representatives, may conduct an annual audit of the Collateral, at the expense of the Borrower. 
  

 61 

	 	7.12	Financial Covenants. 

  
 (a) Fixed Charge Coverage Ratio. The Fixed Charge Coverage Ratio, as of the end of each fiscal quarter, shall be greater than or
equal to 1.20 to 1.0. 
  
 (b) Leverage
Ratio. The Leverage Ratio, as of the end of each fiscal quarter, shall be less than or equal to 4.25 to 1.0. 
  
 (c) Senior Secured Leverage Ratio. The Senior Secured Leverage Ratio, as of the end of each fiscal quarter, shall be less than or
equal to 1.50 to 1.0. 
  
 (d) Net Worth.
At all times Net Worth shall be no less than $90,000,000 increased on a cumulative basis, commencing with the fiscal quarter ending February 29, 2004, by an amount equal to, (i) as of the last day of each fiscal quarter, 75% of Net Income
(calculated without giving effect to (x) the amount of any write-down of goodwill required under FASB 142 occurring or incurred subsequent to November 30, 2003 in an aggregate amount not to exceed $37,000,000, (y) phenylpropanolamine litigation
costs in an aggregate amount not to exceed $25,000,000 and (z) for the fiscal quarter period ending on February 29, 2004, any non-recurring charges incurred by the Borrower during such period in connection with the refinancing of the Existing
Indenture and the Existing Credit Agreement, including all premiums, fees and legal costs related thereto in an aggregate amount not to exceed $5,500,000 in the case of non-cash charges and $8,000,000 in the case of cash charges) for the fiscal
quarter then ended (without deductions for any losses) plus (ii) 100% of the gross cash proceeds (net of transaction costs and taxes) from any Equity Issuance subsequent to the Closing Date. For purposes of determining compliance with the Net Worth
covenant set forth above, the base number of $90,000,000 set forth above shall be reduced by (i) the amount of any write-down of goodwill required under FASB 142 occurring or incurred subsequent to November 30, 2003 in an aggregate amount not to
exceed $37,000,000 (ii) repurchases of the Borrower’s Capital Stock permitted by Section 8.7 in an aggregate amount not to exceed $50,000,000, (iii) phenylpropanolamine litigation costs in an aggregate amount not to exceed $25,000,000 and (iv)
for the fiscal quarter period ending on February 29, 2004, any non-recurring charges incurred by the Borrower during such period in connection with the refinancing of the Existing Indenture and the Existing Credit Agreement, including all premiums,
fees and legal costs related thereto in an aggregate amount not to exceed $5,500,000 in the case of non-cash charges and $8,000,000 in the case of cash charges. 
  
 (e) Brand Value. As of the end of each fiscal quarter of the Borrower, with respect to the Borrower
and its Subsidiaries on a consolidated basis, the book value of all brands or product lines of the Borrower and its Subsidiaries on a consolidated basis on such date shall be greater than or equal to $210,000,000. 
  

	 	7.13	Additional Credit Parties. 

  
 At the time any Person becomes a direct Subsidiary of a Credit Party or at the time any Person that is not a Guarantor hereunder becomes a guarantor under
the Floating Rate Indenture or the Subordinated Indenture, the Borrower shall so notify the Agent and promptly thereafter (but in any event within 30 days after the date thereof) shall cause such Person to (a) if such Person is a Domestic Subsidiary
or if such Person has become a guarantor under the Floating Rate Indenture or the Subordinated Indenture, execute a 

  

 62 

 
Joinder Agreement in substantially the same form as Exhibit 7.13, (b) cause all of the Capital Stock of such Person (if such Person is a Domestic
Subsidiary) or 65% of the Capital Stock of such Person (if such Person is a Material Foreign Subsidiary) to be delivered to the Agent (together with undated stock powers signed in blank) and pledged to the Agent pursuant to an appropriate pledge
agreement in substantially the form of the Pledge Agreement and otherwise in a form acceptable to the Agent, (c) if such Person is a Domestic Subsidiary, pledge all of its assets to the Lenders pursuant to a security agreement in substantially the
form of the Security Agreement and otherwise in a form acceptable to the Agent, (d) if such Person is a Domestic Subsidiary and has any Subsidiaries, (i) deliver all of the Capital Stock of such Domestic Subsidiaries and 65% of the Capital Stock of
such Material Foreign Subsidiaries (together with undated stock powers signed in blank) to the Agent and (ii) execute a pledge agreement in substantially the form of the Pledge Agreement and otherwise in a form acceptable to the Agent, and (e)
deliver such other documentation as the Agent may reasonably request in connection with the foregoing, including, without limitation, appropriate UCC-1 financing statements, landlord waivers, certified resolutions and other organizational and
authorizing documents of such Person and favorable opinions of counsel to such Person (which shall cover, among other things, the legality, validity, binding effect and enforceability of the documentation referred to above), all in form, content and
scope reasonably satisfactory to the Agent. 
  

	 	7.14	Ownership of Subsidiaries. 

  
 The Borrower shall (a) at all times own (directly or indirectly through other Subsidiaries) 100% of the Capital Stock of its Subsidiaries (except as
necessary to qualify directors where required by applicable law or to satisfy other requirements of applicable law with respect to the ownership of Capital Stock of Foreign Subsidiaries) and (b) sell, transfer or otherwise dispose of any shares of
Capital Stock of any of its Subsidiaries only in transactions otherwise permitted by this Credit Agreement.  
  

	 	7.15	Appraisal Reports. 

  
 (a) To the extent required to comply with FASB 142 or (b) following the occurrence of an Event of Default (if requested by the Agent), the Borrower and
its Subsidiaries shall provide the Agent, at the expense of the Borrower, with asset appraisal reports with respect to the personal property of the Borrower and its Subsidiaries, including without limitation, brand values. 
  

	 	7.16	Post-Closing Matters. 

  
 The Credit Parties agree to use commercially reasonable efforts to obtain landlord waivers with respect to each of their respective leased real properties
(in form and substance reasonably satisfactory to the Agent) within 90 days following the Closing Date. 
  
 SECTION 8 
  
 NEGATIVE COVENANTS 
  
 Each Credit Party
hereby covenants and agrees that so long as this Credit Agreement is in effect and until the Loans, together with interest, fees and other obligations hereunder, have been paid in full, no Letter of Credit is outstanding and the Commitments
hereunder shall have terminated: 
  

 63 

	 	8.1	Indebtedness. 

  
 No Credit Party will, nor will it permit any of its Subsidiaries to, contract, create, incur, assume or permit to exist any Indebtedness, except:

  
 (a) Indebtedness arising under this Credit
Agreement and the other Credit Documents; 
  
 (b)
the Subordinated Debt; 
  
 (c) Indebtedness
existing as of the Closing Date as referenced in Section 6.10 (and renewals, refinancings or extensions thereof on terms and conditions no more favorable, in the aggregate, to such Person than such existing Indebtedness and in a principal amount not
in excess of that outstanding as of the date of such renewal, refinancing or extension); 
  
 (d) Indebtedness owing by one Credit Party to another Credit Party; 
  
 (e) purchase money Indebtedness (including Capital Leases) incurred by the Borrower or any of its
Subsidiaries to finance the purchase of fixed assets; provided that (i) the total of all such Indebtedness for all such Persons taken together shall not exceed an aggregate principal amount of $2,000,000 at any one time outstanding (including any
such Indebtedness referred to in subsection (c) above); (ii) such Indebtedness when incurred shall not exceed the purchase price of the asset(s) financed; and (iii) no such Indebtedness shall be refinanced for a principal amount in excess of the
principal balance outstanding thereon at the time of such refinancing; 
  
 (f) unsecured Indebtedness evidenced by the Floating Rate Indenture or by the guarantees thereof in an aggregate principal amount not to exceed $75,000,000; 
  
 (g) obligations of the Credit Parties in respect of Hedging
Agreements entered into in the ordinary course of business to manage existing or anticipated risks and not for speculative purposes; 
  
 (h) Indebtedness incurred by Foreign Subsidiaries not to exceed $500,000, in the aggregate, at any one time outstanding; 
  
 (i) commercial letters of credit in an aggregate face amount
not to exceed $1,000,000 at any one time outstanding; and 
  
 (j) prior to April 2, 2004, an aggregate principal amount of Indebtedness up to approximately $30,000,000 outstanding under the Existing Indenture.  
  

	 	8.2	Liens. 

  
 No Credit Party will, nor will it permit its Subsidiaries to, contract, create, incur, assume or permit to exist any Lien with respect to any of its
property or assets of any kind (whether real or personal, tangible or intangible), other than any “margin stock” within the meaning of Regulation U, whether now owned or after acquired, except for Permitted Liens. 
  

 64 

	 	8.3	Nature of Business. 

  
 No Credit Party will, nor will it permit its Subsidiaries to, alter the character of its business from that conducted as of the Closing Date or engage in
any business other than the business conducted as of the Closing Date, which with respect to Signal shall be limited to the ownership of trademarks and tradenames for the purpose of licensing such trademarks and tradenames to the Borrower or any
other Credit Party. 
  

	 	8.4	Consolidation and Merger. 

  
 No Credit Party will, nor will it permit its Subsidiaries to, enter into any transaction of merger or consolidation or liquidate, wind up or dissolve
itself (or suffer any liquidation or dissolution); provided that notwithstanding the foregoing provisions of this Section 8.4, the following actions may be taken if (a) the Agent is given prior written notice of such action, and the Credit Parties
execute and deliver such documents, instruments and certificates as the Agent may request in order to maintain the perfection and priority of the Liens on the assets of the Credit Parties and (b) after giving effect thereto no Default or Event of
Default exists: 
  
 (i) any Credit Party may be
merged or consolidated with or into the Borrower, or any Credit Party (other than the Borrower) may be merged or consolidated with or into any other Credit Party; provided that if such transaction shall be between the Borrower and another Credit
Party, the Borrower shall be the continuing or surviving corporation; 
  
 (ii) any Foreign Subsidiary may merge or consolidate with any other Foreign Subsidiary; and 
  
 (iii) any Subsidiary may dissolve, liquidate or wind up its affairs at any time provided that such dissolution, liquidation or winding up,
as applicable, could not have a Material Adverse Effect. 
  

	 	8.5	Sale or Lease of Assets. 

  
 No Credit Party will, nor will it permit any of its Subsidiaries to, convey, sell, lease, transfer or otherwise dispose of, in one transaction or a series
of transactions, all or any part of its business or assets whether now owned or hereafter acquired, including, without limitation, inventory, receivables, real property, leasehold interests, equipment and securities other than (a) any inventory or
other assets sold, leased or disposed of (or simultaneously replaced with like goods) in the ordinary course of business, (b) obsolete, idle or worn-out assets no longer used or useful in its business, (c) the sale, lease or transfer or other
disposal by a Credit Party other than the Borrower of any or all of its assets to the Borrower or to any other Credit Party, (d) the sale, transfer or other disposition of “margin stock” within the meaning of Regulation U, (e) the
non-recourse sale of trade accounts receivable to a Person that is not an Affiliate of the Borrower provided that (i) at the time of the sale (and after giving effect thereto) no Default or Event of Default exists, (ii) as a result of such sale, no
Material Adverse Effect would occur or be reasonably expected to occur, and (iii) the amount of such receivables subject to such sales do not exceed, in the aggregate, $7,000,000 at any time outstanding, (f) other sales of equipment provided
that (i) the sale is for fair market value, (ii) the sale is for cash consideration, (iii) at the time of the sale (and after giving effect thereto) no Default or Event of Default exists, (iv) as a result of such sale, no Material Adverse Effect
would occur or be reasonably expected to occur and (v) such sales do not exceed, in the aggregate, $250,000 during any fiscal year and (g) sales of product lines (or the right to produce a consumer product 

  

 65 

 
or products) provided that (i) the dispositions permitted under this subparagraph (g) shall not exceed $10,000,000 during any fiscal year and, (ii) the
dispositions permitted under this subparagraph (g) during any fiscal year shall be limited to product lines (or the right to produce a consumer product or products) having aggregate sales for the twelve-month period ending on the fiscal quarter
ending immediately preceding the sale in an aggregate amount not exceeding ten percent (10%) of EBITDA for such twelve month period and (iii) the Credit Parties shall have delivered to the Agent a Pro Forma Compliance Certificate demonstrating that
after giving effect to any such disposition on a Pro Forma Basis, the Credit Parties and their Subsidiaries would have been in compliance with all the financial covenants set forth in Section 7.12. 
  

	 	8.6	Advances, Investments and Loans. 

  
 No Credit Party will, nor will it permit any of its Subsidiaries to, make any Investments except for Permitted Investments. 
  

	 	8.7	Restricted Payments. 

  
 No Credit Party will, nor will it permit any of its Subsidiaries to, directly or indirectly, (a) declare or pay any dividends (whether cash or otherwise)
or make any other distribution upon any shares of its Capital Stock of any class or (b) purchase, redeem or otherwise acquire or retire or make any provisions for redemption, acquisition or retirement of any shares of its Capital Stock of any class
or any warrants or options to purchase any such shares (any such declaration, payment, distribution, purchase, redemption or other acquisition, a “Restricted Payment”); provided, however, (i) the Subsidiaries of the
Borrower may pay dividends to the Borrower and (ii) the Borrower may purchase, redeem, acquire or retire shares of its Capital Stock of any class or any warrants or options to purchase any such shares of its Capital Stock in an amount not to exceed
$50,000,000 in the aggregate during the term of this Credit Agreement so long as (A) after giving effect thereto no Default or Event of Default exists and (B) the Borrower shall have provided the Agent a Pro Forma Compliance Certificate
demonstrating that after giving effect to any such transaction on a Pro Forma Basis, the Credit Parties and their Subsidiaries would have been in compliance with all the financial covenants set forth in Section 7.12. 
  

	 	8.8	Transactions with Affiliates. 

  
 Except as set forth on Schedule 8.8, no Credit Party will, nor will it permit its Subsidiaries to, enter into any transaction or series of
transactions, whether or not in the ordinary course of business, with any officer, director, shareholder, Subsidiary or Affiliate other than on terms and conditions substantially as favorable as would be obtainable in a comparable arm’s-length
transaction with a Person other than an officer, director, shareholder, Subsidiary or Affiliate. 
  

	 	8.9	Fiscal Year; Organizational Documents; Floating Rate Indenture. 

  

No Credit Party will, nor will it permit any of its Subsidiaries to, change its fiscal year or materially change its articles or certificate of
incorporation or its bylaws without the prior written consent of the Required Lenders. The Floating Rate Indenture may not be amended or modified in any material manner without the prior written consent of the Required Lenders. 
  

 66 

	 	8.10	Prepayments of Indebtedness. 

  
 No Credit Party will, nor will it permit any of its Subsidiaries to, (a) amend or modify (or permit the amendment or modification of) any of the terms of
any Indebtedness if such amendment or modification would add or change any terms in a manner adverse to the Lenders, including but not limited to, shortening final maturity or average life to maturity of such Indebtedness or requiring any payment to
be made sooner than originally scheduled or increasing the interest rate applicable thereto or change any subordination provision thereof, (b) during the existence of a Default or Event of Default, or if a Default or Event of Default would be caused
as a result thereof make (or give any notice with respect thereto) any voluntary or optional payment or prepayment or redemption or acquisition for value of (including, without limitation, by way of depositing money or securities with the trustee
with respect thereto before due for the purpose of paying when due), refund, refinance or exchange of any other Indebtedness. 
  

	 	8.11	Subordinated Debt. 

  
 Notwithstanding Section 8.10, no Credit Party will (i) make or offer to make any principal payments with respect to the Subordinated Debt, (ii) redeem or
offer to redeem any of the Subordinated Debt or (iii) deposit any funds intended to discharge or defease any or all of the Subordinated Debt; provided, however, the Borrower may redeem or repurchase the Subordinated Debt in an
aggregate amount not to exceed $5,000,000 (such amount to include any accrued interest, premiums or penalties associated therewith) during any fiscal year provided the Credit Parties shall have delivered to the Agent a Pro Forma Compliance
Certificate demonstrating that after giving effect to such repurchase or redemption on a Pro Forma Basis, the Credit Parties and their Subsidiaries would have been in compliance with all the financial covenants set forth in Section 7.12. The
Subordinated Debt or the Subordinated Indenture may not be amended or modified in any material manner without the prior written consent of the Required Lenders, it being specifically understood and agreed that no amendment to Article Four or Article
Twelve of the Subordinated Indenture shall be made without the prior written consent of the Required Lenders. 
  

	 	8.12	Limitations. 

  
 No Credit Party will, nor will it permit any of its Subsidiaries to, directly or indirectly, create or otherwise cause, incur, assume, suffer or permit to
exist or become effective any consensual encumbrance or restriction of any kind on the ability of any such Person to (a) pay dividends or make any other distribution on any of such Person’s Capital Stock, (b) pay any Indebtedness owed to the
Borrower or any other Credit Party, (c) make loans or advances to any other Credit Party or (d) transfer any of its property to any other Credit Party, except for encumbrances or restrictions existing under or by reason of (i) customary
non-assignment provisions in any lease governing a leasehold interest, (ii) this Credit Agreement and the other Credit Documents, (iii) the Floating Rate Indenture and (iv) the Subordinated Indenture. 
  

	 	8.13	Sale Leasebacks. 

  
 No Credit Party will, nor will it permit any of its Subsidiaries to, directly or indirectly become or remain liable as lessee or as guarantor or other
surety with respect to any lease, of any property (whether real or personal or mixed), whether now owned or hereafter acquired, (a) which such Credit Party or Subsidiary has sold or transferred or is to sell or transfer to any other Person other
than a Credit Party or (b) which such Credit Party or Subsidiary intends to use for substantially the same purpose as any other property which has been sold or is to be sold or transferred by such Credit Party or Subsidiary to any Person in
connection with such lease. 
  

 67 

	 	8.14	Negative Pledges. 

  
 Other than as set forth in Section 4.12 of the Floating Rate Indenture and Section 4.12 of the Subordinated Indenture, none of the Credit Parties will,
nor will it permit any of its Subsidiaries to, enter into, assume or become subject to any agreement prohibiting or otherwise restricting the creation or assumption of any Lien upon its properties or assets, whether now owned or hereafter acquired,
or requiring the grant of any security for such obligation if security is given for some other obligation. 
  

	 	8.15	Capital Expenditures. 

  
 The Credit Parties and their Subsidiaries will not make Capital Expenditures, in any fiscal year, that would exceed $7,500,000 in the aggregate.

  

	 	8.16	Operating Leases. 

  
 Neither the Borrower nor any of its Subsidiaries shall create, incur, assume or permit to exist obligations under Operating Leases which require aggregate
annual payments in excess of $4,000,000. 
  
 SECTION 9

  
 EVENTS OF DEFAULT 
  

	 	9.1	Events of Default. 

  
 An Event of Default shall exist upon the occurrence of any of the following specified events (each an “Event of Default”): 
  
 (a) Payment. Any Credit Party shall: 
  
 (i) default in the payment when due of any principal of any
of the Loans or of any reimbursement obligations arising from drawings under Letters of Credit; or 
  
 (ii) default, and such default shall continue for three or more days, in the payment when due of any interest on the Loans or on any
reimbursement obligations arising from drawings under Letters of Credit or of any fees or other amounts owing hereunder, under any of the other Credit Documents or in connection herewith. 
  
 (b) Representations. Any representation, warranty or
statement made or deemed to be made by any Credit Party herein, in any of the other Credit Documents, or in any statement or certificate delivered or required to be delivered pursuant hereto or thereto shall prove untrue in any material respect on
the date as of which it was made or deemed to have been made. 
  

 68 

 (c) Covenants. Any Credit Party shall: 
  
 (i) default in the due performance or observance of any
term, covenant or agreement contained in Sections 7.2, 7.4, 7.5, 7.6, 7.9, 7.10, 7.12, 7.13, 7.14, 7.15 or 7.16 or Section 8; or 
  
 (ii) default in the due performance or observance by it of any term, covenant or agreement contained in Section 7.1 and such default shall
continue unremedied for a period of five Business Days after the earlier of an officer of a Credit Party becoming aware of such default or notice thereof given by the Agent; or 
  
 (iii) default in the due performance or observance by it of any term, covenant or agreement (other than
those referred to in subsections (a), (b) or (c)(i) or (ii) of this Section 9.1) contained in this Credit Agreement and such default shall continue unremedied for a period of at least 30 days after the earlier of an officer of a Credit Party
becoming aware of such default or notice thereof given by the Agent. 
  
 (d) Other Credit Documents. (i) Any Credit Party shall default in the due performance or observance of any term, covenant or agreement in any of the other Credit Documents and such default shall continue
unremedied for a period of at least 30 days after the earlier of an officer of a Credit Party becoming aware of such default or notice thereof given by the Agent, or (ii) any Credit Document shall fail to be in full force and effect or to give the
Agent and/or the Lenders the security interests, liens, rights, powers and privileges purported to be created thereby. 
  
 (e) Guaranties. The guaranty given by the Credit Parties hereunder or by any Additional Credit Party hereafter or any provision
thereof shall cease to be in full force and effect, or any guarantor thereunder or any Person acting by or on behalf of such guarantor shall deny or disaffirm such Guarantor’s obligations under such guaranty. 
  
 (f) Bankruptcy, etc. The occurrence of any of the
following with respect to the Borrower or any of its Subsidiaries (i) a court or governmental agency having jurisdiction in the premises shall enter a decree or order for relief in respect of the Borrower or any of its Subsidiaries in an involuntary
case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or appoint a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of any of the Borrower or any of its Subsidiaries or
for any substantial part of its property or ordering the winding up or liquidation of its affairs; or (ii) an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect is commenced against the
Borrower or any of its Subsidiaries and such petition remains unstayed and in effect for a period of 60 consecutive days; or (iii) the Borrower or any of its Subsidiaries shall commence a voluntary case under any applicable bankruptcy, insolvency or
other similar law now or hereafter in effect, or consent to the entry of an order for relief in an involuntary case under any such law, or consent to the appointment or taking possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official of such Person or any substantial part of its property or make any general assignment for the benefit of creditors; or (iv) the Borrower or any of its Subsidiaries shall admit in writing its inability to pay its
debts generally as they become due or any action shall be taken by such Person in furtherance of any of the aforesaid purposes. 
  

 69 

 (g) Defaults under Other Agreements. With respect to any Indebtedness (other than
Indebtedness outstanding under this Credit Agreement) of the Borrower or any of its Subsidiaries in a principal amount in excess of $1,000,000, (i) a Credit Party shall (A) default in any payment (beyond the applicable grace period with respect
thereto, if any) with respect to any such Indebtedness, or (B) default (after giving effect to any applicable grace period) in the observance or performance of any term, covenant or agreement relating to such Indebtedness or contained in any
instrument or agreement evidencing, securing or relating thereto, or any other event or condition shall occur or condition exist, the effect of which default or other event or condition is to cause, or permit, the holder or holders of such
Indebtedness (or trustee or agent on behalf of such holders) to cause (determined without regard to whether any notice or lapse of time is required) any such Indebtedness to become due prior to its stated maturity; or (ii) any such Indebtedness
shall be declared due and payable, or required to be prepaid other than by a regularly scheduled required prepayment, prior to the stated maturity thereof. 
  
 (h) Judgments. (i) One or more final, non-appealable judgments, orders, or decrees shall be entered against any one or more of the
Borrower or any of its Subsidiaries involving a liability of $1,000,000 or more, in the aggregate, (to the extent not paid or covered by self-insurance or insurance provided by a carrier who has acknowledged coverage) and such judgments, orders or
decrees shall continue unsatisfied, undischarged and unstayed for a period of 30 days, or (ii) one or more judgments, orders, decrees, fines, penalties, settlements, indemnities, payments or other liabilities shall be entered against or incurred by
any one or more of the Borrower or any of its Subsidiaries resulting in a liability not covered or reimbursable by insurance or third party indemnity payments, in each case, that are not subject to dispute, of $25,000,000 or more, in the aggregate
in connection with products liability and/or insurance litigation related thereto. 
  
 (i) ERISA. Any of the following events or conditions: (A) any “accumulated funding deficiency,” as such term is defined
in Section 302 of ERISA and Section 412 of the Code, whether or not waived, shall exist with respect to any Plan, or any lien shall arise on the assets of the Borrower or any of their Subsidiaries or any ERISA Affiliate in favor of the PBGC or a
Plan; (B) a Termination Event shall occur with respect to a Single Employer Plan, which is, in the reasonable opinion of the Agent, likely to result in the termination of such Plan for purposes of Title IV of ERISA; (C) a Termination Event shall
occur with respect to a Multiemployer Plan or Multiple Employer Plan, which is, in the reasonable opinion of the Agent, likely to result in (i) the termination of such Plan for purposes of Title IV of ERISA, or (ii) the Borrower or any of its
Subsidiaries or any ERISA Affiliate incurring any liability in connection with a withdrawal from, reorganization of (within the meaning of Section 4241 of ERISA), or insolvency or (within the meaning of Section 4245 of ERISA) such Plan; or (D) any
prohibited transaction (within the meaning of Section 406 of ERISA or Section 4975 of the Code) or breach of fiduciary responsibility shall occur which may subject the Borrower or any of its Subsidiaries or any ERISA Affiliate to any liability under
Sections 406, 409, 502(i), or 502(l) of ERISA or Section 4975 of the Code, or under any agreement or other instrument pursuant to which the Borrower or any of its Subsidiaries or any ERISA Affiliate has agreed or is required to indemnify any person
against any such liability. 
  
 (j)
Ownership. There shall occur a Change of Control. 
  
 (k) Subordinated Debt. (i) Any holder of the Subordinated Debt alleges (or any Governmental Authority with applicable jurisdiction determines) that the Lenders are not holders of 

  

 70 

 
Senior Indebtedness (as defined in the Subordinated Indenture) or (ii) the subordination provisions in the Subordinated Indenture shall, in whole or in part,
terminate, cease to be effective or cease to be legally valid, binding and enforceable against any holder of the Subordinated Debt. 
  
 (l) Business. The Borrower commences to engage in any material respect in a line of business or activity other than the business of
manufacturing and marketing of brand name over-the-counter pharmaceuticals, dietary supplements, functional toiletries and cosmetics. 
  
 (m) Floating Rate Indenture. There shall occur an “Event of Default” (or any comparable term) under, and as defined in,
the Floating Rate Indenture. 
  
 (n)
Subordinated Indenture. There shall occur an “Event of Default” (or any comparable term) under, and as defined in, the Subordinated Indenture, (ii) any of the Credit Party Obligations for any reason shall cease to be
“Designated Senior Indebtedness” (or any comparable term) under, and as defined in, the Subordinated Indenture, (iii) any Indebtedness other than the Credit Party Obligations shall constitute “Designated Senior Indebtedness” (or
any comparable term) under, and as defined in, the Subordinated Indenture or (iv) the subordination provisions of the Subordinated Indenture shall, in whole or in part, terminate, cease to be effective or cease to be legally valid, binding and
enforceable against any holder of the notes issued thereunder. 
  

	 	9.2	Acceleration; Remedies. 

  
 Upon the occurrence of an Event of Default, and at any time thereafter unless and until such Event of Default has been waived in writing by the Required
Lenders (or the Lenders as may be required hereunder), the Agent shall, upon the request and direction of the Required Lenders, by written notice to the Borrower, take any of the following actions: 
  
 (a) Termination of Commitments. Declare the
Commitments terminated whereupon the Commitments shall be immediately terminated. 
  
 (b) Acceleration of Loans. Declare the unpaid principal of and any accrued interest in respect of all Loans, any reimbursement
obligations arising from drawings under Letters of Credit and any and all other Indebtedness or obligations of any and every kind owing by a Credit Party to any of the Lenders hereunder to be due whereupon the same shall be immediately due and
payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Credit Parties. 
  
 (c) Cash Collateral. Direct the Credit Parties to Cash Collateralize (and the Credit Parties agree that upon receipt of such
notice, or upon the occurrence of an Event of Default under Section 9.1(f), they will immediately pay) the LOC Obligations in an amount equal to the maximum aggregate amount which may be drawn under all Letters of Credits then outstanding.

  
 (d) Enforcement of Rights. Enforce any
and all rights and interests created and existing under the Credit Documents, including, without limitation, all rights and remedies existing under the Collateral Documents, all rights and remedies against a Guarantor and all rights of set-off.

  
 Notwithstanding the foregoing, if an Event of Default specified in Section
9.1(f) shall occur, then the Commitments shall automatically terminate and all Loans, all reimbursement obligations arising from 

  

 71 

 
drawings under Letters of Credit, all accrued interest in respect thereof, all accrued and unpaid fees and other Indebtedness or obligations owing to the
Lenders hereunder shall immediately become due and payable without the giving of any notice or other action by the Agent or the Lenders, which notice or other action is expressly waived by the Credit Parties. 
  
 Notwithstanding the fact that enforcement powers reside primarily with the Agent, each Lender
has a separate right of payment and shall be considered a separate “creditor” holding a separate “claim” within the meaning of Section 101(5) of the Bankruptcy Code or any other insolvency statute. 
  
 SECTION 10 
  
 AGENCY PROVISIONS 
  

	 	10.1	Appointment and Authorization of Agent. 

  
 (a) Each Lender hereby irrevocably appoints, designates and authorizes the Agent to take such action on its behalf under the provisions of this Credit
Agreement and each other Credit Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this Credit Agreement or any other Credit Document, together with such powers as are reasonably incidental
thereto. Notwithstanding any provision to the contrary contained elsewhere herein or in any other Credit Document, the Agent shall not have any duties or responsibilities, except those expressly set forth herein, nor shall the Agent have or be
deemed to have any fiduciary relationship with any Lender or participant, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Credit Agreement or any other Credit Document or otherwise
exist against the Agent. Without limiting the generality of the foregoing sentence, the use of the term “agent” herein and in the other Credit Documents with reference to the Agent is not intended to connote any fiduciary or other implied
(or express) obligations arising under agency doctrine of any applicable Requirement of Law. Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent
contracting parties. 
  
 (b) The Issuing Lender shall act on
behalf of the Lenders with respect to any Letters of Credit issued by it and the documents associated therewith, and the Issuing Lender shall have all of the benefits and immunities (i) provided to the Agent in this Section 10 with respect to any
acts taken or omissions suffered by the Issuing Lender in connection with Letters of Credit issued by it or proposed to be issued by it and the applications and agreements for letters of credit pertaining to such Letters of Credit as fully as if the
term “Agent” as used in this Section 10 and in the definition of “Agent-Related Person” included the Issuing Lender with respect to such acts or omissions, and (ii) as additionally provided herein with respect to the Issuing
Lender. 
  

	 	10.2	Delegation of Duties. 

  
 The Agent may execute any of its duties under this Credit Agreement or any other Credit Document by or through agents, employees or attorneys-in-fact and
shall be entitled to advice of counsel and other consultants or experts concerning all matters pertaining to such duties. The Agent shall not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects in the
absence of gross negligence or willful misconduct. 
  

 72 

	 	10.3	Liability of Agent. 

  
 No Agent-Related Person shall (a) be liable for any action taken or omitted to be taken by any of them under or in connection with this Credit Agreement
or any other Credit Document or the transactions contemplated hereby (except for its own gross negligence or willful misconduct in connection with its duties expressly set forth herein), or (b) be responsible in any manner to any Lender or
participant for any recital, statement, representation or warranty made by any Credit Party or any officer thereof, contained herein or in any other Credit Document, or in any certificate, report, statement or other document referred to or provided
for in, or received by the Agent under or in connection with, this Credit Agreement or any other Credit Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Credit Agreement or any other Credit Document, or
for any failure of any Credit Party or any other party to any Credit Document to perform its obligations hereunder or thereunder. No Agent-Related Person shall be under any obligation to any Lender or participant to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, or conditions of, this Credit Agreement or any other Credit Document, or to inspect the properties, books or records of any Credit Party or any Affiliate thereof. 
  

	 	10.4	Reliance by Agent. 

  
 (a) The Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, communication, signature, resolution, representation,
notice, consent, certificate, affidavit, letter, telegram, facsimile, telex or telephone message, electronic mail message, statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by
the proper Person or Persons, and upon advice and statements of legal counsel (including counsel to any Credit Party), independent accountants and other experts selected by the Agent. The Agent shall be fully justified in failing or refusing to take
any action under any Credit Document unless it shall first receive such advice or concurrence of the Required Lenders as it deems appropriate and, if it so requests, it shall first be indemnified to its satisfaction by the Lenders against any and
all liability and expense which may be incurred by it by reason of taking or continuing to take any such action. The Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Credit Agreement or any other Credit
Document in accordance with a request or consent of the Required Lenders (or such greater number of Lenders as may be expressly required hereby in any instance) and such request and any action taken or failure to act pursuant thereto shall be
binding upon all the Lenders. 
  
 (b) For purposes of determining
compliance with the conditions specified in Section 5.1, each Lender that has signed this Credit Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be
consented to or approved by or acceptable or satisfactory to a Lender unless the Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto. 
  

	 	10.5	Notice of Default. 

  
 The Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default, except with respect to defaults in the
payment of principal, interest and fees required to be paid to the Agent for the account of the Lenders, unless the Agent shall have received written notice from a Lender or the Borrower referring to this Credit Agreement, describing such Default or
Event of Default and stating that such notice is a “notice of default.” The Agent will notify the Lenders of its receipt of any such notice. The Agent shall take such action with respect to such Default or Event of 

  

 73 

 
Default as may be directed by the Required Lenders in accordance with Section 9; provided, however, that unless and until the Agent has
received any such direction, the Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable or in the best interest of the Lenders.

  

	 	10.6	Credit Decision; Disclosure of Information by Agent. 

  
 Each Lender acknowledges that no Agent-Related Person has made any representation or warranty to it, and that no act by the Agent hereafter taken,
including any consent to and acceptance of any assignment or review of the affairs of any Credit Party or any Affiliate thereof, shall be deemed to constitute any representation or warranty by any Agent-Related Person to any Lender as to any matter,
including whether Agent-Related Persons have disclosed material information in their possession. Each Lender represents to the Agent that it has, independently and without reliance upon any Agent-Related Person and based on such documents and
information as it has deemed appropriate, made its own appraisal of and investigation into the business, prospects, operations, property, financial and other condition and creditworthiness of the Credit Parties and their respective Subsidiaries, and
all applicable bank or other regulatory Requirements of Law relating to the transactions contemplated hereby, and made its own decision to enter into this Credit Agreement and to extend credit to the Borrower hereunder. Each Lender also represents
that it will, independently and without reliance upon any Agent-Related Person and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not
taking action under this Credit Agreement and the other Credit Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness
of the Borrower and the other Credit Parties. Except for notices, reports and other documents expressly required to be furnished to the Lenders by the Agent herein, the Agent shall not have any duty or responsibility to provide any Lender with any
credit or other information concerning the business, prospects, operations, property, financial and other condition or creditworthiness of any of the Credit Parties or any of their respective Affiliates which may come into the possession of any
Agent-Related Person. 
  

	 	10.7	Indemnification of Agent. 

  
 Whether or not the transactions contemplated hereby are consummated, the Lenders shall indemnify upon demand each Agent-Related Person (to the extent not
reimbursed by or on behalf of any Credit Party and without limiting the obligation of any Credit Party to do so), pro rata, and hold harmless each Agent-Related Person from and against any and all Indemnified Liabilities incurred by it;
provided, however, that no Lender shall be liable for the payment to any Agent-Related Person of any portion of such Indemnified Liabilities to the extent determined in a final, nonappealable judgment by a court of competent
jurisdiction to have resulted from such Agent-Related Person’s own gross negligence or willful misconduct; provided, however, that no action taken in accordance with the directions of the Required Lenders shall be deemed to
constitute gross negligence or willful misconduct for purposes of this Section. Without limitation of the foregoing, each Lender shall reimburse the Agent upon demand for its ratable share of any costs or out-of-pocket expenses (including reasonable
fees and expenses of legal counsel) incurred by the Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal
advice in respect of rights or responsibilities under, this Credit Agreement, any other Credit Document, or any document contemplated by or referred to herein, to the extent that the Agent is not reimbursed for such expenses by or on behalf of the
Borrower. The 

  

 74 

 
undertaking in this Section shall survive termination of the Commitments, the payment of all other Credit Party Obligations and the resignation of the Agent.

  

	 	10.8	Agent in its Individual Capacity. 

  
 Bank of America and its Affiliates may make loans to, issue letters of credit for the account of, accept deposits from, acquire equity interests in and
generally engage in any kind of banking, trust, financial advisory, underwriting or other business with each of the Credit Parties and their respective Affiliates as though Bank of America were not the Agent or the Issuing Lender hereunder and
without notice to or consent of the Lenders. The Lenders acknowledge that, pursuant to such activities, Bank of America or its Affiliates may receive information regarding any Credit Party or its Affiliates (including information that may be subject
to confidentiality obligations in favor of such Credit Party or such Affiliate) and acknowledge that the Agent shall be under no obligation to provide such information to them. With respect to its Loans, Bank of America shall have the same rights
and powers under this Credit Agreement as any other Lender and may exercise such rights and powers as though it were not the Agent or the Issuing Lender, and the terms “Lender” and “Lenders” include Bank of America in its
individual capacity. 
  

	 	10.9	Successor Agent. 

  
 The Agent may resign as Agent upon thirty days’ notice to the Lenders; provided that any such resignation by Bank of America shall also constitute
its resignation as Issuing Lender and Swingline Lender. If the Agent resigns under this Credit Agreement, the Required Lenders shall appoint from among the Lenders a successor administrative agent for the Lenders, which successor administrative
agent shall be consented to by the Borrower at all times other than during the existence of an Event of Default (which consent of the Borrower shall not be unreasonably withheld or delayed). If no successor administrative agent is appointed prior to
the effective date of the resignation of the Agent, the Agent may appoint, after consulting with the Lenders and the Borrower, a successor administrative agent from among the Lenders. Upon the acceptance of its appointment as successor
administrative agent hereunder, the Person acting as such successor administrative agent shall succeed to all the rights, powers and duties of the retiring Agent, Issuing Lender and Swingline Lender and the respective terms “Agent”,
“Issuing Lender” and “Swingline Lender” shall mean such successor administrative agent, Letter of Credit issuer and swing line lender, and the retiring Agent’s appointment, powers and duties in such capacities shall be
terminated without any other further act or deed on its behalf. After any retiring Agent’s resignation hereunder as Agent, the provisions of this Section 10 and Sections 11.5 shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was Agent under this Credit Agreement. If no successor administrative agent has accepted appointment as Agent by the date thirty days following a retiring Agent’s notice of resignation, the retiring Agent’s resignation
shall nevertheless thereupon become effective and the Lenders shall perform all of the duties of the Agent hereunder until such time, if any, as the Required Lenders appoint a successor agent as provided for above. 
  

	 	10.10	Agent May File Proofs of Claim. 

  
 In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to any Credit Party, the Agent (irrespective of whether the principal of any Loan or LOC Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Agent shall have
made 

  

 75 

 
any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise: 
  
 (a) to file and prove a claim for the whole amount of the
principal and interest owing and unpaid in respect of the Loans, LOC Obligations and all other Credit Party Obligations (other than obligations under Hedging Agreements or Treasury Management Agreements to which the Administrative Agent is not a
party) that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of
the Lenders and the Agent and their respective agents and counsel and all other amounts due the Lenders and the Agent under Sections 3.4(b), 3.4(c) and 11.5(a) allowed in such judicial proceeding; and 
  
 (b) to collect and receive any monies or other property
payable or deliverable on any such claims and to distribute the same; 
  
 and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Agent and, in the event that the Agent shall consent to the
making of such payments directly to the Lenders, to pay to the Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Agent and its agents and counsel, and any other amounts due the Agent under Sections
3.4(c) and 11.5(a). 
  
 Nothing contained herein shall be deemed
to authorize the Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Credit Party Obligations or the rights of any Lender or to authorize the
Agent to vote in respect of the claim of any Lender in any such proceeding. 
  

	 	10.11	Collateral and Guaranty Matters. 

  
 The Lenders irrevocably authorize the Agent, at its option and in its discretion, 
  
 (a) to release any Lien on any Collateral granted to or held by the Agent under any Credit Document (i) upon
termination of the Revolving Committed Amount and payment in full of all Credit Party Obligations (other than contingent indemnification obligations) and the expiration or termination of all Letters of Credit, (ii) that is transferred or to be
transferred as part of or in connection with any Asset Disposition permitted hereunder or under any other Credit Document, or (iii) as approved in accordance with Section 11.6; 
  
 (b) to subordinate any Lien on any property granted to or held by the Agent under any Credit Document to the
holder of any Lien on such property that is permitted by clause (i) of the definition of “Permitted Liens”; and 
  
 (c) to release any Guarantor from its obligations under the Section 4 if such Person ceases to be a Subsidiary as a result of a
transaction permitted hereunder. 
  

 76 

 Upon request by the Agent at any time, the Required Lenders will confirm in writing the Agent’s
authority to release or subordinate its interest in particular types or items of property, or to release any Guarantor from its obligations under Section 4, pursuant to this Section 10.11. 
  

	 	10.12	Other Agents; Arrangers and Managers. 

  
 None of the Lenders or other Persons identified on the facing page or signature pages of this Credit Agreement as a “syndication agent,”
“documentation agent,” “co-agent,” “book manager,” “lead manager,” “arranger,” “lead arranger” or “co-arranger” shall have any right, power, obligation, liability, responsibility
or duty under this Credit Agreement other than, in the case of such Lenders, those applicable to all Lenders as such. Without limiting the foregoing, none of the Lenders or other Persons so identified shall have or be deemed to have any fiduciary
relationship with any Lender. Each Lender acknowledges that it has not relied, and will not rely, on any of the Lenders or other Persons so identified in deciding to enter into this Credit Agreement or in taking or not taking action hereunder.

  
 SECTION 11 
  
 MISCELLANEOUS 
  

	 	11.1	Notices. 

  
 (a) General. Unless otherwise expressly provided herein, all notices and other communications provided for hereunder shall be in writing (including
by facsimile transmission). All such written notices shall be mailed certified or registered mail, faxed or delivered to the applicable address, facsimile number or (subject to subsection (c) below) electronic mail address, and all notices and other
communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows: 
  
 (i) if to the Borrower, the Agent, the Issuing Lender or the Swingline Lender, to the address, facsimile number, electronic mail address
or telephone number specified for such Person on Schedule 11.1 or to such other address, facsimile number, electronic mail address or telephone number as shall be designated by such party in a notice to the other parties; and 
  
 (ii) if to any other Lender, to the address, facsimile
number, electronic mail address or telephone number specified in its Administrative Questionnaire or to such other address, facsimile number, electronic mail address or telephone number as shall be designated by such party in a notice to the
Borrower, the Agent, the Issuing Lender and the Swingline Lender. 
  
 Notices sent
by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal
business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient). Notices delivered through electronic communications to the extent provided in subsection (b) below, shall be
effective as provided in such subsection (b). 
  
 (b)
Electronic Communications. Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Agent,
provided that the foregoing shall not apply to 

  

 77 

 
notices to any Lender pursuant to Section 2, Section 3.3 and Section 3.7 if such Lender has notified the Agent that it is incapable of receiving notices
under such Sections by electronic communication. The Agent or the Borrower (on behalf of itself and the other Credit Parties) may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications
pursuant to procedures approved by it, provided that approval of such procedures may be limited to particular notices or communications. 
  
 (c) Effectiveness of Facsimile Documents and Signatures. Credit Documents may be transmitted and/or signed by facsimile. The effectiveness of any
such documents and signatures shall, subject to applicable Requirements of Law, have the same force and effect as manually-signed originals and shall be binding on all Credit Parties, the Agent and the Lenders. The Agent may also require that any
such documents and signatures be confirmed by a manually-signed original thereof; provided, however, that the failure to request or deliver the same shall not limit the effectiveness of any facsimile document or signature. 

 
 (d) Reliance by Agent and Lenders. The Agent and the Lenders shall
be entitled to rely and act upon any notices (including telephonic Notices of Borrowing and Swingline Loan Notices) purportedly given by or on behalf of the Borrower even if (i) such notices were not made in a manner specified herein, were
incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof. The Borrower shall indemnify each Agent-Related Person and
each Lender from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of the Borrower. All telephonic notices to and other communications with the Agent may be
recorded by the Agent, and each of the parties hereto hereby consents to such recording. 
  

	 	11.2	Right of Set-Off. 

  
 In addition to any rights now or hereafter granted under applicable law or otherwise, and not by way of limitation of any such rights, upon the occurrence
of an Event of Default and the commencement of remedies described in Section 9.2, each Lender is authorized at any time and from time to time, without presentment, demand, protest or other notice of any kind (all of which rights being hereby
expressly waived), to set-off and to appropriate and apply any and all deposits (general or special) and any other Indebtedness at any time held or owing by such Lender (including, without limitation branches, agencies or Affiliates of such Lender
wherever located) to or for the credit or the account of any Credit Party against obligations and liabilities of such Credit Party to the Lenders hereunder, under the Notes, the other Credit Documents or otherwise, irrespective of whether the Agent
or the Lenders shall have made any demand hereunder and although such obligations, liabilities or claims, or any of them, may be contingent or unmatured, and any such set-off shall be deemed to have been made immediately upon the occurrence of an
Event of Default even though such charge is made or entered on the books of such Lender subsequent thereto. The Credit Parties hereby agree that any Person purchasing a participation in the Loans and Commitments hereunder pursuant to Section 11.3(d)
or 3.9 may exercise all rights of set-off with respect to its participation interest as fully as if such Person were a Lender hereunder. 
  

	 	11.3	Benefit of Agreement. 

  
 (a) The provisions of this Credit Agreement and the other Credit Documents shall be binding upon and inure to the benefit of the parties hereto and
thereto and their respective successors and assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights 

  

 78 

 
or obligations hereunder or thereunder without the prior written consent of each Lender and no Lender may assign or otherwise transfer any of its rights or
obligations hereunder except (i) to an Eligible Assignee in accordance with the provisions of subsection (b) of this Section, (ii) by way of participation in accordance with the provisions of subsection (d) of this Section or (iii) by way of pledge
or assignment of a security interest subject to the restrictions of subsection (f) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Credit Agreement, expressed or implied,
shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section and, to the extent expressly contemplated
hereby, the Indemnitees) any legal or equitable right, remedy or claim under or by reason of this Credit Agreement. 
  
 (b) Any Lender may at any time assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Credit Agreement and the
other Credit Documents (including all or a portion of its Commitment and the Loans (including for purposes of this subsection (b), participations in LOC Obligations and in Swingline Loans) at the time owing to it); provided that (i) except in
the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and the Loans at the time owing to it or in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund (as defined in
subsection (g) of this Section) with respect to a Lender, the aggregate amount of the Commitment (which for this purpose includes Loans outstanding thereunder) subject to each such assignment, determined as of the date the Assignment and Assumption
with respect to such assignment is delivered to the Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than $5,000,000 unless each of the Agent and, so long as no Event of
Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed); (ii) each partial assignment shall be made as an assignment of a proportionate part of all the assigning
Lender’s Loans and Commitments, and rights and obligations with respect thereto, assigned, except that this clause (ii) shall not apply to rights in respect of Swingline Loans; (iii) any assignment must be approved by the Agent, the Issuing
Lender and the Swingline Lender unless the Person that is the proposed assignee is itself a Lender (whether or not the proposed assignee would otherwise qualify as an Eligible Assignee); and (iv) the parties to each assignment shall execute and
deliver to the Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500. Subject to acceptance and recording thereof by the Agent pursuant to subsection (c) of this Section, from and after the effective date
specified in each Assignment and Assumption, the Eligible Assignee thereunder shall be a party to this Credit Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under
this Credit Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Credit Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under this Credit Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections 3.10, 3.14, 3.15 and 11.5 with
respect to facts and circumstances occurring prior to the effective date of such assignment). Upon request, the Borrower (at its expense) shall execute and deliver a Note to the assignee Lender. Any assignment or transfer by a Lender of rights or
obligations under this Credit Agreement that does not comply with this subsection shall be treated for purposes of this Credit Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with subsection (d) of
this Section. 
  
 (c) The Agent, acting solely for this purpose as
an agent of the Borrower, shall maintain at the Agent’s Office a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts

  

 79 

 
of the Loans and LOC Obligations owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the
Register shall be conclusive, and the Borrower, the Agent and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Credit Agreement, notwithstanding
notice to the contrary. The Register shall be available for inspection by the Borrower at any reasonable time and from time to time upon reasonable prior notice. In addition, at any time that a request for a consent for a material or other
substantive change to the Credit Documents is pending, any Lender wishing to consult with other Lenders in connection therewith may request and receive from the Agent a copy of the Register. 
  
 (d) Any Lender may at any time, without the consent of, or notice to, the
Borrower or the Agent, sell participations to any Person (other than a natural person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights
and/or obligations under this Credit Agreement (including all or a portion of its Commitment and/or the Loans (including such Lender’s participations in LOC Obligations and/or Swingline Loans) owing to it); provided that (i) such
Lender’s obligations under this Credit Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrower, the Agent and the other
Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Credit Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Credit Agreement and to approve any amendment, modification or waiver of any provision of this Credit Agreement; provided that such agreement or instrument may provide that
such Lender will not, without the consent of the Participant, agree to any amendment, waiver or other modification described in clauses (a) through (g) of the first proviso to Section 11.6 that directly affects such Participant. Subject to
subsection (e) of this Section, the Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.10, 3.14 and 3.15 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to subsection
(b) of this Section. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 11.2 as though it were a Lender, provided such Participant agrees to be subject to Section 3.9 as though it were a Lender.

  
 (e) A Participant shall not be entitled to receive any greater
payment under Section 3.10 or 3.14 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s
prior written consent. A Participant that is not a “United States Person” within the meaning of Section 7701(a)(30) of the Code shall not be entitled to the benefits of Section 3.14 unless the Borrower is notified of the participation sold
to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section 3.14 as though it were a Lender. 
  
 (f) Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Credit Agreement (including under its
Note, if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder
or substitute any such pledgee or assignee for such Lender as a party hereto. 
  
 (g) As used herein, the following terms have the following meanings: 
  
 “Eligible Assignee” means (a) a Lender; (b) an Affiliate of a Lender; (c) an Approved Fund; and (d) any other Person
(other than a natural person) approved by (i) the Agent, the 

  

 80 

 
Issuing Lender and the Swingline Lender, and (ii) unless an Event of Default has occurred and is continuing, the Borrower (each such approval not to be
unreasonably withheld or delayed); provided that notwithstanding the foregoing, “Eligible Assignee” shall not include the Borrower or any of the Borrower’s Affiliates or Subsidiaries. 
  
 “Fund” means any Person (other than a
natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business. 
  
 “Approved Fund” means any Fund that is
administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender. 
  
 (h) Notwithstanding anything to the contrary contained herein, if at any time Bank of America assigns all of its Commitment and Loans pursuant to
subsection (b) above, Bank of America may, (i) upon thirty days’ notice to the Borrower and the Lenders, resign as Issuing Lender and/or (ii) upon thirty days’ notice to the Borrower, resign as Swingline Lender. In the event of any such
resignation as Issuing Lender or Swingline Lender, the Borrower shall be entitled to appoint from among the Lenders a successor Issuing Lender or Swingline Lender hereunder; provided, however, that no failure by the Borrower to appoint
any such successor shall affect the resignation of Bank of America as Issuing Lender or Swingline Lender, as the case may be. If Bank of America resigns as Issuing Lender, it shall retain all the rights and obligations of the Issuing Lender
hereunder with respect to all Letters of Credit outstanding as of the effective date of its resignation as Issuing Lender and all LOC Obligations with respect thereto (including the right to require the Lenders to make Base Rate Loans or fund risk
participations in Unreimbursed Amounts pursuant to Section 2.2(c)). If Bank of America resigns as Swingline Lender, it shall retain all the rights of the Swingline Lender provided for hereunder with respect to Swingline Loans made by it and
outstanding as of the effective date of such resignation, including the right to require the Lenders to make Base Rate Loans or fund risk participations in outstanding Swingline Loans pursuant to Section 2.3(c). 
  

	 	11.4	No Waiver; Remedies Cumulative. 

  
 No failure or delay on the part of the Agent or any Lender in exercising any right, power or privilege hereunder or under any other Credit Document and no
course of dealing between the Borrower or any Credit Party and the Agent or any Lender shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power or privilege hereunder or under any other Credit Document preclude
any other or further exercise thereof or the exercise of any other right, power or privilege hereunder or thereunder. The rights and remedies provided herein are cumulative and not exclusive of any rights or remedies which the Agent or any Lender
would otherwise have. No notice to or demand on any Credit Party in any case shall entitle any Credit Party to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the Agent or the Lenders
to any other or further action in any circumstances without notice or demand. 
  

	 	11.5	Payment of Expenses; Indemnification. 

  
 (a) Attorney Costs, Expenses and Taxes. The Borrower agrees (a) to pay or reimburse the Agent for all costs and expenses incurred in connection
with the development, preparation, negotiation and execution of this Credit Agreement and the other Credit Documents and any amendment, waiver, 

  

 81 

 
consent or other modification of the provisions hereof and thereof (whether or not the transactions contemplated hereby or thereby are consummated), and the
consummation and administration of the transactions contemplated hereby and thereby, including all reasonable fees and expenses of legal counsel and costs and expenses in connection with the use of Intralinks, Inc. or other similar information
transmission systems in connection with this Credit Agreement, and (b) to pay or reimburse the Agent and each Lender for all costs and expenses incurred in connection with the enforcement, attempted enforcement, or preservation of any rights or
remedies under this Credit Agreement or the other Credit Documents (including all such costs and expenses incurred during any “workout” or restructuring in respect of the Credit Party Obligations and during any legal proceeding, including
any proceeding under the Bankruptcy Code or any similar laws), including all reasonable fees and expenses of legal counsel. The foregoing costs and expenses shall include all search, filing, recording, title insurance and appraisal charges and fees
and taxes related thereto, and other out-of-pocket expenses incurred by the Agent and the cost of independent public accountants and other outside experts retained by the Agent or any Lender. All amounts due under this Section 11.5(a) shall be
payable within ten Business Days after demand therefor. The agreements in this Section shall survive the termination of the Revolving Committed Amount and repayment of all other Credit Party Obligations. 
  
 (b) Indemnification. Whether or not the transactions contemplated
hereby are consummated, the Borrower agrees to indemnify and hold harmless each Agent-Related Person, each Lender and their respective Affiliates, directors, officers, employees, counsel, trustees, advisors, agents and attorneys-in-fact
(collectively the “Indemnitees”) from and against any and all liabilities, obligations, losses, damages, penalties, claims, demands, actions, judgments, suits, costs, expenses and disbursements (including reasonable fees and
expenses of legal counsel) of any kind or nature whatsoever which may at any time be imposed on, incurred by or asserted against any such Indemnitee in any way relating to or arising out of or in connection with (a) the execution, delivery,
enforcement, performance or administration of any Credit Document or any other agreement, letter or instrument delivered in connection with the transactions contemplated thereby or the consummation of the transactions contemplated thereby, (b) any
Commitment, Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by the Issuing Lender to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand
do not strictly comply with the terms of such Letter of Credit), (c) any actual or alleged presence or release of Hazardous Materials on or from any property currently or formerly owned or operated by the Borrower, any Subsidiary or any other Credit
Party, or any liability under Environmental Laws related in any way to the Borrower, any Subsidiary or any other Credit Party, or (d) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether
based on contract, tort or any other theory (including any investigation of, preparation for, or defense of any pending or threatened claim, investigation, litigation or proceeding) and regardless of whether any Indemnitee is a party thereto (all
the foregoing, collectively, the “Indemnified Liabilities”); provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such liabilities, obligations, losses, damages, penalties, claims,
demands, actions, judgments, suits, costs, expenses or disbursements are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee. No
Indemnitee shall be liable for any damages arising from the use by others of any information or other materials obtained through IntraLinks or other similar information transmission systems in connection with this Credit Agreement, nor shall any
Indemnitee have any liability for any indirect, punitive or consequential damages relating to this Credit Agreement or any other Credit Document or arising out of its activities in connection herewith or therewith (whether before or after the
Closing Date). All amounts due under this Section 11.5(b) shall be payable within ten Business Days after demand therefor. The agreements in this Section shall survive the resignation of the Agent, the 

  

 82 

 
replacement of any Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all the other Credit Party Obligations.

  

	 	11.6	Amendments, Waivers and Consents. 

  
 No amendment or waiver of any provision of this Credit Agreement or any other Credit Document, and no consent to any departure by the Borrower or any
other Credit Party therefrom, shall be effective unless in writing signed by the Required Lenders and the Borrower or the applicable Credit Party, as the case may be, and acknowledged by the Agent, and each such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given; provided, however, that no such amendment, waiver or consent shall: 
  

(a) extend or increase the Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section 9.2) without the
written consent of such Lender (it being understood and agreed that a waiver of any condition precedent set forth in Section 5.2 or of any Default or Event of Default or a mandatory reduction in Commitments is not considered an extension or increase
in Commitments of any Lender); 
  
 (b) postpone
any date fixed by this Credit Agreement or any other Credit Document for any payment of principal (excluding mandatory prepayments), interest, fees or other amounts due to the Lenders (or any of them) or any scheduled or mandatory reduction of the
Revolving Committed Amount hereunder or under any other Credit Document without the written consent of each Lender directly affected thereby; 
  
 (c) reduce the principal of, or the rate of interest specified herein on, any Loan or LOC Borrowing, or (subject to clause (iv) of the
final proviso to this Section 11.6) any fees or other amounts payable hereunder or under any other Credit Document without the written consent of each Lender directly affected thereby; provided, however, that only the consent of the
Required Lenders shall be necessary (i) to amend Section 3.1(b) for the purpose of changing the default rate of interest or to waive any obligation of any Borrower to pay interest or Letter of Credit Fees at the default rate of interest specified in
Section 3.1(b) or (ii) to amend any financial covenant hereunder (or any defined term used therein) even if the effect of such amendment would be to reduce the rate of interest on any Loan or LOC Borrowing or to reduce any fee payable hereunder;

  
 (d) change Section 3.8 or Section 3.9 in a
manner that would alter the pro rata sharing of payments required thereby without the written consent of each Lender directly affected thereby; 
  
 (e) change any provision of this Section or the definition of “Required Lenders” or any other provision hereof specifying the
number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder without the written consent of each Lender directly affected thereby; 
  
 (f) except in connection with an Asset Disposition permitted
under Section 8.5, release all or substantially all of the Collateral without the written consent of each Lender directly affected thereby; 
  
 (g) release the Borrower or, except in connection with a merger or consolidation permitted under Section 8.4 or a Asset Disposition
permitted under Section 8.5, all or substantially 

  

 83 

 
all of the Guarantors, from its or their obligations under the Credit Documents without the written consent of each Lender directly affected thereby;

  
 and, provided further, that (i) no amendment,
waiver or consent shall, unless in writing and signed by the Issuing Lender in addition to the Lenders required above, affect the rights or duties of the Issuing Lender under this Credit Agreement or any Letter of Credit Application relating to any
Letter of Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall, unless in writing and signed by the Swingline Lender in addition to the Lenders required above, affect the rights or duties of the Swingline Lender under this
Credit Agreement; (iii) no amendment, waiver or consent shall, unless in writing and signed by the Agent in addition to the Lenders required above, affect the rights or duties of the Agent under this Credit Agreement or any other Credit Document;
and (iv) the Fee Letter may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto. Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove
any amendment, waiver or consent hereunder, except that the Commitment of such Lender may not be increased or extended without the consent of such Lender. 
  
 Notwithstanding the fact that the consent of all the Lenders is required in certain circumstances as set forth above, (x) each Lender is entitled to vote as such Lender
sees fit on any bankruptcy reorganization plan that affects the Loans, and each Lender acknowledges that the provisions of Section 1126(c) of the Bankruptcy Code supersedes the unanimous consent provisions set forth herein and (y) the Required
Lenders shall determine whether or not to allow a Credit Party to use cash collateral in the context of a bankruptcy or insolvency proceeding and such determination shall be binding on all of the Lenders. 
  

	 	11.7	Counterparts. 

  
 This Credit Agreement may be executed in any number of counterparts, each of which where so executed and delivered shall be an original, but all of which
shall constitute one and the same instrument. It shall not be necessary in making proof of this Credit Agreement to produce or account for more than one such counterpart. 
  

	 	11.8	Headings. 

  
 The headings of the sections and subsections hereof are provided for convenience only and shall not in any way affect the meaning or construction of any
provision of this Credit Agreement. 
  

	 	11.9	USA PATRIOT Act Notice. 

  
 Each Lender and the Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the requirements of the USA Patriot
Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower
and other information that will allow such Lender or the Agent, as applicable, to identify the Borrower in accordance with the Act. 
  

 84 

	 	11.10	 	Survival of Indemnification and Representations and Warranties. 

  

All indemnities set forth herein and all representations and warranties made hereunder and in any other Credit Document or other document delivered
pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery of this Credit Agreement, the making of the Loans, the issuance of the Letters of Credit, the repayment of the Loans, LOC Obligations and
other obligations and the termination of the Commitments hereunder. Such representations and warranties have been or will be relied upon by the Agent and each Lender, regardless of any investigation made by the Agent or any Lender or on their behalf
and notwithstanding that the Agent or any Lender may have had notice or knowledge of any Default or Event of Default at the time of any extension of credit hereunder, and shall continue in full force and effect as long as any Loan or any other
Credit Party Obligation hereunder shall remain unpaid or unsatisfied or any Letter of Credit shall remain outstanding. 
  

	 	11.11	 	Governing Law; Venue. 

  
 (a) THIS CREDIT AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE
GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TENNESSEE. Any legal action or proceeding with respect to this Credit Agreement or any other Credit Document may be brought in the courts of the State of North
Carolina or the State of Tennessee or of the United States for the Western District of North Carolina or the Eastern District of Tennessee and, by execution and delivery of this Credit Agreement, each Credit Party hereby irrevocably accepts for
itself and in respect of its property, generally and unconditionally, the jurisdiction of such courts. Each Credit Party further irrevocably consents to the service of process out of any of the aforementioned courts in any such action or proceeding
by the mailing of copies thereof by registered or certified mail, postage prepaid, to it at the address for notices pursuant to Section 11.1, such service to become effective 30 days after such mailing. Nothing herein shall affect the right of a
Lender to serve process in any other manner permitted by law or to commence legal proceedings or to otherwise proceed against a Credit Party in any other jurisdiction. 
  
 (b) Each Credit Party hereby irrevocably waives any objection which it may now or hereafter have to the
laying of venue of any of the aforesaid actions or proceedings arising out of or in connection with this Credit Agreement or any other Credit Document brought in the courts referred to in subsection (a) hereof and hereby further irrevocably waives
and agrees not to plead or claim in any such court that any such action or proceeding brought in any such court has been brought in an inconvenient forum. 
  

	 	11.12	 	Waiver of Jury Trial. 

  
 EACH PARTY TO THIS CREDIT AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY
CREDIT DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY CREDIT DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES 

  

 85 

 
AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS CREDIT
AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 
  

	 	11.13	 	Time. 

  
 All references to time herein shall be references to Eastern Standard Time or Eastern Daylight Time, as the case may be, unless specified otherwise.

  

	 	11.14	 	Severability. 

  
 If any provision of any of the Credit Documents is determined to be illegal, invalid or unenforceable, such provision shall be fully severable and the
remaining provisions shall remain in full force and effect and shall be construed without giving effect to the illegal, invalid or unenforceable provisions. 
  

	 	11.15	 	Entirety. 

  
 This Credit Agreement together with the other Credit Documents represent the entire agreement of the parties hereto and thereto, and supersede all prior
agreements and understandings, oral or written, if any, including any commitment letters or correspondence relating to the Credit Documents or the transactions contemplated herein and therein. 
  

	 	11.16	 	Binding Effect; Further Assurances. 

  
 This Credit Agreement shall become effective at such time when all of the conditions set forth in Section 5.1 have been satisfied or waived by the Lenders
and it shall have been executed by the Borrower, the Guarantors and the Agent, and the Agent shall have received copies hereof (telefaxed or otherwise) which, when taken together, bear the signatures of each Lender, and thereafter this Credit
Agreement shall be binding upon and inure to the benefit of the Borrower, the Guarantors, the Agent and each Lender and their respective successors and assigns. The Borrower further agrees, upon the request of the Agent and/or the Required Lenders,
to promptly take such actions, as reasonably requested, as are appropriate to carry out the intent of this Credit Agreement and the other Credit Documents, including, but not limited to, such actions as are reasonably necessary to ensure that the
Agent, for the benefit of the Lenders, has a perfected security interest in all Collateral securing the Credit Party Obligations, subject to no Liens other than Permitted Liens 
  

	 	11.17	 	Designated Senior Indebtedness. 

  
 The Borrower hereby designates this Credit Agreement and the Credit Party Obligations evidenced hereby as “Designated Senior Indebtedness” (as
defined in the Subordinated Indenture) for all purposes of the Subordinated Indenture. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 86 

 Each of the parties hereto has caused a counterpart of this Credit Agreement to be duly executed and
delivered as of the date first above written. 
  

									
	BORROWER:	 	 	 	  
 CHATTEM, INC.,
 a Tennessee corporation

					
	 	 	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Title:
	 	 
	 	 	 	 	 	 	 	 	

  

									
	GUARANTORS:	 	 	 	 SIGNAL INVESTMENT & MANAGEMENT CO.,
 a Delaware corporation

					
	 	 	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Title:
	 	 
	 	 	 	 	 	 	 	 	

  

									
	 	 	 	 	 SUNDEX, LLC,
 a Tennessee limited liability company

					
	 	 	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Title:
	 	 
	 	 	 	 	 	 	 	 	

  

									
	 	 	 	 	 CHATTEM (CANADA) HOLDINGS, INC.
 a Delaware corporation

					
	 	 	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Title:
	 	 
	 	 	 	 	 	 	 	 	

  

									
	AGENT:	 	 	 	  
 BANK OF AMERICA, N.A.,
 in its capacity as Agent

					
	 	 	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 

  

									
	LENDERS:	 	 	 	 BANK OF AMERICA, N.A.,
 in its capacity as a Lender

					
	 	 	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Title:Indenture

 EXHIBIT 4.1 
  

NECTAR MERGER CORPORATION 
  
 (as Issuer) 
  
 7.75% Senior Subordinated Notes due 2014 
  
  

  
  
 INDENTURE 
  
 Dated as of February 6, 2004 
  
  

  
  
 U.S. BANK NATIONAL ASSOCIATION 
  
 (as Trustee) 

 TABLE OF CONTENTS 
  

					
			
	 	 	 	  	Page
		
	ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE	  	2
			
	SECTION 1.1	 	Definitions	  	2
	SECTION 1.2	 	Other Definitions	  	27
	SECTION 1.3	 	Incorporation by Reference of Trust Indenture Act	  	28
	SECTION 1.4	 	Rules of Construction	  	29
		
	ARTICLE II THE NOTES	  	29
			
	SECTION 2.1	 	Form and Dating	  	29
	SECTION 2.2	 	Execution and Authentication	  	30
	SECTION 2.3	 	Registrar, Paying Agent and depositary	  	30
	SECTION 2.4	 	Paying Agent to Hold Money in Trust	  	31
	SECTION 2.5	 	Holder Lists	  	31
	SECTION 2.6	 	Transfer and Exchange	  	31
	SECTION 2.7	 	Replacement Notes	  	43
	SECTION 2.8	 	Outstanding Notes	  	43
	SECTION 2.9	 	Treasury Notes	  	43
	SECTION 2.10	 	Temporary Notes	  	43
	SECTION 2.11	 	Cancellation	  	44
	SECTION 2.12	 	Defaulted Interest	  	44
	SECTION 2.13	 	CUSIP Numbers	  	45
	SECTION 2.14	 	Issuance of Additional Notes	  	45
		
	ARTICLE III REDEMPTION	  	45
			
	SECTION 3.1	 	Notices to Trustee	  	45
	SECTION 3.2	 	Selection of Notes to Be Redeemed	  	45
	SECTION 3.3	 	Notice of Redemption	  	46
	SECTION 3.4	 	Effect of Notice of Redemption	  	46
	SECTION 3.5	 	Deposit of Redemption Price	  	46
	SECTION 3.6	 	Notes Redeemed in Part	  	47
	SECTION 3.7	 	Optional Redemption	  	47
	SECTION 3.8	 	Mandatory Redemption	  	48
		
	ARTICLE IV COVENANTS	  	49
			
	SECTION 4.1	 	Payment of Notes	  	49
	SECTION 4.2	 	Maintenance of Office or Agency	  	49
	SECTION 4.3	 	SEC Reports and Reports to Holders	  	50
	SECTION 4.4	 	Compliance Certificate	  	50
	SECTION 4.5	 	Taxes	  	51
	SECTION 4.6	 	Stay, Extension and Usury Laws	  	51
	SECTION 4.7	 	Limitation on Incurrence Of Additional Indebtedness and disqualified capital stock	  	51
	SECTION 4.8	 	Limitation on Liens	  	53
	SECTION 4.9	 	Limitation on Restricted Payments	  	53
	SECTION 4.10	 	Limitation on Dividends and Other Payment Restrictions Affecting Subsidiaries	  	56
	SECTION 4.11	 	Limitation on Transactions with Affiliates	  	57
	SECTION 4.12	 	Limitation on Sale Of Assets And Subsidiary Stock	  	57

  

 i 

					
	SECTION 4.13	 	Repurchase of Notes At The Option Of The Holder upon a Change of Control	  	61
	SECTION 4.14	 	Subsidiary Guarantors	  	62
	SECTION 4.15	 	Limitation On Status As Investment Company	  	62
	SECTION 4.16	 	Maintenance of Properties and Insurance	  	63
	SECTION 4.17	 	Corporate Existence	  	63
	SECTION 4.18	 	Limitation on Activities Prior to Consummation of the Merger	  	63
	SECTION 4.19	 	Limitation on Layering Indebtedness	  	63
	SECTION 4.20	 	Limitation on Ability of Company to Release Funds From Secured Proceeds Account.	  	64
		
	ARTICLE V SUCCESSORS	  	64
			
	SECTION 5.1	 	Merger, Consolidation or Sale of Assets	  	64
	SECTION 5.2	 	Successor Corporation Substituted	  	64
		
	ARTICLE VI DEFAULTS AND REMEDIES	  	65
			
	SECTION 6.1	 	Events of Default	  	65
	SECTION 6.2	 	Acceleration	  	66
	SECTION 6.3	 	Other Remedies	  	67
	SECTION 6.4	 	Waiver of Past Defaults	  	67
	SECTION 6.5	 	Control by Majority	  	68
	SECTION 6.6	 	Limitation on Suits	  	68
	SECTION 6.7	 	Rights of Holders of Notes to Receive Payment	  	68
	SECTION 6.8	 	Collection Suit by Trustee	  	69
	SECTION 6.9	 	Trustee May File Proofs of Claim	  	69
	SECTION 6.10	 	Priorities	  	69
	SECTION 6.11	 	Undertaking for Costs	  	70
		
	ARTICLE VII TRUSTEE	  	70
			
	SECTION 7.1	 	Duties of Trustee	  	70
	SECTION 7.2	 	Rights of Trustee	  	71
	SECTION 7.3	 	Individual Rights of Trustee	  	72
	SECTION 7.4	 	Trustee’s Disclaimer	  	72
	SECTION 7.5	 	Notice of Defaults	  	72
	SECTION 7.6	 	Reports by Trustee to Holders of the Notes	  	72
	SECTION 7.7	 	Compensation and Indemnity	  	73
	SECTION 7.8	 	Replacement of Trustee	  	74
	SECTION 7.9	 	Successor Trustee by Merger, etc.	  	75
	SECTION 7.10	 	Eligibility; Disqualification	  	75
	SECTION 7.11	 	Preferential Collection of Claims Against Company	  	75
		
	ARTICLE VIII LEGAL DEFEASANCE AND COVENANT DEFEASANCE AND SATISFACTION AND DISCHARGE	  	75
			
	SECTION 8.1	 	Option to Effect Legal Defeasance or Covenant Defeasance	  	75
	SECTION 8.2	 	Legal Defeasance and Discharge	  	75
	SECTION 8.3	 	Covenant Defeasance	  	76
	SECTION 8.4	 	Conditions to Legal or Covenant Defeasance	  	76
	SECTION 8.5	 	Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous Provisions	  	78
	SECTION 8.6	 	Repayment to Company	  	78
	SECTION 8.7	 	Reinstatement	  	78

  

 ii 

					
			
	SECTION 8.8	 	SATISFACTION AND DISCHARGE	  	79
		
	ARTICLE IX AMENDMENT, SUPPLEMENT AND WAIVER	  	80
			
	SECTION 9.1	 	Without Consent of Holders of Notes	  	80
	SECTION 9.2	 	With Consent of Holders of Notes	  	80
	SECTION 9.3	 	Compliance with Trust Indenture Act	  	82
	SECTION 9.4	 	Revocation and Effect of Consents	  	82
	SECTION 9.5	 	Notation on or Exchange of Notes	  	83
	SECTION 9.6	 	Trustee to Sign Amendments, etc.	  	83
		
	ARTICLE X GUARANTEES	  	83
			
	SECTION 10.1	 	Guarantees	  	83
	SECTION 10.2	 	Execution and Delivery of Guarantees	  	85
	SECTION 10.3	 	Guarantors May Consolidate, etc., on Certain Terms	  	85
	SECTION 10.4	 	Release of guarantors	  	86
	SECTION 10.5	 	Limitation of Guarantor’s Liability; certain bankruptcy events	  	87
	SECTION 10.6	 	Application of Certain Terms and Provisions to the Guarantors	  	87
	SECTION 10.7	 	Subordination of guarantees	  	87
		
	ARTICLE XI SUBORDINATION	  	88
			
	SECTION 11.1	 	Notes Subordinated to Senior Indebtedness	  	88
	SECTION 11.2	 	No Payment on Notes in Certain Circumstances	  	88
	SECTION 11.3	 	Notes Subordinated to Prior Payment of All Senior Indebtedness on Dissolution, Liquidation or Reorganization	  	90
	SECTION 11.4	 	Holders to Be Subrogated to Rights of Holders of Senior Indebtedness	  	90
	SECTION 11.5	 	Relative Rights	  	90
	SECTION 11.6	 	Trustee Entitled to Assume Payments Not Prohibited in Absence of Notice.	  	91
	SECTION 11.7	 	Application by Trustee of Assets Deposited with it	  	91
	SECTION 11.8	 	Subordination Rights Not Impaired by Acts or Omissions of the Company, the Guarantors or Holders of Senior Indebtedness	  	91
	SECTION 11.9	 	Holders Authorize Trustee to Effectuate Subordination of Notes.	  	92
	SECTION 11.10	 	Right of Trustee to Hold Senior Indebtedness	  	92
	SECTION 11.11	 	Article XI Not to Prevent Events of Default	  	93
	SECTION 11.12	 	No Fiduciary Duty of Trustee to Holders of Senior Indebtedness	  	93
		
	ARTICLE XII MISCELLANEOUS	  	93
			
	SECTION 12.1	 	Trust Indenture Act Controls	  	93
	SECTION 12.2	 	Notices	  	93
	SECTION 12.3	 	Communication by Holders of Notes with Other Holders of Notes	  	94
	SECTION 12.4	 	Certificate and Opinion as to Conditions Precedent	  	95
	SECTION 12.5	 	Statements Required in Certificate or Opinion	  	95
	SECTION 12.6	 	Rules by Trustee and Agents	  	95
	SECTION 12.7	 	No Personal Liability of Directors, Officers, Employees and Stockholders	  	95
	SECTION 12.8	 	Governing Law	  	96
	SECTION 12.9	 	No Adverse Interpretation of Other Agreements	  	96
	SECTION 12.10	 	Successors	  	96
	SECTION 12.11	 	Severability	  	96
	SECTION 12.12	 	Counterpart Originals	  	96
	SECTION 12.13	 	Table of Contents, Headings, Etc.	  	96

  

 iii 

 CROSS-REFERENCE TABLE* 
  

			
	 TIA Section

	  	 Indenture Section

	 310(a)(1)
	  	7.10
	       (a)(2)
	  	7.10
	       (a)(3)
	  	N.A.
	       (a)(4)
	  	N.A.
	       (a)(5)
	  	7.10
	       (b)
	  	7.10
	       (c)
	  	N.A.
	 311(a)
	  	7.11
	       (b)
	  	7.11
	       (c)
	  	N.A.
	 312(a)
	  	2.5
	       (b)
	  	12.3
	       (c)
	  	12.3
	 313(a)
	  	7.6
	       (b)(1)
	  	N.A.
	       (b)(2)
	  	7.6; 7.7
	       (c)
	  	7.5; 7.6; 12.2
	       (d)
	  	7.6
	 314(a)
	  	12.2; 12.5
	       (b)
	  	N.A.
	       (c)(1)
	  	12.4
	       (c)(2)
	  	12.4
	       (c)(3)
	  	N.A.
	       (d)
	  	N.A.
	       (e)
	  	12.5
	       (f)
	  	N.A.
	 315(a)
	  	7.1(b)
	       (b)
	  	7.5; 12.2
	       (c)
	  	7.1(a)
	       (d)
	  	7.1(c)
	       (e)
	  	6.11
	 316(a)(last sentence)
	  	2.9
	       (a)(1)(A)
	  	6.5
	       (a)(1)(B)
	  	6.4
	       (a)(2)
	  	N.A.
	       (b)
	  	6.7
	       (c)
	  	2.12
	 317(a)(1)
	  	6.8
	       (a)(2)
	  	6.9
	       (b)
	  	2.4
	 318(a)
	  	11.1
	       (c)
	  	11.1

 N.A. means not applicable 

	*	This Cross-Reference table shall not, for any purpose, be deemed to be part of this Indenture. 

  

 1 

 INDENTURE, dated as of February 6, 2004, by and between Nectar Merger Corporation, a Delaware
corporation, to be merged with and into FTD, Inc., a Delaware corporation, and its successor (“FTD”), upon consummation of the Merger (as defined herein), with FTD as the surviving corporation (the “Company”), and U.S. Bank
National Association, as trustee (including any successors thereto, the “Trustee”). 
  
 Pursuant to the Agreement and Plan of Merger, dated as of October 5, 2004, by and among the Company, FTD, and Mercury Man Holdings Corporation, a Delaware corporation (the “Merger Agreement”), the Company
will be merged with and into FTD, with FTD as the surviving corporation and an indirect wholly owned subsidiary of Parent (the “Merger”). Upon consummation of the Merger, FTD will assume the Company’s obligations under this Indenture
and will cause its Subsidiaries (as defined below) to become Guarantors to the extent required by this Indenture. 
  
 Each party agrees as follows for the benefit of each other and for the equal and ratable benefit of the Holders of the 7.75% Senior Subordinated Notes due
2014 (the “Series A Notes”) and the 7.75% Series B Senior Subordinated Notes due 2014 (the “Series B Notes” and, together with the Series A Notes, the “Notes”): 
  
 ARTICLE I 
 DEFINITIONS AND INCORPORATION 
 BY REFERENCE 
  
 SECTION 1.1 DEFINITIONS 
  
 “144A Global Note” means one or more Global Notes bearing
the Private Placement Legend, that will be issued in an aggregate amount of denominations equal in total to the outstanding principal amount of the Notes sold in reliance on Rule 144A. 
  
 “Accrued Bankruptcy Interest” means, with respect to any Indebtedness, all interest accruing thereon after
the filing of a petition by or against the Company or any of its Subsidiaries under any Bankruptcy Law, in accordance with and at the rate (including any rate applicable upon any default or event of default, to the extent lawful) specified in the
documents evidencing or governing such Indebtedness, whether or not the claim for such interest is allowed as a claim after such filing in any proceeding under such Bankruptcy Law. 
  
 “Acquired Indebtedness” means Indebtedness (including Disqualified Capital Stock) of any Person existing at
the time such Person becomes a Subsidiary of the Company, including by designation, or is merged or consolidated into or with the Company or one of its Subsidiaries. 
  
 “Additional Notes” means additional Notes which may be issued after the Issue Date pursuant to this
Indenture (other than pursuant to an Exchange Offer or otherwise in exchange for or in replacement of outstanding Notes). All references herein to “Notes” shall be deemed to include Additional Notes except as stated otherwise. 

 
 “Affiliate” means any Person directly or indirectly
controlling or controlled by or under direct or indirect common control with the Company. For purposes of this definition, the term “control” means the power to direct the management and policies of a Person, directly or through one or
more intermediaries, whether through the ownership of voting securities, by 
  

 2 

 contract, or otherwise; provided, that with respect to ownership interest in the Company and its Subsidiaries, a
Beneficial Owner of 10% or more of the total voting power normally entitled to vote in the election of directors, managers or trustees, as applicable (other than any such Beneficial Owner eligible to report ownership on Schedule 13F or Schedule 13G
(or any similar successor forms under the Exchange Act rules and regulations)) shall for such purposes be deemed to possess control. Notwithstanding the foregoing, the term “Affiliate” shall not include Subsidiaries. 
  
 “Agent” means any Registrar, co-registrar, Paying Agent or
additional paying agent. 
  
 “Applicable Premium”
means, with respect to the Notes at any Change of Control Redemption Date, the greater of: 
  
 (1) 1.0% of the principal amount of such Notes; and 
  
 (2) the excess of 
  
 (A) the present value at such time of (i) the redemption price of such Notes at February 15, 2009 (such redemption price being described under Section 3.7 hereof) plus (ii) all accrued and unpaid interest required to be paid on such Notes
from the date of redemption through February 15, 2009, computed using a discount rate equal to the Treasury Rate as of such redemption date plus 0.50% per annum, over 
  
 (B) the principal amount of such Notes. 
  
 “Applicable Procedures” means, with respect to any transfer or exchange of or for beneficial interests in
any Global Note, the rules and procedures of the Depositary, Euroclear and Clearstream that apply to such transfer or exchange at the relevant time. 
  
 “Average Life” means, as of the date of determination, with respect to any security or instrument, the quotient obtained by dividing (i)
the sum of the products (a) of the number of years from the date of determination to the date or dates of each successive scheduled principal (or redemption) payment of such security or instrument and (b) the amount of each such respective principal
(or redemption) payment by (ii) the sum of all such principal (or redemption) payments. 
  
 “Bankruptcy Code” means the United States Bankruptcy Code, codified at 11 U.S.C. §101-1330, as amended. 
  
 “Bankruptcy Law” means Title 11, U.S. Code, or any similar Federal, state or foreign law for the relief of debtors. 
  
 “Beneficial Owner” or “beneficial owner”
for purposes of the definition of Change of Control and Affiliate has the meaning attributed to it in Rules 13d-3 and 13d-5 under the Exchange Act (as in effect on the Issue Date), whether or not applicable. 
  
 “Board of Directors” means the board of directors of the
Company or any committee of the board of directors authorized, with respect to any particular matter, to exercise the power of the board of directors of the Company. 
  

 3 

 “Broker-Dealer” means any broker-dealer that receives Exchange Notes for its own account
in the Exchange Offer in exchange for Notes that were acquired by such broker-dealer as a result of market-making or other trading activities. 
  
 “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in New York,
New York are authorized or obligated by law or executive order to close. 
  
 “Capital Contribution” means any contribution to the equity of the Company from a direct or indirect parent of the Company for which no consideration (other than the issuance of Qualified Capital
Stock) is given. 
  
 “Capitalized Lease
Obligation” means, as to any Person, the obligations of such Person under a lease that are 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. 
  
 “Capital Stock” means: 
  
 (1) in the case of a corporation, corporate stock; 
  
 (2) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of
corporate stock; 
  
 (3) in the case of a partnership or limited
liability company, partnership or membership interests (whether general or limited); and 
  
 (4) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person, but excluding from all of the foregoing
any debt securities convertible into Capital Stock, whether or not such debt securities include any right of participation with Capital Stock. 
  
 “Cash Equivalent” means: 
  
 (1) securities issued or directly and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof
(provided, that the full faith and credit of the United States of America is pledged in support thereof); 
  
 (2) demand deposits, time deposits and certificates of deposit and commercial paper issued by the parent corporation of any domestic commercial bank of
recognized standing having capital and surplus in excess of $500,000,000; 
  
 (3) commercial paper issued by others rated at least A-2 or the equivalent thereof by S&P or at least P-2 or the equivalent thereof by Moody’s; 
  
 (4) repurchase obligations having terms not more than seven days, with institutions meeting the criteria set forth in clause
(2) above, for direct obligations issued by or fully guaranteed by the United States of America (provided, that the full faith and credit of the United States of America is pledged in support thereof), having, on the date of purchase thereof,
a Fair Market Value of at least 100% of the amount of repurchase obligations; 
  

 4 

 (5) interests in money market or mutual funds all of whose assets are invested in assets or securities of
the type described in clauses (1) through (4) above; 
  
 (6) with
respect to Investments by any Foreign Subsidiary, any demand deposit account; 
  
 (7) direct investments in tax exempt obligations of any state of the United States of America, or any municipality of any such state, in each case rated “AA” or better by S&P, “Aa2” or better
by Moody’s or an equivalent rating by any other credit rating agency of recognized national standing, provided that such obligations mature within six months from the date of acquisition thereof; or 
  
 (8) investments in mutual funds, 95% of more of the assets of which are
invested in obligations of the types described in clauses (1) - (7) above, 
  
 and in the case of each of (1), (2), and (3) maturing within one year after the date of acquisition. 
  
 “Change of Control” means: (1) prior to consummation of the first Public Equity Offering after the Issue Date, the Permitted Holders
shall cease to beneficially own, in the aggregate, a majority of the voting power of the Voting Equity Interests of the Company, or (2) following the consummation of the first Public Equity Offering after the Issue Date, (A) any merger or
consolidation of the Company with or into any Person or any sale, transfer or other conveyance, whether direct or indirect, of all or substantially all of the Company’s assets, on a consolidated basis, in one transaction or a series of related
transactions, if, immediately after giving effect to such transaction(s), any “person” (including any group that is deemed to be a “person”) (other than the Permitted Holders) is or becomes the beneficial owner of more than 40%
of the aggregate voting power of the Voting Equity Interests of the transferee(s) or surviving entity or entities and the Permitted Holders, in the aggregate, beneficially own, directly or indirectly, less voting power than such person, (B) any
“person” (including any group that is deemed to be a “person”) (other than the Permitted Holders) is or becomes the beneficial owner of more than 40% of the aggregate voting power of the Voting Equity Interests of the Company and
the Permitted Holders, in the aggregate, beneficially own, directly or indirectly, less voting power than such person, (C) the Continuing Directors cease for any reason to constitute a majority of the Company’s Board of Directors then in
office, or (D) the Company adopts a plan of liquidation. As used in this definition, “person” (including any group that is deemed to be a “person”) has the meaning given by Sections 13(d) of the Exchange Act, whether or not
applicable. 
  
 “Clearstream” means Clearstream
Banking Luxembourg, or its successors. 
  
 “Commission” means the Securities and Exchange Commission. 
  
 “Consolidated Coverage Ratio” of any Person on any date of determination (the “Transaction Date”) means the ratio, on a pro forma basis, of (a) the aggregate amount of Consolidated
EBITDA of such Person attributable to continuing operations and businesses (exclusive of amounts attributable to operations and businesses permanently discontinued or disposed of) for the Reference Period to (b) the aggregate Consolidated Fixed
Charges of such Person (exclusive of amounts attributable to operations and businesses permanently discontinued or disposed of, but only to the extent that the obligations giving rise to such Consolidated Fixed Charges would no longer be obligations
contributing to such Person’s Consolidated Fixed 
  

 5 

 Charges subsequent to the Transaction Date) during the Reference Period; provided, that for purposes of such
calculation: 
  
 (1) acquisitions which occurred during the
Reference Period or subsequent to the Reference Period and on or prior to the Transaction Date shall be assumed to have occurred on the first day of the Reference Period; 
  
 (2) transactions giving rise to the need to calculate the Consolidated Coverage Ratio shall be assumed to have occurred on
the first day of the Reference Period; 
  
 (3) the incurrence of
any Indebtedness (including issuance of any Disqualified Capital Stock) during the Reference Period or subsequent to the Reference Period and on or prior to the Transaction Date (and the application of the proceeds therefrom), other than
Indebtedness incurred under any revolving credit facility, shall be assumed to have occurred on the first day of the Reference Period; 
  
 (4) if since the beginning of such period the Company or any Guarantor has repaid, repurchased, redeemed, defeased or otherwise acquired, retired or
discharged any Indebtedness (each a “Discharge”) or if the transaction giving rise to the need to calculate the Consolidated Coverage Ratio involves a Discharge of Indebtedness (in each case other than Indebtedness incurred under any
revolving credit facility unless such Indebtedness has been permanently repaid), Consolidated EBITDA and Consolidated Fixed Charges for such period shall be calculated after giving effect on a pro forma basis to such Discharge of such
Indebtedness, including with the net proceeds of such new Indebtedness, as if such Discharge had occurred on the first day of such period; and 
  
 (5) in the case of an incurrence, at any time during or after the Reference Period, of Indebtedness (including any Disqualified Capital Stock) with a
floating interest or dividend rate shall be computed on a pro forma basis as if the rate applicable at the Transaction Date had been in effect from the beginning of the Reference Period to the Transaction Date, unless such Person or any of
its Subsidiaries is a party to an Interest Swap or Hedging Obligation that has the effect of fixing the interest rate or dividend rate on the date of computation, in which case such rate shall be used. 
  
 For purposes of this definition, whenever pro forma effect is to be
given to a transaction, the pro forma calculations shall be made in good faith by a responsible financial or accounting officer of the Company. 
  
 “Consolidated EBITDA” means, with respect to any Person, for any period, the Consolidated Net Income of such Person for such period
adjusted (A) to exclude all non-cash items, including gains and losses, attributable to the movement in the mark to market valuation of Interest Swap and Hedging Obligations pursuant to Financial Accounting Standards Board Statement No. 133—
“Accounting for Derivative Instruments and Hedging Activities,” (B) to add thereto (to the extent deducted from net revenues in determining Consolidated Net Income), without duplication, the sum of: 
  
 (1) Consolidated income tax expense and any payments made to a Parent Entity
pursuant to clause (k)(i) of Section 4.9 hereof; 
  
 (2)
Consolidated depreciation and amortization expense; 
  

 6 

 (3) Consolidated Fixed Charges; 
  
 (4) any unrealized foreign currency translation or transaction gains or losses in respect of Indebtedness or other
obligations of the Company or any Subsidiary; 
  
 (5) without
duplication, any other non-cash charges reducing Consolidated Net Income for such period, excluding any such charge that represents an accrual or reserve for a cash expenditure for a future period; and 
  
 (6) Management Fees paid; 
  
 and (C) to exclude other non-cash items increasing Consolidated Net Income of such Person for
such period, excluding revenues accrued in the ordinary course of business and any items which represent the reversal of any accrual of, or cash reserve for, anticipated cash charges in any prior period; provided, that, except as already
included in the calculation of Consolidated Net Income, consolidated income tax expense and depreciation and amortization of a Subsidiary that is not a Wholly Owned Subsidiary shall only be added to the extent of the Equity Interest of the Company
in such Subsidiary. 
  
 “Consolidated Fixed
Charges” of any Person means, for any period, the aggregate amount (without duplication and determined in each case in accordance with GAAP) of: 
  
 (a) interest expensed or capitalized, paid on, accrued (including, in accordance with the following sentence, interest attributable to Capitalized Lease
Obligations) of such Person and its Consolidated Subsidiaries during such period, including (1) original issue discount and non-cash interest payments (but excluding any non-cash interest expense attributable to the movement in the mark to market
valuation of Interest Swap and Hedging Obligations pursuant to Financial Accounting Standards Board Statement No. 133—”Accounting for Derivative Instruments and Hedging Activities” and amortization of costs for the issuance of
Indebtedness) or accruals on any Indebtedness, (2) the interest portion of all deferred payment obligations, and (3) all commissions, discounts and other fees and charges owed with respect to bankers’ acceptances and letters of credit
financings and Interest Swap and Hedging Obligations (excluding, for the avoidance of doubt, amounts due upon settlement of any such Interest Swap and Hedging Obligation), in each case to the extent attributable to such period; 
  
 (b) the amount of dividends accrued or payable (or guaranteed) by such Person
or any of its Consolidated Subsidiaries in respect of Preferred Stock (other than by Subsidiaries of such Person to such Person or such Person’s Wholly Owned Subsidiaries and than those paid solely in Equity Interests other than Disqualified
Capital Stock); and 
  
 (c) the amount of dividends accrued or
payable in respect of any Disqualified Capital Stock of such Person and its Subsidiaries (other than those paid solely in Equity Interests other than Disqualified Capital Stock). 
  
 For purposes of this definition, (x) interest on a Capitalized Lease Obligation shall be deemed to accrue at an interest rate reasonably
determined in good faith by the Company to be the rate of interest implicit in such Capitalized Lease Obligation in accordance with GAAP and (y) without duplication, interest expense attributable to any Indebtedness represented by the guaranty by
such Person or a Subsidiary of such Person of an obligation of another Person shall be deemed to be the interest expense attributable to the Indebtedness guaranteed. 
  

 7 

 “Consolidated Net Income” means, with respect to any Person for any period, the net
income (or loss) of such Person and its Consolidated Subsidiaries (before preferred stock dividends and otherwise determined on a consolidated basis in accordance with GAAP) for such period, minus an amount equal to any payments made to a Parent
Entity pursuant to clause (k) of Section 4.9 during such period, to the extent the expenses of such Parent Entity paid with the proceeds of such dividend would not otherwise reduce Consolidated Net Income, and adjusted to exclude (only to the extent
included in computing such net income (or loss) and without duplication): 
  
 (a) any after-tax gain, loss, charge or expense which is either extraordinary (as determined in accordance with GAAP) or is either unusual or nonrecurring (including, without limitation, any loss, charge or expense
arising out of or related to the Merger, any restructuring charges and any gain, loss, charge or expense from the sale or other disposition of assets outside the ordinary course of business or from the issuance or sale of any securities) as
determined in good faith by the Company, it being understood and agreed that Item 10(e) of Regulation S-K under the Securities Act shall not constitute a limitation on any such determination; 
  
 (b) the net income, if positive, of any Person, other than a Consolidated
Subsidiary, in which such Person or any of its Consolidated Subsidiaries has an interest, except to the extent of the amount of any dividends or distributions actually paid in cash to such Person or a Consolidated Subsidiary of such Person during
such period, but in any case not in excess of such Person’s pro rata share of such Person’s net income for such period; 
  
 (c) the net income, if positive, of any of such Person’s Consolidated Subsidiaries to the extent that the declaration or payment of dividends or
similar distributions is not at the time permitted by operation of the terms of its charter or bylaws or any other agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to such Consolidated Subsidiary;

  
 (d) the cumulative effect of a change in accounting
principles; 
  
 (e) any non-cash compensation expense realized
from grants of stock appreciation or similar rights, stock options or other rights to officers, directors and employees of the Company or any Guarantor; 
  
 (f) amounts resulting from currency fluctuations; and 
  
 (g) any goodwill impairment charges pursuant to Financial Accounting Standards Board Statement No. 142. 
  
 “Consolidated Subsidiary” means, for any Person, each
Subsidiary of such Person (whether now existing or hereafter created or acquired) the financial statements of which are Consolidated for financial statement reporting purposes with the financial statements of such Person in accordance with GAAP.

  
 “Consolidation” means, with respect to the
Company, the consolidation of the accounts of the Subsidiaries with those of the Company, all in accordance with GAAP; provided that “Consolidation” will not include the consolidation of the accounts of any Unrestricted Subsidiary
with the accounts of the Company. The term “consolidated” has a correlative meaning to the foregoing. 
  

 8 

 “Corporate Trust Office of the Trustee” shall be at the address of the Trustee specified
in Section 12.2 hereof or such other address as to which the Trustee may give notice to the Company. 
  
 “Continuing Director” means during any period of 12 consecutive months after the Issue Date, individuals who at the beginning of any such
12-month period constituted the Board of Directors (together with any new directors whose election by such Board of Directors or whose nomination for election by the shareholders of the Company was approved by a vote of a majority of the directors
then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved, including new directors designated in or provided for in an agreement regarding the merger,
consolidation or sale, transfer or other conveyance, of all or substantially all of the assets of the Company or any Parent Entity, if such agreement was approved by a vote of such majority of directors). 
  
 “Credit Agreement” means the credit agreement dated on or
prior to the closing of the Merger, by and among Nectar Merger Corporation, FTD, certain financial institutions, UBS Securities LLC, as syndication agent, Wells Fargo Bank, N.A., as documentation agent, and Credit Suisse First Boston, acting through
its Cayman Islands Branch, as administrative agent, providing for (A) an aggregate $85,000,000 term loan facility, and (B) an aggregate $50,000,000 revolving credit facility, including any related notes, guarantees, collateral documents, instruments
and agreements executed in connection therewith, as such credit agreement and/or related documents may be amended, restated, supplemented, renewed, replaced, refinanced (in whole or in part) or otherwise modified from time to time by one or more
agreements, facilities, instruments or debt securities (including, without limitation, debt securities sold into the capital markets) whether or not with the same agent, trustee, representative lenders or holders whether or not previously repaid in
full or in part for any period of time, and, subject to the proviso to the next succeeding sentence, irrespective of any changes in the terms and conditions thereof. Without limiting the generality of the foregoing, the term “Credit
Agreement” shall include agreements in respect of Interest Swap and Hedging Obligations with Persons which, at the time such agreements were entered into, were lenders (or Affiliates thereof) party to the Credit Agreement and shall also include
any amendment, amendment and restatement, renewal, extension, restructuring, supplement or modification to any Credit Agreement and all refundings, refinancings and replacements of any Credit Agreement, including any agreements, facilities,
instruments or debt securities: 
  
 (1) extending the maturity of
any Indebtedness incurred thereunder or contemplated thereby; 
  
 (2) adding or deleting borrowers or guarantors thereunder, so long as borrowers and issuers include one or more of the Company and its Subsidiaries and their respective successors and assigns; 
  
 (3) increasing the amount of Indebtedness incurred thereunder or available to
be borrowed thereunder; provided, that on the date such Indebtedness is incurred it would not be prohibited by Section 4.7 hereof; or 
  
 (4) otherwise altering the terms and conditions thereof in a manner not prohibited by the terms of this Indenture. 
  
 “Custodian” means any receiver, trustee, assignee,
liquidator or similar official under any Bankruptcy Law. 
  

 9 

 “Default” means any event that is or with the passage of time or the giving of notice or
both would be an Event of Default. 
  
 “Definitive
Note” means one or more certificated Notes registered in the name of the Holder thereof and issued in accordance with Section 2.6 hereof, in the form of Exhibit A hereto except that such Note shall not include the information called for by
footnotes 3, 4 and 8 thereof. 
  
 “Depositary”
means, with respect to the Notes issuable or issued in whole or in part in global form, the Person specified in Section 2.3 hereof as the Depositary with respect to the Notes, until a successor will have been appointed and become such pursuant to
the applicable provisions of this Indenture, and thereafter “Depositary” will mean or include such successor. 
  
 “Designated Senior Indebtedness” means (A) so long as any Indebtedness is outstanding or commitments to lend exist under the Credit
Agreement, the Credit Agreement and (B) upon receipt of the consent of the requisite lenders under the Credit Agreement or at any time at which no Indebtedness is outstanding or commitments to lend exist under the Credit Agreement, any series of
Senior Indebtedness with at least $10,000,000 principal amount outstanding as may be designated in writing by the Company, with a copy of such designation delivered to the Trustee. 
  
 “Disqualified Capital Stock” means with respect to any Person, (a) Equity Interests of such Person that, by
its terms or by the terms of any security into which it is convertible, exercisable or exchangeable, is, or upon the happening of an event or the passage of time or both would be, required to be redeemed or repurchased including at the option of the
holder thereof by such Person or any of its Subsidiaries, in whole or in part, on or prior to 91 days following the Stated Maturity of the Notes, (b) any preferred stock of the Company that is issued for cash and is so designated as Disqualified
Capital Stock, pursuant to an Officers’ Certificate on the issuance date thereof, and (c) any Equity Interests of any Subsidiary of such Person other than any common equity with no preferences, privileges, and no redemption or repayment
provisions. Notwithstanding the foregoing, any Equity Interests that would constitute Disqualified Capital Stock solely because the holders thereof have the right to require the Company to repurchase such Equity Interests upon the occurrence of a
change of control or an asset sale shall not constitute Disqualified Capital Stock if the terms of such Equity Interests provide that the Company may not repurchase or redeem any such Equity Interests pursuant to such provisions prior to the
Company’s purchase of the Notes as are required to be purchased pursuant to the provisions of Sections 4.12 and 4.13 hereof. 
  
 “Distribution Compliance Period” means the 40-day distribution compliance period as defined in Regulation S. 
  
 “Equity Interests” means Capital Stock or partnership,
participation or membership interests and all warrants, options or other rights to acquire Capital Stock or partnership, participation or membership interests (but excluding any debt security that is convertible into, or exchangeable for, Capital
Stock or partnership, participation or membership interests). 
  
 “Euroclear” means Euroclear Bank S.A./N.V., or its successor, as operator of the Euroclear system. 
  

 10 

 “Event of Loss” means, with respect to any property or asset, any (1) loss, destruction
or damage of such property or asset or (2) any condemnation, seizure or taking, by exercise of the power of eminent domain or otherwise, of such property or asset, or confiscation or requisition of the use of such property or asset. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as
amended and the rules and regulations of the Commission thereunder. 
  
 “Exchange Notes” means the Series B Notes issued in the Exchange Offer pursuant to Section 2.6(f) hereof. 
  
 “Exchange Offer” shall have the meaning set forth in the Registration Rights Agreement. 
  
 “Exchange Offer Registration Statement” shall have the
meaning set forth in the Registration Rights Agreement. 
  
 “Exempted Affiliate Transaction” means (a) customary employee compensation arrangements approved by a majority of independent (as to such transactions) members of the Board of Directors and reasonable and customary
directors fees, indemnification and similar arrangements and payments pursuant thereto, (b) transactions solely between or among the Company and any of its Subsidiaries or solely among Subsidiaries of the Company, (c) any payments made in connection
with the Merger and the Related Financing Transactions, substantially as described in the Offering Circular, (d) payment of any Restricted Payment or any Investment in an Unrestricted Subsidiary, in each case, not prohibited by this Indenture, (e)
payments or loans to employees or consultants which are approved by a majority of the Board of Directors of the Company in good faith, (f) any agreement as in effect as of the Issue Date or the date the Merger is consummated that was disclosed in
the Offering Circular (other than the Management Agreement) or any payment or transaction contemplated thereby, (g) transactions with customers, clients, FTD-member florists, suppliers, or purchasers or sellers of goods or services, in each case in
the ordinary course of business and otherwise in compliance with the terms of this Indenture, (h) transactions with a Person (other than an Unrestricted Subsidiary of the Company) that is an Affiliate of the Company solely because the Company owns,
directly or through a Subsidiary, an Equity Interest in, or controls, such Person, (i) any issuance of Equity Interests (other than Disqualified Capital Stock) of the Company to Affiliates of the Company or any contribution to the capital of the
Company by Affiliates of the Company, (k) the Management Agreement and, so long as no Default or Event of Default has occurred and is continuing, any payment or transaction contemplated thereby, (l) any payments to the Principals or their Affiliates
in connection with the settlement of the FTD.COM securities litigation, (m) the provision of administrative services and therefore, of supplies and equipment, to any Unrestricted Subsidiary on substantially the same terms provided to or by
Subsidiaries and (n) payment of any Tax Payments that are not prohibited by this Indenture. 
  
 “Existing Indebtedness” means the Indebtedness of the Company and its Subsidiaries (other than Indebtedness under the Credit Agreement) in existence on the closing of the Merger (after giving effect
to the Merger and Related Financing Transactions), reduced to the extent such amounts are repaid, refinanced or retired. 
  
 “Fair Market Value” means the price that would be paid in an arm’s-length transaction between an informed and willing seller under
no compulsion to sell and an informed and willing buyer under no compulsion to buy, as determined in good faith by the Company. 
  

 11 

 “Foreign Subsidiary” means any Subsidiary of the Company which is not organized under
the laws of the United States, any state thereof or the District of Columbia. 
  
 “GAAP” means United States generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as approved by a significant segment of the accounting profession in the United States as in effect at the
time. 
  
 “Global Notes” means one or more Notes
in the form of Exhibit A hereto that includes the information referred to in footnotes 3, 4 and 8 to the form of Note, attached hereto as Exhibit A, issued under this Indenture, that is deposited with or on behalf of and registered in the name of
the Depositary or its nominee. 
  
 “Global Note
Legend” means the legend set forth in Section 2.6(g)(ii) hereof, which is required to be placed on all Global Notes issued under this Indenture. 
  
 “Government Securities” means direct obligations of, or obligations guaranteed by, the United States of America, and the payment for
which the United States pledges its full faith and credit. 
  
 “Guarantee” means a guarantee (other than by endorsement of negotiable instruments for collection in the ordinary course of business), direct or indirect, in any manner (including, without limitation, letters of credit and
reimbursement agreements in respect thereof), of all or any part of any Indebtedness. When used with respect to the Notes, a “Guarantee” means a guarantee by the Guarantors of all or any part of the Notes, in accordance with Article X
hereof. 
  
 “Guarantor” means each of the
Company’s present and future Subsidiaries that at the time are guarantors of the Notes in accordance with this Indenture. 
  
 “Holder” means a Person in whose name a Note is registered on the Registrar’s books. 
  
 “Indebtedness” of any Person means, without duplication:

  
 (a) all liabilities and obligations, contingent or otherwise,
of such Person, to the extent such liabilities and obligations would appear as a liability upon the consolidated balance sheet of such Person in accordance with GAAP, (1) in respect of 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), (2) evidenced by bonds, Notes, debentures or similar instruments, (3) representing the balance deferred and unpaid of the purchase price of any property or services, except those
incurred in the ordinary course of its business that would constitute a trade payable to trade creditors; 
  
 (b) all liabilities and obligations, contingent or otherwise, of such Person (1) evidenced by bankers’ acceptances or similar instruments issued or
accepted by banks, (2) relating to any Capitalized Lease Obligation, or (3) evidenced by a letter of credit or a reimbursement obligation of such Person with respect to any letter of credit; 
  

 12 

 (c) all net obligations of such Person under Interest Swap and Hedging Obligations; 
  
 (d) all liabilities and obligations of others of the kind described in the
preceding clause (a), (b) or (c) that such Person has guaranteed or that is otherwise its legal liability or which are secured by any assets or property of such Person; 
  
 (e) any and all deferrals, renewals, extensions, refinancing and refundings (whether direct or indirect) of, or amendments,
modifications or supplements to, any liability of the kind described in any of the preceding clauses (a), (b), (c) or (d), or this clause (e), whether or not between or among the same parties; and 
  
 (f) all Disqualified Capital Stock of such Person (measured at the greater of
its voluntary or involuntary maximum fixed repurchase price plus accrued and unpaid dividends). 
  
 provided, however, that in no event shall amounts in respect of the settlement of the FTD.COM securities litigation be “Indebtedness” hereunder. 
  
 For purposes hereof, the “maximum fixed repurchase price” of any Disqualified
Capital Stock which does not have a fixed repurchase price shall be calculated in accordance with the terms of such Disqualified Capital Stock as if such Disqualified Capital Stock were purchased on any date on which Indebtedness shall be required
to be determined pursuant to this Indenture, and if such price is based upon, or measured by, the Fair Market Value of such Disqualified Capital Stock, such Fair Market Value to be determined in good faith by the board of directors of the issuer (or
managing general partner of the issuer) of such Disqualified Capital Stock. 
  
 The amount of any Indebtedness outstanding as of any date shall be (1) the accreted value thereof, in the case of any Indebtedness issued with original issue discount and (2) the principal amount thereof in the case of any other
Indebtedness. 
  
 “Indenture” means this
Indenture, as amended or supplemented from time to time in accordance with the terms hereof. 
  
 “Indirect Participant” means an entity that, with respect to DTC, clears through or maintains a direct or indirect, custodial relationship with a Participant. 
  
 “Initial Purchasers” mean the initial purchasers of the
Series A Notes under the Purchase Agreement, dated January 30, 2004, with respect to the Series A Notes. 
  
 “Institutional Accredited Investor” means an institution that is an “accredited investor” as defined in Rule 501(a)(1), (2),
(3) or (7) under the Securities Act, who is not also a QIB. 
  
 “Interest Payment Date” means the stated due date of an installment of interest on the Notes. 
  
 “Interest Swap and Hedging Obligation” means any obligation of any Person pursuant to any interest rate swap agreement, interest rate cap
agreement, interest rate collar agreement, interest rate exchange agreement, currency exchange agreement, commodity hedging agreement or any other agreement or arrangement designed to protect against fluctuations in interest rates, currency values
or commodity prices and not for speculative 
  

 13 

 purposes, including, without limitation, any arrangement whereby, directly or indirectly, such Person is entitled to
receive from time to time periodic payments calculated by applying either a fixed or floating rate of interest on a stated notional amount in exchange for periodic payments made by such Person calculated by applying a fixed or floating rate of
interest on the same notional amount. 
  
 “Investment” by any Person in any other Person means (without duplication): 
  
 (a) the acquisition (whether by purchase, merger, consolidation or otherwise) by such Person (whether for cash, property, services, securities or
otherwise) of Equity Interests, Capital Stock, bonds, Notes, debentures, partnership or other ownership interests or other securities, including any options or warrants, of such other Person; 
  
 (b) the making by such Person of any deposit with, or advance, loan or other
extension of credit to, such other Person (including the purchase of property from another Person subject to an understanding or agreement, contingent or otherwise, to resell such property to such other Person), other than accounts receivable,
endorsements for collection or deposits arising in the ordinary course of business; 
  
 (c) other than guarantees of Indebtedness of the Company or any Subsidiary to the extent permitted by Section 4.7 hereof, the entering into by such Person of any guarantee of, or other credit support or contingent
obligation with respect to, Indebtedness or other liability of such other Person; 
  
 (d) the making of any capital contribution by such Person to such other Person; and 
  
 (e) the designation by the Board of Directors of any Person to be an Unrestricted Subsidiary. 
  
 The Company shall be deemed to make an Investment in an amount equal to the Fair Market Value
of the net assets of any Subsidiary (or, if neither the Company nor any of its Subsidiaries has theretofore made an Investment in such subsidiary, in an amount equal to the Investments being made), at the time that such Subsidiary is designated an
Unrestricted Subsidiary, and any property transferred to an Unrestricted Subsidiary from the Company or a Subsidiary of the Company shall be deemed an Investment valued at its Fair Market Value at the time of such transfer. The Company or any of its
Subsidiaries shall be deemed to have made an Investment in a Person that is or was required to be a Guarantor if, upon the issuance, sale or other disposition of any portion of the Company’s or the Subsidiary’s ownership in the Capital
Stock of such Person, such Person ceases to be a Guarantor. The Fair Market Value of each Investment shall be measured at the time made or returned, as applicable. 
  
 “Issue Date” means the date of first issuance of the Notes under the Indenture. 
  
 “Junior Security” means any Qualified Capital Stock and any
Indebtedness of the Company or a Guarantor, as applicable, that is contractually subordinated in right of payment to all Senior Indebtedness (and any securities issued in exchange for or in replacement of Senior Indebtedness) at least to the same
extent as the Notes or the Guarantee, as applicable, are subordinated to Senior Indebtedness pursuant to this Indenture and has no scheduled installment of principal due, by redemption, sinking fund payment or otherwise, on or prior to the

  

 14 

 Stated Maturity of the Notes; provided, that in the case of subordination in respect of Senior Indebtedness under
the Credit Agreement, “Junior Security” shall mean (except with the consent of the requisite lenders under the Credit Agreement) any Qualified Capital Stock and any Indebtedness of the Company or the Guarantor, as applicable, that:

  
 (1) has a final maturity date occurring after the final
maturity date of all Senior Indebtedness outstanding under the Credit Agreement (and any securities issued in exchange or replacement of such Senior Indebtedness) on the date of issuance of such Qualified Capital Stock or Indebtedness; 

 
 (2) is unsecured; 
  
 (3) has an Average Life longer than the security for which such Qualified
Capital Stock or Indebtedness is being exchanged; and 
  
 (4) by
its terms or by law is subordinated to Senior Indebtedness outstanding under the Credit Agreement (and any securities issued in exchange for Senior Indebtedness) on the date of issuance of such Qualified Capital Stock or Indebtedness at least to the
same extent as the Notes are subordinated to Senior Indebtedness pursuant to this Indenture (including, without limitation, with respect to payment blockage and turnover). 
  
 “Letter of Transmittal” means the letter of transmittal to be prepared by the Company and sent to all
Holders of the Notes for use by such Holders in connection with the Exchange Offer. 
  
 “Lien” means any mortgage, charge, pledge, lien (statutory or otherwise), privilege security interest, hypothecation or other encumbrance upon or with respect to any property of any kind, real or
personal, movable or immovable, now owned or hereafter acquired. 
  
 “Liquidated Damages” means all Liquidated Damages then owing pursuant to the Registration Rights Agreement. 
  
 “Management Agreement” means that certain separate management agreement among FTD and certain of its subsidiaries and Leonard Green &
Partners, L.P., substantially in the form attached as Exhibit F to this Indenture, as amended from time to time in a manner not, when considered as a whole, materially less favorable to FTD. 
  
 “Management Fees” means (A) payments of (i) up to $2,000,000
in any twelve-month period to the Principals or their Affiliates for management, consulting and financial planning services and (ii) any amounts owed to the Principals or their Affiliates for management, consulting and financial advisory services
accrued in accordance with the Management Agreement because the Company’s Consolidated EBITDA did not equal or exceed $46,750,000 during any twelve-month period, and (B) reimbursement of reasonable out-of-pocket expenses of the Principals or
their Affiliates, in each case, pursuant to the Management Agreement.. 
  
 “Merger Consideration and Related Costs” means: (1) the cash consideration for the Merger payable by Mercury Man Holdings Corporation to holders of FTD’s common stock and options to purchase common stock pursuant to
the Merger Agreement, including any amounts payable as a result of any such holders’ exercise of dissenters’ rights; and (2) all fees and expenses related to the foregoing and payable in connection with the Merger, in each case,
substantially as described in the Offering Circular. 
  

 15 

 “Moody’s” means Moody’s Investors Service, Inc. and its successors.

  
 “Net Cash Proceeds” means the aggregate
amount of cash or Cash Equivalents received by the Company in the case of a sale of Qualified Capital Stock or a Capital Contribution and by the Company and its Subsidiaries in respect of an Asset Sale plus, in the case of an issuance of Qualified
Capital Stock upon any exercise, exchange or conversion of securities (including options, warrants, rights and convertible or exchangeable debt) of the Company that were issued for cash on or after the Issue Date, the amount of cash originally
received by the Company upon the issuance of such securities (including options, warrants, rights and convertible or exchangeable debt) less, in each case, the direct costs relating to such Asset Sale or Issuance of Qualified Capital Stock,
including, without limitation, legal, accounting, investment banking and other professional fees, and brokerage and sales commissions and any relocation expenses incurred as a result thereof incurred in connection with such Asset Sale or sale of
Qualified Capital Stock, and, in the case of an Asset Sale only less (1) the amount (estimated reasonably and in good faith by the Company) of income, franchise, sales and other applicable taxes required to be paid by the Company or any of its
respective Subsidiaries in connection with such Asset Sale in the taxable year that such sale is consummated or in the immediately succeeding taxable year, the computation of which shall take into account the reduction in tax liability resulting
from any available operating losses and net operating loss carryovers, tax credits and tax credit carry-forwards, and similar tax attributes, (2) cash payments attributable to Persons owning an interest (other than a Lien) in the assets subject to
the Asset Sale, (3) any deduction of appropriate amounts to be provided by the Company as a reserve in accordance with GAAP against any liability associated with the asset disposed of in such transaction and retained by the Company after such sale
or other disposition thereof, including, without limitation, pension and other post-employment benefit liabilities and liabilities related to environmental matters or against any indemnification obligations associated with such transaction and (4)
any holdbacks with respect to indemnification obligations or purchase price adjustments pending receipt thereof. 
  
 “Non-U.S. Person” means any Person other than a U.S. Person. 
  
 “Notes Custodian” means the Trustee, as custodian with respect to the Notes in global form, or any
successor entity thereto. 
  
 “Obligation” means
any principal, premium or interest payment, or monetary penalty, or damages, due by the Company or any Guarantor under the terms of the Notes or this Indenture, including any Liquidated Damages due pursuant to the terms of the Registration Rights
Agreement. 
  
 “Offering” means the offering of
the Notes by the Company. 
  
 “Offering Circular”
means the final Offering Circular, dated January 30, 2004, relating to the offer and sale of the Series A Notes. 
  
 “Officer” means, with respect to any Person, the Chairman of the Board, the Chief Executive Officer, the President, the Chief Operating
Officer, the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary, any Assistant Secretary, the Principal Accounting Officer, or any Vice President of such Person. 
  
 “Officers’ Certificate” means a certificate signed on
behalf of the Company or any Guarantor by two Officers of the Company or such Guarantor, one of whom must be Chairman of the Board, the Chief Executive Officer, the President, the Chief Operating Officer, 
  

 16 

 the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary, any Assistant
Secretary, the Principal Accounting Officer, or any Vice President of the Company or such Guarantor, that meets the requirements of Sections 12.4 and 12.5 hereof. 
  
 “Opinion of Counsel” means an opinion from legal counsel, that meets the requirements of Sections 12.4 and
12.5 hereof, which opinion may be subject to customary assumptions, limitations and qualifications. The counsel may be an employee of or counsel to the Company or any Subsidiary of the Company. 
  
 “Parent Entity” means a Person that holds, directly or
indirectly, Voting Equity Interests of the Company with voting power, in the aggregate, at least equal to the voting power of the Voting Equity Interests of the Company held by the Permitted Holders on the Issue Date. 
  
 “Participant” means, with respect to the Depositary,
Euroclear or Clearstream, a Person who has an account with the Depositary, Euroclear or Clearstream, respectively (and, with respect to The Depository Trust Company, shall include Euroclear and Clearstream). 
  
 “Permitted Holders” means each of the Principals and any of
their Affiliates. 
  
 “Permitted Indebtedness”
means that: 
  
 (a) Indebtedness incurred by the Company and the
Guarantors, evidenced by the Notes and the Guarantees issued pursuant to this Indenture up to the amounts being issued on the original Issue Date less any amounts repaid or retired; 
  
 (b) Refinancing Indebtedness incurred by the Company and the Subsidiaries, as applicable, with respect to any Existing
Indebtedness or any Indebtedness (including Disqualified Capital Stock), described in clause (a) or incurred pursuant to the Debt Incurrence Ratio test set forth in Section 4.7 hereof, or which was refinanced pursuant to this clause (b); 

 
 (c) Indebtedness incurred by the Company and the Subsidiaries solely in
respect of bankers acceptances, reimbursement obligations with respect to letters of credit, performance bonds, bid and surety bonds and completion guarantees and Indebtedness in respect of workers’ compensation claims in each, to the extent
that such incurrence does not result in the incurrence of any obligation to repay any obligation relating to borrowed money incurred in the ordinary course of business; 
  
 (d) Indebtedness incurred by the Company that is owed to (borrowed from) any Subsidiary, and Indebtedness incurred by a
Subsidiary owed to (borrowed from) any other Guarantor or the Company; provided, that in the case of Indebtedness of the Company or a Guarantor payable to any Subsidiary that is not a Guarantor, such obligations shall be unsecured and
contractually subordinated to payments then due in respect of the Company’s obligations pursuant to the Notes, and any event that causes any Subsidiary to which such Indebtedness is owed no longer to be a Subsidiary (including by designation to
be an Unrestricted Subsidiary) shall be deemed to be a new incurrence by such issuer of such Indebtedness and any guarantor thereof subject to Section 4.7 hereof; 
  

 17 

 (e) guarantees by the Company or any Subsidiary of any Indebtedness or other obligations of the Company
or any Subsidiary that was permitted to be incurred pursuant to this Indenture; 
  
 (f) Interest Swap and Hedging Obligations incurred by the Company and the Subsidiaries that are incurred for the purpose of fixing or hedging interest rate, currency or commodity risk with respect to any fixed or
floating rate Indebtedness that is permitted by this Indenture to be outstanding or any receivable, liability or contractual provision the payment in respect of which is determined by reference to a foreign currency or commodity; provided,
that the notional amount of any such Interest Swap and Hedging Obligation does not exceed the principal amount of any other Indebtedness to which such Interest Swap and Hedging Obligation relates; 
  
 (g) Indebtedness incurred by the Company and the Subsidiaries arising from
the honoring by a bank or other financial institution of a check, draft or similar instrument inadvertently drawn against insufficient funds, so long as such Indebtedness is covered within ten Business Days; 
  
 (h) Indebtedness incurred by the Company and the Subsidiaries arising from
agreements providing for indemnification, adjustment of purchase price or similar obligations, in each case, incurred in connection with the acquisition or disposition of any business, assets or a Subsidiary or Unrestricted Subsidiary of the Company
in accordance with the terms of this Indenture, other than guarantees of Indebtedness incurred by any Person acquiring all or any portion of such business, assets or Subsidiary or Unrestricted Subsidiary for the purpose of financing such
acquisition; 
  
 (i) Indebtedness incurred by the Company and the
Subsidiaries supported by a letter of credit issued pursuant to the Credit Agreement, in a principal amount not in excess of the stated amount of such letter of credit; provided, such letter of credit was permitted to be issued under Section
4.7 hereof; 
  
 (j) Indebtedness or Disqualified Capital Stock of
Persons that are acquired by the Company or any Subsidiary or merged into a Subsidiary in accordance with the terms of this Indenture; provided that such Indebtedness or Disqualified Capital Stock is not incurred in contemplation of such acquisition
or merger; provided, further, that after giving effect to such acquisition, either the Company would be permitted to incur at least $1.00 of Indebtedness pursuant to the Debt Incurrence Ratio set froth in Section 4.7 hereof and
provided, further, that the amount of such Indebtedness of all Foreign Subsidiaries incurred pursuant to this clause (j) shall not exceed $10,000,000 in the aggregate at any time outstanding; and 
  
 (k) Indebtedness incurred by the Company and the Subsidiaries, the net
proceeds of which are used to satisfy, defease or discharge the Notes as provided under Article VIII hereof. 
  
 “Permitted Investment” means: 
  
 (a) any Investment in any of the Notes; 
  
 (b) any Investment in cash or Cash Equivalents; 
  

 18 

 (c) any Investment by the Company or any Subsidiary: (i) in the Company (excluding payments to any
securityholder of the Company by a Subsidiary of the Company), (ii) in any Subsidiary of the Company, or (iii) in any Person if as a result of such Investment such Person becomes a Subsidiary of the Company or such Person is merged with or into the
Company or a Subsidiary of the Company; 
  
 (d) other Investments
in any Person or Persons, provided, that after giving pro forma effect to each such Investment, the aggregate amount of all such Investments made on and after the Issue Date pursuant to this clause (d) that are outstanding (after
giving effect to any such Investments that are returned to the Company or the Subsidiary that made such prior Investment, without restriction, in cash on or prior to the date of any such calculation, but only up to the amount of the Investment made
under this clause (d) in such Person), at any time does not in the aggregate exceed $15,000,000 (measured by the value attributed to the Investment at the time made or returned, as applicable); 
  
 (e) any Investment in any Person solely in exchange for Qualified Capital
Stock or the Net Cash Proceeds of any substantially concurrent sale of the Company’s Qualified Capital Stock; 
  
 (f) any Investment made as a result of the receipt of non-cash consideration from an Asset Sale that was made pursuant to and in compliance with Section
4.12 hereof; 
  
 (g) Investments represented by Interest Swap and
Hedging Obligations; 
  
 (h) Investments in FTD-member florists,
customers and suppliers that either (A) generate accounts or notes receivable, or (B) are accepted in settlement of bona fide disputes; 
  
 (i) Investments in the form of advances to employees for travel, relocation and like expenses, in each case, consistent with the Company’s past
practices; 
  
 (j) Investments received in settlement of
obligations or pursuant to any plan of reorganization or similar arrangement upon the bankruptcy, insolvency, reorganization, recapitalization or liquidation of any Person or the good faith settlement of debts of, or litigation or disputes with, any
Person that is not an Affiliate; and 
  
 (k) Investments of the
Company and FTD existing on the Issue Date. 
  
 “Permitted
Lien” means: 
  
 (a) Liens existing on the Issue Date;

  
 (b) Liens imposed by governmental authorities for taxes,
assessments or other charges not yet subject to penalty or which are being contested in good faith and by appropriate proceedings, if adequate reserves with respect thereto are maintained on the books of the Company in accordance with GAAP;

  
 (c) statutory Liens of carriers, warehousemen, mechanics,
material men, landlords, repairmen or other like Liens arising by operation of law in the ordinary course of business provided that (1) the underlying obligations are not overdue for a period of more than 30 days, or (2) such Liens are being
contested in good faith and by appropriate proceedings and adequate reserves with respect thereto are maintained on the books of the Company in accordance with GAAP; 
  

 19 

 (d) Liens securing the performance of bids, trade contracts (other than borrowed money), leases,
statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business; 
  
 (e) easements, rights-of-way, zoning, similar restrictions and other similar encumbrances or title defects which, singly or in the aggregate, do not in
any case materially detract from the value of the property, subject thereto (as such property is used by the Company or any of its Subsidiaries) or interfere with the ordinary conduct of the business of the Company or any of its Subsidiaries;

  
 (f) Liens arising by operation of law in connection with
judgments, only to the extent, for an amount and for a period not resulting in an Event of Default with respect thereto; 
  
 (g) pledges or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other types of
social security legislation; 
  
 (h) Liens securing the Notes;

  
 (i) Liens securing Indebtedness of a Person existing at the
time such Person becomes a Subsidiary or is merged with or into the Company or a Subsidiary or Liens securing Indebtedness incurred in connection with an acquisition, provided, that such Liens were in existence prior to the date of such
acquisition, merger or consolidation, were not incurred in anticipation thereof, and do not extend to any other assets; 
  
 (j) Liens arising from Purchase Money Indebtedness permitted to be incurred pursuant to Section 4.7 hereof; provided, such Liens relate solely to
the property which is subject to such Purchase Money Indebtedness; 
  
 (k) leases or subleases granted to other Persons in the ordinary course of business not materially interfering with the conduct of the business of the Company or any of its Subsidiaries or materially detracting from the value of the
relative assets of the Company or any Subsidiary; 
  
 (l) Liens
arising from precautionary Uniform Commercial Code financing statement filings regarding operating leases entered into by the Company or any of its Subsidiaries in the ordinary course of business; 
  
 (m) Liens securing Refinancing Indebtedness incurred to refinance any
Indebtedness that was previously so secured in a manner no more adverse to the Holders than the terms of the Liens securing such refinanced Indebtedness, and provided that the Indebtedness secured is not increased and the Lien is not extended
to any additional assets or property that would not have been security for the Indebtedness refinanced; 
  
 (n) Liens securing Senior Indebtedness (including under the Credit Agreement) incurred in accordance with the terms of Section 4.7 hereof; 
  

 20 

 (o) Liens securing Indebtedness of any Foreign Subsidiary incurred in accordance with the provisions of
Section 4.7 hereof; and 
  
 (p) Liens securing Interest Swap and
Hedging Obligations. 
  
 “Person” or
“person” means (unless stated otherwise) any corporation, individual, limited liability company, joint stock company, joint venture, partnership, unincorporated association, governmental regulatory entity, country, state or
political subdivision thereof, trust, municipality or other entity. 
  
 “Pledged Securities” mean United States Treasury securities deposited into the Secured Proceeds Account in accordance with the Security Agreement. 
  
 “Preferred Stock” means any Equity Interest of any class or classes of a Person (however designated) which
is preferred as to payments of dividends, or as to distributions upon any liquidation or dissolution, over Equity Interests of any other class of such Person. 
  

“Principals” means Leonard Green & Partners, L.P., a Delaware limited partnership, and Green Equity Investors IV, L.P., a Delaware
limited partnership. 
  
 “Private Placement
Legend” means the legend set forth in Section 2.6(g)(i) hereof to be placed on all Notes issued under this Indenture except where specifically stated otherwise by the provisions of this Indenture. 
  
 “Public Equity Offering” an underwritten public offering
pursuant to a registration statement filed with the Commission in accordance with the Securities Act of 1933, as amended, of (1) Qualified Capital Stock of the Company or (2) Qualified Capital Stock of any Parent Entity, to the extent that the cash
proceeds therefrom are used as a Capital Contribution to the Company. 
  
 “Purchase Money Indebtedness” of any Person means any Indebtedness of such Person to any seller or other Person incurred solely to finance the acquisition (including in the case of a Capitalized Lease Obligation, the
lease), construction, installation or improvement of any after acquired real or personal tangible property which is incurred within 180 days following with such acquisition, construction, installation or improvement and is secured only by the assets
so financed. For the avoidance of doubt, it is understood and agreed that Purchase Money Indebtedness may be incurred under the Credit Agreement. 
  
 “QIB” means a “qualified institutional buyer” as defined in Rule 144A. 
  
 “Qualified Capital Stock” means any Capital Stock of the
Company that is not Disqualified Capital Stock. 
  
 “Qualified Equity Offering” means any public or private sale of (i) Qualified Capital Stock by the Company other than to an Affiliate or (ii) Capital Stock by the Parent Entity where the Net Cash Proceeds of such sale are
contributed to the Company as a Capital Contribution substantially concurrently therewith, and in each case, other than public offerings registered on a Form S-8. 
  

 21 

 “Qualified Exchange” means: 
  
 (1) any legal defeasance, redemption, retirement, repurchase or other
acquisition of Capital Stock, or Indebtedness of the Company with the Net Cash Proceeds received by the Company made within 60 days of the sale of its Qualified Capital Stock (other than to a Subsidiary) or, to the extent used to retire Indebtedness
(other than Disqualified Capital Stock) of the Company issued on or after the Issue Date, Refinancing Indebtedness of the Company; 
  
 (2) any issuance of Qualified Capital Stock of the Company in exchange for, or the proceeds of which are used to purchase, any Capital Stock or
Indebtedness of the Company; or 
  
 (3) any issuance of
Refinancing Indebtedness (including Disqualified Capital Stock) of the Company in exchange for, or the proceeds of which are used to purchase, Indebtedness (including Disqualified Capital Stock) of the Company. 
  
 “Record Date” means a Record Date specified in the Notes,
whether or not such date is a Business Day. 
  
 “Recourse
Indebtedness” means Indebtedness as to which either the Company or any of its Subsidiaries (1) provides credit support of any kind (including any undertaking, agreement or instrument that would constitute Indebtedness), (2) is directly or
indirectly liable (as a guarantor or otherwise), or (3) constitutes the lender. 
  
 “Reference Period” with regard to any Person means the four full fiscal quarters (or such lesser period during which such Person has been in existence) ended immediately preceding any date upon which
any determination is to be made pursuant to the terms of the Notes or this Indenture. 
  
 “Refinancing Indebtedness” means Indebtedness (including Disqualified Capital Stock) (a) issued in exchange for, or the proceeds from the issuance and sale of which are used within 60 days to repay,
redeem, defease, refund, refinance, discharge or otherwise retire for value, in whole or in part, or (b) constituting an amendment, modification or supplement to, or a deferral or renewal of ((a) and (b) above are, collectively, a
“Refinancing”), any Indebtedness (including the Notes and Disqualified Capital Stock) in a principal amount or, in the case of Disqualified Capital Stock, liquidation preference, not to exceed (after deduction of reasonable and customary
fees and expenses incurred in connection with the Refinancing plus the amount of any premium paid in connection with such Refinancing) the lesser of (1) the principal amount or, in the case of Disqualified Capital Stock, liquidation preference, of
the Indebtedness (including Disqualified Capital Stock) so Refinanced and (2) if such Indebtedness being Refinanced was issued with an original issue discount, the accreted value thereof (as determined in accordance with GAAP) at the time of such
Refinancing; provided, that (A) such Refinancing Indebtedness shall only be used to refinance outstanding Indebtedness (including Disqualified Capital Stock) of such Person issuing such Refinancing Indebtedness, (B) such Refinancing
Indebtedness shall (x) not have an Average Life shorter than the Indebtedness (including Disqualified Capital Stock) to be so refinanced at the time of such Refinancing and (y) in all respects, be no less contractually subordinated or junior, if
applicable, to the rights of Holders of the Notes than was the Indebtedness (including Disqualified Capital Stock) to be refinanced, (C) such Refinancing Indebtedness shall have a final stated maturity or redemption date, as applicable, no earlier
than the final stated maturity or redemption date, as applicable, of the Indebtedness (including Disqualified Capital Stock) to be so refinanced or, if sooner, 91 days after the Stated Maturity of the Notes, and (D) such Refinancing Indebtedness
shall be secured (if secured) in a manner no 
  

 22 

 more adverse to the Holders of the Notes than the terms of the Liens (if any) securing such refinanced Indebtedness,
including, without limitation, the amount of Indebtedness secured shall not be increased. For the avoidance of doubt, Indebtedness (other than Disqualified Capital Stock), shall not constitute “Refinancing Indebtedness” in connection with
a Refinancing of Disqualified Capital Stock. 
  
 “Reg S
Permanent Global Note” means one or more permanent Global Notes bearing the Private Placement Legend, that will be issued in an aggregate amount of denominations equal in total to the outstanding principal amount of the Reg S Temporary
Global Note upon expiration of the Distribution Compliance Period. 
  
 “Reg S Temporary Global Note” means one or more temporary Global Notes bearing the Private Placement Legend and the Reg S Temporary Global Note Legend, issued in an aggregate amount of denominations equal in total to the
outstanding principal amount of the Notes initially sold in reliance on Rule 903 of Regulation S. 
  
 “Reg S Temporary Global Note Legend” means the legend set forth in Section 2.6(g)(iii) hereof, which is required to be placed on all Reg
S Temporary Global Notes issued under this Indenture. 
  
 “Registration Rights Agreement” means the Registration Rights Agreement, dated as of Issue Date, by and among the Company and Credit Suisse First Boston LLC on behalf of the Initial Purchasers, as such agreement may be
amended, modified or supplemented from time to time. 
  
 “Regulation S” means Regulation S promulgated under the Securities Act, as it may be amended from time to time, and any successor provision thereto. 
  
 “Regulation S Global Note” means a Reg S Temporary Global Note or a Reg S Permanent Global Note, as the
case may be. 
  
 “Related Business” means the
business conducted (or proposed to be conducted) by the Company and its Subsidiaries as of the Issue Date and any and all businesses that in the good faith judgment of the Board of Directors are materially related, ancillary or complementary
businesses. 
  
 “Related Business Asset” means
assets (except in connection with the acquisition of a Subsidiary in a Related Business that becomes a Guarantor, other than Notes, bonds, obligations and securities) and capital expenditures, in each case that, in the good faith reasonable judgment
of the Board of Directors, will immediately constitute, be a part of, or be used in, a Related Business of the Company or a Subsidiary. 
  
 “Related Financing Transactions” means the financing transactions in connection with the consummation of the Merger, substantially as
described in the Offering Circular. 
  
 “Restricted
Definitive Note” means one or more Definitive Notes bearing the Private Placement Legend, issued under this Indenture. 
  
 “Restricted Global Note” means one or more Global Notes bearing the Private Placement Legend, issued under this Indenture;
provided, that in no case shall an Exchange Note issued in accordance with this Indenture and the terms of the Registration Rights Agreement be a Restricted Global Note. 
  

 23 

 “Restricted Investment” means, in one or a series of related transactions, any
Investment, other than other Permitted Investments. 
  
 “Restricted Payment” means, with respect to any Person: 
  
 (a) the declaration or payment of any dividend or other distribution in respect of Equity Interests of such Person or any parent of such Person; 
  
 (b) any payment (except to the extent made with Qualified Capital Stock) on account of the purchase, redemption or other
acquisition or retirement for value of Equity Interests of such Person or any parent of such Person; 
  
 (c) other than with the proceeds from the substantially concurrent sale of, or in exchange for, Refinancing Indebtedness, any purchase, redemption, or
other acquisition or retirement for value of, any payment in respect of any amendment of the terms of or any defeasance of, any Subordinated Indebtedness (other than the Notes), directly or indirectly, by such Person or a Subsidiary of such Person
prior to the scheduled maturity, any scheduled repayment of principal, or scheduled sinking fund payment, as the case may be, of such Indebtedness; and 
  
 (d) any Restricted Investment by such Person, 
  
 provided, however, that the term “Restricted Payment” does not include (1) any dividend, distribution or other payment on or with respect to
Equity Interests of an issuer to the extent payable solely in shares of Qualified Capital Stock of such issuer, (2) any dividend, distribution or other payment to the Company, or to any Subsidiary of the Company, by the Company or any of its
Subsidiaries and any Investment in any Subsidiary by the Company or any Subsidiary and any Investment in the Company by any Subsidiary of the Company so long as the Company receives the proceeds of such Investment, (3) the payment of the Merger
Consideration and Related Costs or (4) any dividend, distribution or other payment with respect to the settlement of the FTD.COM securities litigation. 
  
 “Rule 144” means Rule 144 promulgated under the Securities Act, as it may be amended from time to time, and any successor provision
thereto. 
  
 “Rule 144A” means Rule 144A
promulgated under the Securities Act, as it may be amended from time to time, and any successor provision thereto. 
  
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations of the Commission thereunder. 
  
 “Securities Intermediary” means U.S. Bank National
Association, as securities intermediary under the Security Agreement. 
  
 “Security Agreement” means the Security and Control Agreement dated as of the Issue Date, by and among the Company, the Trustee and the Securities Intermediary. 
  

 24 

 “Senior Indebtedness” of the Company or any Guarantor means Indebtedness of the Company
or such Guarantor arising under the Credit Agreement (including any fees, costs and other monetary obligation in respect of the Credit Agreement, and interest, whether or not allowable, accruing on Indebtedness incurred pursuant to the Credit
Agreement after the filing of a petition initiating any proceeding under any bankruptcy, insolvency or similar law) or that, by the terms of the instrument creating or evidencing such Indebtedness, is expressly designated as Senior Indebtedness and
made senior in right of payment to the Notes or the applicable Guarantee and all obligations for principal, premium, interest, penalties, fees, indemnifications, expenses, reimbursements, damages and other amounts payable pursuant to the
documentation governing or relating to such Indebtedness; provided, that in no event shall Senior Indebtedness include (a) Indebtedness to any Subsidiary of the Company or any officer, director or employee of the Company or any Subsidiary of
the Company, (b) Indebtedness incurred in violation of the terms of this Indenture; provided, that Indebtedness under the Credit Agreement will not cease to be Senior Indebtedness as a result of this clause (b) if the lenders thereunder
obtained a certificate from an executive officer of the Company on the date such Indebtedness was incurred certifying that the incurrence of such Indebtedness was not prohibited by this Indenture, (c) Indebtedness to trade creditors, (d)
Disqualified Capital Stock, and (e) any liability for taxes owed or owing by the Company or such Guarantor. 
  
 “Shelf Registration Statement” shall have the meaning set forth in the Registration Rights Agreement. 
  
 “Significant Subsidiary” means any Subsidiary or group of
Subsidiaries that would constitute a “significant subsidiary” as defined in Regulation S-X of the Securities Act, as in effect on the Issue Date. 
  
 “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, and its successors. 
  
 “Special Record Date” means, for payment of any Defaulted
Interest, a date fixed by the Paying Agent pursuant to Section 2.12 hereof. 
  
 “Stated Maturity,” when used with respect to any Note, means February 15, 2014. 
  
 “Subordinated Indebtedness” means Indebtedness of the Company or a Guarantor that is subordinated in right of payment by its terms or the
terms of any document or instrument relating thereto (“contractually”) to the Notes or such Guarantee, as applicable, in any respect. 
  
 “Subsidiary,” with respect to any Person, means (1) a corporation a majority of whose Voting Equity Interests, under ordinary
circumstances, to elect directors is at the time, directly or indirectly, owned by such Person, by such Person and one or more Subsidiaries of such Person or by one or more Subsidiaries of such Person, and (2) any other Person (other than a
corporation) in which such Person, one or more Subsidiaries of such Person, or such Person and one or more Subsidiaries of such Person, directly or indirectly, at the date of determination thereof has a majority of the Voting Equity Interests, or
(3) a partnership in which such Person or a Subsidiary of such Person is, at the time, a general partner and in which such Person, directly or indirectly, at the date of determination thereof has a majority ownership interest. Notwithstanding the
foregoing, an Unrestricted Subsidiary shall not be a Subsidiary of the Company or of any Subsidiary of the Company. Unless the context requires otherwise, Subsidiary means each direct and indirect Subsidiary of the Company. 
  

 25 

 “TIA” means the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in
effect on the date on which this Indenture is qualified under the TIA. 
  
 “Transfer Restricted Notes” means Global Notes and Definitive Notes that bear or are required to bear the Private Placement Legend, issued under this Indenture. 
  
 “Treasury Rate” means the yield to maturity at the time of computation of U.S. Treasury securities with a
constant maturity (as compiled and published in the most recent Federal Reserve Release H.15(519) which has become publicly available at least two Business Days prior to the Change of Control Redemption Date (or, if such Statistical Release is no
longer published, any publicly available source or similar market data)) closest to the period from the Change of Control Redemption Date to February 15, 2009 provided, however; that if the period from the Change of Control Redemption
Date to February 15, 2009, is not equal to the constant maturity of a U.S. Treasury security for which a weekly average yield is given, the Treasury Rate shall be obtained by linear interpolation (calculated to the nearest one-twelfth of one year)
from the weekly average yields of U.S. Treasury securities for which such yields are given, except that, if the period from the Change of Control Redemption Date to February 15, 2009 is less than one year, the weekly average yield on actually traded
U.S. Treasury securities adjusted to a constant maturity of one year shall be used. 
  
 “Unrestricted Definitive Note” means one or more Definitive Notes that do not bear and are not required to bear the Private Placement Legend, issued under this Indenture. 
  
 “Unrestricted Global Note” means one or more permanent
Global Notes representing a series of Notes that does not bear and is not required to bear the Private Placement Legend, issued under this Indenture. 
  
 “Unrestricted Subsidiary” means any subsidiary of the Company that does not directly, indirectly or beneficially own any Capital Stock
of, and Subordinated Indebtedness of, or own or hold any Lien on any property of, the Company or any other Subsidiary of the Company and that, at the time of determination, shall be an Unrestricted Subsidiary (as designated by the Board of
Directors); provided, that such Subsidiary at the time of such designation (a) has no Recourse Indebtedness; (b) is not party to any agreement, contract, arrangement or understanding with the Company or any Subsidiary of the Company unless
the terms of any such agreement, contract, arrangement or understanding are no less favorable to the Company or such Subsidiary than those that might be obtained at the time from Persons who are not Affiliates of the Company (unless in compliance
with Section 4.11 hereof); (c) is a Person with respect to which neither the Company nor any of its Subsidiaries has any direct or indirect obligation (x) to subscribe for additional Equity Interests or (y) to maintain or preserve such Person’s
financial condition or to cause such Person to achieve any specified levels of operating results; and (d) has not guaranteed or otherwise directly or indirectly provided credit support for any Indebtedness of the Company or any of its Subsidiaries.
The Board of Directors may designate any Unrestricted Subsidiary to be a Subsidiary, provided, that (1) no Default or Event of Default is existing or will occur as a consequence thereof and (2) immediately after giving effect to such
designation, on a pro forma basis, the Company could incur at least $1.00 of Indebtedness pursuant to the Debt Incurrence Ratio set forth in Section 4.7 hereof. Each such designation shall be evidenced by filing with the Trustee a certified
copy of the resolution giving effect to such designation and an Officers’ Certificate certifying that such designation complied with the foregoing conditions. 
  

 26 

 “U.S. Government Obligations” means direct non-callable obligations of, or noncallable
obligations guaranteed by, the United States of America for the payment of which obligation or guarantee the full faith and credit of the United States of America is pledged. 
  
 “U.S. Person” means a U.S. person as defined in Rule 902(o) under the Securities Act. 
  
 “Voting Equity Interests” means Equity Interests which at
the time are entitled to vote in the election of, as applicable, directors, members or partners generally. 
  
 “Wholly Owned Subsidiary” means a Subsidiary all the Equity Interests of which (other than directors’ qualifying shares) are owned
by the Company or one or more Wholly Owned Subsidiaries of the Company or a combination thereof. 
  
 SECTION 1.2 OTHER DEFINITIONS 
  

			
	 Term

	  	 Defined in Section

	 “Acceleration Notice”
	  	6.2(a)
	 “Acceptable Terms”
	  	3.8(a)
	 “Affiliate Transaction”
	  	4.11
	 “Asset Sale”
	  	4.12
	 “Asset Sale Amount”
	  	4.12
	 “Asset Sale Offer”
	  	4.12
	 “Asset Sale Offer Amount”
	  	4.12
	 “Asset Sale Offer Price”
	  	4.12
	 “Asset Sale Offer Period”
	  	4.12
	 “Authentication Order”
	  	2.2
	 “Benefited Party”
	  	10.1
	 “Change of Control Offer”
	  	4.13
	 “Change of Control Offer Period”
	  	4.13
	 “Change of Control Purchase Date”
	  	4.13
	 “Change of Control Purchase Price”
	  	4.13
	 “Change of Control Redemption Date”
	  	3.7(c)
	 “Company”
	  	Preamble
	 “Company Affiliated Group”
	  	4.9(k)
	 “Covenant Defeasance”
	  	8.3
	 “Debt Incurrence Ratio”
	  	4.7
	 “Defaulted Interest”
	  	2.12
	 “Discharge”
	  	Definition of “Consolidated Coverage Ratio”
	 “DTC”
	  	2.3
	 “Excess Proceeds”
	  	4.12

  

 27 

			
	 “FTD”
	  	Preamble
	 “Guarantee Obligations”
	  	10.1
	 “incur” or “incurrence”
	  	4.7
	 “Incurrence Date”
	  	4.7
	 “Investment Company Act”
	  	4.15
	 “Legal Defeasance”
	  	8.2
	 “Mandatory Redemption”
	  	3.8(a)
	 “Mandatory Redemption Date”
	  	3.8(a)
	 “Mandatory Redemption Price”
	  	3.8(a)
	 “Merger”
	  	Preamble
	 “Merger Agreement”
	  	Preamble
	 “Notes”
	  	Preamble
	 “Paying Agent”
	  	2.3
	 “Payment Blockage Period”
	  	11.2(b)
	 “Payment Default”
	  	11.2(a)
	 “Payment Blockage Notice”
	  	11.2(b)
	 “Redemption Date”
	  	3.7(a)
	 “Registrar”
	  	2.3
	 “Refinancing”
	  	Definition of “Refinancing Indebtedness”
	 “Secured Proceeds Account”
	  	3.8
	 “Series A Notes”
	  	Preamble
	 “Series B Notes”
	  	Preamble
	 “Tax Payment”
	  	4.9(k)
	 “Transaction Date”
	  	Definition of “Consolidated Coverage Ratio”
	 “Triggering Event”
	  	3.8(a)
	 “Trustee”
	  	Preamble

  
 SECTION 1.3 INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT 
  
 Whenever this Indenture refers to a provision of the TIA, such provision is incorporated by reference in and made a part of
this Indenture. 
  
 The following TIA terms used in this Indenture
have the following meanings: 
  
 “Commission”
means the Securities and Exchange Commission; 
  
 “obligor” on the Notes means the Company, each Guarantor and any successor obligor on the Notes. 
  
 All other terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by Commission rule under the
TIA have the meanings so assigned to them. 
  

 28 

 SECTION 1.4 RULES OF CONSTRUCTION

  
 Unless the context otherwise requires: 
  
 (1) a term has the meaning assigned to it; 
  
 (2) an accounting term not otherwise defined has the meaning
assigned to it in accordance with GAAP; 
  
 (3)
“or” is not exclusive; 
  
 (4) words in
the singular include the plural, and in the plural include the singular; 
  
 (5) provisions apply to successive events and transactions; 
  
 (6) “herein,” “hereof” and other words of similar import refer to this Indenture as a whole and not to any particular
Article, Section or other subdivision; 
  
 (7)
references to sections of or rules under the Securities Act and the Exchange Act shall be deemed to include substitute, replacement of successor sections or rules adopted by the Commission from time to time; 
  
 (8) calculation of amounts for purposes of any provision of
this Indenture shall be without duplication of amounts otherwise included in such calculation; and 
  
 (9) any amount requiring calculation of a U.S. dollar-equivalent of a currency other than U.S. dollars shall be based on the exchange rate
in effect at the time of the transaction or calculation, as applicable, without regard to subsequent fluctuations in such exchange rate. 
  
 ARTICLE II 
 THE NOTES 

 
 SECTION 2.1 FORM AND
DATING 
  
 (a) General. The Notes and the
Trustee’s certificate of authentication shall be substantially in the form of Exhibit A hereto. The Notes may have notations, legends or endorsements required by law, stock exchange rule or usage. Each Note shall be dated the date of its
authentication. The Notes shall be in denominations of $1,000 and integral multiples thereof. 
  
 The terms and provisions contained in the Notes shall constitute, and are hereby expressly made, a part of this Indenture and the Company, the Guarantors and the Trustee, by their execution and delivery of this
Indenture, expressly agree to such terms and provisions and to be bound thereby. However, to the extent any provision of any Note conflicts with the express provisions of this Indenture, the provisions of this Indenture shall govern and be
controlling. 
  
 (b) Global Notes. Notes issued in global
form shall be substantially in the form of Exhibit A attached hereto (including the Global Note Legend thereon and the 
  

 29 

 “Schedule of Exchanges of Interests in the Global Note” attached thereto). Notes issued in definitive form
shall be substantially in the form of Exhibit A attached hereto (but without the Global Note Legend thereon and without the “Schedule of Exchanges of Interests in the Global Note” attached thereto). Each Global Note shall represent such of
the outstanding Notes as shall be specified therein and each shall provide that it shall represent the aggregate principal amount of outstanding Notes from time to time endorsed thereon and that the aggregate principal amount of outstanding Notes
represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions. Any endorsement of a Global Note to reflect the amount of any increase or decrease in the aggregate principal amount of
outstanding Notes represented thereby shall be made by the Trustee or the Notes Custodian, at the direction of the Trustee, in accordance with instructions given by the Holder thereof as required by Section 2.6 hereof. 
  
 (c) Euroclear and Clearstream Procedures Applicable. The provisions of
the “Operating Procedures of the Euroclear System” and “Terms and Conditions Governing Use of Euroclear” and the “General Terms and Conditions of Clearstream Banking Luxembourg” and “Customer Handbook” of
Clearstream in effect at the relevant time shall be applicable to transfers of beneficial interests in the Regulation S Global Notes that are held by Participants through Euroclear or Clearstream. 
  
 SECTION 2.2 EXECUTION AND
AUTHENTICATION 
  
 An Officer shall sign the Notes
for the Company by manual or facsimile signature. In the case of Definitive Notes, such signatures may be imprinted or otherwise reproduced on such Notes. If an Officer whose signature is on a Note no longer holds that office at the time a Note is
authenticated, the Note shall nevertheless be valid. A Note shall not be valid until authenticated by the manual signature of the Trustee. The signature shall be conclusive evidence that the Note has been authenticated under this Indenture. The
Trustee shall, upon a written order of the Company signed by an Officer (an “Authentication Order”), authenticate Notes for issuance up to the aggregate principal amount stated in such Authentication Order; provided that Notes
authenticated for issuance on the Issue Date shall not exceed $175,000,000 in aggregate principal amount. The Trustee may appoint an authenticating agent acceptable to the Company to authenticate Notes. An authenticating agent may authenticate Notes
whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent has the same rights as an Agent to deal with Holders or an Affiliate of the Company.

  
 SECTION 2.3 REGISTRAR,
PAYING AGENT AND DEPOSITARY 
  
 The Company shall maintain an office or agency in the Borough of Manhattan, The City of New York, where Notes may be presented for registration of transfer or for exchange (“Registrar”) and an office or
agency where Notes may be presented for payment (“Paying Agent”). The Registrar shall keep a register of the Notes and of their transfer and exchange. The Company may appoint one or more co-registrars and one or more additional paying
agents. The term “Registrar” includes any co-registrar and the term “Paying Agent” includes any additional paying agent. The Company may change any Paying Agent or Registrar without notice to any Holder. The Company shall notify
the Trustee in writing of the name and address of any Agent not a party to this Indenture. If the Company fails to appoint or maintain another entity as Registrar or Paying Agent, the Trustee shall act as such. The Company or any of its Subsidiaries
may act as Paying Agent or Registrar. The Company initially appoints The Depository Trust Company (“DTC”) to act as Depositary with respect to the Global Notes. The Company initially appoints the Trustee to act as the Registrar and Paying
Agent and to act as Notes Custodian with respect to the Global Notes. 
  

 30 

 SECTION 2.4 PAYING AGENT TO
HOLD MONEY IN TRUST 
  
 The Company shall require each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust for the benefit of Holders or the Trustee all money held by the Paying Agent for the
payment of principal, premium or Liquidated Damages, if any, or interest on the Notes, and will notify the Trustee of any default by the Company in making any such payment. While any such default continues, the Trustee may require a Paying Agent to
pay all money held by it to the Trustee. The Company at any time may require a Paying Agent to pay all money held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the Company or a Subsidiary) shall have no
further liability for the money. If the Company or a Subsidiary acts as Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of the Holders all money held by it as Paying Agent. Upon any bankruptcy or reorganization
proceedings relating to the Company, the Trustee shall serve as Paying Agent for the Notes. 
  
 SECTION 2.5 HOLDER LISTS 
  
 The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the
names and addresses of all Holders and shall otherwise comply with TIA § 312(a). If the Trustee is not the Registrar, the Company shall furnish, or shall cause the Registrar (if other than the Company) to furnish, to the Trustee at least seven
Business Days before each Interest Payment Date and at such other times as the Trustee may request in writing, a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of the Holders of Notes and the
Company shall otherwise comply with TIA § 312(a). 
  
 SECTION 2.6 TRANSFER AND EXCHANGE 
  
 (a) Transfer and Exchange of Global Notes. A Global Note may not be transferred as a whole except by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to the Depositary or to another
nominee of the Depositary, or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary. All Global Notes will be exchanged by the Company for Definitive Notes if (i) the Company delivers to the
Trustee notice from the Depositary that (x) the Depositary is unwilling or unable to continue to act as Depositary for the Global Notes and the Company thereupon fails to appoint a successor Depositary within 120 days or (y) the Depositary is no
longer a clearing agency registered under the Exchange Act, (ii) the Company in its sole discretion determines that the Global Notes (in whole but not in part) should be exchanged for Definitive Notes and delivers a written notice to such effect to
the Trustee or (iii) upon request of the Trustee or Holders of a majority of the aggregate principal amount of outstanding Notes if there shall have occurred and be continuing a Default or Event of Default with respect to the Notes; provided that in
no event shall the Reg S Temporary Global Note be exchanged by the Company for Definitive Notes prior to (x) the expiration of the Distribution Compliance Period and (y) the receipt by the Registrar of any certificate identified by the Company and
its counsel to be required pursuant to Rule 903 or Rule 904 under the Securities Act. Upon the occurrence of any of the preceding events in (i), (ii) or (iii) above, Definitive Notes shall be issued in such names as the Depositary shall instruct the
Trustee. Global Notes also may be exchanged or replaced, in whole or in part, as provided in Sections 2.7 and 2.10 hereof. Every Note authenticated and delivered in exchange for, or in lieu 
  

 31 

 of, a Global Note or any portion thereof, pursuant to this Section 2.6 or Section 2.7 or 2.10 hereof, shall be
authenticated and delivered in the form of, and shall be, a Global Note. A Global Note may not be exchanged for another Note other than as provided in this Section 2.6(a), however, beneficial interests in a Global Note may be transferred and
exchanged as provided in Section 2.6(b), (c) or (f) hereof. 
  
 (b) Transfer and Exchange of Beneficial Interests in the Global Notes. The transfer and exchange of beneficial interests in the Global Notes shall be effected through the Depositary, in accordance with the provisions of this
Indenture and the Applicable Procedures. Beneficial interests in the Restricted Global Notes shall be subject to restrictions on transfer comparable to those set forth herein to the extent required by the Securities Act. Transfers of beneficial
interests in the Global Notes also shall require compliance with either subparagraph (i) or (ii) below, as applicable, as well as one or more of the other following subparagraphs, as applicable: 
  
 (i) Transfer of Beneficial Interests in the Same Global Note.
Beneficial interests in any Restricted Global Note may be transferred to Persons who take delivery thereof in the form of a beneficial interest in the same Restricted Global Note in accordance with the transfer restrictions set forth in the Private
Placement Legend; provided, however, that prior to the expiration of the Distribution Compliance Period, transfers of beneficial interests in the Reg S Temporary Global Note may not be made to a U.S. Person or for the account or benefit of a U.S.
Person (other than an Initial Purchaser). Beneficial interests in any Unrestricted Global Note may be transferred to Persons who take delivery thereof in the form of a beneficial interest in an Unrestricted Global Note. No written orders or
instructions shall be required to be delivered to the Registrar to effect the transfers described in this Section 2.6(b)(i). 
  
 (ii) All Other Transfers and Exchanges of Beneficial Interests in Global Notes. In connection with all transfers and exchanges of beneficial
interests that are not subject to Section 2.6(b)(i) above, the transferor of such beneficial interest must deliver to the Registrar either (A) both (1) a written order from a Participant or an Indirect Participant given to the Depositary in
accordance with the Applicable Procedures directing the Depositary to credit or cause to be credited a beneficial interest in another Global Note in an amount equal to the beneficial interest to be transferred or exchanged and (2) instructions given
in accordance with the Applicable Procedures containing information regarding the Participant account to be credited with such increase or (B) both (1) a written order from a Participant or an Indirect Participant given to the Depositary in
accordance with the Applicable Procedures directing the Depositary to cause to be issued a Definitive Note in an amount equal to the beneficial interest to be transferred or exchanged and (2) instructions given by the Depositary to the Registrar
containing information regarding the Person in whose name such Definitive Note shall be registered to effect the transfer or exchange referred to in clause (b)(i) above; provided, that in no event shall Definitive Notes be issued upon the transfer
or exchange of beneficial interests in the Reg S Temporary Global Note prior to (x) the expiration of the Distribution Compliance Period and (y) the receipt by the Registrar of any certificates identified by the Company or its counsel to be required
pursuant to Rule 903 and Rule 904 under the Securities Act. Upon consummation of an Exchange Offer by the Company in accordance with Section 2.6(f) hereof, the requirements of this Section 2.6(b)(ii) shall be deemed to have been satisfied upon
receipt by the Registrar of the instructions contained in the Letter of Transmittal delivered by the Holder of such beneficial interests in the Restricted Global Notes. Upon satisfaction of all of the requirements for transfer or exchange of
beneficial interests in Global Notes contained in this Indenture and the Notes or otherwise applicable under the Securities Act, the Trustee shall adjust the principal amount of the relevant Global Note(s) pursuant to Section 2.6(h) hereof.

  

 32 

 (iii) Transfer of Beneficial Interests to Another Restricted Global Note. A beneficial interest in
any Restricted Global Note may be transferred to a Person who takes delivery thereof in the form of a beneficial interest in another Restricted Global Note if the transfer complies with the requirements of Section 2.6(b)(ii) above and the Registrar
receives the following: 
  
 (A) if the transferee
will take delivery in the form of a beneficial interest in the 144A Global Note, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (1) thereof; and 
  
 (B) if the transferee will take delivery in the form of a
beneficial interest in the Reg S Temporary Global Note or the Reg S Permanent Global Note, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (2) thereof. 
  
 (iv) Transfer and Exchange of Beneficial Interests in a Restricted Global
Note for Beneficial Interests in the Unrestricted Global Note. A beneficial interest in any Restricted Global Note may be exchanged by any holder thereof for a beneficial interest in an Unrestricted Global Note or transferred to a Person who
takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Note if the exchange or transfer complies with the requirements of Section 2.6(b)(ii) above and: 
  
 (A) such exchange or transfer is effected pursuant to the Exchange Offer in accordance with the Registration
Rights Agreement and Section 2.6(f) hereof, and the holder of the beneficial interest to be transferred, in the case of an exchange, or the transferee, in the case of a transfer, certifies in the applicable Letter of Transmittal that it is not (1) a
Broker-Dealer, (2) a Person participating in the distribution of the Exchange Notes or (3) a Person who is an affiliate (as defined in Rule 144) of the Company (or such other certification as the Company or its counsel determines to be required
under applicable laws); 
  
 (B) such transfer is
effected pursuant to the Shelf Registration Statement in accordance with the Registration Rights Agreement; 
  
 (C) such transfer is effected by a Broker-Dealer pursuant to the Exchange Offer Registration Statement in accordance with the Registration
Rights Agreement; or 
  
 (D) the Registrar
receives the following: (1) if the holder of such beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for a beneficial interest in an Unrestricted Global Note, a certificate from such holder in the form of
Exhibit C hereto, including the certifications in item (1)(a) thereof; or (2) if the holder of such beneficial interest in a Restricted Global Note proposes to transfer such beneficial interest to a Person who shall take delivery thereof in the form
of a beneficial interest in an Unrestricted Global Note, a certificate from such holder in the form of Exhibit B hereto, including the certifications in item (4) thereof; and, in each such case set forth in this subparagraph (D), if the Registrar so
requests or if the Applicable Procedures so require, an Opinion of Counsel in form, reasonably acceptable to the Registrar and the Company to the effect that such exchange or transfer is in compliance with the Securities Act and that the
restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act. 
  

 33 

 If any such transfer is effected pursuant to subparagraph (B) or (D) above at a time when an Unrestricted
Global Note has not yet been issued, the Company shall issue and, upon receipt of an Authentication Order in accordance with Section 2.2 hereof, the Trustee shall authenticate one or more Unrestricted Global Notes in an aggregate principal amount
equal to the aggregate principal amount of beneficial interests transferred pursuant to subparagraph (B) or (D) above. Beneficial interests in an Unrestricted Global Note cannot be exchanged for, or transferred to Persons who take delivery thereof
in the form of, a beneficial interest in a Restricted Global Note. 
  
 (c) Transfer or Exchange of Beneficial Interests for Definitive Notes. 
  
 (i) Beneficial Interests in Restricted Global Notes to Restricted Definitive Notes. If any holder of a beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for a
Restricted Definitive Note or to transfer such beneficial interest to a Person who takes delivery thereof in the form of a Restricted Definitive Note, then, upon receipt by the Registrar of the following documentation: 
  
 (A) if the holder of such beneficial interest in a
Restricted Global Note proposes to exchange such beneficial interest for a Restricted Definitive Note, a certificate from such holder in the form of Exhibit C hereto, including the certifications in item (2)(a) thereof; 
  
 (B) if such beneficial interest is being transferred to a
QIB in accordance with Rule 144A, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (1) thereof; 
  
 (C) if such beneficial interest is being transferred to a Non-U.S. Person in an offshore transaction in accordance with Rule 903 or Rule
904 under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2) thereof; 
  
 (D) if such beneficial interest is being transferred pursuant to an exemption from the registration requirements of the Securities Act in
accordance with Rule 144, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(a) thereof; 
  
 (E) if such beneficial interest is being transferred to an Institutional Accredited Investor in reliance on an exemption from the
registration requirements of the Securities Act other than those listed in subparagraphs (B) through (D) above, a certificate to the effect set forth in Exhibit B hereto, including the certifications, certificates and Opinion of Counsel required by
item (3) thereof, if applicable; 
  
 (F) if such
beneficial interest is being transferred to the Company or any of its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(b) thereof; or 
  

 34 

 (G) if such beneficial interest is being transferred pursuant to an effective
registration statement under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(c) thereof, 
  

the Trustee shall cause the aggregate principal amount of the applicable Restricted Global Note to be reduced accordingly pursuant to Section 2.6(h) hereof, and the
Company shall execute and, upon receipt of an Authentication Order pursuant to Section 2.2 hereof, the Trustee shall authenticate and deliver to the Person designated in the instructions a Restricted Definitive Note in the appropriate principal
amount. Any Restricted Definitive Note issued in exchange for a beneficial interest in a Restricted Global Note pursuant to this Section 2.6(c) shall be registered in such name or names and in such authorized denomination or denominations as the
holder of such beneficial interest shall instruct the Registrar through instructions from the Depositary and the Participant or Indirect Participant. The Trustee shall deliver such Restricted Definitive Notes to the Persons in whose names such Notes
are so registered. Any Restricted Definitive Note issued in exchange for a beneficial interest in a Restricted Global Note pursuant to this Section 2.6(c)(i) shall bear the Private Placement Legend and shall be subject to all restrictions on
transfer contained therein. 
  
 (ii) Beneficial Interests in
Restricted Global Notes to Unrestricted Definitive Notes. A holder of a beneficial interest in a Restricted Global Note may exchange such beneficial interest for an Unrestricted Definitive Note or may transfer such beneficial interest to a
Person who takes delivery thereof in the form of an Unrestricted Definitive Note only if: 
  
 (A) such exchange or transfer is effected pursuant to the Exchange Offer in accordance with the Registration Rights Agreement and Section
2.6(f) hereof, and the holder of such beneficial interest, in the case of an exchange, or the transferee, in the case of a transfer, certifies in the applicable Letter of Transmittal that it is not (1) a Broker-Dealer, (2) a Person participating in
the distribution of the Exchange Notes or (3) a Person who is an affiliate (as defined in Rule 144) of the Company (or such other certification as the Company or its counsel determines to be required under applicable law); 
  
 (B) such transfer is effected pursuant to the Shelf
Registration Statement in accordance with the Registration Rights Agreement; 
  
 (C) such transfer is effected by a Broker-Dealer pursuant to the Exchange Offer Registration Statement in accordance with the Registration Rights Agreement; or 
  
 (D) the Registrar receives the following: (1) if the holder
of such beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for an Unrestricted Definitive Note, a certificate from such holder in the form of Exhibit C hereto, including the certifications in item (1)(b)
thereof; or (2) if the holder of such beneficial interest in a Restricted Global Note proposes to transfer such beneficial interest to a Person who shall take delivery thereof in the form of an Unrestricted Definitive Note, a certificate from such
holder in the form of Exhibit B hereto, including the certifications in item (4) thereof; and, in each such case set forth in this subparagraph (D), an Opinion of Counsel in form, reasonably acceptable to the Registrar and the Company to the effect
that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act.

  

 35 

 (iii) Beneficial Interests in Unrestricted Global Notes to Unrestricted Definitive Notes. If any
holder of a beneficial interest in an Unrestricted Global Note proposes to exchange such beneficial interest for an Unrestricted Definitive Note or to transfer such beneficial interest to a Person who takes delivery thereof in the form of an
Unrestricted Definitive Note, then, upon satisfaction of the conditions set forth in Section 2.6(b)(ii) hereof, the Trustee shall cause the aggregate principal amount of the applicable Unrestricted Global Note to be reduced accordingly pursuant to
Section 2.6(h) hereof, and the Company shall execute and, upon receipt of an Authentication Order pursuant to Section 2.2 hereof, the Trustee shall authenticate and deliver to the Person designated in the instructions an Unrestricted Definitive Note
in the appropriate principal amount. Any Unrestricted Definitive Note issued in exchange for a beneficial interest pursuant to this Section 2.6(c)(iii) shall be registered in such name or names and in such authorized denomination or denominations as
the holder of such beneficial interest shall instruct the Registrar through instructions from the Depositary and the Participant or Indirect Participant. The Trustee shall deliver such Unrestricted Definitive Notes to the Persons in whose names such
Notes are so registered. Any Unrestricted Definitive Note issued in exchange for a beneficial interest pursuant to this Section 2.6(c)(iii) shall not bear the Private Placement Legend. 
  
 (iv) Transfer or Exchange of Reg S Temporary Global Notes. Notwithstanding the other provisions of this Section 2.6,
a beneficial interest in the Reg S Temporary Global Note may not be (A) exchanged for a Definitive Note prior to (x) the expiration of the Distribution Compliance Period (unless such exchange is effected by the Company, does not require an
investment decision on the part of the holder thereof and does not violate the provisions of Regulation S) and (y) the receipt by the Registrar of any certificates identified by the Company or its counsel to be required pursuant to Rule 903(c)(3)(B)
under the Securities Act or (B) transferred to a Person who takes delivery thereof in the form of a Definitive Note prior to the events set forth in clause (A) above or unless the transfer is pursuant to an exemption from the registration
requirements of the Securities Act other than Rule 903 or Rule 904. 
  
 (d) Transfer and Exchange of Definitive Notes for Beneficial Interests. 
  
 (i) Restricted Definitive Notes to Beneficial Interests in Restricted Global Notes. If any Holder of a Restricted Definitive Note proposes to exchange such Note for a beneficial interest in a Restricted Global
Note or to transfer such Restricted Definitive Notes to a Person who takes delivery thereof in the form of a beneficial interest in a Restricted Global Note, then, upon receipt by the Registrar of the following documentation: 
  
 (A) if the Holder of such Restricted Definitive Note
proposes to exchange such Note for a beneficial interest in a Restricted Global Note, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (2)(b) thereof; 
  
 (B) if such Restricted Definitive Note is being transferred
to a QIB in accordance with Rule 144A, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (1) thereof; or 
  

 36 

 (C) if such Restricted Definitive Note is being transferred to a Non-U.S. Person in an
offshore transaction in accordance with Rule 903 or Rule 904 under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2) thereof, 
  
 the Trustee shall cancel the Restricted Definitive Note, increase or cause to be increased
the aggregate principal amount of, in the case of clause (A) above, the appropriate Restricted Global Note, in the case of clause (B) above, the 144A Global Note, and in the case of clause (C) above, the Regulation S Global Note. 
  
 (ii) Restricted Definitive Notes to Beneficial Interests in Unrestricted
Global Notes. A Holder of a Restricted Definitive Note may exchange such Note for a beneficial interest in an Unrestricted Global Note or transfer such Restricted Definitive Note to a Person who takes delivery thereof in the form of a beneficial
interest in an Unrestricted Global Note only if: 
  
 (A) such exchange or transfer is effected pursuant to the Exchange Offer in accordance with the Registration Rights Agreement and Section 2.6(f) hereof, and the Holder, in the case of an exchange, or the transferee, in the case of a
transfer, certifies in the applicable Letter of Transmittal that it is not (1) a Broker-Dealer, (2) a Person participating in the distribution of the Exchange Notes or (3) a Person who is an affiliate (as defined in Rule 144) of the Company (or such
other certifications as the Company or its counsel determines to be required under applicable law); 
  
 (B) such transfer is effected pursuant to the Shelf Registration Statement in accordance with the Registration Rights Agreement;

  
 (C) such transfer is effected by a
Broker-Dealer pursuant to the Exchange Offer Registration Statement in accordance with the Registration Rights Agreement; or 
  
 (D) the Registrar receives the following: (1) if the Holder of such Restricted Definitive Notes proposes to exchange such Notes for a
beneficial interest in the Unrestricted Global Note, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (1)(c) thereof; or (2) if the Holder of such Restricted Definitive Notes proposes to transfer
such Notes to a Person who shall take delivery thereof in the form of a beneficial interest in the Unrestricted Global Note, a certificate from such Holder in the form of Exhibit B hereto, including the certifications in item (4) thereof; and, in
each such case set forth in this subparagraph (D), if the Registrar so requests or if the Applicable Procedures so require, an Opinion of Counsel in form, reasonably acceptable to the Registrar and the Company to the effect that such exchange or
transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act. Upon satisfaction of the
conditions of any of the subparagraphs in this Section 2.6(d)(ii), the Trustee shall cancel the Restricted Definitive Notes so transferred or exchanged and increase or cause to be increased the aggregate principal amount of the Unrestricted Global
Note. 
  
 (iii) Unrestricted Definitive Notes to Beneficial
Interests in Unrestricted Global Notes. A Holder of an Unrestricted Definitive Note may exchange such Note for a beneficial interest in an Unrestricted Global Note or transfer such Definitive Notes to a 
  

 37 

 Person who takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Note at any time. Upon
receipt of a request for such an exchange or transfer, the Trustee shall cancel the applicable Unrestricted Definitive Note and increase or cause to be increased the aggregate principal amount of one of the Unrestricted Global Notes. If any such
exchange or transfer from a Definitive Note to a beneficial interest is effected pursuant to subparagraphs (ii)(B), (ii)(D) or (iii) of this Section 2.6(d) at a time when an Unrestricted Global Note has not yet been issued, the Company shall issue
and, upon receipt of an Authentication Order in accordance with Section 2.2 hereof, the Trustee shall authenticate one or more Unrestricted Global Notes in an aggregate principal amount equal to the principal amount of Definitive Notes so
transferred. 
  
 (e) Transfer and Exchange of Definitive Notes
for Definitive Notes. Upon request by a Holder of Definitive Notes and such Holder’s compliance with the provisions of this Section 2.6(e), the Registrar shall register the transfer or exchange of Definitive Notes. Prior to such
registration of transfer or exchange, the requesting Holder shall present or surrender to the Registrar the Definitive Notes duly endorsed or accompanied by a written instruction of transfer in form satisfactory to the Registrar duly executed by
such Holder or by its attorney, duly authorized in writing. In addition, the requesting Holder shall provide any additional certifications, documents and information, as applicable, required pursuant to the following provisions of this Section
2.6(e). 
  
 (i) Restricted Definitive Notes to Restricted
Definitive Notes. Any Restricted Definitive Note may be transferred to and registered in the name of Persons who take delivery thereof in the form of a Restricted Definitive Note if the Registrar receives the following: 
  
 (A) if the transfer will be made pursuant to Rule 144A, then
the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (1) thereof; 
  
 (B) if the transfer will be made pursuant to Rule 903 or Rule 904 under the Securities Act, then the transferor must deliver a certificate
in the form of Exhibit B hereto, including the certifications in item (2) thereof; and 
  
 (C) if the transfer will be made pursuant to any other exemption from the registration requirements of the Securities Act, then the
transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications, certificates and Opinion of Counsel required by item (3) thereof, if applicable. 
  
 (ii) Restricted Definitive Notes to Unrestricted Definitive Notes. Any Restricted Definitive Note may be exchanged by
the Holder thereof for an Unrestricted Definitive Note or transferred to a Person or Persons who take delivery thereof in the form of an Unrestricted Definitive Note if: 
  
 (A) such exchange or transfer is effected pursuant to the Exchange Offer in accordance with the Registration
Rights Agreement and Section 2.6(f) hereof, and the Holder, in the case of an exchange, or the transferee, in the case of a transfer, certifies in the applicable Letter of Transmittal that it is not (1) a Broker-Dealer, (2) a Person participating in
the distribution of the Exchange Notes or (3) a Person who is an affiliate (as defined in Rule 144) of the Company (or such other certification as the Company or its counsel determines to be required under applicable law); 
  

 38 

 (B) any such transfer is effected pursuant to the Shelf Registration Statement in
accordance with the Registration Rights Agreement; 
  
 (C) any such transfer is effected by a Broker-Dealer pursuant to the Exchange Offer Registration Statement in accordance with the Registration Rights Agreement; or 
  
 (D) the Registrar receives the following: (1) if the Holder of such Restricted Definitive Notes proposes to
exchange such Notes for an Unrestricted Definitive Note, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (1)(d) thereof; or (2) if the Holder of such Restricted Definitive Notes proposes to
transfer such Notes to a Person who shall take delivery thereof in the form of an Unrestricted Definitive Note, a certificate from such Holder in the form of Exhibit B hereto, including the certifications in item (4) thereof; and, in each such case
set forth in this subparagraph (D), an Opinion of Counsel in form reasonably acceptable to the Registrar and the Company to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer
contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act. 
  
 (iii) Unrestricted Definitive Notes to Unrestricted Definitive Notes. A Holder of Unrestricted Definitive Notes may transfer such Notes to a Person
who takes delivery thereof in the form of an Unrestricted Definitive Note. Upon receipt of a request to register such a transfer, the Registrar shall register the Unrestricted Definitive Notes pursuant to the instructions from the Holder thereof.

  
 (f) Exchange Offer. Upon the occurrence of the Exchange
Offer in accordance with the Registration Rights Agreement, the Company shall issue and, upon receipt of an Authentication Order in accordance with Section 2.2 hereof, the Trustee shall authenticate (i) one or more Unrestricted Global Notes in an
aggregate principal amount equal to the sum of (A) the principal amount of the beneficial interests in the Restricted Global Notes tendered for acceptance by Persons that certify in the applicable Letters of Transmittal that (x) they are not
Broker-Dealers, (y) they are not participating in a distribution of the Exchange Notes and (z) they are not affiliates (as defined in Rule 144) of the Company (or such other certification as the Company or its counsel determines to be required under
applicable law), and accepted for exchange in the Exchange Offer and (B) the principal amount of Definitive Notes exchanged or transferred for beneficial interests in Unrestricted Global Notes in connection with the Exchange Offer pursuant to
Section 2.6(d)(ii) hereof and (ii) Definitive Notes in an aggregate principal amount equal to the principal amount of the Restricted Definitive Notes accepted for exchange in the Exchange Offer (other than Definitive Notes described in clause (i)(B)
immediately above). Concurrently with the issuance of such Notes, the Trustee shall cause the aggregate principal amount of the applicable Restricted Global Notes to be reduced accordingly, and the Company shall execute and, upon receipt of an
Authentication Order pursuant to Section 2.2 hereof, the Trustee shall authenticate and deliver to the Persons designated by the Holders of Definitive Notes so accepted Definitive Notes in the appropriate principal amount. 
  
 (g) Legends. The following legends shall appear on the face of all
Global Notes and Definitive Notes issued under this Indenture unless specifically stated otherwise in the applicable provisions of this Indenture. 
  
 (i) Private Placement Legend. 
  

 39 

 (A) Except as permitted by subparagraph (B) below, each Global Note and each Definitive
Note (and all Notes issued in exchange therefor or substitution thereof) shall bear the legend in substantially the following form: 
  
 THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE
“SECURITIES ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE
RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. 
  
 THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS NOTE MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) IN THE
UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE UNITED STATES IN AN OFFSHORE
TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (IV) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (IV) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS NOTE FROM IT
OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE. 
  
 (B) Notwithstanding the foregoing, any Global Note or Definitive Note issued pursuant to subparagraphs (b)(iv), (c)(ii), (c)(iii), (d)(ii), (d)(iii), (e)(ii), (e)(iii) or (f) to this Section 2.6 (and all Notes issued in exchange therefor or
substitution thereof) shall not bear the Private Placement Legend. 
  
 (ii) Global Note Legend. To the extent required by the Depositary, each Global Note shall bear legends in substantially the following forms: 
  
 “THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE
BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.6 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN
WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.6(a) OF THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR
DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.” 
  

 40 

 “UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY
NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A
NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS
MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.”

  
 (iii) Reg S Temporary Global Note Legend. To the extent
required by the Depositary, each Reg S Temporary Global Note shall bear a legend in substantially the following form: 
  
 THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION ORIGINALLY EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE TRANSFERRED IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY U.S. PERSON EXCEPT PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
ALL APPLICABLE STATE SECURITIES LAWS. TERMS USED ABOVE HAVE THE MEANINGS GIVEN TO THEM IN REGULATION S UNDER THE SECURITIES ACT. 
  
 (h) Cancellation and/or Adjustment of Global Notes. At such time as all beneficial interests in a particular Global Note have been exchanged for
Definitive Notes or a particular Global Note has been redeemed, repurchased or cancelled in whole and not in part, each such Global Note shall be returned to or retained and cancelled by the Trustee in accordance with Section 2.11 hereof. At any
time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Note or for Definitive Notes, the
principal amount of Notes represented by such Global Note shall be reduced accordingly and an endorsement may be made on such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such reduction; and if the
beneficial interest is being exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Note, such other Global Note shall be increased accordingly and an endorsement may be made on
such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such increase. 
  

 41 

 (i) General Provisions Relating to Transfers and Exchanges. 
  
 (i) To permit registrations of transfers and exchanges, the Company shall
execute and the Trustee shall authenticate Global Notes and Definitive Notes upon receipt of an Authentication Order in accordance with Section 2.2 hereof or at the Registrar’s request. 
  
 (ii) No service charge shall be made to a holder of a beneficial interest in
a Global Note or to a Holder of a Definitive Note for any registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other
than any such transfer taxes or similar governmental charge payable upon exchange or transfer pursuant to Sections 2.10, 3.6, 4.12 and 4.13 hereof). 
  
 (iii) The Registrar shall not be required to register the transfer of or exchange any Note selected for redemption in whole or in part, except the
unredeemed portion of any Note being redeemed in part. 
  
 (iv)
All Global Notes and Definitive Notes issued upon any registration of transfer or exchange of Global Notes or Definitive Notes shall be the valid obligations of the Company, evidencing the same Indebtedness, and entitled to the same benefits under
this Indenture, as the Global Notes or Definitive Notes surrendered upon such registration of transfer or exchange. 
  
 (v) Neither the Registrar nor the Company shall be required (A) to issue, to register the transfer of or to exchange any Notes during a period beginning
at the opening of business 15 days before the day of any selection of Notes for redemption under Section 3.2 hereof and ending at the close of business on the day of selection, (B) to register the transfer of or to exchange any Note so selected for
redemption in whole or in part, except the unredeemed portion of any Note being redeemed in part or (C) to register the transfer of or to exchange a Note between a Record Date and the next succeeding Interest Payment Date. 
  
 (vi) Prior to due presentment for the registration of a transfer of any Note,
the Trustee, any Agent and the Company may deem and treat the Person in whose name any Note is registered as the absolute owner of such Note for the purpose of receiving payment of principal of and interest on such Notes and for all other purposes,
and none of the Trustee, any Agent or the Company shall be affected by notice to the contrary. 
  
 (vii) The Trustee shall authenticate Global Notes and Definitive Notes in accordance with the provisions of Section 2.2 hereof. 
  

(viii) All certifications, certificates and Opinions of Counsel required to be submitted to the Registrar pursuant to this Section 2.6 to effect a
registration of transfer or exchange may be submitted by facsimile. 
  
 Notwithstanding anything herein to the contrary, as to any certifications and certificates delivered to the Registrar pursuant to this Section 2.6, the Registrar’s duties shall be limited to confirming that any such certifications and
certificates delivered to it are in the form of Exhibits A, B, C and D attached hereto. The Registrar shall not be responsible for confirming the truth or accuracy of representations made in any such certifications or certificates. 
  

 42 

 SECTION 2.7 REPLACEMENT NOTES 
  
 If any mutilated Note is surrendered to the Trustee or the Company and the
Trustee and the Company receive evidence (which evidence may be from the Trustee) to their satisfaction of the destruction, loss or theft of any Note, the Company shall issue and the Trustee, upon receipt of an Authentication Order, shall
authenticate a replacement Note if the Trustee’s requirements are met. If required by the Trustee or the Company, an indemnity bond must be supplied by the Holder that is sufficient in the judgment of the Trustee and the Company to protect the
Company, the Trustee, any Agent and any authenticating agent from any loss that any of them may suffer if a Note is replaced. The Company may charge for its expenses in replacing a Note. Every replacement Note is an additional obligation of the
Company and shall be entitled to all of the benefits of this Indenture equally and proportionately with all other Notes duly issued hereunder. 
  
 SECTION 2.8 OUTSTANDING NOTES 
  
 The Notes outstanding at any time are all the Notes authenticated by the Trustee (including any Note represented by a Global
Note) except for those cancelled by it or at its direction, those delivered to it for cancellation, those reductions in the interest in a Global Note effected by the Trustee in accordance with the provisions hereof, and those described in this
Section 2.8 as not outstanding. Except as set forth in Section 2.9 hereof, a Note does not cease to be outstanding because the Company or an Affiliate of the Company holds the Note. If a Note is replaced pursuant to Section 2.7 hereof, such Note,
together with the Guarantee of that particular Note endorsed thereon, ceases to be outstanding unless the Trustee receives proof satisfactory to it that the replaced Note is held by a bona fide purchaser. If the principal amount of any Note
is considered paid under Section 4.1 hereof, it ceases to be outstanding and interest on it ceases to accrue. If the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any thereof) holds, on a redemption date or the maturity date,
money sufficient to pay Notes payable on that date, then on and after that date such Notes shall be deemed to be no longer outstanding and shall cease to accrue interest. 
  
 SECTION 2.9 TREASURY NOTES 
  
 In determining whether the Holders of the required principal amount of Notes
have concurred in any direction, waiver or consent, Notes owned by the Company, or by any Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company, shall be considered as though not
outstanding, except that for the purposes of determining whether the Trustee shall be protected in relying on any such direction, waiver or consent, only Notes that the Trustee knows are so owned shall be so disregarded. 
  
 SECTION 2.10 TEMPORARY NOTES

  
 Until certificates representing Notes are ready for delivery,
the Company may prepare and the Trustee, upon receipt of an Authentication Order, shall authenticate temporary Notes. Temporary Notes shall be substantially in the form of Definitive Notes but may have variations that the Company considers
appropriate for temporary Notes and as shall be reasonably acceptable to the Trustee. Without unreasonable delay, the Company shall prepare and the Trustee shall authenticate Definitive Notes in exchange for temporary Notes. Holders of temporary
Notes shall be entitled to all of the benefits of this Indenture. 
  

 43 

 SECTION 2.11 CANCELLATION 
  
 The Company at any time may deliver Notes to the Trustee for cancellation.
The Registrar and Paying Agent shall forward to the Trustee any Notes surrendered to them for registration of transfer, exchange or payment. The Trustee, or at the direction of the Trustee, the Registrar or the Paying Agent (other than the Company
or an Affiliate of the Company), and no one else shall cancel all Notes surrendered for registration of transfer, exchange, payment, replacement or cancellation and shall destroy cancelled Notes (subject to the record retention requirement of the
Exchange Act). Certification of the destruction of all cancelled Notes shall be delivered to the Company. The Company may not issue new Notes to replace Notes that it has paid or that have been delivered to the Trustee for cancellation. 

 
 SECTION 2.12 DEFAULTED
INTEREST 
  
 Any interest on any Note which is
payable, but is not punctually paid or duly provided for, on any Interest Payment Date plus, to the extent lawful, any interest payable on the defaulted interest at the rate and in the manner provided in Section 4.1 hereof and in the Note (herein
called “Defaulted Interest”) shall forthwith cease to be payable to the registered holder on the relevant Record Date, and such Defaulted Interest may be paid by the Company, at its election in each case, as provided in clause (1) or (2)
below: 
  
 (1) The Company may elect to make
payment of any Defaulted Interest to the Persons in whose names the Notes are registered at the close of business on a Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Company shall
notify the Trustee and the Paying Agent in writing of the amount of Defaulted Interest proposed to be paid on each Note and the date of the proposed payment, and at the same time the Company shall deposit with the Paying Agent an amount of cash
equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements reasonably satisfactory to the Paying Agent for such deposit prior to the date of the proposed payment, such cash when deposited to be
held in trust for the benefit of the Persons entitled to such Defaulted Interest as provided in this clause (1). Thereupon the Paying Agent shall fix a “Special Record Date” for the payment of such Defaulted Interest which shall be not
more than 15 days and not less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Paying Agent of the notice of the proposed payment. The Paying Agent shall promptly notify the Company and the
Trustee of such Special Record Date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to each
Holder at its address as it appears in the Note register maintained by the Registrar not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been
mailed as aforesaid, such Defaulted Interest shall be paid to the persons in whose names the Notes (or their respective predecessor Notes) are registered on such Special Record Date and shall no longer be payable pursuant to the following clause
(2). 
  
 (2) The Company may make payment of any
Defaulted Interest in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the
Trustee and the Paying Agent of the proposed payment pursuant to this clause, such manner shall be deemed practicable by the Trustee and the Paying Agent. 
  

 44 

 Subject to the foregoing provisions of this Section 2.12, each Note delivered under this Indenture upon
registration of transfer of or in exchange for or in lieu of any other Note shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Note. 
  
 SECTION 2.13 CUSIP NUMBERS 
  
 The Company in issuing the Notes may use “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall
use “CUSIP” numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Notes or as contained in
any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Notes, and any such redemption shall not be affected by any defect in or omission of such numbers. The Company will promptly notify
the Trustee of any change in the “CUSIP” numbers. 
  
 SECTION 2.14 ISSUANCE OF ADDITIONAL NOTES 
  
 The Company may, subject to Section 4.7 hereof and applicable law, issue Additional Notes under this Indenture. The Notes issued on the Issue Date and any
additional Notes subsequently issued shall be treated as a single class for all purposes under this Indenture. 
  
 ARTICLE III 
 REDEMPTION 
  
 SECTION 3.1 NOTICES TO
TRUSTEE 
  
 If the Company elects to redeem Notes
pursuant to the optional redemption provisions of Section 3.7 hereof, it shall furnish to the Trustee, at least 30 days (unless a shorter period is acceptable to the Trustee) but not more than 60 days (unless a longer period is acceptable to the
Trustee) before a redemption date, an Officers’ Certificate setting forth (i) the clause of this Indenture pursuant to which the redemption shall occur, (ii) the redemption date, (iii) the principal amount of Notes to be redeemed and (iv) the
redemption price. 
  

	SECTION	3.2 SELECTION OF NOTES TO BE REDEEMED 

  
 If less than all of the Notes are to be redeemed at any time, the Trustee
shall select the Notes or portions thereof to be redeemed among the Holders of the Notes pursuant to the rules of DTC, if applicable, or on a pro rata basis. In the event of partial redemption by lot, the particular Notes to be redeemed shall
be selected, unless otherwise provided herein, not less than 30 nor more than 60 days prior to the redemption date by the Trustee from the outstanding Notes not previously called for redemption. 
  
 The Trustee shall promptly notify the Company in writing of the Notes
selected for redemption and, in the case of any Note selected for partial redemption, the principal amount thereof to be redeemed. Notes and portions of Notes in denominations of larger than $1,000 selected shall be in amounts of $1,000 or integral
multiples of $1,000; except that if all of the Notes of a Holder are to be redeemed, the entire outstanding amount of Notes held by such Holder, even if not an integral multiple of $1,000, shall be redeemed. Except as provided in the preceding
sentence, provisions of this Indenture that apply to Notes called for redemption also apply to portions of Notes called for redemption. 
  

 45 

 SECTION 3.3 NOTICE OF REDEMPTION

  
 Subject to the provisions of Section 3.7 hereof, at least 30
days but not more than 60 days before a redemption date, the Company shall mail or cause to be mailed, by first class mail, a notice of redemption to each Holder whose Notes are to be redeemed at its registered address. 
  
 The notice shall identify the Notes to be redeemed and shall state:

  
 (a) the redemption date; 
  
 (b) the redemption price; 
  
 (c) if any Note is being redeemed in part, the portion of the principal
amount of such Note to be redeemed and that, on or after the redemption date upon surrender of such Note, a new Note or Notes in principal amount equal to the unredeemed portion shall be issued upon cancellation of the original Note; 
  
 (d) the name and address of the Paying Agent; 
  
 (e) that Notes called for redemption must be surrendered to the Paying Agent
to collect the redemption price; 
  
 (f) that, unless the Company
defaults in making such redemption payment, interest on Notes called for redemption ceases to accrue on and after the redemption date; 
  
 (g) the paragraph of the Notes and/or Section of this Indenture pursuant to which the Notes called for redemption are being redeemed; and 
  
 (h) that no representation is made as to the correctness or accuracy of the
CUSIP number, if any, listed in such notice or printed on the Notes. 
  
 At the Company’s request, the Trustee shall give the notice of redemption in the Company’s name and at its expense; provided, however, that the Company shall have delivered to the Trustee, at least 45 days prior to the
redemption date (unless a shorter period shall be acceptable to the Trustee), an Officers’ Certificate requesting that the Trustee give such notice and setting forth the information to be stated in such notice as provided in the preceding
paragraph. 
  
 SECTION 3.4 EFFECT
OF NOTICE OF REDEMPTION 
  
 Once notice of redemption is mailed in accordance with Section 3.3 hereof, Notes called for redemption become irrevocably due and payable on the redemption date at the redemption price. A notice of redemption may not
be conditional. 
  
 SECTION 3.5
DEPOSIT OF REDEMPTION PRICE 
  
 (a) On the Business Day immediately prior to the redemption date, the Company shall deposit with the Trustee or with the Paying Agent immediately available funds sufficient to pay the redemption price of and accrued
and unpaid interest (and Liquidated 
  

 46 

 Damages, if any) on all Notes to be redeemed on that date. The Trustee or the Paying Agent shall promptly return to the
Company any money deposited with the Trustee or the Paying Agent by the Company in excess of the amounts necessary to pay the redemption price of, and accrued and unpaid interest (and Liquidated Damages, if any) on, all Notes to be redeemed.

  
 (b) If the Company complies with the provisions of the clause
(a) of this Section 3.5, on and after the redemption date, interest shall cease to accrue on the Notes or the portions of Notes called for redemption. If a Note is redeemed on or after an interest Record Date but on or prior to the related Interest
Payment Date, then any accrued and unpaid interest (and Liquidated Damages, if any) shall be paid to the Person in whose name such Note was registered at the close of business on such Record Date. If any Note called for redemption shall not be so
paid upon surrender for redemption because of the failure of the Company to comply with the preceding paragraph, interest shall be paid on the unpaid principal, from the redemption date until such principal is paid, and to the extent lawful on any
interest not paid on such unpaid principal, in each case at the rate provided in the Notes and in Section 4.1 hereof. 
  
 SECTION 3.6 NOTES REDEEMED IN PART 
  
 (a) Upon surrender of a Note that is redeemed in part, the Company shall
issue and, upon receipt of an Authentication Order, the Trustee shall authenticate for the Holder at the expense of the Company a new Note equal in principal amount to the unredeemed portion of the Note surrendered. 
  
 SECTION 3.7 OPTIONAL
REDEMPTION 
  
 (a) Except as set forth in clause
(b) of this Section 3.7, the Company shall not have the right to redeem any Notes pursuant to this Section 3.7 prior to February 15, 2009. The Notes will be redeemable for cash at the option of the Company, in whole or in part, at any time or from
time to time on or after February 15, 2009, upon not less than 30 days nor more than 60 days prior notice mailed by first class mail to each Holder at its last registered address, at the following redemption prices (expressed as percentages of the
principal amount) if redeemed during the 12-month period commencing February 15 of the years indicated below, in each case together with accrued and unpaid interest (and Liquidated Damages, if any), thereon to the date of redemption of the Notes
(the “Redemption Date”): 
  

				
	 Year

	  	Percentage

	 
	 2009
	  	103.875	%
	 2010
	  	102.583	%
	 2011
	  	101.292	%
	 and thereafter
	  	100.000	%

  
 (b) Notwithstanding
the provisions of clause (a) of this Section 3.7, at any time or from time to time on or prior to February 15, 2007 upon one or more Qualified Equity Offerings, up to 35% of the aggregate principal amount of the Notes issued pursuant to this
Indenture (only as necessary to avoid any duplication, excluding any replacement Notes) may be redeemed at the Company’s option within 90 days of the closing of any such Qualified Equity Offering from the Net Cash Proceeds of such Qualified
Equity Offering, on not less than 30 days, but not more than 60 days, notice to each Holder of the Notes to be redeemed, at a redemption price equal to 107.75% of principal, together with accrued and unpaid interest (and Liquidated 
  

 47 

 Damages, if any) thereon to the Redemption Date; provided, however, that immediately following each such redemption not
less than 65% of the aggregate principal amount of the Notes originally issued pursuant to this Indenture on the Issue Date remain outstanding (only as necessary to avoid any duplication, excluding any replacement Notes). 
  
 (c) At any time on or prior to February 15, 2008, the Notes may be redeemed
as a whole at the Company’s option upon the occurrence of a Change of Control, upon not less than 30 nor more than 60 days’ prior notice but in no event more than 90 days after the occurrence of such Change of Control, mailed by
first-class mail to each Holder’s registered address, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus the Applicable Premium as of, and accrued and unpaid interest, including Liquidated Damages, if
any, to the date of the redemption (the “Change of Control Redemption Date”), except that installments of interest which are due and payable on dates falling on or prior to the applicable redemption date will be payable to the persons who
were the Holders of record at the close of business on the relevant record dates. 
  
 (d) Any redemption pursuant to this Section 3.7 shall be made pursuant to the provisions of Sections 3.1 through 3.6 hereof. 
  
 SECTION 3.8 MANDATORY REDEMPTION 
  
 Upon issuance, the net proceeds from the issuance of the Notes will be paid in cash directly to the Securities Intermediary.
The Securities Intermediary will invest those proceeds as set forth in the Security Agreement and will deposit the Pledged Securities into a securities account (the “Secured Proceeds Account”) in accordance with the Security Agreement. In
accordance with the procedures set forth in the Security Agreement, the Securities Intermediary shall liquidate the assets in the Secured Proceeds Account and deliver the proceeds thereof (after deducting the customary expenses of the Trustee and
the Securities Intermediary) to the Trustee to redeem the Notes as set forth in clauses (a) and (b) below. 
  
 (a) If (i) the Merger has not occurred prior to April 15, 2004 or such later date as is agreed to by the parties to the Merger Agreement, which in no
event shall be later than June 30, 2004, substantially on the terms set forth in the Merger Agreement, for consideration not in excess of the amount determined in accordance with the Merger Agreement, and, on a pro forma basis after giving
effect to the Merger and Related Financing Transactions, the Company’s capitalization shall not have a higher ratio of indebtedness to equity than was described in the Offering Circular, as such capitalization may be adjusted in the manner
described in the Offering Circular (“Acceptable Terms”) or (ii) the Company has determined that the Merger will not occur by any such date (each, a “Triggering Event”), the Company will be required to redeem (a “Mandatory
Redemption”) all of the outstanding Notes, for a price equal to 101% of their principal amount, plus accrued and unpaid interest thereon through the redemption date (the “Mandatory Redemption Price”). The Mandatory Redemption must
occur no later than the date 30 Business Days after the Triggering Event (the “Mandatory Redemption Date”). 
  
 (b) In the event of a Mandatory Redemption, the Trustee will direct the Securities Intermediary to liquidate assets in the Secured Proceeds Account for
the Company to pay the Mandatory Redemption Price and to deliver the net proceeds to the Trustee. 
  
 (c) Except for a Mandatory Redemption, the Notes will not have the benefit of any sinking fund and the Company shall not be required to make any mandatory
redemption payments with respect to the Notes. 
  

 48 

 (d) This Section 3.8 (other than subsection (e) hereof) shall terminate and be of no further force and
effect upon the consummation of the Merger, which may be conclusively determined for all purposes hereunder by delivery of an Officers Certificate by the Company to the Trustee to such effect. 
  
 (e) In connection with the consummation of the Merger, the Securities
Intermediary will liquidate the assets in the Secured Proceeds Account and deliver such funds as contemplated by the Security Agreement, whereupon the Company’s obligations hereunder will be unsecured. 
  
 ARTICLE IV 
 COVENANTS 
  
 SECTION 4.1 PAYMENT OF NOTES 
  
 The Company shall pay or cause to be paid the principal of, premium, if any, and interest on the Notes on the dates and in the manner provided in the
Notes. Principal, premium, if any, and interest shall be considered paid on the date due if the Paying Agent, if other than the Company or a Subsidiary thereof, holds as of 12:00 noon Eastern time on the due date money deposited by the Company in
immediately available funds and designated for and sufficient to pay all principal, premium, if any, and interest then due. The Company shall pay all Liquidated Damages, if any, in the same manner on the dates and in the amounts set forth in the
Registration Rights Agreement and herein. 
  
 The Company shall
pay interest (including Accrued Bankruptcy Interest in any proceeding under any Bankruptcy Law) on overdue principal at the then applicable interest rate on the Notes to the extent lawful; it shall pay interest (including Accrued Bankruptcy Interest
in any proceeding under any Bankruptcy Law) on overdue installments of interest and Liquidated Damages, if any, (without regard to any applicable grace period) at the same rate to the extent lawful. 
  
 SECTION 4.2 MAINTENANCE OF
OFFICE OR AGENCY 
  
 The Company shall maintain in the Borough of Manhattan, The City of New York, an office or agency (which may be an office of the Trustee or an affiliate of the Trustee, Registrar or co-registrar) where Notes may be surrendered for
registration of transfer or for exchange and where notices and demands to or upon the Company in respect of the Notes and this Indenture may be served. The Company 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 Corporate Trust Office of the Trustee. 
  
 The Company may also from time to time designate one or more other offices or agencies where the Notes may be presented or surrendered for any or all such purposes and may from time to time rescind such designations; provided,
however that no such designation or rescission shall in any manner relieve the Company of its obligation to maintain an office or agency in the Borough of Manhattan, The City of New York for such purposes. The Company and the Guarantors shall
give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of any such other office or agency. 
  

 49 

 The Company hereby designates the Corporate Trust Office of the Trustee as one such office or agency of
the Company in accordance with Section 2.3 hereof. 
  
 SECTION 4.3 COMMISSION REPORTS AND REPORTS TO HOLDERS 
  
 (a) Whether or not the Company is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, the Company will deliver to the
Trustee and to each Holder of Notes, within 5 days after the Company is or would have been (if the Company was subject to such reporting obligations) required to file such with the Commission, annual and quarterly financial statements substantially
equivalent to financial statements that would have been included in reports if the Company were subject to the requirements of Section 13 or 15(d) of the Exchange Act, including, with respect to annual information only, a report thereon by the
Company’s certified independent public accountants, and, in each case, together with a management’s discussion and analysis of financial condition and results of operations which would be so required and, from and after the consummation of
the Exchange Offer unless the Commission will not accept such reports, file with the Commission the annual, quarterly and other reports which it is or would have been required to file with the Commission. 
  
 (b) In the event that (1) the rules and regulations of the Commission permit
the Company and any Parent Entity to report at such Parent Entity’s level on a consolidated basis and (2) such Parent Entity is not engaged in any business in any material respect other than incidental to its ownership, directly or indirectly,
of the Capital Stock of the Company and its Affiliates, the information and reports required by this Section 4.3 may be those of such Parent Entity on a consolidated basis; provided, that such information and reports distinguish in all
material respects between the Company and its Subsidiaries and such Parent Entity and its other subsidiaries, if any; provided, further, that if such Parent Entity’s capitalization (including cash and Cash Equivalents) differs from that
of the Company and its Subsidiaries in any material respect, such information and reports will include annual and quarterly financial statements substantially equivalent to the financial statements that would have been included in reports filed with
the Commission, if the Company were subject to the requirements of Section 13 or 15(d) of the Exchange Act, including, with respect to annual information only, a report thereon by the Company’s certified independent public accountants.

  
 SECTION 4.4 COMPLIANCE
CERTIFICATE 
  
 (a) The Company shall deliver to
the Trustee, within 120 days after the end of each fiscal year, an Officers’ Certificate stating that a review of the activities of the Company and its Subsidiaries during the preceding fiscal year has been made under the supervision of the
signing Officers with a view to determining whether the Company and its Subsidiaries have kept, observed, performed and fulfilled their obligations under this Indenture, and further stating, as to each such Officer signing such certificate, that to
his or her knowledge the Company and its Subsidiaries are not in default in the performance or observance of any of the terms, provisions and conditions of this Indenture (or, if a Default or Event of Default shall have occurred and be continuing,
describing all such Defaults or Events of Default of which he or she may have knowledge and what action the Company is taking or proposes to take with respect thereto) and that to his or her knowledge no event has occurred and remains in existence
by reason of which payments on account of the principal of or interest, if any, on the Notes is prohibited or if such event has occurred, a description of the event and what action the Company is taking or proposes to take with respect thereto.

  
 (b) The Company shall, so long as any of the Notes 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. 
  

 50 

 SECTION 4.5 TAXES 
  
 The Company shall pay, and shall cause each of its Subsidiaries to pay,
prior to delinquency, all material taxes, assessments, and governmental levies except such as are contested in good faith and by appropriate proceedings or where the failure to effect such payment would not have a material adverse effect on the
ability of the Company and the Guarantors to satisfy their obligations under the Notes, the Guarantees and this Indenture. 
  
 SECTION 4.6 STAY, EXTENSION AND USURY LAWS 
  
 The Company covenants (to the extent that it may lawfully do so) that it
shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force, that may affect the covenants or the
performance of this Indenture; and the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it shall not, by resort to any such law, hinder, delay or impede the
execution of any power herein granted to the Trustee, but shall suffer and permit the execution of every such power as though no such law has been enacted. 
  
 SECTION 4.7 LIMITATION ON INCURRENCE OF ADDITIONAL
INDEBTEDNESS AND DISQUALIFIED CAPITAL STOCK 
  
 Except as set forth in this Section 4.7, the Company shall not and shall not permit any of the Guarantors, and neither the Company nor the Guarantors
shall permit any of the Company’s Subsidiaries to, directly or indirectly, issue, assume, guaranty, incur, become directly or indirectly liable with respect to (including as a result of an acquisition), or otherwise become responsible for,
contingently or otherwise (individually and collectively, to “incur” or, as appropriate, an “incurrence”), any Indebtedness (including Disqualified Capital Stock and Acquired Indebtedness), other than Permitted Indebtedness.

  
 Notwithstanding the foregoing if: 
  
 (1) no Default or Event of Default shall have occurred and be continuing at
the time of, or would occur after giving effect on a pro forma basis to, such incurrence of Indebtedness and the use of proceeds thereof; and 
  
 (2) on the date of such incurrence (the “Incurrence Date”), the Company’s Consolidated Coverage Ratio for the Reference Period immediately
preceding the Incurrence Date, after giving effect on a pro forma basis to such incurrence of such Indebtedness and the use of proceeds thereof, would be at least 2.0 to 1.0 (the “Debt Incurrence Ratio”); 
  
 then the Company and the Guarantors may incur such Indebtedness (including Disqualified
Capital Stock and Acquired Indebtedness). 
  
 In addition, the foregoing
limitations of the first paragraph of this Section 4.7 will not prohibit: 
  
 (a) the Company’s incurrence or the incurrence by any Guarantor or Foreign Subsidiary of Purchase Money Indebtedness; provided, that 
  

 51 

 (1) the aggregate amount of such Indebtedness incurred and outstanding at any time pursuant to this
paragraph (a) (plus any Refinancing Indebtedness issued to retire, defease, refinance, replace or refund such Indebtedness) shall not exceed $15,000,000, and 
  
 (2) in each case, such Indebtedness shall not constitute more than 100% of the Company’s cost or the cost to such Guarantor or Foreign Subsidiary
(determined in accordance with GAAP in good faith by the Company), as applicable, of the property so purchased, constructed, improved or leased; 
  
 (b) the Company’s incurrence or the incurrence by any Foreign Subsidiary or any Guarantor of Indebtedness in an aggregate amount incurred and
outstanding at any time pursuant to this paragraph (b) (including any Indebtedness incurred to retire, defease, refinance, replace or refund such Indebtedness) of up to $20,000,000; and 
  
 (c) the Company’s incurrence or the incurrence by any Guarantor or Foreign Subsidiary of Indebtedness pursuant to the
Credit Agreement in an aggregate amount incurred and outstanding at any time pursuant to this paragraph (c) (plus any Refinancing Indebtedness incurred to retire, defease, refinance, replace or refund such Indebtedness) of up to $135,000,000 (not
more than $10,000,000 of which shall be incurred and outstanding at any time in respect of Foreign Subsidiaries), with letters of credit being deemed to have a principal amount equal to the full amount thereof, minus the amount of any such
Indebtedness (1) retired with the Net Cash Proceeds from any Asset Sale applied to permanently reduce the outstanding amounts or the commitments with respect to such Indebtedness pursuant to clause (b) of the second paragraph of Section 4.12 hereof
or (2) assumed by a transferee in an Asset Sale. 
  
 Indebtedness
(including Disqualified Capital Stock) of any Person which is outstanding at the time such Person becomes one of the Company’s Subsidiaries (including upon designation of any subsidiary or other Person as a Subsidiary) or is merged with or into
or consolidated with the Company or one of the Company’s Subsidiaries shall be deemed to have been incurred at the time such Person becomes or is designated one of the Company’s Subsidiaries or is merged with or into or consolidated with
the Company or one of the Company’s Subsidiaries as applicable. 
  
 Notwithstanding any other provision of this Section 4.7, but only to avoid duplication, a guarantee of the Company’s Indebtedness or of the Indebtedness of a Subsidiary incurred in accordance with the terms of this Indenture will not
constitute a separate incurrence, or amount outstanding, of Indebtedness. Upon each incurrence the Company may designate (and later redesignate) in the Company’s sole discretion pursuant to which provision of this Section 4.7 or the definition
of Permitted Indebtedness any Indebtedness is being incurred and the Company may subdivide an amount of Indebtedness and designate (and later redesignate) more than one such provision pursuant to which such amount of Indebtedness is being incurred
and such Indebtedness shall not be deemed to have been incurred or outstanding under any other provision of this Section 4.7 or the definition of Permitted Indebtedness. Accrual of interest or dividends on Disqualified Capital Stock, the accretion
of accreted value, the payment of interest or dividends on Disqualified Capital Stock paid in kind, changes in obligations in respect of Interest Swap and Hedging Obligations, and any increase as a result of currency fluctuations will not be deemed
to be an incurrence of Indebtedness for purposes of this Section 4.7. 
  
 For the avoidance of doubt, outstanding Indebtedness shall be determined without duplication of Refinancing Indebtedness in respect thereof or, for the purposes of Section 4.7(b) hereof, Indebtedness incurred in respect of the retirement,
defeasance, refinancing, replacement or refunding of such outstanding Indebtedness. 
  

 52 

 SECTION 4.8 LIMITATION ON LIENS 

 
 The Company shall not and the Guarantors shall not, and neither the
Company nor the Guarantors shall permit any of the Company’s Subsidiaries to, create, incur, assume or suffer to exist any Lien of any kind, other than Permitted Liens, upon any of their respective assets now owned or acquired on or after the
Issue Date or upon any income or profits therefrom securing any of the Company’s Indebtedness or any Indebtedness of any Guarantor, unless the Company provides, and cause the Company’s Subsidiaries to provide, concurrently therewith, that
the Notes and the applicable Guarantees are equally and ratably so secured for so long as such other Indebtedness is secured by such Lien; provided, that if such Indebtedness is Subordinated Indebtedness, the Lien securing such Subordinated
Indebtedness shall be contractually subordinate and junior to the Lien securing the Notes (and any related applicable Guarantees) with the same relative priority as such Subordinated Indebtedness shall have with respect to the Notes (and any related
applicable Guarantees), and provided, further, that this clause shall not be applicable to any Liens securing any such Indebtedness which became the Company’s Indebtedness pursuant to a transaction subject to the provisions of
Section 5.1 hereof or which constitutes Acquired Indebtedness and which in either case were in existence at the time of such transaction (unless such Indebtedness was incurred or such Lien created in connection with, or in contemplation of, such
transaction), so long as such Liens do not extend to or cover any of the Company’s property or assets or any property or assets of any of the Company’s Subsidiaries other than property or assets acquired in such transaction. 
  
 SECTION 4.9 LIMITATION ON
RESTRICTED PAYMENTS 
  
 The Company
shall not, and shall not permit any of the Company’s Subsidiaries to, directly or indirectly, make any Restricted Payment if, after giving effect to such Restricted Payment on a pro forma basis: 
  
 (1) a Default or an Event of Default shall have occurred and be continuing;

  
 (2) the Company is not permitted to incur at least $1.00 of
additional Indebtedness pursuant to the Debt Incurrence Ratio set forth in Section 4.7 hereof; or 
  
 (3) the aggregate amount of all Restricted Payments made by the Company and the Company’s Subsidiaries, including after giving effect to such
proposed Restricted Payment on and after the Issue Date, would exceed, without duplication, the sum of: 
  
 (a) 50% of the Company’s aggregate Consolidated Net Income for the period (taken as one accounting period) commencing on the first day of the first
full fiscal quarter in which the Issue Date occurs to and including the last day of the most recent fiscal period for which internal financial statements are available (or, in the event Consolidated Net Income for such period is a deficit, then
minus 100% of such deficit), plus 
  
 (b) the aggregate Net Cash
Proceeds received by the Company from a Capital Contribution or from the sale of the Company’s Qualified Capital Stock (other than (i) to one of the Company’s Subsidiaries, (ii) the Net Cash Proceeds received by the Company from a Capital
Contribution or from the sale of the Company’s Qualified Capital Stock in connection with the Merger and Related Financing Transactions and (iii) to the extent applied in connection 
  

 53 

 with a Qualified Exchange or a Permitted Investment pursuant to clause (d) of the definition thereof or, to avoid
duplication, otherwise given credit for in any provision of the following paragraph), after the Issue Date, plus 
  
 (c) except in each case, in order to avoid duplication, to the extent any such payment or proceeds have been included in the calculation of Consolidated
Net Income, an amount equal to the net reduction in Investments (other than returns of or from Permitted Investments) in any Person resulting from cash distributions on or cash repayments of any Investment, including payments of interest on
Indebtedness, dividends, repayments of loans or advances, or other distributions or other transfers of assets, in each case to the Company or any Subsidiary or from the Net Cash Proceeds from the sale of any such Investment or from redesignations of
Unrestricted Subsidiaries as Subsidiaries (valued in each case as provided in the definition of Investments), not to exceed, in each case, the amount of Investments previously made by the Company or any Subsidiary in such Person, including, if
applicable, such Unrestricted Subsidiary, less the cost of disposition. 
  
 The foregoing clauses (2) and (3) of the first paragraph of this Section 4.9, however, will not prohibit: 
  
 (a) Restricted Payments pursuant to this clause (a) not to exceed $15,000,000 in the aggregate from and after the Issue Date; 
  
 (b) for the avoidance of doubt, payments pursuant to the Management
Agreement; 
  
 (c) payments of cash dividends to any Parent Entity
for repurchases of Capital Stock from the Company’s employees, FTD-member florists, distributors or directors (or their heirs or estates) or employees or directors (or their heirs or estates) of, any Parent Entity or any Subsidiary of the
Company upon the death, disability or termination of employment (or termination of membership or distribution, in the case of a FTD-member florist or distributor), provided such repurchases are made with the proceeds of such dividends within
three Business Days of the payment of such dividends, and payments of cash, or dividends, distributions or advances to any Parent Entity to make payments of cash, in lieu of the issuance of fractional shares upon the exercise of warrants or upon the
conversion or exchange of, or issuance of Capital Stock in lieu of cash dividends on, any Capital Stock of any Parent Entity, in an aggregate amount not to exceed $7,500,000 after the Issue Date; 
  
 (d) the declaration and payment of dividends to holders of any class or
series of Disqualified Capital Stock issued after the Issue Date; provided, however, that at the time such Disqualified Capital Stock was issued, and after giving pro forma effect thereto, the Company and the Guarantors had a
Consolidated Coverage Ratio of at least 2.0 to 1.0; 
  
 (e) the
repurchase, redemption or other acquisition or retirement for value of Indebtedness that is contractually subordinated to the Notes or any Guarantee (a) with Excess Proceeds to the extent such Excess Proceeds are permitted to be used for general
corporate purposes under Section 4.12 hereof or (b) with, after the completion of a Change in Control Offer pursuant to the terms of Section 4.13 hereof, cash offered to redeem Notes pursuant to such Change of Control Offer less any cash paid to
Holders of the Notes pursuant to such Change in Control Offer; 
  

 54 

 and clauses (1), (2) and (3) of the first paragraph of this Section 4.9 will not prohibit: 
  
 (f) payments of amounts equal to any insurance proceeds received in respect
of the settlement of the FTD.COM securities litigation; 
  
 (g)
any dividend, distribution or other payments by any of the Company’s Subsidiaries on its Equity Interests that is paid pro rata to all holders of such Equity Interests; 
  
 (h) a Qualified Exchange; 
  
 (i) the payment of any dividend on shares of Capital Stock within 60 days after the date of its declaration if such dividend could have been made on the
date of such declaration in compliance with the foregoing provisions; 
  
 (j) the repurchase of Equity Interests deemed to occur upon the exercise of stock options, warrants or other convertible securities to the extent such Equity Interests represent a portion of the exercise price thereof; or 
  
 (k) payments to a Parent Entity (or a subsidiary of a Parent Entity),
pursuant to this clause (k), (i) to enable the Parent Entity to pay Federal, state or local tax liabilities (any such payments to a Parent Entity, a “Tax Payment”), not to exceed the amount of any tax liabilities that would be otherwise
payable by the Company and its United States subsidiaries to the appropriate taxing authorities to the extent that the Parent Entity has an obligation to pay such tax liabilities relating to the operations, assets, or capital of the Company or its
United States subsidiaries; provided, that (x) notwithstanding the foregoing, in the case of determining the amount of a Tax Payment that is permitted to be paid by the Company and any of its United States subsidiaries in respect of their
consolidated Federal income tax liability, or consolidated, combined, unitary or group, state or local income tax liability, such payment shall be determined assuming that the Company is the parent company of an affiliated group (the “Company
Affiliated Group”) filing a consolidated Federal income tax return or consolidated, combined, unitary, or group, state or local income tax return, and that the Parent Entity and each such United States subsidiary is a member of the Company
Affiliated Group and (y) any Tax Payments shall either be used by the Parent Entity to pay such tax liabilities within 90 days of the Parent Entity’s (or a subsidiary of a Parent Entity) receipt of such payment or refunded to the payee, and
(ii) in an aggregate amount not to exceed (A) prior to an initial public offering by any Parent Entity, $500,000 per year and (B) after an initial public offering by any Parent Entity, $2,000,000 per year, in each case in order to pay legal and
accounting expenses, payroll and other compensation expenses in the ordinary course of business, filing and listing fees and other corporate overhead expenses in the ordinary course of business. For purposes of this clause (k), “tax
liabilities” shall include any penalties and interest related to a tax liability. 
  
 The full amount of any Restricted Payment made pursuant to the foregoing clauses (d), (e) and (i) (but not pursuant to clause (a), (b), (c), (f), (g), (h), (j) and (k)) of the immediately preceding sentence, however,
will be counted as Restricted Payments made for purposes of the calculation of the aggregate amount of Restricted Payments available to be made referred to in clause (3) of the first paragraph of this Section 4.9. 
  
 For purposes of this Section 4.9, the amount of any Restricted Payment made
or returned, if other than in cash, shall be the Fair Market Value thereof, as determined in the good faith reasonable judgment of the Company’s Board of Directors, unless stated otherwise, at the time made or returned, as applicable.

  

 55 

 SECTION 4.10 LIMITATION ON DIVIDENDS
AND OTHER PAYMENT RESTRICTIONS AFFECTING SUBSIDIARIES 
  
 The Company shall not and the Guarantors shall not, and neither the Company nor the Guarantors shall permit any of the Company’s Subsidiaries to,
directly or indirectly, create, assume or suffer to exist any consensual restriction on the ability of any of the Company’s Subsidiaries to pay dividends or make other distributions to or on behalf of, or to pay any obligation to or on behalf
of, or otherwise to transfer assets or property to or on behalf of, or make or pay loans or advances to or on behalf of, the Company or any of the Company’s Subsidiaries, except: 
  
 (1) restrictions imposed by the Notes or this Indenture or by the Company’s other Indebtedness (which may also be
guaranteed by the Guarantors) ranking senior or pari passu with the Notes or the Guarantees, as applicable, provided, that such restrictions are no more restrictive taken as a whole than those imposed by this Indenture and the Notes;

  
 (2) restrictions imposed by applicable law; 
  
 (3) existing restrictions on Existing Indebtedness; 
  
 (4) restrictions under any Acquired Indebtedness not incurred in violation of
this Indenture or any agreement (including any Equity Interest) relating to any property, asset, or business acquired by the Company or any of the Company’s Subsidiaries, which restrictions in each case existed at the time of acquisition, were
not put in place in connection with or in anticipation of such acquisition and are not applicable to any Person, other than the Person acquired, or to any property, asset or business, other than the property, assets and business so acquired;

  
 (5) restrictions imposed by Indebtedness incurred under the
Credit Agreement or other Senior Indebtedness incurred pursuant to Section 4.7 hereof; provided, that such restrictions are no more restrictive, taken as a whole, than those imposed by the Credit Agreement; 
  
 (6) restrictions with respect solely to any of the Company’s
Subsidiaries imposed pursuant to a binding agreement which has been entered into for the sale or disposition of all or substantially all of the Equity Interests or any assets of such Subsidiary; provided, that such restrictions apply solely
to the Equity Interests or assets of such Subsidiary which are being sold or, in the case of a sale of all or substantially all of the Equity Interests of a Subsidiary, the cash or Cash Equivalents held by such Subsidiary; 
  
 (7) restrictions on transfer contained in Purchase Money Indebtedness
incurred pursuant to Section 4.7 hereof; provided, that such restrictions relate only to the transfer of the property acquired, constructed, installed or improved with the proceeds of such Purchase Money Indebtedness; 
  
 (8) customary provisions with respect to the disposition or distribution of
assets in joint venture agreements and other similar agreements; 
  
 (9) restrictions on cash or other deposits or net worth requirements imposed by FTD-member florists or customers under contracts entered into in the ordinary course of business; 
  

 56 

 (10) restrictions contained in Indebtedness incurred under clause (b) under Section 4.7 hereof;

  
 (11) restrictions contained in Indebtedness incurred by a
Foreign Subsidiary in accordance with Section 4.7 hereof; provided, that such restrictions relate only to one or more Foreign Subsidiaries; and 
  
 (12) in connection with and pursuant to permitted refinancings, replacements of restrictions imposed pursuant to clauses (1), (3), (4), (7) or this clause
(12) of this paragraph that are not more restrictive taken as a whole than those being replaced and do not apply to any other Person or assets than those that would have been covered by the restrictions in the Indebtedness so refinanced. 

 
 Notwithstanding the foregoing, (a) customary provisions restricting
subletting or assignment of any lease entered into in the ordinary course of business, consistent with industry practice shall not be prohibited by the foregoing and (b) any asset subject to a Lien which is not prohibited to exist with respect to
such asset pursuant to the terms of this Indenture may be subject to customary restrictions on the transfer or disposition thereof pursuant to such Lien. 
  
 SECTION 4.11 LIMITATION ON TRANSACTIONS WITH AFFILIATES

  
 Neither the Company nor any of the Company’s
Subsidiaries shall be permitted on or after the Issue Date to enter into or suffer to exist any contract, agreement, arrangement or transaction with any Affiliate (an “Affiliate Transaction”), or any series of related Affiliate
Transactions (other than Exempted Affiliate Transactions), (1) unless it is determined that the terms of such Affiliate Transactions are fair and reasonable to the Company, and no less favorable to the Company than could have been obtained in an
arm’s length transaction with a non-Affiliate, and (2) if involving consideration to either party in excess of $5,000,000, unless such Affiliate Transaction(s) has been approved by a majority of the members of the Company’s Board of
Directors (including a majority of members of the Company’s Board of Directors that are disinterested in such transaction, if there are any directors who are so disinterested), and (3) if involving consideration to either party in excess of
$15,000,000, unless, in addition the Company, prior to the consummation thereof, obtain a written favorable opinion, which opinion can be subject to customary qualifications, as to the fairness of such transaction to the Company from a financial
point of view from an independent investment banking firm of national reputation in the United States or an appraisal or valuation firm of national reputation in the United States. Within 5 days of any Affiliate Transaction(s) involving
consideration to either party of $5,000,000 or more (other than Exempted Affiliate Transactions), the Company shall deliver to the Trustee an Officer’s Certificate addressed to the Trustee certifying that such Affiliate Transaction(s) were made
in compliance with this Indenture and a copy of the board resolutions and opinion as to the fairness of such transaction, as applicable. 
  
 SECTION 4.12 LIMITATION ON SALE OF ASSETS AND
SUBSIDIARY STOCK 
  
 The Company
shall not and the Guarantors shall not, and neither the Company nor the Guarantors shall permit any of the Company’s Subsidiaries to, in one or a series of related transactions, convey, sell, transfer, assign or otherwise dispose of, directly
or indirectly, any of their property, business or assets, including by merger or consolidation (in the case of one of the Company’s Subsidiaries), and including any sale or other transfer or issuance of any Equity Interests of any of the
Company’s Subsidiaries, whether by the Company or one of the 
  

 57 

 Company’s Subsidiaries or through the issuance, sale or transfer of Equity Interests by one of the Company’s
Subsidiaries and including any sale and leaseback transaction, other than in any such case to the Company or another Subsidiary (any of the foregoing, an “Asset Sale”), unless: 
  
 (1) at least 75% of the total consideration for such Asset Sale or series of related Asset Sales consists of cash, Cash
Equivalents, Related Business Assets or a combination thereof; 
  
 (2) with respect to any Asset Sale or related series of Asset Sales involving a conveyance, sale, transfer, assignment or other disposition of securities, property or assets with an aggregate Fair Market Value in excess of $2,000,000,
senior management determines in good faith that the Company shall receive or such Subsidiary shall receive, as applicable, Fair Market Value for such Asset Sale; and 
  
 (3) with respect to any Asset Sale or related series of Asset Sales involving a conveyance, sale, transfer, assignment or
other disposition of securities, property or assets with an aggregate Fair Market Value in excess of $5,000,000, the Company’s Board of Directors determines in good faith that the Company receive or such Subsidiary receives, as applicable, Fair
Market Value for such Asset Sale. 
  
 For purposes of clause (1)
above of this Section 4.12, the following shall be deemed cash consideration: (a) Senior Indebtedness or balance sheet liabilities (other than contingent liabilities) assumed by a transferee in connection with such Asset Sale; provided, that
the Company is and the Company’s Subsidiaries are fully released from obligations in connection therewith; and (b) property that within 90 days of such Asset Sale is converted into cash or Cash Equivalents; provided that such cash and
Cash Equivalents shall be treated as Net Cash Proceeds attributable to the original Asset Sale for which such property was received. 
  
 Within 365 days following such Asset Sale, the Net Cash Proceeds therefrom (the “Asset Sale Amount”) may be: 
  
 (a) invested in Related Business Assets, used to make Restricted Investments
that are not prohibited by Section 4.9 hereof, or used to make Permitted Investments other than those permitted by clauses (a), (b), (c), (f) and (g) of the definition of Permitted Investments; 
  
 (b) used to retire Senior Indebtedness or Indebtedness of the Company’s
Foreign Subsidiaries and, in the case of Indebtedness that was incurred pursuant to paragraph (c) of Section 4.7 hereof, to permanently reduce the amount of such Indebtedness that is permitted to be incurred pursuant to paragraph (c) of Section 4.7
hereof, provided, that in the case of a revolver or similar arrangement that makes credit available, such commitment is so permanently reduced by such amount; 
  
 (c) applied to the optional redemption of the Notes in accordance with the terms of this Indenture and to the optional
redemption of other Indebtedness pari passu with the Notes with similar provisions requiring the Company to repurchase such Indebtedness with the proceeds from such Asset Sale, pro rata in proportion to the respective principal amounts (or
accreted values in the case of Indebtedness issued with an original issue discount) of the Notes and such other Indebtedness then outstanding; or 
  
 (d) applied in any combination of the foregoing. 
  

 58 

 Pending the final application of any Net Cash Proceeds, the Company may temporarily reduce revolving credit borrowings or
otherwise invest the Net Cash Proceeds in any manner that is not prohibited by this Indenture. 
  
 The accumulated Net Cash Proceeds from Asset Sales not applied as set forth in the preceding paragraph shall constitute Excess Proceeds. Within 30 days after the date that the amount of Excess Proceeds exceeds
$15,000,000, the Company shall apply an amount equal to the Excess Proceeds (rounded down to the nearest $1,000) (the “Asset Sale Offer Amount”) by making an offer to repurchase the Notes and such other pari passu Indebtedness with
similar provisions requiring the Company to make an offer to purchase such Indebtedness with the proceeds from such Asset Sale pursuant to a cash offer (subject only to conditions required by applicable law, if any), pro rata in proportion to the
respective principal amounts (or accreted values in the case of Indebtedness issued with an original issue discount) of the Notes and such other Indebtedness then outstanding (the “Asset Sale Offer”). The Company will offer to purchase the
Notes in the Asset Sale Offer at a purchase price of 100% of the principal amount (or accreted value in the case of Indebtedness issued with an original issue discount) of the Notes (the “Asset Sale Offer Price”), together with accrued and
unpaid interest (and Liquidated Damages, if any) to the date of payment. Each Asset Sale Offer shall remain open for 20 Business Days following its commencement (the “Asset Sale Offer Period”). 
  
 Upon expiration of the Asset Sale Offer Period, the Company shall apply the
Asset Sale Offer Amount plus an amount equal to accrued and unpaid interest (and Liquidated Damages) if any, to the purchase of all Indebtedness properly tendered in accordance with the provisions hereof (on a pro rata basis if the Asset Sale Offer
Amount is insufficient to purchase all Indebtedness so tendered) at the Asset Sale Offer Price, together with accrued and unpaid interest (and Liquidated Damages, if any) to the date of payment, in the case of any Notes that have been tendered, and
the price required by the terms of any such other pari passu Indebtedness with similar provisions requiring the Company to make an offer to purchase such Indebtedness with the proceeds from such Asset Sale. To the extent that the aggregate
amount of Notes and such other pari passu Indebtedness tendered pursuant to an Asset Sale Offer is less than the Asset Sale Offer Amount, the Company may use any remaining Net Cash Proceeds for general corporate purposes as otherwise
permitted by this Indenture and following the consummation of each Asset Sale Offer the Excess Proceeds amount shall be reset to zero. 
  
 Notwithstanding, and without complying with, the provisions of this Section 4.12: 
  
 (1) the Company may and the Company’s Subsidiaries may, in the ordinary course of business, convey, sell, transfer,
assign or otherwise dispose of inventory and other assets acquired and held for resale in the ordinary course of business; 
  
 (2) the Company may and the Company’s Subsidiaries may liquidate Cash Equivalents; 
  
 (3) the Company may and the Company’s Subsidiaries may convey, sell, transfer, assign or otherwise dispose of assets
pursuant to and in accordance with Section 5.1; 
  
 (4) the
Company may and the Company’s Subsidiaries may sell or dispose of damaged, worn out or other obsolete personal property in the ordinary course of business so long as such property is no longer necessary for the proper conduct of the
Company’s business or the business of such Subsidiary, as applicable; 
  

 59 

 (5) the Company may and the Company’s Subsidiaries may surrender or waive contract rights or settle,
release or surrender contract, tort or other litigation claims in the ordinary course of business; 
  
 (6) the Company may and the Company’s Subsidiaries may grant Liens (and permit foreclosure thereon) not prohibited by this Indenture; 
  
 (7) the Company may and the Company’s Subsidiaries may sell or grant
licenses to use the Company’s or any Subsidiary’s intellectual property to the extent that such license does not prohibit the licensor from using such property; 
  
 (8) the Company may and the Company’s Subsidiaries may sell assets received by the Company or any Subsidiary upon the
foreclosure on a Lien; 
  
 (9) the Company may and the
Company’s Subsidiaries may sell or exchange equipment in connection with the purchase or other acquisition of other equipment; 
  
 (10) the Company may and the Company’s Subsidiaries may dispose any Capital Stock or other ownership interest in or assets or rights of an
Unrestricted Subsidiary; 
  
 (11) the Company may and the
Company’s Subsidiaries may make conveyances, sales, assignments or other dispositions that constitute Permitted Investments (excluding clauses (a), (b), (c), (f) and (g) in the definition thereof) and Restricted Payments not prohibited by
Section 4.9 hereof; and 
  
 (12) the Company may, and the
Company’s Subsidiaries may, in one or a series of related transactions, sell or dispose of assets for which the Company or the Company’s Subsidiaries receive aggregate consideration of less than $1,000,000. 
  
 All Net Cash Proceeds in excess of $1,000,000 from an Event of Loss shall be
reinvested or used as otherwise provided above in clauses (a) or (b) or the first paragraph of this Section 4.12. 
  
 Any Asset Sale Offer shall be made in compliance with all applicable laws, rules, and regulations, including, if applicable, Regulation 14E of the
Exchange Act and the rules and regulations thereunder and all other applicable Federal and state securities laws. To the extent that the provisions of any securities laws or regulations conflict with the provisions of this paragraph, the
Company’s compliance or the compliance of any of the Company’s Subsidiaries with such laws and regulations shall not in and of itself cause a breach of the Company’s obligations under this Section 4.12. 
  
 If the payment date in connection with an Asset Sale Offer hereunder is on or
after the Record Date for an Interest Payment Date and on or before the associated Interest Payment Date, any accrued and unpaid interest (and Liquidated Damages, if any) due on such Interest Payment Date will be paid to the Person in whose name a
note is registered at the close of business on such Record Date. 
  

 60 

 SECTION 4.13 REPURCHASE OF NOTES
AT THE OPTION OF THE HOLDER UPON A CHANGE OF CONTROL 
  
 In the event that a Change of Control has occurred, each Holder of Notes
will have the right, at such Holder’s option, pursuant to an offer (subject only to conditions required by applicable law, if any) by the Company (the “Change of Control Offer”), to require the Company to repurchase all or any part of
such Holder’s Notes (provided, that the principal amount of such Notes must be $1,000 or an integral multiple thereof) on a date (the “Change of Control Purchase Date”) that is no later than 60 calendar days after the
occurrence of such Change of Control, at a cash price equal to 101% of the principal amount thereof (the “Change of Control Purchase Price”), together with accrued and unpaid interest (and Liquidated Damages, if any), to the Change of
Control Purchase Date. 
  
 The Change of Control Offer shall be
made within 30 calendar days following a Change of Control and shall remain open for 20 Business Days following its commencement, or such other period as may be required by applicable law (the “Change of Control Offer Period”). Upon
expiration of the Change of Control Offer Period, the Company shall purchase all Notes properly tendered in response to the Change of Control Offer. 
  
 Notwithstanding the foregoing, the Company shall not be required to make a Change of Control Offer upon a Change of Control if (1) a third party makes the
Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements set forth in this Indenture applicable to a Change of Control Offer made by the Company, including any requirements to repay in full all
Indebtedness under the Credit Agreement, any of the Company’s other Senior Indebtedness or Senior Indebtedness of any Guarantor or obtain the consents of such lenders to such Change of Control Offer as set forth in the following paragraph, and
purchases all Notes validly tendered and not withdrawn under such Change of Control Offer or (2) the Company provides the notice described above in the Section 3.7(c) in a timely manner. 
  
 Prior to the commencement of a Change of Control Offer, but in any event within 60 days following any Change of Control, the
Company will: 
  
 (1) (a) repay in full in cash and terminate all
commitments under Indebtedness under the Credit Agreement and all other Senior Indebtedness the terms of which require repayment upon a Change of Control or (b) offer to repay in full and terminate all commitments under all Indebtedness under the
Credit Agreement and all such other Senior Indebtedness and repay the Indebtedness owed to each lender which has accepted such offer in full; or 
  
 (2) obtain the requisite consents under the Credit Agreement and all such other Senior Indebtedness to permit the repurchase of the Notes as provided
herein. 
  
 The Company’s failure to comply with the preceding sentence shall
constitute an Event of Default described in Section 6.1(c) hereof. 
  
 On or
before the Change of Control Purchase Date, the Company will: 
  
 (1) accept for payment Notes or portions thereof properly tendered pursuant to the Change of Control Offer; 
  

 61 

 (2) deposit with the Paying Agent cash sufficient to pay the Change of Control Purchase Price (together
with accrued and unpaid interest (and Liquidated Damages, if any) to the Change of Control Purchase Date) of all Notes so tendered; and 
  
 (3) deliver or cause to be delivered to the Trustee the Notes so accepted together with an Officers’ Certificate listing the Notes or portions
thereof being purchased by the Company. 
  
 The Company will
promptly pay or cause to be paid to the Holders of the Notes so accepted an amount equal to the Change of Control Purchase Price (together with accrued and unpaid interest (and Liquidated Damages, if any) to the Change of Control Purchase Date) and
the Trustee promptly will authenticate and deliver to such Holders a new Note equal in principal amount to any unpurchased portion of the Note surrendered. Any Notes not so accepted will be delivered promptly by the Company to the Holder thereof.
The Company will publicly announce the results of the Change of Control Offer on or as soon as practicable after the Change of Control Purchase Date. 
  
 Any Change of Control Offer will be made in compliance with all applicable laws, rules and regulations, including, if applicable, Regulation 14E under the
Exchange Act and the rules thereunder and all other applicable Federal and state securities laws. To the extent that the provisions of any securities laws or regulations conflict with the provisions of this Section 4.13, the Company’s
compliance or compliance by any of the Guarantors with such laws and regulations shall not in and of itself cause a breach of their obligations under this Section 4.13. 
  
 If the Change of Control Purchase Date hereunder is on or after an interest payment Record Date and on or before the
associated Interest Payment Date, any accrued and unpaid interest (and Liquidated Damages, if any) due on such Interest Payment Date will be paid to the Person in whose name a note is registered at the close of business on such Record Date.

  
 SECTION 4.14 SUBSIDIARY
GUARANTORS 
  
 (a) The Company shall cause all of
the Company’s present and future Subsidiaries other than the Company’s Foreign Subsidiaries, to jointly and severally guaranty all principal, premium, if any, and interest on the Notes on a senior subordinated basis by executing a
supplemental indenture, substantially in the form attached as Exhibit E. 
  
 (b) Notwithstanding anything herein to the contrary, if any of the Company’s Subsidiaries (including Foreign Subsidiaries) that is not a Guarantor guarantees any of the Company’s other Indebtedness or any
other Indebtedness of the Guarantors, or the Company or any of the Company’s Subsidiaries, individually or collectively, pledges more than 66% of the Voting Equity Interests of a Subsidiary (including Foreign Subsidiaries) that is not a
Guarantor to a lender to secure the Company’s Indebtedness or any Indebtedness of any Guarantor, then such Subsidiary must become a Guarantor by executing a supplemental indenture, substantially in the form attached as Exhibit E. 
  
 SECTION 4.15 LIMITATION ON
STATUS AS INVESTMENT COMPANY 
  
 The Company and its Subsidiaries shall be prohibited from being required to register as an “investment company” (as that term is defined in the Investment Company Act of 1940, as amended (the
“Investment Company Act”)), or from otherwise becoming subject to regulation under the Investment Company Act. 
  

 62 

 SECTION 4.16 MAINTENANCE OF PROPERTIES
AND INSURANCE 
  
 The Company and
the Guarantors shall cause all material properties used or useful to the conduct of their business and the business of each of their Subsidiaries to be maintained and kept in good condition, repair and working order (reasonable wear and tear
excepted) and supplied with all necessary equipment and shall cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in their reasonable judgment may be necessary, so that the business carried on
in connection therewith may be properly conducted at all times; provided, however, that nothing in this Section 4.16 shall prevent the Company or any Guarantor from discontinuing any operation or maintenance of any of such properties, or
disposing of any of them, if such discontinuance or disposal is (a) (i) in the judgment of the Board of Directors of the Company, desirable in the conduct of the business of such entity and (ii) would not have a material adverse effect on the
ability of the Company and the Guarantors to satisfy their obligations under the Notes, the Guarantees and this Indenture, and, to the extent applicable, (b) as otherwise permitted under Section 4.12 hereof. 
  
 The Company and Guarantors shall provide, or cause to be provided, for
themselves and each of their Subsidiaries, insurance (including appropriate self-insurance) against loss or damage of the kinds that, in the reasonable, good faith opinion of the Board of Directors of the Company is adequate and appropriate for the
conduct of the business of the Company, the Guarantors and such Subsidiaries. 
  
 SECTION 4.17 CORPORATE EXISTENCE 
  
 Subject to Article V hereof, the Company shall do or cause to be done all things necessary to preserve and keep in full force and effect (i) its corporate
existence, and the corporate, partnership or other existence of each of its Subsidiaries, in accordance with the respective organizational documents (as the same may be amended from time to time) of the Company or any such Subsidiary and (ii) the
rights (charter and statutory), licenses and franchises of the Company and its Subsidiaries; provided, however, that the Company shall not be required to preserve any such right, license or franchise, or the corporate, partnership or other
existence of any of its Subsidiaries, if the Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and its Subsidiaries, taken as a whole, and that the loss thereof
would not have a material adverse effect on the ability of the Company to satisfy its obligations under the Notes and this Indenture. 
  
 SECTION 4.18 LIMITATION ON ACTIVITIES PRIOR TO
CONSUMMATION OF THE MERGER 
  
 Prior to consummation of the Merger, except in connection with the consummation of the Merger and the Related Financing Transactions, Nectar Merger Corporation shall not engage in any business activities and shall not
incur any Indebtedness (other than the Notes), grant any Liens (other than Liens securing the Notes) or make any Restricted Payments; provided, that, in the event of a Triggering Event, the Company will redeem the Notes in accordance with the
Mandatory Redemption provisions described under Section 3.8 hereof. 
  
 SECTION 4.19 LIMITATION ON LAYERING INDEBTEDNESS 
  
 The Company shall not and the Guarantors shall not, and neither the Company nor the Guarantors will permit any of the Company’s Subsidiaries to,
directly or indirectly, incur, or suffer to exist any Indebtedness that is contractually subordinate in right of payment to any of the Company’s other Indebtedness or any other Indebtedness of a Guarantor unless, by its terms, such Indebtedness
is contractually subordinate in right of payment to, or ranks pari passu with, the Notes or the Guarantee, as applicable. 
  

 63 

 SECTION 4.20 LIMITATION ON ABILITY
OF COMPANY TO RELEASE FUNDS FROM SECURED PROCEEDS ACCOUNT. 
  
 The Company agrees that (i) the terms of the Security Agreement shall
exclusively control the conditions under which and procedures pursuant to which the Secured Proceeds can be released and (ii) it shall not attempt to release funds from the secured proceeds account except in accordance with the Security Agreement.

  
 ARTICLE V 
 SUCCESSORS 
  
 SECTION 5.1 MERGER, CONSOLIDATION OR SALE OF
ASSETS 
  
 Except for the Merger, the Company
shall not consolidate with or merge with or into another Person or, directly or indirectly, sell, lease, convey or transfer all or substantially all of the Company’s assets (such amounts to be computed on a consolidated basis), whether in a
single transaction or a series of related transactions, to another Person or group of affiliated Persons or adopt a plan of liquidation, unless: 
  
 (1) either (a) the Company is the continuing entity or (b) the resulting, surviving or transferee entity or, in the case of a plan of liquidation, the
entity which receives the greatest value from such plan of liquidation is a corporation organized under the laws of the United States, any state thereof or the District of Columbia and expressly assumes by supplemental indenture all of the
Company’s obligations in connection with the Notes and this Indenture; 
  
 (2) no Default or Event of Default shall exist or shall occur immediately after giving effect on a pro forma basis to such transaction; 
  
 (3) unless such transaction is solely the merger of the Company and one of the Company’s previously existing Wholly
Owned Subsidiaries which is also a Guarantor for the purpose of reincorporation into another jurisdiction, which transaction is not for the purpose of evading the restrictions imposed by this Indenture, immediately after giving effect to such
transaction on a pro forma basis, the consolidated resulting, surviving or transferee entity would immediately thereafter be permitted to incur at least $1.00 of additional Indebtedness pursuant to the Debt Incurrence Ratio set forth in
Section 4.7 hereof or, if not, the Debt Incurrence Ratio on a pro forma basis is at least equal to the Debt Incurrence Ratio immediately prior thereto; and 
  
 (4) each Guarantor shall have, by amendment to its Guarantee and, as applicable this Indenture, if necessary confirmed in
writing that its Guarantee shall apply to the obligations of the Company or the surviving entity in accordance with the Notes and this Indenture. 
  
 SECTION 5.2 SUCCESSOR CORPORATION SUBSTITUTED 
  
 Upon any consolidation or merger or any transfer of all or substantially all
of the Company’s assets in accordance with the foregoing, the successor corporation formed by such 
  

 64 

 consolidation or into which the Company is merged or to which such transfer is made shall succeed to and (except in the
case of a lease or any transfer of all or substantially all of the Company’s assets) 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 therein as the Company, and (except in the case of a lease or any transfer of all or substantially all of the Company’s assets) the Company shall be released from the obligations under the Notes and this Indenture except with respect to
any obligations that arise from, or are related to, such transaction. 
  
 For purposes of the foregoing, the transfer (by lease, assignment, sale or otherwise) of all or substantially all of the properties and assets of one or more Subsidiaries, the Company’s interest in which constitutes all or
substantially all of the Company’s properties and assets, shall be deemed to be the transfer of all or substantially all of the Company’s properties and assets. 
  
 ARTICLE VI 
 DEFAULTS AND REMEDIES 
  
 SECTION
6.1 EVENTS OF DEFAULT 
  
 “Event of Default,” wherever used herein, means any one of the following events: 
  
 (a) the Company’s failure to pay any installment of interest (or Liquidated Damages, if any) on the Notes as and when the same becomes due and
payable and the continuance of any such failure for 30 days; 
  
 (b) the Company’s failure to pay all or any part of the principal, or premium, if any, on the Notes when and as the same becomes due and payable at maturity, redemption, by acceleration or otherwise, including, without limitation,
payment of the Change of Control Purchase Price or the Asset Sale Offer Price, on Notes validly tendered and not properly withdrawn pursuant to a Change of Control Offer or Asset Sale Offer, as applicable; 
  
 (c) the Company’s failure or the failure by any of the Company’s
Subsidiaries to observe or perform any other covenant or agreement contained in the Notes or this Indenture and, except for the provisions under Section 3.8, Section 4.13, and Section 5.1 hereof, the continuance of such failure for a period of 30
days after written notice is given to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in aggregate principal amount of the Notes outstanding; 
  
 (d) a default in the Company’s Indebtedness or the Indebtedness any of the Company’s Subsidiaries with an
aggregate amount outstanding in excess of $15,000,000 (a) resulting from the failure to pay principal at maturity or (b) as a result of which the maturity of such Indebtedness has been accelerated prior to its stated maturity; 
  
 (e) final unsatisfied judgments not covered by insurance aggregating in
excess of $15,000,000, at any one time rendered against the Company or any of the Company’s Subsidiaries and not stayed, bonded or discharged within 60 days; and 
  
 (f) any Guarantee of a Guarantor that is a Significant Subsidiary ceases to be in full force and effect or becomes
unenforceable or invalid or is declared null and void (other than in accordance with the terms of the Guarantee and this Indenture) or any Guarantor denies or disaffirms its Obligations under its Guarantee. 
  

 65 

 (g) a court having jurisdiction in the premises enters a decree or order for (A) relief in respect of the
Company or any Significant Subsidiary in an involuntary case under any applicable Bankruptcy Law now or hereafter in effect, (B) appointment of a receiver, liquidator, assignee, Custodian, trustee, sequestrator or similar official of the Company or
any Significant Subsidiary or for all or substantially all of the property and assets of the Company or any Significant Subsidiary or (C) the winding up or liquidation of the affairs of the Company or any Significant Subsidiary and, in each case,
such decree or order shall remain unstayed and in effect for a period of 60 consecutive days; or 
  
 (h) the Company or any Significant Subsidiary (A) commences a voluntary case under any applicable Bankruptcy Law now or hereafter in effect, or consents
to the entry of an order for relief in an involuntary case under any such law, (B) consents to the appointment of or taking possession by a receiver, liquidator, assignee, Custodian, trustee, sequestrator or similar official of the Company or any
Significant Subsidiary or for all or substantially all of the property and assets of the Company or any Significant Subsidiary or (C) effects any general assignment for the benefit of creditors. 
  
 If a Default occurs and is continuing, the Trustee must, within 90 days after the receipt of
notice of such Default, give to the Holders notice of such Default. 
  
 SECTION 6.2 ACCELERATION 
  
 (a) If an Event of Default occurs and is continuing (other than an Event of Default specified in Sections 6.1 (g) or (h) hereof relating to the Company or any of the Company’s Significant Subsidiaries,) then in
every such case, unless the principal of all of the Notes shall have already become due and payable, either the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes then outstanding, by notice in writing to the Company
(and to the Trustee if given by Holders) (an “Acceleration Notice”), may declare all principal, determined as set forth below, and accrued interest (and Liquidated Damages, if any) thereon to be due and payable immediately; provided,
however, that if any Senior Indebtedness is outstanding pursuant to the Credit Agreement, upon a declaration of such acceleration, such principal and interest shall be due and payable upon the earlier of (x) the fifth Business Day after sending
the Company and the representative under the Credit Agreement such written notice, unless such Event of Default is cured or waived prior to such date and (y) the date of acceleration of any Senior Indebtedness under the Credit Agreement. In the
event a declaration of acceleration resulting from an Event of Default described in Section 6.1(d) hereof has occurred and is continuing, such declaration of acceleration shall be automatically annulled if such default is cured or waived or the
Holders of the Indebtedness which is the subject of such default have rescinded their declaration of acceleration in respect of such Indebtedness within 30 days thereof and the Trustee has received written notice of such cure, waiver or rescission
and no other Event of Default described in Section 6.1(d) hereof has occurred that has not been cured or waived within 30 days of the declaration of such acceleration in respect of such Indebtedness. If an Event of Default specified in Sections
6.1(g) and (h) hereof, relating to the Company or any of the Company’s Significant Subsidiaries occurs, all principal and accrued interest (and Liquidated Damages, if any) thereon will be immediately due and payable on all outstanding Notes
without any declaration or other act on the part of the Trustee or the Holders. The Holders of a majority in aggregate principal amount of Notes generally are authorized to rescind such acceleration if all existing Events of Default, other than the
non-payment of the principal of, premium, if any, and interest (and Liquidated Damages, if any) on the Notes which have become due solely by such acceleration, have been cured or waived. 
  

 66 

 (b) Prior to the declaration of acceleration of the maturity of the Notes, the Holders of a majority in
aggregate principal amount of the Notes at the time outstanding may waive on behalf of all the Holders any Default, except a Default in the payment of principal of or interest on any Note not yet cured or a Default with respect to any covenant or
provision which cannot be modified or amended without the consent of the Holder of each outstanding Note affected. Subject to the provisions of this Indenture relating to the duties of the Trustee, the Trustee will be under no obligation to exercise
any of its rights or powers under this Indenture at the request, order or direction of any of the Holders, unless such Holders have offered to the Trustee reasonable security or indemnity. 
  
 (c) The Holders of a majority in aggregate principal amount of the then
outstanding Notes, by written notice to the Trustee, may, on behalf of all of the Holders, rescind an acceleration or waive any existing Default or Event of Default and its consequences if the rescission would not conflict with any judgment or
decree and if all existing Events of Default (except nonpayment of principal, interest, premium or Liquidated Damages, if any, that has become due solely because of the acceleration have been cured or waived. 
  
 (d) Notwithstanding clause (c) of this Section 6.2, no waiver shall be
effective against any Holder for any Event of Default or event which with notice or lapse of time or both would be an Event of Default with respect to any covenant or provision which cannot be modified or amended without the consent of the Holder of
each outstanding Note affected thereby, unless all such affected Holders agree, in writing, to waive such Event of Default or other event. No such waiver shall cure or waive any subsequent default or impair any right consequent thereon. 

 
 SECTION 6.3 OTHER REMEDIES

  
 If an Event of Default occurs and is continuing, the Trustee
may pursue any available remedy to collect the payment of principal, premium, if any, Liquidated Damages, if any, and interest on the Notes or to enforce the performance of any provision of the Notes or this Indenture. 
  
 The Trustee may maintain a proceeding even if it does not possess any of the
Notes or does not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder of a Note in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or
acquiescence in the Event of Default. All remedies are cumulative to the extent permitted by law. 
  
 SECTION 6.4 WAIVER OF PAST DEFAULTS 
  
 Subject to Section 6.7 hereof, the Holders of at least a majority in
principal amount of the outstanding Notes by written notice to the Company and to the Trustee, may, on behalf of all Holders, waive any existing or past Default or Event of Default hereunder and its consequences under this Indenture, except a
continuing Default or Event of Default in the payment of the principal of, premium, and Liquidated Damages, if any, or interest on the Notes (including in connection with an offer to purchase); provided, however, that the Holders of a
majority in aggregate principal amount of the then outstanding Notes may rescind an acceleration and its consequences, including any related Payment Default that resulted from such acceleration. 
  

 67 

 Upon any such waiver, such default shall cease to exist, and any Event of Default arising therefrom shall
be deemed to have been cured for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other default or impair any right arising therefrom. 
  
 SECTION 6.5 CONTROL BY MAJORITY 
  
 Subject to the provisions of this Indenture and applicable law, Holders of
at least a majority in aggregate principal amount of the then outstanding Notes may direct the time, method and place of conducting any proceeding for exercising any remedy available to the Trustee or exercising any trust or power conferred on it.
However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture, that the Trustee determines in good faith may be unduly prejudicial to the rights of other Holders of Notes not joining in the giving of such
direction or that may involve the Trustee in personal liability and the Trustee may take any other action it deems proper that is not inconsistent with any such direction received from Holders of the Notes. 
  
 SECTION 6.6 LIMITATION ON
SUITS 
  
 A Holder of a Note may pursue a remedy
with respect to this Indenture or the Notes only if: 
  
 (a) the
Holder of a Note gives to the Trustee written notice of a continuing Event of Default; 
  
 (b) the Holders of at least 25% in aggregate principal amount of the then outstanding Notes make a written request to the Trustee to pursue the remedy; 
  
 (c) such Holder of a Note or Holders of Notes offer and, if requested, provide to the Trustee indemnity satisfactory to the
Trustee against any costs, liability or expense; 
  
 (d) the
Trustee does not comply with the request within 60 days after receipt of the request and the offer and, if requested, the provision of indemnity; and 
  
 (e) during such 60-day period the Holders of a majority in principal amount of the then outstanding Notes do not give the Trustee a direction inconsistent
with the request. 
  
 A Holder of a Note may not use this Indenture to prejudice
the rights of another Holder of a Note or to obtain a preference or priority over another Holder of a Note. 
  
 SECTION 6.7 RIGHTS OF HOLDERS OF NOTES TO
RECEIVE PAYMENT 
  
 Notwithstanding
any other provision of this Indenture, except as permitted by Section 9.2 hereof, the right of any Holder of a Note to receive payment of the principal of, premium and Liquidated Damages, if any, and interest on the Note, on or after the respective
due dates expressed in the Note or to bring suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected without the consent of such Holder. 
  

 68 

 SECTION 6.8 COLLECTION SUIT BY
TRUSTEE 
  
 If an Event of Default specified in
Section 6.1 hereof occurs and is continuing, the Trustee is authorized to recover judgment in its own name and as trustee of an express trust against the Company for the whole amount of principal of, premium and Liquidated Damages, if any, and
interest remaining unpaid on the Notes and interest on overdue principal and, to the extent lawful, interest and such further amount as 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 6.9 TRUSTEE MAY FILE PROOFS OF CLAIM 
  
 The Trustee is authorized to file such proofs of claim and other papers or documents as may be necessary or advisable in
order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and the Holders of the Notes allowed in any judicial proceedings relative to
the Company (or any other obligor upon the Notes), its creditors or its property and shall be entitled and empowered to collect, receive and distribute any money or other property payable or deliverable on any such claims and any custodian in any
such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee, and in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due to it for
the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.7 hereof. To the extent that the payment of any such compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.7 hereof out of the estate in any such proceeding, shall be denied for any reason, payment of the same shall be secured by a
Lien on, and shall be paid out of, any and all distributions, dividends, money, securities and other properties that the Holders may be entitled to receive in such proceeding whether in liquidation or under any plan of reorganization or arrangement
or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the
rights of any Holder, or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding; provided, however that the Trustee may, on behalf of the Holders, vote for the election of a trustee in bankruptcy or similar
official and may be a member of the creditor’s committee. 
  
 SECTION 6.10 PRIORITIES 
  
 If the Trustee collects any money pursuant to this Article VI, it shall pay out the money in the following order: 
  
 First: to the Trustee, its agents and attorneys for amounts due under Section 7.7 hereof, including payment of all compensation, expense and
liabilities incurred, and all advances made, by the Trustee and the costs and expenses of collection (including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel); 
  
 Second: to Holders of Notes for amounts due and unpaid on the Notes
for principal and Liquidated Damages, if any, and interest, ratably, without preference or priority of any kind, according to the amounts due and payable on the Notes for principal, premium and Liquidated Damages, if any, and interest, respectively;
and 
  

 69 

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

  
 The Trustee may fix a Record Date and payment date for any
payment to Holders of Notes 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 a
Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant. This Section 6.11 does not apply to a suit by the Trustee, a suit by a Holder of a Note pursuant to Section
6.7 hereof, or a suit by Holders of more than 10% in principal amount of the then outstanding Notes. 
  
 ARTICLE VII 
 TRUSTEE 
  
 SECTION 7.1 DUTIES OF
TRUSTEE 
  
 (a) If an Event of Default of which
the Trustee has knowledge 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 its exercise, as a prudent person would exercise or use
under the circumstances in the conduct of such person’s own affairs. 
  
 (b) Except during the continuance of an Event of Default of which the Trustee has knowledge: 
  
 (i) the duties of the Trustee shall be determined solely by the express provisions of this Indenture and the Trustee need perform only those duties that
are specifically set forth in this Indenture and no others, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and 
  

(ii) in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture. However, the Trustee shall examine the certificates and opinions to determine whether or not they conform to the
requirements of this Indenture. 
  
 (c) The Trustee may not be
relieved from liabilities for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that: 
  
 (i) this paragraph (c) does not limit the effect of paragraph (b) of this Section 7.1; 
  
 (ii) the Trustee shall not be liable for any error of judgment made in good faith by an Officer of the Trustee, unless it is
proved that the Trustee was negligent in ascertaining the pertinent facts; and 
  

 70 

 (iii) the Trustee shall not be liable with respect to any action it takes or omits to take in good faith
in accordance with a direction received by it pursuant to Section 6.5 hereof. 
  
 (d) Whether or not therein expressly so provided, every provision of this Indenture that in any way relates to the Trustee is subject to Sections 7.1 and 7.2 hereof. 
  
 (e) No provision of this Indenture shall require the Trustee to expend or
risk its own funds or incur any liability. The Trustee shall be under no obligation to exercise any of its rights and powers under this Indenture at the request of any Holders, unless such Holder shall have offered to the Trustee security and
indemnity satisfactory to it against any loss, liability or expense. 
  
 (f) The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be segregated from other funds except to the extent
required by law. 
  
 SECTION 7.2
RIGHTS OF TRUSTEE 
  
 (a) In connection with the Trustee’s rights and duties under this Indenture, the Trustee may conclusively rely upon any document believed by it to be genuine and to have been signed or presented by the proper Person. The Trustee need
not investigate any fact or matter stated in the document. 
  
 (b)
Before the Trustee acts or refrains from acting under this Indenture, it may require an Officers’ Certificate or an Opinion of Counsel or both. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance
on such Officers’ Certificate or Opinion of Counsel. The Trustee may consult with counsel and the written advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection from liability in respect of any
action taken, suffered or omitted by it hereunder in good faith and in reliance thereon. 
  
 (c) The Trustee may act through its attorneys and agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care. 
  
 (d) The Trustee shall not be liable for any action it takes or omits to take
in good faith that it believes to be authorized or within the rights or powers conferred upon it by this Indenture. 
  
 (e) Unless otherwise specifically provided in this Indenture, any demand, request, direction or notice from the Company shall be sufficient if signed by
an Officer of the Company. 
  
 (f) 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 Holders unless such Holders shall have offered to the Trustee reasonable security or indemnity against the costs, expenses
and liabilities that might be incurred by it in compliance with such request or direction. 
  
 (g) Except with respect to Section 4.1 hereof, the Trustee shall have no duty to inquire as to the performance of the Company’s covenants in Article IV hereof. In addition, the Trustee shall not be deemed to have
knowledge of any Default or Event of Default 
  

 71 

 except (i) any Event of Default occurring pursuant to Sections 6.1(a), 6.1(b) and 4.1 hereof or (ii) any Default or Event
of Default of which the Trustee shall have received written notification in the manner set forth in this Indenture or an officer in the corporate trust administration of the Trustee shall have obtained actual knowledge. Delivery of reports,
information and documents to the Trustee under Section 4.3 hereof is for informational purposes only and the Trustee’s receipt of the foregoing shall not constitute constructive notice of any information contained therein or determinable from
information contained therein, including the Company’s or any Guarantor’s, as applicable, compliance with any of their covenants thereunder (as to which the Trustee is entitled to rely exclusively on an Officer’s Certificate).

  
 (h) The Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee
may, in its discretion, make such further inquiry or investigation into such facts or matters as it may see fit. 
  
 SECTION 7.3 INDIVIDUAL RIGHTS OF TRUSTEE 
  
 The Trustee in its individual or any other capacity may become the owner or
pledgee of Notes and may otherwise deal with the Company or any Affiliate of the Company with the same rights it would have if it were not Trustee. However, in the event that the Trustee acquires any conflicting interest (as defined in the TIA) it
must eliminate such conflict within 90 days, apply to the Commission for permission to continue as Trustee (if this Indenture has been qualified under the TIA) or resign. Any Agent may do the same with like rights and duties. The Trustee is also
subject to Sections 7.10 and 7.11 hereof. 
  
 SECTION 7.4 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 Notes, it shall not be accountable for the Company’s use of the proceeds from the Notes
or any money paid to the Company or upon the Company’s direction under any provision of this Indenture, it shall not be responsible for the use or application of any money received by any Paying Agent other than the Trustee, and it shall not be
responsible for any statement or recital herein or any statement in the Notes or any other document in connection with the sale of the Notes or pursuant to this Indenture other than its certificate of authentication. 
  
 SECTION 7.5 NOTICE OF
DEFAULTS 
  
 If a Default or Event of Default
occurs and is continuing and if it is known to the Trustee, the Trustee shall mail to Holders of Notes a notice in the manner and to the extent provided by Section 313(c) of the TIA of the Default or Event of Default within 90 days after it occurs.
Except in the case of a Default or Event of Default in payment of principal of, premium, if any, Liquidated Damages, if any, or interest on any Note, the Trustee may withhold the notice if and so long as a committee of its Officers in good faith
determines that withholding the notice is in the interests of the Holders of the Notes. 
  
 SECTION 7.6 REPORTS BY TRUSTEE TO HOLDERS OF
THE NOTES 
  
 Within 60 days after
each May 15 beginning with the May 15 following the date of this Indenture, and for so long as Notes remain outstanding, the Trustee shall mail to the 
  

 72 

 Holders of the Notes a brief report dated as of such reporting date that complies with TIA § 313(a) (but if no event
described in TIA § 313(a) has occurred within the 12 months preceding the reporting date, no report need be transmitted). The Trustee also shall comply with TIA § 313(b)(2). The Trustee shall also transmit by mail all reports as required
by TIA § 313(c). 
  
 A copy of each report at the time of its
mailing to the Holders of Notes shall be mailed by the Trustee to the Company and filed with the Commission and each stock exchange on which the Notes are listed in accordance with TIA § 313(d). The Company shall promptly notify the Trustee
when the Notes are listed on any stock exchange. 
  
 SECTION 7.7 COMPENSATION AND INDEMNITY 
  
 The Company shall pay to the Trustee from time to time reasonable compensation for its acceptance of this Indenture and services hereunder. The Trustee’s compensation shall not be limited by any law on
compensation of a trustee of an express trust. The Company shall reimburse the Trustee promptly upon request for all reasonable disbursements, advances and expenses incurred or made by it in addition to the compensation for its services. Such
expenses shall include the reasonable compensation, disbursements and expenses of the Trustee’s agents and counsel. 
  
 The Company shall indemnify the Trustee against any and all losses, liabilities or expenses (including reasonable attorneys’ fees) incurred by it
arising out of or in connection with the acceptance or administration of its duties under this Indenture, including the costs and expenses of enforcing this Indenture against the Company (including this Section 7.7) and defending itself against any
claim (whether asserted by the Company or any Holder or any other Person) or liability in connection with the exercise or performance of any of its powers or duties hereunder, except to the extent any such loss, liability or expense may be
attributable to its negligence, bad faith or willful misconduct. The Trustee shall notify the Company promptly of any claim for which it may seek indemnity. Failure by the Trustee to so notify the Company shall not relieve the Company of its
obligations hereunder. The Company shall defend the claim and the Trustee shall cooperate in the defense. The Trustee may have separate counsel and the Company shall pay the reasonable fees and expenses of such counsel. The Company need not pay for
any settlement made without its consent, which consent shall not be unreasonably withheld. 
  
 The obligations of the Company under this Section 7.7 shall survive the satisfaction and discharge of this Indenture. 
  
 To secure the Company’s payment obligations in this Section 7.7, the Trustee shall have a Lien prior to the Notes on all money or property held or
collected by the Trustee, except that held in trust to pay principal and interest on particular Notes. Such Lien shall survive the satisfaction and discharge of this Indenture. 
  
 When the Trustee incurs expenses or renders services after an Event of Default specified in Sections 6.1(g) or 6.1(h) hereof
occurs, the expenses and the compensation for the services (including the fees and expenses of its agents and counsel) are intended to constitute expenses of administration under any Bankruptcy Law. 
  
 The Trustee shall comply with the provisions of TIA § 313(b)(2) to the
extent applicable. 
  

 73 

 SECTION 7.8 REPLACEMENT OF TRUSTEE

  
 A resignation or removal of the Trustee and appointment of a
successor Trustee shall become effective only upon the successor Trustee’s acceptance of appointment as provided in this Section 7.8. 
  
 The Trustee may resign in writing at any time and be discharged from the trust hereby created by so notifying the Company. The Holders of Notes of a
majority in principal amount of the then outstanding Notes may remove the Trustee by so notifying the Trustee and the Company in writing. The Company may remove the Trustee if: 
  
 (a) the Trustee fails to comply with Section 7.10 hereof; 
  
 (b) the Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with respect to the Trustee under
any Bankruptcy Law; 
  
 (c) a Custodian or public officer takes
charge of the Trustee or its property; or 
  
 (d) the Trustee
becomes incapable of acting. 
  
 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. Within one year after the successor Trustee takes office, the Holders of a majority in principal amount of the then
outstanding Notes may appoint a successor Trustee to replace the successor Trustee appointed by the Company. 
  
 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 Notes of at least 10% in principal amount of the then outstanding Notes may petition any court of competent jurisdiction for the appointment of a successor Trustee. 
  
 If the Trustee, after written request by any Holder of a Note who has been a Holder of a Note for at least six months, fails
to comply with Section 7.10 hereof, such Holder of a Note 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.
Thereupon, the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. The successor Trustee shall mail a notice of its
succession to Holders of the Notes. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee; provided, all sums owing to the Trustee hereunder have been paid and subject to the Lien provided
for in Section 7.7 hereof. Notwithstanding replacement of the Trustee pursuant to this Section 7.8, the Company’s obligations under Section 7.7 hereof shall continue for the benefit of the retiring Trustee. 
  

 74 

 SECTION 7.9 SUCCESSOR TRUSTEE BY
MERGER, ETC. 
  
 If the Trustee
consolidates, merges or converts into, or transfers all or substantially all of its corporate trust business to, another corporation, the successor corporation without any further act shall be the successor Trustee. 
  
 SECTION 7.10 ELIGIBILITY;
DISQUALIFICATION 
  
 There shall at all times be a
Trustee hereunder that is a corporation or trust company (or a member of a bank holding company) organized and doing business under the laws of the United States of America or of any state thereof that is authorized under such laws to exercise
corporate trustee power, that is subject to supervision or examination by federal or state authorities and that has (or the bank holding company of which it is a member has) a combined capital and surplus of at least $50,000,000 as set forth in its
most recent published annual report of condition. 
  
 This
Indenture shall always have a Trustee who satisfies the requirements of TIA § 310(a)(1), (2) and (5). The Trustee is subject to TIA § 310(b). 
  
 SECTION 7.11 PREFERENTIAL COLLECTION OF CLAIMS AGAINST
COMPANY 
  
 The Trustee is subject to TIA §
311(a), excluding any creditor relationship listed in TIA § 311(b). A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent indicated therein. 
  
 ARTICLE VIII 
 LEGAL DEFEASANCE AND COVENANT DEFEASANCE 
 AND SATISFACTION AND DISCHARGE 
  
 SECTION 8.1 OPTION TO
EFFECT LEGAL DEFEASANCE OR COVENANT DEFEASANCE 
  
 The Company may, at the option of its Board of Directors evidenced by a resolution set forth in an Officers’ Certificate, at any time, elect to have
either Section 8.2 or 8.3 hereof be applied to all outstanding Notes upon compliance with the conditions set forth below in this Article VIII. 
  
 SECTION 8.2 LEGAL DEFEASANCE AND DISCHARGE 
  
 Upon the Company’s exercise under Section 8.1 hereof of the option
applicable to this Section 8.2, each of the Company and the Guarantors, as applicable, shall, subject to the satisfaction of the applicable conditions set forth in Section 8.4 hereof, be deemed to have been discharged from its obligations with
respect to all outstanding Notes and Guarantees, as applicable, on the date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance means that the Company and the Guarantors shall
be deemed to have paid and discharged the entire Indebtedness represented by the outstanding Notes (including the Guarantees), which shall thereafter be deemed to be “outstanding” only for the purposes of Section 8.5 hereof and the other
Sections of this Indenture referred to in clauses (a) and (b) below, and to have satisfied all their other obligations under such Notes, such Guarantees and this Indenture (and the Trustee, on demand of and at the expense of the Company, shall
execute proper instruments acknowledging the same), except for the 
  

 75 

 following provisions which shall survive until otherwise terminated or discharged hereunder: (a) the rights of Holders of
outstanding Notes to receive solely from the trust fund described in Section 8.4 hereof, and as more fully set forth in Section 8.4, payments in respect of the principal of, premium, if any, and interest and Liquidated Damages, if any, on such Notes
when such payments are due, (b) the Company’s obligations with respect to such Notes under Article II and Section 4.2 hereof, (c) the rights, powers, duties and immunities of the Trustee hereunder and the Company’s obligations in
connection therewith and (d) this Article VIII. Subject to compliance with this Article VIII, the Company may exercise its option under this Section 8.2 notwithstanding the prior exercise of its option under Section 8.3 hereof. 
  
 SECTION 8.3 COVENANT
DEFEASANCE 
  
 Upon the Company’s exercise
under Section 8.1 hereof of the option applicable to this Section 8.3, subject to the satisfaction of the applicable conditions set forth in Section 8.4 hereof, the Company and the Guarantors shall be released from their respective obligations under
Sections 4.3, 4.4, 4.5, 4.7, 4.8, 4.9, 4.10, 4.11, 4.12, 4.13, 4.14, 4.15, 4.16, 4.17, 4.18, 4.19 and 4.20 hereof and the Guarantors shall be released from their obligations under Section 10.3(b) hereof, in each case on and after the date the
conditions set forth below are satisfied (hereinafter, “Covenant Defeasance”), and the Notes and the Guarantees shall thereafter be deemed not “outstanding” for the purposes of any direction, waiver, consent or declaration or act
of Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed “outstanding” for all other purposes hereunder (it being understood that such Notes shall not be deemed outstanding for
accounting purposes). For this purpose, Covenant Defeasance means that, with respect to the outstanding Notes, the Company and the Guarantors may omit to comply with and shall have no liability in respect of any term, condition or limitation set
forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document and such omission
to comply shall not constitute a Default or an Event of Default under Section 6.1 hereof, but, except as specified above, the remainder of this Indenture and such Notes shall be unaffected thereby. In addition, upon the Company’s exercise under
Section 8.1 hereof of the option applicable to this Section 8.3, subject to the satisfaction of the applicable conditions set forth in Section 8.4 hereof, (x) Sections 6.1(c) through 6.1(g) hereof shall not constitute Events of Default and (y)
Sections 6.1(g) and 6.1(h) hereof shall not constitute an Event of Default to the extent they occur after the 91st day following the occurrence of the Company’s exercise of Covenant Defeasance; provided, however that for all other
purposes as set forth herein, such Covenant Defeasance provisions shall be effective. 
  
 SECTION 8.4 CONDITIONS TO LEGAL OR COVENANT
DEFEASANCE 
  
 The following shall be the
conditions to the application of either Section 8.2 or 8.3 hereof to the outstanding Notes: 
  
 In order to exercise either Legal Defeasance or Covenant Defeasance: 
  
 (a) the Company must irrevocably deposit with the Trustee, in trust, for the benefit of the Holders, cash in United States legal tender, U.S. Government
Obligations, or a combination thereof, in amounts that will be sufficient, in the opinion of a nationally recognized firm of independent public accountants which opinion can be subject to customary qualifications, to pay the principal of, premium,
if any, and Liquidated Damages, if any, and interest on the outstanding Notes on the stated date for payment thereof or on the applicable redemption date, as the case may be, and the Trustee must have, for the benefit of Holders of the Notes, a
valid, perfected exclusive security interest in such trust; 
  

 76 

 (b) in the case of an election under Section 8.2 hereof, the Company must deliver to the Trustee an
Opinion of Counsel which opinion can be subject to customary qualifications reasonably acceptable to the Trustee confirming that (A) the Company has received from, or there has been published by, the Internal Revenue Service a ruling or (B) since
the date of this Indenture, there has been a change in the applicable federal income tax law, in either case to the effect that, the Holders of the outstanding Notes will not recognize income, gain or loss for federal income tax purposes as a result
of such Legal Defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Legal Defeasance had not occurred; 
  
 (c) in the case of an election under Section 8.3 hereof, the Company must
deliver to the Trustee an Opinion of Counsel which opinion can be subject to customary qualifications reasonably acceptable to the Trustee confirming that Holders of the Notes will not recognize income, gain or loss for federal income tax purposes
as a result of such Covenant Defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred; 
  
 (d) in the case of an election under Section 8.2 or 8.3 hereof, (x) no
Default or Event of Default shall have occurred and be continuing on the date of the deposit, and (y) in the case of an election under Section 8.2 hereof, no Event of Default specified in Section 6.1(d), (e) or (f) hereof may occur at any time from
the date of the deposit to the 91st calendar day thereafter; 
  
 (e) the Defeasance may not result in a breach or violation of, or constitute
a Default under this Indenture or a default under any other material agreement or instrument to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound; 
  
 (f) the Company must deliver to the Trustee an Officers’ Certificate
stating that the deposit was not made by the Company with the intent to hinder, delay or defraud any other of the Company’s creditors; and 
  
 (g) the Company must deliver to the Trustee an Officers’ Certificate confirming the satisfaction of the conditions in clauses (a) through (f) above,
and an Opinion of Counsel, confirming the satisfaction of the conditions in clauses (a) (with respect to the validity and perfection of the security interest), (b), (c) and (e). 
  
 Legal Defeasance and Covenant Defeasance shall be deemed to occur on the earlier of (i) the 91st day after the deposit, and (ii) the day on which all of the applicable conditions set forth in this Section 8.4 are satisfied.

  
 If the amount deposited with the Trustee to effect a
Defeasance is insufficient to pay the principal of, premium, if any, and interest on the Notes when due, or if any court enters an order directing the repayment of the deposit to us or otherwise making the deposit unavailable to make payments under
the Notes when due, then (so long as the insufficiency exists or the order remains in effect) the Company and the Guarantors’ obligations under this Indenture and the Notes will be revived, and the Defeasance will be deemed not to have
occurred. 
  

 77 

 SECTION 8.5 DEPOSITED MONEY AND
GOVERNMENT SECURITIES TO BE HELD IN TRUST; OTHER MISCELLANEOUS PROVISIONS 
  
 Subject to Section 8.6 hereof and the Security Agreement, all money and U.S.
Government Obligations (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section 8.5, the “Trustee”) pursuant to Section 8.4 hereof in respect of the outstanding
Notes shall be held in trust and applied by the Trustee, in accordance with the provisions of such Notes and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as Paying Agent) as the Trustee
may determine, to the Holders of such Notes of all sums due and to become due thereon in respect of principal, premium, if any, and interest (and Liquidated Damages, if any), 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 cash or U.S. Government Obligations deposited pursuant to Section 8.4 hereof or the principal and interest received in respect thereof, other than any such tax, fee
or other charge which by law is for the account of the Holders of the outstanding Notes. 
  
 Anything in this Article VIII to the contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon the request of the Company any money or U.S. Government Obligations held by it as
provided in Section 8.4 hereof which, in the opinion of a firm of independent public accountants nationally recognized in the United States expressed in a written certification thereof delivered to the Trustee (which may be the opinion delivered
under Section 8.4(a) hereof), are in excess of the amount thereof that would then be required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance. 
  
 SECTION 8.6 REPAYMENT TO COMPANY 
  
 Any money deposited with the Trustee or any Paying Agent, or then held by
the Company, in trust for the payment of the principal of, premium, if any, Liquidated Damages, if any, or interest on any Note and remaining unclaimed for two years after such principal, and premium, if any, Liquidated Damages, if any, or interest
has become due and payable shall be paid to the Company on its written request or (if then held by the Company) shall be discharged from such trust; and the Holder of such Note shall thereafter, as a creditor, look only to the Company for payment
thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent,
before being required to make any such repayment, may at the expense of the Company cause to be published once, in the New York Times and The Wall Street Journal (national edition), notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such notification or publication, any unclaimed balance of such money then remaining will be repaid to the Company. 
  
 SECTION 8.7 REINSTATEMENT 
  
 If the Trustee or Paying Agent is unable to apply any United States legal
tender or U.S. Government Obligations in accordance with Section 8.2 or 8.3 hereof, as the case may be, by reason of any order directing the repayment of the deposited money to the Company or otherwise making the deposit unavailable to make payments
under the Notes when due, or if any court enters an order avoiding the deposit of money with the Trustee or Paying Agent or 
  

 78 

 otherwise requires the payment of the money so deposited to the Company or to a fund for the benefit of its creditors,
then (so long as the insufficiency exists or the order remains in effect) the Company’s and the Guarantors’ obligations under this Indenture and the Notes shall be revived and reinstated as though no deposit had occurred pursuant to
Section 8.3 or 8.4 hereof until such time as the Trustee or Paying Agent is permitted to apply all such money in accordance with Section 8.3 or 8.4 hereof, as the case may be; provided, however, that, if the Company makes any payment of
principal of, premium, if any, Liquidated Damages, if any, or interest on any Note following the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money held
by the Trustee or Paying Agent. 
  
 SECTION 8.8
SATISFACTION AND DISCHARGE 
  
 This Indenture will be discharged and will cease to be of further effect (except as to surviving rights of registration of transfer or exchange of Notes) as to all outstanding Notes when either: 
  
 (a) All outstanding Notes, except lost, stolen or destroyed Notes that have
been replaced or paid and Notes for whose payment money has been deposited in trust and thereafter repaid to the Company, have been delivered to the Trustee for cancellation; or 
  
 (b)     (1) all Notes that have not been delivered to the Trustee for cancellation have become due and
payable by reason of the mailing of a notice of redemption or otherwise or will become due and payable within one year and the Company or any Guarantor has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust
solely for the benefit of the Holders, cash in U.S. dollars, non-callable Government Securities, or a combination of cash in U.S. dollars and non-callable Government Securities, in amounts as will be sufficient, without consideration of any
reinvestment of interest, to pay and discharge the entire Indebtedness on the Notes not delivered to the Trustee for cancellation for principal, premium and Liquidated Damages, if any, and accrued interest to the date of maturity or redemption;

  
 (2) the Company shall have delivered irrevocable instructions
to the Trustee to apply the deposited money toward the payment of the Notes at maturity or the redemption date, as the case may be; 
  
 (3) such deposit does and will not result in a breach or violation of, or constitute a Default under this Indenture or a default under any other material
agreement or instrument to which the Company or any of the Company’s Subsidiaries are a party or are otherwise bound; 
  
 (4) the Company shall have paid all other amounts payable by the Company under this Indenture; 
  
 (5) the Company shall have delivered to the Trustee an Officers’
Certificate stating that the deposit was not made by the Company with intent to hinder, delay, or defraud any other of the Company’s creditors; and 
  
 (6) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, which opinion can be subject to customary
qualifications, confirming the satisfaction of the conditions in clause (3) above. 
  

 79 

 ARTICLE IX 
 AMENDMENT, SUPPLEMENT AND WAIVER 
  
 SECTION 9.1 WITHOUT CONSENT OF HOLDERS OF NOTES 
  
 Notwithstanding Section 9.2 hereof, the Company, the Guarantors and the Trustee may amend or supplement this Indenture, the
Notes or any Guarantee, without the consent of any Holder of a Note: 
  
 (a) to cure any ambiguity, defect or inconsistency; 
  
 (b) to provide for uncertificated Notes in addition to or in place of certificated Notes or to alter the provisions of Article II hereof (including the related definitions) in a manner that does not materially adversely affect any Holder;

  
 (c) to provide for the assumption of the Company’s
obligations to the Holders of the Notes by a successor to the Company pursuant to Article V hereof; 
  
 (d) to provide for additional Guarantors as set forth in Section 4.14 hereof or for the release or assumption of a Guarantee in compliance with this
Indenture; 
  
 (e) to make any change that would provide any
additional rights or benefits to the Holders of the Notes or that does not adversely affect the rights hereunder of any Holder of the Note; 
  
 (f) to comply with the provisions of the Depositary, Euroclear or Clearstream or the Trustee with respect to the provisions of this Indenture or the Notes
relating to transfers and exchanges of Notes or beneficial interests therein; 
  
 (g) to comply with requirements of the Commission in order to effect or maintain the qualification of this Indenture under the TIA; or 
  
 (h) to provide for the issuance of Additional Notes in accordance with the limitations set forth in this Indenture as of the
date hereof. 
  
 Upon the request of the Company accompanied by a
resolution of its Board of Directors authorizing the execution of any such amended or supplemental Indenture, and upon receipt by the Trustee of the documents described in Section 9.6 hereof, the Trustee shall join with the Company in the execution
of any amended or supplemental Indenture authorized or permitted by the terms of this Indenture and to make any further appropriate agreements and stipulations that may be therein contained, but the Trustee shall not be obligated to enter into such
amended or supplemental Indenture that adversely affects its own rights, duties or immunities under this Indenture or otherwise. 
  
 SECTION 9.2 WITH CONSENT OF HOLDERS OF NOTES

  
 Except as expressly stated otherwise in this Section 9.2, and
subject to Sections 6.4 and 6.7 hereof, the Company, the Guarantors and the Trustee may amend or supplement this Indenture, the Notes and the Guarantees, with the consent of the Holders of a majority in aggregate principal amount of the Notes
(including, without limitation, the Additional 
  

 80 

 Notes, if any, voting as a single class) then outstanding (including, without limitation, consents obtained in connection
with a purchase of, or tender offer or exchange offer for, the Notes), and, subject to Sections 6.4 and 6.7 hereof, any existing Default or Event of Default (other than a Default or Event of Default in the payment of the principal of, premium, if
any, or interest on the Notes, except a Payment Default resulting from an acceleration that has been rescinded) or compliance with any provision of this Indenture or the Notes may be waived with the consent of the Holders of a majority in aggregate
principal amount of the then outstanding Notes (including consents obtained in connection with a purchase of, or tender offer or exchange offer for, the Notes). 
  

Subject to Sections 6.4 and 6.7 hereof, the Holders of a majority in aggregate principal amount of the Notes then outstanding voting as a single class
may waive compliance in a particular instance by the Company or any Subsidiary with any provision of this Indenture, the Notes or the Guarantees. 
  
 However, without the consent of each Holder affected (it being understood that, except as expressly stated otherwise in paragraphs (a) through (e) below,
Sections 4.12 and 4.13 hereof may be amended, waived or modified in accordance with the first paragraph of this Section 9.2) an amendment or waiver may not (with respect to any Notes held by a non-consenting Holder): 
  
 (a) change the Stated Maturity on any Note, or reduce the principal amount
thereof or the rate (or extend the time for payment) of interest thereon or any premium payable upon the redemption thereof at the Company’s option, or change the coin or currency in which, any Note or any premium or the interest thereon is
payable, or impair the right to institute suit for the enforcement of any such payment on or after the Stated Maturity thereof (or, in the case of redemption at the Company’s option, on or after the Redemption Date), or after an Asset Sale or
Change of Control has occurred reduce the Change of Control Purchase Price or the Asset Sale Offer Price with respect to the corresponding Asset Sale or Change of Control or alter the provisions (including the defined terms used therein) regarding
the Company’s right to redeem the Notes at the Company’s option in a manner adverse to the Holders; 
  
 (b) reduce the percentage in principal amount of the outstanding Notes, the consent of whose Holders is required for any such amendment, supplemental
indenture or waiver provided for in this Indenture; or 
  
 (c)
modify any of the waiver provisions, except to increase any required percentage or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each outstanding Note affected thereby.

  
 (d) make any changes in the foregoing clauses (a) through (c)
or this clause (d) hereof, in a manner adverse to the Holders of the Notes. 
  
 Notwithstanding the foregoing, no amendment to the subordination provisions of this Indenture may adversely affect the rights of any holders of Designated Senior Indebtedness then outstanding without the consent of
the holders of such Designated Senior Indebtedness (or any group or representative thereof authorized to give such consent). 
  
 In connection with any amendment, supplement or waiver under this Article IX, the Company may, but shall not be obligated to, offer to any Holder who
consents to such amendment, supplement or waiver, or to all Holders, consideration for such Holder’s consent to such amendment, supplement or waiver. 
  

 81 

 Upon the request of the Company accompanied by a resolution of its Board of Directors authorizing the
execution of any such amended or supplemental Indenture, and upon the filing with the Trustee of evidence satisfactory to the Trustee of the consent of the Holders of Notes as aforesaid, and upon receipt by the Trustee of the documents described in
Section 9.6 hereof, the Trustee shall join with the Company in the execution of such amended or supplemental Indenture unless such amended or supplemental Indenture adversely affects the Trustee’s own rights, duties or immunities under this
Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such amended or supplemental Indenture. 
  
 It shall not be necessary for the consent of the Holders of Notes under this Section 9.2 to approve the particular form of any proposed amendment or
waiver, but it shall be sufficient if such consent approves the substance thereof. 
  
 After an amendment, supplement or waiver under this Section 9.2 becomes effective, the Company shall mail to the Holders of Notes affected thereby a notice briefly describing the amendment, supplement or waiver. Any
failure of the Company to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such amended or supplemental Indenture or waiver. 
  
 SECTION 9.3 COMPLIANCE WITH TRUST INDENTURE
ACT 
  
 Every amendment or supplement to this
Indenture or the Notes shall be set forth in an amended or supplemental Indenture that complies with the TIA as then in effect. 
  
 SECTION 9.4 REVOCATION AND EFFECT OF CONSENTS 
  
 Until an amendment, supplement or waiver becomes effective (as determined by
the Company and which may be prior to any such amendment, supplement or waiver becoming operative), a consent to it by a Holder of a Note is a continuing consent by the Holder of a Note and every subsequent Holder of a Note or portion of a Note that
evidences the same Indebtedness as the consenting Holder’s Note, even if notation of the consent is not made on any Note. However, any such Holder of a Note or subsequent Holder of a Note may revoke the consent as to its Note if the Trustee
receives written notice of revocation before the date the waiver, supplement or amendment becomes effective (as determined by the Company), which may be prior to any such amendment, supplement or waiver becoming operative. 
  
 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, which record date shall be the date so fixed by the Company notwithstanding the provisions of the TIA. If a record date is fixed, then notwithstanding the
last sentence of the immediately preceding paragraph, those Persons who were Holders at such record date, and only those Persons (or their duly designated proxies), shall be entitled to revoke any consent previously given, whether or not such
Persons continue to be Holders after such record date. 
  
 After
an amendment, supplement or waiver becomes effective, it shall bind every Holder unless it makes a change described in any of clauses (a) through (d) of Section 9.2 hereof, in which case, the amendment, supplement or waiver shall bind only each
Holder of a 
  

 82 

 Note who has consented to it and every subsequent Holder of a Note or portion of a Note that evidences the same debt as
the consenting Holder’s Note; provided, that any such waiver shall not impair or affect the right of any Holder to receive payment of principal and premium of and interest (and Liquidated Damages, if any) on a Note, on or after the
respective dates set for such amounts to become due and payable expressed in such Note, or to bring suit for the enforcement of any such payment on or after such respective dates. 
  
 SECTION 9.5 NOTATION ON OR EXCHANGE
OF NOTES 
  
 The Trustee may place
an appropriate notation about an amendment, supplement or waiver on any Note thereafter authenticated. The Company in exchange for all Notes may issue and the Trustee shall authenticate new Notes that reflect the amendment, supplement or waiver.

  
 Failure to make the appropriate notation or issue a new Note
shall not affect the validity and effect of such amendment, supplement or waiver. 
  
 SECTION 9.6 TRUSTEE TO SIGN AMENDMENTS, ETC. 
  
 The Trustee shall sign any amended or supplemental Indenture authorized
pursuant to this Article IX if the amendment or supplement does not adversely affect the rights, duties, liabilities or immunities of the Trustee. The Company may not sign an amended or supplemental Indenture until the Board of Directors approves
it. In executing any amended or supplemental Indenture, the Trustee shall be entitled to receive indemnity reasonably satisfactory to it and to receive and (subject to Section 7.1 hereof) shall be fully protected in relying upon, an Officers’
Certificate and an Opinion of Counsel stating that the execution of such amended or supplemental Indenture is authorized or permitted by this Indenture. 
  
 ARTICLE X 
 GUARANTEES 

 
 SECTION 10.1 GUARANTEES 
  
 By its execution of the Guarantee attached to each Note and a supplemental
indenture in the Form of Exhibit E attached hereto, each of the Guarantors acknowledges and agrees that it receives substantial benefits from the Company and that such party is providing its Guarantee for good and valuable consideration, including,
without limitation, such substantial benefits and services, and the Holders are relying on the Notes being guaranteed by the Guarantors to the extent required by this Indenture. Accordingly, subject to the provisions of this Article X and Article XI
hereof, each Guarantor, jointly and severally, hereby unconditionally guarantees on a senior subordinated basis to each Holder of a Note authenticated and delivered by the Trustee and its successors and assigns that: (i) the principal of, premium,
if any, and interest and Liquidated Damages, if any, on the Notes shall be duly and punctually paid in full when due, whether at maturity, by acceleration, call for redemption, upon a Change of Control Offer, upon an Asset Sale Offer or otherwise,
and interest on overdue principal, premium, if any, Liquidated Damages, if any, and (to the extent permitted by law) interest on any interest, if any, on the Notes and all other obligations of the Company to the Holders or the Trustee hereunder or
under the Notes (including fees, expenses or other) shall be promptly paid in full or performed, all in accordance with the terms hereof; and (ii) in case of any extension of time of payment or renewal of any Notes or any of such other obligations,
the same shall be promptly paid in full when due or 
  

 83 

 performed in accordance with the terms of the extension or renewal, whether at Stated Maturity, by acceleration, call for
redemption, upon a Change of Control, upon an Asset Sale Offer or otherwise, subject, however, in the case of clauses (i) and (ii) above, to the limitations set forth in Section 10.5 hereof (collectively, the “Guarantee Obligations”).

  
 Subject to the provisions of this Article X and Article XI
hereof, each Guarantor hereby agrees that its Guarantee hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of the Notes or this Indenture, the absence of any action to enforce the same, any waiver or consent
by any Holder of the Notes with respect to any thereof, the entry of any judgment against the Company, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a
Guarantor. Each Guarantor hereby waives and relinquishes: (a) any right to require the Trustee, the Holders or the Company (each, a “Benefited Party”) to proceed against the Company, the Subsidiaries or any other Person or to proceed
against or exhaust any security held by a Benefited Party at any time or to pursue any other remedy in any secured party’s power before proceeding against the Guarantors; (b) any defense that may arise by reason of the incapacity, lack of
authority, death or disability of any other Person or Persons or the failure of a Benefited Party to file or enforce a claim against the estate (in administration, bankruptcy or any other proceeding) of any other Person or Persons; (c) demand,
protest and notice of any kind (except as expressly required by this Indenture), including but not limited to notice of the existence, creation or incurring of any new or additional Indebtedness or obligation or of any action or non-action on the
part of the Guarantors, the Company, the Subsidiaries, any Benefited Party, any creditor of the Guarantors, the Company or the Subsidiaries or on the part of any other Person whomsoever in connection with any obligations the performance of which are
hereby guaranteed; (d) any defense based upon an election of remedies by a Benefited Party, including but not limited to an election to proceed against the Guarantors for reimbursement; (e) any defense based upon any statute or rule of law which
provides that the obligation of a surety must be neither larger in amount nor in other respects more burdensome than that of the principal; (f) any defense arising because of a Benefited Party’s election, in any proceeding instituted under the
Bankruptcy Law, of the application of Section 1111(b)(2) of the Bankruptcy Code; and (g) any defense based on any borrowing or grant of a security interest under Section 364 of the Bankruptcy Code. The Guarantors hereby covenant that, except as
otherwise provided herein, the Guarantees shall not be discharged except by payment in full of all Guarantee Obligations, including the principal, premium, if any, and interest on the Notes and all other costs provided for under this Indenture or as
provided in Article VIII hereof. 
  
 If any Holder or the Trustee
is required by any court or otherwise to return to either the Company or the Guarantors, or any trustee, Custodian or liquidator or similar official acting in relation to either the Company or the Guarantors, any amount paid by the Company or the
Guarantors to the Trustee or such Holder, the Guarantees, to the extent theretofore discharged, shall be reinstated in full force and effect. Each of the Guarantors agrees that it shall not be entitled to exercise any right of subrogation in
relation to the Holders in respect of any Guarantee Obligations hereby until payment in full of all such obligations guaranteed hereby. Each Guarantor agrees that, as between it, on the one hand, and the Holders of Notes and the Trustee, on the
other hand, (x) the maturity of the obligations guaranteed hereby may be accelerated as provided in Article VI hereof for the purposes hereof, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the
Guarantee Obligations, and (y) in the event of any acceleration of such obligations as provided in Article VI hereof, such Guarantee Obligations (whether or not due and payable) shall forthwith become due and payable by such Guarantor for the
purpose of the Guarantee. The Guarantors will have the right to seek contribution from any non-paying Guarantor so long as the exercise of such rights does not impair the rights of the Holders of the Guarantees. 
  

 84 

 SECTION 10.2 EXECUTION AND DELIVERY
OF GUARANTEES 
  
 To evidence the
Guarantees set forth in Section 10.1 hereof, each of the Guarantors agrees that a notation of the Guarantees substantially in the form included in Exhibit A hereto shall be endorsed by an officer of such Guarantor on each Note authenticated and
delivered by the Trustee and that this Indenture shall be executed on behalf of each of the Guarantors by an Officer of each of the Guarantors. 
  
 Each of the Guarantors agree that the Guarantees set forth in this Article X shall remain in full force and effect and apply to all the Notes
notwithstanding any failure to endorse on each Note a notation of the Guarantees. 
  
 If an Officer whose facsimile signature is on a Note or a notation of Guarantee no longer holds that office at the time the Trustee authenticates the Note on which the Guarantees are endorsed, the Guarantees shall be
valid nevertheless. 
  
 The delivery of any Note by the Trustee,
after the authentication thereof hereunder, shall constitute due delivery of the Guarantees set forth in this Indenture on behalf of the Guarantors. 
  
 SECTION 10.3 GUARANTORS MAY CONSOLIDATE, ETC., ON
CERTAIN TERMS 
  
 (a) Nothing
contained in this Indenture or in the Notes shall prevent any consolidation or merger of any Guarantor with or into each other or with or into the Company or prevent any sale or conveyance of the property of a Guarantor as an entirety or
substantially as an entirety to the Company or another Guarantor. Upon any such consolidation or merger, the Guarantee of the Guarantor that does not survive the consolidation, merger or sale shall no longer be of any force or effect. 
  
 (b) Except for a merger or consolidation in which a Guarantor is sold and its
Guarantee is released in compliance with the provisions of Section 10.4 hereof, no Guarantor shall consolidate or merge with or into (whether or not such Guarantor is the surviving Person) another Person unless, (i) subject to the provisions of
Section 10.4 hereof and the other provisions of this Indenture, the Person formed by or surviving any such consolidation or merger (if other than such Guarantor) assumes all the obligations of such Guarantor pursuant to a supplemental indenture in
form reasonably satisfactory to the Trustee, pursuant to which such Person shall guarantee, on a senior subordinated basis, all of such Guarantor’s obligations under such Guarantor’s Guarantee on the terms set forth in this Indenture; and
(ii) immediately before and immediately after giving effect to such transaction on a pro forma basis, no Default or Event of Default shall have occurred or be continuing. In case of any such consolidation or merger and upon the assumption by the
successor corporation, by supplemental indenture, executed and delivered to the Trustee and reasonably satisfactory in form to the Trustee, of the Guarantees endorsed upon the Notes and the due and punctual performance of all of the covenants and
conditions of this Indenture to be performed by such Guarantor, such successor corporation shall succeed to and be substituted for such Guarantor with the same effect as if it had been named herein as a Guarantor. Such successor corporation
thereupon may cause to be signed any or all of the Guarantees to be endorsed upon all of the Notes issuable hereunder which theretofore shall not have been signed by the Company and delivered to the Trustee. All the Guarantees so issued 

 

 85 

 shall in all respects have the same legal rank and benefit under this Indenture as the Guarantees theretofore and
thereafter issued in accordance with the terms of this Indenture as though all of such Guarantees had been issued at the date of the execution hereof. 
  
 (c) The Trustee, subject to the provisions of Section 12.4 hereof, shall be entitled to receive an Officers’ Certificate as conclusive evidence that
any such consolidation or merger, and any such assumption of Guarantee Obligations, comply with the provisions of this Section 10.3. Such Officers’ Certificate shall comply with the provisions of Section 12.5 hereof. 
  
 SECTION 10.4 RELEASE OF
GUARANTORS 
  
 Notwithstanding Section 10.3(b)
hereof, upon the sale or disposition (including by merger or stock purchase) of a Guarantor (as an entirety) or of all or substantially all of its assets to an entity which is not and is not required to become a Guarantor, or the designation of a
Subsidiary to become an Unrestricted Subsidiary, which transaction is otherwise in compliance with this Indenture (including, without limitation, the provisions of Section 4.12 hereof), such Guarantor will be deemed released from its obligations
under its Guarantee of the Notes; provided, however, that any such termination shall occur only to the extent that, following consummation of such transaction, all obligations of such Guarantor under all of its guarantees of, and under all of
its pledges of assets or other security interests which secure, any of the Company’s Indebtedness or any Indebtedness of any other of the Company’s Subsidiaries shall also terminate upon such release, sale or transfer and none of its
Equity Interests are pledged for the benefit of any holder of any of the Company’s Indebtedness or any Indebtedness of any of the Company’s Subsidiaries. 
  
 Any Guarantee that is defeased or discharged in accordance with Article VIII hereof will be released. Furthermore, any
Guarantor that became a Guarantor because it guaranteed any of the Company’s other Indebtedness or any other Indebtedness of the Guarantors, or, because more than 66% of its Voting Equity Interests were pledged to a lender to secure the
Company’s Indebtedness or any Indebtedness of any Guarantor, and such Guarantor is released from that guarantee, then it shall also be released from its Guarantee under this Indenture. 
  
 Upon delivery by the Company to the Trustee of an Officer’s Certificate,
to the effect that such sale or other disposition or that such designation was made by the Company in accordance with the provisions of this Indenture, the Trustee shall execute any documents reasonably required in order to evidence the release of
any such Guarantor from its obligations under its Guarantee. Except as provided in Section 10.3(a) hereof, any Guarantor not released from its obligations under its Guarantee shall remain liable for the full amount of principal of and interest on
the Notes and for the other obligations of any Guarantor under this Indenture as provided in this Article X. 
  
 Notwithstanding the foregoing provisions of this Article X, (i) any Guarantor whose Guarantee would otherwise be released pursuant to the provisions of
this Section 10.4 may elect, at its sole discretion, by written notice to the Trustee, to maintain such Guarantee in effect notwithstanding the event or events that otherwise would cause the release of such Guarantee (which election to maintain such
Guarantee in effect may be conditional or for a limited period of time), and (ii) any Subsidiary of the Company which is not a Guarantor may elect, at its sole discretion, by written notice to the Trustee, to become a Guarantor (which election may
be conditional or for a limited period of time). 
  

 86 

 SECTION 10.5 LIMITATION OF
GUARANTOR’S LIABILITY; CERTAIN BANKRUPTCY EVENTS 
  
 (a) Each Guarantor, and by its acceptance hereof each Holder, hereby confirms that it is the intention of all such parties that the Guarantee Obligation
of such Guarantor pursuant to its Guarantee not constitute a fraudulent transfer or conveyance for purposes of any Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the
extent applicable to any Guarantee. To effectuate the foregoing intention, the Trustee, the Holders and such Guarantor hereby irrevocably agree that the Guarantee Obligations of such Guarantor shall be limited to the maximum amount as will, after
giving effect to all other contingent and fixed liabilities of such Guarantor that are relevant under such laws and after giving effect to such maximum amount and to any collections from rights to receive contributions from or payments made by or on
behalf of any other Guarantor in respect of the Guarantee Obligations of such other Guarantor under this Article X, result in the Guarantee Obligations of such Guarantor under this Article X, resulting in the obligations of such Guarantor under its
Guarantee not constituting a fraudulent transfer or conveyance. 
  
 (b) Each Guarantor hereby covenants and agrees, to the fullest extent that it may do so under applicable law, that in the event of the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Company, such Guarantor shall
not file (or join in any filing of), or otherwise seek to participate in the filing of, any motion or request seeking to stay or to prohibit (even temporarily) execution on the Guarantee and hereby waives and agrees not to take the benefit of any
such stay of execution, whether under Section 362 or 105 of the Bankruptcy Law or otherwise. 
  
 SECTION 10.6 APPLICATION OF CERTAIN TERMS AND
PROVISIONS TO THE GUARANTORS 
  
 (a) For purposes of any provision of this Indenture which provides for the delivery by any Guarantor of an Officers’ Certificate and/or an Opinion of Counsel, the definitions of such terms in Section 1.1 hereof
shall apply to such Guarantor as if references therein to the Company were references to such Guarantor. 
  
 (b) Any request, direction, order or demand which by any provision of this Indenture is to be made by any Guarantor, shall be sufficient if evidenced as
described in Section 12.2 hereof as if references therein to the Company were references to such Guarantor. 
  
 (c) Any notice or demand which by any provision of this Indenture is required or permitted to be given or served by the Trustee or by the holders of Notes
to or on any Guarantor may be given or served as described in Section 12.2 hereof as if references therein to the Company were references to such Guarantor. 
  
 (d) Upon any demand, request or application by any Guarantor to the Trustee to take any action under this Indenture, such Guarantor shall furnish to the
Trustee such certificates and opinions as are required in Section 12.4 hereof as if all references therein to the Company were references to such Guarantor. 
  
 SECTION 10.7 SUBORDINATION OF GUARANTEES 
  
 The obligations of each Guarantor under its Guarantee pursuant to this
Article X is subordinated in right of payment to the prior payment in full in cash of all Senior Indebtedness of 
  

 87 

 such Guarantor on the same basis as the Notes are subordinated to Senior Indebtedness of the Company as provided for in
Article XI hereof. For the purposes of the foregoing sentence, the Trustee and the Holders shall have the right to receive and/or retain payments by any of the Guarantors only at such times as they may receive and/or retain payments in respect of
Notes pursuant to this Indenture, including as set forth in Article XI hereof. In the event that the Trustee or the Holders receive any payment from a Guarantor at a time when such payment is prohibited by the foregoing sentence, such payment shall
be held in trust for the benefit of, and immediately paid over and delivered to, the holders of the Senior Indebtedness of such Guarantor remaining unpaid, to the extent necessary to pay in full in cash all such Senior Indebtedness and to cash
collateralize any letters of credit issued under the Credit Agreement that remain effective. 
  
 ARTICLE XI 
 SUBORDINATION 
  
 SECTION 11.1 NOTES SUBORDINATED TO SENIOR
INDEBTEDNESS 
  
 The Company and the Guarantors,
and each Holder by its acceptance of Notes, agree that (a) the payment of any Obligation in respect of the Notes, including the principal of, premium, if any, and interest (and Liquidated Damages, if any) on the Notes and (b) any other payment in
respect of the Notes, including on account of the acquisition or redemption of the Notes by the Company and the Guarantors (including, without limitation, pursuant to Sections 4.12 and 4.13 hereof) is subordinated, to the extent and in the manner
provided in this Article XI, to the prior payment in full in cash of all Senior Indebtedness of the Company and the termination or cash collateralization of all letters of credit issued under the Credit Agreement and that these subordination
provisions are for the benefit of the holders of Senior Indebtedness. 
  
 This Article XI shall constitute a continuing offer to all Persons who, in reliance upon such provisions, become holders of, or continue to hold, Senior Indebtedness, and such provisions are made for the benefit of the holders of Senior
Indebtedness and such holders are made obligees hereunder and any one or more of them may enforce such provisions. 
  
 SECTION 11.2 NO PAYMENT ON NOTES IN CERTAIN
CIRCUMSTANCES 
  
 (a) Neither the Company nor any
Guarantor may make payment (by set-off or otherwise) to the Holders of the Notes on account of any Obligation in respect of the Notes, including the principal of, premium, if any, or interest (or Liquidated Damages, if any) on the Notes, or on
account of the redemption provisions of the Notes (including any repurchases of Notes), for cash or property (other than Junior Securities): (i) upon the maturity of the Company’s Senior Indebtedness or any Senior Indebtedness of any Guarantor
by lapse of time, acceleration (unless waived) or otherwise, unless and until all principal of, premium, if any, and the interest and other amounts on such Senior Indebtedness are first paid in full in cash and, in the case of Senior Indebtedness
under the Credit Agreement, all letters of credit issued under the Credit Agreement shall either have been terminated or cash collateralized in accordance with the terms thereof; or (ii) in the event of default in the payment of any principal of,
premium, if any, or interest or other amounts on the Company’s Senior Indebtedness or Senior Indebtedness of such Guarantor, as applicable, when such Senior Indebtedness becomes due and payable, whether at maturity or at a date fixed for
prepayment or by declaration or otherwise (a “Payment Default”), unless and until such Payment Default has been cured or waived or otherwise has ceased to exist or such Senior Indebtedness has been paid in full in cash and all letters of
credit issued under the Credit Agreement have been terminated or cash collateralized in accordance with the terms thereof. 
  

 88 

 (b) Upon (i) the happening of an event of default other than a Payment Default that permits the holders
of any Designated Senior Indebtedness to declare such Designated Senior Indebtedness to be due and payable and (ii) written notice of such event of default delivered to the Company and the Trustee by the holders or representatives of any Designated
Senior Indebtedness (a “Payment Blockage Notice”), then, unless and until such event of default has been cured or waived or otherwise has ceased to exist, no payment (by set-off or otherwise) may be made by or on behalf of the Company or
any Guarantor, in each case, which is an obligor or guarantor under such Designated Senior Indebtedness, to the Holders of the Notes on account of any Obligation in respect of the Notes, including the principal of, premium, if any, or interest (or
Liquidated Damages) on the Notes, (including any repurchases of any of the Notes), or on account of the redemption provisions of the Notes, in any such case, other than payments made with Junior Securities. Notwithstanding the foregoing, unless the
Designated Senior Indebtedness in respect of which such event of default exists has been declared due and payable in its entirety within 179 days after the Payment Blockage Notice is delivered as set forth above (the “Payment Blockage
Period”) (and such declaration has not been rescinded or waived), at the end of the Payment Blockage Period, the Company shall and the Guarantors shall be required to pay all sums not previously paid to the Holders of the Notes during the
Payment Blockage Period due to the foregoing prohibitions and to resume all other payments as and when due on the Notes. 
  
 Any number of Payment Blockage Notices may be given; provided, however, that: (i) not more than one Payment Blockage Notice shall be given within a
period of any 360 consecutive days, and (ii) no non-Payment Default that existed upon the date of such Payment Blockage Notice or the commencement of such Payment Blockage Period shall be made the basis for the commencement of any other Payment
Blockage Period unless such default shall have been cured or waived for a period of not less than 90 days (for purposes of this provision, any subsequent action, or any subsequent breach of any financial covenant for a period commencing after the
expiration of such Payment Blockage Period that, in either case, would give rise to a new event of default, even though it is an event that would also have been a separate breach pursuant to any provision under which a prior event of default
previously existed, shall constitute a new event of default for this purpose). 
  
 (c) In furtherance of the provisions of Section 11.1 hereof, in the event that, notwithstanding the foregoing provisions of this Section 11.2 or Section 11.3 hereof, any payment or distribution of assets of the
Company or any Guarantor (other than Junior Securities) shall be received by the Trustee or the Holders at a time when such payment or distribution is prohibited by the foregoing provisions of this Section 11.2, such payment or distribution shall be
held in trust for the benefit of the holders of such Senior Indebtedness, and shall be immediately paid or delivered by the Trustee or such Holders, as the case may be, to the holders of such Senior Indebtedness remaining unpaid for or to their
representative or representatives, or to the trustee or trustees under any indenture pursuant to which any instruments evidencing any of such Senior Indebtedness may have been issued, ratably according to the aggregate principal amounts remaining
unpaid on account of such Senior Indebtedness held or represented by each, for application to the payment of all such Senior Indebtedness remaining unpaid, to the extent necessary to pay all such Senior Indebtedness in full in cash and to cash
collateralize all letters of credit issued under the Credit Agreement that remain outstanding after giving effect to any concurrent payment or distribution to the holders of such Senior Indebtedness. 
  

 89 

 SECTION 11.3 NOTES SUBORDINATED TO PRIOR
PAYMENT OF ALL SENIOR INDEBTEDNESS ON DISSOLUTION, LIQUIDATION OR REORGANIZATION 
  
 Upon any distribution of assets of the Company or any Guarantor upon any
dissolution, winding up, total or partial liquidation or reorganization of the Company or a Guarantor, whether voluntary or involuntary, in bankruptcy, insolvency, receivership or a similar proceeding or upon assignment for the benefit of creditors
or any marshaling of assets or liabilities: 
  
 (a) the holders
of all of the Company’s Senior Indebtedness or such Guarantor’s Senior Indebtedness, as applicable, will first be entitled to receive payment in full in cash and all letters of credit issued under the Credit Agreement will either have been
terminated or cash collateralized in accordance with the terms thereof before the Holders are entitled to receive any payment (other than in the form of Junior Securities) on account of any Obligation in respect of the Notes, including the principal
of, premium, if any, and interest (or Liquidated Damages) on the Notes; and 
  
 (b) any payment or distribution of the Company’s or such Guarantor’s assets of any kind or character from any source, whether in cash, property or securities (other than Junior Securities) to which the
Holders or the Trustee on behalf of the Holders would be entitled (by set-off or otherwise), except for the subordination provisions contained in this Indenture, will be paid by the liquidating trustee or agent or other Person making such a payment
or distribution directly to the holders of such Senior Indebtedness or their representative to the extent necessary to make payment in full in cash on all such Senior Indebtedness remaining unpaid and to cash collateralize all letters of credit
issued under the Credit Agreement that remain outstanding, after giving effect to any concurrent payment or distribution to the holders of such Senior Indebtedness. 
  
 SECTION 11.4 HOLDERS TO BE SUBROGATED
TO RIGHTS OF HOLDERS OF SENIOR INDEBTEDNESS 
  
 Subject to the termination or cash collateralization of all letters of credit issued under the Credit Agreement and the payment in full in cash of all
Senior Indebtedness of the Company or any Guarantor as provided herein, the Holders of Notes shall be subrogated to the rights of the holders of such Senior Indebtedness to receive payments or distributions of assets of the Company applicable to the
Senior Indebtedness until all amounts owing on the Notes shall be paid in full, and for the purpose of such subrogation no such payments or distributions to the holders of such Senior Indebtedness by or on behalf of the Company or any Guarantor, or
by or on behalf of the Holders by virtue of this Article XI, which otherwise would have been made to the Holders shall, as between the Company or any Guarantor and the Holders, be deemed to be payment by the Company or any Guarantor or on account of
such Senior Indebtedness, it being understood that the provisions of this Article XI are and are intended solely for the purpose of defining the relative rights of the Holders, on the one hand, and the holders of such Senior Indebtedness, on the
other hand. 
  
 SECTION 11.5
RELATIVE RIGHTS 
  
 This Article XI
defines the relative rights of Holders and holders of Senior Indebtedness. Nothing in this Indenture shall: (1) impair, as between the Company and Holders, the obligation of the Company or the obligation of the Guarantors, which is absolute and
unconditional, to pay, when due, principal of, premium, if any, and interest on or (if applicable, Liquidated Damages on) the Notes in accordance with their terms; (2) affect the relative rights of 
  

 90 

 Holders and creditors of the Company other than their rights in relation to holders of Senior Indebtedness; or (3)
prevent the Trustee or any Holder from exercising its available remedies upon a Default or Event of Default, subject to the rights of holders and owners of Senior Indebtedness to receive distributions and payments otherwise payable to Holders.

  
 SECTION 11.6 TRUSTEE
ENTITLED TO ASSUME PAYMENTS NOT PROHIBITED IN ABSENCE OF NOTICE. 
  
 The Trustee shall not at any time be charged with knowledge of the existence
of any facts which would prohibit the making of any payment to or by the Trustee unless and until a Trust Officer of the Trustee or any Paying Agent shall have received, no later than three Business Days prior to such payment written notice thereof
from the Company or from one or more holders of Senior Indebtedness or from any representative therefor and, prior to the receipt of any such written notice, the Trustee, subject to the provisions of Sections 7.1 and 7.2 hereof, shall be entitled in
all respects conclusively to assume that no such fact exists. 
  
 Notwithstanding anything to the contrary in this Article XI or elsewhere in this Indenture or in the Notes, upon any distribution of assets of the Company and the Guarantors referred to in this Article XI, the Trustee, subject to the
provisions of Sections 7.1 and 7.2 hereof, and the Holders shall be entitled to rely upon any order or decree made by any court of competent jurisdiction in which such dissolution, winding up, liquidation or reorganization proceedings are pending,
or a certificate of the liquidating trustee or agent or other Person making any distribution to the Trustee or to the Holders for the purpose of ascertaining the Persons entitled to participate in such distribution, the holders of the Senior
Indebtedness and other Indebtedness of the Company or any Guarantor, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article XI so long as such court has been
apprised of the provisions of, or the order, decree or certificate makes reference to, the provisions of this Article XI. 
  
 SECTION 11.7 APPLICATION BY TRUSTEE OF ASSETS
DEPOSITED WITH IT 
  
 Amounts deposited in trust with the Trustee pursuant to and in accordance with Article VIII hereof shall be for the sole benefit of Holders and, to the extent the making of such deposit by the Company shall (i) not be in contravention of
any term or provision of the Credit Agreement when made and (ii) be allocated for the payment of the Notes, shall not be subject to the subordination provisions of this Article XI. Otherwise, any deposit of assets with the Trustee or the Agent
(whether or not in trust) for the payment of principal of or interest on any Notes shall be subject to the provisions of Sections 11.1, 11.2, 11.3 and 11.4 hereof; provided, that, if prior to one Business Day preceding the date on which by
the terms of this Indenture any such assets may become distributable for any purpose (including without limitation, the payment of either principal of or interest on any Note) the Trustee or such Paying Agent shall not have received with respect to
such assets the written notice provided for in Section 11.6, then the Trustee or such Paying Agent shall have full power and authority to receive such assets and to apply the same to the purpose for which they were received, and shall not be
affected by any notice to the contrary which may be received by it on or after such date. 
  
 SECTION 11.8 SUBORDINATION RIGHTS NOT IMPAIRED BY ACTS OR OMISSIONS OF
THE COMPANY, THE GUARANTORS OR HOLDERS OF SENIOR INDEBTEDNESS 
  
 No right of any present or future holders of any Senior Indebtedness to
enforce the subordination provisions contained in this Article XI shall at any time in any way be 
  

 91 

 prejudiced or impaired by any act or failure to act on the part of the Company or any Guarantor or by any act or failure
to act, in good faith, by any such holder, or by any noncompliance by the Company or any Guarantor with the terms of this Indenture, regardless of any knowledge thereof which any such holder may have or be otherwise charged with. The holders of
Senior Indebtedness may extend, renew, modify or amend the terms of the Senior Indebtedness or any security therefor and release, sell or exchange such security and otherwise deal freely with the Company and the Guarantors, all without affecting the
liabilities and obligations of the parties to this Indenture or the Holders. The subordination provisions contained in this Indenture are for the benefit of the holders from time to time of Senior Indebtedness and may not be rescinded, cancelled,
amended or modified in any way other than any amendment or modification that is consented to by each holder of Senior Indebtedness that would be adversely affected thereby. The subordination provisions hereof shall continue to be effective or be
reinstated, as the case may be, if at any time any payment of any of the Senior Indebtedness is rescinded or must otherwise be returned by any holder of the Senior Indebtedness upon the insolvency, bankruptcy, or reorganization of the Company, any
Guarantor, or otherwise, all as though such payment has not been made. 
  
 SECTION 11.9 HOLDERS AUTHORIZE TRUSTEE TO EFFECTUATE SUBORDINATION OF NOTES. 
  
 Each Holder of the Notes by his acceptance thereof authorizes and expressly
directs the Trustee on his behalf to take such action as may be necessary or appropriate to effectuate the subordination provisions contained in this Article XI and to protect the rights of the Holders pursuant to this Indenture, and appoints the
Trustee his attorney-in-fact for such purpose, including, in the event of any dissolution, winding up, liquidation or reorganization of the Company or any Guarantor (whether in bankruptcy, insolvency or receivership proceedings or upon an assignment
for the benefit of creditors or any other marshalling of assets and liabilities of the Company or any Guarantor), the immediate filing of a claim for the unpaid balance of his Notes in the form required in said proceedings and cause said claim to be
approved. In the event of any liquidation or reorganization of the Company or any Guarantor in bankruptcy, insolvency, receivership or similar proceeding, if the Holders of the Notes (or the Trustee on their behalf) have not filed any claim, proof
of claim, or other instrument of similar character necessary to enforce the obligations of the Company or any Guarantor in respect of the Notes at least thirty (30) days before the expiration of the time to file the same, then in such event, but
only in such event, the holders of the Senior Indebtedness or a representative on their behalf may, as an attorney-in-fact for such Holders, file any claim, proof of claim, or other instrument of similar character on behalf of such Holders. Nothing
herein contained shall be deemed to authorize the Trustee or the holders of Senior Indebtedness or their representative to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Holder thereof, or to authorize the Trustee or the holders of Senior Indebtedness or their representative to vote in respect of the claim of any Holder in any such proceeding. 
  
 SECTION 11.10 RIGHT OF
TRUSTEE TO HOLD SENIOR INDEBTEDNESS 
  
 The Trustee shall be entitled to all of the rights set forth in this Article XI in respect of any Senior Indebtedness at any time held by it to the same
extent as any other holder of Senior Indebtedness, and nothing in this Indenture shall be construed to deprive the Trustee of any of its rights as such holder. 
  

 92 

 Nothing in this Article XI shall apply to claims of, or payments to, the Trustee under or pursuant to
Section 7.7 hereof. 
  
 SECTION 11.11
ARTICLE XI NOT TO PREVENT EVENTS OF DEFAULT 
  
 The failure to make a payment on account of principal of, premium, if any, or interest (or Liquidated Damages, if any) on the Notes by reason of any
provision of this Article XI shall not be construed as preventing the occurrence of a Default or an Event of Default under Section 6.1 or in any way limit the rights of the Trustee or any Holder to pursue any other rights or remedies with respect to
the Notes. 
  
 SECTION 11.12 NO
FIDUCIARY DUTY OF TRUSTEE TO HOLDERS OF SENIOR INDEBTEDNESS 
  
 The Trustee shall not be deemed to owe any fiduciary duty to the holders of
Senior Indebtedness, and shall not be liable to any such holders if it shall in good faith mistakenly pay over or distribute to the Holders of Notes or the Company, any Guarantor or any other Person, cash, property or securities to which any holders
of Senior Indebtedness shall be entitled by virtue of this Article XI or otherwise. With respect to the holders of Senior Indebtedness, the Trustee undertakes to perform or to observe only such of its covenants or obligations as are specifically set
forth in this Article XI and no implied covenants or obligations with respect to holders of Senior Indebtedness shall be read into this Indenture against the Trustee. Nothing in this Section 11.12 shall affect the obligation of any other such Person
to hold such payment for the benefit of, and to pay such payment over to, the holders of Senior Indebtedness or their representative. In the event of any conflict between the fiduciary duty of the Trustee to the Holders of Notes and to the holders
of Senior Indebtedness, the Trustee is expressly authorized to resolve such conflict in favor of the Holders. 
  
 ARTICLE XII 
 MISCELLANEOUS 
  
 SECTION 12.1 TRUST INDENTURE
ACT CONTROLS 
  
 If any provision
of this Indenture limits, qualifies or conflicts with the duties imposed by the TIA, the imposed duties shall control. 
  
 SECTION 12.2 NOTICES 
  
 Any notice or communication by the Company, any Guarantor or the Trustee to the other is duly given if in writing and delivered in person or mailed by
first class mail (registered or certified, return receipt requested), telecopier or overnight air courier guaranteeing next day delivery, to the others’ address: 
  

			
	 If to the Company:        
	  	 
	 	  	 Nectar Merger Corporation
 c/o Leonard Green &
Partners, L.P.
 11111 Santa Monica Boulevard, Suite 2000
 Los
Angeles, CA 90025

	 or if after the Merger,        
	  	 

  

 93 

			
	 to the Company and
 the Guarantors:
	  	 
	 	  	 FTD, Inc.
 3113 Woodcreek Drive
 Downers Grove, IL 60615
 Attention: General Counsel

	 with copies in either case
 (which
 shall not constitute
 notice) to:
	  	 
	 	  	 Latham & Watkins, LLP
 633 West Fifth Street,
Suite 4000
 Los Angeles, CA 90071
 Attention: Mark
Stegemoeller

	If to the Trustee:	  	 
	 	  	 U.S. Bank National Association
 60 Livingston
Avenue
 St. Paul, MN 55107-2292
 Attention: Corporate Trust
Department

  
 The Company, the
Guarantors or the Trustee, by notice to the others, may designate additional or different addresses for subsequent notices or communications. 
  
 All notices and communications (other than those sent to Holders) shall be deemed to have been duly given: (i) at the time delivered by hand, if
personally delivered; (ii) when answered back, if telexed; (iii) when receipt acknowledged, if telecopied; and (iv) the next Business Day after timely delivery to the courier, if sent by overnight air courier guaranteeing next day delivery.

  
 Any notice or communication to a Holder shall be mailed by
first class mail, certified or registered, return receipt requested, or by overnight air courier guaranteeing next day delivery to its address shown on the register kept by the Registrar. Any notice or communication shall also be so mailed to any
Person described in TIA § 313(c), to the extent required by the TIA. Failure to mail a notice or communication to a Holder or any defect in it shall not affect its sufficiency with respect to other Holders. 
  
 If a notice or communication is mailed in the manner provided above within
the time prescribed, it is duly given, whether or not the addressee receives it. 
  
 If the Company mails a notice or communication to Holders, it shall mail a copy to the Trustee and each Agent at the same time. 
  

	SECTION	12.3 COMMUNICATION BY HOLDERS OF NOTES WITH OTHER HOLDERS
OF NOTES 

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

 94 

 SECTION 12.4 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: 
  
 (a) an Officers’ Certificate in form and substance reasonably satisfactory to the Trustee (which shall include the
statements set forth in Section 12.5 hereof) stating that, in the opinion of the signers, all conditions precedent and covenants, if any, provided for in this Indenture relating to the proposed action have been satisfied; and 
  
 (b) an Opinion of Counsel in form and substance reasonably satisfactory to
the Trustee (which shall include the statements set forth in Section 12.5 hereof) stating that, in the opinion of such counsel, all such conditions precedent and covenants have been satisfied. 
  
 SECTION 12.5 STATEMENTS
REQUIRED IN CERTIFICATE OR OPINION 
  
 Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than a certificate provided
pursuant to TIA § 314(a)(4)) shall comply with the provisions of TIA § 314(e) and shall include: 
  
 (a) a statement that the Person making such certificate or opinion has read such covenant or condition; 
  
 (b) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such certificate or opinion are based; 
  
 (c) a statement that, in the opinion of such Person, he or she has made such examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been satisfied; and 
  
 (d) a statement as to whether or not, in the opinion of such Person, such condition or covenant has been satisfied; provided, however, that with respect to matters of fact, an Opinion of Counsel may rely on an
Officers’ Certificate or certificate of public officials. 
  

	SECTION	12.6 RULES BY TRUSTEE AND AGENTS 

  
 The Trustee may make reasonable rules for action by or at a meeting of
Holders. The Registrar or Paying Agent may make reasonable rules and set reasonable requirements for its functions. 
  
 SECTION 12.7 NO PERSONAL LIABILITY OF DIRECTORS,
OFFICERS, EMPLOYEES AND STOCKHOLDERS 
  
 No direct or indirect stockholder, employee, officer or director, as such, past, present or future of the Company, the Guarantors or any successor entity
shall have any personal liability in respect of the Company’s obligations or the obligations of the Guarantors under this Indenture or the Notes solely by reason of his or its status as such stockholder, employee, officer or director, except
that this provision shall in no way limit the obligation of any Guarantor pursuant to any guarantee of the Notes. Each Holder by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for
issuance of the Notes. 
  

 95 

 SECTION 12.8 GOVERNING LAW 
  
 THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO
CONSTRUE THIS INDENTURE, THE NOTES AND THE GUARANTEES, INCLUDING, WITHOUT LIMITATION, SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND NEW YORK CIVIL PRACTICE LAWS AND RULES 327(b). 
  
 SECTION 12.9 NO ADVERSE
INTERPRETATION OF OTHER AGREEMENTS 
  
 This Indenture may not be used to interpret any other indenture, loan or debt agreement of the Company or its Subsidiaries or of any other Person. Any
such indenture, loan or debt agreement may not be used to interpret this Indenture. 
  
 SECTION 12.10 SUCCESSORS 
  
 All agreements of the Company and the Guarantors in this Indenture and the Notes shall bind their successors. All agreements of the Trustee in this
Indenture shall bind its successors. 
  
 SECTION
12.11 SEVERABILITY 
  
 In case any one or more of
the provisions of this Indenture or in the Notes or in the Guarantees shall be held invalid, illegal or unenforceable, in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions shall not in any way be affected or impaired thereby, it being intended that all of the provisions hereof shall be enforceable to the full extent permitted by law. 
  
 SECTION 12.12 COUNTERPART ORIGINALS 
  
 The parties may sign any number of copies of this Indenture. Each signed
copy shall be an original, but all of them together represent the same agreement. 
  
 SECTION 12.13 TABLE OF CONTENTS, HEADINGS, ETC. 
  
 The Table of Contents and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be considered a part of this Indenture and shall in no way modify or restrict any of the terms or provisions hereof. 
  
 [Signatures on following page] 
  

 96 

 SIGNATURES 
  
 IN WITNESS WHEREOF, the parties hereto have executed this Indenture as of the date first written above. 
  

			
	THE COMPANY:
	NECTAR MERGER CORPORATION
		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

	
	THE TRUSTEE:
	 U.S. BANK NATIONAL ASSOCIATION

		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

 EXHIBIT A 
  

[FORM OF NOTE] 
  
 NECTAR MERGER CORPORATION 
  
 7.75% [SERIES A] [SERIES B]1 SENIOR SUBORDINATED NOTE 
 DUE 2014 
  

			
	 	  	CUSIP:                      
	 No.
	  	$                                

  
 [Nectar Merger
Corporation] [FTD, Inc.], a Delaware corporation (hereinafter called the “Company” which term includes any successors under the Indenture hereinafter referred to), for value received, hereby promises to pay to
                    , or registered assigns, the principal sum of
                     Dollars, on February 15, 2014. 
  

Interest Payment Dates: February 15 and August 15 commencing August 15, 2004. 
  
 Record Dates: February 1 and August 1. 
  
 Reference is made to the further provisions of this Note on the reverse side, which will, for all purposes, have the same
effect as if set forth at this place. 

	1	Series A should be replaced with Series B in the Exchange Notes. 

  

 A-1 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 
  

			
	NECTAR MERGER CORPORATION
	 a Delaware corporation

		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

  
 TRUSTEE’S
CERTIFICATE OF AUTHENTICATION 
  
 This is one of the Notes
described in the within-mentioned Indenture. 
  
 U.S. BANK NATIONAL
ASSOCIATION 
  

			
	 By:
	 	  

	 	 	 Authorized Signatory

  
 Dated: February 6, 2004

  

 (Back of Note) 
  
 7.75% [Series A] [Series B]2 Senior Subordinated Notes due 2014 
  
 [THIS GLOBAL NOTE IS HELD
BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH
NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.6 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.6(a) OF THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR
CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.]3 
  
 [UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY
TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER
NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]4 
  
 [THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A
TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE “SECURITIES ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. 
  
 THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS NOTE MAY BE
OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, 

	2	Series A should be replaced with Series B in the Exchange Notes. 

	3	To be included only on Global Notes deposited with DTC as Depositary. 

	4	To be included only on Global Notes deposited with DTC as Depositary. 

  

 A-3 

 ONLY (I) IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (IV) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (IV) IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.]5 
  
 [THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION ORIGINALLY EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE TRANSFERRED
IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY U.S. PERSON EXCEPT PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS. TERMS USED ABOVE HAVE THE
MEANINGS GIVEN TO THEM IN REGULATION S UNDER THE SECURITIES ACT.]6 
  
 Capitalized terms used herein shall have the meanings assigned to them in the
Indenture referred to below unless otherwise indicated. 
  
 1.
Interest. Nectar Merger Corporation, a Delaware corporation (the “Company”), promises to pay interest on the principal amount of this Note at 7.75% per annum from the Issue Date until maturity and shall pay the Liquidated Damages,
if any, payable pursuant to Section 5 of the Registration Rights Agreement referred to below. The Company will pay interest and Liquidated Damages, if any, semi-annually on February 15 and August 15 of each year, or if any such day is not a Business
Day, on the next succeeding Business Day (each an “Interest Payment Date”). The first Interest Payment Date shall be August 15, 2004. Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from the Issue Date; provided that if there is no existing Default in the payment of interest, and if this Note is authenticated between a Record Date (defined below) referred to on the face hereof and the next
succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment Date. The Company shall pay interest (including Accrued Bankruptcy Interest in any proceeding under any Bankruptcy Law) on overdue principal and
premium, if any, from time to time on demand at the rate then in effect; it shall pay interest (including Accrued Bankruptcy Interest in any proceeding under any Bankruptcy Law) on overdue installments of interest and Liquidated Damages, if any,
(without regard to any applicable grace periods) from time to time on demand at the same rate to the extent lawful. Interest will be computed on the basis of a 360-day year of twelve 30-day months. 
  
 2. Method of Payment. The Company will pay interest on the Notes
(except defaulted interest) and Liquidated Damages, if any, to the Persons who are registered Holders of 

	5	To be included only on Transfer Restricted Notes. 

	6	To be included only on Reg S Temporary Global Notes. 

  

 A-4 

 Notes at the close of business on the February 1 or August 1 next preceding the Interest Payment Date (each a
“Record Date”), even if such Notes are cancelled after such Record Date and on or before such Interest Payment Date, except as provided in Section 2.12 of the Indenture (as defined below) with respect to defaulted interest. The Notes will
be payable as to principal, interest, premium, if any, and Liquidated Damages, if any, at the office or agency of the Company maintained within the City and State of New York for such purpose, or, at the option of the Company, payment of interest
and Liquidated Damages, if any, may be made by check mailed to the Holders at their addresses set forth in the register of Holders, and provided, that payment by wire transfer of immediately available funds to an account within the United
States will be required with respect to principal of and interest, premium, if any, and Liquidated Damages, if any, on all Global Notes. Such payment shall be in such coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts. 
  
 3.
Paying Agent and Registrar. Initially, U.S. Bank National Association, the Trustee under the Indenture, will act as Paying Agent and Registrar. The Company may change any Paying Agent or Registrar without notice to any Holder. The Company or
any of its Subsidiaries may act in any such capacity. 
  
 4.
Indenture. The Company issued the Notes under an Indenture, dated as of the Issue Date (“Indenture”), by and among the Company, the Guarantors party thereto and the Trustee. The terms of the Notes include those stated in the
Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb). The Notes are subject to all such terms, and Holders are referred to the Indenture and such Act for
a statement of such terms. 
  
 5. Optional Redemption.

  
 (a) Except as set forth in clause (b), the Company shall not
have the option to redeem the Notes pursuant to this Section 5 prior to February 15, 2009. The Notes will be redeemable for cash at the option of the Company, in whole or in part, at any time on or after February 15, 2009, upon not less than 30 days
nor more than 60 days prior notice mailed by first class mail to each Holder at its last registered address, at the following redemption prices (expressed as percentages of the principal amount) if redeemed during the 12-month period commencing
February 15 of the years indicated below, in each case (subject to the right of Holders of record on a Record Date to receive the corresponding interest due (and the corresponding Liquidated Damages, if any) on the corresponding Interest Payment
Date that is on or prior to such redemption date) together with accrued and unpaid interest and Liquidated Damages, if any, thereon to the redemption date: 
  

				
	 Year

	  	Percentage

	 
	 2009
	  	103.875	%
	 2010
	  	102.583	%
	 2011
	  	101.292	%
	 and thereafter
	  	100.000	%

  
 (b) Notwithstanding
the provisions of clause (a) of this Section 5, at any time or from time to time on or prior to February 15, 2007 upon one or more Qualified Equity Offerings, up to 35% of the aggregate principal amount of the Notes issued pursuant to the Indenture
(only as necessary to avoid any duplication, excluding any replacement Notes) may be 
  

 A-5 

 redeemed at the Company’s option within 90 days of the closing of such Qualified Equity Offering, on not less than
30 days, but not more than 60 days, notice to each Holder of the Notes to be redeemed, with cash received by the Company from the Net Cash Proceeds of such Qualified Equity Offering, at a redemption price equal to 107.75% of principal, together with
accrued and unpaid interest and Liquidated Damages, if any, thereon to the Redemption Date; provided, however, that immediately following such redemption not less than 65% of the aggregate principal amount of the Notes originally issued pursuant to
the Indenture on the Issue Date remain outstanding (only as necessary to avoid any duplication, excluding any replacement Notes). 
  
 (c) At any time on or prior to February 15, 2008, the Notes may be redeemed as a whole at the Company’s option upon the occurrence of a Change of
Control, upon not less than 30 nor more than 60 days’ prior notice but in no event more than 90 days after the occurrence of such Change of Control, mailed by first-class mail to each Holder’s registered address, at a redemption price
equal to 100% of the principal amount of the Notes to be redeemed plus the Applicable Premium as of, and accrued and unpaid interest, including Liquidated Damages, if any, to the date of the redemption (the “Change of Control Redemption
Date”), except that installments of interest which are due and payable on dates falling on or prior to the applicable redemption date will be payable to the persons who were the Holders of record at the close of business on the relevant record
dates. 
  
 (d) Notice of redemption will be mailed by first class
mail at least 30 days but not more than 60 days before the redemption date to each Holder whose Notes are to be redeemed at its registered address. Notes in denominations larger than $1,000 may be redeemed in part but only in integral multiples of
$1,000, unless all of the Notes held by a Holder are to be redeemed. On and after the redemption date interest ceases to accrue on Notes or portions thereof called for redemption unless the Company defaults in such payments due on the redemption
date. 
  
 6. Mandatory Redemption. Upon issuance, the net
proceeds from the issuance of the Notes will be paid in cash directly to the Securities Intermediary. The Securities Intermediary will invest those proceeds in United States Treasury securities and will deposit the Pledged Securities into a
securities account (the “Secured Proceeds Account”). In accordance with the procedures set forth in the Securities Agreement, the Securities Intermediary shall liquidate the assets in the Secured Proceeds Account and deliver the proceeds
thereof (after deducting the customary expenses of the Trustee and the Securities Intermediary) to the Trustee to redeem the Notes as set forth in clauses (a) and (b) below. 
  
 (a) If (i) the Merger has not occurred prior to April 15, 2004 or such later date as is agreed to by the parties to the
Merger Agreement, which in no event shall be later than June 30, 2004, on Acceptable Terms or (ii) the Company has determined that the Merger will not occur by any such date (each, a “Triggering Event”), the Company will be required to
redeem (a “Mandatory Redemption”) all of the outstanding Notes, for a price equal to 101% of their principal amount, plus accrued and unpaid interest thereon through the redemption date (the “Mandatory Redemption Price”). The
Mandatory Redemption must occur no later than the date 30 Business Days after the Triggering Event (the “Mandatory Redemption Date”). 
  
 (b) In the event of a Mandatory Redemption, the Trustee will direct the Securities Intermediary to liquidate assets in the Secured Proceeds Account for
the Company to pay the Mandatory Redemption Price and to deliver the net proceeds to the Trustee. 
  

 A-6 

 (c) Except for a Mandatory Redemption, the Notes will not have the benefit of any sinking fund and the
Company shall not be required to make any mandatory redemption payments with respect to the Notes. 
  
 7. Offers to Purchase. 
  
 (a) Change of Control. Subject to certain exceptions set forth in the Indenture, in the event that a Change of Control has occurred, each Holder of
Notes will have the right, at such Holder’s option, pursuant to an offer (subject only to conditions required by applicable law, if any) by the Company (the “Change of Control Offer”), to require the Company to repurchase all or any
part of such Holder’s Notes (provided, that the principal amount of such Notes must be $1,000 or an integral multiple thereof) on a date (the “Change of Control Purchase Date”) that is no later than 60 calendar days after the
occurrence of such Change of Control, at a cash price equal to 101% of the principal amount thereof (the “Change of Control Purchase Price”), together with accrued and unpaid interest (and Liquidated Damages, if any), to the Change of
Control Purchase Date. 
  
     The Change of
Control Offer shall be made within 30 calendar days following a Change of Control and shall remain open for 20 Business Days following its commencement, or such other period as may be required by applicable law (the “Change of Control Offer
Period”). Upon expiration of the Change of Control Offer Period, the Company shall purchase all Notes properly tendered in response to the Change of Control Offer. 
  
 (b) Asset Sale. The Company shall not and the Guarantors shall not, and neither the Company nor the Guarantors shall
permit any of the Company’s Subsidiaries to, in one or a series of related transactions, convey, sell, transfer, assign or otherwise dispose of, directly or indirectly, any of their property, business or assets, including by merger or
consolidation (in the case of one of the Company’s Subsidiaries), and including any sale or other transfer or issuance of any Equity Interests of any of the Company’s Subsidiaries, whether by the Company or one of the Company’s
Subsidiaries or through the issuance, sale or transfer of Equity Interests by one of the Company’s Subsidiaries and including any sale and leaseback transaction, other than in any such case to the Company or another Subsidiary (any of the
foregoing, an “Asset Sale”), unless: 
  
     (1) at least 75% of the total consideration for such Asset Sale or series of related Asset Sales consists of cash, Cash Equivalents, Related Business Assets or a combination thereof; 
  
     (2) with respect to any Asset Sale or related series
of Asset Sales involving a conveyance, sale, transfer, assignment or other disposition of securities, property or assets with an aggregate Fair Market Value in excess of $2,000,000, senior management determines in good faith that the Company shall
receive or such Subsidiary shall receive, as applicable, Fair Market Value for such Asset Sale; and 
  
     (3) with respect to any Asset Sale or related series of Asset Sales involving a conveyance, sale, transfer, assignment or other
disposition of securities, property or assets with an aggregate Fair Market Value in excess of $5,000,000, the Company’s Board of Directors determines in good faith that the Company receive or such Subsidiary receives, as applicable, Fair
Market Value for such Asset Sale. 
  

 A-7 

     For purposes of (1) above of this Section 7, the following shall be deemed cash
consideration: (a) Senior Indebtedness or balance sheet liabilities (other than contingent liabilities) assumed by a transferee in connection with such Asset Sale; provided, that the Company is and the Company’s Subsidiaries are fully released
from obligations in connection therewith; and (b) property that within 90 days of such Asset Sale is converted into cash or Cash Equivalents; provided that such cash and Cash Equivalents shall be treated as Net Cash Proceeds attributable to
the original Asset Sale for which such property was received. 
  
     Within 365 days following such Asset Sale, the Net Cash Proceeds therefrom (the “Asset Sale Amount”) may be: 
  
 (a) invested in Related Business Assets, used to make Restricted Investments that are not prohibited by Section 4.9 of the Indenture, or used to make
Permitted Investments other than those permitted by clauses (a), (b), (c), (f) and (g) of the definition of Permitted Investments; 
  
 (b) used to retire Senior Indebtedness or Indebtedness of the Company’s Foreign Subsidiaries and, in the case of Indebtedness that was incurred
pursuant to paragraph (c) of Section 4.7 of the Indenture, to permanently reduce the amount of such Indebtedness that is permitted to be incurred pursuant to paragraph (c) of Section 4.7 of the Indenture, provided, that in the case of a
revolver or similar arrangement that makes credit available, such commitment is so permanently reduced by such amount; 
  
 (c) applied to the optional redemption of the Notes in accordance with the terms of the Indenture and to the optional redemption of other Indebtedness
pari passu with the Notes with similar provisions requiring the Company to repurchase such Indebtedness with the proceeds from such Asset Sale, pro rata in proportion to the respective principal amounts (or accreted values in the case of
Indebtedness issued with an original issue discount) of the Notes and such other Indebtedness then outstanding; or 
  
 (d) applied in any combination of the foregoing. 
  
 8. Denominations, Transfer, Exchange. The Notes are in registered form without coupons in denominations of $1,000 and integral multiples of
$1,000. The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and the
Company may require a Holder to pay any taxes and fees required by law or permitted by the Indenture. The Company need not exchange or register the transfer of any Note or portion of a Note selected for redemption, except for the unredeemed portion
of any Note being redeemed in part. Also, it need not exchange or register the transfer of any Notes for a period of 15 days before a selection of Notes to be redeemed or during the period between a Record Date and the corresponding Interest Payment
Date. 
  
 9. Persons Deemed Owners. The registered Holder
of a Note may be treated as its owner for all purposes. 
  
 10.
Amendment, Supplement and Waiver. Subject to certain exceptions, the Indenture, the Notes or the Guarantees may be amended or supplemented with the consent of the Holders of at least a majority in principal amount of the then outstanding
Notes, and any existing Default or compliance with any provision of the Indenture, the Notes or the Guarantees may be waived with the consent of the Holders of a majority in principal amount of the then outstanding 
  

 A-8 

 Notes. Without the consent of any Holder of a Note, the Indenture, the Notes or the Guarantees may be amended or
supplemented to cure any ambiguity, defect or inconsistency, to provide for uncertificated Notes in addition to or in place of certificated Notes, to provide for the assumption of the Company’s obligations to Holders of the Notes in case of a
merger or consolidation, to provide for additional Guarantees as set forth in the Indenture or for the release or assumption of Guarantees in compliance with the Indenture, to make any change that would provide any additional rights or benefits to
the Holders of the Notes (including the addition of any Guarantor) or that does not adversely affect the rights under the Indenture of any such Holder, to comply with the provisions of the Depositary, Euroclear or Clearstream or the Trustee with
respect to the provisions of the Indenture or the Notes relating to transfers and exchanges of Notes or beneficial interests therein, to comply with the requirements of the Commission in order to effect or maintain the qualification of the Indenture
under the TIA, or to provide for the issuance of Additional Notes in accordance with the limitations set forth in the Indenture as of the date thereof. 
  
 11. Defaults and Remedies. The Indenture provides that each of the following constitutes an Event of Default: 
  
 (a) the Company’s failure to pay any installment of interest (or
Liquidated Damages, if any) on the Notes as and when the same becomes due and payable and the continuance of any such failure for 30 days; 
  
 (b) the Company’s failure to pay all or any part of the principal, or premium, if any, on the Notes when and as the same becomes due and payable at
maturity, redemption, by acceleration or otherwise, including, without limitation, payment of the Change of Control Purchase Price or the Asset Sale Offer Price, on Notes validly tendered and not properly withdrawn pursuant to a Change of Control
Offer or Asset Sale Offer, as applicable; 
  
 (c) the
Company’s failure or the failure by any of the Company’s Subsidiaries to observe or perform any other covenant or agreement contained in the Notes or the Indenture and, except for the provisions under Section 3.8, Section 4.13, and Section
5.1 of the Indenture, the continuance of such failure for a period of 30 days after written notice is given to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in aggregate principal amount of the Notes
outstanding; 
  
 (d) a default in the Company’s Indebtedness
or the Indebtedness any of the Company’s Subsidiaries with an aggregate amount outstanding in excess of $15,000,000 (a) resulting from the failure to pay principal at maturity or (b) as a result of which the maturity of such Indebtedness has
been accelerated prior to its stated maturity; 
  
 (e) final
unsatisfied judgments not covered by insurance aggregating in excess of $15,000,000, at any one time rendered against the Company or any of the Company’s Subsidiaries and not stayed, bonded or discharged within 60 days; 
  
 (f) any Guarantee of a Guarantor that is a Significant Subsidiary ceases to
be in full force and effect or becomes unenforceable or invalid or is declared null and void (other than in accordance with the terms of the Guarantee and the Indenture) or any Guarantor denies or disaffirms its Obligations under its Guarantee;

  
 (g) a court having jurisdiction in the premises enters a
decree or order for (A) relief in respect of the Company or any Significant Subsidiary in an involuntary case under 
  

 A-9 

 any applicable Bankruptcy Law now or hereafter in effect, (B) appointment of a receiver, liquidator, assignee, Custodian,
trustee, sequestrator or similar official of the Company or any Significant Subsidiary or for all or substantially all of the property and assets of the Company or any Significant Subsidiary or (C) the winding up or liquidation of the affairs of the
Company or any Significant Subsidiary and, in each case, such decree or order shall remain unstayed and in effect for a period of 60 consecutive days; and 
  
 (h) the Company or any Significant Subsidiary (A) commences a voluntary case under any applicable Bankruptcy Law now or hereafter in effect, or consents
to the entry of an order for relief in an involuntary case under any such law, (B) consents to the appointment of or taking possession by a receiver, liquidator, assignee, Custodian, trustee, sequestrator or similar official of the Company or any
Significant Subsidiary or for all or substantially all of the property and assets of the Company or any Significant Subsidiary or (C) effects any general assignment for the benefit of creditors. 
  
 12. Trustee Dealings with Company. The Trustee, in its individual or
any other capacity, may make loans to, accept deposits from, and perform services for the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not the Trustee. 
  
 13. No Recourse Against Others. No past, present or future director,
officer, employee, incorporator or stockholder (direct or indirect) of the Company or the Guarantors (or any such successor entity), as such, shall have any liability for any Obligations of the Company or the Guarantors under the Notes, the
Guarantees or the Indenture or for any claim based on, in respect of, or by reason of, such Obligations or their creation, except in their capacity as an obligor or Guarantor of the Notes in accordance with the Indenture. Each Holder by accepting a
Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes. 
  
 14. Authentication. This Note shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent. 

 
 15. Abbreviations. Customary abbreviations may be used in the name
of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors
Act). 
  
 16. Additional Rights of Holders of Transfer
Restricted Notes.7 In addition to the rights provided to Holders of Notes under the Indenture, Holders of
Transfer Restricted Notes shall have all the rights set forth in the Registration Rights Agreement dated as of the date of the Indenture, among the Company, the Guarantors and the Initial Purchaser (the “Registration Rights Agreement”).

  
 17. CUSIP Numbers. Pursuant to a recommendation
promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders. No representation
is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon, and any such redemption shall not be affected
by any defect in or omission of such numbers. 

	7	To be included only on Transfer Restricted Notes. 

  

 A-10 

 18. Subordination. The Notes and the Guarantees are subordinated in right of payment to the extent
and in the manner provided in Section 10.7 and Article XI of the Indenture, to the prior payment in full in cash of all Senior Indebtedness and the termination or cash collateralization of all letters of credit issued under the Credit Agreement. The
Company and the Guarantors agree, and each Holder by accepting a Note consents and agrees, to the subordination provided in the Indenture and authorizes the Trustee to give it effect. 
  
 When a successor assumes all the obligations of its predecessor under the Notes and the Indenture, the predecessor may be
released from those obligations. 
  
 19. Governing Law. THE
INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING, WITHOUT LIMITATION, SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND NEW YORK CIVIL LAWS AND RULES
327(b). 
  
 20. Conflicts Between this Note and the
Indenture. In the event of any conflicts between the terms of this Note and the terms of the Indenture, the terms of the Indenture shall govern. 
  
 The Company will furnish to any Holder upon written request and without charge a copy of the Indenture [and/or the Registration Rights
Agreement]8. Requests may be made to: 
  
 Nectar Merger Corporation 
 c/o Leonard Green & Partners, L.P. 
 1111 Santa Monica Boulevard, Suite 2000 
 Los Angeles, CA 90025 
  
 with a copy to: 
  
 FTD, Inc. 
 3113 Woodcreek Drive 
 Downers Grove, IL 60515 
 Attention: General Counsel 

	8	To be included only on Transfer Restricted Notes. 

  

 A-11 

 Assignment Form 
  
 To assign this Note, fill in the form below: (I) or (We) assign and transfer this Note to 
  

 (Insert assignee’s soc.
sec. or tax I.D. no.) 
  

  

  

  

 (Print or type assignee’s name, address and zip code) 
  

			
	 and irrevocably appoint

  
 to transfer this Note on the books of
the Company. The agent may substitute another to act for him. 
  
  

  
 Date:                               
  
 Your Signature:
                                        
             
  
 (Sign exactly as your name appears on the face of this Note) 
  
 Signature Guarantee* 
  
  

	*	NOTICE: The Signature must be guaranteed by an Institution which is a member of one of the following recognized signature Guarantee Programs: (i) The Securities Transfer Agent
Medallion Program (STAMP); (ii) The New York Stock Exchange Medallion Program (MNSP); (iii) The Stock Exchange Medallion Program (SEMP); or (iv) in such other guarantee program acceptable to the Trustee. 

  

 A-12 

 Option of Holder to Elect Purchase 
  
 If you want to elect to have this Note purchased by the Company pursuant to Section 4.12 or Section 4.13 of the Indenture,
check the box below: 
  
  ̈  Section
4.12                         ̈  Section 4.13 
  
 If you want to elect to have only part of the Note purchased by the Company pursuant to Section 4.12 or Section 4.13 of the
Indenture, state the amount you elect to have purchased (in denominations of $1,000 only, except if you have elected to have all of your Notes purchased): 
 $                     
  

			
	 Date:
	  	Your
Signature:                                      
      

  
 (Sign exactly as your
name appears on the Note) 
  
 Social Security or Tax Identification
No.:                     
  
 Signature Guarantee* 
  
  

	*	NOTICE: The Signature must be guaranteed by an Institution which is a member of one of the following recognized signature Guarantee Programs: (i) The Securities Transfer Agent
Medallion Program (STAMP); (ii) The New York Stock Exchange Medallion Program (MNSP); (iii) The Stock Exchange Medallion Program (SEMP); or (iv) in such other guarantee program acceptable to the Trustee. 

  

 A-13 

 SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE9 
  
 The following exchanges of an interest in this Global Note for an interest in another Global Notes or for a Definitive Note, or exchanges of an interest
in another Global Note or Definitive Note for an interest in this Global Note, have been made: 
  

									
	 Date of Exchange

	  	 Amount of
 Decrease in
 Principal Amount of
 this Global Note

	  	 Amount of
 Increase in
 Principal Amount of
 this Global Note

	  	 Principal Amount of
 this Global Note
Following Such Decrease
(or Increase)

	  	 Signature of
Authorized
 Officer of
 Trustee or Note
 Custodian

	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 

	9	This should be included only if the Note is issued in global form. 

  

 A-14 

 GUARANTEE 
  

The Guarantors listed below (hereinafter referred to as the “Guarantors,” which term includes any successors or assigns under the Indenture,
dated the date hereof, among the Guarantors, the Company (defined below) and U.S. Bank National Association, as trustee (the “Indenture”) and any additional Guarantors), have irrevocably and unconditionally guaranteed on a senior
subordinated basis the Guarantee Obligations (as defined in Section 10.1 of the Indenture), which include (i) the due and punctual payment of the principal of, premium, if any, and interest and Liquidated Damages, if any, on the 7.75% Senior
Subordinated Notes due 2014 (the “Notes”) of Nectar Merger Corporation, a Delaware corporation (the “Company”), whether at maturity, by acceleration, call for redemption, upon a Change of Control Offer, upon an Asset Sale Offer
or otherwise, the due and punctual payment of interest on the overdue principal and premium, if any, and (to the extent permitted by law) interest on any interest on the Notes, and the due and punctual performance of all other obligations of the
Company, to the Holders or the Trustee all in accordance with the terms set forth in Article X of the Indenture, and (ii) in case of any extension of time of payment or renewal of any Notes or any such other obligations, that the same will be
promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at Stated Maturity, by acceleration, call for redemption, upon a Change of Control Offer, upon an Asset Sale Offer, or otherwise.

  
 The obligations of each Guarantor to the Holders and to the
Trustee pursuant to this Guarantee and the Indenture are expressly set forth in Article X of the Indenture and reference is hereby made to such Indenture for the precise terms of this Guarantee. 
  
 The obligations of each Guarantor to the Holders and to the Trustee pursuant
to this Guarantee and the Indenture are subordinated to Senior Indebtedness of the Guarantors as set forth in Section 10.7 and Article XI of the Indenture and reference is hereby made to such Section and Article for the precise terms of such
subordination. 
  
 No past, present or future director, officer,
employee, incorporator or stockholder (direct or indirect) of the Guarantors (or any such successor entity), as such, shall have any liability for any obligations of the Guarantors under this Guarantee or the Indenture or for any claim based on, in
respect of, or by reason of, such obligations or their creation, except in their capacity as an obligor or Guarantor of the Notes in accordance with the Indenture. 
  
 This is a continuing Guarantee and shall remain in full force and effect and shall be binding upon each Guarantor and its
successors and assigns until full and final payment of all of the Company’s obligations under the Notes and the Indenture or until released or legally defeased in accordance with the Indenture and shall inure to the benefit of the successors
and assigns of the Trustee and the Holders, and, in the event of any transfer or assignment of rights by any Holder or the Trustee, the rights and privileges herein conferred upon that party shall automatically extend to and be vested in such
transferee or assignee, all subject to the terms and conditions hereof. This is a Guarantee of payment and performance and not of collectibility. 
  
 This Guarantee shall not be valid or obligatory for any purpose until the certificate of authentication on the Note upon which this Guarantee is noted
shall have been executed by the Trustee under the Indenture by the manual signature of one of its authorized officers. 
  
 The obligations of each Guarantor under this Guarantee shall be limited to the extent necessary to insure that it does not constitute a fraudulent
conveyance under applicable law. 
  

 A-15 

 THE TERMS OF ARTICLES X AND XI OF THE INDENTURE ARE INCORPORATED HEREIN BY REFERENCE. 
  
 Capitalized terms used herein have the same meanings given in the Indenture
unless otherwise indicated. 
  

 A-16 

 IN WITNESS WHEREOF, each of the Guarantors has caused this instrument to be duly executed. 
  
 Dated:
                     

			
	 [NAME OF GUARANTOR]

		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

	
	 [NAME OF GUARANTOR]

		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

	
	 [NAME OF GUARANTOR]

		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

 EXHIBIT B 
 FORM OF CERTIFICATE OF TRANSFER 
  
 [Nectar
Merger Corporation 
 c/o Leonard Green & Partners, L.P. 
 1111 Santa Monica Boulevard, Suite 2000 
 Los Angeles, CA 90025] 
  
 [FTD, Inc. 
 3113 Woodcreek Drive 
 Downers Grove, IL 60515 
 Attention: General Counsel] 
  
 U.S. Bank National Association 
 180 East Fifth Street 
 St. Paul, MN 55101 
 Attention: Corporate Trust Department 
  
 Re: 7.75 % Senior Subordinated Notes due 2014 
  
 Dear Sirs: 

 
 Reference is hereby made to the Indenture, dated as of February 6, 2004
(the “Indenture”), among Nectar Merger Corporation, as issuer (the “Company”), the Guarantors party thereto and U.S. Bank National Association, as trustee. Capitalized terms used but not defined herein shall have the meanings
given to them in the Indenture.                     , (the “Transferor”) owns and proposes to transfer the Note[s] or interest in
such Note[s] specified in Annex A hereto, in the principal amount of $                     in such Note[s] or interests (the
“Transfer”), to                      (the “Transferee”), as further specified in Annex A hereto. In connection with the
Transfer, the Transferor hereby certifies that: 
  
 [CHECK ALL THAT APPLY]

  
 2.  ̈ Check if Transferee will take delivery of a beneficial interest in the 144A Global Note or a Definitive Note Pursuant to Rule 144A. The Transfer is being effected pursuant to and in accordance with Rule 144A under the United States Securities Act of 1933, as amended (the “Securities Act”), and, accordingly, the
Transferor hereby further certifies that the beneficial interest or Definitive Note is being transferred to a Person that the Transferor reasonably believed and believes is purchasing the beneficial interest or Definitive Note for its own account,
or for one or more accounts with respect to which such Person exercises sole investment discretion, and such Person and each such account is a “qualified institutional buyer” within the meaning of Rule 144A in a transaction meeting the
requirements of Rule 144A and such Transfer is in compliance with any applicable blue sky securities laws of any State of the United States. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the 144A Global Note and/or the Definitive Note and in the Indenture and the Securities Act.

 3.  ̈ Check if Transferee will take
delivery of a beneficial interest in the Regulation S Global Note or a Definitive Note pursuant to Regulation S. The Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and, accordingly, the Transferor hereby further certifies that (i) the Transfer is not being made to a person in the
United States and (x) at the time the buy order was originated, the Transferee was outside the United States or such Transferor and any Person acting on its behalf reasonably believed and believes that the Transferee was outside the United States or
(y) the transaction was executed in, on or through the facilities of a designated offshore securities market and neither such Transferor nor any Person acting on its behalf knows that the transaction was prearranged with a buyer in the United
States, (ii) no directed selling efforts have been made in contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S under the Securities Act, (iii) the transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act and (iv) if the proposed transfer is being made prior to the expiration of the Distribution Compliance Period, the transfer is not being made to a U.S. Person or for the account or benefit of a U.S. Person (other
than an Initial Purchaser) and the interest transferred will be held immediately thereafter through Euroclear or Clearstream. Upon consummation of the proposed transfer in accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Note will be subject to the restrictions on Transfer enumerated in the Private Placement Legend printed on the Regulation S Global Note and/or the Definitive Note and in the Indenture and the Securities Act. 

 
 4.  ̈ Check and complete if Transferee will take delivery of a beneficial interest in a Definitive Note
pursuant to any provision of the Securities Act other than Rule 144A or Regulation S. The Transfer is being effected in compliance with the transfer restrictions applicable to beneficial interests in Restricted Global Notes and Restricted
Definitive Notes and pursuant to and in accordance with the Securities Act and any applicable blue sky securities laws of any State of the United States, and accordingly the Transferor hereby further certifies that (check one): 
  
 (a)  ̈ Such Transfer is being effected pursuant to and
in accordance with Rule 144 under the Securities Act; or 
  
 (b)
 ̈ Such
Transfer is being effected to the Company or a subsidiary thereof; or 
  
 (c)  ̈ Such Transfer is being effected pursuant to an effective registration statement under the Securities Act and in compliance with the prospectus delivery requirements of the Securities Act; or 
  
 (d)  ̈ such Transfer is being effected to an Institutional Accredited Investor and
pursuant to an exemption from the registration requirements of the Securities Act other than Rule 144A, Rule 144 or Rule 904, and the Transferor hereby further certifies that it has not engaged in any general solicitation within the meaning of
Regulation D under the Securities Act and the Transfer complies with the transfer restrictions applicable to beneficial interests in a Restricted Global Note or Restricted Definitive Notes and the requirements of the exemption claimed, which
certification is supported by (1) a certificate executed by the Transferee in a form of Exhibit D to the Indenture and (2) if such Transfer is in respect of a principal amount of Notes at the time of transfer of less than $250,000, an opinion of
counsel provided by the Transferor or the Transferee (a copy of which the Transferor has attached to this certification and provided to the Company, which has confirmed its acceptability), to the effect that such Transfer is in 
  

 B-2 

 compliance with the Securities Act. Upon consummation of the proposed transfer in accordance with the terms of the
Indenture, the Definitive Note will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Definitive Notes and in the Indenture and the Securities Act. 
  
 5.  ̈ Check if Transferee will take delivery of a beneficial interest in an
Unrestricted Global Note or of an Unrestricted Definitive Note. 
  
 (a)  ̈ Check if Transfer is Pursuant to Rule 144. (i) The Transfer is being effected pursuant to and in accordance with Rule 144 under the Securities Act and in compliance with the transfer restrictions contained in the
Indenture and any applicable blue sky securities laws of any State of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the
Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will no longer be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Restricted Global Notes, on Restricted Definitive Notes and in the Indenture and the Securities Act. 
  
 (b)  ̈ Check if Transfer is Pursuant to Regulation S. (i) The Transfer is being effected pursuant to and in accordance with Rule 903
or Rule 904 under the Securities Act and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any State of the United States and (ii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or
Definitive Note will no longer be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on Restricted Definitive Notes and in the Indenture and the Securities Act. 
  
 (c)  ̈ Check if Transfer is Pursuant to Other Exemption. (i) The
Transfer is being effected pursuant to and in compliance with an exemption from the registration requirements of the Securities Act other than Rule 144, Rule 903 or Rule 904 and in compliance with the transfer restrictions contained in the Indenture
and any applicable blue sky securities laws of any State of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act.
Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will not be subject to the restrictions on transfer enumerated in the Private Placement Legend printed
on the Restricted Global Notes or Restricted Definitive Notes and in the Indenture. 
  

 B-3 

 This certificate and the statements contained herein are made for your benefit and the benefit of the Company.

  

			
	  

	  	 Dated:  

		
	 [Insert Name of Transferor]
	  	 

  

			
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

  

 B-4 

 ANNEX A TO CERTIFICATE OF TRANSFER 
  

	1.	The Transferor owns and proposes to transfer the following: 

  
 [CHECK ONE OF (a) OR (b)] 
  

	 	(a)	 ̈ a beneficial interest in the: 

  

	 	(i)	 ̈ 144A Global Note (CUSIP 30265QAA7), or 

  

	 	(ii)	 ̈ Regulation S Global Note (CUSIP U34880AA9), or 

  

	 	(b)	 ̈ a Restricted Definitive Note. 

  

	2.	After the Transfer the Transferee will hold: 

  
 [CHECK ONE] 
  

	 	(a)	 ̈ a beneficial interest in the: 

  

	 	(i)	 ̈ 144A Global Note (CUSIP 30265QAA7), or 

	 	(ii)	 ̈ Regulation S Global Note (CUSIP U34880AA9), or 

	 	(iii)	 ̈ Unrestricted Global Note (CUSIP 30265QAB5); or 

  

	 	(b)	 ̈ a Restricted Definitive Note; or 

  

	 	(c)	 ̈ an Unrestricted Definitive Note, 

  
 in accordance with the terms of the Indenture. 
  
  

 B-5 

 EXHIBIT C 
 FORM OF CERTIFICATE OF EXCHANGE 
  
 [Nectar
Merger Corporation 
 c/o Leonard Green & Partners, L.P. 
 1111 Santa Monica Boulevard, Suite 2000 
 Los Angeles, CA 90025] 
  
 [FTD, Inc. 
 3113 Woodcreek Drive 
 Downers Grove, IL 60515 
 Attention: General Counsel] 
  
 U.S. Bank National Association 
 180 East Fifth Street 
 St. Paul, MN 55101 
 Attention: Corporate Trust Department 
  
 Re: 7.75 % Senior Subordinated Notes due 2014 
  
 Dear Sirs: 

 
 Reference is hereby made to the Indenture, dated as of February
[    ], 2004 (the “Indenture”), between Nectar Merger Corporation, as issuer (the “Company”), the Guarantors party thereto and U.S. National Association, as trustee. Capitalized terms used but not defined
herein shall have the meanings given to them in the Indenture. 
  
                     , (the “Owner”) owns and proposes to exchange the Note[s] or interest in such Note[s] specified herein,
in the principal amount of $                     in such Note[s] or interests (the “Exchange”). In connection with the Exchange, the
Owner hereby certifies that: 
  
 1. Exchange of Restricted
Definitive Notes or Beneficial Interests in a Restricted Global Note for Unrestricted Definitive Notes or Beneficial Interests in an Unrestricted Global Note. 
  
 (a)  ̈ Check if Exchange is from beneficial interest in a Restricted Global Note to beneficial interest in an
Unrestricted Global Note. In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for a beneficial interest in an Unrestricted Global Note in an equal principal amount, the Owner hereby certifies (i)
the beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Global Notes and pursuant to and in accordance with the
United States Securities Act of 1933, as amended (the “Securities Act”), (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities
Act and (iv) the beneficial interest in an Unrestricted Global Note is being acquired in compliance with any applicable blue sky securities laws of any State of the United States. 
  

 C-1 

 (b)  ̈ Check if Exchange is from beneficial interest in a Restricted Global Note to Unrestricted
Definitive Note. In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for an Unrestricted Definitive Note, the Owner hereby certifies (i) the Definitive Note is being acquired for the
Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Restricted Global Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions
on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the Definitive Note is being acquired in compliance with any applicable blue sky securities
laws of any State of the United States. 
  
 (c)  ̈ Check if Exchange is from Restricted Definitive Note to beneficial interest in an Unrestricted Global Note. In connection with the
Owner’s Exchange of a Restricted Definitive Note for a beneficial interest in an Unrestricted Global Note, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions applicable to Restricted Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the beneficial interest is being acquired in compliance with any applicable blue sky securities laws of any State of the United States.

  
 (d)  ̈ Check if Exchange is from Restricted Definitive Note to Unrestricted Definitive Note. In connection with the Owner’s Exchange of a Restricted Definitive Note for
an Unrestricted Definitive Note, the Owner hereby certifies (i) the Unrestricted Definitive Note is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions
applicable to Restricted Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with
the Securities Act and (iv) the Unrestricted Definitive Note is being acquired in compliance with any applicable blue sky securities laws of any State of the United States. 
  
 2. Exchange of Restricted Definitive Notes or Beneficial Interests in Restricted Global Notes for Restricted Definitive
Notes or Beneficial Interests in Restricted Global Notes 
  
 (a)  ̈ Check if Exchange is from beneficial interest in a Restricted Global Note to Restricted Definitive Note. In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for a
Restricted Definitive Note with an equal principal amount, the Owner hereby certifies that the Restricted Definitive Note is being acquired for the Owner’s own account without transfer. Upon consummation of the proposed Exchange in accordance
with the terms of the Indenture, the Restricted Definitive Note issued will continue to be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Definitive Note and in the Indenture and the
Securities Act. 
  
 (b)  ̈ Check if Exchange is from
Restricted Definitive Note to beneficial interest in a Restricted Global Note. In connection with the Exchange of the Owner’s Restricted Definitive Note for a beneficial interest in the: [CHECK ONE]  ̈ 144A 
  

 C-2 

 Global Note or  ̈ Regulation S Global Note with an equal principal amount, the Owner hereby certifies (i) the beneficial
interest is being acquired for the Owner’s own account without transfer and (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Restricted Global Notes and pursuant to and in accordance with the
Securities Act, and in compliance with any applicable blue sky securities laws of any State of the United States. Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the beneficial interest issued will be
subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the relevant Restricted Global Note and in the Indenture and the Securities Act. 
  

 C-3 

 This certificate and the statements contained herein are made for your benefit and the benefit of the Company.

  

			
	

	 [Insert Name of Owner]

		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

	
	 Dated:                    

  

 C-4 

 EXHIBIT D 
 FORM OF CERTIFICATE FROM ACQUIRING 
 INSTITUTIONAL ACCREDITED INVESTOR 
  
 [Nectar Merger Corporation 
 c/o Leonard Green & Partners, L.P. 
 1111 Santa Monica Boulevard, Suite 2000 
 Los Angeles, CA 90025] 
  
 [FTD, Inc. 
 3113 Woodcreek Drive 
 Downers Grove, IL 60515 
 Attention: General Counsel] 
  
 U.S. Bank National Association 
 180 East Fifth Street 
 St. Paul, MN 55101 
 Attention: Corporate Trust Department 
  
 Re: 7.75 % Senior Subordinated Notes due 2014 
  
 Dear Sirs: 
  
 Reference is hereby made to the Indenture, dated as of February 6, 2004 (the “Indenture”), between Nectar Merger
Corporation, as issuer (the “Company”), the Guarantors party thereto and U.S. National Association, as trustee. Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture. 
  
 In connection with our proposed purchase of
$                     aggregate principal amount of: (a) a beneficial interest in a Global Note, or (b) a Definitive Note, we confirm that:

  
 1. We understand that any subsequent transfer of the Notes or
any interest therein is subject to certain restrictions and conditions set forth in the Indenture and the undersigned agrees to be bound by, and not to resell, pledge or otherwise transfer the Notes or any interest therein except in compliance with,
such restrictions and conditions and the United States Securities Act of 1933, as amended (the “Securities Act”). 
  
 2. We understand that the offer and sale of the Notes have not been registered under the Securities Act, and that the Notes and any interest therein 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 the Notes or any interest therein, we will do so
only (A) to the Company or any Guarantor or any of their respective subsidiaries, (B) in accordance with Rule 144A under the Securities Act to a “qualified institutional buyer” (as defined therein), (C) to an institutional “accredited
investor” (as defined below) that, prior to such transfer, furnishes (or has furnished on its behalf by a U.S. broker-dealer) to you and to the Company a signed letter substantially in the form of this letter and, if the proposed transfer is in
respect of an aggregate principal amount of Notes of less than $250,000, 
  

 D-1 

 an opinion of counsel in form reasonably acceptable to the Company to the effect that such transfer is in compliance with
the Securities Act, (D) outside the United States in accordance with Rule 904 of Regulation S under the Securities Act, (E) pursuant to the provisions of Rule 144 under the Securities Act, (F) in accordance with another exemption from the
registration requirements of the Securities Act (and based upon an opinion of counsel acceptable to the Company) or (G) pursuant to an effective registration statement under the Securities Act, and we further agree to provide to any person
purchasing the Definitive Note from us in a transaction meeting the requirements of clauses (A) through (F) of this paragraph a notice advising such purchaser that resales thereof are restricted as stated herein. 
  
 3. We understand that, on any proposed resale of the Notes or beneficial
interest therein, 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. We further understand that any subsequent transfer by us of the Notes or beneficial interest therein acquired by us must be effected
through one of the Initial Purchasers. 
  
 4. We are an
institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and have such knowledge and experience in financial and business matters as 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 or beneficial interest therein 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. 
  

 D-2 

 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. 
  

			
	  

	  	Dated:             ,        
	 [Insert Name of Accredited Investor]
	  	 

  

	
	 By:                                      
                  

	 Name:

	 Title:

  

 D-3 

 EXHIBIT E 
 FORM OF SUPPLEMENTAL INDENTURE 
 TO BE DELIVERED BY SUBSEQUENT 
 GUARANTORS 
  
 Supplemental Indenture (this “Supplemental Indenture”), dated as of         , among the
Guarantor(s) listed on the signature page attached hereto (each a “Guaranteeing Subsidiary”), a subsidiary of Nectar Merger Corporation (or its permitted successor), a Delaware corporation (the “Company”), the Company and U.S.
National Bank Association, as trustee under the Indenture referred to below (the “Trustee”). 
  
 W I T N E S S E T H 
  
 WHEREAS, the Company has heretofore executed and delivered to the Trustee an indenture (the “Indenture”), dated as of February 6, 2004,
providing for the issuance of 7.75 % Senior Subordinated Notes due 2014 (the “Notes”); 
  
 WHEREAS, the Indenture provides that under certain circumstances each Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental
indenture pursuant to which any newly-acquired or created Guarantor shall unconditionally guarantee on a senior subordinated basis all of the Company’s obligations under the Notes and the Indenture on the terms and conditions set forth herein
(a “Subsidiary Guarantee”); and 
  
 WHEREAS, pursuant to
Section 9.1 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture. 
  
 NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, each
Guaranteeing Subsidiary and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows: 
  
 1. Capitalized Terms. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture. 
  
 2. Agreement to Guarantee. Each Guaranteeing Subsidiary irrevocably
and unconditionally guarantees on a senior subordinated basis the Guarantee Obligations, which include (i) the due and punctual payment of the principal of, premium, if any, and interest and Liquidated Damages, if any, on the Notes, whether at
maturity, by acceleration, call for redemption, upon a Change of Control Offer, upon an Asset Sale Offer or otherwise, the due and punctual payment of interest on the overdue principal and premium, if any, and (to the extent permitted by law)
interest on any interest on the Notes, and payment of expenses, and the due and punctual performance of all other obligations of the Company, to the Holders or the Trustee all in accordance with the terms set forth in Article X and Article XI of the
Indenture, and (ii) in case of any extension of time of payment or renewal of any Notes or any such other obligations, that the same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal,
whether at stated maturity, by acceleration, call for redemption, upon a Change of Control Offer, upon an Asset Sale Offer or otherwise. 
  
 The obligations of each Guaranteeing Subsidiary to the Holders and to the Trustee pursuant to this Subsidiary Guarantee and the Indenture (i) are
expressly set forth in Articles X and XI of the Indenture and reference is hereby made to such Indenture for the precise 
  

 E-1 

 terms of this Subsidiary Guarantee and (ii) are subordinated to the Senior Indebtedness of each Guaranteeing Subsidiary
as set forth in Section 10.7 and Article XI of the Indenture and reference is hereby made to such Section and Article for the precise terms of such subordination. 
  
 No past, present or future director, officer, employee, incorporator or stockholder (direct or indirect) of the Guaranteeing
Subsidiary (or any such successor entity), as such, shall have any liability for any obligations of the Guaranteeing Subsidiary under this Subsidiary Guarantee or the Indenture or for any claim based on, in respect of, or by reason of, such
obligations or their creation, except in their capacity as an obligor or Guarantor of the Notes in accordance with the Indenture. 
  
 This is a continuing Guarantee and shall remain in full force and effect and shall be binding upon each Guaranteeing Subsidiary and its successors and
assigns until full and final payment of all of the Company’s obligations under the Notes and Indenture or until released in accordance with the Indenture and shall inure to the benefit of the successors and assigns of the Trustee and the
Holders, and, in the event of any transfer or assignment of rights by any Holder or the Trustee, the rights and privileges herein conferred upon that party shall automatically extend to and be vested in such transferee or assignee, all subject to
the terms and conditions hereof. This is a Guarantee of payment and performance and not of collectibility. 
  
 The obligations of each Guaranteeing Subsidiary under its Subsidiary Guarantee shall be limited to the extent necessary to insure that it does not
constitute a fraudulent conveyance under applicable law. 
  
 THE
TERMS OF ARTICLES X and XI OF THE INDENTURE ARE INCORPORATED HEREIN BY REFERENCE. 
  
 3. NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE, INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF THE NEW YORK GENERAL
OBLIGATIONS LAW. 
  
 4. Counterparts. The parties may sign
any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. 
  
 5. Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof. 
  

 E-2 

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

			
	THE COMPANY:
	 Nectar Merger Corporation

		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

	
	GUARANTEEING SUBSIDIARY:
	 [NAME]

		
	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

	
	THE TRUSTEE:
	 U.S. Bank National Association

	 By:
	 	  

	 	 	 Name:

	 	 	 Title:

  

 EXHIBIT F 
  

MANAGEMENT AGREEMENT 
  

 G-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]